- Net income from continuing operations available to common
shareholders in first quarter 2024 was $2.151 billion, or $21.38
per diluted share, including an after-tax gain of $1.856 billion,
or $18.45 per diluted share, associated with previously announced
hospital divestitures
- Adjusted diluted earnings per share from continuing
operations1 was $3.22 in first quarter 2024
- Consolidated Adjusted EBITDA1 in first quarter 2024 of
$1.024 billion increased 23.1% over first quarter 2023
- First quarter 2024 Ambulatory Care Adjusted EBITDA of $394
million increased 15.9% over first quarter 2023
- FY 2024 Adjusted EBITDA Outlook now expected to be in the
range of $3.5 billion to $3.7 billion, a $215 million
increase
Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced
its results for the quarter ended March 31, 2024.
"We have had an outstanding start to the year highlighted by
strong growth in revenues, admissions, and profitability," said
Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.
"Our operational excellence and focus on continuous improvement
helped enable our momentum as we transform our company through
strategic portfolio decisions, disciplined capital allocation, and
debt reduction."
Tenet’s results for first quarter 2024 versus first quarter 2023
are as follows:
Three Months Ended March
31,
($ in millions, except per share
results)
2024
2023
Net operating revenues
$5,368
$5,021
Net income available to Tenet common
shareholders from continuing operations
$2,151
$143
Net income available to Tenet common
shareholders from continuing operations per diluted share
$21.38
$1.32
Adjusted EBITDA1
$1,024
$832
Adjusted diluted earnings per share from
continuing operations1
$3.22
$1.42
- Net income from continuing operations available to the
Company’s common shareholders in the first quarter 2024 was $2.151
billion, or $21.38 per diluted share, versus $143 million, or $1.32
per diluted share, in first quarter 2023. First quarter 2024
results included a pre-tax gain of $2.5 billion ($1.856 billion
after-tax, or $18.45 per diluted share) primarily associated with
the divestiture of three hospitals in South Carolina and six
hospitals in California.
- Adjusted EBITDA1 in first quarter 2024 was $1.024 billion
compared to $832 million in first quarter 2023, reflecting strong
same-hospital admission growth, favorable payer mix, and improved
contract labor costs, partially offset by higher medical fees.
Additionally, in the first quarter of 2024, the Company recognized
a $88 million favorable pre-tax impact associated with additional
Medicaid supplemental revenues in Michigan, of which approximately
half related to the last three months of 2023. First quarter 2023
results included income from the receipt of $27 million
cybersecurity insurance proceeds.
Balance Sheet and Cash Flows
- Cash flows provided by operating activities for the three
months ended March 31, 2024 were $586 million versus $449 million
for the three months ended March 31, 2023.
- The Company produced free cash flow1 of $346 million for the
three months ended March 31, 2024 versus $214 million for the three
months ended March 31, 2023.
- In the three months ended March 31, 2024, the Company
repurchased 2,811,234 shares of common stock for $278 million.
- The Company’s ratio of net debt to Adjusted EBITDA1 was 2.79x
at March 31, 2024 compared to 3.89x at December 31, 2023.
Recent Transactions
- In first quarter 2024, the Company retired $2.1 billion
aggregate principal amount of its 4.875% senior secured first lien
notes due in 2026. Tenet expects this transaction will reduce its
future annual cash interest payments by $102 million.
- On April 1, 2024, the Company announced the completion of the
sale of four hospitals and related operations in Orange County and
Los Angeles County, California to UCI Health and the completion of
the sale of two hospitals and related operations in San Luis Obispo
County, California to Adventist Health in the first quarter of
2024.
Ambulatory Care (Ambulatory)
Segment
Tenet’s Ambulatory business segment is comprised of the
operations of United Surgical Partners International (USPI). As of
March 31, 2024, USPI had interests in 512 ambulatory surgery
centers (372 consolidated) and 25 surgical hospitals (eight
consolidated) in 38 states.
Three Months Ended March
31,
Ambulatory segment results ($ in
millions)
2024
2023
Revenues
Net operating revenues
$995
$905
Same-facility system-wide net patient
service revenues2
$1,763
$1,657
Volume Changes versus the Prior-Year
Period
Same-facility system-wide surgical
cases2
(0.4) %
7.9 %
Same-facility system-wide surgical cases
on same-business day basis2
(0.4) %
7.9 %
Adjusted EBITDA, Margins and
NCI
Adjusted EBITDA
$394
$340
Adjusted EBITDA margin
39.6%
37.6%
Adjusted EBITDA less NCI
$241
$214
- First quarter 2024 net operating revenues increased 9.9%
compared to first quarter 2023 driven by strong net revenue per
case growth, acquisitions and opening of de novo facilities, and
increased service lines.
