DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE:THC) reported Adjusted EBITDA of $568 million for the second quarter of 2015, an increase of $108 million, or 23.5 percent, compared to $460 million in the second quarter of 2014. The results for the second quarter of 2015 included $16 million of Adjusted EBITDA generated by United Surgical Partners International (USPI) and Aspen Healthcare, which were acquired by Tenet on June 16, 2015.
“This was another strong quarter for Tenet with EBITDA that exceeded our expectations,” said Trevor Fetter, chairman and chief executive officer. “We continued to focus on aggressive implementation of our strategy to improve care delivery and more closely align our business with key trends shaping the healthcare system. In our hospital business, we made progress on multiple strategic partnerships that will help us achieve leadership positions in our markets, as well as plans to divest facilities. We also completed our joint venture with USPI, which makes us the leader in the fast-growing ambulatory surgery sector. We continue to position Tenet as a partner of choice for not-for-profit health systems, and we remain incredibly optimistic about the many opportunities to grow with new and existing partners through our acute care business, USPI and Conifer.”
Discussion of Results (Percentage changes in operating metrics compare Q2’15 to Q2’14 on a same-facility basis unless otherwise noted.)
Tenet generated same-hospital growth in admissions and adjusted admissions of 1.7 percent and 2.3 percent, respectively, compared to the second quarter of 2014. Paying admissions increased 2.1 percent, reflecting growth in the number of newly insured patients. Surgeries performed in our hospital segment increased 1.5 percent and emergency department visits increased 2.4 percent. On a pro forma same-facility system-wide basis, including the results of USPI and Aspen in both the second quarters of 2015 and 2014, surgical and imaging cases in our Ambulatory Care segment grew by 6.8 percent.
The company continues to benefit from declines in uninsured and charity volumes. In the six states in which we operate that expanded their Medicaid programs, same-hospital uninsured plus charity admissions declined by 639 admissions, or 31.5 percent, and Medicaid admissions increased by 767 admissions, or 2.6 percent. Uninsured plus charity outpatient visits decreased by 8,729 visits, or 15.8 percent, and Medicaid outpatient visits grew by 32,714 visits, or 9.2 percent. The six states are comprised of five states that expanded Medicaid in 2014 (Arizona, California, Illinois, Massachusetts and Michigan) and one state that expanded Medicaid in 2015 (Pennsylvania).
Including non-expansion states, same-hospital uninsured plus charity admissions decreased by 539 admissions, or 4.9 percent, and Medicaid admissions increased by 1,082 admissions, or 2.0 percent. There was a decline in same-hospital charity and uninsured outpatient visits of 10,225 visits, or 6.2 percent, and an increase in Medicaid outpatient visits of 38,872 visits, or 7.3 percent.
Tenet’s same-hospital exchange volumes were 5,301 admissions and 46,882 outpatient visits in the second quarter. Compared to the first quarter of 2015, the company drove increases in exchange admissions and exchange outpatient visits of 19.6 percent and 35.4 percent, respectively.
Net operating revenues, after the provision for doubtful accounts, grew by $454 million, or 11.2 percent, to $4.492 billion compared to net operating revenues of $4.038 billion in the second quarter of 2014. The majority of the company’s revenue growth was driven by a 2.3 percent increase in same-hospital adjusted patient admissions, a 4.5 percent increase in same-hospital net patient revenue per adjusted patient admission, and a $28 million increase in revenue at Conifer from non-Tenet customers, representing a growth rate of 19.0 percent. A portion of the company’s 4.5 percent growth in same-hospital net patient revenue per adjusted admission was due to the company recognizing $45 million of revenues in the second quarter of 2015 related to the California provider fee program compared to no revenues in the second quarter of 2014 since the current program was not approved until December 2014. The year-over-year revenue growth also benefitted from acquisitions, joint ventures and newly constructed facilities.
Total hospital selected operating expenses, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased 2.1 percent per adjusted admission in the quarter.
Tenet recorded $33 million in electronic health records incentives in the second quarter of 2015, a $25 million decrease compared to $58 million in the second quarter of 2014. Electronic health record incentive payments are recorded based on the timing of when the company’s hospitals achieve meaningful use criteria.
The company’s bad debt expense ratio was 7.3 percent of revenues before bad debt in both the second quarter of 2015 and 2014. Including $199 million and $240 million of charity care write-offs in the second quarters of 2015 and 2014, respectively, Tenet’s uncompensated care expense was $551 million and $560 million, respectively, in these periods. As a percentage of adjusted revenue, uncompensated care expense represented 10.9 percent of adjusted revenue in the second quarter of 2015, down from 12.2 percent in the second quarter of 2014.
Conifer generated $60 million of Adjusted EBITDA in the quarter ended June 30, 2015, representing a 36.4 percent increase compared to $44 million in the second quarter of 2014. Including revenue from Tenet, Conifer’s revenue increased by $55 million, or 19.3 percent, to $340 million in the second quarter of 2015 compared to revenues of $285 million in the second quarter of 2014.
