99.1展品陳列。
Tenet報告2024年第三季度強勁業績；
提高2024年財務展望
•2024年第三季度可供普通股東使用的淨利潤爲47200萬美元，每股稀釋收益爲4.89美元，包括小數股份在內，其中包括一個稅後收益爲20900萬美元，每股稀釋收益爲2.16美元，主要與先前宣佈的醫院出售相關。
•Adjusted diluted earnings per share1 2024年第三季度價格爲$2.93
•合併調整後息稅折舊及攤銷前利潤1 2024年第三季度的97800萬美元比2023年第三季度增加了14.5%
•2024年第三季度門診護理調整後EBITDA達到4,3900萬美元，比2023年第三季度增長了18.6%
•2024財年調整後的EBITDA預期區間現預計爲39億到40億美元，增加5000萬美元
達拉斯 — 2024年10月29日 — 泰尼特醫療保健公司（Tenet）（紐交所：THC）今天宣佈了截至2024年9月30日的季度業績。
我們的業務持續取得強勁業績，產生強勁的自由現金流，同店營業收入增長和盈利能力遠超我們的預期，這要歸功於我們策略的專注執行和紀律的運營，"泰尼特的董事長兼首席執行官Saum Sutaria 說。"我們進一步推動了我們的投資組合轉型，並已做好了爲我們的患者、醫生合作伙伴和股東提供增值的準備。"
第1頁
2024年第三季度的Tenet業績與2023年第三季度的情況如下：
| 截至9月30日的三個月 | 截至9月30日的九個月內， | |||||||||||||
| （金額以百萬美元計，每股結果除外） | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 營業淨收入 | $5,122 | $5,066 | $15,593 | $15,169 | ||||||||||
| 淨利潤可供Tenet普通股東使用 | $472 | $101 | $2,882 | $367 | ||||||||||
| 每股攤薄後可供Tenet普通股東使用的淨利潤 | $4.89 | $0.94 | $29.27 | $3.41 | ||||||||||
調整後的EBITDA1 | $978 | $854 | $2,947 | $2,529 | ||||||||||
Adjusted diluted earnings per share1 | $2.93 | $1.44 | $8.47 | $4.30 | ||||||||||
•2024年第三季度可供公司普通股股東使用的淨利潤爲4.72億美元，每股攤薄盈利爲4.89美元，而2023年第三季度爲10100萬美元，每股攤薄盈利爲0.94美元。2024年第三季度的業績中包括一項34800萬美元的稅前收益（稅後20900萬美元，每股攤薄盈利爲2.16美元），主要與在阿拉巴馬州出售公司持有的Brookwood Baptist Health 70%的大部分股權有關。
•調整後的EBITDA1 2024年第三季度的收入爲9.78億美元，而2023年第三季度爲8.54億美元，反映出同醫院入院人數增長強勁，門診淨營業收入每病例增長強勁，支付方組合有利，密歇根州醫療補充收入增加，部分抵消了較高的醫療費用以及醫院剝離的影響。
第2頁
資產負債表和現金流量表
•2024年9月30日結束的九個月經營活動產生的現金流爲23.78億美元，而2023年9月30日結束的九個月爲15.5億美元。
•公司產生了自由現金流1 截至2024年9月30日的九個月產生了17.77億美元，而截至2023年9月30日的九個月產生了10.07億美元。
•2024年9月30日結束的三個月內，公司回購了795,112股普通股，總價值1.24億美元。2024年9月30日結束的九個月內，公司回購了5,596,573股普通股，總價值6.72億美元。
•公司的淨債務與調整後息稅折舊攤銷前利潤(Adjusted EBITDA)比率1 2024年9月30日爲2.22倍，而2024年6月30日爲2.61倍，2023年12月31日爲3.89倍。
最近交易記錄
•2024年10月1日，該公司宣佈已完成將其在亞拉巴馬州伯明翰的Brookwood Baptist Health擁有的70%多數股權出售給奧蘭多醫療公司的交易。 已完成的交易包括五家醫院和其他相關運營。 我們對2024年全年營業活動現金淨額和自由現金流的展望。1 現在反映了預計支付約17500萬美元的所得稅，主要是與出售這些設施所獲得的淨利潤有關。
第3頁
門診護理（門診）部門
Tenet的門診業務部門由United Surgical Partners International (USPI)的運營組成。截至2024年9月30日，USPI在37個州擁有520家門診手術中心（合併376家）和24家外科醫院（合併7家）。
| 截至9月30日的三個月 | 截至9月30日的九個月內， | |||||||||||||
門診業務部門成果 （單位：百萬美元） | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 收入 | ||||||||||||||
| 營業淨收入 | $1,139 | $941 | $3,275 | $2,788 | ||||||||||
同一設施全系統淨病人服務收入2 | $1,895 | $1,744 | $5,516 | $5,133 | ||||||||||
| 成交量變化與上年同期相比 | ||||||||||||||
同一設施全系統外科手術案例2 | 1.0 | % | 4.1 | % | 0.4 | % | 6.2 | % | ||||||
