Tenet Reports Strong Fourth Quarter and FY 2024 Results; Provides 2025 Financial Outlook
Tenet Healthcare (NYSE: THC) reported strong Q4 2024 results with net income of $318 million ($3.32 per diluted share) and Adjusted EBITDA of $1.048 billion. The company's Ambulatory Care segment showed impressive growth with Q4 Adjusted EBITDA increasing 14.2% to $530 million.
Key financial highlights include Q4 net operating revenues of $5.072 billion, down from $5.379 billion in Q4 2023 due to hospital divestitures, offset by strong same-facility revenue growth. For full-year 2024, the company achieved net income of $3.2 billion, including a $2.916 billion pre-tax gain from hospital divestitures.
The company's 2025 outlook projects net operating revenues between $20.6-21.0 billion and Adjusted EBITDA of $3.975-4.175 billion. Tenet also reported significant deleveraging, with its net debt to Adjusted EBITDA ratio improving to 2.54x from 3.89x year-over-year.
Tenet Healthcare (NYSE: THC) ha riportato risultati solidi per il quarto trimestre del 2024, con un reddito netto di 318 milioni di dollari (3,32 dollari per azione diluita) e un EBITDA rettificato di 1,048 miliardi di dollari. Il segmento di Assistenza Ambulatoriale dell'azienda ha mostrato una crescita impressionante, con un EBITDA rettificato del quarto trimestre che è aumentato del 14,2% a 530 milioni di dollari.
I principali punti finanziari includono ricavi netti operativi del quarto trimestre pari a 5,072 miliardi di dollari, in calo rispetto ai 5,379 miliardi di dollari nel quarto trimestre del 2023 a causa delle dismissioni ospedaliere, compensate da una forte crescita dei ricavi nelle stesse strutture. Per l'intero anno 2024, l'azienda ha raggiunto un reddito netto di 3,2 miliardi di dollari, incluso un guadagno ante imposte di 2,916 miliardi di dollari derivante dalle dismissioni ospedaliere.
Le prospettive dell'azienda per il 2025 prevedono ricavi netti operativi compresi tra 20,6 e 21,0 miliardi di dollari e un EBITDA rettificato di 3,975-4,175 miliardi di dollari. Tenet ha anche riportato un significativo deleveraging, con il rapporto debito netto su EBITDA rettificato che è migliorato a 2,54x rispetto a 3,89x anno su anno.
Tenet Healthcare (NYSE: THC) reportó sólidos resultados para el cuarto trimestre de 2024, con un ingreso neto de 318 millones de dólares (3.32 dólares por acción diluida) y un EBITDA ajustado de 1.048 millones de dólares. El segmento de Atención Ambulatoria de la compañía mostró un impresionante crecimiento, con un EBITDA ajustado del cuarto trimestre que aumentó un 14.2% a 530 millones de dólares.
Los puntos financieros clave incluyen ingresos netos operativos del cuarto trimestre de 5.072 millones de dólares, en comparación con 5.379 millones de dólares en el cuarto trimestre de 2023 debido a desinversiones hospitalarias, compensadas por un fuerte crecimiento en los ingresos de las mismas instalaciones. Para el año completo 2024, la compañía logró un ingreso neto de 3.2 mil millones de dólares, incluyendo una ganancia antes de impuestos de 2.916 millones de dólares por desinversiones hospitalarias.
Las perspectivas de la compañía para 2025 proyectan ingresos netos operativos entre 20.6 y 21.0 mil millones de dólares y un EBITDA ajustado de 3.975-4.175 millones de dólares. Tenet también reportó una significativa reducción de deuda, con su ratio de deuda neta a EBITDA ajustado mejorando a 2.54x desde 3.89x año tras año.
테넷 헬스케어 (NYSE: THC)는 2024년 4분기 강력한 실적을 보고했으며, 순이익은 3억 1800만 달러(희석 주당 3.32달러)이고 조정 EBITDA는 10억 4800만 달러입니다. 회사의 외래 진료 부문은 인상적인 성장을 보였으며, 4분기 조정 EBITDA는 14.2% 증가한 5억 3000만 달러에 달했습니다.
주요 재무 하이라이트에는 4분기 순 운영 수익이 50억 7200만 달러로, 2023년 4분기의 53억 7900만 달러에서 감소했으며, 이는 병원 매각으로 인한 것이지만 동일 시설의 수익 성장으로 상쇄되었습니다. 2024년 전체 연도에 대해 회사는 32억 달러의 순이익을 달성했으며, 여기에는 병원 매각으로 인한 세전 이익이 29억 1600만 달러 포함됩니다.
회사의 2025년 전망은 순 운영 수익이 206억에서 210억 달러, 조정 EBITDA가 39억 7500만에서 41억 7500만 달러 사이일 것으로 예상됩니다. 테넷은 또한 상당한 부채 감소를 보고했으며, 순 부채 대비 조정 EBITDA 비율이 전년 대비 3.89배에서 2.54배로 개선되었습니다.
Tenet Healthcare (NYSE: THC) a annoncé de solides résultats pour le quatrième trimestre de 2024, avec un revenu net de 318 millions de dollars (3,32 dollars par action diluée) et un EBITDA ajusté de 1,048 milliard de dollars. Le segment des soins ambulatoires de l'entreprise a montré une croissance impressionnante, avec un EBITDA ajusté du quatrième trimestre augmentant de 14,2 % pour atteindre 530 millions de dollars.