Tenet generated adjusted net income from continuing operations of $76 million, or $0.75 per diluted share, in the second quarter of 2015. This excludes $136 million, or $1.35 per share, in after-tax impairment charges, restructuring charges, acquisition-related costs, and litigation and investigation costs. The company generated adjusted net income from continuing operations of $17 million, or $0.17 per diluted share, in the second quarter of 2014, excluding the comparable items that totaled $27 million after-tax, or $0.28 per share.
Including the results of both continuing and discontinued operations, Tenet reported a net loss attributable to common shareholders of $61 million after-tax, or $0.61 per share in the second quarter of 2015, compared to a net loss of $26 million after-tax, or $0.27 per share, in the second quarter of 2014.
Cash and cash equivalents were $299 million at June 30, 2015 compared to $193 million at December 31, 2014. Tenet’s outstanding borrowings on its credit line were $100 million as of June 30, 2015. Accounts receivable days outstanding were 50.7 at June 30, 2015 compared to 49.5 days at December 31, 2014. On a pro forma basis, including the revenue from USPI and Aspen for the entire second quarter, accounts receivable days outstanding would have been 48.8 at June 30, 2015. Adjusted net cash provided by operating activities in the quarter ended June 30, 2015 was $467 million; after subtracting $175 million of capital expenditures, adjusted free cash flow was $292 million.
Revised Outlook for 2015
During 2015, Tenet expects to generate net operating revenues of $18.1 billion to $18.5 billion, Adjusted EBITDA of $2.225 billion to $2.325 billion, Adjusted free cash flow of $225 million to $425 million, and Adjusted earnings per share of $1.32 to $2.21. This includes approximately $65 million of electronic health record incentives.
In the third quarter of 2015, Tenet expects to generate net operating revenues of $4.65 billion to $4.85 billion, Adjusted EBITDA of $550 million to $600 million and Adjusted earnings per share of $0.05 to $0.49. This includes approximately $8 million of electronic health record incentives.
These Outlook amounts include the estimated impact of acquisitions, divestitures and joint ventures using either the actual completion date of transactions that have already occurred or estimated completion dates later this year. Each transaction that has not yet been completed is subject to normal closing conditions and regulatory review, and in the case of the potential hospital sales in Georgia and North Carolina, the negotiation of acceptable terms and the execution of definitive agreements. The Outlook for both calendar year 2015 and the third quarter of 2015 include the following transactions that were completed or are assumed to be completed by the end of 2015:
- Tenet’s joint venture with USPI, which was completed on June 16, 2015. Tenet is the majority owner and is now consolidating the results of USPI.
- Tenet’s acquisition of Aspen Healthcare, which was completed on June 16, 2015. Tenet owns 100% of Aspen and is now consolidating its financial results.
- Tenet’s announced joint venture with Baylor Scott & White Health in Dallas. Tenet will be a minority owner in the partnership and will de-consolidate the results of its four hospitals in Dallas. If completed, Tenet will account for its ownership in these hospitals under the equity method of accounting.
- Tenet’s announced joint venture with Baptist Health System in Birmingham, Alabama. If completed, Tenet will be the majority owner and will consolidate the financial results of this partnership.
- Tenet’s announced joint venture with Dignity Health and Ascension to own and operate the Carondelet Health Network in Tucson, Arizona. If completed, Tenet will be the majority owner and will consolidate the financial results of this partnership.
- Tenet’s acquisition via a long-term lease of Hi-Desert Medical Center in Joshua Tree, California, which was completed on July 15, 2015. Tenet will be consolidating the financial results of Hi-Desert.
- Tenet’s announced sale of Saint Louis University Hospital in St. Louis, Missouri; and,
- The potential sales of Tenet’s hospitals in Georgia and North Carolina.
Tenet expects to generate net cash proceeds of approximately $1 billion from the transactions listed above, excluding the cash payments for USPI and Aspen. Tenet’s estimate of approximately $1 billion of net cash proceeds includes the anticipated working capital proceeds and the buyers’ assumption of Tenet’s capital lease obligations at certain hospitals. The company anticipates using these net proceeds for general corporate purposes, including the potential to repay portions of Tenet’s existing debt.
Management’s Webcast Discussion of Second Quarter Results
Tenet management will discuss the Company’s second quarter 2015 results on a webcast scheduled for 10:00 a.m. ET (9:00 a.m. CT) on August 4, 2015. Investors can access the webcast through Tenet’s website at www.tenethealth.com/investors. A set of slides, which will be referred to on the conference call, is available on the Quarterly Results section of the Company’s website.
Additional information regarding Tenet’s quarterly results of operations, including detailed tabular operational data, is contained in its Form 10-Q report for the three months ended June 30, 2015, which will be filed with the Securities and Exchange Commission and posted on the Tenet website before the webcast. This press release includes certain non-GAAP measures, such as Adjusted EBITDA. A reconciliation of Adjusted EBITDA to net income attributable to Tenet common shareholders is included in the financial tables at the end of this release.
