Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Tenet Healthcare Corporation    THC

TENET HEALTHCARE CORPORATION

(THC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Tenet Healthcare : 2ndAnnual Wolfe Research Healthcare Conference - Presentation

11/18/2020 | 09:33am EST

2nd Annual Wolfe Research Healthcare Conference

November 18, 2020

Cautionary Statements

This presentation includes "forward-looking statements." These statements relate to future events, including, but not limited to, statements regarding our liquidity, operating results, future earnings, financial position, operational and strategic initiatives, and developments in legislation, regulation, and the healthcare industry more generally. These forward-looking statements represent management's expectations, based on currently available information, as to the outcome and timing of future events, but, by their nature, address matters that are uncertain, particularly with regard to developments related to COVID-19. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement.

Examples of uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements include, but are not limited to, developments related to COVID-19 and the factors described under "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2019, subsequent Form 10-Q filings and other filings with the Securities and Exchange Commission.

We assume no obligation to update any forward-looking statements or information subsequent to the dates such statements are made. Investors are cautioned not to place undue reliance on our forward-looking statements.

NON-GAAP FINANCIAL INFORMATION

This presentation contains financial measures that are not in accordance with Generally Accepted Accounting Principles

(GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measures and management's reasoning for using these non-GAAP measures are included in our earnings press release dated October 20, 2020. GAAP to non-GAAP reconciliations are also included at the end of this slide presentation.

2

3Q20 Quarterly Highlights

  • Q3 operational execution solid
    • Recovery continuing to progress at all levels
    • Hospital facilities managing well through COVID surges in certain markets
    • USPI demonstrating solid year/year revenue and earnings growth
    • Strategic focus on higher-acuity service lines
      • Actively expanding medical staffs
      • Flexible partnership model attractive
    • Conifer continues to execute well with an unwavering focus on client cash collection
  • Operational Enhancements in Prior Quarters Continuing to Show Benefits Across the System
    • Enhanced analytical decision support tools
    • Continuing to evolve and share best practices on COVID safety and care - staff infection rate ~3.75% vs. CDC avg. of 13.4%
    • Operational cost management tightly controlled

3

3Q20 Quarterly Highlights, continued

  • Proactively Issued $2.5 Billion of 8 Year Unsecured Notes at 6.125%
    • Attractive high-yield market conditions allowed us to:
      • Use proceeds to early retire all of our 2022 maturities
      • Nearest significant debt maturity is June 2023
      • Reduces annual future cash interest expense by ~$50 million
      • Enhances future free cash flow
  • Stimulus Funding
    • CARES Act grants
      • Mitigated but did not solve losses from shutdowns earlier in the year
      • Allowed focus to be on patient vs. financial crisis created by shutdowns
      • Grant guidance from HHS changed dramatically in September, which required us to reverse $70 million of grant income in 3Q20
        • HHS revised guidance again in October, which will be helpful to providers; we estimate the October guidance will result in us recognizing additional grant income of ~$100 million in 4Q20 based on lost revenues through 3Q20
    • Medicare advances provided emergency liquidity bridge
  • Revised terms extend repayment period ~17 months to September 2022 and provide a more reasonable interest rate if

advances are not repaid by September 2022

4

3Q20 Financial Results - Summary

  • Net loss from continuing operations attributable to common shareholders in 3Q20 of $197 million primarily due to the early retirement of debt discussed above compared to a net loss from continuing operations of $227 million in 3Q19
  • Consolidated Adjusted EBITDA in 3Q20 of $621 million excluding a $70 million reversal of COVID stimulus grant income from 2Q20 based on revised guidance from the federal government in September 2020, or $551 million including the grant income reversal, versus $639 million in 3Q19
  • Hospital segment net patient service revenue per adjusted admission increased 17% on a same-hospitalbasis versus 3Q19; Ambulatory segment same-facilitysystem-wide revenue per surgical case increased 13% versus the prior year.
  • Ambulatory segment Adjusted EBITDA growth of 10% compared to 3Q19 excluding the impact of a $13 million reversal of grant income
  • Continued focus on strategic cost reduction measures and corporate efficiencies helped mitigate the impact of COVID surges in certain markets during the quarter, including the impact of higher temporary labor and premium pay
  • Net cash from operations of $593 million in 3Q20 versus $419 million in 3Q19, growth of 42%; Free cash flow in 3Q20 of $507 million, or $331 million excluding $174 million of stimulus grants and $2 million of Medicare advances

received in the quarter, compared to $263 million in 3Q19, growth of 26%

5

2020 Volume Statistics

Initial Outperformance vs. Initial COVID Impact

Recovery

Percent Change from Prior Year

Percent of pre-COVID Levels (b)

