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    Tenet Reports Strong Third Quarter 2024 Results; Raises 2024 Financial Outlook

    10/29/24 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 third quarter 2024 was $472 million, or $4.89 per diluted share, including an after-tax gain of $209 million, or $2.16 per diluted share, primarily associated with previously announced hospital divestitures
    • Adjusted diluted earnings per share1 was $2.93 in third quarter 2024
    • Consolidated Adjusted EBITDA1 in third quarter 2024 of $978 million increased 14.5% over third quarter 2023
    • Third quarter 2024 Ambulatory Care Adjusted EBITDA of $439 million increased 18.6% over third quarter 2023
    • FY 2024 Adjusted EBITDA Outlook now expected to be in the range of $3.9 billion to $4.0 billion, a $50 million increase

    Tenet Healthcare Corporation (Tenet) (NYSE:THC) today announced its results for the quarter ended September 30, 2024.

    "Our businesses continue to produce strong results and generate robust free cash flow with same store revenue growth and profitability well above our expectations due to the focused execution of our strategy and disciplined operations," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We have furthered our portfolio transformation and are well-positioned to deliver enhanced value to our patients, physician partners, and shareholders."

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

     

    Three Months Ended

    September 30,

    Nine Months Ended

    September 30,

    ($ in millions, except per share results)

    2024

    2023

    2024

    2023

    Net operating revenues

    $5,122

    $5,066

    $15,593

    $15,169

    Net income available to Tenet common shareholders

    $472

    $101

    $2,882

    $367

    Net income available to Tenet common shareholders per diluted share

    $4.89

    $0.94

    $29.27

    $3.41

    Adjusted EBITDA1

    $978

    $854

    $2,947

    $2,529

    Adjusted diluted earnings per share1

    $2.93

    $1.44

    $8.47

    $4.30

    • Net income available to the Company's common shareholders in the third quarter 2024 was $472 million, or $4.89 per diluted share, versus $101 million, or $0.94 per diluted share, in third quarter 2023. Third quarter 2024 results included a pre-tax gain of $348 million ($209 million after-tax or $2.16 per diluted share) primarily associated with the sale of the Company's 70% majority ownership interest in Brookwood Baptist Health in Alabama.
    • Adjusted EBITDA1 in third quarter 2024 was $978 million compared to $854 million in third 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 higher medical fees as well as the impact of hospital divestitures.

    Balance Sheet and Cash Flows

    • Cash flows provided by operating activities for the nine months ended September 30, 2024 were $2.378 billion versus $1.550 billion for the nine months ended September 30, 2023.
    • The Company produced free cash flow1 of $1.777 billion for the nine months ended September 30, 2024 versus $1.007 billion for the nine months ended September 30, 2023.
    • In the three months ended September 30, 2024, the Company repurchased 795,112 shares of common stock for $124 million. In the nine months ended September 30, 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 2.22x at September 30, 2024 compared to 2.61x at June 30, 2024 and 3.89x at December 31, 2023.

    Recent Transaction

    • On October 1, 2024, the Company announced the completion of the sale of its 70% majority ownership interest in Brookwood Baptist Health in Birmingham, Alabama to Orlando Health in the third quarter of 2024. The completed transaction included five hospitals and other related operations. Our outlook for full year 2024 net cash provided by operating activities and free cash flow1 now reflects the anticipated payment of approximately $175 million of income taxes, primarily in connection with the net gain on the sale of these facilities.

    Ambulatory Care (Ambulatory) Segment

    Tenet's Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of September 30, 2024, USPI had interests in 520 ambulatory surgery centers (376 consolidated) and 24 surgical hospitals (seven consolidated) in 37 states.

     

    Three Months Ended

    September 30,

    Nine Months Ended

    September 30,

    Ambulatory segment results ($ in millions)

    2024

    2023

    2024

    2023

    Revenues

     

     

     

     

    Net operating revenues

    $1,139

    $941

    $3,275

    $2,788

    Same-facility system-wide net patient service revenues2

    $1,895

    $1,744

    $5,516

    $5,133

    Volume Changes versus the Prior-Year Period

     

     

     

     

    Same-facility system-wide surgical cases2

    1.0 %

    4.1 %

    0.4 %

    6.2 %

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

    (0.6) %

    5.8 %

    (0.1) %

    6.8 %

    Adjusted EBITDA, Margins and NCI

     

     

     

     

    Adjusted EBITDA

    $439

    $370

    $1,280

    $1,080

    Adjusted EBITDA margin

    38.5%

    39.3%

    39.1%

    38.7%

    Adjusted EBITDA less NCI

    $265

    $233

    $779

    $678

    • Third quarter 2024 net operating revenues increased 21.0% compared to third 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 8.7% in third quarter 2024 compared to third quarter 2023, with cases up 1.0% and net revenue per case up 7.6%. Net revenue per case growth was driven by higher acuity associated with favorable case mix as well as favorable payer mix.
    • Third quarter 2024 Adjusted EBITDA increased 18.6% compared to third quarter 2023, due to strong net revenue per case growth, disciplined expense management, and contributions from acquisitions and de novo facilities.

