Tenet Healthcare Corporation (NYSE:THC) reported Adjusted EBITDA
of $529 million for the first quarter of 2015, an increase of $142
million, or 37 percent, compared to $387 million in the first
quarter of 2014.
“This was a very good quarter for Tenet, characterized by a
continuation of the strong volume trends from the second half of
2014, exceptional results at Conifer, and EBITDA that exceeded our
expectations,” said Trevor Fetter, president and chief executive
officer. “We also made a number of important steps in the quarter
to improve Tenet’s strategic position. We expect these actions to
enable us to generate faster growth, improve margins and increase
free cash flow. This includes our recently announced joint venture
with United Surgical Partners International and Welsh Carson to
form the nation’s largest network of ambulatory surgery centers and
leading provider of ambulatory solutions to not-for-profit health
systems.”
Discussion of Results (Percentage changes in operating
metrics compare Q1’15 to Q1’14 on a same-hospital basis unless
otherwise noted.)
Tenet generated same-hospital growth in admissions and adjusted
admissions of 4.9 percent and 5.9 percent, respectively, compared
to the first quarter of 2014. Paying admissions increased an even
stronger 6.2 percent, reflecting growth in the number of newly
insured patients. Surgeries increased 7.1 percent and emergency
department visits increased 7.2 percent. The company estimates that
approximately two-thirds of its volume growth in the quarter is
related to investments in service line development and targeted
capital investment.
Tenet increased outpatient visits by 7.6 percent. Approximately
90 percent of this growth was organic. At the end of the quarter,
Tenet operated 215 outpatient facilities, an increase of 26
facilities over the prior year; these metrics include 44 ambulatory
surgery centers and 20 imaging centers that are being contributed
into the joint venture with United Surgical Partners.
The company continues to benefit from declines in uninsured and
charity volumes. In the six states that expanded Medicaid,
same-hospital uninsured plus charity admissions declined by 1,593
admissions, or 49.8 percent, and Medicaid admissions increased by
2,645 admissions, or 9.6 percent. Uninsured plus charity outpatient
visits decreased by 7,280 visits, or 13.2 percent, and Medicaid
outpatient visits grew by 61,979 visits, or 19.5 percent. The six
states are comprised of five states that expanded Medicaid in 2014,
including Arizona, California, Illinois, Massachusetts and
Michigan, and Pennsylvania, which expanded Medicaid in 2015.
Including non-expansion states, same-hospital uninsured plus
charity admissions decreased by 1,743 admissions, or 13.9 percent,
and Medicaid admissions increased by 4,180 admissions, or 8.0
percent. There was a decline in same-hospital charity and uninsured
outpatient visits of 8,760 visits, or 5.3 percent, and an increase
in Medicaid outpatient visits of 78,862 visits, or 15.8
percent.
Tenet’s same-hospital exchange volumes were 4,432 admissions and
35,737 outpatient visits in the first quarter. Compared to the
fourth quarter of 2014, the company drove increases in exchange
admissions and exchange outpatient visits of 17.6 percent and 11.2
percent, respectively.
Net operating revenues, after provision for doubtful accounts,
grew by $502 million, or 12.8 percent, to $4.428 billion, compared
to net operating revenues of $3.926 billion in the first quarter of
2014. The majority of the company’s revenue growth was driven by a
5.9 percent increase in same-hospital adjusted patient admissions,
a 2.7 percent increase in same-hospital net patient revenue per
adjusted patient admission, and a $37 million increase in revenue
at Conifer from non-Tenet hospitals, representing a growth rate of
25.5 percent. The year-over-year comparison also benefitted from
outpatient development activity, the acquisition of two hospitals
and opening of one newly constructed hospital.
Selected operating expenses, defined as the sum of salaries,
wages and benefits, supplies and other operating expenses,
increased by 1.5 percent per adjusted admission in the quarter.
Tenet recorded $6 million in electronic health records
incentives in the first quarter of 2015, a $3 million decrease
compared to $9 million in the first quarter of 2014. Electronic
health record incentive payments are recorded based on the timing
of when the company’s hospitals achieve meaningful use
criteria.