同一設施全系統外科手術案例以同一業務日爲基礎2 | (0.6) | % | 5.8 | % | (0.1) | % | 6.8 | % | ||||||
| 調整後的EBITDA、利潤率和新華保險 | ||||||||||||||
| 調整後EBITDA | $439 | $370 | $1,280 | $1,080 | ||||||||||
| 調整後的EBITDA率 | 38.5% | 39.3% | 39.1% | 38.7% | ||||||||||
| 調整後的EBITDA減去新華保險 | $265 | $233 | $779 | $678 | ||||||||||
•2024年第三季度淨營業收入較2023年第三季度增長21.0%，這是由於淨收入增長強勁，設施收購和服務項目增加推動。
•2024年第三季度，手術業務同一設施系統範圍內的淨患者服務收入比2023年第三季度增長了8.7％，病例數量增加了1.0％，每例淨收入增加了7.6％。每例淨收入的增長是由有利病例結構和有利付款人結構帶來的更高嚴重程度所推動的。
•2024年第三季度調整後的EBITDA比2023年第三季度增長了18.6%，這是由於單位淨收入增長強勁、開支管理紀律嚴明，以及收購和全新設施的貢獻。
第4頁
醫院運營和服務（醫院）部門
Tenet的醫院業務板塊主要包括急救和專科醫院、影像中心、輔助門診設施、微型醫院和醫師診所。它還提供全面的端對端和專注的服務，包括醫院和醫師的營業收入循環管理、患者通信與參與支持，以及基於價值的護理解決方案。
| 截至9月30日的三個月 | 截至9月30日的九個月內， | |||||||||||||
醫院部門結果 （單位：百萬美元） | 2024 | 2023 | 2024 | 2023 | ||||||||||
收入 | ||||||||||||||
營業淨收入 | $3,983 | $4,125 | $12,318 | $12,381 | ||||||||||
同醫院患者服務淨收入3 | $3,383 | $3,190 | $10,298 | $9,507 | ||||||||||
同醫院成交量變化與去年同期相比 | ||||||||||||||
入院人數 | 5.2% | 0.6% | 4.9% | 2.6% | ||||||||||
調整後的入院人次4 | 2.7% | 0.4% | 2.3% | 3.3% | ||||||||||
門診就診（包括門診急診就診） | 0.5% | (2.0)% | 0.1% | (1.0)% | ||||||||||
急診室就診（住院和門診） | (0.2)% | (0.9)% | 1.8% | 1.3% | ||||||||||
醫院手術 | 0.6% | (0.7)% | —% | 0.5% | ||||||||||
| 調整後的EBITDA | ||||||||||||||
調整後EBITDA | $539 | $484 | $1,667 | $1,449 | ||||||||||
調整後的EBITDA利潤率 | 13.5% | 11.7% | 13.5% | 11.7% | ||||||||||
•2024年第三季度淨營業收入較2023年第三季度下降3.4%，主要是由於2024年第一季度醫院出售的影響，部分被同一醫院入院量增長、有利的付款人混合比例和價格收益改善所抵消。
•Same-hospital net patient service revenue per adjusted admission increased 3.3% year-over-year for third quarter 2024 primarily due to improved pricing yield, favorable payer mix, and our focus on growing higher acuity services.
•Adjusted EBITDA in third quarter 2024 was $539 million compared to $484 million in third quarter 2023, reflecting strong same-hospital admissions growth and revenue per adjusted admission, favorable payer mix, and increased supplemental revenues in Michigan, partially offset by higher medical fees as well as the impact of hospital divestitures.
Page 5
2024 Outlook1
Tenet’s Outlook for full year 2024 (consolidated and by segment) and fourth quarter 2024 follows. This outlook reflects the sale of three Coastal South Carolina hospitals on January 31, 2024, the sale of six California hospitals on March 31, 2024, and the sale of five Alabama hospitals on September 30, 2024.