Tenet Healthcare Corporation is a diversified healthcare services company with more than 125,000 employees united around a common mission: to help people live happier, healthier lives. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International (USPI), the company operates 81 general acute care hospitals, 19 short-stay surgical hospitals and over 400 outpatient centers in the United States, as well as nine facilities in the United Kingdom. Tenet’s Conifer Health Solutions subsidiary provides technology-enabled performance improvement and health management solutions to hospitals, health systems, integrated delivery networks (IDN), physician groups, self-insured organizations and health plans. For more information, please visit www.tenethealth.com.
The terms "THC," "Tenet Healthcare Corporation," "the company," "we," "us" or "our" refer to Tenet Healthcare Corporation or one or more of its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” – that is, statements that relate to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause our actual results to be materially different than those expressed in our 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, 2014 and other filings with the Securities and Exchange Commission. In addition, the Company’s 2015 outlook could be materially affected if any of the acquisitions or divestiture transactions do not close within the anticipated timeframe, the terms of the transactions materially change or the closing conditions for such transactions are not satisfied. The information contained in this release is as of the date hereof. The company assumes no obligation to update forward-looking statements contained in this release as a result of new information or future events or developments.
Tenet uses its company website to provide important information to investors about the company including the posting of important announcements regarding financial performance and corporate developments.
| TENET HEALTHCARE CORPORATION | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (Dollars in millions except per share amounts) | Three Months Ended June 30, | |||||||||||||||||||||
| 2015 | % | 2014 | % | Change | ||||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||||
| Net operating revenues before provision for doubtful accounts | $ | 4,844 | $ | 4,358 | 11.2 | % | ||||||||||||||||
| Less: Provision for doubtful accounts | 352 | 320 | 10.0 | % | ||||||||||||||||||
| Net operating revenues | 4,492 | 100.0 | % | 4,038 | 100.0 | % | 11.2 | % | ||||||||||||||
| Equity in earnings of unconsolidated affiliates | 16 | 0.4 | % | 4 | 0.1 | % | 300.0 | % | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Salaries, wages and benefits | 2,185 | 48.6 | % | 1,956 | 48.4 | % | 11.7 | % | ||||||||||||||
| Supplies | 707 | 15.7 | % | 649 | 16.1 | % | 8.9 | % | ||||||||||||||
| Other operating expenses, net | 1,081 | 24.1 | % | 1,035 | 25.6 | % | 4.4 | % | ||||||||||||||
| Electronic health record incentives | (33 | ) | (0.7 | )% | (58 | ) | (1.4 | )% | (43.1 | )% | ||||||||||||
| Depreciation and amortization | 197 | 4.4 | % | 209 | 5.2 | % | ||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 193 | 4.3 | % | 32 | 0.8 | % | ||||||||||||||||
| Litigation and investigation costs | 14 | 0.3 | % | 12 | 0.3 | % | ||||||||||||||||
| Operating income | 164 | 3.7 | % | 207 | 5.1 | % | ||||||||||||||||
| Interest expense | (217 | ) | (190 | ) | ||||||||||||||||||
| Investment earnings (losses) | (1 | ) | — | |||||||||||||||||||
| Net income (loss) from continuing operations, before income taxes | (54 | ) | 17 | |||||||||||||||||||
| Income tax benefit (expense) | 27 | (8 | ) | |||||||||||||||||||
| Net income (loss) from continuing operations, before discontinued operations | (27 | ) | 9 | |||||||||||||||||||
| Discontinued operations: | ||||||||||||||||||||||
| Loss from operations | (2 | ) | (7 | ) | ||||||||||||||||||
| Litigation and investigation costs | — | (18 | ) | |||||||||||||||||||
| Income tax benefit | 1 | 9 | ||||||||||||||||||||
| Net loss from discontinued operations | (1 | ) | (16 | ) | ||||||||||||||||||
| Net loss | (28 | ) | (7 | ) | ||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 33 | 19 | ||||||||||||||||||||
| Net loss attributable to Tenet Healthcare Corporation common shareholders | $ | (61 | ) | $ | (26 | ) | ||||||||||||||||
| Amounts attributable to Tenet Healthcare Corporation common shareholders | ||||||||||||||||||||||
| Net loss from continuing operations, net of tax | $ | (60 | ) | $ | (10 | ) | ||||||||||||||||
| Net loss from discontinued operations, net of tax | (1 | ) | (16 | ) | ||||||||||||||||||
| Net loss attributable to Tenet Healthcare Corporation common shareholders | $ | (61 | ) | $ | (26 | ) | ||||||||||||||||
| Net loss per share attributable to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||
| Basic | ||||||||||||||||||||||
| Continuing operations | $ | (0.60 | ) | $ | (0.11 | ) | ||||||||||||||||
| Discontinued operations | (0.01 | ) | (0.16 | ) | ||||||||||||||||||
| $ | (0.61 | ) | $ | (0.27 | ) | |||||||||||||||||
| Diluted | ||||||||||||||||||||||
| Continuing operations | $ | (0.60 | ) | $ | (0.11 | ) | ||||||||||||||||
| Discontinued operations | (0.01 | ) | (0.16 | ) | ||||||||||||||||||
| $ | (0.61 | ) | $ | (0.27 | ) | |||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||
| Basic | 99,244 | 97,677 | ||||||||||||||||||||
| Diluted* | 99,244 | 97,677 | ||||||||||||||||||||
*Had we generated income from continuing operations in the three months ended June 30, 2015 and 2014, the effect of employee stock options, restricted stock units and deferred compensation units on the diluted shares calculation would have been an increase of 2,673 and 2,123 shares respectively.