    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

    September 30,

    Nine Months Ended

    September 30,

    Hospital segment results ($ in millions)

    2024

    2023

    2024

    2023

    Revenues

     

     

     

     

    Net operating revenues

    $3,983

    $4,125

    $12,318

    $12,381

    Same-hospital net patient service revenues3

    $3,383

    $3,190

    $10,298

    $9,507

    Same-Hospital Volume Changes versus the Prior-Year Period

     

     

     

     

    Admissions

    5.2%

    0.6%

    4.9%

    2.6%

    Adjusted admissions4

    2.7%

    0.4%

    2.3%

    3.3%

    Outpatient visits (including outpatient ER visits)

    0.5%

    (2.0)%

    0.1%

    (1.0)%

    Emergency Room visits (inpatient and outpatient)

    (0.2)%

    (0.9)%

    1.8%

    1.3%

    Hospital surgeries

    0.6%

    (0.7)%

    —%

    0.5%

    Adjusted EBITDA

     

     

     

     

    Adjusted EBITDA

    $539

    $484

    $1,667

    $1,449

    Adjusted EBITDA margin

    13.5%

    11.7%

    13.5%

    11.7%

    • Third quarter 2024 net operating revenues declined 3.4% from third quarter 2023 primarily due to the impact of hospital divestitures in first quarter 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 3.3% year-over-year for third quarter 2024 primarily due to improved pricing yield, favorable payer mix, and our focus on growing higher acuity services.
    • Adjusted EBITDA in third quarter 2024 was $539 million compared to $484 million in third quarter 2023, reflecting strong same-hospital admissions growth and revenue per adjusted admission, favorable payer mix, and increased supplemental revenues in Michigan, partially offset by higher medical fees as well as the impact of hospital divestitures.

    2024 Outlook1

    Tenet's Outlook for full year 2024 (consolidated and by segment) and fourth quarter 2024 follows. This outlook reflects the sale of three Coastal South Carolina hospitals on January 31, 2024, the sale of six California hospitals on March 31, 2024, and the sale of five Alabama hospitals on September 30, 2024.

    CONSOLIDATED ($ in millions, except per share amounts)

    FY 2024 Outlook

    Fourth Quarter

    2024 Outlook

    Net operating revenues

    $20,600 to $20,800

    $5,007 to $5,207

    Net income available to Tenet common stockholders

    $3,093 to $3,193

    $211 to $311

    Adjusted EBITDA

    $3,900 to $4,000

    $953 to $1,053

    Adjusted EBITDA margin

    18.9% to 19.2%

    19.0% to 20.2%

    Diluted income per common share

    $31.56 to $32.58

    $2.20 to $3.24

    Adjusted net income

    $1,090 to $1,150

    $258 to $318

    Adjusted diluted earnings per share

    $11.12 to $11.73

    $2.69 to $3.31

    Equity in earnings of unconsolidated affiliates

    $260 to $270

    $78 to $88

    Depreciation and amortization

    $820 to $840

    $195 to $215

    Interest expense

    $820 to $830

    $197 to $207

    Income tax expense5

    $1,185 to $1,215

    $84 to $114

    Net income available to NCI

    $835 to $855

    $225 to $245

    Weighted average diluted common shares

    ~98 million

    ~96 million

    NCI cash distributions

    $725 to $775

     

    Net cash provided by operating activities6

    $1,775 to $2,125

     

    Adjusted net cash provided by operating activities6

    $1,950 to $2,250

     

    Capital expenditures

    $800 to $900

     

    Free cash flow6

    $975 to $1,225

     

    Adjusted free cash flow6

    $1,150 to $1,350

     

     

    Ambulatory Segment ($ in millions)

    FY 2024 Outlook

    Net operating revenues

    $4,375 to $4,425

    Adjusted EBITDA

    $1,760 to $1,800

    NCI

    $690 to $710

    Adjusted EBITDA less NCI

    $1,070 to $1,090

    Changes versus prior year7:

     

    Surgical cases volumes

    Up 0.0% to 1.0%

    Net revenues per surgical case

    Up 6.0% to 7.0%

    Hospital Segment ($ in millions)

    FY 2024 Outlook

    Net operating revenues

    $16,225 to $16,375

    Adjusted EBITDA

    $2,140 to $2,200

    NCI

    $145 to $145

    Changes versus prior year7:

     

    Inpatient admissions

    Up 4.0% to 5.0%

    Adjusted admissions

    Up 1.5% to 2.5%

    Management's Webcast Discussion of Results

    Tenet management will discuss the Company's third quarter 2024 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on October 29, 2024. 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 October 29, 2024.

