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    Tenet Reports Strong Fourth Quarter and FY 2024 Results; Provides 2025 Financial Outlook

    2/12/25 6:45:00 AM ET
    $THC
    Hospital/Nursing Management
    Health Care
    Get the next $THC alert in real time by email
    • Net income available to common shareholders in fourth quarter 2024 was $318 million, or $3.32 per diluted share
    • Adjusted diluted earnings per share1 was $3.44 in fourth quarter 2024
    • Consolidated Adjusted EBITDA1 in fourth quarter 2024 was $1.048 billion, which represents an Adjusted EBITDA margin of 20.7%
    • Fourth quarter 2024 Ambulatory Care Adjusted EBITDA of $530 million increased 14.2% over fourth quarter 2023
    • FY 2025 Adjusted EBITDA Outlook is expected to be in the range of $3.975 billion to $4.175 billion

    Tenet Healthcare Corporation (Tenet) (NYSE:THC) today announced its results for the quarter ended December 31, 2024.

    "2024 was an outstanding year for Tenet characterized by robust revenue growth, efficient operations, high levels of patient satisfaction and clinical quality, and a portfolio transformation that drove substantial balance sheet deleveraging," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "Our focused strategy, disciplined operating management, and the strong demand for acute care and ambulatory surgical services provide us with momentum as we begin the year and confidence to achieve our full year 2025 expectations."

    Tenet's results for fourth quarter 2024 versus fourth quarter 2023 are as follows:

     

    Three Months Ended December 31,

    Years Ended December 31,

    ($ in millions, except per share results)

    2024

    2023

    2024

    2023

    Net operating revenues

    $5,072

    $5,379

    $20,665

    $20,548

    Net income available to Tenet common shareholders

    $318

    $244

    $3,200

    $611

    Net income available to Tenet common shareholders per diluted share

    $3.32

    $2.30

    $32.70

    $5.71

    Adjusted EBITDA1

    $1,048

    $1,012

    $3,995

    $3,541

    Adjusted diluted earnings per share1

    $3.44

    $2.68

    $11.88

    $6.98

    • Net operating revenues in fourth quarter 2024 were $5.072 billion, versus $5.379 billion in fourth quarter 2023, reflecting the impact of the divestiture of fourteen hospitals in 2024, partially offset by strong same facility revenue growth, favorable payer mix, and acquisitions of ambulatory surgical centers.
    • Net income available to the Company's common shareholders in the fourth quarter 2024 was $318 million, or $3.32 per diluted share, versus $244 million, or $2.30 per diluted share, in fourth quarter 2023.
    • Net income available to the Company's common shareholders in 2024 was $3.2 billion, or $32.70 per diluted share, versus $611 million, or $5.71 in 2023. 2024 results included a pre-tax gain of $2.916 billion ($2.143 billion after-tax, or $21.89 per diluted share) primarily associated with the hospital divestitures.
    • Adjusted EBITDA1 in fourth quarter 2024 was $1.048 billion compared to $1.012 billion in fourth quarter 2023, reflecting strong same-hospital admissions growth, strong ambulatory net revenue per case growth, favorable payer mix, and increased Medicaid supplemental revenues in Michigan, partially offset by the impact of hospital divestitures. Fourth quarter 2023 results included $52 million of revenue associated with Medicaid supplemental revenue program adjustments in California and Texas.

    Balance Sheet and Cash Flows

    • Cash flows provided by operating activities for the year ended December 31, 2024 were $2.047 billion versus $2.374 billion for the year ended December 31, 2023. Cash flows provided by operating activities for the year ended December 31, 2024 included $855 million of income taxes paid associated with gains on sale of hospitals and related operations.
    • The Company produced free cash flow1 of $1.116 billion for the year ended December 31, 2024 versus $1.623 billion for the year ended December 31, 2023.
    • In the year ended December 31, 2024, the Company repurchased 5,596,573 shares of common stock for $672 million.
    • The Company's ratio of net debt to Adjusted EBITDA1 was 2.54x at December 31, 2024 compared to 3.89x at December 31, 2023.

    Ambulatory Care (Ambulatory) Segment

    Tenet's Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of December 31, 2024, USPI had interests in 518 ambulatory surgery centers (375 consolidated) and 25 surgical hospitals (seven consolidated) in 37 states.

