Ardent Health, Inc. · NYSE:ARDT
Ardent Health — Investor Presentation (January 2025)
20 slides from Ardent Health's investor presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025
Slide 2: Important disclaimers
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. ("Ardent", "we," "us," "our," or the "Company") and any other statements not constitutin
Slide 3: Important disclaimers
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: Who We Are
Who We Are • A leading operator of hospitals and provider of 1 Hospital 9 Sites of Care 1 Hospital 16 Sites of Care 2 Hospitals 27 Sites of Care healthcare services with a track record of success 125 Providers 136k Population 156 Providers 284k Population 132 Providers 547k Population delivering car
Slide 5: Evolution of Our Platform
Evolution of Our Platform Investments & Acquisitions COVID-19 & Integration Current (2015-2018) (2019-2023) (2024-2025) • Founded in 2001 • Improved financial performance throughout • Durable underlying volume growth • Equity Group Investments (“EGI”) & Ventas1 COVID-19 pandemic • Organic growth aug
Slide 6: Growing Urban Markets
Growing Urban Markets Leading market share in markets with attractive opportunities for sustainable growth Selectively scaled into growing Market Growth >3x U.S Average Above-Average Income Growth markets with Projected Population Growth1 Projected Income Growth Ardent • Strong population and wage g
Slide 7: Strong Volume Trends: Expect Durable Demand
Strong Volume Trends: Expect Durable Demand Admissions Growth Admissions YoY YoY Growth Adjusted Adjusted Admissions Growth Admissions YoY YoY Growth 6.7% 10.7% 6.5% 6.4% 5.4% 5.1% 4.2% 3.6% 6.0% 5.0% 5.0% 3.8% 3.3% 3.4% -2.5% -1.2% 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 1Q23 2Q23 3Q23 4Q23 2023 1Q
Slide 8: Highly Actionable Roadmap for Long-Term Value Creation
Highly Actionable Roadmap for Long-Term Value Creation Disciplined Capital Allocation Targeted Market Share Growth Operational Excellence Margin Expansion Organic Growth Opportunistic M&A • Expense management and improved • Expand health services access points • Enter new markets through acquisition
Slide 9: Operating Model is Ready to Scale
Operating Model is Ready to Scale • Management transformed operations from a decentralized operating company into an integrated operating company model with centralization and standardization through key outsourcing initiatives with Epic, Ensemble, and HealthTrust. • Centralized integration optimize
Slide 10: In-market Ambulatory Expansion Will Enhance Our Leading Market Positions
In-market Ambulatory Expansion (M&A and De Novo) Will Enhance Our Leading Market Positions Growing market share by improving access to healthcare through ambulatory investment and physician alignment Ambulatory Sites of Care Physician Alignment & Acquisitions • Ambulatory Surgery Centers • Freestand
Slide 11: Urgent Care M&A Activity
Urgent Care M&A Activity • Early January 2025: Announced acquisition of 18 urgent care clinics across Oklahoma and New Mexico from NextCare Urgent Care • Expansion complements our existing Oklahoma and New Mexico health systems' access points beyond main urban area • Acquired assets expand urgent ca
Slide 12: Opportunistic Hospital M&A
Opportunistic Hospital M&A Expanding our presence in mid-sized urban markets through M&A and by leveraging differentiated JV model Target Market Attributes $2.2tn+ TAM Growing mid-sized urban areas Attractive payor mixes Strong population growth Significant long-term market demand Stable and growing
Slide 13: Differentiated and Well-Established JV Model
Differentiated and Well-Established JV Model Strategy Joint venture model provides capital efficient avenue for accretive growth and provides our hospital portfolio with the effective scale of a larger hospital network Ardent ownership Our Facility JV Partner (%) What we do • We are a leading for-pr
Slide 14: 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 1 Net leverage calculated as net debt / Adjusted EBITDA, with net debt calculated as total debt less cash and cash equiv
Slide 15: Long-Term Growth Algorithm after 2025
Long-Term Growth Algorithm after 2025 • Ardent expects adjusted EBITDA growth in 2025 to be favorably impacted by Directed Payment Programs (DPPs) in New Mexico and Oklahoma contributing an incremental $140 million • Thereafter, the Company targets long-term revenue and adjusted EBITDA growth in the
Slide 16: 2025 Financial Considerations
2025 Financial Considerations • 2024: New Mexico DPP for July 1, 2024 – December 31, 2024 has been approved. We are still finalizing the 2024 impact. Ardent will provide formal 2025 guidance in February in the 4Q24 earnings release. However, we offer preliminary 2025 comments as detailed below. 2025
Slide 17: Key Takeaways
Key Takeaways Ardent is well positioned to drive consistent, durable top- and bottom-line growth of MSD-HSDs in 2026+ EXPAND IMPROVE INVEST Attractive Assets/Footprint Margin Expansion Levers Capital Deployment Augments Growth • Strong footprint in eight growing mid-sized • Expect 100-200bps of core
Slide 18: APPENDIX
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Slide 19: 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 20: 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