    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 fourth quarter and full year 2024 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 September 30, 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. For 2024, Outlook for net cash provided by operating activities, Adjusted net cash provided by operating activities, Free cash flow and Adjusted free cash flow include an estimate of approximately $875 million of net income tax payments associated with the gains on sale of the three hospitals and related operations in South Carolina, the six hospitals and related operations in California, and the five hospitals and related operations in Alabama, approximately $175 million of which have already been paid as of September 30, 2024.
    7. 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

    Third 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 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 September 30,

     

    2024

     

    %

     

    2023

     

    %

     

    Change

    Net operating revenues

     

    $

    5,122

     

     

    100.0

    %

     

    $

    5,066

     

     

    100.0

    %

     

    1.1

    %

    Grant income

     

     

    4

     

     

    0.1

    %

     

     

    3

     

     

    0.1

    %

     

    33.3

    %

    Equity in earnings of unconsolidated affiliates

     

     

    62

     

     

    1.2

    %

     

     

    51

     

     

    1.0

    %

     

    21.6

    %

    Operating expenses:

     

     

     

     

     

     

     

     

     

     

    Salaries, wages and benefits

     

     

    2,218

     

     

    43.3

    %

     

     

    2,288

     

     

    45.2

    %

     

    (3.1

    )%

    Supplies

     

     

    881

     

     

    17.2

    %

     

     

    877

     

     

    17.3

    %

     

    0.5

    %

    Other operating expenses, net

     

     

    1,111

     

     

    21.6

    %

     

     

    1,101

     

     

    21.7

    %

     

    0.9

    %

    Depreciation and amortization

     

     

    209

     

     

    4.1

    %

     

     

    224

     

     

    4.5

    %

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    19

     

     

    0.4

    %

     

     

    47

     

     

    0.9

    %

     

     

    Litigation and investigation costs

     

     

    9

     

     

    0.2

    %

     

     

    14

     

     

    0.3

    %

     

     

    Net losses (gains) on sales, consolidation and deconsolidation of facilities

     

     

    (348

    )

     

    (6.8

    )%

     

     

    1

     

     

    —

    %

     

     

    Operating income

     

     

    1,089

     

     

    21.3

    %

     

     

    568

     

     

    11.2

    %

     

     

    Interest expense

     

     

    (202

    )

     

     

     

     

    (227

    )

     

     

     

     

    Other non-operating income, net

     

     

    35

     

     

     

     

     

    4

     

     

     

     

     

    Income before income taxes

     

     

    922

     

     

     

     

     

    345

     

     

     

     

     

    Income tax expense

     

     

    (241

    )

     

     

     

     

    (79

    )

     

     

     

     

    Net income

     

     

    681

     

     

     

     

     

    266

     

     

     

     

     

    Less: Net income available to noncontrolling interests

     

     

    209

     

     

     

     

     

    165

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    472

     

     

     

     

    $

    101

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share available to Tenet Healthcare Corporation common shareholders:

     

     

     

     

     

     

     

     

     

     

    Basic

     

    $

    4.93

     

     

     

     

    $

    0.99

     

     

     

     

     

    Diluted

     

    $

    4.89

     

     

     

     

    $

    0.94

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    95,665

     

     

     

     

     

    101,544

     

     

     

     

     

    Diluted

     

     

    96,652

     

     

     

     

     

    104,425

     

     

     

     

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (Unaudited)

     

    (Dollars in millions, except per share amounts)

     

    Nine Months Ended September 30,

     

    2024

     

    %

     

    2023

     

    %

     

    Change

    Net operating revenues

     

    $

    15,593

     

     

    100.0

    %

     

    $

    15,169

     

     

    100.0

    %

     

    2.8

    %

    Grant income

     

     

    9

     

     

    0.1

    %

     

     

    14

     

     

    0.1

    %

     

    (35.7

    )%

    Equity in earnings of unconsolidated affiliates

     

     

    182

     

     

    1.2

    %

     

     

    155

     

     

    1.0

    %

     

    17.4

    %

    Operating expenses:

     

     

     

     

     

     

     

     

     

     

    Salaries, wages and benefits

     

     

    6,707

     

     

    43.0

    %

     

     

    6,831

     

     

    45.0

    %

     

    (1.8

    )%

    Supplies

     

     

    2,717

     

     

    17.4

    %

     

     

    2,659

     

     

    17.5

    %

     

    2.2

    %

    Other operating expenses, net

     

     

    3,413

     

     

    22.0

    %

     

     

    3,319

     

     

    21.9

    %

     

    2.8

    %

    Depreciation and amortization

     

     

    625

     

     

    4.0

    %

     

     

    654

     

     

    4.3

    %

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    75

     

     

    0.5

    %

     

     

    84

     

     

    0.6

    %

     

     

    Litigation and investigation costs

     

     

    18

     

     

    0.1

    %

     

     

    28

     

     

    0.2

    %

     

     

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    (2,906

    )

     

    (18.6

    )%

     

     

    (12

    )

     

    (0.1

    )%

     

     

    Operating income

     

     

    5,135

     

     

    32.9

    %

     

     

    1,775

     

     

    11.7

    %

     

     

    Interest expense

     

     

    (623

    )

     

     

     

     

    (674

    )

     

     

     

     

    Other non-operating income, net

     

     

    89

     

     

     

     

     

    8

     

     

     

     

     

    Loss from early extinguishment of debt

     

     

    (8

    )

     

     

     

     

    (11

    )

     

     

     

     

    Income before income taxes

     

     

    4,593

     

     

     

     

     

    1,098

     

     

     

     

     

    Income tax expense

     

