DALLAS / Feb 08, 2024 / Business Wire / Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter and year ended December 31, 2023.
"Our businesses performed exceptionally well in 2023, driven by strong same facility revenue growth and disciplined operating management," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We carry momentum into 2024 and are focused on continuing to expand access to care and investing in cutting edge technology for our patients and physician partners, while strategically reducing our debt and growing our ambulatory care and hospital businesses."
Tenet’s results for fourth quarter 2023 versus fourth quarter 2022 are as follows:
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||
($ in millions, except per share results) | 2023 | 2022 | 2023 | 2022 |
Net operating revenues | $5,379 | $4,990 | $20,548 | $19,174 |
Net income available to Tenet common shareholders from continuing operations | $244 | $102 | $611 | $410 |
Net income available to Tenet common shareholders from continuing operations per diluted share | $2.30 | $0.92 | $5.71 | $3.78 |
Adjusted EBITDA1 excluding grant income | $1,010 | $857 | $3,525 | $3,275 |
Adjusted EBITDA1 | $1,012 | $897 | $3,541 | $3,469 |
Adjusted diluted earnings per share from continuing operations1 | $2.68 | $1.96 | $6.98 | $6.80 |
Balance Sheet and Cash Flows
Recent Transactions
Ambulatory Care (Ambulatory) Segment
Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of December 31, 2023, USPI had interests in 461 ambulatory surgery centers (322 consolidated) and 24 surgical hospitals (eight consolidated) in 35 states. For all periods prior to June 30, 2022, the Company owned 95% of the voting stock of USPI and now owns 100%.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||
Ambulatory segment results ($ in millions) | 2023 | 2022 | 2023 | 2022 |
Revenues |
|
|
|
|
Net operating revenues | $1,077 | $933 | $3,865 | $3,248 |
Same-facility system-wide net patient service revenues2 | $1,965 | $1,794 | $7,007 | $6,416 |
Volume Changes versus the Prior-Year Period |
|
|
|
|
Same-facility system-wide surgical cases2 | 3.9 % | 0.7 % | 5.6 % | 2.0 % |
Same-facility system-wide surgical cases on same-business day basis2 | 3.9 % | 0.7 % | 6.0 % | 1.6 % |
Adjusted EBITDA, Margins and NCI |
|
|
|
|
Adjusted EBITDA excluding grant income | $464 | $407 | $1,543 | $1,323 |
Adjusted EBITDA | $464 | $407 | $1,544 | $1,327 |
Adjusted EBITDA margin excluding grant income | 43.1% | 43.6% | 39.9% | 40.7% |
Adjusted EBITDA margin | 43.1% | 43.6% | 39.9% | 40.9% |
Adjusted EBITDA less NCI excluding grant income | $280 | $262 | $958 | $856 |
Adjusted EBITDA less NCI | $280 | $262 | $958 | $858 |
Hospital Operations and Services (Hospital) Segment
Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions. We have combined Conifer with the former Hospital Segment and all prior periods have been revised for this change.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||
Hospital segment results ($ in millions) | 2023 | 2022 | 2023 | 2022 |
Revenues |
|
|
|
|
Net operating revenues | $4,302 | $4,057 | $16,683 | $15,926 |
Grant income | $2 | $40 | $15 | $190 |
Same-hospital net patient service revenues3 | $3,748 | $3,516 | $14,458 | $13,818 |
Same-Hospital Volume Changes versus the Prior-Year Period |
|
|
|
|
Admissions | 1.0% | 0.5% | 2.2% | (4.5)% |
Adjusted admissions4 | 0.1% | 2.9% | 2.5% | (1.2)% |
Outpatient visits (including outpatient ER visits) | (2.2)% | (2.8)% | (1.3)% | (4.8)% |
Emergency Room visits (inpatient and outpatient) | (3.3)% | 7.7% | 0.1% | 4.8% |
Hospital surgeries | 0.8% | (2.5)% | 0.6% | (3.7)% |
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA excluding grant income | $546 | $450 | $1,982 | $1,952 |
Adjusted EBITDA | $548 | $490 | $1,997 | $2,142 |
Adjusted EBITDA margin excluding grant income | 12.7% | 11.1% | 11.9% | 12.3% |
Adjusted EBITDA margin | 12.7% | 12.1% | 12.0% | 13.4% |
2024 Outlook1
Tenet’s Outlook for full year 2024 (consolidated and by segment) and first quarter 2024 follows. This outlook reflects the completion of the sale of our Coastal South Carolina hospitals on January 31, 2024 and assumes that the sale of our four California hospitals will be completed on March 31, 2024.