The company’s bad debt expense ratio was 7.6 percent of revenues
before bad debt, a decrease of 120 basis points compared to 8.8
percent in the first quarter of 2014. This improvement reflects the
growth in newly insured patients. Including $174 million and $221
million of charity care write-offs in the first quarters of 2015
and 2014, respectively, Tenet’s uncompensated care expense was $537
million and $601 million, respectively, in these periods. As a
percentage of adjusted revenue, uncompensated care expense
represented 10.8 percent of adjusted revenue in the first quarter
of 2015, down from 13.3 percent in the first quarter of 2014.
Conifer generated $82 million of Adjusted EBITDA, representing a
71 percent increase compared to $48 million in the first quarter of
2014. Including revenue from Tenet, Conifer’s revenue increased by
$57 million, or 20 percent, to $342 million in the first quarter of
2015, compared to revenues of $285 million in the first quarter of
2014.
Tenet generated adjusted net income from continuing operations
in the first quarter of 2015 of $67 million, or $0.67 per diluted
share. This excludes $21 million, or $0.21 per share in after-tax
impairments, restructuring charges, acquisition-related costs,
litigation and investigation costs. The company reported a net loss
from continuing operations in the first quarter of 2014 of $12
million, or $0.12 per diluted share, excluding the comparable items
that totaled $15 million after-tax, or $0.16 per share.
Including the results of both continuing and discontinued
operations, Tenet reported consolidated net income attributable to
common shareholders of $47 million after-tax, or $0.47 per share in
the first quarter of 2015, compared to a net loss of $32 million
after-tax, or $0.33 per share, in the first quarter of 2014.
Cash and cash equivalents were $185 million at March 31, 2015,
compared to $193 million at December 31, 2014. Tenet’s outstanding
borrowings on its credit line were $350 million as of March 31,
2015. Accounts receivable days outstanding were 50.1 days at March
31, 2015 compared to 49.5 days at December 31, 2014.
Outlook for 2015
The company confirmed its existing Outlook for 2015, including
revenue of $17.4 billion to $17.7 billion, adjusted EBITDA of $2.05
billion to $2.15 billion and earnings per share of $1.32 to $2.40
per share. For the second quarter ending June 30, 2015, the company
expects to deliver Adjusted EBITDA of $500 million to $550 million
and earnings per share of $0.15 to $0.64. The outlook for the
second quarter includes $35 million of electronic health record
incentives.
The company’s outlook for 2015 excludes the anticipated impact
of the proposed joint venture with United Surgical Partners
International, the acquisition of Aspen Healthcare, the joint
venture with Baylor Scott & White, and other potential
acquisition and development initiatives. The company intends to
update its outlook for these items as part of its quarterly
earnings releases following the finalization of each of these
transactions.
Management’s Webcast Discussion of First Quarter
Results
Tenet management will discuss the Company’s first quarter 2015
results on a webcast scheduled for 10:00 a.m. ET (9:00 a.m. CT) on
May 5, 2015. Investors can access the webcast through Tenet’s
website at www.tenethealth.com/investors. A set of slides, which
will be referred to on the conference call, is available on the
Quarterly Results section of the Company’s website.
Additional information regarding Tenet’s quarterly results of
operations, including detailed tabular operational data, is
contained in its Form 10-Q report for the three months ended March
31, 2015, which will be filed with the Securities and Exchange
Commission and posted on the Tenet website before the webcast. This
press release includes certain non-GAAP measures, such as Adjusted
EBITDA. A reconciliation of Adjusted EBITDA to net income
attributable to Tenet common shareholders is included in the
financial tables at the end of this release.
Tenet Healthcare Corporation is a national, diversified
healthcare services company with 110,000 employees united around a
common mission: to help people live happier, healthier lives. The
company operates 80 hospitals, 216 outpatient centers, six health
plans and Conifer Health Solutions, a leading provider of
healthcare business process services in the areas of revenue cycle
management, value based care and patient communications. For more
information, please visit www.tenethealth.com.