Volume Statistics

Jan-Feb

March -

2H March

April

May

June

July

Aug

Sep

Oct

(a)

full month

Admissions

1.1%

(15.2%)

(~25%)

(~33%)

~80%

~90%

~90%

~87%

~88%

~90%

OP visits (c)

5.5%

(22.3%)

(~35%)

(~61%)

~60%

~77%

~86%

~82%

~83%

~86%

ER visits (d)

6.0%

(16.2%)

(~27%)

(~48%)

~65%

~77%

~80%

~76%

~74%

~79%

Hospital

0.4%

(21.1%)

(~38%)

(~55%)

~80%

~90%

~87%

~88%

~92%

~93%

surgeries (e)

USPI surgical

2.0%

(28.6%)

(~53%)

(~80%)

~70%

~90%

~94%

~93%

~96%

~96%

cases

  1. Same-hospitalbasis for hospital statistics; USPI surgical cases are on a same-facilitysystem-wide basis
  2. Same-business-daybasis comparing to same period in prior year
  3. Includes ER visits and hospital outpatient surgeries
  4. Includes both ER inpatient admissions and outpatient ER visits.

(e) Includes both hospital inpatient and hospital outpatient surgeries

6

Adjusted EBITDA with and without Grant Income

In millions

1Q20

2Q20

Jul

Aug

Sep

3Q20

YTD 3Q20

Adjusted EBITDA Excluding Grant Income

Hospital Segment

$342

$18

$112

$75

$110

$297

$657

Ambulatory Segment

156

118

77

76

75

228

502

Conifer Segment

87

73

31

30

35

96

256

Consolidated, Excluding Grant Income

$585

$209

$220

$181

$220

$621

$1,415

Grant Income

Hospital Segment

-

$474

$62

$53

($172)

($57)

$417

Ambulatory Segment

-

37

1

0

(10)

(9)

28

Ambulatory Segment Grants in Equity Earnings

-

12

1

0

(5)

(4)

8

Conifer Segment

-

-

-

-

-

-

-

Consolidated Operations

-

$523

$64

$53

($187)

($70)

$453

Adjusted EBITDA Including Grant Income

Hospital Segment

$342

$492

$174

$128

($62)

$240

$1,074

Ambulatory Segment

156

167

79

76

60

215

538

Conifer Segment

87

73

31

30

35

96

256

Consolidated, Including Grant Income

$585

$732

$284

$234

$33

$551

$1,868

7

Liquidity Update

  • As of November 17, 2020, we had approximately $3.475 billion of cash on hand
    • We had no borrowings outstanding under our $1.9 billion line of credit facility
  • Repayment period for ~$1.5 billion of Medicare advances has been extended by the government through September 2022
    • Expect to repay in full within the allocated time frame, avoiding payment of any interest
  • Application for and receipt of federal stimulus grant monies
    • To date, we have received ~$890 million of federal grant aid earmarked for healthcare providers from stimulus legislation, including the CARES Act
    • We've recognized only $453 million of the funds as grant income so far; an additional ~$100 million related to YTD 3Q20 expected to be recognized in 4Q20 based on revised guidance from HHS

8

3Q20 Cash Analysis (in millions)

CASH BALANCE

($ in millions)

Cash generated by the business in Q3 was $231m excluding

$4,000

cash received from stimulus funding and cash used for non-

$89

routine transactions as listed in the graph below.

$178

$3,514

$5

$3,500

$231

$3,300

$(588)

$(68)

$(34)

$3,000

$(27)

$2,500

6/30/20 Ending

Medicare

Grants

Deferred FICA

Early

Litigation

NCI

USPI

Other Cash

9/30/20 Ending

Cash

Advances

payroll tax

retirement of

Settlement

Repurchases

Acquisitions

Cash

match

debt, including

accrued

interest

9

Questions and Answers

Ron Rittenmeyer

Executive Chairman and CEO

Saum Sutaria

President and COO

Dan Cancelmi

EVP and Chief Financial Officer

Regina Nethery

Vice President - Investor Relations

10

GAAP to Non-GAAP Reconciliations

NON-GAAP FINANCIAL INFORMATION

This presentation contains financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measures and management's reasoning for using these non-GAAP measures are included in our earnings press release dated October 20, 2020. GAAP to non-GAAP reconciliations for those measures used in this slide presentation are also included on the following slides.