     

    Three Months Ended December 31,

    Years Ended December 31,

    Ambulatory segment results ($ in millions)

    2024

    2023

    2024

    2023

    Revenues

     

     

     

     

    Net operating revenues

    $1,259

    $1,077

    $4,534

    $3,865

    Same-facility system-wide net patient service revenues2

    $2,183

    $2,010

    $7,664

    $7,109

    Volume Changes versus the Prior-Year Period

     

     

     

     

    Same-facility system-wide surgical cases2

    0.1%

    3.9%

    0.3 %

    5.6%

    Same-facility system-wide surgical cases on same-business day basis2

    (1.5)%

    3.9%

    (0.5)%

    6.0%

    Adjusted EBITDA, Margins and NCI

     

     

     

     

    Adjusted EBITDA

    $530

    $464

    $1,810

    $1,544

    Adjusted EBITDA margin

    42.1%

    43.1%

    39.9%

    39.9%

    Adjusted EBITDA less NCI

    $317

    $280

    $1,096

    $958

    • Fourth quarter 2024 net operating revenues increased 16.9% compared to fourth quarter 2023 driven by strong net revenue per case growth, acquisitions of facilities, and increased service lines.
    • Surgical business same-facility system-wide net patient service revenues increased 8.6% in fourth quarter 2024 compared to fourth quarter 2023, with cases up 0.1% and net revenue per case up 8.5%. Net revenue per case growth was driven by higher acuity associated with favorable case mix as well as favorable payer mix.
    • Fourth quarter 2024 Adjusted EBITDA increased 14.2% compared to fourth quarter 2023, due to strong net revenue per case growth, disciplined expense management, and contributions from acquisitions.

    Hospital Operations and Services (Hospital) Segment

    Tenet's Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions.

     

    Three Months Ended December 31,

    Years Ended December 31,

    Hospital segment results ($ in millions)

    2024

    2023

    2024

    2023

    Revenues

     

     

     

     

    Net operating revenues

    $3,813

    $4,302

    $16,131

    $16,683

    Same-hospital net patient service revenues3

    $3,218

    $3,104

    $12,829

    $11,968

    Same-Hospital Volume Changes versus the Prior-Year Period

     

     

     

     

    Admissions

    5.0%

    1.0%

    4.7%

    2.2%

    Adjusted admissions4

    3.1%

    0.1%

    2.5%

    2.5%

    Outpatient visits (including outpatient ER visits)

    0.4%

    (2.2)%

    0.3%

    (1.3)%

    Emergency Room visits (inpatient and outpatient)

    (2.4)%

    (3.3)%

    0.9%

    0.1%

    Hospital surgeries

    0.2%

    0.8%

    0.6%

    0.6%

    Adjusted EBITDA

     

     

     

     

    Adjusted EBITDA

    $518

    $548

    $2,185

    $1,997

    Adjusted EBITDA margin

    13.6%

    12.7%

    13.5%

    12.0%

    • Fourth quarter 2024 net operating revenues declined 11.4% from fourth quarter 2023 primarily due to the impact of hospital divestitures in 2024, partially offset by strong same hospital admissions growth, favorable payer mix, and improved pricing yield.
    • Same-hospital net patient service revenue per adjusted admission increased 0.6% year-over-year for fourth quarter 2024 primarily due to improved pricing yield, favorable payer mix, and our focus on growing higher acuity services, partially offset by net unfavorable Medicaid supplemental revenue program adjustments relative to fourth quarter 2023.
    • Adjusted EBITDA in fourth quarter 2024 was $518 million compared to $548 million in fourth quarter 2023, reflecting strong same-hospital admissions growth and revenue per adjusted admission, favorable payer mix, and increased supplemental revenues in Michigan, offset by the impact of hospital divestitures and the favorable Medicaid supplemental revenue program adjustments of $52 million in fourth quarter 2023.

    2025 Outlook1

    Tenet's Outlook for full year 2025 (consolidated and by segment) follows.

    CONSOLIDATED ($ in millions, except per share amounts)

    FY 2025 Outlook

    Net operating revenues

    $20,600 to $21,000

    Net income available to Tenet common stockholders

    $1,040 to $1,185

    Adjusted EBITDA

    $3,975 to $4,175

    Adjusted EBITDA margin

    19.3% to 19.9%

    Diluted income per common share

    $10.95 to $12.47

    Adjusted net income

    $1,115 to $1,220

    Adjusted diluted earnings per share

    $11.74 to $12.84

    Equity in earnings of unconsolidated affiliates

    $265 to $275

    Depreciation and amortization

    $805 to $835

    Interest expense

    $795 to $805

    Income tax expense5

    $420 to $465

    Net income available to NCI

    $910 to $960

    Weighted average diluted common shares

    ~95 million

    Net cash provided by operating activities

    $2,500 to $2,850

    Adjusted net cash provided by operating activities

    $2,600 to $2,900

    Capital expenditures

    $700 to $800

    Free cash flow

    $1,800 to $2,050

    Adjusted free cash flow

    $1,900 to $2,100

    NCI cash distributions

    $750 to $800

    Ambulatory Segment ($ in millions)

    FY 2025 Outlook

    Net operating revenues

    $4,850 to $5,000

    Adjusted EBITDA

    $1,915 to $1,985

    NCI

    $760 to $790

    Adjusted EBITDA less NCI

    $1,155 to $1,195

    Changes versus prior year6:

     

    Same-facility system-wide revenue

    Up 3.0% to 6.0%

     
     

    Hospital Segment ($ in millions)

    FY 2025 Outlook

    Net operating revenues

    $15,750 to $16,000

    Adjusted EBITDA

    $2,060 to $2,190

    NCI

    $150 to $170

    Changes versus prior year6:

     

    Inpatient admissions

    Up 2.0% to 3.0%

    Adjusted admissions

    Up 2.0% to 3.0%

    Management's Webcast Discussion of Results

    Tenet management will discuss the Company's fourth quarter 2024 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 12, 2025. Investors can access the webcast through the Company's website at www.tenethealth.com/investors.

