($ in millions, except per share results) |
Q2'22
|
Q2'21
|
YTD Q2'22
|
YTD Q2'21
|
Net income available to Tenet common shareholders from continuing operations | $38 | $120 | $177 | $217 |
Net income available to Tenet common shareholders from continuing operations per diluted share | $0.35 | $1.11 | $1.63 | $2.00 |
Adjusted EBITDA excluding grant income | $749 | $810 | $1,631 | $1,550 |
Adjusted EBITDA including grant income | $843 | $834 | $1,731 | $1,611 |
Adjusted diluted earnings per share from continuing operations | $1.50 | $1.59 | $3.38 | $2.89 |
The table above as well as tables and discussions throughout this earnings release include certain financial measures that are not in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-3 included at the end of this earnings release. Management's reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release. |
Ambulatory segment results ($ in millions)
| Q2'22 | Q2'21 | YTD Q2'22 | YTD Q2'21 | ||||
Revenues | ||||||||
Net operating revenues | $771 | $664 | $1,509 | $1,310 | ||||
Grant income excluding amount in equity earnings | $2 | $15 | $4 | $22 | ||||
Grant income in equity earnings | $- | $5 | $- | $11 | ||||
Same-facility system-wide net patient service revenues (a) | $1,503 | $1,462 | $2,942 | $2,780 | ||||
Volume Changes versus the Prior-Year Period | ||||||||
Same-facility system-wide surgical cases (a) | (0.9) | % | 68.2 | % | 3.3 | % | 29.1 | % |
Same-facility system-wide surgical cases on same-business day basis (a) | (0.9) | % | 68.2 | % | 2.4 | % | 30.1 | % |
Adjusted EBITDA, Margins and Noncontrolling Interest (NCI) | ||||||||
Adjusted EBITDA excluding grant income | $317 | $275 | $597 | $519 | ||||
Adjusted EBITDA including grant income | $319 | $295 | $601 | $552 | ||||
Adjusted EBITDA margin excluding grant income | 41.1 | % | 41.4 | % | 39.6 | % | 39.6 | % |
Adjusted EBITDA margin including grant income | 41.4 | % | 44.4 | % | 39.8 | % | 42.1 | % |
Adjusted EBITDA less facility-level NCI excluding grant income | $209 | $176 | $395 | $336 | ||||
Adjusted EBITDA less facility-level NCI | $210 | $187 | $397 | $356 | ||||
Adjusted EBITDA less total NCI excluding grant income | $204 | $172 | $386 | $328 | ||||
Adjusted EBITDA less total NCI | $205 | $182 | $388 | $347 |
Hospital segment results ($ in millions)
| Q2'22 | Q2'21 | YTD Q2'22 | YTD Q2'21 | ||||
Revenues | ||||||||
Net operating revenues (prior to inter-segment eliminations) | $3,645 | $4,095 | $7,443 | $8,042 | ||||
Grant income | $92 | $4 | $96 | $28 | ||||
Same-hospital net patient service revenues (b) | $3,314 | $3,507 | $6,792 | $6,899 | ||||
Same-Hospital Volume Changes versus the Prior-Year Period (b) | ||||||||
Admissions | (8.1) | % | 13.8 | % | (6.4) | % | 0.4 | % |
Adjusted admissions (c) | (5.3) | % | 23.6 | % | (3.5) | % | 2.6 | % |
Outpatient visits (including outpatient ER visits) | (10.0) | % | 71.1 | % | (4.7) | % | 19.7 | % |
Emergency Room visits (inpatient and outpatient) | 3.8 | % | 35.2 | % | 8.5 | % | (2.1) | % |
Hospital surgeries | (8.0) | % | 36.5 | % | (4.3) | % | 13.1 | % |
Adjusted EBITDA | ||||||||
Adjusted EBITDA excluding grant income | $339 | $445 | $849 | $855 | ||||
Adjusted EBITDA including grant income | $431 | $449 | $945 | $883 | ||||
Adjusted EBITDA margin | ||||||||
Adjusted EBITDA margin excluding grant income | 9.3 | % | 10.9 | % | 11.4 | % | 10.6 | % |
Adjusted EBITDA margin including grant income | 11.8 | % | 11.0 | % | 12.7 | % | 11.0 | % |
Conifer segment results ($ in millions) | Q2'22 | Q2'21 | YTD Q2'22 | YTD Q2'21 | ||||
Net operating revenues | $333 | $319 | $657 | $629 | ||||