CONSOLIDATED ($ in millions, except per share amounts) | FY 2024 Outlook | Fourth Quarter 2024 Outlook | |||||||||
| Net operating revenues | $20,600 to $20,800 | $5,007 to $5,207 | |||||||||
| Net income available to Tenet common stockholders | $3,093 to $3,193 | $211 to $311 | |||||||||
| Adjusted EBITDA | $3,900 to $4,000 | $953 to $1,053 | |||||||||
| Adjusted EBITDA margin | 18.9% to 19.2% | 19.0% to 20.2% | |||||||||
| Diluted income per common share | $31.56 to $32.58 | $2.20 to $3.24 | |||||||||
| Adjusted net income | $1,090 to $1,150 | $258 to $318 | |||||||||
| Adjusted diluted earnings per share | $11.12 to $11.73 | $2.69 to $3.31 | |||||||||
| Equity in earnings of unconsolidated affiliates | $260 to $270 | $78 to $88 | |||||||||
| Depreciation and amortization | $820 to $840 | $195 to $215 | |||||||||
| Interest expense | $820 to $830 | $197 to $207 | |||||||||
Income tax expense5 | $1,185 to $1,215 | $84 to $114 | |||||||||
| Net income available to NCI | $835 to $855 | $225 to $245 | |||||||||
| Weighted average diluted common shares | ~98 million | ~96 million | |||||||||
| NCI cash distributions | $725 to $775 | ||||||||||
Net cash provided by operating activities6 | $1,775 to $2,125 | ||||||||||
Adjusted net cash provided by operating activities6 | $1,950 to $2,250 | ||||||||||
| Capital expenditures | $800 to $900 | ||||||||||
Free cash flow6 | $975 to $1,225 | ||||||||||
Adjusted free cash flow6 | $1,150 to $1,350 | ||||||||||
Page 6
Ambulatory Segment ($ in millions) | FY 2024 Outlook | ||||
| Net operating revenues | $4,375 to $4,425 | ||||
| Adjusted EBITDA | $1,760 to $1,800 | ||||
| NCI | $690 to $710 | ||||
| Adjusted EBITDA less NCI | $1,070 to $1,090 | ||||
Changes versus prior year7: | |||||
| Surgical cases volumes | Up 0.0% to 1.0% | ||||
| Net revenues per surgical case | Up 6.0% to 7.0% | ||||
Hospital Segment ($ in millions) | FY 2024 Outlook | ||||
| Net operating revenues | $16,225 to $16,375 | ||||
| Adjusted EBITDA | $2,140 to $2,200 | ||||
| NCI | $145 to $145 | ||||
Changes versus prior year7: | |||||
| Inpatient admissions | Up 4.0% to 5.0% | ||||
| Adjusted admissions | Up 1.5% to 2.5% | ||||
Management’s Webcast Discussion of Results
Tenet management will discuss the Company’s third quarter 2024 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on October 29, 2024. 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 October 29, 2024.
Page 7
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
1.Tables and discussions throughout this earnings release include certain financial measures, including those related to our fourth quarter and full year 2024 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.
2.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.
3.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 September 30, 2024. Amounts associated with physician practices are excluded.
4.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.
5.Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% 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.
6.For 2024, Outlook for net cash provided by operating activities, Adjusted net cash provided by operating activities, Free cash flow and Adjusted free cash flow include an estimate of approximately $875 million of net income tax payments associated with the gains on sale of the three hospitals and related operations in South Carolina, the six hospitals and related operations in California, and the five hospitals and related operations in Alabama, approximately $175 million of which have already been paid as of September 30, 2024.
7.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.
Page 8
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.
Contact Information
| Investor Contact | Media Contact | |||||||
| Will McDowell | Robert Dyer | |||||||
| 469-893-2387 | 469-893-2640 | |||||||
| william.mcdowell@tenethealth.com | mediarelations@tenethealth.com | |||||||
Page 9
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.