The terms "THC," "Tenet Healthcare Corporation," "the company,"
"we," "us" or "our" refer to Tenet Healthcare Corporation or one or
more of its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” – that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance and financial condition,
and often contain words such as “expect,” “assume,” “anticipate,”
“intend,” “plan,” “believe,” “seek,” “see,” or “will.”
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Particular uncertainties that
could cause our actual results to be materially different than
those expressed in our 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, 2014 and other filings with the Securities and
Exchange Commission. The information contained in this release is
as of the date hereof. The company assumes no obligation to update
forward-looking statements contained in this release as a result of
new information or future events or developments.
Tenet uses its company website to provide
important information to investors about the company including the
posting of important announcements regarding financial performance
and corporate developments.
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in
millions except per share amounts)
Three Months
Ended March 31, 2015 %
2014 %
Change Net operating revenues: Net operating revenues
before provision for doubtful accounts $ 4,791 $ 4,306 11.3 % Less:
Provision for doubtful accounts 363 380
(4.5 )%
Net operating revenues 4,428 100.0
% 3,926 100.0 % 12.8 %
Operating expenses: Salaries, wages and benefits 2,125 48.0
% 1,921 48.9 % 10.6 % Supplies 687 15.5 % 628 16.0 % 9.4 % Other
operating expenses, net 1,093 24.7 % 999 25.5 % 9.4 % Electronic
health record incentives (6 ) (0.2 ) % (9 ) (0.2 ) % (33.3 ) %
Depreciation and amortization 207 4.7 % 193 4.9 % 7.3 % Impairment
and restructuring charges, and acquisition-related costs
29
0.7 % 21 0.5 % Litigation and investigation costs 3
0.1 % 3 0.1 %
Operating income 290
6.5 % 170 4.3 % Interest expense
(199 ) (182 )
Net income (loss) from continuing
operations, before income taxes 91 (12 )
Income tax benefit (expense) (16 ) 1
Net income (loss) from continuing
operations, before discontinued operations
75 (11 ) Discontinued operations: Loss
from operations (1 ) (8 ) Litigation and investigation costs 3 —
Income tax benefit (expense) (1 ) 3
Net
income (loss) from discontinued operations 1
(5 ) Net income (loss) 76
(16 ) Less: Net income attributable to noncontrolling
interests 29 16
Net income (loss)
attributable to Tenet Healthcare Corporation common
shareholders $ 47 $ (32
) Amounts attributable to Tenet Healthcare
Corporation common shareholders Income (loss) from continuing
operations, net of tax $ 46 $ (27 ) Income (loss) from discontinued
operations, net of tax 1 (5 )
Net income
(loss) attributable to Tenet Healthcare Corporation common
shareholders $ 47 $ (32
) Earnings (loss) per share attributable to Tenet
Healthcare Corporation common shareholders: Basic
Continuing operations $ 0.47 $ (0.28 ) Discontinued operations
0.01 (0.05 ) $ 0.48 $ (0.33 )
Diluted Continuing operations $ 0.46 $ (0.28 ) Discontinued
operations 0.01 (0.05 ) $ 0.47 $ (0.33
)
Weighted average shares and dilutive
securities outstanding (in thousands):
Basic 98,699 97,161 Diluted* 100,872 97,161
*Had we generated income from continuing operations in the three
months ended 2014, the effect of employee stock options, restricted
stock units and deferred compensation units on the diluted shares
calculation would have been an increase of 1,984 shares.
TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE
SHEETS (Unaudited)
March 31,
December 31, (Dollars in millions)
2015
2014 ASSETS Current
assets: Cash and cash equivalents $ 185 $ 193 Accounts
receivable, less allowance for doubtful accounts 2,468 2,404
Inventories of supplies, at cost 268 276 Income tax receivable 2 2
Current portion of deferred income taxes 718 747 Assets held for
sale 337 2 Other current assets 1,146 1,093
Total current assets 5,124 4,717
Investments and other assets 355 384 Deferred income taxes, net of
current portion 66 116 Property and equipment, at cost, less
accumulated depreciation and amortization 7,528 7,733 Goodwill
3,874 3,913 Other intangible assets, at cost, less accumulated
amortization 1,478 1,278
Total
assets $ 18,425 $ 18,141
LIABILITIES AND EQUITY Current
liabilities: Short-term borrowings $ 400 $ — Current portion of
long-term debt 110 112 Accounts payable 1,098 1,179 Accrued
compensation and benefits 671 852 Professional and general
liability reserves 188 189 Accrued interest payable 268 194
Liabilities held for sale 45 — Other current liabilities 954
1,051
Total current liabilities
3,734 3,577 Long-term debt, net of current portion
11,824 11,695 Professional and general liability reserves 524 492
Defined benefit plan obligations 629 633 Other long-term
liabilities 534 558
Total
liabilities 17,245 16,955 Commitments and
contingencies Redeemable noncontrolling interests in equity of
consolidated subsidiaries 208 401
Equity: Shareholders’
equity: Common stock 7 7 Additional paid-in capital 4,751 4,614
Accumulated other comprehensive loss (179 ) (182 ) Accumulated
deficit (1,363 ) (1,410 ) Common stock in treasury, at cost
(2,377 ) (2,378 )
Total shareholders’ equity
839 651 Noncontrolling interests
133 134 Total equity
972 785 Total
liabilities and equity $ 18,425 $
18,141
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended (Dollars in millions)
March 31,
2015 2014
Net income (loss) $ 76 $ (16
) Adjustments to reconcile net income (loss) to net cash
used in operating activities: Depreciation and amortization 207
193 Provision for doubtful accounts 363 380 Deferred income tax
expense (benefit) 12 (3 ) Stock-based compensation expense 15 12
Impairment and restructuring charges, and acquisition-related costs
29 21 Litigation and investigation costs 3 3 Amortization of debt
discount and debt issuance costs 7 7 Pre-tax (income) loss from
discontinued operations (2 ) 8 Other items, net (8 ) (3 )
Changes in cash from operating assets and liabilities:
Accounts receivable (484 ) (557 ) Inventories and other current
assets (74 ) (60 ) Income taxes 8 (2 ) Accounts payable, accrued
expenses and other current liabilities (200 ) 29 Other long-term
liabilities 28 13
Payments for restructuring charges,
acquisition-related costs, and litigation costs and settlements
(33 ) (30 ) Net cash used in
operating activities from discontinued operations, excluding income
taxes (4 ) (14 )
Net cash used in operating activities (57 )
(19 ) Cash flows from investing activities:
Purchases of property and equipment — continuing operations (184 )
(281 ) Purchases of businesses or joint venture interests, net of
cash acquired (11 ) (9 ) Proceeds from sales of marketable
securities, long-term investments and other assets 6 3 Other
long-term assets 2 (4 )
Net cash used in
investing activities (187 ) (291 )
Cash flows from financing activities: Repayments of
borrowings under credit facility (690 ) (665 ) Proceeds from
borrowings under credit facility 820 430 Repayments of other
borrowings (32 ) (24 ) Proceeds from other borrowings 401 600
Deferred debt issuance costs (4 ) (11 ) Distributions paid to
noncontrolling interests (11 ) (11 ) Contributions from
noncontrolling interests 2 13 Purchase of noncontrolling interest
(254 ) — Proceeds from exercise of stock options 7 6 Other items,
net (3 ) —
Net cash provided by financing
activities 236 338
Net increase (decrease) in cash and cash equivalents (8 ) 28 Cash