11

Tenet Healthcare Corporation

Additional Supplemental Non-GAAP disclosures

Table #1 - Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2020

(Unaudited)

(Dollars in millions except per share amounts)

2020

3rd Qtr

YTD

Net loss attributable to Tenet Healthcare Corporation common shareholders

$

(196)

$

(15)

Net income from discontinued operations

1

-

Net loss from continuing operations

(197)

(15)

Less: Impairment and restructuring charges, and acquisition-related costs

(57)

(166)

Litigation and investigation costs

(9)

(13)

Net gains on sales, consolidation and deconsolidation of facilities

1

4

Loss from early extinguishment of debt

(312)

(316)

Tax impact of above items

112

140

Adjusted net income available from continuing operations to common shareholders

$

68

$

336

Diluted loss per share from continuing operations

$

(1.87)

$

(0.14)

Less: Impairment and restructuring charges, and acquisition-related costs

(0.54)

(1.57)

Litigation and investigation costs

(0.08)

(0.12)

Net gains on sales, consolidation and deconsolidation of facilities

0.01

0.04

Loss from early extinguishment of debt

(2.93)

(2.98)

Tax impact of above items

1.05

1.32

Adjusted diluted earnings per share from continuing operations

$

0.64

$

3.17

Weighted average basic shares outstanding (in thousands)

105,263

104,803

Weighted average dilutive shares outstanding (in thousands)

106,503

105,938

12

Tenet Healthcare Corporation

Additional Supplemental Non-GAAP disclosures

Table #1 - Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2019

(Unaudited)

(Dollars in millions except per share amounts)

2019

3rd Qtr

YTD

Net loss attributable to Tenet Healthcare Corporation common shareholders

$

(226)

$

(212)

Net income from discontinued operations

1

11

Net loss from continuing operations

(227)

(223)

Less: Impairment and restructuring charges, and acquisition-related costs

(46)

(101)

Litigation and investigation costs

(84)

(115)

Net losses on sales, consolidation and deconsolidation of facilities

(1)

(3)

Loss from early extinguishment of debt

(180)

(227)

Loss from divested and closed businesses

(1)

(2)

Noncontrolling interest impact

4

4

Tax impact of above items

14

23

Adjusted net income available from continuing operations to common shareholders

$

67

$

198

Diluted loss per share from continuing operations

$

(2.19)

$

(2.16)

Less: Impairment and restructuring charges, and acquisition-related costs

(0.44)

(0.97)

Litigation and investigation costs

(0.80)

(1.10)

Net losses on sales, consolidation and deconsolidation of facilities

(0.01)

(0.03)

Loss from early extinguishment of debt

(1.72)

(2.17)

Loss from divested and closed businesses

(0.01)

(0.02)

Noncontrolling interest impact

0.04

0.04

Tax impact of above items

0.13

0.22

Adjusted diluted earnings per share from continuing operations

$

0.64

$

1.89

Weighted average basic shares outstanding (in thousands)

103,558

103,181

13

Weighted average dilutive shares outstanding (in thousands)

104,582

104,584

Tenet Healthcare Corporation

Additional Supplemental Non-GAAP disclosures

Table #2 - Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation

Common Shareholders to Adjusted EBITDA for 2020

(Unaudited)

(Dollars in millions)

2020

3rd Qtr

YTD

Net loss attributable to Tenet Healthcare Corporation common shareholders

$

(196)

$

(15)

Less: Net income available to noncontrolling interests

(90)

(237)

Income from discontinued operations, net of tax

1

-

(Loss) income from continuing operations

(107)

222

Income tax benefit

197

227

Loss from early extinguishment of debt

(312)

(316)

Other non-operating income, net

-

3

Interest expense

(263)

(761)

Operating income

271

1,069

Litigation and investigation costs

(9)

(13)

Net gains on sales, consolidation and deconsolidation of facilities

1

4

Impairment and restructuring charges, and acquisition-related costs

(57)

(166)

Depreciation and amortization

(215)

(624)

Adjusted EBITDA

$

551

$

1,868

Net operating revenues

$

4,557

$

12,725

Net loss attributable to Tenet Healthcare Corporation common shareholders as a % of net

(4.3)%

(0.1)%

operating revenues

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

12.1 %

14.7 %

14

Tenet Healthcare Corporation

Additional Supplemental Non-GAAP disclosures

Table #2 - Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation

Common Shareholders to Adjusted EBITDA for 2019

(Unaudited)

(Dollars in millions)

2019

3rd Qtr

YTD

Net loss attributable to Tenet Healthcare Corporation common shareholders

$

(226)

$

(212)

Less: Net income available to noncontrolling interests

(80)

(259)

Income from discontinued operations, net of tax

1

11

(Loss) income from continuing operations

(147)

36

Income tax expense

(22)

(75)

Loss from early extinguishment of debt

(180)