Les points financiers clés comprennent des revenus nets d'exploitation au quatrième trimestre de 5,072 milliards de dollars, en baisse par rapport à 5,379 milliards de dollars au quatrième trimestre 2023 en raison des cessions d'hôpitaux, compensées par une forte croissance des revenus dans les mêmes établissements. Pour l'année complète 2024, l'entreprise a réalisé un revenu net de 3,2 milliards de dollars, y compris un gain avant impôt de 2,916 milliards de dollars provenant des cessions d'hôpitaux.
Les prévisions de l'entreprise pour 2025 projettent des revenus nets d'exploitation compris entre 20,6 et 21,0 milliards de dollars et un EBITDA ajusté de 3,975 à 4,175 milliards de dollars. Tenet a également signalé une réduction significative de l'endettement, le ratio de la dette nette par rapport à l'EBITDA ajusté s'améliorant à 2,54x contre 3,89x d'une année sur l'autre.
Tenet Healthcare (NYSE: THC) hat starke Ergebnisse für das vierte Quartal 2024 gemeldet, mit einem Nettogewinn von 318 Millionen US-Dollar (3,32 US-Dollar pro verwässerter Aktie) und einem bereinigten EBITDA von 1,048 Milliarden US-Dollar. Das Segment der ambulanten Versorgung des Unternehmens zeigte ein beeindruckendes Wachstum, wobei das bereinigte EBITDA im vierten Quartal um 14,2% auf 530 Millionen US-Dollar anstieg.
Wichtige finanzielle Highlights umfassen die Nettobetriebseinnahmen im vierten Quartal von 5,072 Milliarden US-Dollar, ein Rückgang von 5,379 Milliarden US-Dollar im vierten Quartal 2023 aufgrund von Krankenhausverkäufen, die durch starkes Umsatzwachstum in denselben Einrichtungen ausgeglichen wurden. Für das gesamte Jahr 2024 erzielte das Unternehmen einen Nettogewinn von 3,2 Milliarden US-Dollar, einschließlich eines vorsteuerlichen Gewinns von 2,916 Milliarden US-Dollar aus Krankenhausverkäufen.
Der Ausblick des Unternehmens für 2025 prognostiziert Nettobetriebseinnahmen zwischen 20,6 und 21,0 Milliarden US-Dollar sowie ein bereinigtes EBITDA von 3,975 bis 4,175 Milliarden US-Dollar. Tenet berichtete auch von einer signifikanten Schuldenreduktion, da sich das Verhältnis von Nettoschulden zu bereinigtem EBITDA von 3,89x auf 2,54x im Jahresvergleich verbesserte.
- Q4 2024 Adjusted EBITDA increased to $1.048 billion with 20.7% margin
- Ambulatory Care Q4 Adjusted EBITDA grew 14.2% to $530 million
- Net debt to Adjusted EBITDA ratio improved to 2.54x from 3.89x
- Same-hospital admissions grew 5.0% in Q4 2024
- Generated $1.116 billion in free cash flow for 2024
- Repurchased 5.6 million shares for $672 million in 2024
- Q4 2024 net operating revenues declined 11.4% to $5.072 billion due to hospital divestitures
- Same-facility system-wide surgical cases decreased 1.5% on same-business day basis
- Emergency Room visits declined 2.4% in Q4 2024
Insights
Tenet Healthcare's Q4 2024 results demonstrate the success of its strategic transformation, marked by the divestiture of 14 hospitals that has reshaped its portfolio toward higher-margin businesses. The Adjusted EBITDA margin expanded to 20.7%, reflecting enhanced operational efficiency and strategic focus on profitable growth segments.
The ambulatory care division continues to be the company's growth engine, with same-facility surgical revenue growing 8.6% year-over-year, driven by an impressive 8.5% increase in revenue per case. This pricing power, combined with favorable payer mix and higher acuity cases, underscores USPI's strong market position and the secular trend toward outpatient care.
The hospital segment's performance was particularly noteworthy with same-hospital admissions growing 5.0%, significantly outpacing industry averages. This growth, coupled with improved payer mix and pricing yield, demonstrates Tenet's ability to drive organic growth in its core acute care business despite the broader industry challenges.
The company's financial position has strengthened considerably, with the net debt to Adjusted EBITDA ratio improving to 2.54x from 3.89x year-over-year. This deleveraging, combined with $1.116 billion in free cash flow generation for 2024, provides significant financial flexibility for strategic investments and returns to shareholders, as evidenced by the $672 million in share repurchases during the year.
The 2025 outlook suggests continued momentum with projected Adjusted EBITDA of $3.975-4.175 billion, supported by anticipated same-facility revenue growth of 3-6% in ambulatory care and 2-3% growth in hospital admissions. This guidance reflects management's confidence in sustaining operational excellence while capitalizing on favorable industry trends in both acute and ambulatory care settings.
-
Net income available to common shareholders in fourth quarter 2024 was
$318 million $3.32 -
Adjusted diluted earnings per share1 was
$3.44 -
Consolidated Adjusted EBITDA1 in fourth quarter 2024 was
$1.04 8 billion20.7% -
Fourth quarter 2024 Ambulatory Care Adjusted EBITDA of
$530 million 14.2% over fourth quarter 2023 -
FY 2025 Adjusted EBITDA Outlook is expected to be in the range of
$3.97 5 billion$4.17 5 billion
"2024 was an outstanding year for Tenet characterized by robust revenue growth, efficient operations, high levels of patient satisfaction and clinical quality, and a portfolio transformation that drove substantial balance sheet deleveraging," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "Our focused strategy, disciplined operating management, and the strong demand for acute care and ambulatory surgical services provide us with momentum as we begin the year and confidence to achieve our full year 2025 expectations."