- Surgical business same-facility system-wide net patient service
revenues increased 6.4% in first quarter 2024 compared to first
quarter 2023, with cases down 0.4% and net revenue per case up
6.8%. Net revenue per case growth was driven by higher acuity
associated with favorable case mix.
- First quarter 2024 Adjusted EBITDA increased 15.9% compared to
first quarter 2023, due to strong net revenue per case growth,
disciplined expense management, and contributions from acquisitions
and de novo facilities.
Hospital Operations and Services
(Hospital) Segment
Tenet’s Hospital business segment is primarily comprised of
acute care and specialty hospitals, imaging centers, ancillary
outpatient facilities, micro-hospitals and physician practices. It
also provides comprehensive end-to-end and focused point services,
including hospital and physician revenue cycle management, patient
communications and engagement support and value-based care
solutions. We have combined Conifer with the former Hospital
Segment and all prior periods have been revised for this
change.
Three Months Ended March
31,
Hospital segment results ($ in
millions)
2024
2023
Revenues
Net operating revenues
$4,373
$4,116
Same-hospital net patient service
revenues3
$3,471
$3,133
Same-Hospital Volume Changes versus the
Prior-Year Period
Admissions
4.2%
4.3%
Adjusted admissions4
1.8%
6.7%
Outpatient visits (including outpatient ER
visits)
(0.8)%
—%
Emergency Room visits (inpatient and
outpatient)
3.9%
4.8%
Hospital surgeries
(2.0)%
2.3%
Adjusted EBITDA
Adjusted EBITDA
$630
$492
Adjusted EBITDA margin
14.4%
12.0%
- First quarter 2024 net operating revenues increased 6.2% from
first quarter 2023 primarily due to increased admissions, favorable
payer mix, and improved pricing yield, partially offset by the
impact of hospital sales in first quarter 2024.
- Same-hospital net patient service revenue per adjusted
admission increased 8.8% year-over-year for first quarter 2024
primarily due to improved pricing yield, favorable payer mix, and
our focus on growing higher acuity services.
- Adjusted EBITDA in first quarter 2024 was $630 million compared
to $492 million in first quarter 2023, reflecting strong admissions
growth, favorable payer mix and improved contract labor costs,
partially offset by higher medical fees. Additionally, in the first
quarter of 2024, the Company recognized an $88 million favorable
pre-tax impact associated with additional Medicaid supplemental
revenues in Michigan, of which approximately half related to the
last three months of 2023. First quarter 2023 results included
income from the receipt of $27 million cybersecurity insurance
proceeds.
2024 Outlook1
Tenet’s Outlook for full year 2024 (consolidated and by segment)
and second quarter 2024 follows. This outlook reflects the
completion of the sale of three Coastal South Carolina hospitals on
January 31, 2024 and the completion of the sale of six California
hospitals on March 31, 2024.
CONSOLIDATED ($ in millions, except
per share amounts)
FY 2024 Outlook
Second Quarter 2024
Outlook
Net operating revenues
$20,000 to $20,400
$4,900 to $5,100
Net income from continuing operations
available to Tenet common stockholders
$2,622 to $2,762
$150 to $195
Adjusted EBITDA
$3,500 to $3,700
$835 to $885
Adjusted EBITDA margin
17.5% to 18.1%
17.0% to 17.4%
Diluted income per common share from
continuing operations
$25.96 to $27.35
$1.49 to $1.93
Adjusted net income from continuing
operations
$845 to $950
$160 to $200
Adjusted diluted earnings per share from
continuing operations
$8.37 to $9.41
$1.58 to $1.98
Equity in earnings of unconsolidated
affiliates
$220 to $230
$50 to $60
Depreciation and amortization
$830 to $860
$210 to $220
Interest expense
$825 to $835
$220 to $230
Income tax expense5
$945 to $995
$80 to $95
Net income available to NCI
$750 to $800
$160 to $170
Weighted average diluted common shares
~101 million
~101 million
NCI cash distributions
$665 to $715
Net cash provided by operating
activities6
$1,725 to $2,075
Adjusted net cash provided by operating
activities6
$1,825 to $2,125
Capital expenditures
$775 to $875
Free cash flow – continuing
operations6
$950 to $1,200
Adjusted free cash flow – continuing
operations6
$1,050 to $1,250
Ambulatory Segment ($ in
millions)
FY 2024 Outlook
Net operating revenues
$4,150 to $4,300
Adjusted EBITDA
$1,645 to $1,715
NCI
$640 to $670
Adjusted EBITDA less NCI
$1,005 to $1,045
Changes versus prior year7:
Surgical cases volumes
Up 1.0% to 3.0%
Net revenues per surgical case
Up 2.0% to 3.0%
Hospital Segment ($ in
millions)
FY 2024 Outlook
Net operating revenues
$15,850 to $16,100
Adjusted EBITDA
$1,855 to $1,985
NCI
$110 to $130
Changes versus prior year7:
Inpatient admissions
Up 1.0% to 3.0%
Adjusted admissions
Up 1.0% to 3.0%
Management’s Webcast Discussion of
Results
Tenet management will discuss the Company’s first quarter 2024
results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00
a.m. Central Time) on April 30, 2024. Investors can access the
webcast through the Company’s website at
www.tenethealth.com/investors.