(227)

Other non-operating expense, net

(3)

(3)

Interest expense

(244)

(742)

Operating income

302

1,083

Litigation and investigation costs

(84)

(115)

Net losses on sales, consolidation and deconsolidation of facilities

(1)

(3)

Impairment and restructuring charges, and acquisition-related costs

(46)

(101)

Depreciation and amortization

(205)

(627)

Loss from divested and closed businesses

(1)

(2)

Adjusted EBITDA

$

639

$

1,931

Net operating revenues

$

4,568

$

13,673

Less: Net operating revenues from health plans

-

1

Adjusted net operating revenues

$

4,568

$

13,672

Net loss attributable to Tenet Healthcare Corporation common shareholders as a % of net

(4.9)%

(1.6)%

operating revenues

Adjusted EBITDA as a % of adjusted net operating revenues (Adjusted EBITDA margin)

14.0 %

14.1 %

15

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 for 2020

(Unaudited)

(Dollars in millions)

Net cash provided by operating activities

Purchases of property and equipment

Free cash flow

Net cash used in investing activities

Net cash (used in) provided by financing activities

Net cash provided by operating activities

Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

Net cash used in operating activities from discontinued operations

Adjusted net cash provided by operating activities from continuing operations

Purchases of property and equipment

Adjusted free cash flow - continuing operations

2020

3rd Qtr

YTD

$

593

$

2,961

(86)(374)

$

507

$

2,587

$

(117)

$

(406)

$

(690)

$

483

$

593

$

2,961

(138)

(252)

(1)

(1)

732

3,214

(86)

(374)

$

646

$

2,840

16

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 for 2019

(Unaudited)

(Dollars in millions)

Net cash provided by operating activities

Purchases of property and equipment

Free cash flow

Net cash used in investing activities

Net cash used in financing activities

Net cash provided by operating activities

Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

Net cash provided by (used in) operating activities from discontinued operations

Adjusted net cash provided by operating activities from continuing operations

Purchases of property and equipment

Adjusted free cash flow - continuing operations

2019

3rd Qtr

YTD

$

419

$

713

(156)

(492)

$

263

$

221

$

(123)

$

(426)

$

(231)

$

(384)

$

419

$

713

(56)

(136)

1

(4)

474

853

(156)

(492)

$

318

$

361

17

Disclaimer

Tenet Healthcare Corporation published this content on 18 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2020 14:32:03 UTC


© Publicnow 2020
All news about TENET HEALTHCARE CORPORATION
01/14TENET HEALTHCARE : Raymond James Adjusts Tenet Healthcare's Price Target to $60 ..
MT
01/14TENET HEALTHCARE : to Report its Fourth Quarter Results on February 9
BU
01/12TENET HEALTHCARE : Presentation PDF 1.40 MB
PU
01/11TENET HEALTHCARE : Expects Adjusted Ebitda To Meet Or Exceed Street Estimates
MT
01/11TENET HEALTHCARE CORP : Results of Operations and Financial Condition (form 8-K)
AQ
01/08TENET HEALTHCARE CORP : Change in Directors or Principal Officers (form 8-K)
AQ
01/08TENET HEALTHCARE : Appoints Cecil Haney to its Board of Directors
BU
01/08TENET HEALTHCARE : Credit Suisse Adjusts Tenet Healthcare's Price Target to $52 ..
MT
01/08TENET HEALTHCARE : Jefferies Upgrades Tenet Healthcare to Buy From Hold; Price T..
MT
01/07OPTIONS : Option Implied Volatility for Hospital Groups
MT
More news
Financials (USD)
Sales 2020 17 669 M - -
Net income 2020 133 M - -
Net Debt 2020 13 717 M - -
P/E ratio 2020 37,8x
Yield 2020 -
Capitalization 4 999 M 4 999 M -
EV / Sales 2020 1,06x
EV / Sales 2021 1,01x
Nbr of Employees 101 104
Free-Float 67,3%
Chart TENET HEALTHCARE CORPORATION
Duration : Period :
Tenet Healthcare Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TENET HEALTHCARE CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 48,93 $
Last Close Price 47,38 $
Spread / Highest target 45,6%
Spread / Average Target 3,28%
Spread / Lowest Target -57,8%
EPS Revisions
Managers and Directors
NameTitle
Ronald A. Rittenmeyer Executive Chairman & Chief Executive Officer
Saumya Sutaria President, Chief Operating Officer & Director
Daniel J. Cancelmi Chief Financial Officer
Paola Arbour Chief Information Officer & Senior Vice President
Joseph Robert Kerrey Lead Independent Director
Sector and Competitors