CONSOLIDATED ($ in millions, except per share amounts) | FY 2024 Outlook | First Quarter 2024 Outlook |
Net operating revenues | $19,900 to $20,300 | $5,000 to $5,200 |
Net income from continuing operations available to Tenet common stockholders | $2,172 to $2,417 | $1,742 to $1,872 |
Adjusted EBITDA | $3,285 to $3,485 | $800 to $850 |
Adjusted EBITDA margin | 16.5% to 17.2% | 16.0% to 16.3% |
Diluted income per common share from continuing operations | $20.69 to $23.02 | $16.59 to $17.83 |
Adjusted net income from continuing operations | $605 to $725 | $130 to $170 |
Adjusted diluted earnings per share from continuing operations | $5.76 to $6.90 | $1.24 to $1.62 |
Equity in earnings of unconsolidated affiliates | $220 to $230 | $40 to $50 |
Depreciation and amortization | $840 to $870 | $210 to $220 |
Interest expense | $825 to $835 | $220 to $230 |
Income tax expense5 | $840 to $885 | $590 to $620 |
Net income available to NCI | $735 to $785 | $160 to $170 |
Weighted average diluted common shares | ~105 million | ~105 million |
NCI cash distributions | $650 to $700 |
|
Net cash provided by operating activities6 | $1,650 to $2,000 |
|
Adjusted net cash provided by operating activities6 | $1,725 to $2,025 |
|
Capital expenditures | $775 to $875 |
|
Free cash flow – continuing operations6 | $875 to $1,125 |
|
Adjusted free cash flow – continuing operations6 | $950 to $1,150 |
|
Ambulatory Segment ($ in millions) | FY 2024 Outlook |
Net operating revenues | $4,075 to $4,225 |
Adjusted EBITDA | $1,615 to $1,685 |
Total NCI (Facility level) | $625 to $655 |
Adjusted EBITDA less total NCI | $990 to $1,030 |
Changes versus prior year7: |
|
Surgical cases volumes | Up 1.0% to 3.0% |
Net revenues per surgical case | Up 2.0% to 3.0% |
Hospital Segment ($ in millions) | FY 2024 Outlook |
Net operating revenues | $15,825 to $16,075 |
Adjusted EBITDA | $1,670 to $1,800 |
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 fourth quarter 2023 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 8, 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 February 8, 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, 2022 and other filings with the Securities and Exchange Commission.
Footnotes
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 or has ownership interests in more than 480 ambulatory surgery centers and surgical hospitals. We also operate 58 acute care and specialty hospitals, approximately 160 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.
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 | |
Fourth Quarter Earnings Release | |
Table of Contents | |
Description | Page |
Consolidated Statements of Operations | 12 |
Consolidated Balance Sheets | 14 |
Consolidated Statements of Cash Flows | 15 |
Segment Reporting | 16 |
Table #1 – Reconciliations of Net Income to Adjusted Net Income | 17 |
Table #2 – Reconciliations of Net Income to Adjusted EBITDA | 18 |
Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow | 19 |
Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income | 20 |
Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA | 21 |
Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow | 22 |
TENET HEALTHCARE CORPORATION | |||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in millions, except per share amounts) |
| Three Months Ended December 31, | |||||||||||||||
| 2023 |
| % |
| 2022 |
| % |
| Change | ||||||||
Net operating revenues |
| $ | 5,379 |
|
| 100.0 | % |
| $ | 4,990 |
|
| 100.0 | % |
| 7.8 | % |
Grant income |
|
| 2 |
|
| — | % |
|
| 40 |
|
| 0.8 | % |
| (95.0 | )% |
Equity in earnings of unconsolidated affiliates |
|
| 73 |
|
| 1.4 | % |
|
| 65 |
|
| 1.3 | % |
| 12.3 | % |
Operating expenses: |
|
|
|
|
|
|
|
|
|
| |||||||
Salaries, wages and benefits |
|
| 2,315 |
|
| 43.0 | % |
|
| 2,306 |
|
| 46.2 | % |
| 0.4 | % |
Supplies |
|
| 931 |
|
| 17.3 | % |
|
| 860 |
|
| 17.2 | % |
| 8.3 | % |
Other operating expenses, net |
|
| 1,196 |
|
| 22.2 | % |
|
| 1,032 |
|
| 20.7 | % |
| 15.9 | % |
Depreciation and amortization |
|
| 216 |
|
| 4.0 | % |
|
| 213 |
|
| 4.3 | % |
|
| |
Impairment and restructuring charges, and acquisition-related costs |
