Item 2.02. Results of Operations and Financial Condition.
As previously announced, Tenet Healthcare Corporation (the "Company") is
presenting at the virtual J.P. Morgan Healthcare Conference on January 12, 2021,
beginning at 10:00 a.m. Eastern time. A slide presentation of materials to be
presented at the conference will be available on the investor relations section
of the Company's website at www.tenethealth.com/investors. A live webcast of the
Company's presentation and question and answer session with senior management
may also be accessed via that website.
At the conference, the Company will disclose that although its financial
statement close process is not yet fully completed, the Company anticipates its
Adjusted EBITDA excluding stimulus grant income related to the pandemic will
meet or exceed the current Wall Street consensus estimate of its Adjusted EBITDA
for the quarter ended December 31, 2020 published by FactSet of approximately
$773 million.
Also, the Company anticipates that it will recognize approximately $400 million
of grant income related to the Public Health and Social Services Emergency Fund
("Provider Relief Fund" or "PRF") in the quarter ended December 31, 2020. The
PRF grant funds are to be used by providers for lost revenues and COVID-related
costs as defined. In the Company's Form 10-Q for the quarter ended September 30,
2020, the Company disclosed that it anticipated recognizing approximately
$100 million of grant income in the quarter ended December 31, 2020. The
additional grant income of approximately $300 million anticipated to be
recognized by the Company is primarily attributable to the revised guidance in
the "Consolidated Appropriations Act, 2021" enacted in December 2020 for
determining lost revenues and the ability to transfer PRF grant funds received
among subsidiaries within a hospital system that are most impacted by the
pandemic. Substantially all of the $400 million of grant income anticipated to
be recognized by the Company in the fourth quarter of 2020 relates to lost
revenues and COVID-related costs as a result of the pandemic incurred by the
Company prior to the fourth quarter of 2020. The Company estimates its lost
revenues and COVID-related expenses incurred in the twelve months ended
December 31, 2020 as a result of the pandemic exceeded the grant income it
anticipates recognizing in 2020.
Reconciliations of non-GAAP measures, such as Adjusted EBITDA, to the most
comparable GAAP measures and management's reasoning for using them are included
in the Company's earnings press release dated October 20, 2020, which is
available on the investor relations section of the Company's website at
www.tenethealth.com/investors. Investors are encouraged to read these detailed
financial disclosures and reconciliations.
Forward-Looking Statements
This Current Report on Form 8-K contains "forward-looking statements" - that is,
statements that relate to future, not past, events. Forward-looking statements
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 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, 2019, and subsequent
Form 10-Q filings and other filings with the Securities and Exchange Commission.
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