Page 10
Tenet Healthcare Corporation
Financial Statements and Reconciliations
Third Quarter Earnings Release
Table of Contents
| Description | Page | ||||
12 | |||||
Page 11
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| (Dollars in millions, except per share amounts) | Three Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2024 | % | 2023 | % | Change | ||||||||||||||||||||||||||||
| Net operating revenues | $ | 5,122 | 100.0 | % | $ | 5,066 | 100.0 | % | 1.1 | % | ||||||||||||||||||||||
| Grant income | 4 | 0.1 | % | 3 | 0.1 | % | 33.3 | % | ||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | 62 | 1.2 | % | 51 | 1.0 | % | 21.6 | % | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 2,218 | 43.3 | % | 2,288 | 45.2 | % | (3.1) | % | ||||||||||||||||||||||||
| Supplies | 881 | 17.2 | % | 877 | 17.3 | % | 0.5 | % | ||||||||||||||||||||||||
| Other operating expenses, net | 1,111 | 21.6 | % | 1,101 | 21.7 | % | 0.9 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 209 | 4.1 | % | 224 | 4.5 | % | ||||||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 19 | 0.4 | % | 47 | 0.9 | % | ||||||||||||||||||||||||||
| Litigation and investigation costs | 9 | 0.2 | % | 14 | 0.3 | % | ||||||||||||||||||||||||||
| Net losses (gains) on sales, consolidation and deconsolidation of facilities | (348) | (6.8) | % | 1 | — | % | ||||||||||||||||||||||||||
| Operating income | 1,089 | 21.3 | % | 568 | 11.2 | % | ||||||||||||||||||||||||||
| Interest expense | (202) | (227) | ||||||||||||||||||||||||||||||
| Other non-operating income, net | 35 | 4 | ||||||||||||||||||||||||||||||
| Income before income taxes | 922 | 345 | ||||||||||||||||||||||||||||||
| Income tax expense | (241) | (79) | ||||||||||||||||||||||||||||||
| Net income | 681 | 266 | ||||||||||||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 209 | 165 | ||||||||||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 472 | $ | 101 | ||||||||||||||||||||||||||||
| Earnings per share available to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||||||||||||
| Basic | $ | 4.93 | $ | 0.99 | ||||||||||||||||||||||||||||
| Diluted | $ | 4.89 | $ | 0.94 | ||||||||||||||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||||||||||||
| Basic | 95,665 | 101,544 | ||||||||||||||||||||||||||||||
| Diluted | 96,652 | 104,425 | ||||||||||||||||||||||||||||||
Page 12
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| (Dollars in millions, except per share amounts) | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2024 | % | 2023 | % | Change | ||||||||||||||||||||||||||||
| Net operating revenues | $ | 15,593 | 100.0 | % | $ | 15,169 | 100.0 | % | 2.8 | % | ||||||||||||||||||||||
| Grant income | 9 | 0.1 | % | 14 | 0.1 | % | (35.7) | % | ||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | 182 | 1.2 | % | 155 | 1.0 | % | 17.4 | % | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 6,707 | 43.0 | % | 6,831 | 45.0 | % | (1.8) | % | ||||||||||||||||||||||||
| Supplies | 2,717 | 17.4 | % | 2,659 | 17.5 | % | 2.2 | % | ||||||||||||||||||||||||
| Other operating expenses, net | 3,413 | 22.0 | % | 3,319 | 21.9 | % | 2.8 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 625 | 4.0 | % | 654 | 4.3 | % | ||||||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 75 | 0.5 | % | 84 | 0.6 | % | ||||||||||||||||||||||||||
| Litigation and investigation costs | 18 | 0.1 | % | 28 | 0.2 | % | ||||||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | (2,906) | (18.6) | % | (12) | (0.1) | % | ||||||||||||||||||||||||||
| Operating income | 5,135 | 32.9 | % | 1,775 | 11.7 | % | ||||||||||||||||||||||||||
| Interest expense | (623) | (674) | ||||||||||||||||||||||||||||||
| Other non-operating income, net | 89 | 8 | ||||||||||||||||||||||||||||||
| Loss from early extinguishment of debt | (8) | (11) | ||||||||||||||||||||||||||||||
| Income before income taxes | 4,593 | 1,098 | ||||||||||||||||||||||||||||||
| Income tax expense | (1,101) | (243) | ||||||||||||||||||||||||||||||
| Net income | 3,492 | 855 | ||||||||||||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 610 | 488 | ||||||||||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 2,882 | $ | 367 | ||||||||||||||||||||||||||||
| Earnings per share available to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||||||||||||
| Basic | $ | 29.56 | $ | 3.60 | ||||||||||||||||||||||||||||
