Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q3 2022 Earnings Presentation
19 slides from Tenet Healthcare's earnings presentation, Oct 20, 2022
Slide 1: Third Quarter 2022 Earnings Release Presentation
Third Quarter 2022 Earnings Release Presentation October 20, 2022
Slide 2: Cautionary Statements
Cautionary Statements This presentation includes “forward-looking statements.” These statements relate to future events, including, but not limited to, statements regarding our liquidity, operating results, future earnings, financial position, operational and strategic initiatives, and developments
Slide 3: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Share Repurchase Program ➢ Announced a $1 billion share repurchase program given our belief there is upside in our equity value Third Quarter 2022 Achievements ➢ Delivered consolidated Adjusted EBITDA of $841 million, above the midpoint of our third quarter Outlook rang
Slide 4: FY 2022 Financial Outlook ($ in millions)
FY 2022 Financial Outlook ($ in millions) Income Available (Loss Attributable) to Tenet Common Shareholders from Continuing Operations Consolidated Adjusted EBITDA $4,000 $3,375 to $3,483 $3,475 $1,200 $3,146 $2,730 $915 $3,000 $900 $366 to $600 $441 $399 $2,000 $300 ($226) $1,000 $0 ($300) $0 2019
Slide 5: Financial Profile Continues to Improve
Financial Profile Continues to Improve ADJUSTED ADJUSTED NET REVENUE ADJUSTED EBITDA EBITDA MARGIN FREE CASH FLOW DEBT LEVERAGE $19.1B $19.1B (a) 17.9% $1.421B (b) 5.9x $3.425B (a) 510 bps (2.0)x 12.8% 3.9x 40% $2.440B 188% $0.493B 2017 2022E 2017 2022E 2017 2022E 2017 2022E 2017 Q3’22 Note: 2022E i
Slide 6: Adjusted EBITDA With and Without Grant Income ($ in millions)
Adjusted EBITDA With and Without Grant Income ($ in millions) $ In millions Q1'21 Q2 '21 Q3'21 Q4 '21 2021 YTD Q1'22 Q2'22 Q3'22 2022 YTD Adjusted EBITDA Excluding Grant Income Hospital Segment $410 $445 $494 $440 $1,789 $510 $339 $378 $1,227 Ambulatory Segment $244 $275 $272 $343 $1,134 $280 $317 $
Slide 7: Certain Anticipated 2022 to 2023 EBITDA Bridge Items
Certain Anticipated 2022 to 2023 EBITDA Bridge Items Year over year items – favorable / (unfavorable) $ in millions YTD 2022 Grant Income $(154) Cybersecurity Incident 100 Gain on sale of medical office buildings (69) Gain on sale of GPO asset (45) Texas Medicaid revenue adjustment related to 2021 (
Slide 8: Third Quarter 2022 Cash Flows Continue to Support Growth
Third Quarter 2022 Cash Flows Continue to Support Growth $555M(a) 3.87x $1.21B $1.5B Third Quarter 2022 Unused Line of Leverage Ratio Cash on Hand Free Cash Flow Credit ▪ Our cash flow and balance sheet position us to drive growth and interest savings: ✓ Ample liquidity and access to capital markets
Slide 9: Third Quarter 2022 Cash Flow
Third Quarter 2022 Cash Flow Net cash generated by the business in Q3’22 was $385 million excluding cash received (repaid) from stimulus funding, and cash received from (used for) the transactions listed in the graph below. * Includes ~$46 million from the sale of a portion of our interest in assets
Slide 10: Capital Deployment Priorities
Capital Deployment Priorities We prioritize the deployment of the free cash flow generated by our businesses to the following areas: Investments in our ASC platform M&A and de novo investments – baseline intention is $250 million per year Investments in our Hospital Continued investment in technolog
Slide 11: Debt Maturity Profile – No Significant Maturities Until Q3'24
Debt Maturity Profile – No Significant Maturities Until Q3’24 Maturity Profile as of 9/30/22 ($ millions) $3,450 3,500 $3,100 2,000 $3,000 3,000 2,500 $2,100 1,500 2,000 2,500 1,500 $1,370 $1,400 1,000 770 1,500 1,450 500 $362 600 600 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 First Lien No
Slide 12: Questions and Answers
Questions and Answers Saum Sutaria, M.D. Chief Executive Officer Dan Cancelmi Executive Vice President and Chief Financial Officer 12
Slide 13: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations NON-GAAP FINANCIAL INFORMATION This presentation contains financial measures that are not in accordance accounting principles generally accepted in the United States of America (GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measures an
Slide 14: Tenet Healthcare Corporation
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 from Continuing Operations to Common Shareholders (Unaudited) 14
Slide 15: Tenet Healthcare Corporation
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) 15
Slide 16: Tenet Healthcare Corporation
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations (Unaudited) 16
Slide 17: Tenet Healthcare Corporation
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 from Continuing Operations to Common Shareholders (Unaudited) (1) The figu
Slide 18: Tenet Healthcare Corporation
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) (1) The Company does not generally forecast losses from the early extinguish
Slide 19: Tenet Healthcare Corporation
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow – Continuing Operations and Outlook Adjusted Free Cash Flow – Continuing Operations (Unaudited) (1) The figures shown re