Adjusted EBITDA | $93 | $90 | $185 | $176 | ||||
Adjusted EBITDA margin | 27.9 | % | 28.2 | % | 28.2 | % | 28.0 | % |
($ in millions) | June 30, 2022 | March 31, 2022 | December 31, 2021 |
Cash and cash equivalents | $1,351 | $1,405 | $2,364 |
Accounts receivable days outstanding | 59.8 | 58.9 | 57.0 |
Line-of-credit borrowings outstanding | - | - | - |
Ratio of net debt plus Medicare advances liability to Adjusted EBITDA (d) | 3.92 | 3.93 | 4.07 |
($ in millions) | Q2'22 | Q2'21 | YTD Q2'22 | YTD Q2'21 |
Net cash provided by operating activities | $119 | $245 | $347 | $779 |
Capital expenditures | ($152) | ($122) | ($307) | ($243) |
Free cash flow | ($33) | $123 | $40 | $536 |
Adjusted free cash flow | $9 | $157 | $138 | $621 |
Net cash used in investing activities | ($140) | ($50) | ($200) | ($195) |
Net cash used in financing activities | ($33) | ($142) | ($1,160) | ($836) |
CONSOLIDATED ($ in millions except per share amounts)
|
FY 2022 Outlook
|
Q3'22 Outlook
|
Net operating revenues |
$19,000 to $19,400
|
$4,700 to $4,900
|
Income from continuing operations available to Tenet common stockholders
|
$371 to $546
|
$100 to $135
|
Adjusted EBITDA |
$3,375 to $3,575
|
$775 to $825
|
Adjusted EBITDA margin |
17.8% to 18.4%
|
16.5% to 16.8%
|
Diluted income per common share from continuing operations |
$3.35 to $4.91
|
$0.91 to $1.23
|
Adjusted net income from continuing operations |
$645 to $780
|
$125 to $150
|
Adjusted diluted earnings per share from continuing operations |
$5.80 to $7.00
|
$1.14 to $1.36
|
Equity in earnings of unconsolidated affiliates | $230 to $250 | $55 to $65 |
Depreciation and amortization |
$840 to $860
|
$205 to $215
|
Interest expense |
$880 to $890
|
$215 to $225
|
Net income available to NCI |
$590 to $630
|
$125 to $145
|
Weighted average diluted common shares |
~112 million
|
~110 million
|
NCI cash distributions | $550 to $590 | |
Effective tax rate (e) | ~24% | |
Net cash provided by operating activities |
$1,100 to $1,400
| |
Adjusted net cash provided by operating activities |
$1,300 to $1,550
| |
Capital expenditures |
$725 to $775
| |
Free cash flow |
$375 to $625
| |
Free cash flow excluding repayments of Medicare Advance Payments and Deferred Payroll Tax Payments |
$1,383 to $1,633
| |
Adjusted free cash flow - continuing operations |
$575 to $775
| |
Adjusted free cash flow - continuing operations, excluding repayments of Medicare Advance Payments and Deferred Payroll Tax Payments |
$1,583 to $1,783
|
Ambulatory Segment ($ in millions)
|
FY 2022 Outlook
|
Net operating revenues | $3,275 to $3,375 |
Adjusted EBITDA | $1,375 to $1,425 |
Total NCI (Facility level and Baylor University Medical Center) | $490 to $515 |
Adjusted EBITDA less total NCI | $885 to $910 |
Changes versus prior year (f): | |
Surgical cases volumes | Up 3% to 4% |
Net revenues per surgical case | Up 2.5% to 3.5% |
Hospital Segment ($ in millions)
|
FY 2022 Outlook
|
Net operating revenues (prior to inter-segment eliminations) | $14,885 to $15,135 |
Adjusted EBITDA | $1,640 to $1,780 |
NCI | $30 to $40 |
Changes versus prior year (f): | |
Inpatient admissions | (6)% to (4)% |
Adjusted admissions | (4)% to (2)% |
Conifer Segment ($ in millions)
|
FY 2022 Outlook
|
Net operating revenues | $1,325 to $1,375 |
Adjusted EBITDA | $360 to $370 |
NCI | $70 to $75 |
Investor Contact |
Media Contact
|
Will McDowell | Lesley Bogdanow |
469-893-2387 | 469-893-2640 |
william.mcdowell@tenethealth.com |
mediarelations@tenethealth.com
|
Description | Page |
Consolidated Statements of Operations |
14 |
Consolidated Balance Sheets |