Tenet’s results for fourth quarter 2024 versus fourth quarter 2023 are as follows:
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Three Months Ended December 31, |
Years Ended December 31, |
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($ in millions, except per share results) |
2024 |
2023 |
2024 |
2023 |
Net operating revenues |
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Net income available to Tenet common shareholders |
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Net income available to Tenet common shareholders per diluted share |
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Adjusted EBITDA1 |
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Adjusted diluted earnings per share1 |
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-
Net operating revenues in fourth quarter 2024 were
$5.07 2 billion$5.37 9 billion
-
Net income available to the Company’s common shareholders in the fourth quarter 2024 was
$318 million $3.32 $244 million $2.30
-
Net income available to the Company's common shareholders in 2024 was
$3.2 billion $32.70 $611 million $5.71 $2.91 6 billion$2.14 3 billion$21.89
-
Adjusted EBITDA1 in fourth quarter 2024 was
$1.04 8 billion$1.01 2 billionMichigan , partially offset by the impact of hospital divestitures. Fourth quarter 2023 results included$52 million California andTexas .
Balance Sheet and Cash Flows
-
Cash flows provided by operating activities for the year ended December 31, 2024 were
$2.04 7 billion$2.37 4 billion$855 million
-
The Company produced free cash flow1 of
$1.11 6 billion$1.62 3 billion
-
In the year ended December 31, 2024, the Company repurchased 5,596,573 shares of common stock for
$672 million
- The Company’s ratio of net debt to Adjusted EBITDA1 was 2.54x at December 31, 2024 compared to 3.89x at December 31, 2023.
Ambulatory Care (Ambulatory) Segment
Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of December 31, 2024, USPI had interests in 518 ambulatory surgery centers (375 consolidated) and 25 surgical hospitals (seven consolidated) in 37 states.
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Three Months Ended December 31, |
Years Ended December 31, |
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Ambulatory segment results ($ in millions) |
2024 |
2023 |
2024 |
2023 |
Revenues |
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Net operating revenues |
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Same-facility system-wide net patient service revenues2 |
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Volume Changes versus the Prior-Year Period |
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Same-facility system-wide surgical cases2 |
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0.3 % |
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Same-facility system-wide surgical cases on same-business day basis2 |
(1.5)% |
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(0.5)% |
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Adjusted EBITDA, Margins and NCI |
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Adjusted EBITDA |
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Adjusted EBITDA margin |
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Adjusted EBITDA less NCI |
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-
Fourth quarter 2024 net operating revenues increased
16.9% compared to fourth quarter 2023 driven by strong net revenue per case growth, acquisitions of facilities, and increased service lines.
-
Surgical business same-facility system-wide net patient service revenues increased
8.6% in fourth quarter 2024 compared to fourth quarter 2023, with cases up0.1% and net revenue per case up8.5% . Net revenue per case growth was driven by higher acuity associated with favorable case mix as well as favorable payer mix.
-
Fourth quarter 2024 Adjusted EBITDA increased
14.2% compared to fourth quarter 2023, due to strong net revenue per case growth, disciplined expense management, and contributions from acquisitions.
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.
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Three Months Ended December 31, |
Years Ended December 31, |
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Hospital segment results ($ in millions) |
2024 |
2023 |
2024 |
2023 |
Revenues |
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Net operating revenues |
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Same-hospital net patient service revenues3 |
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Same-Hospital Volume Changes versus the Prior-Year Period |
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Admissions |
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Adjusted admissions4 |
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Outpatient visits (including outpatient ER visits) |
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(2.2)% |
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(1.3)% |
Emergency Room visits (inpatient and outpatient) |
(2.4)% |
(3.3)% |
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Hospital surgeries |
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Adjusted EBITDA |
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Adjusted EBITDA |
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Adjusted EBITDA margin |
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-
Fourth quarter 2024 net operating revenues declined
11.4% from fourth quarter 2023 primarily due to the impact of hospital divestitures in 2024, partially offset by strong same hospital admissions growth, favorable payer mix, and improved pricing yield.
-
Same-hospital net patient service revenue per adjusted admission increased
0.6% year-over-year for fourth quarter 2024 primarily due to improved pricing yield, favorable payer mix, and our focus on growing higher acuity services, partially offset by net unfavorable Medicaid supplemental revenue program adjustments relative to fourth quarter 2023.
-
Adjusted EBITDA in fourth quarter 2024 was
$518 million $548 million Michigan , offset by the impact of hospital divestitures and the favorable Medicaid supplemental revenue program adjustments of$52 million
2025 Outlook1
Tenet’s Outlook for full year 2025 (consolidated and by segment) follows.
CONSOLIDATED ($ in millions, except per share amounts) |
FY 2025 Outlook |
Net operating revenues |
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Net income available to Tenet common stockholders |
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Adjusted EBITDA |
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Adjusted EBITDA margin |
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Diluted income per common share |
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Adjusted net income |
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Adjusted diluted earnings per share |
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Equity in earnings of unconsolidated affiliates |
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Depreciation and amortization |
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Interest expense |
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Income tax expense5 |
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Net income available to NCI |
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Weighted average diluted common shares |
~95 million |
Net cash provided by operating activities |
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Adjusted net cash provided by operating activities |
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Capital expenditures |
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Free cash flow |
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Adjusted free cash flow |
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NCI cash distributions |
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Ambulatory Segment ($ in millions) |
FY 2025 Outlook |
Net operating revenues |
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Adjusted EBITDA |
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NCI |
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Adjusted EBITDA less NCI |
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Changes versus prior year6: |
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Same-facility system-wide revenue |
Up |
Hospital Segment ($ in millions) |
FY 2025 Outlook |
Net operating revenues |
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Adjusted EBITDA |
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NCI |
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Changes versus prior year6: |
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Inpatient admissions |
Up |
Adjusted admissions |
Up |
Management’s Webcast Discussion of Results
Tenet management will discuss the Company’s fourth quarter 2024 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 12, 2025. 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 12, 2025.
