Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — BofA Securities 2021 Virtual Health Care Conference
19 slides from Tenet Healthcare's conference presentation, May 12, 2021
Slide 1: BofA Securities Health Care Conference
BofA Securities Health Care Conference May 12, 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: Q1-2021 Highlights
Q1-2021 Highlights COVID Cases and Vaccine Updates COVID inpatient cases peaked in January at over 3,000 cases; Case levels continue to fluctuate, but active cases across our system recently have generally been in the range of 700 to 800 Supporting vaccination roll-out to our employees and the p
Slide 4: FY 2021 Financial Outlook ($ in millions)
FY 2021 Financial Outlook ($ in millions) Income Available (Loss Attributable) to Tenet Common Shareholders from Continuing Operations Consolidated Adjusted EBITDA $3,500 $3,000 to $3,200 $3,146 $600 $322 to $507 $2,730 $2,800 $450 $399 $300 $2,100 $2,247 Excluding $150 Grant $1,400 ($226) Income $0
Slide 5: A Diversified Healthcare Company
A Diversified Healthcare Company Evolving the portfolio mix as a diversified healthcare company Portfolio Adjusted EBITDA Mix Positioning to grow in a high-growth, high margin ambulatory segment Increasing benefits of scale in the Global Business Center ~35% Continuing to reposition and strength
Slide 6: Q1-2021 Financial Highlights ($ in millions)
Q1-2021 Financial Highlights ($ in millions) $777 million of consolidated Adjusted EBITDA; substantially better than our Outlook All business segments executing well Free cash flow of $413 million vs $(53) million in Q1-2020 Completed early retirement of $478 million of 7% unsecured notes Co
Slide 7: Adjusted EBITDA With and Without Grant Income
Adjusted EBITDA With and Without Grant Income $ In millions Q1-2020 Q2-2020 Q3-2020 Q4-2020 FY 2020 Q1-2021 Adjusted EBITDA Excluding Grant Income Hospital Segment $342 $18 $297 $431 $1,088 $410 Ambulatory Segment $156 $118 $228 $290 $792 $244 Conifer Segment $87 $73 $96 $111 $367 $86 Consolidated,
Slide 8: Volume Statistics versus Comparable 2019 Period
Volume Statistics versus Comparable 2019 Period (a) Recovery Percent of pre-COVID Levels; Same-Business-Day Basis Volume Statistics (a) Q1-2020 Q2 -2020 Q3 -2020 Q4 -2020 Q1-2021 Admissions ~94% ~80% ~89% ~89% ~85% OP Visits (b) ~95% ~58% ~84% ~85% ~83% ER Visits (c) ~97% ~64% ~77% ~76% ~73% Hospita
Slide 9: Demonstrating Continued Financial Strength
Demonstrating Continued Financial Strength Tenet is well positioned to make strategic investments to increase free cash flow, reduce debt and remains committed to <5x leverage 2021 Debt Retirement 4.37x Completed early retirement of $478M of 7% senior Net debt plus Medicare advances liability to uns
Slide 10: Q1-2021 Cash Analysis
Q1-2021 Cash Analysis Cash generated by the business during the quarter was $208M excluding cash received from stimulus funding and cash used for transactions as listed in the graph below. 10
Slide 11: Adjusted EBITDA Outlook Bridge
Adjusted EBITDA Outlook Bridge ($ in millions) Hospital Ambulatory Conifer Consolidated Tenet FY 2020 Adjusted EBITDA – Actuals $1,911 $868 $367 $3,146 Grant income (823) (76) - (899) Tenet FY 2020 Adj. EBITDA – Actuals excluding Grant Income $1,088 $792 $367 $2,247 USPI acquisition and development
Slide 12: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman and Chief Executive Officer Saum Sutaria President and Chief Operating 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: Additional Supplemental Non-GAAP disclosures: Table 1
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) (Dollars in millions except
Slide 15: Additional Supplemental Non-GAAP disclosures: Table 2
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) (Dollars in millions) Q1-2021 Q1-2020 Net income available to Tenet Healthcare Corporation c
Slide 16: Additional Supplemental Non-GAAP disclosures: Table 3
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) (Dollars in millions) Q1-2021 Q1-2020 Net cash provided by operating
Slide 17: Additional Supplemental Non-GAAP disclosures: Table 4
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) Q2-2021 FY 2021 (1) The Company does not generally for
Slide 18: Additional Supplemental Non-GAAP disclosures: Table 5
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 19: Additional Supplemental Non-GAAP disclosures: Table 6
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
Tenet Healthcare — BofA Securities 2021 Virtual Health Care Conference on 6ix