|
| 53 |
|
| 1.0 | % |
|
| 129 |
|
| 2.6 | % |
|
| |
Litigation and investigation costs |
|
| 19 |
|
| 0.4 | % |
|
| 20 |
|
| 0.4 | % |
|
| |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| (11 | ) |
| (0.2 | )% |
|
| (1 | ) |
| — | % |
|
| |
Operating income |
|
| 735 |
|
| 13.7 | % |
|
| 536 |
|
| 10.7 | % |
|
| |
Interest expense |
|
| (227 | ) |
|
|
|
| (219 | ) |
|
|
|
| |||
Other non-operating income, net |
|
| 11 |
|
|
|
|
| 4 |
|
|
|
|
| |||
Income from continuing operations, before income taxes |
|
| 519 |
|
|
|
|
| 321 |
|
|
|
|
| |||
Income tax expense |
|
| (63 | ) |
|
|
|
| (47 | ) |
|
|
|
| |||
Net income |
|
| 456 |
|
|
|
|
| 274 |
|
|
|
|
| |||
Less: Net income available to noncontrolling interests |
|
| 212 |
|
|
|
|
| 172 |
|
|
|
|
| |||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 244 |
|
|
|
| $ | 102 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| |||||||
Earnings per share available to Tenet Healthcare Corporation common shareholders: |
|
|
|
|
|
|
|
|
|
| |||||||
Basic |
| $ | 2.42 |
|
|
|
| $ | 0.98 |
|
|
|
|
| |||
Diluted |
| $ | 2.30 |
|
|
|
| $ | 0.92 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| |||||||
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
| |||||||
Basic |
|
| 100,956 |
|
|
|
|
| 104,519 |
|
|
|
|
| |||
Diluted |
|
| 104,167 |
|
|
|
|
| 106,368 |
|
|
|
|
|
TENET HEALTHCARE CORPORATION | |||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in millions, except per share amounts) |
| Twelve Months Ended December 31, | |||||||||||||||
| 2023 |
| % |
| 2022 |
| % |
| Change | ||||||||
Net operating revenues |
| $ | 20,548 |
|
| 100.0 | % |
| $ | 19,174 |
|
| 100.0 | % |
| 7.2 | % |
Grant income |
|
| 16 |
|
| 0.1 | % |
|
| 194 |
|
| 1.0 | % |
| (91.8 | )% |
Equity in earnings of unconsolidated affiliates |
|
| 228 |
|
| 1.1 | % |
|
| 216 |
|
| 1.1 | % |
| 5.6 | % |
Operating expenses: |
|
|
|
|
|
|
|
|
|
| |||||||
Salaries, wages and benefits |
|
| 9,146 |
|
| 44.5 | % |
|
| 8,844 |
|
| 46.1 | % |
| 3.4 | % |
Supplies |
|
| 3,590 |
|
| 17.5 | % |
|
| 3,273 |
|
| 17.0 | % |
| 9.7 | % |
Other operating expenses, net |
|
| 4,515 |
|
| 22.0 | % |
|
| 3,998 |
|
| 20.8 | % |
| 12.9 | % |
Depreciation and amortization |
|
| 870 |
|
| 4.2 | % |
|
| 841 |
|
| 4.4 | % |
|
| |
Impairment and restructuring charges, and acquisition-related costs |
|
| 137 |
|
| 0.7 | % |
|
| 226 |
|
| 1.2 | % |
|
| |
Litigation and investigation costs |
|
| 47 |
|
| 0.2 | % |
|
| 70 |
|
| 0.4 | % |
|
| |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| (23 | ) |
| (0.1 | )% |
|
| (1 | ) |
| — | % |
|
| |
Operating income |
|
| 2,510 |
|
| 12.2 | % |
|
| 2,333 |
|
| 12.2 | % |
|
| |
Interest expense |
|
| (901 | ) |
|
|
|
| (890 | ) |
|
|
|
| |||
Other non-operating income, net |
|
| 19 |
|
|
|
|
| 10 |
|
|
|
|
| |||
Loss from early extinguishment of debt |
|
| (11 | ) |
|
|
|
| (109 | ) |
|
|
|
| |||
Income from continuing operations, before income taxes |
|
| 1,617 |
|
|
|
|
| 1,344 |
|
|
|
|
| |||
Income tax expense |
|
| (306 | ) |
|
|
|
| (344 | ) |
|
|
|
| |||
Income from continuing operations, before discontinued operations |
|
| 1,311 |
|
|
|
|
| 1,000 |
|
|
|
|
| |||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
| |||||||
Income from discontinued operations |
|
| — |
|
|
|
|
| 1 |
|
|
|
|
| |||
Net income |
|
| 1,311 |
|
|
|
|
| 1,001 |
|
|
|
|
| |||
Less: Net income available to noncontrolling interests |
|
| 700 |
|
|
|
|
| 590 |
|
|
|
|
| |||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 611 |
|
|
|
| $ | 411 |
|
|
|
|
| |||
Amounts available to Tenet Healthcare Corporation common shareholders: |
|
|
|
|
|
|
|
|
|
| |||||||
Income from continuing operations, net of tax |
| $ | 611 |
|
|
|
| $ | 410 |
|
|
|
|
| |||
Income from discontinued operations, net of tax |
|
| — |
|
|
|
|
| 1 |
|
|
|
|
| |||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 611 |
|
|
|
| $ | 411 |
|
|
|
|
| |||
Earnings per share available to Tenet Healthcare Corporation common shareholders: |
|
|
|
|
|
|
|
|
|
| |||||||
Basic |
|
|
|
|
|
|
|
|
|
| |||||||
Continuing operations |
| $ | 6.01 |