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, 2023 and other filings with the Securities and Exchange Commission.
Footnotes
-
Tables and discussions throughout this earnings release include certain financial measures, including those related to our first quarter and full year 2025 Outlook, 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 #1-6 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. - Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that are not consolidated by Tenet. To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities.
- For 2024, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company’s Hospital segment continuously from January 1, 2023 through December 31, 2024. Amounts associated with physician practices are excluded.
- Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues.
-
Income tax expense is calculated by multiplying
24% (the federal corporate tax rate of21% plus an estimate of state taxes) by the sum of: pretax income less GAAP facility level NCI expense plus permanent differences, and non-deductible interest expense. - Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in
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.
- Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation benefit (costs), net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization and (12) income (loss) from divested and closed businesses (i.e., health plan businesses). Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.
- Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period.
- Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses) and (7) the associated impact of these items on taxes and noncontrolling interests. Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.
- Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
- Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
- Adjusted net cash provided by (used in) operating activities is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, and (2) net cash provided by (used in) operating activities from discontinued operations.
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 |
17 |
Table #1 – Reconciliations of Net Income to Adjusted Net Income |
18 |
Table #2 – Reconciliations of Net Income to Adjusted EBITDA |
19 |
Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow |
20 |
Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income |
21 |
Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA |
22 |
Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow |
23 |
TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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(Dollars in millions, except per share amounts) |
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Three Months Ended December 31, |
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2024 |
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% |
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2023 |
|
% |
|
Change |
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Net operating revenues |
|
$ |
5,072 |
|
|
100.0 |
% |
|
$ |
5,379 |
|
|
100.0 |
% |
|
(5.7 |
)% |
Grant income |
|
|
1 |
|
|
— |
% |
|
|
2 |
|
|
— |
% |
|
(50.0 |
)% |
Equity in earnings of unconsolidated affiliates |
|
|
78 |
|
|
1.5 |
% |
|
|
73 |
|
|
1.4 |
% |
|
6.8 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
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Salaries, wages and benefits |
|
|
2,094 |
|
|
41.3 |
% |
|
|
2,315 |
|
|
43.0 |
% |
|
(9.5 |
)% |
Supplies |
|
|
930 |
|
|
18.3 |
% |
|
|
931 |
|
|
17.3 |
% |
|
(0.1 |
)% |
Other operating expenses, net |
|
|
1,079 |
|
|
21.3 |
% |
|
|
1,196 |
|
|
22.2 |
% |
|
(9.8 |
)% |
Depreciation and amortization |
|
|
193 |
|
|
3.8 |
% |
|
|
216 |
|
|
4.0 |
% |
|
|
|
Impairment and restructuring charges, and acquisition-related costs |
|
|
27 |
|
|
0.5 |
% |
|
|
53 |
|
|
1.0 |
% |
|
|
|
Litigation and investigation costs |
|
|
17 |
|
|
0.3 |
% |
|
|
19 |
|
|
0.4 |
% |
|
|
|
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
(10 |
) |
|
(0.2 |
)% |
|
|
(11 |
) |
|
(0.2 |
)% |
|
|
|
Operating income |
|
|
821 |
|
|
16.2 |
% |
|
|
735 |
|
|
13.7 |
% |
|
|
|
Interest expense |
|
|
(203 |
) |
|
|
|
|
(227 |
) |
|
|
|
|
|||
Other non-operating income, net |
|
|
37 |
|
|
|
|
|
11 |
|
|
|
|
|
|||
Income before income taxes |
|
|
655 |
|
|
|
|
|
519 |
|
|
|
|
|
|||
Income tax expense |
|
|
(83 |
) |
|
|
|
|
(63 |
) |
|
|
|
|
|||
Net income |
|
|
572 |
|
|
|
|
|
456 |
|
|
|
|
|
|||
Less: Net income available to noncontrolling interests |
|
|
254 |
|
|
|
|
|
212 |
|
|
|
|
|
|||
Net income available to Tenet Healthcare Corporation common shareholders |
|