| TENET HEALTHCARE CORPORATION | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (Dollars in millions except per share amounts) | Six Months Ended June 30, | |||||||||||||||||||||
| 2015 | % | 2014 | % | Change | ||||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||||
| Net operating revenues before provision for doubtful accounts | $ | 9,631 | $ | 8,663 | 11.2 | % | ||||||||||||||||
| Less: Provision for doubtful accounts | 715 | 700 | 2.1 | % | ||||||||||||||||||
| Net operating revenues | 8,916 | 100.0 | % | 7,963 | 100.0 | % | 12.0 | % | ||||||||||||||
| Equity in earnings of unconsolidated affiliates | 20 | 0.2 | % | 5 | 0.1 | % | 300.0 | % | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Salaries, wages and benefits | 4,310 | 48.3 | % | 3,877 | 48.7 | % | 11.2 | % | ||||||||||||||
| Supplies | 1,394 | 15.6 | % | 1,277 | 16.0 | % | 9.2 | % | ||||||||||||||
| Other operating expenses, net | 2,174 | 24.4 | % | 2,034 | 25.5 | % | 6.9 | % | ||||||||||||||
| Electronic health record incentives | (39 | ) | (0.4 | )% | (67 | ) | (0.8 | )% | (41.8 | )% | ||||||||||||
| Depreciation and amortization | 404 | 4.5 | % | 402 | 5.0 | % | ||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 222 | 2.5 | % | 53 | 0.7 | % | ||||||||||||||||
| Litigation and investigation costs | 17 | 0.2 | % | 15 | 0.2 | % | ||||||||||||||||
| Operating income | 454 | 5.1 | % | 377 | 4.7 | % | ||||||||||||||||
| Interest expense | (416 | ) | (372 | ) | ||||||||||||||||||
| Investment earnings (losses) | (1 | ) | — | |||||||||||||||||||
| Net income from continuing operations, before income taxes | 37 | 5 | ||||||||||||||||||||
| Income tax benefit (expense) | 11 | (7 | ) | |||||||||||||||||||
| Net income (loss) from continuing operations, before discontinued operations | 48 | (2 | ) | |||||||||||||||||||
| Discontinued operations: | ||||||||||||||||||||||
| Loss from operations | (3 | ) | (15 | ) | ||||||||||||||||||
| Litigation and investigation costs | 3 | (18 | ) | |||||||||||||||||||
| Income tax benefit | — | 12 | ||||||||||||||||||||
| Net loss from discontinued operations | — | (21 | ) | |||||||||||||||||||
| Net income (loss) | 48 | (23 | ) | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 62 | 35 | ||||||||||||||||||||
| Net loss attributable to Tenet Healthcare Corporation common shareholders | $ | (14 | ) | $ | (58 | ) | ||||||||||||||||
| Amounts attributable to Tenet Healthcare Corporation common shareholders | ||||||||||||||||||||||
| Net loss from continuing operations, net of tax | $ | (14 | ) | $ | (37 | ) | ||||||||||||||||
| Net loss from discontinued operations, net of tax | — | (21 | ) | |||||||||||||||||||
| Net loss attributable to Tenet Healthcare Corporation common shareholders | $ | (14 | ) | $ | (58 | ) | ||||||||||||||||
| Net loss per share attributable to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||
| Basic | ||||||||||||||||||||||
| Continuing operations | $ | (0.14 | ) | $ | (0.38 | ) | ||||||||||||||||
| Discontinued operations | — | (0.22 | ) | |||||||||||||||||||
| $ | (0.14 | ) | $ | (0.60 | ) | |||||||||||||||||
| Diluted | ||||||||||||||||||||||
| Continuing operations | $ | (0.14 | ) | $ | (0.38 | ) | ||||||||||||||||
| Discontinued operations | — | (0.22 | ) | |||||||||||||||||||
| $ | (0.14 | ) | $ | (0.60 | ) | |||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||
| Basic | 98,972 | 97,419 | ||||||||||||||||||||
| Diluted* | 98,972 | 97,419 | ||||||||||||||||||||
*Had we generated income from continuing operations in the six months ended June 30, 2015 and 2014, the effect of employee stock options, restricted stock units and deferred compensation units on the diluted shares calculation would have been an increase of 2,423 and 2,053 shares, respectively.