    The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company's Investor Relations website on February 12, 2025.

    Cautionary Statement

    This release contains "forward-looking statements" - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company's expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "assume," "believe," "budget," "estimate," "forecast," "intend," "plan," "predict," "project," "seek," "see," "target," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause the Company's actual results to be materially different than those expressed in the Company's forward-looking statements include, but are not limited to the factors disclosed under "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2023 and other filings with the Securities and Exchange Commission.

    Footnotes

    1. Tables and discussions throughout this earnings release include certain financial measures, including those related to our first quarter and full year 2025 Outlook, that are not in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-6 included at the end of this earnings release. Management's reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release.
    2. Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that are not consolidated by Tenet. To help analyze the segment's results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities.
    3. For 2024, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company's Hospital segment continuously from January 1, 2023 through December 31, 2024. Amounts associated with physician practices are excluded.
    4. Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues.
    5. Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% plus an estimate of state taxes) by the sum of: pretax income less GAAP facility level NCI expense plus permanent differences, and non-deductible interest expense.
    6. Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics.

    About Tenet Healthcare

    Tenet Healthcare Corporation (NYSE:THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.

    Non-GAAP Financial Measures

    The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company's financial performance. Investors, analysts, Company management and the Company's Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company's financial and operating performance and compare the Company's performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases. The Human Resources Committee of the Company's Board of Directors also uses certain of these measures to evaluate management's performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.

    • Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation benefit (costs), net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization and (12) income (loss) from divested and closed businesses (i.e., health plan businesses). Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.
    • Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period.
    • Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses) and (7) the associated impact of these items on taxes and noncontrolling interests. Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.
    • Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
    • Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
    • Adjusted net cash provided by (used in) operating activities is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, and (2) net cash provided by (used in) operating activities from discontinued operations.

    The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company's common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.

    The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company's operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt.

    These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in the Company's financial statements, they do not provide a complete measure of the Company's operating performance. For example, the Company's definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company's Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company's financial performance.

    See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below. 

    Tenet Healthcare Corporation

    Financial Statements and Reconciliations

    Fourth Quarter Earnings Release

     

    Table of Contents

     

    Description

    Page

    Consolidated Statements of Operations

    12

    Consolidated Balance Sheets

    14

    Consolidated Statements of Cash Flows

    15

    Segment Reporting

    17

    Table #1 – Reconciliations of Net Income to Adjusted Net Income

    18

    Table #2 – Reconciliations of Net Income to Adjusted EBITDA

    19

    Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow

    20

    Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income

    21

    Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA

    22

    Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow

    23

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (Unaudited)

     

    (Dollars in millions, except per share amounts)

     

    Three Months Ended December 31,

     

    2024

     

    %

     

    2023

     

    %

     

    Change

    Net operating revenues

     

    $

    5,072

     

     

    100.0

    %

     

    $

    5,379

     

     

    100.0

    %

     

    (5.7

    )%

    Grant income

     

     

    1

     

     

    —

    %

     

     

    2

     

     

    —

    %

     

    (50.0

    )%

    Equity in earnings of unconsolidated affiliates

     

     

    78

     

     

    1.5

    %

     

     

    73

     

     

    1.4

    %

     

    6.8

    %

    Operating expenses:

     

     

     

     

     

     

     

     

     

     

    Salaries, wages and benefits

     

     

    2,094

     

     

    41.3

    %

     

     

    2,315

     

     

    43.0

    %

     

    (9.5

    )%

    Supplies

     

     

    930

     

     

    18.3

    %

     

     

    931

     

     

    17.3

    %

     

    (0.1

    )%

    Other operating expenses, net

     

     

    1,079

     

     

    21.3

    %

     

     

    1,196

     

     

    22.2

    %

     

    (9.8

    )%

    Depreciation and amortization

     

     

    193

     

     

    3.8

    %

     

     

    216

     

     

    4.0

    %

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    27

     

     

    0.5

    %

     

     

    53

     

     

    1.0

    %

     

     

    Litigation and investigation costs

     

     

    17

     

     

    0.3

    %

     

     

    19

     

     

    0.4

    %

     

     

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    (10

    )

     

    (0.2

    )%

     

     

    (11

    )

     

    (0.2

    )%

     

     

    Operating income

     