| Diluted | $ | 29.27 | $ | 3.41 | ||||||||||||||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||||||||||||
| Basic | 97,505 | 101,869 | ||||||||||||||||||||||||||||||
| Diluted | 98,518 | 105,021 | ||||||||||||||||||||||||||||||
Page 13
TENET HEALTHCARE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Dollars in millions) | September 30, | December 31, | ||||||||||||
| 2024 | 2023 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 4,094 | $ | 1,228 | ||||||||||
| Accounts receivable | 2,598 | 2,914 | ||||||||||||
| Inventories of supplies, at cost | 356 | 411 | ||||||||||||
| Assets held for sale | 20 | 775 | ||||||||||||
| Other current assets | 1,691 | 1,839 | ||||||||||||
Total current assets | 8,759 | 7,167 | ||||||||||||
| Investments and other assets | 3,064 | 3,157 | ||||||||||||
| Deferred income taxes | 36 | 77 | ||||||||||||
| Property and equipment, at cost, less accumulated depreciation and amortization | 5,552 | 6,236 | ||||||||||||
| Goodwill | 10,588 | 10,307 | ||||||||||||
| Other intangible assets, at cost, less accumulated amortization | 1,373 | 1,368 | ||||||||||||
Total assets | $ | 29,372 | $ | 28,312 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Current portion of long-term debt | $ | 95 | $ | 120 | ||||||||||
| Accounts payable | 1,265 | 1,408 | ||||||||||||
| Accrued compensation and benefits | 879 | 930 | ||||||||||||
| Professional and general liability reserves | 286 | 254 | ||||||||||||
| Accrued interest payable | 248 | 200 | ||||||||||||
| Liabilities held for sale | 12 | 69 | ||||||||||||
| Income tax payable | 826 | 23 | ||||||||||||
| Other current liabilities | 1,927 | 1,756 | ||||||||||||
Total current liabilities | 5,538 | 4,760 | ||||||||||||
| Long-term debt, net of current portion | 12,776 | 14,882 | ||||||||||||
| Professional and general liability reserves | 855 | 792 | ||||||||||||
| Defined benefit plan obligations | 308 | 335 | ||||||||||||
| Deferred income taxes | 260 | 326 | ||||||||||||
| Other long-term liabilities | 1,560 | 1,709 | ||||||||||||
Total liabilities | 21,297 | 22,804 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 2,649 | 2,391 | ||||||||||||
| Equity: | ||||||||||||||
| Shareholders’ equity: | ||||||||||||||
| Common stock | 8 | 8 | ||||||||||||
| Additional paid-in capital | 4,849 | 4,834 | ||||||||||||
| Accumulated other comprehensive loss | (175) | (181) | ||||||||||||
| Retained earnings (accumulated deficit) | 2,690 | (192) | ||||||||||||
| Common stock in treasury, at cost | (3,538) | (2,861) | ||||||||||||
| Total shareholders’ equity | 3,834 | 1,608 | ||||||||||||
Noncontrolling interests | 1,592 | 1,509 | ||||||||||||
| Total equity | 5,426 | 3,117 | ||||||||||||
Total liabilities and equity | $ | 29,372 | $ | 28,312 | ||||||||||
Page 14
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| (Dollars in millions) | Nine Months Ended | |||||||||||||
| September 30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Net income | $ | 3,492 | $ | 855 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 625 | 654 | ||||||||||||
| Deferred income tax expense (benefit) | (29) | 75 | ||||||||||||
| Stock-based compensation expense | 52 | 48 | ||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 75 | 84 | ||||||||||||
| Litigation and investigation costs | 18 | 28 | ||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | (2,906) | (12) | ||||||||||||
| Loss from early extinguishment of debt | 8 | 11 | ||||||||||||
| Equity in earnings of unconsolidated affiliates, net of distributions received | (9) | 5 | ||||||||||||
| Amortization of debt discount and debt issuance costs | 21 | 25 | ||||||||||||
| Net gains from the sale of investments and long-lived assets | (2) | (25) | ||||||||||||
| Other items, net | (3) | (1) | ||||||||||||
| Changes in cash from operating assets and liabilities: | ||||||||||||||
| Accounts receivable | 183 | 31 | ||||||||||||
| Inventories and other current assets | 10 | (49) | ||||||||||||
| Income taxes | 821 | (46) | ||||||||||||
| Accounts payable, accrued expenses and other current liabilities | 123 | (38) | ||||||||||||
| Other long-term liabilities | 18 | 10 | ||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (119) | (105) | ||||||||||||
| Net cash provided by operating activities | 2,378 | 1,550 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property and equipment | (601) | (543) | ||||||||||||