|
|
|
| $ | 3.83 |
|
|
|
|
| |||
Discontinued operations |
|
| — |
|
|
|
|
| 0.01 |
|
|
|
|
| |||
|
| $ | 6.01 |
|
|
|
| $ | 3.84 |
|
|
|
|
| |||
Diluted |
|
|
|
|
|
|
|
|
|
| |||||||
Continuing operations |
| $ | 5.71 |
|
|
|
| $ | 3.78 |
|
|
|
|
| |||
Discontinued operations |
|
| — |
|
|
|
|
| 0.01 |
|
|
|
|
| |||
|
| $ | 5.71 |
|
|
|
| $ | 3.79 |
|
|
|
|
| |||
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
| |||||||
Basic |
|
| 101,639 |
|
|
|
|
| 106,929 |
|
|
|
|
| |||
Diluted |
|
| 104,800 |
|
|
|
|
| 110,516 |
|
|
|
|
|
TENET HEALTHCARE CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions) |
| December 31, |
| December 31, | ||||
| 2023 |
| 2022 | |||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 1,228 |
|
| $ | 858 |
|
Accounts receivable |
|
| 2,914 |
|
|
| 2,943 |
|
Inventories of supplies, at cost |
|
| 411 |
|
|
| 405 |
|
Assets held for sale |
|
| 775 |
|
|
| — |
|
Other current assets |
|
| 1,839 |
|
|
| 1,775 |
|
Total current assets |
|
| 7,167 |
|
|
| 5,981 |
|
Investments and other assets |
|
| 3,157 |
|
|
| 3,147 |
|
Deferred income taxes |
|
| 77 |
|
|
| 19 |
|
Property and equipment, at cost, less accumulated depreciation and amortization |
|
| 6,236 |
|
|
| 6,462 |
|
Goodwill |
|
| 10,307 |
|
|
| 10,123 |
|
Other intangible assets, at cost, less accumulated amortization |
|
| 1,368 |
|
|
| 1,424 |
|
Total assets |
| $ | 28,312 |
|
| $ | 27,156 |
|
|
|
|
|
| ||||
LIABILITIES AND EQUITY |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Current portion of long-term debt |
| $ | 120 |
|
| $ | 145 |
|
Accounts payable |
|
| 1,408 |
|
|
| 1,504 |
|
Accrued compensation and benefits |
|
| 930 |
|
|
| 778 |
|
Professional and general liability reserves |
|
| 254 |
|
|
| 255 |
|
Accrued interest payable |
|
| 200 |
|
|
| 213 |
|
Liabilities held for sale |
|
| 69 |
|
|
| — |
|
Other current liabilities |
|
| 1,779 |
|
|
| 1,581 |
|
Total current liabilities |
|
| 4,760 |
|
|
| 4,476 |
|
Long-term debt, net of current portion |
|
| 14,882 |
|
|
| 14,934 |
|
Professional and general liability reserves |
|
| 792 |
|
|
| 790 |
|
Defined benefit plan obligations |
|
| 335 |
|
|
| 331 |
|
Deferred income taxes |
|
| 326 |
|
|
| 217 |
|
Other long-term liabilities |
|
| 1,709 |
|
|
| 1,800 |
|
Total liabilities |
|
| 22,804 |
|
|
| 22,548 |
|
Commitments and contingencies |
|
|
|
| ||||
Redeemable noncontrolling interests in equity of consolidated subsidiaries |
|
| 2,391 |
|
|
| 2,149 |
|
Equity: |
|
|
|
| ||||
Shareholders’ equity: |
|
|
|
| ||||
Common stock |
|
| 8 |
|
|
| 8 |
|
Additional paid-in capital |
|
| 4,834 |
|
|
| 4,778 |
|
Accumulated other comprehensive loss |
|
| (181 | ) |
|
| (181 | ) |
Accumulated deficit |
|
| (192 | ) |
|
| (803 | ) |
Common stock in treasury, at cost |
|
| (2,861 | ) |
|
| (2,660 | ) |
Total shareholders’ equity |
|
| 1,608 |
|
|
| 1,142 |
|
Noncontrolling interests |
|
| 1,509 |
|
|
| 1,317 |
|
Total equity |
|
| 3,117 |
|
|
| 2,459 |
|
Total liabilities and equity |
| $ | 28,312 |
|
| $ | 27,156 |
|
TENET HEALTHCARE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions) |
| Year Ended | ||||||
| December 31, | |||||||
| 2023 |
| 2022 | |||||
Net income |
| $ | 1,311 |
|
| $ | 1,001 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| ||||
Depreciation and amortization |
|
| 870 |
|
|
| 841 |
|
Deferred income tax expense |
|
| 52 |
|
|
| 209 |
|
Stock-based compensation expense |
|
| 66 |
|
|
| 56 |
|
Impairment and restructuring charges, and acquisition-related costs |
|
| 137 |
|
|
| 226 |
|
Litigation and investigation costs |
|
| 47 |
|
|
| 70 |
|
Net gains on sales, consolidation and deconsolidation of facilities |
|
| (23 | ) |
|
| (1 | ) |
Loss from early extinguishment of debt |
|
| 11 |
|
|
| 109 |
|
Equity in earnings of unconsolidated affiliates, net of distributions received |
|
| (13 | ) |
|
| 2 |
|
Amortization of debt discount and debt issuance costs |
|
| 32 |
|
|
| 33 |
|
Pre-tax income from discontinued operations |
|
| — |
|
|
| (1 | ) |
Net gains from the sale of investments and long-lived assets |
|
| (29 | ) |
|
| (117 | ) |
Other items, net |
|
| (4 | ) |
|
| 13 |