     

    (1,101

    )

     

     

     

     

    (243

    )

     

     

     

     

    Net income

     

     

    3,492

     

     

     

     

     

    855

     

     

     

     

     

    Less: Net income available to noncontrolling interests

     

     

    610

     

     

     

     

     

    488

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    2,882

     

     

     

     

    $

    367

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share available to Tenet Healthcare Corporation common shareholders:

     

     

     

     

     

     

     

     

     

     

    Basic

     

    $

    29.56

     

     

     

     

    $

    3.60

     

     

     

     

     

    Diluted

     

    $

    29.27

     

     

     

     

    $

    3.41

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    97,505

     

     

     

     

     

    101,869

     

     

     

     

     

    Diluted

     

     

    98,518

     

     

     

     

     

    105,021

     

     

     

     

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED BALANCE SHEETS

    (Unaudited)

     

    (Dollars in millions)

     

    September 30,

     

    December 31,

     

    2024

     

    2023

    ASSETS

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    4,094

     

     

    $

    1,228

     

    Accounts receivable

     

     

    2,598

     

     

     

    2,914

     

    Inventories of supplies, at cost

     

     

    356

     

     

     

    411

     

    Assets held for sale

     

     

    20

     

     

     

    775

     

    Other current assets

     

     

    1,691

     

     

     

    1,839

     

    Total current assets

     

     

    8,759

     

     

     

    7,167

     

    Investments and other assets

     

     

    3,064

     

     

     

    3,157

     

    Deferred income taxes

     

     

    36

     

     

     

    77

     

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

     

     

    5,552

     

     

     

    6,236

     

    Goodwill

     

     

    10,588

     

     

     

    10,307

     

    Other intangible assets, at cost, less accumulated amortization

     

     

    1,373

     

     

     

    1,368

     

    Total assets

     

    $

    29,372

     

     

    $

    28,312

     

     

     

     

     

     

    LIABILITIES AND EQUITY

     

     

     

     

    Current liabilities:

     

     

     

     

    Current portion of long-term debt

     

    $

    95

     

     

    $

    120

     

    Accounts payable

     

     

    1,265

     

     

     

    1,408

     

    Accrued compensation and benefits

     

     

    879

     

     

     

    930

     

    Professional and general liability reserves

     

     

    286

     

     

     

    254

     

    Accrued interest payable

     

     

    248

     

     

     

    200

     

    Liabilities held for sale

     

     

    12

     

     

     

    69

     

    Income tax payable

     

     

    826

     

     

     

    23

     

    Other current liabilities

     

     

    1,927

     

     

     

    1,756

     

    Total current liabilities

     

     

    5,538

     

     

     

    4,760

     

    Long-term debt, net of current portion

     

     

    12,776

     

     

     

    14,882

     

    Professional and general liability reserves

     

     

    855

     

     

     

    792

     

    Defined benefit plan obligations

     

     

    308

     

     

     

    335

     

    Deferred income taxes

     

     

    260

     

     

     

    326

     

    Other long-term liabilities

     

     

    1,560

     

     

     

    1,709

     

    Total liabilities

     

     

    21,297

     

     

     

    22,804

     

    Commitments and contingencies

     

     

     

     

    Redeemable noncontrolling interests in equity of consolidated subsidiaries

     

     

    2,649

     

     

     

    2,391

     

    Equity:

     

     

     

     

    Shareholders' equity:

     

     

     

     

    Common stock

     

     

    8

     

     

     

    8

     

    Additional paid-in capital

     

     

    4,849

     

     

     

    4,834

     

    Accumulated other comprehensive loss

     

     

    (175

    )

     

     

    (181

    )

    Retained earnings (accumulated deficit)

     

     

    2,690

     

     

     

    (192

    )

    Common stock in treasury, at cost

     

     

    (3,538

    )

     

     

    (2,861

    )

    Total shareholders' equity

     

     

    3,834

     

     

     

    1,608

     

    Noncontrolling interests

     

     

    1,592

     

     

     

    1,509

     

    Total equity

     

     

    5,426

     

     

     

    3,117

     

    Total liabilities and equity

     

    $

    29,372

     

     

    $

    28,312

     

    TENET HEALTHCARE CORPORATION

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

     

    (Dollars in millions)

     

    Nine Months Ended

     

    September 30,

     

    2024

     

    2023

    Net income

     

    $

    3,492

     

     

    $

    855

     

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

     

     

     

     

    Depreciation and amortization

     

     

    625

     

     

     

    654

     

    Deferred income tax expense (benefit)

     

     

    (29

    )

     

     

    75

     

    Stock-based compensation expense

     

     

    52

     

     

     

    48

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    75

     

     

     

    84

     

    Litigation and investigation costs

     

     

    18

     

     

     

    28

     

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    (2,906

    )

     

     

    (12

    )

    Loss from early extinguishment of debt

     

     

    8

     

     

     

    11

     

    Equity in earnings of unconsolidated affiliates, net of distributions received

     

     

    (9

    )

     

     

    5

     

    Amortization of debt discount and debt issuance costs

     

     

    21

     

     

     

    25

     