and cash equivalents at beginning of period 193
113
Cash and cash equivalents at end of period
$ 185 $ 141 Supplemental
disclosures: Interest paid, net of capitalized interest $ (117 ) $
(105 ) Income tax refunds (payments), net $ 1 $ (1 )
TENET HEALTHCARE CORPORATION
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS (Unaudited)
(Dollars in millions except per patient day, per admission and per
visit amounts)
Three Months Ended March 31,
2015 2014
Change Net inpatient revenues $
2,690 $ 2,440 10.2 % Net outpatient revenues $ 1,505 $ 1,346 11.8 %
Number of acute care hospitals (at end of period) 80 77 3 *
Licensed beds (at end of period) 20,826 20,255 2.8 % Average
licensed beds 20,823 20,255 2.8 % Utilization of licensed beds 52.1
% 51.0 % 1.1 % * Patient days – total 975,912 929,164 5.0 %
Adjusted patient days 1,631,597 1,535,545 6.3 % Net inpatient
revenue per patient day $ 2,756 $ 2,626 5.0 % Total admissions
208,333 194,273 7.2 % Adjusted patient admissions 351,893 324,475
8.4 % Charity and uninsured admissions 10,950 12,530 (12.6
)%
Net inpatient revenue per admission $ 12,912 $ 12,560 2.8 % Average
length of stay (days) 4.68 4.78 (2.1
)%
Total surgeries 175,644 162,282 8.2 % Admissions through emergency
department 133,544 122,601 8.9 % Emergency department visits
741,533 665,002 11.5 % Total emergency department admissions and
visits 875,077 787,603 11.1 % Outpatient visits 2,145,344 1,947,687
10.1 % Charity and uninsured outpatient visits 160,271 165,248 (3.0
)%
Net outpatient revenue per visit $ 702 $ 691 1.6 % Net patient
revenue per adjusted patient admission $ 11,921 $ 11,668 2.2 % Net
patient revenue per adjusted patient day $ 2,571 $ 2,466 4.3 %
Net Patient Revenues from: Medicare
21.8 % 22.6 % (0.8
)%
* Medicaid
9.2 % 7.7 % 1.5 % * Managed care
58.8 % 57.8 % 1.0 % * Indemnity, self-pay and other
10.2 % 11.9 % (1.7
)%
* * This change is the difference between the 2015 and 2014
amounts shown
TENET HEALTHCARE CORPORATION
SELECTED STATISTICS – CONTINUING SAME HOSPITALS (Unaudited)
(Dollars in millions except per patient day, per admission and per
visit amounts)
Three Months Ended March 31,
2015 2014
Change Net inpatient revenues $
2,648 $ 2,440 8.5 % Net outpatient revenues $ 1,469 $ 1,346 9.1 %
Number of acute care hospitals (at end of period) 77 77 — *
Licensed beds (at end of period) 20,419 20,255 0.8 % Average
licensed beds 20,416 20,255 0.8 % Utilization of licensed beds 52.2
% 51.0 % 1.2 % * Patient days – total 958,365 929,164 3.1 %
Adjusted patient days 1,599,685 1,535,545 4.2 % Net inpatient
revenue per patient day $ 2,763 $ 2,626 5.2 % Total admissions
203,815 194,273 4.9 % Adjusted patient admissions 343,658 324,475
5.9 % Charity and uninsured admissions 10,787 12,530 (13.9
)%
Net inpatient revenue per admission $ 12,992 $ 12,560 3.4 % Average
length of stay (days) 4.70 4.78 (1.7
)%
Total surgeries 173,871 162,282 7.1 % Admissions through emergency
department 130,241 122,601 6.2 % Emergency department visits
714,034 665,002 7.4 % Total emergency department admissions and
visits 844,275 787,603 7.2 % Outpatient visits 2,095,745 1,947,687
7.6 % Charity and uninsured outpatient visits 156,488 165,248 (5.3
)%
Net outpatient revenue per visit $ 701 $ 691 1.4 % Net patient
revenue per adjusted patient admission $ 11,980 $ 11,668 2.7 % Net
patient revenue per adjusted patient day $ 2,574 $ 2,466 4.4 %
Net Patient Revenues from: Medicare 21.7 % 22.6 %
(0.9
)%
* Medicaid 9.2 % 7.7 % 1.5 % * Managed care 59.0 % 57.8 % 1.2 % *
Indemnity, self-pay and other 10.1 % 11.9 % (1.8
)%
* * This change is the difference between the 2015 and 2014
amounts shown TENET HEALTHCARE CORPORATION SEGMENT
REPORTING (Unaudited)
March 31,
December 31, 2015 2014
Assets Hospital Operations and other $ 17,276 $
17,212 Conifer 1,149 929
Total
$ 18,425 $ 18,141
Three Months Ended March 31, 2015
2014 Capital expenditures:
Hospital Operations and other $ 180 $ 273 Conifer 4
8
Total $ 184 $
