Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q1 2022 Earnings Presentation
19 slides from Tenet Healthcare's earnings presentation, Apr 20, 2022
Slide 1: First Quarter 2022 Earnings Release Presentation
First Quarter 2022 Earnings Release Presentation April 20, 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: First Quarter 2022 Highlights
First Quarter 2022 Highlights First Quarter 2022 Achievements Consolidated Adjusted EBITDA of $888 million, or $882 million excluding grant income, substantially better than our Q1’22 Outlook range; Consolidated Adjusted EBITDA margin (excluding grant income) up 310 basis points versus Q1’21 Q1’
Slide 4: FY 2022 Financial Outlook ($ 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 $491 to Excluding Grant $666 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 (2.0)x 12.8% 3.9x 42% $2.440B 216% $0.493B 2017 2022E 2017 2022E 2017 2022E 2017 2022E 2017 Q1’22 Note: 2022
Slide 6: An Increasingly Diversified Business Portfolio
An Increasingly Diversified Business Portfolio Tenet Adjusted EBITDA Mix ~39% ~39% 53% ~49% Hospitals 60% ~48% ~50% ~50% 33% ~40% ~42% USPI 28% Conifer 12% 14% ~11% ~11% ~10% ~11% 2017 2019 2022E End of 2023 Goal Note: 2022E is based upon the mid-point of the Company’s Outlook; end of 2023 goal is o
Slide 7: Targeting ~600 USPI Centers by End of 2025
Targeting ~600 USPI Centers by End of 2025 Illustrative USPI Portfolio Pathway 30-32+ 575 - 600+ 30-40+ 77-90+ 438 12/2021 Surgical Facility SCD Development Additional De End of 2025 Goal Acquisition Goal Partnership Goal Novos Goal Note: 12/2021 USPI surgical facilities includes facilities under de
Slide 8: Adjusted EBITDA With and Without Grant Income ($ in millions)
Adjusted EBITDA With and Without Grant Income ($ in millions) 2020 YTD Q1'21 Q2 '21 Q3'21 Q4 '21 2021 YTD Q1'22 $ In millions Adjusted EBITDA Excluding Grant Income Hospital Segment $1,088 $410 $445 $494 $440 $1,789 $510 Ambulatory Segment $792 $244 $275 $272 $343 $1,134 $280 Conifer Segment $367 $8
Slide 9: Volume Statistics
Volume Statistics (a) Recovery Percent of Pre-COVID Levels Q1’22 versus Q1’21 20% Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 13.9% 15% 10% Admissions ~85% ~90% ~91% ~87% ~81% 6.3% 5% 1.4% Outpatient Visits (b) ~84% ~96% ~93% ~90% ~85% 0% -1.4% -0.2% Emergency Room ~72% ~86% ~97% ~89% ~83% -5% Visits (c) -4.7% -1
Slide 10: Q1'22 Cash Flow and Balance Sheet Continue to Support Growth
Q1’22 Cash Flow and Balance Sheet Continue to Support Growth $267M(a) 3.9x $1.4B $1.5B Q1’22 Unused Line of Leverage Ratio Cash on Hand 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 gr
Slide 11: Q1'22 Cash Flow Analysis
Q1’22 Cash Flow Analysis Net Cash generated by the business in Q1’22 was $38 million excluding cash received (repaid) from stimulus funding, and cash received from (used for) transactions as listed in the graph below. 11
Slide 12: 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 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: 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 (Unaudited) (Dollars in millions except
Slide 15: 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 (Unaudited) (Dollars in millions) Three Months Ended March 31, 2022 2021 Net income available to Tenet H
Slide 16: Additional Supplemental Non-GAAP Disclosures: Table 3
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 (Unaudited) (Dollars in millions) Q1’22 Q1’21 Net cash provided by operating acti
Slide 17: 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) Q2’22 FY 2022 Low High (1) The Company does not genera
Slide 18: 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 19: 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