2024 Q1 Form 10-K Financial Statement

#000007031824000016 Filed on February 16, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $5.368B $5.379B $20.55B
YoY Change 6.91% 7.8% 7.17%
Cost Of Revenue $928.0M $931.0M $3.590B
YoY Change 4.15% 8.26% 9.69%
Gross Profit $4.440B $4.448B $16.96B
YoY Change 7.51% 7.7% 6.65%
Gross Profit Margin 82.71% 82.69% 82.53%
Selling, General & Admin $2.321B $2.315B $9.146B
YoY Change 2.79% 0.39% 3.41%
% of Gross Profit 52.27% 52.05% 53.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $208.0M $216.0M $870.0M
YoY Change -4.15% 1.41% 3.45%
% of Gross Profit 4.68% 4.86% 5.13%
Operating Expenses $3.613B $3.727B $14.53B
YoY Change 3.91% 4.96% 6.2%
Operating Profit $827.0M $721.0M $2.427B
YoY Change 37.15% 24.53% 4.03%
Interest Expense -$159.0M -$154.0M -$673.0M
YoY Change -171.95% 0.0% -175.62%
% of Operating Profit -19.23% -21.36% -27.73%
Other Income/Expense, Net $25.00M $11.00M $19.00M
YoY Change -1350.0% 175.0% 90.0%
Pretax Income $3.084B $519.0M $1.617B
YoY Change 711.58% 61.68% 20.31%
Income Tax $750.0M $63.00M $306.0M
% Of Pretax Income 24.32% 12.14% 18.92%
Net Earnings $2.151B $244.0M $611.0M
YoY Change 626.69% 139.22% -38.96%
Net Earnings / Revenue 40.07% 4.54% 2.97%
Basic Earnings Per Share $21.60 $6.01
Diluted Earnings Per Share $21.38 $2.34 $5.83
COMMON SHARES
Basic Shares Outstanding 100.0M shares 101.6M shares 101.6M shares
Diluted Shares Outstanding 100.6M shares 104.8M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.481B $1.228B $1.228B
YoY Change 223.89% 43.12% 43.12%
Cash & Equivalents $2.481B $1.228B $1.228B
Short-Term Investments
Other Short-Term Assets $1.048B $2.614B $2.614B
YoY Change -37.28% 47.27% 47.27%
Inventory $395.0M $411.0M $411.0M
Prepaid Expenses $375.0M $391.0M
Receivables $3.342B $2.914B $2.914B
Other Receivables $555.0M $0.00 $0.00
Total Short-Term Assets $7.821B $7.167B $7.167B
YoY Change 33.26% 19.83% 19.83%
LONG-TERM ASSETS
Property, Plant & Equipment $5.855B $6.236B $6.236B
YoY Change -7.34% -3.5% -3.5%
Goodwill $10.57B $10.31B
YoY Change 3.02% 1.82%
Intangibles $1.399B $1.368B
YoY Change -2.3% -3.93%
Long-Term Investments $3.244B $3.157B $3.157B
YoY Change 2.17% 97.44% 0.32%
Other Assets $20.00M $77.00M $77.00M
YoY Change 42.86% 305.26% 305.26%
Total Long-Term Assets $21.09B $21.15B $21.15B
YoY Change -0.53% -0.14% -0.14%
TOTAL ASSETS
Total Short-Term Assets $7.821B $7.167B $7.167B
Total Long-Term Assets $21.09B $21.15B $21.15B
Total Assets $28.91B $28.31B $28.31B
YoY Change 6.8% 4.26% 4.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.335B $1.408B $1.408B
YoY Change 12.0% -6.38% -6.38%
Accrued Expenses $1.024B $1.130B $1.130B
YoY Change 20.47% 14.03% 14.03%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $107.0M $120.0M $120.0M
YoY Change -27.7% -17.24% -17.24%
Total Short-Term Liabilities $5.416B $4.760B $4.760B
YoY Change 28.37% 6.34% 6.34%
LONG-TERM LIABILITIES
Long-Term Debt $12.77B $14.88B $14.88B
YoY Change -14.48% -0.35% -0.35%
Other Long-Term Liabilities $2.817B $2.836B $2.836B
YoY Change 61.16% 58.7% -2.91%
Total Long-Term Liabilities $15.59B $17.72B $17.72B
YoY Change 791.82% 891.49% -0.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.416B $4.760B $4.760B
Total Long-Term Liabilities $15.59B $17.72B $17.72B
Total Liabilities $25.45B $26.70B $26.70B
YoY Change 14.34% 18.43% 2.65%
SHAREHOLDERS EQUITY
Retained Earnings $1.959B -$192.0M
YoY Change -396.82% -76.09%
Common Stock $8.000M $8.000M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.453B $1.608B $1.608B
YoY Change
Total Liabilities & Shareholders Equity $28.91B $28.31B $28.31B
YoY Change 6.8% 4.26% 4.26%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $2.151B $244.0M $611.0M
YoY Change 626.69% 139.22% -38.96%
Depreciation, Depletion And Amortization $208.0M $216.0M $870.0M
YoY Change -4.15% 1.41% 3.45%
Cash From Operating Activities $586.0M $824.0M $2.374B
YoY Change 30.51% 95.72% 119.21%
INVESTING ACTIVITIES
Capital Expenditures $240.0M $208.0M $751.0M
YoY Change 2.13% -28.28% -1.44%
Acquisitions $449.0M $224.0M
YoY Change 835.42% -4.27%