16 |
Consolidated Statements of Cash Flow |
17 |
Segment Reporting |
18 |
Table #1 - Reconciliations of Net Income to Adjusted Net Income |
19 |
Table #2 - Reconciliations of Net Income to Adjusted EBITDA |
20 |
Table #3 - Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow |
21 |
Table #4 - Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA
| 22 |
Table #5 - Reconciliations of Outlook Net Income to Outlook Adjusted Net Income |
23 |
Table #6 - Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow |
24 |
(Dollars in millions except per share amounts) | Three Months Ended June 30, | |||||||||
2022 | % | 2021 | % | Change | ||||||
Net operating revenues | $ | 4,638 | 100.0 | % | $ | 4,954 | 100.0 | % | (6.4) | % |
Grant income | 94 | 2.0 | % | 19 | 0.4 | % | 394.7 | % | ||
Equity in earnings of unconsolidated affiliates | 54 | 1.2 | % | 54 | 1.1 | % | 0.0 | % | ||
Operating expenses: | ||||||||||
Salaries, wages and benefits | 2,126 | 45.8 | % | 2,280 | 46.0 | % | (6.8) | % | ||
Supplies | 811 | 17.5 | % | 859 | 17.4 | % | (5.6) | % | ||
Other operating expenses, net | 1,006 | 21.7 | % | 1,054 | 21.3 | % | (4.6) | % | ||
Depreciation and amortization | 216 | 4.7 | % | 221 | 4.5 | % | ||||
Impairment and restructuring charges, and acquisition-related costs | 57 | 1.2 | % | 20 | 0.4 | % | ||||
Litigation and investigation costs | 18 | 0.4 | % | 22 | 0.4 | % | ||||
Net gains on sales, consolidation and deconsolidation of facilities | (1) | - | % | (15) | (0.3) | % | ||||
Operating income | 553 | 11.9 | % | 586 | 11.8 | % | ||||
Interest expense | (222) | (235) | ||||||||
Other non-operating expense, net | - | (1) | ||||||||
Loss from early extinguishment of debt | (66) | (31) | ||||||||
Income from continuing operations, before income taxes | 265 | 319 | ||||||||
Income tax expense | (86) | (61) | ||||||||
Income from continuing operations, before discontinued operations | 179 | 258 | ||||||||
Discontinued operations: | ||||||||||
Loss from operations | - | (1) | ||||||||
Loss from discontinued operations | - | (1) | ||||||||
Net income | 179 | 257 | ||||||||
Less: Net income available to noncontrolling interests | 141 | 138 | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 38 | $ | 119 | ||||||
Amounts available to Tenet Healthcare Corporation common shareholders
| ||||||||||
Income from continuing operations, net of tax | $ | 38 | $ | 120 | ||||||
Loss from discontinued operations, net of tax | - | (1) | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 38 | $ | 119 | ||||||
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders: | ||||||||||
Basic | ||||||||||
Continuing operations | $ | 0.35 | $ | 1.12 | ||||||
Discontinued operations | - | (0.01) | ||||||||
$ | 0.35 | $ | 1.11 | |||||||
Diluted | ||||||||||
Continuing operations | $ | 0.35 | $ | 1.11 | ||||||
Discontinued operations | - | (0.01) | ||||||||
$ | 0.35 | $ | 1.10 | |||||||
Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||
Basic | 107,790 | 106,822 | ||||||||
Diluted | 108,750 | 108,569 |
(Dollars in millions except per share amounts) | Six Months Ended June 30, | |||||||||
2022 | % | 2021 | % | Change | ||||||
Net operating revenues | $ | 9,383 | 100.0 | % | $ | 9,735 | 100.0 | % | (3.6) | % |
Grant income | 100 | 1.1 | % | 50 | 0.5 | % | 100.0 | % | ||
Equity in earnings of unconsolidated affiliates | 100 | 1.1 | % | 96 | 1.0 | % | 4.2 | % | ||
Operating expenses: | ||||||||||
Salaries, wages and benefits | 4,308 | 45.9 | % | 4,481 | 46.0 | % | (3.9) | % | ||
Supplies | 1,596 | 17.0 | % | 1,663 | 17.1 | % | (4.0) | % | ||