| Purchases of businesses or joint venture interests, net of cash acquired | (524) | (110) | ||||||||||||
| Proceeds from sales of facilities and other assets | 4,965 | 38 | ||||||||||||
| Proceeds from sales of marketable securities and long-term investments | 25 | 40 | ||||||||||||
| Purchases of marketable securities and long-term investments | (46) | (54) | ||||||||||||
| Other items, net | (18) | (7) | ||||||||||||
| Net cash provided by (used in) investing activities | 3,801 | (636) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Repayments of borrowings | (2,212) | (1,478) | ||||||||||||
| Proceeds from borrowings | 16 | 1,368 | ||||||||||||
| Repurchases of common stock | (672) | (90) | ||||||||||||
| Debt issuance costs | — | (16) | ||||||||||||
| Distributions paid to noncontrolling interests | (496) | (425) | ||||||||||||
| Proceeds from the sale of noncontrolling interests | 13 | 37 | ||||||||||||
| Purchases of noncontrolling interests | (127) | (127) | ||||||||||||
| Advances from managed care payers | 342 | — | ||||||||||||
| Repayments of advances from managed care payers | (160) | — | ||||||||||||
| Other items, net | (17) | 13 | ||||||||||||
| Net cash used in financing activities | (3,313) | (718) | ||||||||||||
| Net increase in cash and cash equivalents | 2,866 | 196 | ||||||||||||
| Cash and cash equivalents at beginning of period | 1,228 | 858 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 4,094 | $ | 1,054 | ||||||||||
| Supplemental disclosures: | ||||||||||||||
| Interest paid, net of capitalized interest | $ | (555) | $ | (589) | ||||||||||
| Income tax payments, net | $ | (308) | $ | (212) | ||||||||||
Page 15
TENET HEALTHCARE CORPORATION
SEGMENT REPORTING
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 1,139 | $ | 941 | $ | 3,275 | $ | 2,788 | ||||||||||||||||||
| Hospital Operations and Services | 3,983 | 4,125 | 12,318 | 12,381 | ||||||||||||||||||||||
| Total | $ | 5,122 | $ | 5,066 | $ | 15,593 | $ | 15,169 | ||||||||||||||||||
| Equity in earnings of unconsolidated affiliates: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 61 | $ | 50 | $ | 175 | $ | 149 | ||||||||||||||||||
| Hospital Operations and Services | 1 | 1 | 7 | 6 | ||||||||||||||||||||||
| Total | $ | 62 | $ | 51 | $ | 182 | $ | 155 | ||||||||||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 439 | $ | 370 | $ | 1,280 | $ | 1,080 | ||||||||||||||||||
| Hospital Operations and Services | 539 | 484 | 1,667 | 1,449 | ||||||||||||||||||||||
| Total | $ | 978 | $ | 854 | $ | 2,947 | $ | 2,529 | ||||||||||||||||||
| Adjusted EBITDA margins: | ||||||||||||||||||||||||||
| Ambulatory Care | 38.5 | % | 39.3 | % | 39.1 | % | 38.7 | % | ||||||||||||||||||
| Hospital Operations and Services | 13.5 | % | 11.7 | % | 13.5 | % | 11.7 | % | ||||||||||||||||||
| Total | 19.1 | % | 16.9 | % | 18.9 | % | 16.7 | % | ||||||||||||||||||
| Capital expenditures: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 28 | $ | 20 | $ | 65 | $ | 58 | ||||||||||||||||||
| Hospital Operations and Services | 188 | 156 | 536 | 485 | ||||||||||||||||||||||
| Total | $ | 216 | $ | 176 | $ | 601 | $ | 543 | ||||||||||||||||||
Page 16
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 | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 472 | $ | 101 | $ | 2,882 | $ | 367 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Impairment and restructuring charges, and acquisition-related costs | (19) | (47) | (75) | (84) | ||||||||||||||||||||||
| Litigation and investigation costs | (9) | (14) | (18) | (28) | ||||||||||||||||||||||
| Net gains (losses) on sales, consolidation and deconsolidation of facilities | 348 | (1) | 2,906 | 12 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | — | — | (8) | (11) | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | (130) | 10 | (755) | 17 | ||||||||||||||||||||||
| Adjusted net income available to common shareholders | $ | 282 | $ | 153 | $ | 832 | $ | 461 | ||||||||||||||||||
| Diluted earnings per share | $ | 4.89 | $ | 0.94 | $ | 29.27 | $ | 3.41 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Impairment and restructuring charges, and acquisition-related costs | (0.20) | (0.45) | (0.76) | (0.80) | ||||||||||||||||||||||
| Litigation and investigation costs | (0.09) | (0.13) | (0.19) | (0.27) | ||||||||||||||||||||||