The slide presentation associated with the webcast referenced
above, a copy of this earnings press release, and a related
supplemental financial disclosures document will be available on
the Company’s Investor Relations website on April 30, 2024.
Cautionary Statement
This release contains “forward-looking statements” - that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address the Company’s
expected future business and financial performance and financial
condition, and often contain words such as “expect,” “anticipate,”
“assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,”
“plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.”
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Particular uncertainties that
could cause the Company’s actual results to be materially different
than those expressed in the Company’s forward-looking statements
include, but are not limited to the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K
for the year ended December 31, 2023 and other filings with the
Securities and Exchange Commission.
Footnotes
- Tables and discussions throughout this earnings release include
certain financial measures, including those related to our second
quarter and full year 2024 Outlook, that are not in accordance with
accounting principles generally accepted in the United States of
America (GAAP). Reconciliations of GAAP measures to the Adjusted
(non-GAAP) measures used are detailed in Tables #1-6 included at
the end of this earnings release. Management’s reasoning for the
use of these non-GAAP measures and descriptions of the various
non-GAAP measures are included in the Non-GAAP Financial Measures
section of this earnings release.
- Same-facility system-wide revenues and statistical information
include the results of the facilities in which the Ambulatory
segment has an investment that are not consolidated by Tenet. To
help analyze the segment’s results of operations, management uses
system-wide measures, which include revenues and cases of both
consolidated and unconsolidated facilities.
- For 2024, same-hospital revenues and statistical data include
those for hospitals and hospital-affiliated outpatient centers
operated by the Company’s Hospital segment continuously from
January 1, 2023 through March 31, 2024. Amounts associated with
physician practices are excluded.
- Adjusted admissions represent actual patient admissions
adjusted to include outpatient services provided by facilities in
our Hospital segment by multiplying actual patient admissions by
the sum of gross inpatient revenues and outpatient revenues, then
dividing that result by gross inpatient revenues.
- Income tax expense is calculated by multiplying 24% (the
federal corporate tax rate of 21% plus an estimate of state taxes)
by the sum of: pretax income less GAAP facility level NCI expense
plus permanent differences, and non-deductible interest
expense.
- For 2024, Outlook for net cash provided by operating
activities, Adjusted net cash provided by operating activities,
Free cash flow - continuing operations and Adjusted free cash flow
- continuing operations include an estimated $687 million of income
tax payments associated with the gains on sale of the three
hospitals and related operations in South Carolina and the six
hospitals and related operations in California.
- Change versus prior year is presented on a same-facility
system-wide basis for USPI Ambulatory surgical cases and on a
same-hospital basis for hospital statistics.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified
healthcare services company headquartered in Dallas. Our care
delivery network includes United Surgical Partners International,
the largest ambulatory platform in the country, which operates
ambulatory surgery centers and surgical hospitals. We also operate
a national portfolio of acute care and specialty hospitals, other
outpatient facilities, a network of leading employed physicians and
a global business center in Manila, Philippines. Our Conifer Health
Solutions subsidiary provides revenue cycle management and
value-based care services to hospitals, health systems, physician
practices, employers and other clients. Across the Tenet
enterprise, we are united by our mission to deliver quality,
compassionate care in the communities we serve. For more
information, please visit www.tenethealth.com.