Other operating expenses, net | 1,948 | 20.8 | % | 2,126 | 21.8 | % | (8.4) | % | ||
Depreciation and amortization | 419 | 4.5 | % | 445 | 4.6 | % | ||||
Impairment and restructuring charges, and acquisition-related costs | 73 | 0.8 | % | 40 | 0.4 | % | ||||
Litigation and investigation costs | 38 | 0.4 | % | 35 | 0.4 | % | ||||
Net gains on sales, consolidation and deconsolidation of facilities | - | - | % | (15) | (0.2) | % | ||||
Operating income | 1,201 | 12.8 | % | 1,106 | 11.4 | % | ||||
Interest expense | (449) | (475) | ||||||||
Other non-operating income, net | - | 9 | ||||||||
Loss from early extinguishment of debt | (109) | (54) | ||||||||
Income from continuing operations, before income taxes | 643 | 586 | ||||||||
Income tax expense | (185) | (106) | ||||||||
Income from continuing operations, before discontinued operations | 458 | 480 | ||||||||
Discontinued operations: | ||||||||||
Income (loss) from operations | 1 | (1) | ||||||||
Income (loss) from discontinued operations | 1 | (1) | ||||||||
Net income | 459 | 479 | ||||||||
Less: Net income available to noncontrolling interests | 281 | 263 | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders
| $ | 178 | $ | 216 | ||||||
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders | ||||||||||
Income from continuing operations, net of tax | $ | 177 | $ | 217 | ||||||
Income (loss) from discontinued operations, net of tax | 1 | (1) | ||||||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 178 | $ | 216 | ||||||
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders: | ||||||||||
Basic | ||||||||||
Continuing operations | $ | 1.64 | $ | 2.04 | ||||||
Discontinued operations | 0.01 | (0.01) | ||||||||
$ | 1.65 | $ | 2.03 | |||||||
Diluted | ||||||||||
Continuing operations | $ | 1.63 | $ | 2.00 | ||||||
Discontinued operations | 0.01 | (0.01) | ||||||||
$ | 1.64 | $ | 1.99 | |||||||
Weighted average shares and dilutive securities outstanding
(in thousands):
| ||||||||||
Basic | 107,636 | 106,566 | ||||||||
Diluted | 114,054 | 108,317 |
June 30, | December 31, | |||
(Dollars in millions) | 2022 | 2021 | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 1,351 | $ | 2,364 |
Accounts receivable | 2,840 | 2,770 | ||
Inventories of supplies, at cost | 387 | 384 | ||
Income tax receivable | 18 | - | ||
Other current assets | 1,468 | 1,557 | ||
Total current assets
| 6,064 | 7,075 | ||
Investments and other assets | 3,297 | 3,254 | ||
Deferred income taxes | 60 | 65 | ||
Property and equipment, at cost, less accumulated depreciation and amortization
| 6,259 | 6,427 | ||
Goodwill | 9,479 | 9,261 | ||
Other intangible assets, at cost, less accumulated amortization
| 1,462 | 1,497 | ||
Total assets
| $ | 26,621 | $ | 27,579 |
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Current portion of long-term debt | $ | 125 | $ | 135 |
Accounts payable | 1,083 | 1,300 | ||
Accrued compensation and benefits | 811 | 896 | ||
Professional and general liability reserves | 272 | 254 | ||
Accrued interest payable | 221 | 203 | ||
Contract liabilities | 474 | 959 | ||
Other current liabilities | 1,382 | 1,362 | ||
Total current liabilities
| 4,368 | 5,109 | ||
Long-term debt, net of current portion | 14,947 | 15,511 | ||
Professional and general liability reserves | 789 | 791 | ||
Defined benefit plan obligations | 407 | 421 | ||
Deferred income taxes | 161 | 36 | ||
Contract liabilities - long-term | 14 | 15 | ||
Other long-term liabilities | 1,824 | 1,439 | ||
Total liabilities
| 22,510 | 23,322 | ||
Commitments and contingencies | ||||
Redeemable noncontrolling interests in equity of consolidated subsidiaries