|
Changes in cash from operating assets and liabilities: |
|
|
|
| ||||
Accounts receivable |
|
| (29 | ) |
|
| (140 | ) |
Inventories and other current assets |
|
| (139 | ) |
|
| (64 | ) |
Income taxes |
|
| 10 |
|
|
| (26 | ) |
Accounts payable, accrued expenses, contract liabilities and other current liabilities |
|
| 215 |
|
|
| (898 | ) |
Other long-term liabilities |
|
| 14 |
|
|
| (15 | ) |
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
| (154 | ) |
|
| (214 | ) |
Net cash used in operating activities from discontinued operations, excluding income taxes |
|
| — |
|
|
| (1 | ) |
Net cash provided by operating activities |
|
| 2,374 |
|
|
| 1,083 |
|
Cash flows from investing activities: |
|
|
|
| ||||
Purchases of property and equipment |
|
| (751 | ) |
|
| (762 | ) |
Purchases of businesses or joint venture interests, net of cash acquired |
|
| (224 | ) |
|
| (234 | ) |
Proceeds from sales of facilities and other assets |
|
| 71 |
|
|
| 210 |
|
Proceeds from sales of marketable securities and long-term investments |
|
| 50 |
|
|
| 76 |
|
Purchases of marketable securities and equity investments |
|
| (104 | ) |
|
| (92 | ) |
Other items, net |
|
| (11 | ) |
|
| (6 | ) |
Net cash used in investing activities |
|
| (969 | ) |
|
| (808 | ) |
Cash flows from financing activities: |
|
|
|
| ||||
Repayments of borrowings |
|
| (1,542 | ) |
|
| (2,851 | ) |
Proceeds from borrowings |
|
| 1,370 |
|
|
| 2,023 |
|
Repurchases of common stock |
|
| (200 | ) |
|
| (250 | ) |
Debt issuance costs |
|
| (16 | ) |
|
| (24 | ) |
Distributions paid to noncontrolling interests |
|
| (594 | ) |
|
| (560 | ) |
Proceeds from the sale of noncontrolling interests |
|
| 43 |
|
|
| 27 |
|
Purchases of noncontrolling interests |
|
| (167 | ) |
|
| (100 | ) |
Other items, net |
|
| 71 |
|
|
| (46 | ) |
Net cash used in financing activities |
|
| (1,035 | ) |
|
| (1,781 | ) |
Net increase (decrease) in cash and cash equivalents |
|
| 370 |
|
|
| (1,506 | ) |
Cash and cash equivalents at beginning of period |
|
| 858 |
|
|
| 2,364 |
|
Cash and cash equivalents at end of period |
| $ | 1,228 |
|
| $ | 858 |
|
Supplemental disclosures: |
|
|
|
| ||||
Interest paid, net of capitalized interest |
| $ | (882 | ) |
| $ | (848 | ) |
Income tax payments, net |
| $ | (243 | ) |
| $ | (161 | ) |
TENET HEALTHCARE CORPORATION | ||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||
(Unaudited) | ||||||||||||||||
|
| Three Months Ended |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
(Dollars in millions) |
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||||||
Net operating revenues: |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
| $ | 1,077 |
|
| $ | 933 |
|
| $ | 3,865 |
|
| $ | 3,248 |
|
Hospital Operations and Services |
|
| 4,302 |
|
|
| 4,057 |
|
|
| 16,683 |
|
|
| 15,926 |
|
Total |
| $ | 5,379 |
|
| $ | 4,990 |
|
| $ | 20,548 |
|
| $ | 19,174 |
|
|
|
|
|
|
|
|
|
| ||||||||
Equity in earnings of unconsolidated affiliates: |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
| $ | 69 |
|
| $ | 63 |
|
| $ | 218 |
|
| $ | 206 |
|
Hospital Operations and Services |
|
| 4 |
|
|
| 2 |
|
|
| 10 |
|
|
| 10 |
|
Total |
| $ | 73 |
|
| $ | 65 |
|
| $ | 228 |
|
| $ | 216 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjusted EBITDA (including grant income): |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
| $ | 464 |
|
| $ | 407 |
|
| $ | 1,544 |
|
| $ | 1,327 |
|
Hospital Operations and Services |
|
| 548 |
|
|
| 490 |
|
|
| 1,997 |
|
|
| 2,142 |
|
Total |
| $ | 1,012 |
|
| $ | 897 |
|
| $ | 3,541 |
|
| $ | 3,469 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjusted EBITDA margins (including grant income): |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
|
| 43.1 | % |
|
| 43.6 | % |
|
| 39.9 | % |
|
| 40.9 | % |
Hospital Operations and Services |
|
| 12.7 | % |
|
| 12.1 | % |
|
| 12.0 | % |
|
| 13.4 | % |
Total |
|
| 18.8 | % |
|
| 18.0 | % |
|
| 17.2 | % |
|
| 18.1 | % |
|
|
|
|
|
|
|
|
| ||||||||
Adjusted EBITDA margins (excluding grant income): |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
|
| 43.1 | % |
|
| 43.6 | % |
|
| 39.9 | % |