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

     

     

    (2

    )

     

     

    (25

    )

    Other items, net

     

     

    (3

    )

     

     

    (1

    )

    Changes in cash from operating assets and liabilities:

     

     

     

     

    Accounts receivable

     

     

    183

     

     

     

    31

     

    Inventories and other current assets

     

     

    10

     

     

     

    (49

    )

    Income taxes

     

     

    821

     

     

     

    (46

    )

    Accounts payable, accrued expenses and other current liabilities

     

     

    123

     

     

     

    (38

    )

    Other long-term liabilities

     

     

    18

     

     

     

    10

     

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

     

     

    (119

    )

     

     

    (105

    )

    Net cash provided by operating activities

     

     

    2,378

     

     

     

    1,550

     

    Cash flows from investing activities:

     

     

     

     

    Purchases of property and equipment

     

     

    (601

    )

     

     

    (543

    )

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

     

     

    (524

    )

     

     

    (110

    )

    Proceeds from sales of facilities and other assets

     

     

    4,965

     

     

     

    38

     

    Proceeds from sales of marketable securities and long-term investments

     

     

    25

     

     

     

    40

     

    Purchases of marketable securities and long-term investments

     

     

    (46

    )

     

     

    (54

    )

    Other items, net

     

     

    (18

    )

     

     

    (7

    )

    Net cash provided by (used in) investing activities

     

     

    3,801

     

     

     

    (636

    )

    Cash flows from financing activities:

     

     

     

     

    Repayments of borrowings

     

     

    (2,212

    )

     

     

    (1,478

    )

    Proceeds from borrowings

     

     

    16

     

     

     

    1,368

     

    Repurchases of common stock

     

     

    (672

    )

     

     

    (90

    )

    Debt issuance costs

     

     

    —

     

     

     

    (16

    )

    Distributions paid to noncontrolling interests

     

     

    (496

    )

     

     

    (425

    )

    Proceeds from the sale of noncontrolling interests

     

     

    13

     

     

     

    37

     

    Purchases of noncontrolling interests

     

     

    (127

    )

     

     

    (127

    )

    Advances from managed care payers

     

     

    342

     

     

     

    —

     

    Repayments of advances from managed care payers

     

     

    (160

    )

     

     

    —

     

    Other items, net

     

     

    (17

    )

     

     

    13

     

    Net cash used in financing activities

     

     

    (3,313

    )

     

     

    (718

    )

    Net increase in cash and cash equivalents

     

     

    2,866

     

     

     

    196

     

    Cash and cash equivalents at beginning of period

     

     

    1,228

     

     

     

    858

     

    Cash and cash equivalents at end of period

     

    $

    4,094

     

     

    $

    1,054

     

    Supplemental disclosures:

     

     

     

     

    Interest paid, net of capitalized interest

     

    $

    (555

    )

     

    $

    (589

    )

    Income tax payments, net

     

    $

    (308

    )

     

    $

    (212

    )

    TENET HEALTHCARE CORPORATION

    SEGMENT REPORTING

    (Unaudited)

     

     

     

    Three Months Ended

     

    Nine Months Ended

     

     

    September 30,

     

    September 30,

    (Dollars in millions)

     

    2024

     

    2023

     

    2024

     

    2023

    Net operating revenues:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    1,139

     

     

    $

    941

     

     

    $

    3,275

     

     

    $

    2,788

     

    Hospital Operations and Services

     

     

    3,983

     

     

     

    4,125

     

     

     

    12,318

     

     

     

    12,381

     

    Total

     

    $

    5,122

     

     

    $

    5,066

     

     

    $

    15,593

     

     

    $

    15,169

     

     

     

     

     

     

     

     

     

     

    Equity in earnings of unconsolidated affiliates:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    61

     

     

    $

    50

     

     

    $

    175

     

     

    $

    149

     

    Hospital Operations and Services

     

     

    1

     

     

     

    1

     

     

     

    7

     

     

     

    6

     

    Total

     

    $

    62

     

     

    $

    51

     

     

    $

    182

     

     

    $

    155

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    439

     

     

    $

    370

     

     

    $

    1,280

     

     

    $

    1,080

     

    Hospital Operations and Services

     

     

    539

     

     

     

    484

     

     

     

    1,667

     

     

     

    1,449

     

    Total

     

    $

    978

     

     

    $

    854

     

     

    $

    2,947

     

     

    $

    2,529

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA margins:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

     

    38.5

    %

     

     

    39.3

    %

     

     

    39.1

    %

     

     

    38.7

    %

    Hospital Operations and Services

     

     

    13.5

    %

     

     

    11.7

    %

     

     

    13.5

    %

     

     

    11.7

    %

    Total

     

     

    19.1

    %

     

     

    16.9

    %

     

     

    18.9

    %

     

     

    16.7

    %

     

     

     

     

     

     

     

     

     

    Capital expenditures:

     

     

     

     

     

     

     

     

    Ambulatory Care

     

    $

    28

     

     

    $

    20

     

     

    $

    65

     

     

    $

    58

     

    Hospital Operations and Services

     

     

    188

     

     

     

    156

     