     

    821

     

     

    16.2

    %

     

     

    735

     

     

    13.7

    %

     

     

    Interest expense

     

     

    (203

    )

     

     

     

     

    (227

    )

     

     

     

     

    Other non-operating income, net

     

     

    37

     

     

     

     

     

    11

     

     

     

     

     

    Income before income taxes

     

     

    655

     

     

     

     

     

    519

     

     

     

     

     

    Income tax expense

     

     

    (83

    )

     

     

     

     

    (63

    )

     

     

     

     

    Net income

     

     

    572

     

     

     

     

     

    456

     

     

     

     

     

    Less: Net income available to noncontrolling interests

     

     

    254

     

     

     

     

     

    212

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    318

     

     

     

     

    $

    244

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share available to Tenet Healthcare Corporation common shareholders:

     

     

     

     

     

     

     

     

     

     

    Basic

     

    $

    3.34

     

     

     

     

    $

    2.42

     

     

     

     

     

    Diluted

     

    $

    3.32

     

     

     

     

    $

    2.30

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average shares and dilutive securities outstanding (in thousands):

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    95,102

     

     

     

     

     

    100,956

     

     

     

     

     

    Diluted

     

     

    95,882

     

     

     

     

     

    104,167

     

     

     

     

     

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (Unaudited)

     

    (Dollars in millions, except per share amounts)

     

    Years Ended December 31,

     

    2024

     

    %

     

    2023

     

    %

     

    Change

    Net operating revenues

     

    $

    20,665

     

     

    100.0

    %

     

    $

    20,548

     

     

    100.0

    %

     

    0.6

    %

    Grant income

     

     

    10

     

     

    —

    %

     

     

    16

     

     

    0.1

    %

     

    (37.5

    )%

    Equity in earnings of unconsolidated affiliates

     

     

    260

     

     

    1.3

    %

     

     

    228

     

     

    1.1

    %

     

    14.0

    %

    Operating expenses:

     

     

     

     

     

     

     

     

     

     

    Salaries, wages and benefits

     

     

    8,801

     

     

    42.6

    %

     

     

    9,146

     

     

    44.5

    %

     

    (3.8

    )%

    Supplies

     

     

    3,647

     

     

    17.6

    %

     

     

    3,590

     

     

    17.5

    %

     

    1.6

    %

    Other operating expenses, net

     

     

    4,492

     

     

    21.7

    %

     

     

    4,515

     

     

    22.0

    %

     

    (0.5

    )%

    Depreciation and amortization

     

     

    818

     

     

    4.0

    %

     

     

    870

     

     

    4.2

    %

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    102

     

     

    0.5

    %

     

     

    137

     

     

    0.7

    %

     

     

    Litigation and investigation costs

     

     

    35

     

     

    0.2

    %

     

     

    47

     

     

    0.2

    %

     

     

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    (2,916

    )

     

    (14.1

    )%

     

     

    (23

    )

     

    (0.1

    )%

     

     

    Operating income

     

     

    5,956

     

     

    28.8

    %

     

     

    2,510

     

     

    12.2

    %

     

     

    Interest expense

     

     

    (826

    )

     

     

     

     

    (901

    )

     

     

     

     

    Other non-operating income, net

     

     

    126

     

     

     

     

     

    19

     

     

     

     

     

    Loss from early extinguishment of debt

     

     

    (8

    )

     

     

     

     

    (11

    )

     

     

     

     

    Income before income taxes

     

     

    5,248

     

     

     

     

     

    1,617

     

     

     

     

     

    Income tax expense

     

     

    (1,184

    )

     

     

     

     

    (306

    )

     

     

     

     

    Net income

     

     

    4,064

     

     

     

     

     

    1,311

     

     

     

     

     

    Less: Net income available to noncontrolling interests

     

     

    864

     

     

     

     

     

    700

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    3,200

     

     

     

     

    $

    611

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share available to Tenet Healthcare Corporation common shareholders:

     

     

     

     

     

     

     

     

     

     

    Basic

     

    $

    33.02

     

     

     

     

    $

    6.01

     

     

     

     

     

    Diluted

     

    $

    32.70

     

     

     

     

    $

    5.71

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average shares and dilutive securities outstanding (in thousands):

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    96,904

     

     

     

     

     

    101,639

     

     

     

     

     

    Diluted

     

     

    97,881

     

     

     

     

     

    104,800

     

     

     

     

     

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED BALANCE SHEETS

    (Unaudited)

     

    (Dollars in millions)

     

    December 31,

     

    December 31,

     

    2024

     

    2023

    ASSETS

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    3,019

     

     

    $

    1,228

     

    Accounts receivable

     

     

    2,536

     

     

     

    2,914

     

    Inventories of supplies, at cost

     

     

    346

     

     

     

    411

     

    Assets held for sale

     

     

    21

     

     

     

    775

     

    Other current assets

     