| 1,997 | 2,203 | ||
Equity: | ||||
Shareholders' equity: | ||||
Common stock | 8 | 8 | ||
Additional paid-in capital | 4,756 | 4,877 | ||
Accumulated other comprehensive loss | (231) | (233) | ||
Accumulated deficit | (1,036) | (1,214) | ||
Common stock in treasury, at cost | (2,410) | (2,410) | ||
Total shareholders' equity | 1,087 | 1,028 | ||
Noncontrolling interests
| 1,027 | 1,026 | ||
Total equity
| 2,114 | 2,054 | ||
Total liabilities and equity
| $ | 26,621 | $ | 27,579 |
Six Months Ended | ||||
(Dollars in millions) | June 30, | |||
2022 | 2021 | |||
Net income | $ | 459 | $ | 479 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 419 | 445 | ||
Deferred income tax expense | 132 | 48 | ||
Stock-based compensation expense | 34 | 30 | ||
Impairment and restructuring charges, and acquisition-related costs | 73 | 40 | ||
Litigation and investigation costs | 38 | 35 | ||
Net gains on sales, consolidation and deconsolidation of facilities | - | (15) | ||
Loss from early extinguishment of debt | 109 | 54 | ||
Equity in earnings of unconsolidated affiliates, net of distributions received | 18 | 10 | ||
Amortization of debt discount and debt issuance costs | 15 | 17 | ||
Pre-tax (income) loss from discontinued operations | (1) | 1 | ||
Other items, net | (59) | (22) | ||
Changes in cash from operating assets and liabilities: | ||||
Accounts receivable | (74) | (101) | ||
Inventories and other current assets | 173 | 56 | ||
Income taxes | (86) | 25 | ||
Accounts payable, accrued expenses, contract liabilities and other current liabilities | (764) | (232) | ||
Other long-term liabilities | (41) | (6) | ||
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (98) | (85) | ||
Net cash provided by operating activities | 347 | 779 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (307) | (243) | ||
Purchases of businesses or joint venture interests, net of cash acquired | (66) | (64) | ||
Proceeds from sales of facilities and other assets | 209 | 124 | ||
Proceeds from sales of marketable securities, long-term investments and other assets | 9 | 18 | ||
Purchases of marketable securities and equity investments | (41) | (19) | ||
Other items, net | (4) | (11) | ||
Net cash used in investing activities | (200) | (195) | ||
Cash flows from financing activities: | ||||
Repayments of other borrowings | (2,744) | (2,012) | ||
Proceeds from other borrowings | 2,013 | 1,409 | ||
Debt issuance costs | (24) | (15) | ||
Distributions paid to noncontrolling interests | (310) | (212) | ||
Proceeds from sale of noncontrolling interests | 9 | 12 | ||
Purchases of noncontrolling interests | (29) | (5) | ||
Medicare advances and grants received by unconsolidated affiliates, net of recoupment | - | 6 | ||
Other items, net | (75) | (19) | ||
Net cash used in financing activities | (1,160) | (836) | ||
Net decrease in cash and cash equivalents | (1,013) | (252) | ||
Cash and cash equivalents at beginning of period | 2,364 | 2,446 | ||
Cash and cash equivalents at end of period | $ | 1,351 | $ | 2,194 |
Supplemental disclosures: | ||||
Interest paid, net of capitalized interest | $ | (416) | $ | (486) |
Income tax payments, net | $ | (140) | $ | (34) |
Three Months Ended | Six Months Ended | |||||||
(Dollars in millions) | June 30, | June 30, | ||||||
2022 | 2021 | 2022 | 2021 | |||||
Net operating revenues (1) :
| ||||||||
Ambulatory Care | $ | 771 | $ | 664 | $ | 1,509 | $ | 1,310 |
Hospital Operations and other (prior to inter-segment eliminations) | 3,645 | 4,095 | 7,443 | 8,042 | ||||
Conifer | ||||||||
Tenet | 111 | 124 | 226 | 246 | ||||