$ |
318 |
|
|
|
|
$ |
244 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share available to Tenet Healthcare Corporation common shareholders: |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
3.34 |
|
|
|
|
$ |
2.42 |
|
|
|
|
|
|||
Diluted |
|
$ |
3.32 |
|
|
|
|
$ |
2.30 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
95,102 |
|
|
|
|
|
100,956 |
|
|
|
|
|
|||
Diluted |
|
|
95,882 |
|
|
|
|
|
104,167 |
|
|
|
|
|
|||
TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||||
(Dollars in millions, except per share amounts) |
|
Years Ended December 31, |
|||||||||||||||
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
||||||||
Net operating revenues |
|
$ |
20,665 |
|
|
100.0 |
% |
|
$ |
20,548 |
|
|
100.0 |
% |
|
0.6 |
% |
Grant income |
|
|
10 |
|
|
— |
% |
|
|
16 |
|
|
0.1 |
% |
|
(37.5 |
)% |
Equity in earnings of unconsolidated affiliates |
|
|
260 |
|
|
1.3 |
% |
|
|
228 |
|
|
1.1 |
% |
|
14.0 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||||||
Salaries, wages and benefits |
|
|
8,801 |
|
|
42.6 |
% |
|
|
9,146 |
|
|
44.5 |
% |
|
(3.8 |
)% |
Supplies |
|
|
3,647 |
|
|
17.6 |
% |
|
|
3,590 |
|
|
17.5 |
% |
|
1.6 |
% |
Other operating expenses, net |
|
|
4,492 |
|
|
21.7 |
% |
|
|
4,515 |
|
|
22.0 |
% |
|
(0.5 |
)% |
Depreciation and amortization |
|
|
818 |
|
|
4.0 |
% |
|
|
870 |
|
|
4.2 |
% |
|
|
|
Impairment and restructuring charges, and acquisition-related costs |
|
|
102 |
|
|
0.5 |
% |
|
|
137 |
|
|
0.7 |
% |
|
|
|
Litigation and investigation costs |
|
|
35 |
|
|
0.2 |
% |
|
|
47 |
|
|
0.2 |
% |
|
|
|
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
(2,916 |
) |
|
(14.1 |
)% |
|
|
(23 |
) |
|
(0.1 |
)% |
|
|
|
Operating income |
|
|
5,956 |
|
|
28.8 |
% |
|
|
2,510 |
|
|
12.2 |
% |
|
|
|
Interest expense |
|
|
(826 |
) |
|
|
|
|
(901 |
) |
|
|
|
|
|||
Other non-operating income, net |
|
|
126 |
|
|
|
|
|
19 |
|
|
|
|
|
|||
Loss from early extinguishment of debt |
|
|
(8 |
) |
|
|
|
|
(11 |
) |
|
|
|
|
|||
Income before income taxes |
|
|
5,248 |
|
|
|
|
|
1,617 |
|
|
|
|
|
|||
Income tax expense |
|
|
(1,184 |
) |
|
|
|
|
(306 |
) |
|
|
|
|
|||
Net income |
|
|
4,064 |
|
|
|
|
|
1,311 |
|
|
|
|
|
|||
Less: Net income available to noncontrolling interests |
|
|
864 |
|
|
|
|
|
700 |
|
|
|
|
|
|||
Net income available to Tenet Healthcare Corporation common shareholders |
|
$ |
3,200 |
|
|
|
|
$ |
611 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share available to Tenet Healthcare Corporation common shareholders: |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
33.02 |
|
|
|
|
$ |
6.01 |
|
|
|
|
|
|||
Diluted |
|
$ |
32.70 |
|
|
|
|
$ |
5.71 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
96,904 |
|
|
|
|
|
101,639 |
|
|
|
|
|
|||
Diluted |
|
|
97,881 |
|
|
|
|
|
104,800 |
|
|
|
|
|
|||
TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(Dollars in millions) |
|
December 31, |
|
December 31, |
||||
|
2024 |
|
2023 |
|||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
3,019 |
|
|
$ |
1,228 |
|
Accounts receivable |
|
|
2,536 |
|
|
|
2,914 |
|
Inventories of supplies, at cost |
|
|
346 |
|
|
|
411 |
|
Assets held for sale |
|
|
21 |
|
|
|
775 |
|
Other current assets |
|
|
1,760 |
|
|
|
1,839 |
|
Total current assets |
|
|
7,682 |
|
|
|
7,167 |
|
Investments and other assets |
|
|
3,037 |
|
|
|
3,157 |
|
Deferred income taxes |
|
|
80 |
|
|
|
77 |
|
Property and equipment, at cost, less accumulated depreciation and amortization |
|
|
6,049 |
|
|
|
6,236 |
|
Goodwill |
|
|
10,691 |
|
|
|
10,307 |
|
Other intangible assets, at cost, less accumulated amortization |
|
|
1,397 |
|
|
|
1,368 |
|
Total assets |
|
$ |
28,936 |
|
|
$ |
28,312 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
92 |
|
|
$ |
120 |
|
Accounts payable |
|
|
1,294 |
|
|
|
1,408 |
|
Accrued compensation and benefits |
|
|
899 |
|
|
|
930 |
|
Professional and general liability reserves |
|
|
238 |
|
|
|
254 |
|
Accrued interest payable |
|
|
149 |
|
|
|
200 |
|
Liabilities held for sale |
|
|
13 |
|
|
|
69 |
|
Income tax payable |
|
|
18 |
|
|
|
23 |
|
Other current liabilities |
|
|
1,607 |
|
|
|
1,756 |
|
Total current liabilities |
|
|
4,310 |
|
|
|
4,760 |
|
Long-term debt, net of current portion |
|
|
13,081 |
|
|
|
14,882 |
|
Professional and general liability reserves |
|
|
900 |
|
|
|
792 |
|
Defined benefit plan obligations |
|
|
298 |
|
|
|
335 |
|
Deferred income taxes |
|
|
227 |
|
|
|
326 |
|
Other long-term liabilities |
|
|
1,573 |
|
|
|
1,709 |
|
Total liabilities |
|
|
20,389 |
|
|
|
22,804 |
|
Commitments and contingencies |
|
|
|
|
||||
Redeemable noncontrolling interests in equity of consolidated subsidiaries |