     

     

    536

     

     

     

    485

     

    Total

     

    $

    216

     

     

    $

    176

     

     

    $

    601

     

     

    $

    543

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    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

     

    Nine Months Ended

     

     

    September 30,

     

    September 30,

    (Dollars in millions, except per share amounts)

     

    2024

     

    2023

     

    2024

     

    2023

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    472

     

     

    $

    101

     

     

    $

    2,882

     

     

    $

    367

     

    Less:

     

     

     

     

     

     

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (19

    )

     

     

    (47

    )

     

     

    (75

    )

     

     

    (84

    )

    Litigation and investigation costs

     

     

    (9

    )

     

     

    (14

    )

     

     

    (18

    )

     

     

    (28

    )

    Net gains (losses) on sales, consolidation and deconsolidation of facilities

     

     

    348

     

     

     

    (1

    )

     

     

    2,906

     

     

     

    12

     

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (11

    )

    Tax and noncontrolling interests impact of above items

     

     

    (130

    )

     

     

    10

     

     

     

    (755

    )

     

     

    17

     

    Adjusted net income available to common shareholders

     

    $

    282

     

     

    $

    153

     

     

    $

    832

     

     

    $

    461

     

     

     

     

     

     

     

     

     

     

    Diluted earnings per share

     

    $

    4.89

     

     

    $

    0.94

     

     

    $

    29.27

     

     

    $

    3.41

     

    Less:

     

     

     

     

     

     

     

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (0.20

    )

     

     

    (0.45

    )

     

     

    (0.76

    )

     

     

    (0.80

    )

    Litigation and investigation costs

     

     

    (0.09

    )

     

     

    (0.13

    )

     

     

    (0.19

    )

     

     

    (0.27

    )

    Net gains (losses) on sales, consolidation and deconsolidation of facilities

     

     

    3.60

     

     

     

    (0.01

    )

     

     

    29.50

     

     

     

    0.12

     

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (0.08

    )

     

     

    (0.10

    )

    Tax and noncontrolling interests impact of above items

     

     

    (1.35

    )

     

     

    0.09

     

     

     

    (7.67

    )

     

     

    0.16

     

    Adjusted diluted earnings per share

     

    $

    2.93

     

     

    $

    1.44

     

     

    $

    8.47

     

     

    $

    4.30

     

     

     

     

     

     

     

     

     

     

    Weighted average basic shares outstanding (in thousands)

     

     

    95,665

     

     

     

    101,544

     

     

     

    97,505

     

     

     

    101,869

     

    Weighted average dilutive shares outstanding (in thousands)

     

     

    96,652

     

     

     

    104,425

     

     

     

    98,518

     

     

     

    105,021

     

    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

     

    Nine Months Ended

     

     

    September 30,

     

    September 30,

    (Dollars in millions)

     

    2024

     

    2023

     

    2024

     

    2023

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    472

     

     

    $

    101

     

     

    $

    2,882

     

     

    $

    367

     

    Less:

     

     

     

     

     

     

     

     

    Net income available to noncontrolling interests

     

     

    (209

    )

     

     

    (165

    )

     

     

    (610

    )

     

     

    (488

    )

    Net income

     

     

    681

     

     

     

    266

     

     

     

    3,492

     

     

     

    855

     

    Income tax expense

     

     

    (241

    )

     

     

    (79

    )

     

     

    (1,101

    )

     

     

    (243

    )

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (11

    )

    Other non-operating income, net

     

     

    35

     

     

     

    4

     

     

     

    89

     

     

     

    8

     

    Interest expense

     

     

    (202

    )

     

     

    (227

    )

     

     

    (623

    )

     

     

    (674

    )

    Operating income

     

     

    1,089

     

     

     

    568

     

     

     

    5,135

     

     

     

    1,775

     

    Litigation and investigation costs

     

     

    (9

    )

     

     

    (14

    )

     

     

    (18

    )

     

     

    (28

    )

    Net gains (losses) on sales, consolidation and deconsolidation of facilities

     

     

    348

     

     

     

    (1

    )

     

     

    2,906

     

     

     

    12

     

    Impairment and restructuring charges, and acquisition-related costs

     

     

    (19

    )

     

     

    (47

    )

     

     

    (75

    )

     

     

    (84

    )

    Depreciation and amortization

     

     

    (209

    )

     

     

    (224

    )

     

     

    (625

    )

     

     

    (654

    )

    Adjusted EBITDA

     

    $

    978

     

     

    $

    854

     

     

    $

    2,947

     

     

    $

    2,529

     

     

     

     

     

     

     

     

     

     

    Net operating revenues

     

    $

    5,122

     

     

    $

    5,066

     

     

    $

    15,593

     

     

    $

    15,169

     

     

     

     

     

     

     

     

     

     

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

     

     

    9.2

    %

     

     

    2.0

    %

     

     

    18.5

    %

     

     

    2.4

    %

     

     

     

     

     

     

     

     

     

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

     

     

    19.1

    %

     

     

    16.9

    %

     

     

    18.9

    %

     

     

    16.7

    %

    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

    (Unaudited)

     

     

     