Non-GAAP Financial
Measures
The Company believes the non-GAAP measures described below are
useful to investors and analysts because they present additional
information on the Company’s financial performance. Investors,
analysts, Company management and the Company’s Board of Directors
utilize these non-GAAP measures, in addition to GAAP measures, to
track the Company’s financial and operating performance and compare
the Company’s performance to its peer companies, which use similar
non-GAAP financial measures in their presentations and earnings
releases. The Human Resources Committee of the Company’s Board of
Directors also uses certain of these measures to evaluate
management’s performance for the purpose of determining incentive
compensation. Additional information regarding the purpose and
utility of specific non-GAAP measures used in this release is set
forth below.
- Adjusted EBITDA is defined by the Company as net income
available (loss attributable) to Tenet common shareholders before
(1) the cumulative effect of changes in accounting principles, (2)
net loss attributable (income available) to noncontrolling
interests, (3) income (loss) from discontinued operations, net of
tax, (4) income tax benefit (expense), (5) gain (loss) from early
extinguishment of debt, (6) other non-operating income (expense),
net, (7) interest expense, (8) litigation and investigation benefit
(costs), net of insurance recoveries, (9) net gains (losses) on
sales, consolidation and deconsolidation of facilities, (10)
impairment and restructuring charges and acquisition-related costs,
(11) depreciation and amortization and (12) income (loss) from
divested and closed businesses (i.e., health plan businesses).
Litigation and investigation costs excluded do not include ordinary
course of business malpractice and other litigation and related
expenses.
- Adjusted diluted earnings (loss) per share from continuing
operations is defined by the Company as Adjusted net income
available (loss attributable) from continuing operations to Tenet
common shareholders, divided by the weighted average diluted shares
outstanding in the reporting period.
- Adjusted net income available (loss attributable) from
continuing operations to Tenet common shareholders is defined by
the Company as net income available (loss attributable) to Tenet
common shareholders before (1) income (loss) from discontinued
operations, net of tax, (2) gain (loss) from early extinguishment
of debt, (3) litigation and investigation benefit (costs), net of
insurance recoveries, (4) net gains (losses) on sales,
consolidation and deconsolidation of facilities, (5) impairment and
restructuring charges and acquisition-related costs, (6) income
(loss) from divested and closed businesses (i.e., health plan
businesses) and (7) the associated impact of these items on taxes
and noncontrolling interests. Litigation and investigation costs
excluded do not include ordinary course of business malpractice and
other litigation and related expenses.
- Free Cash Flow is defined by the Company as (1) net cash
provided by (used in) operating activities, less (2) purchases of
property and equipment for continuing operations.
- Adjusted Free Cash Flow is defined by the Company as (1)
Adjusted net cash provided by (used in) operating activities from
continuing operations, less (2) purchases of property and equipment
from continuing operations.
- Adjusted net cash provided by (used in) operating activities is
defined by the Company as cash provided by (used in) operating
activities prior to (1) payments for restructuring charges,
acquisition-related costs and litigation costs and settlements, and
(2) net cash provided by (used in) operating activities from
discontinued operations.
The Company believes that Adjusted EBITDA is a useful measure,
in part, because certain investors and analysts use both historical
and projected Adjusted EBITDA, in addition to other GAAP and
non-GAAP measures, as factors in determining the estimated fair
value of shares of the Company’s common stock. Company management
also regularly reviews the Adjusted EBITDA performance for each
operating segment. The Company does not use Adjusted EBITDA to
measure liquidity, but instead to measure operating
performance.
The Company uses, and believes investors use, Free Cash Flow and
Adjusted Free Cash Flow as supplemental non-GAAP measures to
analyze cash flows generated from the Company’s operations. The
Company believes these measures are useful to investors in
evaluating its ability to fund distributions paid to noncontrolling
interests or for acquisitions, purchasing equity interests in joint
ventures or repaying debt.
These non-GAAP measures may not be comparable to similarly
titled measures reported by other companies. Because these measures
exclude many items that are included in the Company’s financial
statements, they do not provide a complete measure of the Company’s
operating performance. For example, the Company’s definitions of
Free Cash Flow and Adjusted Free Cash Flow do not include other
important uses of cash including (1) cash used to purchase
businesses or joint venture interests, or (2) any items that are
classified as Cash Flows from Financing Activities on the Company’s
Consolidated Statement of Cash Flows, including items such as (i)
cash used to repay borrowings, or (ii) distributions paid to
noncontrolling interests. Accordingly, investors are encouraged to
use GAAP measures when evaluating the Company’s financial
performance.
See corresponding reconciliations of the non-GAAP financial
measures referred to above to the most comparable GAAP financial
measures in Tables #1 - 6 below.