|
|
2,727 |
|
|
|
2,391 |
|
Equity: |
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
|
4,873 |
|
|
|
4,834 |
|
Accumulated other comprehensive loss |
|
|
(180 |
) |
|
|
(181 |
) |
Retained earnings (accumulated deficit) |
|
|
3,008 |
|
|
|
(192 |
) |
Common stock in treasury, at cost |
|
|
(3,538 |
) |
|
|
(2,861 |
) |
Total shareholders’ equity |
|
|
4,171 |
|
|
|
1,608 |
|
Noncontrolling interests |
|
|
1,649 |
|
|
|
1,509 |
|
Total equity |
|
|
5,820 |
|
|
|
3,117 |
|
Total liabilities and equity |
|
$ |
28,936 |
|
|
$ |
28,312 |
|
TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(Dollars in millions) |
|
Years Ended |
||||||
|
December 31, |
|||||||
|
2024 |
|
2023 |
|||||
Net income |
|
$ |
4,064 |
|
|
$ |
1,311 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
818 |
|
|
|
870 |
|
Deferred income tax expense (benefit) |
|
|
(103 |
) |
|
|
52 |
|
Stock-based compensation expense |
|
|
67 |
|
|
|
66 |
|
Impairment and restructuring charges, and acquisition-related costs |
|
|
102 |
|
|
|
137 |
|
Litigation and investigation costs |
|
|
35 |
|
|
|
47 |
|
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
(2,916 |
) |
|
|
(23 |
) |
Loss from early extinguishment of debt |
|
|
8 |
|
|
|
11 |
|
Equity in earnings of unconsolidated affiliates, net of distributions received |
|
|
(29 |
) |
|
|
(13 |
) |
Amortization of debt discount and debt issuance costs |
|
|
26 |
|
|
|
32 |
|
Net gains from the sale of investments and long-lived assets |
|
|
(4 |
) |
|
|
(29 |
) |
Other items, net |
|
|
(4 |
) |
|
|
(4 |
) |
Changes in cash from operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
245 |
|
|
|
(29 |
) |
Inventories and other current assets |
|
|
(86 |
) |
|
|
(139 |
) |
Income taxes |
|
|
16 |
|
|
|
10 |
|
Accounts payable, accrued expenses and other current liabilities |
|
|
(30 |
) |
|
|
215 |
|
Other long-term liabilities |
|
|
(9 |
) |
|
|
14 |
|
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
|
(153 |
) |
|
|
(154 |
) |
Net cash provided by operating activities |
|
|
2,047 |
|
|
|
2,374 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(931 |
) |
|
|
(751 |
) |
Purchases of businesses or joint venture interests, net of cash acquired |
|
|
(571 |
) |
|
|
(224 |
) |
Proceeds from sales of facilities and other assets |
|
|
4,981 |
|
|
|
71 |
|
Proceeds from sales of marketable securities and long-term investments |
|
|
63 |
|
|
|
50 |
|
Purchases of marketable securities and long-term investments |
|
|
(94 |
) |
|
|
(104 |
) |
Other items, net |
|
|
(19 |
) |
|
|
(11 |
) |
Net cash provided by (used in) investing activities |
|
|
3,429 |
|
|
|
(969 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Repayments of borrowings |
|
|
(2,243 |
) |
|
|
(1,542 |
) |
Proceeds from borrowings |
|
|
23 |
|
|
|
1,370 |
|
Repurchases of common stock |
|
|
(672 |
) |
|
|
(200 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(16 |
) |
Distributions paid to noncontrolling interests |
|
|
(681 |
) |
|
|
(594 |
) |
Proceeds from the sale of noncontrolling interests |
|
|
23 |
|
|
|
43 |
|
Purchases of noncontrolling interests |
|
|
(200 |
) |
|
|
(167 |
) |
Advances from managed care payers |
|
|
342 |
|
|
|
— |
|
Repayments of advances from managed care payers |
|
|
(310 |
) |
|
|
— |
|
Other items, net |
|
|
33 |
|
|
|
71 |
|
Net cash used in financing activities |
|
|
(3,685 |
) |
|
|
(1,035 |
) |
Net increase in cash and cash equivalents |
|
|
1,791 |
|
|
|
370 |
|
Cash and cash equivalents at beginning of period |
|
|
1,228 |
|
|
|
858 |
|
Cash and cash equivalents at end of period |
|
$ |
3,019 |
|
|
$ |
1,228 |
|
Supplemental disclosures: |
|
|
|
|
||||
Interest paid, net of capitalized interest |
|
$ |
(851 |
) |
|
$ |
(882 |
) |
Income tax payments, net |
|
$ |
(1,271 |
) |
|
$ |
(243 |
) |
TENET HEALTHCARE CORPORATION SEGMENT REPORTING (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
(Dollars in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net operating revenues: |
|
|
|
|
|
|
|
|
||||||||
Ambulatory Care |
|
$ |
1,259 |
|
|
$ |
1,077 |
|
|
$ |
4,534 |
|
|
$ |
3,865 |
|
Hospital Operations and Services |
|
|
3,813 |
|
|
|
4,302 |
|
|
|
16,131 |
|
|
|
16,683 |
|
Total |
|
$ |
5,072 |
|
|
$ |
5,379 |
|
|
$ |
20,665 |
|
|
$ |
20,548 |
|
|
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated affiliates: |
|
|
|
|
|
|
|
|
||||||||
Ambulatory Care |
|
$ |
75 |
|
|
$ |
69 |
|
|
$ |
250 |
|
|
$ |
218 |
|
Hospital Operations and Services |
|
|
3 |
|
|
|
4 |
|
|
|
10 |
|
|
|
10 |
|
Total |
|
$ |
78 |
|
|
$ |
73 |
|
|
$ |
260 |
|
|
$ |
228 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Ambulatory Care |
|
$ |