Other clients | 222 | 195 | 431 | 383 | ||||
Total Conifer revenues | 333 | 319 | 657 | 629 | ||||
Inter-segment eliminations | (111) | (124) | (226) | (246) | ||||
Total | $ | 4,638 | $ | 4,954 | $ | 9,383 | $ | 9,735 |
Equity in earnings of unconsolidated affiliates: | ||||||||
Ambulatory Care | $ | 52 | $ | 49 | $ | 94 | $ | 87 |
Hospital Operations and other | 2 | 5 | 6 | 9 | ||||
Total | $ | 54 | $ | 54 | $ | 100 | $ | 96 |
Adjusted EBITDA (including grant income): | ||||||||
Ambulatory Care | $ | 319 | $ | 295 | $ | 601 | $ | 552 |
Hospital Operations and other | 431 | 449 | 945 | 883 | ||||
Conifer | 93 | 90 | 185 | 176 | ||||
Total | $ | 843 | $ | 834 | $ | 1,731 | $ | 1,611 |
Adjusted EBITDA margins (including grant income): | ||||||||
Ambulatory Care | 41.4 | % | 44.4 | % | 39.8 | % | 42.1 | % |
Hospital Operations and other | 11.8 | % | 11.0 | % | 12.7 | % | 11.0 | % |
Conifer | 27.9 | % | 28.2 | % | 28.2 | % | 28.0 | % |
Total | 18.2 | % | 16.8 | % | 18.4 | % | 16.5 | % |
Adjusted EBITDA margins (excluding grant income): | ||||||||
Ambulatory Care | 41.1 | % | 41.4 | % | 39.6 | % | 39.6 | % |
Hospital Operations and other | 9.3 | % | 10.9 | % | 11.4 | % | 10.6 | % |
Conifer | 27.9 | % | 28.2 | % | 28.2 | % | 28.0 | % |
Total | 16.1 | % | 16.4 | % | 17.4 | % | 15.9 | % |
Capital expenditures: | ||||||||
Ambulatory Care | $ | 19 | $ | 27 | $ | 40 | $ | 35 |
Hospital Operations and other | 130 | 90 | 262 | 200 | ||||
Conifer | 3 | 5 | 5 | 8 | ||||
Total | $ | 152 | $ | 122 | $ | 307 | $ | 243 |
(1) Net operating revenues include the impact of implicit price concessions and bad debts |
(Dollars in millions except per share amounts) | Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 38 | $ | 119 | $ | 178 | $ | 216 |
Net income (loss) from discontinued operations | - | (1) | 1 | (1) | ||||
Net income from continuing operations | 38 | 120 | 177 | 217 | ||||
Less: Impairment and restructuring charges, and acquisition-related costs | (57) | (20) | (73) | (40) | ||||
Litigation and investigation costs | (18) | (22) | (38) | (35) | ||||
Net gains on sales, consolidation and deconsolidation of facilities | 1 | 15 | 0 | 15 | ||||
Loss from early extinguishment of debt | (66) | (31) | (109) | (54) | ||||
Tax impact of above items | 15 | 5 | 21 | 18 | ||||
Adjusted net income available from continuing operations to common shareholders | $ | 163 | $ | 173 | $ | 376 | $ | 313 |
Diluted earnings per share from continuing operations | $ | 0.35 | $ | 1.11 | $ | 1.63 | $ | 2.00 |
Less: Impairment and restructuring charges, and acquisition-related costs | (0.52) | (0.18) | (0.64) | (0.37) | ||||
Litigation and investigation costs | (0.17) | (0.20) | (0.33) | (0.32) | ||||
Net gains on sales, consolidation and deconsolidation of facilities | 0.01 | 0.14 | - | 0.14 | ||||
Loss from early extinguishment of debt | (0.61) | (0.29) | (0.96) | (0.50) | ||||
Tax impact of above items | 0.14 | 0.05 | 0.18 | 0.16 | ||||
Adjusted diluted earnings per share from continuing operations | $ | 1.50 | $ | 1.59 | $ | 3.38 | $ | 2.89 |
Weighted average basic shares outstanding (in thousands) | 107,790 | 106,822 | 107,636 | 106,566 | ||||
Weighted average dilutive shares outstanding (in thousands) | 108,750 | 108,569 | 114,054 | 108,317 |
(Dollars in millions) | Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 38 | $ | 119 | $ | 178 | $ | 216 |
Less: Net income available to noncontrolling interests | (141) | (138) | (281) | (263) | ||||
Income (loss) from discontinued operations, net of tax | - | (1) | 1 | (1) | ||||
Income from continuing operations | 179 | 258 | 458 | 480 | ||||