| Net gains (losses) on sales, consolidation and deconsolidation of facilities | 3.60 | (0.01) | 29.50 | 0.12 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | — | — | (0.08) | (0.10) | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | (1.35) | 0.09 | (7.67) | 0.16 | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 2.93 | $ | 1.44 | $ | 8.47 | $ | 4.30 | ||||||||||||||||||
| Weighted average basic shares outstanding (in thousands) | 95,665 | 101,544 | 97,505 | 101,869 | ||||||||||||||||||||||
| Weighted average dilutive shares outstanding (in thousands) | 96,652 | 104,425 | 98,518 | 105,021 | ||||||||||||||||||||||
Page 17
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 | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 472 | $ | 101 | $ | 2,882 | $ | 367 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Net income available to noncontrolling interests | (209) | (165) | (610) | (488) | ||||||||||||||||||||||
| Net income | 681 | 266 | 3,492 | 855 | ||||||||||||||||||||||
| Income tax expense | (241) | (79) | (1,101) | (243) | ||||||||||||||||||||||
| Loss from early extinguishment of debt | — | — | (8) | (11) | ||||||||||||||||||||||
| Other non-operating income, net | 35 | 4 | 89 | 8 | ||||||||||||||||||||||
| Interest expense | (202) | (227) | (623) | (674) | ||||||||||||||||||||||
| Operating income | 1,089 | 568 | 5,135 | 1,775 | ||||||||||||||||||||||
| Litigation and investigation costs | (9) | (14) | (18) | (28) | ||||||||||||||||||||||
| Net gains (losses) on sales, consolidation and deconsolidation of facilities | 348 | (1) | 2,906 | 12 | ||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | (19) | (47) | (75) | (84) | ||||||||||||||||||||||
| Depreciation and amortization | (209) | (224) | (625) | (654) | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 978 | $ | 854 | $ | 2,947 | $ | 2,529 | ||||||||||||||||||
| Net operating revenues | $ | 5,122 | $ | 5,066 | $ | 15,593 | $ | 15,169 | ||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues | 9.2 | % | 2.0 | % | 18.5 | % | 2.4 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 19.1 | % | 16.9 | % | 18.9 | % | 16.7 | % | ||||||||||||||||||
Page 18
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
(Unaudited)
| 2024 | ||||||||||||||
| (Dollars in millions) | Q3 | YTD | ||||||||||||
| Net cash provided by operating activities | $ | 1,045 | $ | 2,378 | ||||||||||
| Purchases of property and equipment | (216) | (601) | ||||||||||||
| Free cash flow | $ | 829 | $ | 1,777 | ||||||||||
| Net cash provided by investing activities | $ | 667 | $ | 3,801 | ||||||||||
| Net cash used in financing activities | $ | (498) | $ | (3,313) | ||||||||||
| Net cash provided by operating activities | $ | 1,045 | $ | 2,378 | ||||||||||
| Less: | ||||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (55) | (119) | ||||||||||||
| Adjusted net cash provided by operating activities | 1,100 | 2,497 | ||||||||||||
| Purchases of property and equipment | (216) | (601) | ||||||||||||
| Adjusted free cash flow | $ | 884 | $ | 1,896 | ||||||||||
| 2023 | ||||||||||||||
| (Dollars in millions) | Q3 | YTD | ||||||||||||
| Net cash provided by operating activities | $ | 503 | $ | 1,550 | ||||||||||
| Purchases of property and equipment | (176) | (543) | ||||||||||||
| Free cash flow | $ | 327 | $ | 1,007 | ||||||||||
| Net cash used in investing activities | $ | (169) | $ | (636) | ||||||||||
| Net cash used in financing activities | $ | (214) | $ | (718) | ||||||||||
| Net cash provided by operating activities | $ | 503 | $ | 1,550 | ||||||||||
| Less: | ||||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (27) | (105) | ||||||||||||
| Adjusted net cash provided by operating activities | 530 | 1,655 | ||||||||||||
| Purchases of property and equipment | (176) | (543) | ||||||||||||
| Adjusted free cash flow | $ | 354 | $ | 1,112 | ||||||||||
Page 19
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)
| Fourth Quarter 2024 | FY 2024 | |||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Low | High | Low | High | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 211 | $ | 311 | $ | 3,093 | $ | 3,193 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) | (57) | (7) | (150) | (100) | ||||||||||||||||||||||
Net gains on sales, consolidation and deconsolidation of facilities(2) | — | — | 2,906 | 2,906 | ||||||||||||||||||||||
Loss from early extinguishment of debt(2) | — | — | (8) | (8) | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | 10 | — | (745) | (755) | ||||||||||||||||||||||