530 |
|
|
$ |
464 |
|
|
$ |
1,810 |
|
|
$ |
1,544 |
|
Hospital Operations and Services |
|
|
518 |
|
|
|
548 |
|
|
|
2,185 |
|
|
|
1,997 |
|
Total |
|
$ |
1,048 |
|
|
$ |
1,012 |
|
|
$ |
3,995 |
|
|
$ |
3,541 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margins: |
|
|
|
|
|
|
|
|
||||||||
Ambulatory Care |
|
|
42.1 |
% |
|
|
43.1 |
% |
|
|
39.9 |
% |
|
|
39.9 |
% |
Hospital Operations and Services |
|
|
13.6 |
% |
|
|
12.7 |
% |
|
|
13.5 |
% |
|
|
12.0 |
% |
Total |
|
|
20.7 |
% |
|
|
18.8 |
% |
|
|
19.3 |
% |
|
|
17.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures: |
|
|
|
|
|
|
|
|
||||||||
Ambulatory Care |
|
$ |
21 |
|
|
$ |
22 |
|
|
$ |
86 |
|
|
$ |
80 |
|
Hospital Operations and Services |
|
|
309 |
|
|
|
186 |
|
|
|
845 |
|
|
|
671 |
|
Total |
|
$ |
330 |
|
|
$ |
208 |
|
|
$ |
931 |
|
|
$ |
751 |
|
|
|
|
|
|
|
|
|
|
||||||||
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 to Common Shareholders (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
(Dollars in millions, except per share amounts) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
|
$ |
318 |
|
|
$ |
244 |
|
|
$ |
3,200 |
|
|
$ |
611 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Impairment and restructuring charges, and acquisition-related costs |
|
|
(27 |
) |
|
|
(53 |
) |
|
|
(102 |
) |
|
|
(137 |
) |
Litigation and investigation costs |
|
|
(17 |
) |
|
|
(19 |
) |
|
|
(35 |
) |
|
|
(47 |
) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
10 |
|
|
|
11 |
|
|
|
2,916 |
|
|
|
23 |
|
Loss from early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(11 |
) |
Tax and noncontrolling interests impact of above items |
|
|
22 |
|
|
|
22 |
|
|
|
(733 |
) |
|
|
39 |
|
Adjusted net income available to common shareholders |
|
$ |
330 |
|
|
$ |
283 |
|
|
$ |
1,162 |
|
|
$ |
744 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
|
$ |
3.32 |
|
|
$ |
2.30 |
|
|
$ |
32.70 |
|
|
$ |
5.71 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Impairment and restructuring charges, and acquisition-related costs |
|
|
(0.28 |
) |
|
|
(0.51 |
) |
|
|
(1.04 |
) |
|
|
(1.31 |
) |
Litigation and investigation costs |
|
|
(0.18 |
) |
|
|
(0.18 |
) |
|
|
(0.36 |
) |
|
|
(0.45 |
) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
29.79 |
|
|
|
0.22 |
|
Loss from early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(0.08 |
) |
|
|
(0.10 |
) |
Tax and noncontrolling interests impact of above items |
|
|
0.23 |
|
|
|
0.21 |
|
|
|
(7.49 |
) |
|
|
0.37 |
|
Adjusted diluted earnings per share |
|
$ |
3.44 |
|
|
$ |
2.68 |
|
|
$ |
11.88 |
|
|
$ |
6.98 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average basic shares outstanding (in thousands) |
|
|
95,102 |
|
|
|
100,956 |
|
|
|
96,904 |
|
|
|
101,639 |
|
Weighted average dilutive shares outstanding (in thousands) |
|
|
95,882 |
|
|
|
104,167 |
|
|
|
97,881 |
|
|
|
104,800 |
|
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 |
|
Years Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
(Dollars in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income available to Tenet Healthcare Corporation common shareholders |
|
$ |
318 |
|
|
$ |
244 |
|
|
$ |
3,200 |
|
|
$ |
611 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Net income available to noncontrolling interests |
|
|
(254 |
) |
|
|
(212 |
) |
|
|
(864 |
) |
|
|
(700 |
) |
Net income |
|
|
572 |
|
|
|
456 |
|
|
|
4,064 |
|
|
|
1,311 |
|
Income tax expense |
|
|
(83 |
) |
|
|
(63 |
) |
|
|
(1,184 |
) |
|
|
(306 |
) |
Loss from early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(11 |
) |
Other non-operating income, net |
|
|
37 |
|
|
|
11 |
|
|
|
126 |
|
|
|
19 |
|
Interest expense |
|
|
(203 |
) |
|
|
(227 |
) |
|
|
(826 |
) |
|
|
(901 |
) |
Operating income |
|
|
821 |
|
|
|
735 |
|
|
|
5,956 |
|
|
|
2,510 |
|
Litigation and investigation costs |
|
|
(17 |
) |
|
|
(19 |
) |
|
|
(35 |
) |
|
|
(47 |
) |
Net gains on sales, consolidation and deconsolidation of facilities |
|
|
10 |
|
|
|
11 |
|
|
|
2,916 |
|
|
|
23 |
|
Impairment and restructuring charges, and acquisition-related costs |
|
|
(27 |
) |
|
|
(53 |
) |
|
|
(102 |
) |
|
|
(137 |
) |
Depreciation and amortization |
|
|
(193 |
) |
|
|
(216 |
) |
|
|
(818 |
) |
|
|
(870 |
) |
Adjusted EBITDA |
|
$ |
1,048 |
|
|
$ |
1,012 |
|
|
$ |
3,995 |
|
|
$ |
3,541 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net operating revenues |
|
$ |
5,072 |
|
|
$ |
5,379 |
|
|
$ |
20,665 |
|
|
$ |
20,548 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues |
|
|
6.3 |
% |
|
|
4.5 |
% |
|
|
15.5 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) |
|
|
20.7 |
% |
|
|
18.8 |
% |
|
|
19.3 |
% |
|
|