| TENET HEALTHCARE CORPORATION | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (Unaudited) | ||||||||||
| June 30, | December 31, | |||||||||
| (Dollars in millions) | 2015 | 2014 | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 299 | $ | 193 | ||||||
| Accounts receivable, less allowance for doubtful accounts | 2,505 | 2,404 | ||||||||
| Inventories of supplies, at cost | 261 | 276 | ||||||||
| Income tax receivable | 27 | 2 | ||||||||
| Current portion of deferred income taxes | 637 | 747 | ||||||||
| Assets held for sale | 1,170 | 2 | ||||||||
| Other current assets | 1,110 | 1,093 | ||||||||
| Total current assets | 6,009 | 4,717 | ||||||||
| Investments and other assets | 1,017 | 384 | ||||||||
| Deferred income taxes, net of current portion | 89 | 116 | ||||||||
| Property and equipment, at cost, less accumulated depreciation and amortization | 7,135 | 7,733 | ||||||||
| Goodwill | 6,602 | 3,913 | ||||||||
| Other intangible assets, at cost, less accumulated amortization | 1,894 | 1,278 | ||||||||
| Total assets | $ | 22,746 | $ | 18,141 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Current portion of long-term debt | $ | 117 | $ | 112 | ||||||
| Accounts payable | 1,149 | 1,179 | ||||||||
| Accrued compensation and benefits | 770 | 852 | ||||||||
| Professional and general liability reserves | 204 | 189 | ||||||||
| Accrued interest payable | 204 | 194 | ||||||||
| Liabilities held for sale | 244 | — | ||||||||
| Other current liabilities | 1,086 | 1,051 | ||||||||
| Total current liabilities | 3,774 | 3,577 | ||||||||
| Long-term debt, net of current portion | 14,637 | 11,695 | ||||||||
| Professional and general liability reserves | 546 | 492 | ||||||||
| Defined benefit plan obligations | 627 | 633 | ||||||||
| Other long-term liabilities | 553 | 558 | ||||||||
| Total liabilities | 20,137 | 16,955 | ||||||||
| Commitments and contingencies | ||||||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 1,591 | 401 | ||||||||
| Equity: | ||||||||||
| Shareholders’ equity: | ||||||||||
| Common stock | 7 | 7 | ||||||||
| Additional paid-in capital | 4,774 | 4,614 | ||||||||
| Accumulated other comprehensive loss | (177 | ) | (182 | ) | ||||||
| Accumulated deficit | (1,424 | ) | (1,410 | ) | ||||||
| Common stock in treasury, at cost | (2,377 | ) | (2,378 | ) | ||||||
| Total shareholders’ equity | 803 | 651 | ||||||||
| Noncontrolling interests | 215 | 134 | ||||||||
| Total equity | 1,018 | 785 | ||||||||
| Total liabilities and equity | $ | 22,746 | $ | 18,141 | ||||||
| TENET HEALTHCARE CORPORATION | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||||
| (Unaudited) | ||||||||||
| Six Months Ended | ||||||||||
| (Dollars in millions) | June 30, | |||||||||
| 2015 | 2014 | |||||||||
| Net income (loss) | $ | 48 | $ | (23 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 404 | 402 | ||||||||
| Provision for doubtful accounts | 715 | 700 | ||||||||
| Deferred income tax benefit | (27 | ) | (7 | ) | ||||||
| Stock-based compensation expense | 33 | 26 | ||||||||
| Impairment and restructuring charges, and acquisition-related costs | 222 | 53 | ||||||||
| Litigation and investigation costs | 17 | 15 | ||||||||
| Amortization of debt discount and debt issuance costs | 21 | 14 | ||||||||
| Pre-tax loss from discontinued operations | — | 33 | ||||||||
| Other items, net | (25 | ) | (9 | ) | ||||||
| Changes in cash from operating assets and liabilities: | ||||||||||
| Accounts receivable | (779 | ) | (937 | ) | ||||||
| Inventories and other current assets | 36 | 78 | ||||||||
| Income taxes | 9 | (17 | ) | |||||||
| Accounts payable, accrued expenses and other current liabilities | (267 | ) | (32 | ) | ||||||
| Other long-term liabilities | 40 | 47 | ||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (86 | ) | (84 | ) | ||||||
| Net cash used in operating activities from discontinued operations, excluding income taxes | (8 | ) | (12 | ) | ||||||
| Net cash provided by operating activities | 353 | 247 | ||||||||