     

    1,760

     

     

     

    1,839

     

    Total current assets

     

     

    7,682

     

     

     

    7,167

     

    Investments and other assets

     

     

    3,037

     

     

     

    3,157

     

    Deferred income taxes

     

     

    80

     

     

     

    77

     

    Property and equipment, at cost, less accumulated depreciation and amortization

     

     

    6,049

     

     

     

    6,236

     

    Goodwill

     

     

    10,691

     

     

     

    10,307

     

    Other intangible assets, at cost, less accumulated amortization

     

     

    1,397

     

     

     

    1,368

     

    Total assets

     

    $

    28,936

     

     

    $

    28,312

     

     

     

     

     

     

    LIABILITIES AND EQUITY

     

     

     

     

    Current liabilities:

     

     

     

     

    Current portion of long-term debt

     

    $

    92

     

     

    $

    120

     

    Accounts payable

     

     

    1,294

     

     

     

    1,408

     

    Accrued compensation and benefits

     

     

    899

     

     

     

    930

     

    Professional and general liability reserves

     

     

    238

     

     

     

    254

     

    Accrued interest payable

     

     

    149

     

     

     

    200

     

    Liabilities held for sale

     

     

    13

     

     

     

    69

     

    Income tax payable

     

     

    18

     

     

     

    23

     

    Other current liabilities

     

     

    1,607

     

     

     

    1,756

     

    Total current liabilities

     

     

    4,310

     

     

     

    4,760

     

    Long-term debt, net of current portion

     

     

    13,081

     

     

     

    14,882

     

    Professional and general liability reserves

     

     

    900

     

     

     

    792

     

    Defined benefit plan obligations

     

     

    298

     

     

     

    335

     

    Deferred income taxes

     

     

    227

     

     

     

    326

     

    Other long-term liabilities

     

     

    1,573

     

     

     

    1,709

     

    Total liabilities

     

     

    20,389

     

     

     

    22,804

     

    Commitments and contingencies

     

     

     

     

    Redeemable noncontrolling interests in equity of consolidated subsidiaries

     

     

    2,727

     

     

     

    2,391

     

    Equity:

     

     

     

     

    Shareholders' equity:

     

     

     

     

    Common stock

     

     

    8

     

     

     

    8

     

    Additional paid-in capital

     

     

    4,873

     

     

     

    4,834

     

    Accumulated other comprehensive loss

     

     

    (180

    )

     

     

    (181

    )

    Retained earnings (accumulated deficit)

     

     

    3,008

     

     

     

    (192

    )

    Common stock in treasury, at cost

     

     

    (3,538

    )

     

     

    (2,861

    )

    Total shareholders' equity

     

     

    4,171

     

     

     

    1,608

     

    Noncontrolling interests

     

     

    1,649

     

     

     

    1,509

     

    Total equity

     

     

    5,820

     

     

     

    3,117

     

    Total liabilities and equity

     

    $

    28,936

     

     

    $

    28,312

     

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

     

    (Dollars in millions)

     

    Years Ended

     

    December 31,

     

    2024

     

    2023

    Net income

     

    $

    4,064

     

     

    $

    1,311

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

     

    Depreciation and amortization

     

     

    818

     

     

     

    870

     

    Deferred income tax expense (benefit)

     

     

    (103

    )

     

     

    52

     

    Stock-based compensation expense

     

     

    67

     

     

     

    66

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    102

     

     

     

    137

     

    Litigation and investigation costs

     

     

    35

     

     

     

    47

     

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    (2,916

    )

     

     

    (23

    )

    Loss from early extinguishment of debt

     

     

    8

     

     

     

    11

     

    Equity in earnings of unconsolidated affiliates, net of distributions received

     

     

    (29

    )

     

     

    (13

    )

    Amortization of debt discount and debt issuance costs

     

     

    26

     

     

     

    32

     

    Net gains from the sale of investments and long-lived assets

     

     

    (4

    )

     

     

    (29

    )

    Other items, net

     

     

    (4

    )

     

     

    (4

    )

    Changes in cash from operating assets and liabilities:

     

     

     

     

    Accounts receivable

     

     

    245

     

     

     

    (29

    )

    Inventories and other current assets

     

     

    (86

    )

     

     

    (139

    )

    Income taxes

     

     

    16

     

     

     

    10

     

    Accounts payable, accrued expenses and other current liabilities

     

     

    (30

    )

     

     

    215

     

    Other long-term liabilities

     

     

    (9

    )

     

     

    14

     

    Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

     

     

    (153

    )

     

     

    (154

    )

    Net cash provided by operating activities

     

     

    2,047

     

     

     

    2,374

     

    Cash flows from investing activities:

     

     

     

     

    Purchases of property and equipment

     

     

    (931

    )

     

     

    (751

    )

    Purchases of businesses or joint venture interests, net of cash acquired

     

     

    (571

    )