17.2 |
% |
TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) |
||||||||
|
|
2024 |
||||||
(Dollars in millions) |
|
Q4 |
|
YTD |
||||
Net cash provided by (used in) operating activities |
|
$ |
(331 |
) |
|
$ |
2,047 |
|
Purchases of property and equipment |
|
|
(330 |
) |
|
|
(931 |
) |
Free cash flow |
|
$ |
(661 |
) |
|
$ |
1,116 |
|
|
|
|
|
|
||||
Net cash provided by (used in) investing activities |
|
$ |
(372 |
) |
|
$ |
3,429 |
|
Net cash used in financing activities |
|
$ |
(372 |
) |
|
$ |
(3,685 |
) |
|
|
|
|
|
||||
Net cash provided by (used in) operating activities |
|
$ |
(331 |
) |
|
$ |
2,047 |
|
Less: |
|
|
|
|
||||
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
|
(34 |
) |
|
|
(153 |
) |
Adjusted net cash provided by (used in) operating activities |
|
|
(297 |
) |
|
|
2,200 |
|
Purchases of property and equipment |
|
|
(330 |
) |
|
|
(931 |
) |
Adjusted free cash flow |
|
$ |
(627 |
) |
|
$ |
1,269 |
|
|
|
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 |
|
$ |
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 |
|
|
873 |
|
|
|
2,528 |
|
Purchases of property and equipment |
|
|
(208 |
) |
|
|
(751 |
) |
Adjusted free cash flow |
|
$ |
665 |
|
|
$ |
1,777 |
|
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 to Common Shareholders (Unaudited) |
|||||||||
|
|
|
FY 2025 |
||||||
(Dollars in millions, except per share amounts) |
|
|
Low |
|
High |
||||
Net income available to Tenet Healthcare Corporation common shareholders |
|
|
$ |
1,040 |
|
|
$ |
1,185 |
|
Less: |
|
|
|
|
|
||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) |
|
|
|
(100 |
) |
|
|
(50 |
) |
Tax and noncontrolling interests impact of above items |
|
|
|
25 |
|
|
|
15 |
|
Adjusted net income available to common shareholders |
|
|
$ |
1,115 |
|
|
$ |
1,220 |
|
|
|
|
|
|
|
||||
Diluted earnings per share |
|
|
$ |
10.95 |
|
|
$ |
12.47 |
|
Less: |
|
|
|
|
|
||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
|
|
(1.05 |
) |
|
|
(0.53 |
) |
Tax and noncontrolling interests impact of above items |
|
|
|
0.26 |
|
|
|
0.16 |
|
Adjusted diluted earnings per share |
|
|
$ |
11.74 |
|
|
$ |
12.84 |
|
|
|
|
|
|
|
||||
Weighted average basic shares outstanding (in thousands) |
|
|
|
94,000 |
|
|
|
94,000 |
|
Weighted average dilutive shares outstanding (in thousands) |
|
|
|
95,000 |
|
|
|
95,000 |
|
(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. |
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) |
|||||||||
|
|
|
FY 2025 |
||||||
(Dollars in millions) |
|
|
Low |
|
High |
||||
Net income available to Tenet Healthcare Corporation common shareholders |
|
|
$ |
1,040 |
|
|
$ |
1,185 |
|
Less: |
|
|
|
|
|
||||
Net income available to noncontrolling interests |
|
|
|
(910 |
) |
|
|
(960 |
) |
Income tax expense |
|
|
|
(420 |
) |
|
|
(465 |
) |
Interest expense |
|
|
|
(805 |
) |
|
|
(795 |
) |
Other non-operating income, net |
|
|
|
105 |
|
|
|
115 |
|
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) |
|
|
|
(100 |
) |
|
|
(50 |
) |
Depreciation and amortization |
|
|
|
(805 |
) |
|
|
(835 |
) |
Adjusted EBITDA |
|
|
$ |
3,975 |
|
|
$ |
4,175 |
|
|
|
|
|
|
|
||||
Net income available to Tenet Healthcare Corporation common shareholders |
|
|
$ |
1,040 |
|
|
$ |
1,185 |
|
Net operating revenues |
|
|
$ |
20,600 |
|
|
$ |
21,000 |
|
Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues |
|
|
|
5.0 |
% |
|
|
5.6 |
% |
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) |
|
|
|
19.3 |
% |
|
|
19.9 |
% |
(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. |
TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow (Unaudited) |
||||||||
|
|
FY 2025 |
||||||
(Dollars in millions) |
|
Low |
|
High |
||||
Net cash provided by operating activities |
|
$ |
2,500 |
|
|
$ |
2,850 |
|
Purchases of property and equipment |
|
|
(700 |
) |
|
|
(800 |
) |
Free cash flow |
|
$ |
1,800 |
|
|
$ |
2,050 |
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
2,500 |
|
|
$ |
2,850 |
|
Less: |
|
|
|
|
||||
Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) |
|
|
(100 |
) |
|
|
(50 |
) |
Adjusted net cash provided by operating activities |
|
|
2,600 |
|
|
|
2,900 |
|
Purchases of property and equipment |
|
|
(700 |
) |
|
|
(800 |
) |
Adjusted free cash flow(2) |
|
$ |
1,900 |
|
|
$ |
2,100 |
|
(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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212977320/en/
Investor Contact
Will McDowell
469-893-2387
william.mcdowell@tenethealth.com
Media Contact
Robert Dyer
469-893-2640
mediarelations@tenethealth.com
Source: Tenet Healthcare Corporation
FAQ
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