281 Net operating revenues: Hospital
Operations and other $ 4,246 $ 3,781 Conifer
Tenet
160 140
Other customers
182 145 Total Conifer revenues
342 285 4,588 4,066 Intercompany eliminations
(160 ) (140 )
Total $ 4,428
$ 3,926 Adjusted EBITDA:
Hospital Operations and other $ 447 $ 339 Conifer 82
48
Total $ 529 $
387 Depreciation and amortization:
Hospital Operations and other $ 196 $ 188 Conifer 11
5
Total $ 207 $
193 Adjusted EBITDA $ 529
$ 387 Depreciation and amortization (207 ) (193 )
Impairments and restructuring charges, and acquisition-related
costs (29 ) (21 ) Litigation and investigation costs (3 ) (3 )
Interest expense (199 ) (182 )
Income (loss) from
continuing operations before income taxes $ 91
$ (12 )
(1) Reconciliation of Adjusted EBITDA
Adjusted EBITDA, a non-GAAP term, is defined by the Company as
net income (loss) attributable to Tenet Healthcare Corporation
common shareholders before (1) the cumulative effect of changes in
accounting principle, net of tax; (2) net loss (income)
attributable to noncontrolling interests; (3) preferred stock
dividends; (4) income (loss) from discontinued operations, net
of tax; (5) income tax benefit (expense); (6) investment earnings
(loss); (7) gain (loss) from early extinguishment of debt; (8)
net gain (loss) on sales of investments; (9) interest expense;
(10) litigation and investigation benefit (costs), net of
insurance recoveries; (11) hurricane insurance recoveries, net of
costs; (12) impairment and restructuring charges and
acquisition-related costs; and (13) depreciation and amortization.
The Company’s Adjusted EBITDA may not be comparable to EBITDA
reported by other companies.
The Company provides this information as a supplement to GAAP
information to assist itself and investors in understanding the
impact of various items on its financial statements, some of which
are recurring or involve cash payments. The Company uses this
information in its analysis of the performance of its business
excluding items that it does not consider as relevant in the
performance of its hospitals in continuing operations. In addition,
from time to time we use this measure to define certain performance
targets under our compensation programs. Adjusted EBITDA is not a
measure of liquidity, but is a measure of operating performance
that management uses in its business as an alternative to net
income (loss) attributable to Tenet Healthcare Corporation common
shareholders. Because Adjusted EBITDA excludes many items that are
included in our financial statements, it does not provide a
complete measure of our operating performance. Accordingly,
investors are encouraged to use GAAP measures when evaluating the
Company’s financial performance.
The reconciliation of net income (loss) attributable to Tenet
Healthcare Corporation common shareholders, the most comparable
GAAP term, to Adjusted EBITDA, is set forth in the first table
below for the three ended March 31, 2015 and 2014.
TENET HEALTHCARE CORPORATION Additional Supplemental
Non-GAAP Disclosures
Table #1 - Reconciliation of Adjusted
EBITDA to Net Income (Loss) Attributable to Tenet Healthcare
Corporation Common Shareholders (Unaudited)
Three Months Ended (Dollars in millions)
March
31, 2015 2014
Net income (loss) attributable to Tenet Healthcare
Corporation common shareholders $ 47 $ (32 ) Less: Net income
attributable to noncontrolling interests (29 ) (16 ) Income (loss)
from discontinued operations, net of tax 1 (5
) Income (loss) from continuing operations 75 (11 ) Income tax
benefit (expense) (16 ) 1 Interest expense (199 )
(182 ) Operating income 290 170 Litigation and investigation costs
(3 ) (3 ) Impairment and restructuring charges, and
acquisition-related costs (29 ) (21 ) Depreciation and amortization
(207 ) (193 )
Adjusted EBITDA $
529 $ 387 Net
operating revenues $ 4,428 $
3,926 Adjusted EBITDA as % of net operating
revenues (Adjusted EBITDA margin) 11.9 %
9.9 %
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP
