Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q4 2021 Earnings Presentation
23 slides from Tenet Healthcare's earnings presentation, Feb 7, 2022
Slide 1: Fourth Quarter 2021 Earnings Release Presentation
Fourth Quarter 2021 Earnings Release Presentation February 7, 2022
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: Earnings Release Highlights
Earnings Release Highlights Achievements in Q4’21 Consolidated Adjusted EBITDA of $1.017 billion, or $877 million excluding grant income, substantially better than Outlook mid-point of $834 million; Consolidated Adjusted EBITDA margin (excluding grant income) up 70 bps sequentially Solid perform
Slide 4: FY 2022 Financial Outlook ($ in millions)
FY 2022 Financial Outlook ($ in millions) Income Available (Loss Attributable) to Tenet Common Shareholders from Continuing Operations Consolidated Adjusted EBITDA $4,000 $3,375 to $3,483 $3,575 $1,200 $3,146 $2,730 $915 $3,000 $3,278 $900 $502 to Excluding Grant $677 Income $600 $2,000 $2,247 $399
Slide 5: Financial Profile Continues to Improve
Financial Profile Continues to Improve ADJUSTED ADJUSTED NET REVENUE ADJUSTED EBITDA EBITDA MARGIN FREE CASH FLOW DEBT LEVERAGE $19.1B $19.7B(a) 17.6% $1.558B (b) 5.9x 3% $3.475B(a) 480 bps 12.8% (1.8)x 4.1x 42% $2.440B 216% $0.493B 2017 2022E 2017 2022E 2017 2022E 2017 2022E 2017 Q4’21 Note: 2022E
Slide 6: Business Units Strengthening Continues
Business Units Strengthening Continues HOSPITALS USPI CONIFER Restructured the portfolio and invested in high Focused on ambulatory surgery and fully Redesigned the service delivery model, acuity services, enabling Hospital segment realized integration benefits which continue leveraging technology a
Slide 7: An Increasingly Diversified Business Portfolio
An Increasingly Diversified Business Portfolio Tenet Adjusted EBITDA Mix ~39% ~39% 53% ~49% Hospitals 60% ~48% ~50% ~50% 33% ~40% ~42% USPI 28% Conifer 12% 14% ~11% ~11% ~10% ~11% 2017 2019 2022E End of 2023 Goal Note: 2022E is based upon the mid-point of the Company’s Outlook; end of 2023 goal is o
Slide 8: Targeting ~600 USPI Centers by End of 2025
Targeting ~600 USPI Centers by End of 2025 Illustrative USPI Portfolio Pathway 30-32+ 575 - 600+ 30-40+ 77-90+ 438 Q4’21 Surgical Facility SCD Development Additional De End of 2025 Goal Acquisition Goal Partnership Goal Novos Goal Note: Q4’21 USPI surgical facilities includes facilities under develo
Slide 9: Adjusted EBITDA With and Without Grant Income ($ in millions)
Adjusted EBITDA With and Without Grant Income ($ in millions) $ In millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2 '21 Q3'21 Q4 '21 FY 2021 Adjusted EBITDA Excluding Grant Income Hospital Segment $342 $18 $297 $431 $1,088 $410 $445 $494 $440 $1,789 Ambulatory Segment 156 118 228 290 792 244 275 27
Slide 10: Volume Statistics
Volume Statistics (a) Recovery Percent of Pre-COVID Levels Q4’21 versus Q4’20 20% 16.3% Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 15% Admissions ~90% ~85% ~90% ~91% ~87% 8.8% 10% 6.1% Outpatient Visits (b) ~82% ~84% ~96% ~93% ~90% 5% -3.9% 0.0% -1.4% Emergency Room 0% ~76% ~72% ~86% ~97% ~89% Visits (c) -5% Hos
Slide 11: Cash Flow and Balance Sheet Continue to Support Growth
Cash Flow and Balance Sheet Continue to Support Growth $910M 4.1x $2.4B $1.9B FY 2021 Leverage Ratio Cash on Hand Unused Line of Free Cash Flow Credit Our cash flow and balance sheet position us to drive growth and interest savings: Liquidity and access to capital markets to pursue our growth st
Slide 12: Q4'21 Cash Flow Analysis
Q4’21 Cash Flow Analysis Net Cash generated by the business in Q4’21 was $144 million excluding cash received (repaid) for stimulus funding, and cash received from (used for) transactions as listed in the graph below. * Primarily Acquisitions for SCD for ~$1.125 billion and Compass for ~$78 million
Slide 13: FY 2021 Adjusted EBITDA ($ in millions)
FY 2021 Adjusted EBITDA ($ in millions) Consolidated February 2021 Guidance Midpoint $3,000 Increase in guidance due to Q1’21 outperformance 63 Q1’21 Grant income earned due to lost revenue/COVID expenses 37 April 2021 Guidance Midpoint $3,100 Increase in guidance due to Q2’21 outperformance/revised
Slide 14: FY 2022 Adjusted EBITDA Outlook Bridge from 2021
FY 2022 Adjusted EBITDA Outlook Bridge from 2021 ($ in millions) Hospital Ambulatory Conifer Consolidated FY 2021 Adjusted EBITDA $1,931 $1,197 $355 $3,483 Less grant income in FY 2021 (142) (63) - (205) FY 2021 Adjusted EBITDA, excluding grant income $1,789 $1,134 $355 $3,278 USPI Acquisition & Dev
Slide 15: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman Saum Sutaria, M.D. Chief Executive Officer Dan Cancelmi Executive Vice President and Chief Financial Officer 15
Slide 16: 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 17: 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 for 2021 and 2020 (Unaudited) (Dollars i
Slide 18: 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 for 2021 and 2020 (Unaudited) (Dollars in millions) Three Months Ended Twelve Months Ended December 31,
Slide 19: Additional Supplemental Non-GAAP disclosures: Table 3 (2021)
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 2021 (Unaudited) (Dollars in millions) 2021 4th Qtr Full Year Net cash provid
Slide 20: Additional Supplemental Non-GAAP disclosures: Table 3 (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 4th Qtr Full Year Net cash provid
Slide 21: 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) Q1’22 FY 2022 (1) The Company does not generally forec
Slide 22: 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 23: 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