Tenet Healthcare
Corporation
Financial Statements and
Reconciliations
First Quarter Earnings
Release
Table of Contents
Description
Page
Consolidated Statements of Operations
12
Consolidated Balance Sheets
13
Consolidated Statements of Cash Flows
14
Segment Reporting
15
Table #1 – Reconciliations of Net Income
to Adjusted Net Income
16
Table #2 – Reconciliations of Net Income
to Adjusted EBITDA
17
Table #3 – Reconciliations of Net Cash
Provided by Operating Activities to Free Cash Flow and Adjusted
Free Cash Flow
18
Table #4 – Reconciliations of Outlook Net
Income to Outlook Adjusted Net Income
19
Table #5 – Reconciliations of Outlook Net
Income to Outlook Adjusted EBITDA
20
Table #6 – Reconciliations of Outlook Net
Cash Provided by Operating Activities to Outlook Free Cash Flow and
Outlook Adjusted Free Cash Flow
21
TENET HEALTHCARE
CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(Dollars in millions, except per share
amounts)
Three Months Ended March
31,
2024
%
2023
%
Change
Net operating revenues
$
5,368
100.0
%
$
5,021
100.0
%
6.9
%
Grant income
—
—
%
3
0.1
%
(100.0
)%
Equity in earnings of unconsolidated
affiliates
59
1.1
%
50
1.0
%
18.0
%
Operating expenses:
Salaries, wages and benefits
2,321
43.2
%
2,258
45.0
%
2.8
%
Supplies
928
17.3
%
891
17.7
%
4.2
%
Other operating expenses, net
1,154
21.5
%
1,093
21.9
%
5.6
%
Depreciation and amortization
208
3.9
%
217
4.3
%
Impairment and restructuring charges, and
acquisition-related costs
27
0.5
%
21
0.4
%
Litigation and investigation costs
4
0.1
%
4
0.1
%
Net gains on sales, consolidation and
deconsolidation of facilities
(2,500
)
(46.6
)%
(13
)
(0.3
)%
Operating income
3,285
61.2
%
603
12.0
%
Interest expense
(218
)
(221
)
Other non-operating income (expense),
net
25
(2
)
Loss from early extinguishment of debt
(8
)
—
Income before income taxes
3,084
380
Income tax expense
(750
)
(84
)
Net income
2,334
296
Less: Net income available to
noncontrolling interests
183
153
Net income available to Tenet
Healthcare Corporation common shareholders
$
2,151
$
143
Earnings per share available to Tenet
Healthcare Corporation common shareholders:
Basic
$
21.60
$
1.40
Diluted
$
21.38
$
1.32
Weighted average shares and dilutive
securities outstanding
(in thousands):
Basic
99,581
102,289
Diluted
100,598
106,006
TENET HEALTHCARE
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Dollars in millions)
March 31,
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
2,481
$
1,228
Accounts receivable
3,148
2,914
Inventories of supplies, at cost
395
411
Assets held for sale
22
775
Other current assets
1,775
1,839
Total current assets
7,821
7,167
Investments and other assets
3,244
3,157
Deferred income taxes
20
77
Property and equipment, at cost, less
accumulated depreciation and amortization
5,855
6,236
Goodwill
10,568
10,307
Other intangible assets, at cost, less
accumulated amortization
1,399
1,368
Total assets
$
28,907
$
28,312
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt
$
107
$
120
Accounts payable
1,335
1,408
Accrued compensation and benefits
775
930
Professional and general liability
reserves
266
254
Accrued interest payable
249
200
Liabilities held for sale
11
69
Income tax payable
805
23
Other current liabilities
1,868
1,756
Total current liabilities
5,416
4,760
Long-term debt, net of current portion
12,772
14,882
Professional and general liability
reserves
794
792
Defined benefit plan obligations
334
335
Deferred income taxes
231
326
Other long-term liabilities
1,689
1,709
Total liabilities
21,236
22,804
Commitments and contingencies
Redeemable noncontrolling interests in
equity of consolidated subsidiaries
2,728
2,391
Equity:
Shareholders’ equity:
Common stock
8
8
Additional paid-in capital
4,806
4,834
Accumulated other comprehensive loss
(179
)
(181
)
Retained earnings (accumulated
deficit)
1,959
(192
)
Common stock in treasury, at cost
(3,141
)
(2,861
)
Total shareholders’ equity
3,453
1,608
Noncontrolling interests
1,490
1,509
Total equity
4,943
3,117
Total liabilities and equity
$
28,907
$
28,312
TENET HEALTHCARE
CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2024
2023
Net income
$
2,334
$
296
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization
208
217
Deferred income tax expense (benefit)
