Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q3 2021 Earnings Presentation
22 slides from Tenet Healthcare's earnings presentation, Oct 20, 2021
Slide 1: Third Quarter 2021 Earnings Release Presentation
Third Quarter 2021 Earnings Release Presentation October 20, 2021
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: FY 2021 Financial Outlook Increased Following Q3'21
FY 2021 Financial Outlook Increased Following Q3’21 ($ in millions) Income Available (Loss Attributable) to Tenet Common Shareholders from Continuing Operations Consolidated Adjusted EBITDA $3,500 $3,275 to $3,325 $3,146 $900 $773 to $818 $2,730 $2,800 $750 $600 $399 $2,100 $450 $2,247 Excluding $30
Slide 4: Q3'21 Highlights
Q3’21 Highlights Achievements in Q3’21 Consolidated Adjusted EBITDA of $855 million, or $851 million excluding $4 million of grant income, substantially better than our Outlook of $725 million at the mid-point of the range; Consolidated margins (excluding grant income) improved sequentially to 17.
Slide 5: Driving Growth at USPI
Driving Growth at USPI Leader in MSK Quality Physicians 4-Year ASC Case CAGR (a) More physicians choosing to join in light of: 30% Reputation for high-quality care and customer 21.7% experience 20% 64 new service lines added year-to-date through 11.6% September 2021 10% • Includes robot-assist
Slide 6: Consolidated Adjusted EBITDA 2-Year CAGR
Consolidated Adjusted EBITDA 2-Year CAGR* 18.0% 15.4% 11.5% 10.0% 12.0% 9.0% 6.0% 0.0% Q1’21 Q2’21 Q3’21 YTD Q3’21 6 * Excludes grant income
Slide 7: Adjusted EBITDA With and Without Grant Income
Adjusted EBITDA With and Without Grant Income ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 YTD Q3'21 Adjusted EBITDA Excluding Grant Income Hospital Segment $342 $18 $297 $431 $1,088 $410 $445 $494 $1,349 Ambulatory Segment 156 118 228 290 792 244 275 272 791 Conifer Segment 87
Slide 8: Volume Statistics
Volume Statistics (a) Recovery Percent of Pre-COVID Levels Q3’21 versus Q3’20 Growth 35% Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 30% 25.0% 25% Admissions ~89% ~90% ~85% ~90% ~91% 20% 15.3% Outpatient Visits (b) ~84% ~82% ~84% ~96% ~93% 15% 10% 6.8% Emergency Room 4.4% ~77% ~76% ~72% ~86% ~97% 2.6% Visits (c)
Slide 9: Continuing to Demonstrate Financial Strength
Continuing to Demonstrate Financial Strength We continue to maintain sufficient cash resources and available liquidity under our $1.9 billion line-of-credit facility (no borrowings outstanding) As of September 30, 2021, we had $2.292 billion of available cash on hand We generated $321 million
Slide 10: Q3'21 Cash Flow Analysis
Q3’21 Cash Flow Analysis ($ in millions) Cash generated by the business in the quarter was $362m excluding cash received from stimulus funding and cash received or used for transactions as listed in the graph below. 10
Slide 11: FY 2021 Adjusted EBITDA Outlook Bridge
FY 2021 Adjusted EBITDA Outlook Bridge ($ in millions) Consolidated February 2021 Guidance Midpoint $3,000 Increase in guidance due to Q1’21 outperformance 63 Q1’21 Grant income earned due to lost revenue/COVID expenses 37 April 2021 Guidance Midpoint $3,100 Increase in guidance due to Q2’21 outperf
Slide 12: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman 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: Net Income to Adjusted Net Income 2021
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 for 2021 (Unaudited) (Dollars in million
Slide 15: Net Income to Adjusted Net Income 2020
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 for 2020 (Unaudited) (Dollars in million
Slide 16: Net Income to Adjusted EBITDA 2021
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2021 (Unaudited) (Dollars in millions) 2021 Q3 YTD Net income available to Tenet Healthcare Corporat
Slide 17: Net Income to Adjusted EBITDA 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2020 (Unaudited) (Dollars in millions) 2020 Q3 YTD Net loss attributable to Tenet Healthcare Corpora
Slide 18: Operating Cash Flow to Free Cash Flow 2021
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations for 2021 (Unaudited) (Dollars in millions) 2021 Q3 YTD Net cash provided by opera
Slide 19: Operating Cash Flow to Free Cash Flow 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations for 2020 (Unaudited) (Dollars in millions) 2020 Q3 YTD Net cash provided by opera
Slide 20: Outlook Net Income to Outlook Adjusted EBITDA
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 EBITDA (Unaudited) (Dollars in millions) Q4’21 FY 2021 Low High Low High (1) The Company does n
Slide 21: Outlook Net Income to Outlook Adjusted Net Income
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 Net Income Available from Continuing Operations to Common Shareholders (Unaudited) (Dollars in
Slide 22: Outlook Operating Cash Flow to Outlook Free Cash Flow
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) (Dollars in millions) FY