Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Q4 2024 Earnings Presentation
22 slides from Tenet Healthcare's earnings presentation, Feb 12, 2025
Slide 1: 4th Quarter 2024 Earnings Release Presentation
4th Quarter 2024 Earnings Release Presentation February 12, 2025
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: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Consolidated Adjusted EBITDA of $1.048 billion, in the upper end of our fourth quarter Outlook range Ambulatory Hospitals • 14.2% Adjusted EBITDA growth • 13.3% Adjusted EBITDA growth ex-divested hospitals* • 8.6% same-facility revenue growth • 5.0% same-hospital admis
Slide 4: 2025 Financial Outlook
2025 Financial Outlook* Net operating revenues $20.6 to $21.0B Changes vs. prior year Ambulatory same facility system-wide revenues Up 3 - 6% Adjusted EBITDA Ambulatory $1.915 to $1.985B Inpatient admissions Up 2 - 3% Hospitals $2.060 to $2.190B Adjusted admissions Up 2 - 3% Consolidated $3.975 to $
Slide 5: FY 2025 Adjusted EBITDA Outlook Bridge from 2024
FY 2025 Adjusted EBITDA* Outlook Bridge from 2024 ($ in millions) ($ in millions) Ambulatory Hospital Total 2024 EBITDA $1,810 $2,185 $3,995 Divestitures ($13) ($101) ($114) Supplemental Medicaid Revenue favorable out-of-period adjustments - ($74) ($74) 2024 Normalized Performance $1,797 $2,010 $3,8
Slide 6: USPI
USPI
Slide 7: USPI Track Record of Mid-teens Growth and Strong Margins
USPI Track Record of Mid-teens Growth and Strong Margins Net Revenue ($M) Adjusted EBITDA ($M) $4,925 $1,950 CAGR $4,534 CAGR $1,810 14.7% 13.9% $3,865 $1,544 $3,248 $1,327 $1,197 $2,718 $2,158 $2,072 $895 $868 2019 2020 2021 2022 2023 2024 2025E 2019 2020 2021 2022 2023 2024 2025E Midpoint * Midpoi
Slide 8: USPI Long Term Organic Growth Consistency
USPI Long Term Organic Growth Consistency 6.0% Same-facility System-wide Organic Growth Rates Driven by Revenue CAGR from 2015-2024 USPI Leadership in Strategy & Execution Established Expertise in Starting New Service Lines 14.5% 213 9.7% Service Line Additions 9.2% FY 2024 7.8% 6.0% Expansion of Hi
Slide 9: USPI Case Mix / Clinical Quality
USPI Case Mix / Clinical Quality 2024 Case Mix Commitment to Quality Drives Strong Patient Experience Ophthalmology 11% All Other Specialties 20% Gastrointestinal 38% Musculoskeletal 96.6 31% 2024 Overall Patient Experience Score 9
Slide 10: USPI Acquisitions and De Novos Deliver Significant Returns on Invested Capital
USPI Acquisitions and De Novos Deliver Significant Returns on Invested Capital Total Number of Facilities Achievement of Attractive Returns 2017 – 2024 543 8-10x 5-7x <2.0x Initial Acquisition Exceeded Exceeded Multiple Targeted Acquisition Targeted De Novo Effective Multiple* Effective Multiple 267
Slide 11: Cash Flow and Capital
Cash Flow and Capital
Slide 12: 2024 Cash Flows Continue to Support Growth / De-leveraging
2024 Cash Flows Continue to Support Growth / De-leveraging ▪ Our cash flow and balance sheet position provide us capital allocation financial flexibility: $1.1B* ✓ Ample liquidity and access to capital markets to pursue our growth FY 2024 Free Cash Flow strategy while returning capital to shareholde
Slide 13: Significant Deleveraging of the Balance Sheet
Significant Deleveraging of the Balance Sheet LEVERAGE RATIO (EBITDA) LEVERAGE RATIO (EBITDA-NCI) 6.95x 5.86x 4.85x 3.89x 3.24x 2.54x 2017 2023 2024 2017 2023 2024 Substantial reduction in leverage following significant performance improvement and hospital sales 13
Slide 14: Capital Deployment Priorities
Capital Deployment Priorities We prioritize the deployment of the free cash flow generated by our businesses to the following areas: M&A and de novo investments – baseline intention is Investments in our ASC platform $250 million per year Continued investment in technology, robotics, and Investments
Slide 15: 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 accounting principles generally accepted in the United States of America (GAAP). Reconciliations of these non-GAAP measures to the most comparable GAAP measur
Slide 16: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders (Unaudited) Three Months Ended Years Ended December 31, December 31, (Dollars in millions, except per share
Slide 17: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA (Unaudited) Three Months Ended Years Ended December 31, December 31, (Dollars in millions) 2024 2023 2024 2023 Net income available to Tenet Hea
Slide 18: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) 2024 (Dollars in millions) Q4 YTD Net cash provided by (used in) operating activities $ (331) $ 2,047 Purchases of property an
Slide 19: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders (Unaudited) FY 2025 (1) The figures shown represent the Company's estimate for (Dollars in
Slide 20: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #5 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited) FY 2025 (1) The figures shown represent the Company's estimate for (Dollars in millions) Low High restructuring char
Slide 21: Supplemental Non-GAAP disclosures
Supplemental Non-GAAP disclosures Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow (Unaudited) FY 2025 (1) The figures shown represent the Company's estimate for (Dollars in millions) Low High restructuring
Slide 22: Tenet Health