|
| 40.7 | % |
Hospital Operations and Services |
|
| 12.7 | % |
|
| 11.1 | % |
|
| 11.9 | % |
|
| 12.3 | % |
Total |
|
| 18.8 | % |
|
| 17.2 | % |
|
| 17.2 | % |
|
| 17.1 | % |
|
|
|
|
|
|
|
|
| ||||||||
Capital expenditures: |
|
|
|
|
|
|
|
| ||||||||
Ambulatory Care |
| $ | 22 |
|
| $ | 17 |
|
| $ | 80 |
|
| $ | 75 |
|
Hospital Operations and Services |
|
| 186 |
|
|
| 273 |
|
|
| 671 |
|
|
| 687 |
|
Total |
| $ | 208 |
|
| $ | 290 |
|
| $ | 751 |
|
| $ | 762 |
|
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 |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
(Dollars in millions, except per share amounts) |
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 244 |
|
| $ | 102 |
|
| $ | 611 |
|
| $ | 411 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Net income from discontinued operations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
Net income from continuing operations |
|
| 244 |
|
|
| 102 |
|
|
| 611 |
|
|
| 410 |
|
Impairment and restructuring charges, and acquisition-related costs |
|
| (53 | ) |
|
| (129 | ) |
|
| (137 | ) |
|
| (226 | ) |
Litigation and investigation costs |
|
| (19 | ) |
|
| (20 | ) |
|
| (47 | ) |
|
| (70 | ) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 11 |
|
|
| 1 |
|
|
| 23 |
|
|
| 1 |
|
Loss from early extinguishment of debt |
|
| — |
|
|
| — |
|
|
| (11 | ) |
|
| (109 | ) |
Tax and noncontrolling interests impact of above items |
|
| 22 |
|
|
| 37 |
|
|
| 39 |
|
|
| 70 |
|
Adjusted net income available from continuing operations to common shareholders |
| $ | 283 |
|
| $ | 213 |
|
| $ | 744 |
|
| $ | 744 |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted earnings per share from continuing operations |
| $ | 2.30 |
|
| $ | 0.92 |
|
| $ | 5.71 |
|
| $ | 3.78 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Impairment and restructuring charges, and acquisition-related costs |
|
| (0.51 | ) |
|
| (1.21 | ) |
|
| (1.31 | ) |
|
| (2.04 | ) |
Litigation and investigation costs |
|
| (0.18 | ) |
|
| (0.19 | ) |
|
| (0.45 | ) |
|
| (0.63 | ) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 0.10 |
|
|
| 0.01 |
|
|
| 0.22 |
|
|
| 0.01 |
|
Loss from early extinguishment of debt |
|
| — |
|
|
| — |
|
|
| (0.10 | ) |
|
| (0.99 | ) |
Tax and noncontrolling interests impact of above items |
|
| 0.21 |
|
|
| 0.35 |
|
|
| 0.37 |
|
|
| 0.63 |
|
Adjusted diluted earnings per share from continuing operations |
| $ | 2.68 |
|
| $ | 1.96 |
|
| $ | 6.98 |
|
| $ | 6.80 |
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average basic shares outstanding (in thousands) |
|
| 100,956 |
|
|
| 104,519 |
|
|
| 101,639 |
|
|
| 106,929 |
|
Weighted average dilutive shares outstanding (in thousands) |
|
| 104,167 |
|
|
| 106,368 |
|
|
| 104,800 |
|
|
| 110,516 |
|
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 |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
(Dollars in millions) |
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 244 |
|
| $ | 102 |
|
| $ | 611 |
|
| $ | 411 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Net income available to noncontrolling interests |
|
| (212 | ) |
|
| (172 | ) |
|
| (700 | ) |
|
| (590 | ) |
Income from discontinued operations, net of tax |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
Income from continuing operations |
|
| 456 |
|
|
| 274 |
|
|
| 1,311 |
|
|
| 1,000 |
|
Income tax expense |
|
| (63 | ) |
|
| (47 | ) |
|
| (306 | ) |
|
| (344 | ) |
Loss from early extinguishment of debt |
|
| — |
|
|
| — |
|
|
| (11 | ) |
|
| (109 | ) |
Other non-operating income, net |
|
| 11 |
|
|
| 4 |
|
|
| 19 |
|
|
| 10 |
|
Interest expense |
|
| (227 | ) |
|
| (219 | ) |
|
| (901 | ) |
|
| (890 | ) |
Operating income |
|
| 735 |
|
|
| 536 |
|
|
| 2,510 |
|
|
| 2,333 |
|
Litigation and investigation costs |
|
| (19 | ) |
|
| (20 | ) |
|
| (47 | ) |
|
| (70 | ) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 11 |
|
|
| 1 |
|
|
| 23 |
|
|
| 1 |
|
Impairment and restructuring charges, and acquisition-related costs |
|
| (53 | ) |
|
| (129 | ) |
|
| (137 | ) |
|
| (226 | ) |
Depreciation and amortization |
|
| (216 | ) |
|
| (213 | ) |
|
| (870 | ) |