| Cash flows from investing activities: | ||||||||||
| Purchases of property and equipment — continuing operations | (359 | ) | (523 | ) | ||||||
| Purchases of businesses or joint venture interests, net of cash acquired | (636 | ) | (42 | ) | ||||||
| Proceeds from sales of marketable securities, long-term investments and other assets | 9 | 3 | ||||||||
| Other long-term assets | — | (14 | ) | |||||||
| Other items, net | 1 | — | ||||||||
| Net cash used in investing activities | (985 | ) | (576 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Repayments of borrowings under credit facility | (1,315 | ) | (1,300 | ) | ||||||
| Proceeds from borrowings under credit facility | 1,195 | 895 | ||||||||
| Repayments of other borrowings | (1,992 | ) | (68 | ) | ||||||
| Proceeds from other borrowings | 3,187 | 1,108 | ||||||||
| Deferred debt issuance costs | (72 | ) | (19 | ) | ||||||
| Distributions paid to noncontrolling interests | (23 | ) | (20 | ) | ||||||
| Contributions from noncontrolling interests | 3 | 13 | ||||||||
| Purchase of noncontrolling interests | (254 | ) | — | |||||||
| Proceeds from exercise of stock options | 9 | 11 | ||||||||
| Other items, net | — | 2 | ||||||||
| Net cash provided by financing activities | 738 | 622 | ||||||||
| Net increase in cash and cash equivalents | 106 | 293 | ||||||||
| Cash and cash equivalents at beginning of period | 193 | 113 | ||||||||
| Cash and cash equivalents at end of period | $ | 299 | $ | 406 | ||||||
| Supplemental disclosures: | ||||||||||
| Interest paid, net of capitalized interest | $ | (385 | ) | $ | (360 | ) | ||||
| Income tax refunds (payments), net | $ | (8 | ) | $ | (19 | ) | ||||
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TENET HEALTHCARE CORPORATION |
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SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) |
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(Unaudited) |
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| (Dollars in millions except per patient day, | ||||||||||||||||||||||||||||||
| per admission and per visit amounts) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| 2015 |
2014(2) |
Change |
2015(2) |
2014(2) |
Change | |||||||||||||||||||||||||
| Net inpatient revenues | $ | 2,623 | $ | 2,393 | 9.6 | % | $ | 5,313 | $ | 4,834 | 9.9 | % | ||||||||||||||||||
| Net outpatient revenues | $ | 1,484 | $ | 1,367 | 8.6 | % | $ | 2,896 | $ | 2,643 | 9.6 | % | ||||||||||||||||||
| Number of acute care hospitals (at end of period) | 80 | 79 | 1 | * | 80 | 79 | 1 | * | ||||||||||||||||||||||
| Licensed beds (at end of period) | 20,826 | 20,553 | 1.3 | % | 20,826 | 20,553 | 1.3 | % | ||||||||||||||||||||||
| Average licensed beds | 20,826 | 20,370 | 2.2 | % | 20,823 | 20,313 | 2.5 | % | ||||||||||||||||||||||
| Utilization of licensed beds | 49.1 | % | 48.9 | % | 0.2 | % | * | 50.6 | % | 49.9 | % | 0.7 | % | * | ||||||||||||||||
| Patient days - total | 929,840 | 907,093 | 2.5 | % | 1,905,752 | 1,836,257 | 3.8 | % | ||||||||||||||||||||||
| Adjusted patient days | 1,589,567 | 1,540,290 | 3.2 | % | 3,207,969 | 3,063,611 | 4.7 | % | ||||||||||||||||||||||
| Net inpatient revenue per patient day | $ | 2,821 | $ | 2,638 | 6.9 | % | $ | 2,788 | $ | 2,633 | 5.9 | % | ||||||||||||||||||
| Total admissions | 201,908 | 194,641 | 3.7 | % | 410,241 | 388,914 | 5.5 | % | ||||||||||||||||||||||
| Adjusted patient admissions | 349,122 | 333,927 | 4.6 | % | 698,191 | 655,841 | 6.5 | % | ||||||||||||||||||||||
| Charity and uninsured admissions | 10,535 | 10,927 | (3.6 | )% | 21,485 | 23,457 | (8.4 | )% | ||||||||||||||||||||||
| Net inpatient revenue per admission | $ | 12,991 | $ | 12,294 | 5.7 | % | $ | 12,951 | $ | 12,429 | 4.2 | % | ||||||||||||||||||
| Average length of stay (days) | 4.61 | 4.66 | (1.1 | )% | 4.65 | 4.72 | (1.5 | )% | ||||||||||||||||||||||
| Total surgeries | 127,523 | 123,660 | 3.1 | % | 248,926 | 241,503 | 3.1 | % | ||||||||||||||||||||||
| Admissions through emergency department | 128,570 | 122,086 | 5.3 | % | 262,114 | 244,687 | 7.1 | % | ||||||||||||||||||||||
