Ardent Health, Inc. · NYSE:ARDT
Ardent Health — Q3 2024 Earnings Presentation
16 slides from Ardent Health's earnings presentation, Nov 7, 2024
Slide 1: 3Q24 Earnings Presentation
3Q24 Earnings Presentation November 6, 2024
Slide 2: Important disclaimers: Forward-Looking Statements
Important disclaimers Forward-Looking Statements Certain statements contained in this presentation regarding future operating results or performance or business plans or prospects of Ardent Health Partners, Inc. (collectively, "Ardent", "we," "us," "our," or the "Company") and any other statements n
Slide 3: Important disclaimers: Non-GAAP Financial Information
Important disclaimers Non-GAAP Financial Information We have included certain financial measures in this presentation that have not been prepared in a manner that complies with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA and Adjusted EBITDAR. We define these ter
Slide 4: 3Q24 Key Highlights
3Q24 KEY HIGHLIGHTS Solid topline growth and margin expansion, driven by successful strategic execution Strategic Update Third Quarter Financial & Operating Performance Targeted market share growth • Through the first half of 2024, expanded ambulatory asset Total revenue of $1.45 billion increased 5
Slide 5: 3Q24 Financial Performance
3Q24 FINANCIAL PERFORMANCE Adjusted EBITDA ($mm) & Adjusted Total Revenue ($B) Diluted Earnings Per Share EBITDAR Margin (% of Revenue) +5.2% +15.3% +11.8% y/y% growth y/y% growth y/y% growth $0.19 $1.45 $97.8 $0.17 $1.38 10.9% $84.8 10.3% 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 See appendix for reconciliatio
Slide 6: 3Q24 Operating Highlights
3Q24 OPERATING HIGHLIGHTS Broad-based volume demand drove revenue growth during 3Q24 Net patient service revenue per adjusted Adjusted Admissions Net Patient Service Revenue per Adjusted Admissions admission growth y/y would have been over +3.8% 86,833 +0.9% 3.0%, excluding $25 million in discrete n
Slide 7: Capital Structure to Support Opportunistic Growth
CAPITAL STRUCTURE TO SUPPORT OPPORTUNISTIC GROWTH Strong balance sheet and ample liquidity to support growth strategy ~$851mm in Available Liquidity ($mm) Net Leverage Profile 1 2 ABL Capacity Cash and Cash Equivalents Net Leverage Lease Adjusted Net Leverage $851 4.4x 3.5x $288 ≤3.0x 2.6x 1.6x $563
Slide 8: 3Q24 Operating Highlights – Payor Mix
3Q24 OPERATING HIGHLIGHTS – PAYOR MIX Payor mix shifts driven by operational excellence initiatives, Medicaid supplemental program changes and Medicaid redeterminations 3Q24 Payor Mix 3Q23 Payor Mix Medicaid payor mix decreased by 70bps % of Net Patient Service Revenue % of Net Patient Service Reven
Slide 9: 3Q24 Operating Expense Highlights
3Q24 OPERATING EXPENSE HIGHLIGHTS Strong margin expansion driven by successful execution on operational execution initiatives Salaries & Benefits Supplies Professional Fees Other Operating Expenses $s in Millions & as a % of Total Revenue $s in Millions & as a % of Total Revenue $s in Millions & as
Slide 10: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Key Capital Allocation ($s in Millions) Priorities $170 - $185 $151 Ambulatory asset investment $142 $137 (M&A and De Novo) – Increasing outpatient access points by investing in ambulatory sites of care New market M&A – Expanding into new and adjacent markets by leveragi
Slide 11: 2024 Guidance: Increasing Revenue & Adjusted EBITDA
2024 GUIDANCE: INCREASING REVENUE & ADJUSTED EBITDA As of November 6, 2024 Guidance Assumptions Full Year 2024 Projected Raising 2024 revenue and Adjusted EBITDA Dollars in millions, except per share data Previous Guidance New Guidance guidance to reflect solid 3Q24 results and momentum from strateg
Slide 12: Ardent's Long-Term Operating and Leverage Targets
ARDENT'S LONG-TERM OPERATING AND LEVERAGE TARGETS Metrics 1 Revenue Growth Adjusted EBITDAR Margin Adjusted EBITDA Growth Leverage Mid-to-High Single Digit Mid Teens Low-to-Mid Double Digit ~3.0x 2 Organic Growth Adj. EBITDAR Margin Annual Growth Lease Adj. Net Leverage Steady, durable growth driven
Slide 13: Ardent is well positioned to continue driving consistent, durable growth
ARDENT is well positioned Leading (#1 or #2) share in mid-sized urban markets growing 3x the U.S. average 1 to continue driving consistent, durable growth Scaled acute, ambulatory, and physician footprint providing exceptional care for patients while driving improved health outcomes and cost savings
Slide 14: Appendix
APPENDIX
Slide 15: Non-GAAP Reconciliations – 3Q24 & 3Q23
NON-GAAP RECONCILIATIONS – 3Q24 & 3Q23 Three Months Ended September 30, 2024 2023 (in thousands) Net income $ 46,005 $ 38,708 Income tax expense 11,062 7,261 Interest expense, net 14,629 19,041 Depreciation and amortization 36,771 35,488 Noncontrolling interest earnings (19,683) (17,870) Loss on ext
Slide 16: Non-GAAP Reconciliations – FY 2024 Guidance
NON-GAAP RECONCILIATIONS – FY 2024 GUIDANCE Full Year Ending December 31, 2024 Low High (in Millions) Net income $241 $263 Income tax expense 39 45 Interest expense, net 66 65 Depreciation and amortization 145 144 Noncontrolling interest earnings (85) (87) Loss on extinguishment and modification of