    2024

    (Dollars in millions)

     

    Q3

     

    YTD

    Net cash provided by operating activities

     

    $

    1,045

     

     

    $

    2,378

     

    Purchases of property and equipment

     

     

    (216

    )

     

     

    (601

    )

    Free cash flow

     

    $

    829

     

     

    $

    1,777

     

     

     

     

     

     

    Net cash provided by investing activities

     

    $

    667

     

     

    $

    3,801

     

    Net cash used in financing activities

     

    $

    (498

    )

     

    $

    (3,313

    )

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    1,045

     

     

    $

    2,378

     

    Less:

     

     

     

     

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

     

     

    (55

    )

     

     

    (119

    )

    Adjusted net cash provided by operating activities

     

     

    1,100

     

     

     

    2,497

     

    Purchases of property and equipment

     

     

    (216

    )

     

     

    (601

    )

    Adjusted free cash flow

     

    $

    884

     

     

    $

    1,896

     

     

     

    2023

    (Dollars in millions)

     

    Q3

     

    YTD

    Net cash provided by operating activities

     

    $

    503

     

     

    $

    1,550

     

    Purchases of property and equipment

     

     

    (176

    )

     

     

    (543

    )

    Free cash flow

     

    $

    327

     

     

    $

    1,007

     

     

     

     

     

     

    Net cash used in investing activities

     

    $

    (169

    )

     

    $

    (636

    )

    Net cash used in financing activities

     

    $

    (214

    )

     

    $

    (718

    )

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    503

     

     

    $

    1,550

     

    Less:

     

     

     

     

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

     

     

    (27

    )

     

     

    (105

    )

    Adjusted net cash provided by operating activities

     

     

    530

     

     

     

    1,655

     

    Purchases of property and equipment

     

     

    (176

    )

     

     

    (543

    )

    Adjusted free cash flow

     

    $

    354

     

     

    $

    1,112

     

    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)

     

     

     

    Fourth Quarter 2024

     

    FY 2024

    (Dollars in millions, except per share amounts)

     

    Low

     

    High

     

    Low

     

    High

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    211

     

     

    $

    311

     

     

    $

    3,093

     

     

    $

    3,193

     

    Less:

     

     

     

     

     

     

     

     

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

     

     

    (57

    )

     

     

    (7

    )

     

     

    (150

    )

     

     

    (100

    )

    Net gains on sales, consolidation and deconsolidation of facilities(2)

     

     

    —

     

     

     

    —

     

     

     

    2,906

     

     

     

    2,906

     

    Loss from early extinguishment of debt(2)

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (8

    )

    Tax and noncontrolling interests impact of above items

     

     

    10

     

     

     

    —

     

     

     

    (745

    )

     

     

    (755

    )

    Adjusted net income available to common shareholders

     

    $

    258

     

     

    $

    318

     

     

    $

    1,090

     

     

    $

    1,150

     

     

     

     

     

     

     

     

     

     

    Diluted earnings per share

     

    $

    2.20

     

     

    $

    3.24

     

     

    $

    31.56

     

     

    $

    32.58

     

    Less:

     

     

     

     

     

     

     

     

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

     

     

    (0.59

    )

     

     

    (0.07

    )

     

     

    (1.53

    )

     

     

    (1.02

    )

    Net gains on sales, consolidation and deconsolidation of facilities

     

     

    —

     

     

     

    —

     

     

     

    29.65

     

     

     

    29.65

     

    Loss from early extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    (0.08

    )

     

     

    (0.08

    )

    Tax and noncontrolling interests impact of above items

     

     

    0.10

     

     

     

    —

     

     

     

    (7.60

    )

     

     

    (7.70

    )

    Adjusted diluted earnings per share

     

    $

    2.69

     

     

    $

    3.31

     

     

    $

    11.12

     

     

    $

    11.73

     

     

     

     

     

     

     

     

     

     

    Weighted average basic shares outstanding (in thousands)

     

     

    95,000

     

     

     

    95,000

     

     

     

    97,000

     

     

     

    97,000

     

    Weighted average dilutive shares outstanding (in thousands)

     

     

    96,000

     

     

     

    96,000

     

     

     

    98,000

     

     

     

    98,000

     

    (1)

    The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. 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.

     

    (2)

    The Company does not generally forecast net gains on sales, consolidation and deconsolidation of facilities or losses from the early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2024.

