Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q1 2016 Earnings Presentation
12 slides from Tenet Healthcare's earnings presentation, May 2, 2016
Slide 1: Q1’16 Review
mee” HEALTH Q1’16 Review May 2, 2016
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements are based on management’s current expectations and involve known and unknown risks,
Slide 3: Q1’16 Financial Highlights
Q1’16 Financial Highlights Adjusted EBITDA was $613 million in Q1’16, up 15.9% − Adjusted EBITDA was above our Outlook range for the first quarter of $550 million to $600 million. Same-hospital patient revenue grew 6.0% in Q1’16 − Adjusted admissions increased 2.2% on a same-hospital basis in Q1
Slide 4: Hospital Operations & Other Segment
Hospital Operations & Other Segment <--------------------- Restated (1) ---------------------> <-------------- As Reported --------------> Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Adjusted Admissions 0.1% 3.9% 4.8% 4.3% 5.9% 2.3% 0.7% 0.3% 2.2% Admissions -0.9% 2.8% 3.9% 4.0% 4.9% 1.7%
Slide 5: Uncompensated Care Trends
Uncompensated Care Trends $ in millions Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Bad Debt Expense $380 $320 $249 $356 $363 $352 $371 $391 $376 % of revenue before bad debt 8.8% 7.3% 5.6% 7.4% 7.6% 7.3% 7.3% 7.2% 6.9% (1) % of adjusted revenue 7.3% 6.1% 4.7% 6.2% 6.4% 6.2% 6.2%
Slide 6: Ambulatory Care Segment Volumes
Ambulatory Care Segment Volumes <-------------------- USPI only (2) --------------------> <------------ Pro forma (3) ------------> (1) Same-facility system-wide growth Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Surgical (ASCs, Surgical Hospitals & Aspen) Revenue -0.3% 3.1% 5.1%
Slide 7: Ambulatory Segment Pro Forma Results
Ambulatory Segment Pro Forma Results $ in millions Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Net operating revenues $259 $286 $287 $308 $295 $322 $329 $397 $429 % growth 13.9% 12.6% 14.6% 28.9% 45.4% Equity in earnings of unconsolidated affiliates $18 $28 $27 $43 $21 $28 $30 $47 $25 EBIT
Slide 8: Conifer
Conifer Revenue grew 13% in Q1’16 to $385 million, driven by 20% growth in revenue from non-Tenet customers − Year-over-year decline in EBITDA in Q1’16 versus Q1’15 was primarily driven by a non-recurring benefit in Q1’15 related to the extended and expanded contract with Catholic Health Initiatives
Slide 9: Tenet Outlook for 2016
Tenet Outlook for 2016 $ in millions, except EPS 2016 Outlook Net Revenue $18,800 - $19,200 (1) Adjusted EBITDA $2,400 - $2,500 EBITDA Margin (1) 12.8% - 13.0% Adjusted E.P.S. (1) $1.18 - $2.25 Adjusted Cash Flow from Operations (1) $1,300 - $1,450 Capital Expenditures $850 - $900 (1) Adjusted Free
Slide 10: Segment Outlook for 2016
Segment Outlook for 2016 Hospital Operations Ambulatory Conifer and Other Segment Segment Segment 2016 EBITDA ~$1.6 billion 2016 EBITDA ~$585 million 2016 EBITDA ~$265 million 2016 Noncontrolling Interest (1) ~$30 million 2016 Noncontrolling Interest (1) ~$250 million 2016 Noncontrolling Interest (1
Slide 11: Summary
Summary Delivering on our commitment to reposition our portfolio for improved growth, margin expansion and free cash flow generation Adjusted EBITDA increased 15.9% to $613 million in Q1’16, above our Outlook range of $550-600 million for the quarter Hospital segment had a strong start to the
Slide 12: Faru
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