Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q1 2015 Earnings Presentation
9 slides from Tenet Healthcare's earnings presentation, May 4, 2015
Slide 1: Q1'15 Review
Q1’15 Review May 4, 2015
Slide 2: Disclosures / Forward-looking Statements
Disclosures / Forward-looking Statements FORWARD LOOKING STATEMENTS Certain statements in this presentation constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements are based on management’s current expectat
Slide 3: Q1'15 Highlights
Q1’15 Highlights Solid performance in Q1 − Increased Adjusted EBITDA by 37% from Q1’14 − Continued strong volume performance; significant growth in admissions, outpatient visits, surgeries and ED visits Optimizing acute care portfolio − Utilizing partnerships and other models to achieve scale in new
Slide 4: Strategic Transactions
Strategic Transactions ● Tenet, Welsh Carson and USPI to create nation’s largest ambulatory surgery platform. o Tenet to initially own 50.1%; Welsh Carson and other existing shareholders to own Joint Venture with the remaining 49.9%. United Surgical o Put/call structure provides Tenet a path to own
Slide 5: Q1'15 Performance Highlights
Q1’15 Performance Highlights(1) o $529mm in Adjusted EBITDA compared to $387mm in Q1’14, an increase of $142mm. EBITDA o Exceeded the high end of our EBITDA Outlook for Q1’15 of $475-525mm. o 5.9% growth in adjusted admissions: approx. two-thirds is core growth, unrelated to the newly insured. o 4.9
Slide 6: Uncompensated Care Trends Are Favorable
Uncompensated Care Trends Are Favorable $ in Millions Q1’13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Bad Debt Expense $359 $391 $415 $348 $380 $320 $249 $356 $363 Charity Care Write-Offs $263 $229 $249 $329 $221 $240 $254 $216 $174 Uncompensated Care $622 $620 $664 $677 $601 $560 $503 $572 $5
Slide 7: 2015 Outlook Unchanged
2015 Outlook Unchanged Assumptions: Admissions Growth(1) (%) 1.5 - 2.5 Adjusted Admissions Growth(1) (%) 2.5 - 3.5 Exchange Volume Growth(1) (%) 60 - 80 Net Revenue per Adjusted Admission Growth(1) (%) 1.0 – 2.0 Bad Debt Ratio (%) 6.75 - 7.25 Controllable Expenses per Adj Admission Growth(1)(2) (%)
Slide 8: Summary
Summary Drove strong financial performance in Q1 that was broad-based across our regions and business lines Took significant steps to advance our long-term strategy and capture benefits of powerful trends shaping the healthcare system USPI joint venture expected to enhance our earnings contrib
Slide 9: Fars
Fars tenet