| Emergency department visits | 742,951 | 702,009 | 5.8 | % | 1,484,484 | 1,367,011 | 8.6 | % | ||||||||||||||||||||||
| Total emergency department admissions and visits | 871,521 | 824,095 | 5.8 | % | 1,746,598 | 1,611,698 | 8.4 | % | ||||||||||||||||||||||
| Outpatient visits | 2,063,037 | 1,927,597 | 7.0 | % | 4,057,610 | 3,747,229 | 8.3 | % | ||||||||||||||||||||||
| Charity and uninsured outpatient visits | 159,634 | 166,725 | (4.3 | )% | 316,831 | 328,850 | (3.7 | )% | ||||||||||||||||||||||
| Net outpatient revenue per visit | $ | 719 | $ | 709 | 1.4 | % | $ | 714 | $ | 705 | 1.3 | % | ||||||||||||||||||
| Net patient revenue per adjusted patient admission | $ | 11,764 | $ | 11,260 | 4.5 | % | $ | 11,758 | $ | 11,401 | 3.1 | % | ||||||||||||||||||
| Net patient revenue per adjusted patient day | $ | 2,584 | $ | 2,441 | 5.9 | % | $ | 2,559 | $ | 2,441 | 4.8 | % | ||||||||||||||||||
| Net Patient Revenues from: | ||||||||||||||||||||||||||||||
| Medicare | 20.7 | % | 22.6 | % | (1.9 | )% | * | 21.3 | % | 22.6 | % | (1.3 | )% | * | ||||||||||||||||
| Medicaid | 8.5 | % | 10.1 | % | (1.6 | )% | * | 9.0 | % | 9.0 | % | — | % | * | ||||||||||||||||
| Managed care | 60.8 | % | 57.8 | % | 3.0 | % | * | 59.9 | % | 58.0 | % | 1.9 | % | * | ||||||||||||||||
| Indemnity, self-pay and other | 10.0 | % | 9.5 | % | 0.5 | % | * | 9.8 | % | 10.4 | % | (0.6 | )% | * | ||||||||||||||||
| (1) | Represents the results of Tenet’s Hospital Operations and other segment. | |
| (2) | The results for 2014 and the quarter ended March 31, 2015 have been restated to exclude the results of the surgery and imaging centers that Tenet contributed to the joint venture with United Surgical Partners International. The results for these surgery and imaging centers are now reported in Tenet’s Ambulatory Care segment. | |
| * | This change is the difference between the 2015 and 2014 amounts shown |
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||||||||||||
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) |
||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||
| (Dollars in millions except per patient day, | ||||||||||||||||||||||||||||||
| per admission and per visit amounts) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
|
2015 |
2014(2) |
Change |
2015(2) |
2014(2) |
Change | |||||||||||||||||||||||||
| Net inpatient revenues | $ | 2,576 | $ | 2,400 | 7.3 | % | $ | 5,224 | $ | 4,840 | 7.9 | % | ||||||||||||||||||
| Net outpatient revenues | $ | 1,438 | $ | 1,355 | 6.1 | % | $ | 2,815 | $ | 2,632 | 7.0 | % | ||||||||||||||||||
| Number of acute care hospitals (at end of period) | 77 | 77 | — | * | 77 | 77 | — | * | ||||||||||||||||||||||
| Licensed beds (at end of period) | 20,419 | 20,355 | 0.3 | % | 20,419 | 20,355 | 0.3 | % | ||||||||||||||||||||||
| Average licensed beds | 20,419 | 20,304 | 0.6 | % | 20,416 | 20,280 | 0.7 | % | ||||||||||||||||||||||
| Utilization of licensed beds | 49.1 | % | 49.0 | % | 0.1 | % | * | 50.6 | % | 50.0 | % | 0.6 | % | * | ||||||||||||||||
| Patient days - total | 913,127 | 905,839 | 0.8 | % | 1,871,492 | 1,835,003 | 2.0 | % | ||||||||||||||||||||||
| Adjusted patient days | 1,558,637 | 1,538,038 | 1.3 | % | 3,145,127 | 3,061,358 | 2.7 | % | ||||||||||||||||||||||
| Net inpatient revenue per patient day | $ | 2,821 | $ | 2,649 | 6.5 | % | $ | 2,791 | $ | 2,638 | 5.8 | % | ||||||||||||||||||
| Total admissions | 197,390 | 194,167 | 1.7 | % | 401,205 | 388,440 | 3.3 | % | ||||||||||||||||||||||
| Adjusted patient admissions | 340,791 | 333,073 | 2.3 | % | 681,626 | 654,988 | 4.1 | % | ||||||||||||||||||||||
| Charity and uninsured admissions | 10,361 | 10,900 | (4.9 | )% | 21,148 | 23,430 | (9.7 | )% | ||||||||||||||||||||||
| Net inpatient revenue per admission | $ | 13,050 | $ | 12,360 | 5.6 | % | $ | 13,021 | $ | 12,460 | 4.5 | % | ||||||||||||||||||
| Average length of stay (days) | 4.63 | 4.67 | (0.9 | )% | 4.66 | 4.72 | (1.3 | )% | ||||||||||||||||||||||
