Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Raymond James 41st Annual Institutional Investors Conference (March 2020)
14 slides from Tenet Healthcare's conference presentation, Mar 2, 2020
Slide 1: 41st Annual Institutional Investors Conference
Tenet Health 41st Annual Institutional Investors Conference Raymond James Ronald Rittenmeyer, Executive Chairman and CEO March 2, 2020
Slide 2: Cautionary Statements
Cautionary Statements FORWARD-LOOKING STATEMENTS This presentation includes “forward-looking statements.” These statements relate to future events, including, but not limited to, statements regarding our future earnings, financial position, operational and strategic initiatives, and developments in
Slide 3: Tenet Today – a Leading Health Systems and Services Platform
Tenet Today – a Leading Health Systems and Services Platform Hospitals Outpatient Facilities + Surgical Hospitals Corporate Offices 570+ 10M ~$18.5B ~$25B ~50 113K Care Patient Care 2019 Revenue USPI Health Team 3 Facilities Encounters Revenue Managed by System Members Note: As of Feb. 24, 2020. Con
Slide 4: FY 2019 Accomplishments
FY 2019 Accomplishments ▪ Strategic positioning – Restored organic growth in care delivery platform – Commenced process to spin off Conifer in mid-2021 – Continued evaluation and optimization of portfolio – Improved financial flexibility and free cash flow ▪ Operational excellence – Established real
Slide 5: Driving Growth
Driving Growth Adjusted EBITDA ($B) Adjusted Diluted EPS $2.69 to $3.0 $2.785 to $3.50 $3.35 $2.885 3-year CAGR of 5% 3-year CAGR of at mid-point $3.00 55% at mid-point $2.68 $2.8 $2.706 $2.50 $2.6 $2.560 $2.00 $1.86 $2.444 $1.50 $2.4 $1.00 $0.81 $2.2 $0.50 $2.0 $0.00 2017 2018 2019 2020E 2017 2018
Slide 6: Growth in Cash Flows
Growth in Cash Flows Net Cash Provided by Operating Activities ($B) Adjusted Free Cash Flow ($M) $1.8 $1,200 $1.250 to $1.525 $775 to $975 $1.233 $900 $1.2 $1.049 $760 12.5% $600 Above Above mid-point Growth $600 15.1% mid-point of at mid- Growth of Company’s point Company’s at mid- Outlook Outlook
Slide 7: Executing on All Fronts
Executing on All Fronts • Continued growth in Hospital Adjusted Admissions from 2017 at negative 1.2% to a positive 1.9% in 2019 and a range of +1.5% to +2.5% in 2020. • Ambulatory Surgical Case growth from a negative 0.5% in 2017 to a positive 3.3% in 2019 and a range of +3.0% to +3.5% in 2020. • C
Slide 8: Enablers of Future Performance
Enablers of Future Performance ▪ Capturing opportunity and implementing change based on real-time data and analytics ▪ Optimizing asset portfolio, further aligning strategy with community need ▪ Exercising continued rigor with expense management ▪ Building greater cohesion across the business in str
Slide 9: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman and CEO Dan Cancelmi EVP and Chief Financial Officer 9
Slide 10: Reconciliation of Outlook Net Income to Outlook Adjusted EBITDA
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Reconciliation of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited) (Dollars in mi
Slide 11: Reconciliations of Net Income to Adjusted EBITDA
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA (Unaudited) (Dollars in millions) Years Ended December 31, 2017 2018 2019 Net income available
Slide 12: Reconciliation of Outlook Net Income to Outlook Adjusted Net Income
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation 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 millions exc
Slide 13: Reconciliation of Net Income to Adjusted Net Income from Continuing Operations
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders (Unaudited) (Dollars in millions
Slide 14: Reconciliations of Operating Cash Flow to Adjusted Free Cash Flow
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow from Continuing Operations (Dollars in millions) 2018 2019 2020 Low High Net cash provided by operating activities $ 1,049 $ 1,233 $ 1,250
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