Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — BofA Securities 2020 Leveraged Finance Conference
17 slides from Tenet Healthcare's conference presentation, Dec 1, 2020
Slide 1: BofA Securities 2020 Leveraged Finance Conference
BofA Securities 2020 Leveraged Finance Conference December 1, 2020
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: 3Q20 Quarterly Highlights
3Q20 Quarterly Highlights • Q3 operational execution solid Recovery continuing to progress at all levels Hospital facilities managing well through COVID surges in certain markets USPI demonstrating solid year/year revenue and earnings growth Strategic focus on higher-acuity service lines A
Slide 4: 3Q20 Quarterly Highlights, continued
3Q20 Quarterly Highlights, continued • Proactively Issued $2.5 Billion of 8 Year Unsecured Notes at 6.125% Attractive high-yield market conditions allowed us to: Use proceeds to early retire all of our 2022 maturities Nearest significant debt maturity is June 2023 Reduces annual future cash
Slide 5: 3Q20 Financial Results - Summary
3Q20 Financial Results - Summary • Net loss from continuing operations attributable to common shareholders in 3Q20 of $197 million primarily due to the early retirement of debt discussed above compared to a net loss from continuing operations of $227 million in 3Q19 • Consolidated Adjusted EBITDA in
Slide 6: 2020 Volume Statistics
2020 Volume Statistics Initial Outperformance vs. Initial COVID Impact Recovery Percent Change from Prior Year Percent of pre-COVID Levels Same Period Prior Year (same business day basis) March – full Volume Statistics (a) Jan-Feb month 2H March April May June July Aug Sep Oct Admissions 1.1% (15.2%
Slide 7: Adjusted EBITDA with and without Grant Income
Adjusted EBITDA with and without Grant Income In millions 1Q20 2Q20 Jul Aug Sep 3Q20 YTD 3Q20 Adjusted EBITDA Excluding Grant Income Hospital Segment $342 $18 $112 $75 $110 $297 $657 Ambulatory Segment 156 118 77 76 75 228 502 Conifer Segment 87 73 31 30 35 96 256 Consolidated, Excluding Grant Incom
Slide 8: Liquidity Update
Liquidity Update • As of November 30, 2020, we had approximately $3.450 billion of cash on hand We had no borrowings outstanding under our $1.9 billion line of credit facility • Repayment period for ~$1.5 billion of Medicare advances has been extended by the government through September 2022 Exp
Slide 9: Cash Balance
3Q20 Cash Analysis (in millions) ($ in millions) Cash generated by the business in Q3 was $231m excluding $4,000 cash received from stimulus funding and cash used for non- routine transactions as listed in the graph below. $89 $178 $3,514 $5 $3,500 CASH BALANCE $231 $3,300 $(588) $(68) $(34) $3,000
Slide 10: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman and CEO Saum Sutaria President and COO Dan Cancelmi EVP and Chief Financial Officer Owen Morris Corporate Treasurer and USPI Chief Financial Officer Regina Nethery 10 Vice President – Investor Relations
Slide 11: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations NON-GAAP FINANCIAL INFORMATION This presentation contains financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measures and management’s reasoning fo
Slide 12: Loss to Adjusted Net Income for 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2020 (Unaudited) (Dollars in millio
Slide 13: Loss to Adjusted Net Income for 2019
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2019 (Unaudited) (Dollars in millio
Slide 14: Loss to Adjusted EBITDA for 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2020 (Unaudited) (Dollars in millions) 2020 3rd Qtr YTD Net loss attributable to Tenet Healthcare C
Slide 15: Loss to Adjusted EBITDA for 2019
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2019 (Unaudited) (Dollars in millions) 2019 3rd Qtr YTD Net loss attributable to Tenet Healthcare C
Slide 16: Operating Cash Flow to Free Cash Flow for 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 3rd Qtr YTD Net cash provided by
Slide 17: Operating Cash Flow to Free Cash Flow for 2019
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 2019 (Unaudited) (Dollars in millions) 2019 3rd Qtr YTD Net cash provided by
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