     

     

    (224

    )

    Proceeds from sales of facilities and other assets

     

     

    4,981

     

     

     

    71

     

    Proceeds from sales of marketable securities and long-term investments

     

     

    63

     

     

     

    50

     

    Purchases of marketable securities and long-term investments

     

     

    (94

    )

     

     

    (104

    )

    Other items, net

     

     

    (19

    )

     

     

    (11

    )

    Net cash provided by (used in) investing activities

     

     

    3,429

     

     

     

    (969

    )

    Cash flows from financing activities:

     

     

     

     

    Repayments of borrowings

     

     

    (2,243

    )

     

     

    (1,542

    )

    Proceeds from borrowings

     

     

    23

     

     

     

    1,370

     

    Repurchases of common stock

     

     

    (672

    )

     

     

    (200

    )

    Debt issuance costs

     

     

    —

     

     

     

    (16

    )

    Distributions paid to noncontrolling interests

     

     

    (681

    )

     

     

    (594

    )

    Proceeds from the sale of noncontrolling interests

     

     

    23

     

     

     

    43

     

    Purchases of noncontrolling interests

     

     

    (200

    )

     

     

    (167

    )

    Advances from managed care payers

     

     

    342

     

     

     

    —

     

    Repayments of advances from managed care payers

     

     

    (310

    )

     

     

    —

     

    Other items, net

     

     

    33

     

     

     

    71

     

    Net cash used in financing activities

     

     

    (3,685

    )

     

     

    (1,035

    )

    Net increase in cash and cash equivalents

     

     

    1,791

     

     

     

    370

     

    Cash and cash equivalents at beginning of period

     

     

    1,228

     

     

     

    858

     

    Cash and cash equivalents at end of period

     

    $

    3,019

     

     

    $

    1,228

     

    Supplemental disclosures:

     

     

     

     

    Interest paid, net of capitalized interest

     

    $

    (851

    )

     

    $

    (882

    )

    Income tax payments, net

     

    $

    (1,271

    )

     

    $

    (243

    )

     

    TENET HEALTHCARE CORPORATION

    SEGMENT REPORTING

    (Unaudited)

     

     

     

    Three Months Ended

     

    Years Ended

     

     

    December 31,

     

    December 31,

    (Dollars in millions)

     

    2024

     

    2023

     

    2024

     

    2023

    Net operating revenues:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    1,259

     

     

    $

    1,077

     

     

    $

    4,534

     

     

    $

    3,865

     

    Hospital Operations and Services

     

     

    3,813

     

     

     

    4,302

     

     

     

    16,131

     

     

     

    16,683

     

    Total

     

    $

    5,072

     

     

    $

    5,379

     

     

    $

    20,665

     

     

    $

    20,548

     

     

     

     

     

     

     

     

     

     

    Equity in earnings of unconsolidated affiliates:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    75

     

     

    $

    69

     

     

    $

    250

     

     

    $

    218

     

    Hospital Operations and Services

     

     

    3

     

     

     

    4

     

     

     

    10

     

     

     

    10

     

    Total

     

    $

    78

     

     

    $

    73

     

     

    $

    260

     

     

    $

    228

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    530

     

     

    $

    464

     

     

    $

    1,810

     

     

    $

    1,544

     

    Hospital Operations and Services

     

     

    518

     

     

     

    548

     

     

     

    2,185

     

     

     

    1,997

     

    Total

     

    $

    1,048

     

     

    $

    1,012

     

     

    $

    3,995

     

     

    $

    3,541

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA margins:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

     

    42.1

    %

     

     

    43.1

    %

     

     

    39.9

    %

     

     

    39.9

    %

    Hospital Operations and Services

     

     

    13.6

    %

     

     

    12.7

    %

     

     

    13.5

    %

     

     

    12.0

    %

    Total

     

     

    20.7

    %

     

     

    18.8

    %

     

     

    19.3

    %

     

     

    17.2

    %

     

     

     

     

     

     

     

     

     

    Capital expenditures:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    21

     

     

    $

    22

     

     

    $

    86

     

     

    $

    80

     

    Hospital Operations and Services

     

     

    309

     

     

     

    186

     

     

     

    845

     

     

     

    671

     

    Total

     

    $

    330

     

     

    $

    208

     

     

    $

    931

     

     

    $

    751

     

     

     

     

     

     

     

     

     

     

    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 to Common Shareholders

    (Unaudited)

     

     

     

    Three Months Ended

     

    Years Ended

     

     

    December 31,

     

    December 31,

    (Dollars in millions, except per share amounts)

     

    2024

     

    2023

     

    2024

     

    2023

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    318

     

     

    $

    244

     

     

    $

    3,200

     

     

    $

    611

     

    Less:

     

     

     

     

     

     

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (27

    )

     

     

    (53

    )

     

     

    (102

    )

     

     

    (137

    )

    Litigation and investigation costs

     