(38
)
8
Stock-based compensation expense
17
14
Impairment and restructuring charges, and
acquisition-related costs
27
21
Litigation and investigation costs
4
4
Net gains on sales, consolidation and
deconsolidation of facilities
(2,500
)
(13
)
Loss from early extinguishment of debt
8
—
Equity in earnings of unconsolidated
affiliates, net of distributions received
3
11
Amortization of debt discount and debt
issuance costs
8
9
Net gains from the sale of investments and
long-lived assets
—
(14
)
Other items, net
(5
)
(2
)
Changes in cash from operating assets
and liabilities:
Accounts receivable
(263
)
35
Inventories and other current assets
(18
)
50
Income taxes
783
76
Accounts payable, accrued expenses,
contract liabilities and other current liabilities
19
(230
)
Other long-term liabilities
24
(9
)
Payments for restructuring charges,
acquisition-related costs, and litigation costs and
settlements
(25
)
(24
)
Net cash provided by operating
activities
586
449
Cash flows from investing
activities:
Purchases of property and equipment
(240
)
(235
)
Purchases of businesses or joint venture
interests, net of cash acquired
(449
)
(48
)
Proceeds from sales of facilities and
other assets
4,030
13
Proceeds from sales of marketable
securities and long-term investments
7
9
Purchases of marketable securities and
long-term investments
(10
)
(18
)
Other items, net
(10
)
(7
)
Net cash provided by (used in)
investing activities
3,328
(286
)
Cash flows from financing
activities:
Repayments of borrowings
(2,141
)
(45
)
Proceeds from borrowings
2
12
Repurchases of common stock
(278
)
(50
)
Distributions paid to noncontrolling
interests
(162
)
(134
)
Proceeds from the sale of noncontrolling
interests
5
25
Purchases of noncontrolling interests
(52
)
(41
)
Other items, net
(35
)
(22
)
Net cash used in financing
activities
(2,661
)
(255
)
Net increase (decrease) in cash and cash
equivalents
1,253
(92
)
Cash and cash equivalents at beginning of
period
1,228
858
Cash and cash equivalents at end of
period
$
2,481
$
766
Supplemental disclosures:
Interest paid, net of capitalized
interest
$
(162
)
$
(177
)
Income tax payments, net
$
(5
)
$
—
TENET HEALTHCARE
CORPORATION
SEGMENT REPORTING
(Unaudited)
Three Months Ended
March 31,
(Dollars in millions)
2024
2023
Net operating revenues:
Ambulatory Care
$
995
$
905
Hospital Operations and Services
4,373
4,116
Total
$
5,368
$
5,021
Equity in earnings of unconsolidated
affiliates:
Ambulatory Care
$
56
$
47
Hospital Operations and Services
3
3
Total
$
59
$
50
Adjusted EBITDA:
Ambulatory Care
$
394
$
340
Hospital Operations and Services
630
492
Total
$
1,024
$
832
Adjusted EBITDA margins:
Ambulatory Care
39.6
%
37.6
%
Hospital Operations and Services
14.4
%
12.0
%
Total
19.1
%
16.6
%
Capital expenditures:
Ambulatory Care
$
18
$
18
Hospital Operations and Services
222
217
Total
$
240
$
235
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #1 – Reconciliations of
Net Income Available to Tenet Healthcare Corporation Common
Shareholders to Adjusted Net Income Available from Continuing
Operations to Common Shareholders
(Unaudited)
Three Months Ended
March 31,
(Dollars in millions, except per share
amounts)
2024
2023
Net income available to Tenet
Healthcare Corporation common shareholders
$
2,151
$
143
Less:
Impairment and restructuring charges, and
acquisition-related costs
(27
)
(21
)
Litigation and investigation costs
(4
)
(4
)
Net gains on sales, consolidation and
deconsolidation of facilities
2,500
13
Loss from early extinguishment of debt
(8
)
—
Tax and noncontrolling interests impact of
above items
(634
)
1
Adjusted net income available from
continuing operations to common shareholders
$
324
$
154
Diluted earnings per share from
continuing operations
$
21.38
$
1.32
Less:
Impairment and restructuring charges, and
acquisition-related costs
(0.27
)
(0.20
)
Litigation and investigation costs
(0.04
)
(0.04
)
Net gains on sales, consolidation and
deconsolidation of facilities
24.85
0.13
Loss from early extinguishment of debt
(0.08
)
—
Tax and noncontrolling interests impact of
above items
(6.30
)
0.01
Adjusted diluted earnings per share
from continuing operations
$
3.22
$
1.42
Weighted average basic shares
outstanding (in thousands)
99,581