Other Investing Activities $3.568B -$125.0M -$218.0M
YoY Change 50871.43% 681.25% -3733.33%
Cash From Investing Activities $3.328B -$333.0M -$969.0M
YoY Change -1263.64% 8.82% 19.93%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$200.0M
YoY Change -180.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.661B -317.0M -1.035B
YoY Change 943.53% -31.83% -41.89%
NET CHANGE
Cash From Operating Activities 586.0M 824.0M 2.374B
Cash From Investing Activities 3.328B -333.0M -969.0M
Cash From Financing Activities -2.661B -317.0M -1.035B
Net Change In Cash 1.253B 174.0M 370.0M
YoY Change -1461.96% -149.71% -124.57%
FREE CASH FLOW
Cash From Operating Activities $586.0M $824.0M $2.374B
Capital Expenditures $240.0M $208.0M $751.0M
Free Cash Flow $346.0M $616.0M $1.623B
YoY Change 61.68% 370.23% 405.61%

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<div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Changes to prior-year presentation—</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">At December 31, 2022, our business was organized into three separate reporting segments: Hospital Operations and other, Ambulatory Care and Conifer. During the three months ended December 31, 2023, we combined our Hospital Operations and other and Conifer segments into a single reporting segment named Hospital Operations and Services (Hospital Operations). This change was made to reflect recent updates to the organizational and management structure of our Conifer and Hospital Operations and other segments. All prior‑period data presented in this report has been adjusted to conform to our new reporting segment structure.</span></div><div style="margin-bottom:6pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of December 31, 2023, our business was organized into two reporting segments:</span></div><div style="margin-bottom:6pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">our Hospital Operations segment, which includes (1) our acute care and specialty hospitals, physician practices, imaging centers, UCCs, ancillary emergency facilities and micro‑hospitals, and (2) the revenue cycle management and value‑based care services we provide to hospitals, health systems, physician practices, employers and other clients through our Conifer Health Solutions, LLC joint venture; and</span></div><div style="margin-bottom:12pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">our Ambulatory Care segment, which is comprised of the ambulatory surgery center and surgical hospital operations of our subsidiary USPI Holding Company, Inc.</span></div><div style="margin-bottom:6pt;margin-top:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In addition, contract liabilities and contract liabilities – long-term are no longer significant enough to present separately. These obligations are now included in other current liabilities and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.</span></div>
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<div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and these accompanying notes. We regularly evaluate the accounting policies and estimates we use. In general, we base the estimates on historical experience and on assumptions that we believe to be reasonable given the particular circumstances in which we operate. Although we believe all adjustments considered necessary for a fair presentation have been included, actual results may vary from those estimates. The financial and statistical information we report to other regulatory agencies may be prepared on a basis other than GAAP or using different assumptions or reporting periods and, therefore, may vary from the amounts presented herein. Although we make every effort to ensure that the information we report to those agencies is accurate, complete and consistent with applicable reporting guidelines, we cannot be responsible for the accuracy of the information they make available to the public.</span></div>
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CY2023 dei Auditor Firm
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