|
| (841 | ) |
Adjusted EBITDA |
| $ | 1,012 |
|
| $ | 897 |
|
| $ | 3,541 |
|
| $ | 3,469 |
|
|
|
|
|
|
|
|
|
| ||||||||
Net operating revenues |
| $ | 5,379 |
|
| $ | 4,990 |
|
| $ | 20,548 |
|
| $ | 19,174 |
|
|
|
|
|
|
|
|
|
| ||||||||
Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues |
|
| 4.5 | % |
|
| 2.0 | % |
|
| 3.0 | % |
|
| 2.1 | % |
|
|
|
|
|
|
|
|
| ||||||||
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) |
|
| 18.8 | % |
|
| 18.0 | % |
|
| 17.2 | % |
|
| 18.1 | % |
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) | ||||||||
| 2023 | |||||||
(Dollars in millions) |
| Q4 |
| YTD | ||||
Net cash provided by operating activities |
| $ | 824 |
|
| $ | 2,374 |
|
Purchases of property and equipment |
|
| (208 | ) |
|
| (751 | ) |
Free cash flow – continuing operations |
| $ | 616 |
|
| $ | 1,623 |
|
|
|
|
|
| ||||
Net cash used in investing activities |
| $ | (333 | ) |
| $ | (969 | ) |
Net cash used in financing activities |
| $ | (317 | ) |
| $ | (1,035 | ) |
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 824 |
|
| $ | 2,374 |
|
Less: |
|
|
|
| ||||
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
| (49 | ) |
|
| (154 | ) |
Adjusted net cash provided by operating activities from continuing operations |
|
| 873 |
|
|
| 2,528 |
|
Purchases of property and equipment |
|
| (208 | ) |
|
| (751 | ) |
Adjusted free cash flow – continuing operations |
| $ | 665 |
|
| $ | 1,777 |
|
|
| 2022 | ||||||
(Dollars in millions) |
| Q4 |
| YTD | ||||
Net cash provided by operating activities |
| $ | 421 |
|
| $ | 1,083 |
|
Purchases of property and equipment |
|
| (290 | ) |
|
| (762 | ) |
Free cash flow - continuing operations |
|
| 131 |
|
|
| 321 |
|
Add back: |
|
|
|
| ||||
Medicare Advance Repayments |
|
| — |
|
|
| 880 |
|
Payroll Tax Deferral Payments |
|
| 128 |
|
|
| 128 |
|
Free cash flow – continuing operations, excluding repayments of Medicare Advances and Deferred Payroll Tax Payments |
| $ | 259 |
|
| $ | 1,329 |
|
|
|
|
|
| ||||
Net cash used in investing activities |
| $ | (306 | ) |
| $ | (808 | ) |
Net cash used in financing activities |
| $ | (465 | ) |
| $ | (1,781 | ) |
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 421 |
|
| $ | 1,083 |
|
Less: |
|
|
|
| ||||
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
| (57 | ) |
|
| (214 | ) |
Net cash used in operating activities from discontinued operations |
|
| — |
|
|
| (1 | ) |
Adjusted net cash provided by operating activities from continuing operations |
|
| 478 |
|
|
| 1,298 |
|
Purchases of property and equipment |
|
| (290 | ) |
|
| (762 | ) |
Adjusted free cash flow – continuing operations |
|
| 188 |
|
|
| 536 |
|
Add back: |
|
|
|
| ||||
Medicare Advance Repayments |
|
| — |
|
|
| 880 |
|
Payroll Tax Deferral Payments |
|
| 128 |
|
|
| 128 |
|
Adjusted free cash flow – continuing operations, excluding repayments of Medicare Advances and Deferred Payroll Tax Payments |
| $ | 316 |
|
| $ | 1,544 |
|
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) | ||||||||||||||||
|
| First Quarter 2024 |
| FY 2024 | ||||||||||||
(Dollars in millions, except per share amounts) |
| Low |
| High |
| Low |
| High | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 1,742 |
|
| $ | 1,872 |
|
| $ | 2,172 |
|
| $ | 2,417 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) |
|
| (20 | ) |
|
| (10 | ) |
|
| (75 | ) |
|
| (25 | ) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 2,150 |
|
|
| 2,250 |
|
|
| 2,150 |
|
|
| 2,250 |
|
Loss from early extinguishment of debt(2) |
|
| (8 | ) |
|
| (8 | ) |
|
| (8 | ) |
|
| (8 | ) |
Tax and noncontrolling interests impact of above items |
|
| (510 | ) |
|
| (530 | ) |
|
| (500 | ) |
|
| (525 | ) |
Adjusted net income available from continuing operations to common shareholders |
| $ | 130 |
|
| $ | 170 |
|
| $ | 605 |
|
| $ | 725 |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted earnings per share from continuing operations |
| $ | 16.59 |
|
| $ | 17.83 |
|
| $ | 20.69 |
|
| $ | 23.02 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
| (0.19 | ) |
|
| (0.10 | ) |
|
| (0.71 | ) |
|