Income tax expense | (86) | (61) | (185) | (106) | ||||
Loss from early extinguishment of debt | (66) | (31) | (109) | (54) | ||||
Other non-operating income (expense), net | - | (1) | - | 9 | ||||
Interest expense | (222) | (235) | (449) | (475) | ||||
Operating income | 553 | 586 | 1,201 | 1,106 | ||||
Litigation and investigation costs | (18) | (22) | (38) | (35) | ||||
Net gains on sales, consolidation and deconsolidation of facilities | 1 | 15 | - | 15 | ||||
Impairment and restructuring charges, and acquisition-related costs | (57) | (20) | (73) | (40) | ||||
Depreciation and amortization | (216) | (221) | (419) | (445) | ||||
Adjusted EBITDA | $ | 843 | $ | 834 | $ | 1,731 | $ | 1,611 |
Net operating revenues | $ | 4,638 | $ | 4,954 | $ | 9,383 | $ | 9,735 |
Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues | 0.8 | % | 2.4 | % | 1.9 | % | 2.2 | % |
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 18.2 | % | 16.8 | % | 18.4 | % | 16.5 | % |
(Dollars in millions) | 2022 | |||
Q2 | YTD | |||
Net cash provided by operating activities | $ | 119 | $ | 347 |
Purchases of property and equipment | (152) | (307) | ||
Free cash flow | (33) | 40 | ||
Add back: Medicare Advance Repayments | 281 | 475 | ||
Free cash flow, excluding repayment of Medicare Advances | $ | 248 | $ | 515 |
Net cash used in investing activities | $ | (140) | $ | (200) |
Net cash used in financing activities | $ | (33) | $ | (1,160) |
Net cash provided by operating activities | $ | 119 | $ | 347 |
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (42) | (98) | ||
Adjusted net cash provided by operating activities from continuing operations | 161 | 445 | ||
Purchases of property and equipment | (152) | (307) | ||
Adjusted free cash flow - continuing operations | 9 | 138 | ||
Add back: Medicare Advance Repayments | 281 | 475 | ||
Adjusted free cash flow - continuing operations, excluding repayments of Medicare Advances | $ | 290 | $ | 613 |
(Dollars in millions) | 2021 | |||
Q2 | YTD | |||
Net cash provided by operating activities | $ | 245 | $ | 779 |
Purchases of property and equipment | (122) | (243) | ||
Free cash flow | 123 | 536 | ||
Add back: Medicare Advance Repayments | 152 | 152 | ||
Free cash flow, excluding repayment of Medicare Advances | $ | 275 | $ | 688 |
Net cash used in investing activities | $ | (50) | $ | (195) |
Net cash used in financing activities | $ | (142) | $ | (836) |
Net cash provided by operating activities | $ | 245 | $ | 779 |
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (34) | (85) | ||
Adjusted net cash provided by operating activities from continuing operations | 279 | 864 | ||
Purchases of property and equipment | (122) | (243) | ||
Adjusted free cash flow - continuing operations | 157 | 621 | ||
Add back: Medicare Advance Repayments | 152 | 152 | ||
Adjusted free cash flow - continuing operations, excluding repayments of Medicare Advances | $ | 309 | $ | 773 |
(Dollars in millions) |
Q3'22
| FY 2022 | ||||||
Low | High | Low | High | |||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 100 | $ | 135 | $ | 371 | $ | 546 |
Less: Net income available to noncontrolling interests | (125) | (145) | (590) | (630) | ||||
Income tax expense
| (90) | (100) | (375) | (410) | ||||
Interest expense
| (225) | (215) | (890) | (880) | ||||
Loss from early extinguishment of debt(1)
| - | - | (109) | (109) | ||||
Other non-operating income (expense), net | - | 5 | - | 10 | ||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(2)
| (30) | (20) | (200) | (150) | ||||
Depreciation and amortization