     

    (17

    )

     

     

    (19

    )

     

     

    (35

    )

     

     

    (47

    )

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    10

     

     

     

    11

     

     

     

    2,916

     

     

     

    23

     

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (11

    )

    Tax and noncontrolling interests impact of above items

     

     

    22

     

     

     

    22

     

     

     

    (733

    )

     

     

    39

     

    Adjusted net income available to common shareholders

     

    $

    330

     

     

    $

    283

     

     

    $

    1,162

     

     

    $

    744

     

     

     

     

     

     

     

     

     

     

    Diluted earnings per share

     

    $

    3.32

     

     

    $

    2.30

     

     

    $

    32.70

     

     

    $

    5.71

     

    Less:

     

     

     

     

     

     

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (0.28

    )

     

     

    (0.51

    )

     

     

    (1.04

    )

     

     

    (1.31

    )

    Litigation and investigation costs

     

     

    (0.18

    )

     

     

    (0.18

    )

     

     

    (0.36

    )

     

     

    (0.45

    )

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    0.11

     

     

     

    0.10

     

     

     

    29.79

     

     

     

    0.22

     

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (0.08

    )

     

     

    (0.10

    )

    Tax and noncontrolling interests impact of above items

     

     

    0.23

     

     

     

    0.21

     

     

     

    (7.49

    )

     

     

    0.37

     

    Adjusted diluted earnings per share

     

    $

    3.44

     

     

    $

    2.68

     

     

    $

    11.88

     

     

    $

    6.98

     

     

     

     

     

     

     

     

     

     

    Weighted average basic shares outstanding (in thousands)

     

     

    95,102

     

     

     

    100,956

     

     

     

    96,904

     

     

     

    101,639

     

    Weighted average dilutive shares outstanding (in thousands)

     

     

    95,882

     

     

     

    104,167

     

     

     

    97,881

     

     

     

    104,800

     

     

    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)

     

     

     

    Three Months Ended

     

    Years Ended

     

     

    December 31,

     

    December 31,

    (Dollars in millions)

     

    2024

     

    2023

     

    2024

     

    2023

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    318

     

     

    $

    244

     

     

    $

    3,200

     

     

    $

    611

     

    Less:

     

     

     

     

     

     

     

     

    Net income available to noncontrolling interests

     

     

    (254

    )

     

     

    (212

    )

     

     

    (864

    )

     

     

    (700

    )

    Net income

     

     

    572

     

     

     

    456

     

     

     

    4,064

     

     

     

    1,311

     

    Income tax expense

     

     

    (83

    )

     

     

    (63

    )

     

     

    (1,184

    )

     

     

    (306

    )

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (11

    )

    Other non-operating income, net

     

     

    37

     

     

     

    11

     

     

     

    126

     

     

     

    19

     

    Interest expense

     

     

    (203

    )

     

     

    (227

    )

     

     

    (826

    )

     

     

    (901

    )

    Operating income

     

     

    821

     

     

     

    735

     

     

     

    5,956

     

     

     

    2,510

     

    Litigation and investigation costs

     

     

    (17

    )

     

     

    (19

    )

     

     

    (35

    )

     

     

    (47

    )

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    10

     

     

     

    11

     

     

     

    2,916

     

     

     

    23

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (27

    )

     

     

    (53

    )

     

     

    (102

    )

     

     

    (137

    )

    Depreciation and amortization

     

     

    (193

    )

     

     

    (216

    )

     

     

    (818

    )

     

     

    (870

    )

    Adjusted EBITDA

     

    $

    1,048

     

     

    $

    1,012

     

     

    $

    3,995

     

     

    $

    3,541

     

     

     

     

     

     

     

     

     

     

    Net operating revenues

     

    $

    5,072

     

     

    $

    5,379

     

     

    $

    20,665

     

     

    $

    20,548

     

     

     

     

     

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

     

     

    6.3

    %

     

     

    4.5

    %

     

     

    15.5

    %

     

     

    3.0

    %

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

     

     

    20.7

    %

     

     

    18.8

    %

     

     

    19.3

    %

     

     

    17.2

    %

     

    TENET HEALTHCARE CORPORATION

    Additional 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 and equipment

     

     

    (330

    )

     

     

    (931

    )

    Free cash flow

     

    $

    (661

    )

     

    $

    1,116

     

     

     

     

     

     

    Net cash provided by (used in) investing activities

     

    $

    (372

    )

     

    $

    3,429

     

    Net cash used in financing activities

     

    $

    (372

    )

     

    $

    (3,685

    )

     

     

     

     

     

    Net cash provided by (used in) operating activities

     

    $

    (331

    )

     

    $

    2,047

     

    Less:

     

     

     

     

    Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

     

     

    (34

    )

     

     

    (153

    )

    Adjusted net cash provided by (used in) operating activities

     

     

    (297

    )

     

     

    2,200

     