| Adjusted net income available to common shareholders | $ | 258 | $ | 318 | $ | 1,090 | $ | 1,150 | ||||||||||||||||||
| Diluted earnings per share | $ | 2.20 | $ | 3.24 | $ | 31.56 | $ | 32.58 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements | (0.59) | (0.07) | (1.53) | (1.02) | ||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | — | — | 29.65 | 29.65 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | — | — | (0.08) | (0.08) | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | 0.10 | — | (7.60) | (7.70) | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 2.69 | $ | 3.31 | $ | 11.12 | $ | 11.73 | ||||||||||||||||||
| Weighted average basic shares outstanding (in thousands) | 95,000 | 95,000 | 97,000 | 97,000 | ||||||||||||||||||||||
| Weighted average dilutive shares outstanding (in thousands) | 96,000 | 96,000 | 98,000 | 98,000 | ||||||||||||||||||||||
(1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. 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. | ||||||||||||||||||||||||||
(2) The Company does not generally forecast net gains on sales, consolidation and deconsolidation of facilities or losses from the early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2024. | ||||||||||||||||||||||||||
Page 20
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)
| Fourth Quarter 2024 | FY 2024 | |||||||||||||||||||||||||
| (Dollars in millions) | Low | High | Low | High | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 211 | $ | 311 | $ | 3,093 | $ | 3,193 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Net income available to noncontrolling interests | (225) | (245) | (835) | (855) | ||||||||||||||||||||||
| Income tax expense | (84) | (114) | (1,185) | (1,215) | ||||||||||||||||||||||
| Interest expense | (207) | (197) | (830) | (820) | ||||||||||||||||||||||
Loss from early extinguishment of debt(2) | — | — | (8) | (8) | ||||||||||||||||||||||
| Other non-operating income, net | 26 | 36 | 115 | 125 | ||||||||||||||||||||||
Net gains on sales, consolidation and deconsolidation of facilities(2) | — | — | 2,906 | 2,906 | ||||||||||||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) | (57) | (7) | (150) | (100) | ||||||||||||||||||||||
| Depreciation and amortization | (195) | (215) | (820) | (840) | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 953 | $ | 1,053 | $ | 3,900 | $ | 4,000 | ||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 211 | $ | 311 | $ | 3,093 | $ | 3,193 | ||||||||||||||||||
| Net operating revenues | $ | 5,007 | $ | 5,207 | $ | 20,600 | $ | 20,800 | ||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues | 4.2 | % | 6.0 | % | 15.0 | % | 15.4 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 19.0 | % | 20.2 | % | 18.9 | % | 19.2 | % | ||||||||||||||||||
(1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. 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. | ||||||||||||||||||||||||||
(2) The Company does not generally forecast net gains on sales, consolidation and deconsolidation of facilities or losses from the early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2024. | ||||||||||||||||||||||||||
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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
to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow
(Unaudited)
| FY 2024 | ||||||||||||||
| (Dollars in millions) | Low | High | ||||||||||||
| Net cash provided by operating activities | $ | 1,775 | $ | 2,125 | ||||||||||
| Purchases of property and equipment | (800) | (900) | ||||||||||||
| Free cash flow | $ | 975 | $ | 1,225 | ||||||||||
| Net cash provided by operating activities | $ | 1,775 | $ | 2,125 | ||||||||||
| Less: | ||||||||||||||
Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) | (175) | (125) | ||||||||||||
Adjusted net cash provided by operating activities | 1,950 | 2,250 | ||||||||||||
| Purchases of property and equipment | (800) | (900) | ||||||||||||
Adjusted free cash flow(2) | $ | 1,150 | $ | 1,350 | ||||||||||
(1) The figures shown represent the Company's estimate for restructuring payments plus the actual year-to-date payments for restructuring charges, acquisition-related costs, and litigation costs and settlements. 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. | ||||||||||||||
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