| (205) | (215) | (840) | (860) | ||||
Loss from divested and closed businesses (i.e., health plan businesses) | - | - | - | - | ||||
Adjusted EBITDA | $ | 775 | $ | 825 | $ | 3,375 | $ | 3,575 |
Income from continuing operations | $ | 100 | $ | 135 | $ | 371 | $ | 546 |
Net operating revenues | $ | 4,700 | $ | 4,900 | $ | 19,000 | $ | 19,400 |
Net income available to Tenet Healthcare Corporation common shareholders as a % of operating revenues | 2.1 | % | 2.8 | % | 2.0 | % | 2.8 | % |
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 16.5 | % | 16.8 | % | 17.8 | % | 18.4 | % |
(Dollars in millions except per share amounts) |
Q3'22
| FY 2022 | ||||||
Low | High | Low | High | |||||
Net income available to Tenet Healthcare Corporation common shareholders | $ | 100 | $ | 135 | $ | 371 | $ | 546 |
Net income from discontinued operations, net of tax | - | - | - | - | ||||
Net income from continuing operations | 100 | 135 | 371 | 546 | ||||
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1)
| (30) | (20) | (200) | (150) | ||||
Loss from early extinguishment of debt(2)
| - | - | (109) | (109) | ||||
Loss from divested and closed businesses (i.e., health plan businesses) | - | - | - | - | ||||
Tax impact of above items
| 5 | 5 | 35 | 25 | ||||
Adjusted net income available from continuing operations to common shareholders | $ | 125 | $ | 150 | $ | 645 | $ | 780 |
Diluted earnings per share from continuing operations | $ | 0.91 | $ | 1.23 | $ | 3.35 | $ | 4.91 |
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements | (0.28) | (0.18) | (1.79) | (1.34) | ||||
Loss from early extinguishment of debt
| - | - | (0.97) | (0.97) | ||||
Loss from divested and closed businesses (i.e., health plan businesses) | - | - | - | - | ||||
Tax impact of above items
| 0.05 | 0.05 | 0.31 | 0.22 | ||||
Adjusted diluted earnings per share from continuing operations | $ | 1.14 | $ | 1.36 | $ | 5.80 | $ | 7.00 |
Weighted average basic shares outstanding (in thousands) | 108,000 | 108,000 | 108,000 | 108,000 | ||||
Weighted average dilutive shares outstanding (in thousands) | 110,000 | 110,000 | 112,000 | 112,000 |
to Outlook Free Cash Flow - Continuing Operations and Outlook Adjusted Free Cash
Flow - Continuing Operations
(Dollars in millions) | FY 2022 | |||
Low | High | |||
Net cash provided by operating activities | $ | 1,100 | $ | 1,400 |
Purchases of property and equipment - continuing operations | (725) | (775) | ||
Free cash flow - continuing operations | 375 | 625 | ||
Add back: | ||||
Medicare Advance Repayments | 880 | 880 | ||
Payroll Tax Deferral Payments | 128 | 128 | ||
Free cash flow excluding repayments of Medicare Advances and Deferred Payroll Tax Payments | $ | 1,383 | $ | 1,633 |
Net cash provided by operating activities | $ | 1,100 | $ | 1,400 |
Less: Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1)
| (200) | (150) | ||
Net cash used in operating activities from discontinued operations | - | - | ||
Adjusted net cash provided by operating activities - continuing operations
| 1,300 | 1,550 | ||
Purchases of property and equipment - continuing operations | (725) | (775) | ||
Adjusted free cash flow - continuing operations(2)
| 575 | 775 | ||
Add back: | ||||
Medicare Advance Repayments | 880 | 880 | ||
Payroll Tax Deferral Payments | 128 | 128 | ||
Adjusted free cash flow - continuing operations, excluding repayments of Medicare Advances and Deferred Payroll Tax Payments | $ | 1,583 | $ | 1,783 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Tenet Healthcare Corporation published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 20:13:07 UTC.