    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)

     

     

     

    Fourth Quarter 2024

     

    FY 2024

    (Dollars in millions)

     

    Low

     

    High

     

    Low

     

    High

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    211

     

     

    $

    311

     

     

    $

    3,093

     

     

    $

    3,193

     

    Less:

     

     

     

     

     

     

     

     

    Net income available to noncontrolling interests

     

     

    (225

    )

     

     

    (245

    )

     

     

    (835

    )

     

     

    (855

    )

    Income tax expense

     

     

    (84

    )

     

     

    (114

    )

     

     

    (1,185

    )

     

     

    (1,215

    )

    Interest expense

     

     

    (207

    )

     

     

    (197

    )

     

     

    (830

    )

     

     

    (820

    )

    Loss from early extinguishment of debt(2)

     

     

    —

     

     

     

    —

     

     

     

    (8

    )

     

     

    (8

    )

    Other non-operating income, net

     

     

    26

     

     

     

    36

     

     

     

    115

     

     

     

    125

     

    Net gains on sales, consolidation and deconsolidation of facilities(2)

     

     

    —

     

     

     

    —

     

     

     

    2,906

     

     

     

    2,906

     

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

     

     

    (57

    )

     

     

    (7

    )

     

     

    (150

    )

     

     

    (100

    )

    Depreciation and amortization

     

     

    (195

    )

     

     

    (215

    )

     

     

    (820

    )

     

     

    (840

    )

    Adjusted EBITDA

     

    $

    953

     

     

    $

    1,053

     

     

    $

    3,900

     

     

    $

    4,000

     

     

     

     

     

     

     

     

     

     

    Net income available to Tenet Healthcare Corporation common shareholders

     

    $

    211

     

     

    $

    311

     

     

    $

    3,093

     

     

    $

    3,193

     

    Net operating revenues

     

    $

    5,007

     

     

    $

    5,207

     

     

    $

    20,600

     

     

    $

    20,800

     

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

     

     

    4.2

    %

     

     

    6.0

    %

     

     

    15.0

    %

     

     

    15.4

    %

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

     

     

    19.0

    %

     

     

    20.2

    %

     

     

    18.9

    %

     

     

    19.2

    %

    (1)

    The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. 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.

     

    (2)

    The Company does not generally forecast net gains on sales, consolidation and deconsolidation of facilities or losses from the early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2024.

    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 2024

    (Dollars in millions)

     

    Low

     

    High

    Net cash provided by operating activities

     

    $

    1,775

     

     

    $

    2,125

     

    Purchases of property and equipment

     

     

    (800

    )

     

     

    (900

    )

    Free cash flow

     

    $

    975

     

     

    $

    1,225

     

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    1,775

     

     

    $

    2,125

     

    Less:

     

     

     

     

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

     

     

    (175

    )

     

     

    (125

    )

    Adjusted net cash provided by operating activities

     

     

    1,950

     

     

     

    2,250

     

    Purchases of property and equipment

     

     

    (800

    )

     

     

    (900

    )

    Adjusted free cash flow(2)

     

    $

    1,150

     

     

    $

    1,350

     

    (1)

    The figures shown represent the Company's estimate for restructuring payments plus the actual year-to-date payments for restructuring charges, acquisition-related costs, and litigation costs and settlements. 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/20241029442085/en/

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      Tenet Healthcare Corporation (NYSE:THC) today announced that its Board of Directors has elected Chief Executive Officer, Saum Sutaria, M.D., to assume the additional position of Chairman, effective immediately. Sutaria succeeds Senator J. Robert Kerrey, who will transition to Lead Director of the Board, a role he previously held from 2017- 2022. Sutaria has served as Tenet Healthcare's CEO since September 2021 and a member of the Board of Directors since 2020. Previously, he served as the Company's Chief Operating Officer. "The appointment of Saum to Chairman is a testament to his steadfast leadership and commitment to Tenet Healthcare," said Senator J. Robert Kerrey, Lead Director. "Th

      8/10/23 6:45:00 AM ET
      $THC
      Hospital/Nursing Management
      Health Care

    $THC
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    • Tenet to Participate in BofA Securities 2025 Health Care Conference

      Tenet Healthcare Corporation (NYSE:THC) is scheduled to present at the BofA Securities 2025 Health Care Conference on Tuesday, May 13, 2025, beginning at 1:40 p.m. Eastern time. A live webcast and audio archive of the event may be accessed through the investor relations section of Tenet's website at www.tenethealth.com/investors. The replay will be available for 30 days. 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.

      5/9/25 4:00:00 PM ET
      $THC
      Hospital/Nursing Management
      Health Care
    • Tenet Reports Strong First Quarter 2025 Results

      Net income available to common shareholders in first quarter 2025 was $406 million, or $4.27 per diluted share Adjusted diluted earnings per share1 increased 35.4% to $4.36 in first quarter 2025 compared to $3.22 in first quarter 2024 Consolidated Adjusted EBITDA1 in first quarter 2025 increased 13.6% to $1.163 billion compared to first quarter 2024; First quarter 2025 Adjusted EBITDA margin was 22.3% First quarter 2025 Ambulatory Care Adjusted EBITDA of $456 million increased 15.7% over first quarter 2024 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 f

      4/29/25 6:45:00 AM ET
      $THC
      Hospital/Nursing Management
      Health Care
    • Tenet to Report Its First Quarter 2025 Results on April 29th

      Tenet Healthcare Corporation (NYSE:THC) will release its first quarter 2025 results before the market opens on Tuesday, April 29, 2025, to be followed by a conference call at 9:00 a.m. CT (10:00 a.m. Eastern Time). A live webcast and audio archive of the call may be accessed through the investor relations section of Tenet's website at www.tenethealth.com/investors. 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 als

      4/9/25 9:00:00 AM ET
      $THC
      Hospital/Nursing Management
      Health Care