| (0.23 | ) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 20.48 |
|
|
| 21.43 |
|
|
| 20.48 |
|
|
| 21.43 |
|
Loss from early extinguishment of debt |
|
| (0.08 | ) |
|
| (0.08 | ) |
|
| (0.08 | ) |
|
| (0.08 | ) |
Tax and noncontrolling interests impact of above items |
|
| (4.86 | ) |
|
| (5.04 | ) |
|
| (4.76 | ) |
|
| (5.00 | ) |
Adjusted diluted earnings per share from continuing operations |
| $ | 1.24 |
|
| $ | 1.62 |
|
| $ | 5.76 |
|
| $ | 6.90 |
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average basic shares outstanding (in thousands) |
|
| 102,000 |
|
|
| 102,000 |
|
|
| 102,000 |
|
|
| 102,000 |
|
Weighted average dilutive shares outstanding (in thousands) |
|
| 105,000 |
|
|
| 105,000 |
|
|
| 105,000 |
|
|
| 105,000 |
|
|
|
|
|
|
|
|
|
|
(1) | The figures shown represent the Company's estimate for restructuring charges. 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 losses from the early extinguishment of debt because the Company does not believe that it can forecast this item with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to debt expected to be repurchased by the Company with sale proceeds 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) | ||||||||||||||||
|
| First Quarter 2024 |
| FY 2024 | ||||||||||||
(Dollars in millions) |
| Low |
| High |
| Low |
| High | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
| $ | 1,742 |
|
| $ | 1,872 |
|
| $ | 2,172 |
|
| $ | 2,417 |
|
Less: |
|
|
|
|
|
|
|
| ||||||||
Net income available to noncontrolling interests |
|
| (160 | ) |
|
| (170 | ) |
|
| (735 | ) |
|
| (785 | ) |
Income tax expense |
|
| (590 | ) |
|
| (620 | ) |
|
| (840 | ) |
|
| (885 | ) |
Interest expense |
|
| (230 | ) |
|
| (220 | ) |
|
| (835 | ) |
|
| (825 | ) |
Loss from early extinguishment of debt(2) |
|
| (8 | ) |
|
| (8 | ) |
|
| (8 | ) |
|
| (8 | ) |
Other non-operating income, net |
|
| 10 |
|
|
| 20 |
|
|
| 70 |
|
|
| 80 |
|
Net gains on sales, consolidation and deconsolidation of facilities |
|
| 2,150 |
|
|
| 2,250 |
|
|
| 2,150 |
|
|
| 2,250 |
|
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) |
|
| (20 | ) |
|
| (10 | ) |
|
| (75 | ) |
|
| (25 | ) |
Depreciation and amortization |
|
| (210 | ) |
|
| (220 | ) |
|
| (840 | ) |
|
| (870 | ) |
Adjusted EBITDA |
| $ | 800 |
|
| $ | 850 |
|
| $ | 3,285 |
|
| $ | 3,485 |
|
|
|
|
|
|
|
|
|
| ||||||||
Income from continuing operations |
| $ | 1,742 |
|
| $ | 1,872 |
|
| $ | 2,172 |
|
| $ | 2,417 |
|
Net operating revenues |
| $ | 5,000 |
|
| $ | 5,200 |
|
| $ | 19,900 |
|
| $ | 20,300 |
|
Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues |
|
| 34.8 | % |
|
| 36.0 | % |
|
| 10.9 | % |
|
| 11.9 | % |
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) |
|
| 16.0 | % |
|
| 16.3 | % |
|
| 16.5 | % |
|
| 17.2 | % |
|
|
|
|
|
|
|
|
|
(1) | The figures shown represent the Company's estimate for restructuring charges. 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 losses from the early extinguishment of debt because the Company does not believe that it can forecast this item with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to debt expected to be repurchased by the Company with sale proceeds 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 |
| $ | 1,650 |
|
| $ | 2,000 |
|
Purchases of property and equipment |
|
| (775 | ) |
|
| (875 | ) |
Free cash flow – continuing operations |
| $ | 875 |
|
| $ | 1,125 |
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 1,650 |
|
| $ | 2,000 |
|
Less: |
|
|
|
| ||||
Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) |
|
| (75 | ) |
|
| (25 | ) |
Adjusted net cash provided by operating activities – continuing operations |
|
| 1,725 |
|
|
| 2,025 |
|
Purchases of property and equipment |
|
| (775 | ) |
|
| (875 | ) |
Adjusted free cash flow – continuing operations(2) |
| $ | 950 |
|
| $ | 1,150 |
|
|
|
|
|
|
(1) | The figures shown represent the Company's estimate for restructuring payments. 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. |
Last Trade: | US$153.40 |
Daily Change: | -8.58 -5.30 |
Daily Volume: | 2,205,695 |
Market Cap: | US$14.700B |
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