102,289
Weighted average dilutive shares
outstanding (in thousands)
100,598
106,006
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #2 – Reconciliations of
Net Income Available to Tenet Healthcare Corporation Common
Shareholders to Adjusted EBITDA
(Unaudited)
Three Months Ended
March 31,
(Dollars in millions)
2024
2023
Net income available to Tenet
Healthcare Corporation common shareholders
$
2,151
$
143
Less:
Net income available to noncontrolling
interests
(183
)
(153
)
Income from continuing operations
2,334
296
Income tax expense
(750
)
(84
)
Loss from early extinguishment of debt
(8
)
—
Other non-operating income (expense),
net
25
(2
)
Interest expense
(218
)
(221
)
Operating income
3,285
603
Litigation and investigation costs
(4
)
(4
)
Net gains on sales, consolidation and
deconsolidation of facilities
2,500
13
Impairment and restructuring charges, and
acquisition-related costs
(27
)
(21
)
Depreciation and amortization
(208
)
(217
)
Adjusted EBITDA
$
1,024
$
832
Net operating revenues
$
5,368
$
5,021
Net income available to Tenet
Healthcare Corporation common shareholders as a % of net operating
revenues
40.1
%
2.8
%
Adjusted EBITDA as a % of net operating
revenues (Adjusted EBITDA margin)
19.1
%
16.6
%
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #3 – Reconciliations of
Net Cash Provided by Operating Activities to Free Cash Flow and
Adjusted Free Cash Flow from Continuing Operations
(Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2024
2023
Net cash provided by operating
activities
$
586
$
449
Purchases of property and equipment
(240
)
(235
)
Free cash flow – continuing
operations
$
346
$
214
Net cash provided by (used in)
investing activities
$
3,328
$
(286
)
Net cash used in financing
activities
$
(2,661
)
$
(255
)
Net cash provided by operating
activities
$
586
$
449
Less:
Payments for restructuring charges,
acquisition-related costs, and litigation costs and settlements
(25
)
(24
)
Adjusted net cash provided by operating
activities from continuing operations
611
473
Purchases of property and equipment
(240
)
(235
)
Adjusted free cash flow – continuing
operations
$
371
$
238
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #4 – Reconciliations of
Outlook Net Income Available to Tenet Healthcare Corporation Common
Shareholders to Outlook Adjusted Net Income Available from
Continuing Operations to Common Shareholders
(Unaudited)
Second Quarter 2024
FY 2024
(Dollars in millions, except per share
amounts)
Low
High
Low
High
Net income available to Tenet
Healthcare Corporation common shareholders
$
150
$
195
$
2,622
$
2,762
Less:
Impairment and restructuring charges,
acquisition-related costs, and litigation costs and
settlements(1)
(20
)
(10
)
(100
)
(50
)
Net gains on sales, consolidation and
deconsolidation of facilities(2)
—
—
2,500
2,500
Loss from early extinguishment of
debt(2)
—
—
(8
)
(8
)
Tax and noncontrolling interests impact of
above items
10
5
(615
)
(630
)
Adjusted net income available from
continuing operations to common shareholders
$
160
$
200
$
845
$
950
Diluted earnings per share from
continuing operations
$
1.49
$
1.93
$
25.96
$
27.35
Less:
Impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements
(0.19
)
(0.10
)
(0.99
)
(0.49
)
Net gains on sales, consolidation and
deconsolidation of facilities
—
—
24.75
24.75
Loss from early extinguishment of debt
—
—
(0.08
)
(0.08
)
Tax and noncontrolling interests impact of
above items
0.10
0.05
(6.09
)
(6.24
)
Adjusted diluted earnings per share
from continuing operations
$
1.58
$
1.98
$
8.37
$
9.41
Weighted average basic shares
outstanding (in thousands)
100,000
100,000
100,000
100,000
Weighted average dilutive shares
outstanding (in thousands)
101,000
101,000
101,000
101,000
(1)
The figures shown represent the Company's
estimate for restructuring charges plus the actual year-to-date
results for impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements.
The Company does not generally forecast impairment charges,
acquisition-related costs, and litigation costs and settlements
because it does not believe that it can forecast these items with
sufficient accuracy since some of these items are indeterminable at
the time the Company provides its financial Outlook.