Disclosures
Table #2 - Reconciliation of Adjusted Free Cash Flow
(Unaudited)
Three Months Ended (Dollars in millions)
March 31, 2015 2014
Net cash used in operating activities $ (57 ) $ (19 ) Less:
Payments for restructuring charges, acquisition-related costs, and
litigation costs and settlements (33 ) (30 ) Net cash used in
operating activities from discontinued operations (4 )
(14 )
Adjusted net cash provided by (used in) operating
activities – continuing operations (20 )
25 Purchases of property and equipment – continuing
operations (184 ) (281 )
Adjusted free cash flow –
continuing operations $ (204 ) $
(256 ) TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #3 -
Reconciliation of Outlook Adjusted EBITDA to Outlook Net
Income Attributable to Tenet Healthcare Corporation Common
Shareholders for the Year Ending December 31, 2015
(Unaudited) (Dollars in millions)
Q2
2015 2015 Low
High Low High Net income
attributable to Tenet Healthcare Corporation common shareholders $
13 $ 65 $ 108 $ 223 Less: Net (income) attributable to
noncontrolling interests (30 ) (25 ) (120 ) (100 ) Loss from
discontinued operations, net of tax (2 ) 0
(5 ) 0 Income from continuing operations $ 45
$ 90 $ 233 $ 323 Income tax expense (15 ) (50 )
(85 ) (165 ) Income from continuing operations,
before income taxes $ 60 $ 140 $ 318 $ 488 Interest expense, net
(210 ) (200 ) (800 ) (770 ) Operating
income $ 270 $ 340 $ 1,118 $ 1,258 Impairment and restructuring
charges, acquisition-related costs and litigation costs and
settlements(a) 0 0 (32 ) (32 ) Depreciation and amortization
(230 ) (210 ) (900 ) (860 )
Adjusted
EBITDA $ 500 $ 550
$ 2,050 $ 2,150
Net operating revenues $ 4,300 $
4,500 $ 17,400 $
17,700 Adjusted EBITDA as % of net
operating revenues (Adjusted EBITDA margin) 11.6
% 12.2 % 11.8 % 12.1
%
(a) Company does not forecast impairment and restructuring
charges, acquisition-related and litigation costs and
settlements
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP
Disclosures
Table #4 - Reconciliation of Outlook Adjusted EBITDA to
Outlook Normalized Income from Continuing Operations for
the Year Ending December 31, 2015 (Unaudited) (Dollars
in millions)
Q2 2015 2015
Low High Low
High Adjusted EBITDA $ 500 $ 550 $ 2,050 $ 2,150
Depreciation and amortization (230 ) (210 ) (900 ) (860 ) Interest
expense, net (210 ) (200 ) (800 ) (770
) Income from continuing operations before income taxes $ 60 $ 140
$ 350 $ 520 Income tax expense (15 ) (50 ) (95
) (175 ) Normalized income from continuing operations $ 45 $
90 $ 255 $ 345 Net (income) attributable to noncontrolling
interests (30 ) (25 ) (120 ) (100 )
Net income attributable to common shareholders
15 65 135
245 Fully diluted weighted average
share outstanding (in millions) 101 101
102 102 Normalized fully diluted earnings
per share – continuing operations $ 0.15 $
0.64 $ 1.32 $ 2.40
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP
Disclosures
Table #5 - Reconciliation of Outlook Adjusted Free Cash Flow
for the Year Ending December 31, 2015 (Unaudited)
(Dollars in millions)
2015 Low
High Net cash provided by operating activities $
1,097 $ 1,207 Less:
Payments for restructuring charges,
acquisition-related costs and litigation costs and
settlements(a)
(33 ) (33 ) Net cash used in operating activities from discontinued
operations (20 ) (10 )
Adjusted net cash provided
by operating activities – continuing operations $ 1,150 $ 1,250
Purchases of property and equipment – continuing operations
(1,000 ) (900 )
Adjusted free cash flow – continuing
operations $ 150 $ 350
(a) Company does not forecast payments related to restructuring
charges, acquisition costs, and litigation costs and
settlements.
Tenet Healthcare CorporationCorporate CommunicationsDonn
Walker, 469-893-2640mediarelations@tenethealth.comorInvestor
RelationsBrendan Strong,
469-893-2387investorrelations@tenethealth.com
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
From Apr 2023 to Apr 2024