Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q2 2021 Earnings Presentation
22 slides from Tenet Healthcare's earnings presentation, Jul 21, 2021
Slide 1: Second Quarter 2021 Earnings Release Presentation
Second Quarter 2021 Earnings Release Presentation July 21, 2021
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: Further Increased FY 2021 Financial Outlook
Further Increased FY 2021 Financial Outlook ($ in millions) Income Available (Loss Attributable) to Tenet Consolidated Adjusted EBITDA Common Shareholders from Continuing Operations $3,500 $3,150 to $3,250 $3,146 $900 $681 to $781 $2,730 $2,800 $750 $600 $399 $2,100 $450 $2,247 Excluding $300 $1,400
Slide 4: Q2'21 Highlights
Q2’21 Highlights Achievements in Q2’21 Consolidated Adjusted EBITDA of $834 million, or $810 million excluding $24 million of grant income, substantially better than our Outlook of $725 million at the mid-point of the range; Consolidated margins (excluding grant income) improved sequentially to 16
Slide 5: Driving Growth at USPI
Driving Growth at USPI Leader in MSK Quality Physicians 4-Year ASC Case CAGR (a) More physicians choosing to join in light of: 30% Reputation for high-quality care and customer 23.7% experience 20% 45 new service lines added in 1H 2021 11.2% • Includes general surgery, total joints, spine, uro
Slide 6: Q2'21 Consolidated Adjusted EBITDA
Q2’21 Consolidated Adjusted EBITDA ($ in millions) 2-Year EBITDA CAGR of ~12% $1,000 $834 $750 $732 $669 $810 $500 $250 $209 $0 Q2’19 Q2’20 Q2’21 Grant income Adjusted EBITDA excluding grant income 6
Slide 7: Adjusted EBITDA With and Without Grant Income
Adjusted EBITDA With and Without Grant Income ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 YTD Q2'21 Adjusted EBITDA Excluding Grant Income Hospital Segment $342 $18 $297 $431 $1,088 $410 $445 $855 Ambulatory Segment 156 118 228 290 792 244 275 519 Conifer Segment 87 73 96 111 367 86
Slide 8: Volume Statistics Continue to Improve
Volume Statistics Continue to Improve (a) Recovery Percent of Pre-COVID Levels Q2’21 versus Q2’20 Growth 90% Q3’20 Q4’20 Q1’21 Q2’21 70.6% 68.2% 60% Admissions ~89% ~89% ~85% ~91% 37.0% 35.0% Outpatient Visits (b) ~84% ~85% ~83% ~95% 30% 23.9% Emergency Room Visits 13.7% ~77% ~76% ~73% ~87% (c) 0% H
Slide 9: Continuing to Demonstrate Financial Strength
Continuing to Demonstrate Financial Strength We continue to maintain sufficient cash resources and available liquidity under our $1.9 billion line-of-credit facility (no current borrowings outstanding) As of June 30, 2021, we had ~$2.194 billion of available cash on hand We generated $123 mill
Slide 10: Q2'21 Cash Flow Analysis
Q2’21 Cash Flow Analysis ($ in millions) Cash generated by the business in the quarter was $234m excluding cash received (used for) transactions as listed in the graph below. 10
Slide 11: FY 2021 Adjusted EBITDA Outlook Bridge
FY 2021 Adjusted EBITDA Outlook Bridge ($ 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 outperf
Slide 12: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman and Chief Executive Officer Saum Sutaria, M.D. President and Chief Operating Officer Dan Cancelmi Executive Vice President and Chief Financial Officer 12
Slide 13: 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 14: Net Income to Adjusted Net Income 2021
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 (Unaudited) (Dollars in million
Slide 15: Net Income to Adjusted Net Income 2020
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 2020 (Unaudited) (Dollars in million
Slide 16: Net Income to Adjusted EBITDA 2021
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 (Unaudited) (Dollars in millions) 2021 Q2 YTD Net income available to Tenet Healthcare Corporat
Slide 17: Net Income to Adjusted EBITDA 2020
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 2020 (Unaudited) (Dollars in millions) 2020 Q2 YTD Net income available to Tenet Healthcare Corporat
Slide 18: Operating Cash Flow to Free Cash Flow 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 Q2 YTD Net cash provided by opera
Slide 19: Operating Cash Flow to Free Cash Flow 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 Q2 YTD Net cash provided by opera
Slide 20: Outlook Net Income to Outlook Adjusted EBITDA
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) Q3’21 FY 2021 (1) The Company does not generally forec
Slide 21: Outlook Net Income to Adjusted Net Income
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 22: Outlook Operating Cash Flow to Free Cash Flow
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