Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q2 2020 Earnings Presentation
17 slides from Tenet Healthcare's earnings presentation, Aug 3, 2020
Slide 1: Second Quarter 2020 Earnings Release
Second Quarter 2020 Earnings Release August 3, 2020
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: Q2-2020 Quarterly Highlights
Q2-2020 Quarterly Highlights • Q2 Represents 3 Different Phases of Operations in April, May and June April – Initial unprecedented impact May – Better informed, greater focus, data-driven decisions to action period June – Cadence returns as recovery rapidly takes hold at all levels • CARES ACT
Slide 4: Q2-2020 Financial Results – Summary
Q2-2020 Financial Results – Summary Our patient volumes, cost management and earnings continued to improve in June building on the progress in May as we began to ramp back up our facilities when various states began to ease shelter-in-place restrictions. Net Income and Earnings Per Share • 2Q20 net
Slide 5: 2020 Volume Statistics
2020 Volume Statistics Initial Outperformance vs. Initial COVID Impact Recovery Percent Change from Prior Year Percent of pre-COVID Levels (b) Volume YTD March – 2H April May June July Statistics(a) February full month March Admissions 1.1% (15.2%) (~25%) (~33%) ~80% ~90% ~90% OP visits 5.5% (22.3%)
Slide 6: Adjusted EBITDA with and without Grant Income
Adjusted EBITDA with and without Grant Income In millions April May June Q2'20 Q1'20 YTD Q2'20 Adjusted EBITDA Excluding Grant Income Hospital Segment ($114) $39 $93 $18 $342 $360 Ambulatory Segment (26) 49 95 118 156 274 Conifer Segment 17 26 30 73 87 160 Consolidated, Excluding Grant Income ($123)
Slide 7: Q2-2020 Select Operating Expenses Flexed Down Rapidly
Q2-2020 Select Operating Expenses (a) Flexed Down Rapidly Consolidated ($B) Hospital Segment ($B) $475M decline $377M decline $4.00 $3.933 or 12.1% $3.50 or 11.3% $3.330 $3.80 $3.60 $3.458 $3.00 $2.953 $3.40 $3.20 $3.00 $2.50 2Q19 2Q20 2Q19 2Q20 (a) Select operating expenses include salaries, wages
Slide 8: Q2-2020 Cash Flow Analysis (In millions)
Q2-2020 Cash Flow Analysis (In millions) *As anticipated, based on the actions we took to reduce spend and Conifer’s strong collection performance, we did not burn through a material amount of cash in the quarter, even if the benefit from Medicare advances, grants, the payroll tax match deferral and
Slide 9: Solid Liquidity Position
Solid Liquidity Position • Continue to have sufficient cash resources and available liquidity under our line-of-credit facility • As of August 3rd, we had approximately $3.1 billion of available cash on hand and no borrowings outstanding under our $1.9 billion line of credit facility ~$1.5 billion
Slide 10: Questions and Answers
Questions and Answers Ron Rittenmeyer Executive Chairman and CEO Saum Sutaria President and COO Dan Cancelmi EVP and Chief Financial Officer 10
Slide 11: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations NON-GAAP FINANCIAL INFORMATION This presentation contains financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measures and management’s reasoning fo
Slide 12: Reconciliation of Net Income to Adjusted Net Income for 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation 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 millions except per
Slide 13: Reconciliation of Net Income to Adjusted Net Income for 2019
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 for 2019 (Unaudited) (Dollars in
Slide 14: Reconciliation of Net Income to Adjusted EBITDA for 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2020 (Unaudited) (Dollars in millions) 2020 1st Qtr 2nd Qtr YTD Net income available to Tenet Healthcare Corpora
Slide 15: Reconciliation of Net Income to Adjusted EBITDA for 2019
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2019 (Unaudited) (Dollars in millions) 2019 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Net income
Slide 16: Reconciliation to Free Cash Flow for 2020
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures 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 1st Qtr 2nd Qtr YTD Net cash provided by ope
Slide 17: Reconciliation to Free Cash Flow for 2019
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Net Cash Provided By Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations for 2019 (Unaudited) (Dollars in millions) 2019 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Net ca