    Purchases of property and equipment

     

     

    (330

    )

     

     

    (931

    )

    Adjusted free cash flow

     

    $

    (627

    )

     

    $

    1,269

     

     

     

     

    2023

    (Dollars in millions)

     

    Q4

     

    YTD

    Net cash provided by operating activities

     

    $

    824

     

     

    $

    2,374

     

    Purchases of property and equipment

     

     

    (208

    )

     

     

    (751

    )

    Free cash flow

     

    $

    616

     

     

    $

    1,623

     

     

     

     

     

     

    Net cash used in investing activities

     

    $

    (333

    )

     

    $

    (969

    )

    Net cash used in financing activities

     

    $

    (317

    )

     

    $

    (1,035

    )

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    824

     

     

    $

    2,374

     

    Less:

     

     

     

     

    Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

     

     

    (49

    )

     

     

    (154

    )

    Adjusted net cash provided by operating activities

     

     

    873

     

     

     

    2,528

     

    Purchases of property and equipment

     

     

    (208

    )

     

     

    (751

    )

    Adjusted free cash flow

     

    $

    665

     

     

    $

    1,777

     

     

    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 Net Income Available to Common Shareholders

    (Unaudited)

     

     

     

     

    FY 2025

    (Dollars in millions, except per share amounts)

     

     

    Low

     

    High

    Net income available to Tenet Healthcare Corporation common shareholders

     

     

    $

    1,040

     

     

    $

    1,185

     

    Less:

     

     

     

     

     

    Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1)

     

     

     

    (100

    )

     

     

    (50

    )

    Tax and noncontrolling interests impact of above items

     

     

     

    25

     

     

     

    15

     

    Adjusted net income available to common shareholders

     

     

    $

    1,115

     

     

    $

    1,220

     

     

     

     

     

     

     

    Diluted earnings per share

     

     

    $

    10.95

     

     

    $

    12.47

     

    Less:

     

     

     

     

     

    Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements

     

     

     

    (1.05

    )

     

     

    (0.53

    )

    Tax and noncontrolling interests impact of above items

     

     

     

    0.26

     

     

     

    0.16

     

    Adjusted diluted earnings per share

     

     

    $

    11.74

     

     

    $

    12.84

     

     

     

     

     

     

     

    Weighted average basic shares outstanding (in thousands)

     

     

     

    94,000

     

     

     

    94,000

     

    Weighted average dilutive shares outstanding (in thousands)

     

     

     

    95,000

     

     

     

    95,000

     

    (1)

    The figures shown represent the Company's estimate for restructuring charges. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

    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 EBITDA

    (Unaudited)

     

     

     

     

    FY 2025

    (Dollars in millions)

     

     

    Low

     

    High

    Net income available to Tenet Healthcare Corporation common shareholders

     

     

    $

    1,040

     

     

    $

    1,185

     

    Less:

     

     

     

     

     

    Net income available to noncontrolling interests

     

     

     

    (910

    )

     

     

    (960

    )

    Income tax expense

     

     

     

    (420

    )

     

     

    (465

    )

    Interest expense

     

     

     

    (805

    )

     

     

    (795

    )

    Other non-operating income, net

     

     

     

    105

     

     

     

    115

     

    Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1)

     

     

     

    (100

    )

     

     

    (50

    )

    Depreciation and amortization

     

     

     

    (805

    )

     

     

    (835

    )

    Adjusted EBITDA

     

     

    $

    3,975

     

     

    $

    4,175

     

     

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

     

    $

    1,040

     

     

    $

    1,185

     

    Net operating revenues

     

     

    $

    20,600

     

     

    $

    21,000

     

    Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

     

     

     

    5.0

    %

     

     

    5.6

    %

    Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

     

     

     

    19.3

    %

     

     

    19.9

    %

    (1)

    The figures shown represent the Company's estimate for restructuring charges. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

    TENET HEALTHCARE CORPORATION

    Additional 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

    (Dollars in millions)

     

    Low

     

    High

    Net cash provided by operating activities

     

    $

    2,500

     

     

    $

    2,850

     

    Purchases of property and equipment

     

     

    (700

    )

     

     

    (800

    )

    Free cash flow

     

    $

    1,800

     

     

    $

    2,050

     

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    2,500

     

     

    $

    2,850

     

    Less:

     

     

     

     

    Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1)

     

     

    (100

    )

     

     

    (50

    )

    Adjusted net cash provided by operating activities

     

     

    2,600

     

     

     

    2,900

     

    Purchases of property and equipment

     

     

    (700

    )

     

     

    (800

    )

    Adjusted free cash flow(2)

     

    $

    1,900

     

     

    $

    2,100

     

    (1)

    The figures shown represent the Company's estimate for restructuring payments. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

    (2)

    The Company's definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company's Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, and (ii) distributions paid to noncontrolling interests.

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250212977320/en/

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    [email protected]

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