(2)
The Company does not generally forecast
net gains on sales, consolidation and deconsolidation of facilities
or losses from the early extinguishment of debt because the Company
does not believe that it can forecast these items with sufficient
accuracy since it is indeterminable at the time the Company
provides its financial Outlook. The figures shown relate to
transactions that have already occurred in 2024.
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #5 – Reconciliations of
Outlook Net Income Available to Tenet Healthcare Corporation Common
Shareholders to Outlook Adjusted EBITDA
(Unaudited)
Second Quarter 2024
FY 2024
(Dollars in millions)
Low
High
Low
High
Net income available to Tenet
Healthcare Corporation common shareholders
$
150
$
195
$
2,622
$
2,762
Less:
Net income available to noncontrolling
interests
(160
)
(170
)
(750
)
(800
)
Income tax expense
(80
)
(95
)
(945
)
(995
)
Interest expense
(230
)
(220
)
(835
)
(825
)
Loss from early extinguishment of
debt(2)
—
—
(8
)
(8
)
Other non-operating income, net
15
25
90
100
Net gains on sales, consolidation and
deconsolidation of facilities(2)
—
—
2,500
2,500
Impairment and restructuring charges,
acquisition-related costs, and litigation costs and
settlements(1)
(20
)
(10
)
(100
)
(50
)
Depreciation and amortization
(210
)
(220
)
(830
)
(860
)
Adjusted EBITDA
$
835
$
885
$
3,500
$
3,700
Income from continuing
operations
$
150
$
195
$
2,622
$
2,762
Net operating revenues
$
4,900
$
5,100
$
20,000
$
20,400
Net income available to Tenet
Healthcare Corporation common shareholders as a % of net operating
revenues
3.1
%
3.8
%
13.1
%
13.5
%
Adjusted EBITDA as a % of net operating
revenues (Adjusted EBITDA margin)
17.0
%
17.4
%
17.5
%
18.1
%
(1)
The figures shown represent the Company's
estimate for restructuring charges plus the actual year-to-date
results for impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements.
The Company does not generally forecast impairment charges,
acquisition-related costs, and litigation costs and settlements
because it does not believe that it can forecast these items with
sufficient accuracy since some of these items are indeterminable at
the time the Company provides its financial Outlook.
(2)
The Company does not generally forecast
net gains on sales, consolidation and deconsolidation of facilities
or losses from the early extinguishment of debt because the Company
does not believe that it can forecast these items with sufficient
accuracy since it is indeterminable at the time the Company
provides its financial Outlook. The figures shown relate to
transactions that have already occurred in 2024.
TENET HEALTHCARE
CORPORATION
Additional Supplemental
Non-GAAP disclosures
Table #6 – Reconciliations of
Outlook Net Cash Provided by Operating Activities
to Outlook Free Cash Flow
– Continuing Operations and Outlook Adjusted Free Cash
Flow – Continuing
Operations
(Unaudited)
(Dollars in millions)
FY 2024
Low
High
Net cash provided by operating
activities
$
1,725
$
2,075
Purchases of property and equipment
(775
)
(875
)
Free cash flow – continuing
operations
$
950
$
1,200
Net cash provided by operating
activities
$
1,725
$
2,075
Less:
Payments for restructuring charges,
acquisition-related costs and litigation costs and
settlements(1)
(100
)
(50
)
Adjusted net cash provided by operating
activities – continuing operations
1,825
2,125
Purchases of property and equipment
(775
)
(875
)
Adjusted free cash flow – continuing
operations(2)
$
1,050
$
1,250
(1)
The figures shown represent the Company's
estimate for restructuring payments plus the actual year-to-date
payments for restructuring charges, acquisition-related costs, and
litigation costs and settlements. The Company does not generally
forecast payments for acquisition-related costs, and litigation
costs and settlements because it does not believe that it can
forecast these items with sufficient accuracy since some of these
items are indeterminable at the time the Company provides its
financial Outlook.
(2)
The Company’s definition of Adjusted Free
Cash Flow does not include other important uses of cash including
(1) cash used to purchase businesses or joint venture interests, or
(2) any items that are classified as Cash Flows From Financing
Activities on the Company’s Consolidated Statement of Cash Flows,
including items such as (i) cash used to repay borrowings, and (ii)
distributions paid to noncontrolling interests.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429925010/en/
Investor Contact Will McDowell 469-893-2387
william.mcdowell@tenethealth.com
Media Contact Robert Dyer 469-893-2640
mediarelations@tenethealth.com
Grafico Azioni Tenet Healthcare (NYSE:THC)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni Tenet Healthcare (NYSE:THC)
Storico
Da Mar 2024 a Mar 2025