| Total surgeries | 125,347 | 123,459 | 1.5 | % | 244,977 | 241,302 | 1.5 | % | ||||||||||||||||||||||
| Admissions through emergency department | 125,468 | 121,872 | 3.0 | % | 255,709 | 244,473 | 4.6 | % | ||||||||||||||||||||||
| Emergency department visits | 715,897 | 699,423 | 2.4 | % | 1,429,931 | 1,364,425 | 4.8 | % | ||||||||||||||||||||||
| Total emergency department admissions and visits | 841,365 | 821,295 | 2.4 | % | 1,685,640 | 1,608,898 | 4.8 | % | ||||||||||||||||||||||
| Outpatient visits | 2,013,926 | 1,924,572 | 4.6 | % | 3,958,900 | 3,744,204 | 5.7 | % | ||||||||||||||||||||||
| Charity and uninsured outpatient visits | 155,701 | 165,926 | (6.2 | )% | 309,115 | 328,051 | (5.8 | )% | ||||||||||||||||||||||
| Net outpatient revenue per visit | $ | 714 | $ | 704 | 1.4 | % | $ | 711 | $ | 703 | 1.1 | % | ||||||||||||||||||
| Net patient revenue per adjusted patient admission | $ | 11,778 | $ | 11,274 | 4.5 | % | $ | 11,794 | $ | 11,408 | 3.4 | % | ||||||||||||||||||
| Net patient revenue per adjusted patient day | $ | 2,575 | $ | 2,441 | 5.5 | % | $ | 2,556 | $ | 2,441 | 4.7 | % | ||||||||||||||||||
| Net Patient Revenues from: | ||||||||||||||||||||||||||||||
| Medicare | 20.6 | % | 22.6 | % | (2.0 | )% | * | 21.2 | % | 22.7 | % | (1.5 | )% | * | ||||||||||||||||
| Medicaid | 8.5 | % | 10.1 | % | (1.6 | )% | * | 8.9 | % | 9.0 | % | (0.1 | )% | * | ||||||||||||||||
| Managed care | 61.0 | % | 57.9 | % | 3.1 | % | * | 59.8 | % | 57.9 | % | 1.9 | % | * | ||||||||||||||||
| Indemnity, self-pay and other | 9.9 | % | 9.4 | % | 0.5 | % | * | 10.1 | % | 10.4 | % | (0.3 | )% | * | ||||||||||||||||
| (1) | Represents the results of Tenet’s Hospital Operations and other segment. | |
| (2) | The results for 2014 and the quarter ended March 31, 2015 have been restated to exclude the results of the surgery and imaging centers that Tenet contributed to the joint venture with United Surgical Partners International. The results for these surgery and imaging centers are now reported in Tenet’s Ambulatory Care segment. | |
| * | This change is the difference between the 2015 and 2014 amounts shown |
|
TENET HEALTHCARE CORPORATION |
|||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in millions except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||
| 03/31/15 | 06/30/15 | 06/30/15 | |||||||||||||
| Net operating revenues: | |||||||||||||||
| Net operating revenues before provision for doubtful accounts | $ | 4,787 | $ | 4,844 | $ | 9,631 | |||||||||
| Less: Provision for doubtful accounts | 363 | 352 | 715 | ||||||||||||
| Net operating revenues | 4,424 | 4,492 | 8,916 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | 4 | 16 | 20 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Salaries, wages and benefits | 2,125 | 2,185 | 4,310 | ||||||||||||
| Supplies | 687 | 707 | 1,394 | ||||||||||||
| Other operating expenses, net | 1,093 | 1,081 | 2,174 | ||||||||||||
| Electronic health record incentives | (6 | ) | (33 | ) | (39 | ) | |||||||||
| Depreciation and amortization | 207 | 197 | 404 | ||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 29 | 193 | 222 | ||||||||||||
| Litigation and investigation costs | 3 | 14 | 17 | ||||||||||||
| Operating income | 290 | 164 | 454 | ||||||||||||
| Interest expense | (199 | ) | (217 | ) | (416 | ) | |||||||||
| Investment earnings (losses) | — | (1 | ) | (1 | ) | ||||||||||
| Net income (loss) from continuing operations, before income taxes | 91 | (54 | ) | 37 | |||||||||||
| Income tax benefit (expense) | (16 | ) | 27 | 11 | |||||||||||
| Net income (loss) from continuing operations, before discontinued operations | 75 | (27 | ) | 48 | |||||||||||
| Discontinued operations: | |||||||||||||||
| Loss from operations | (1 | ) | (2 | ) | (3 | ) | |||||||||
| Litigation and investigation costs | 3 | — | 3 | ||||||||||||
| Income tax benefit (expense) | (1 | ) | 1 | — | |||||||||||
| Net income (loss) from discontinued operations | 1 | (1 | ) | — | |||||||||||
| Net income (loss) | 76 | (28 | ) | 48 | |||||||||||
| Less: Net income attributable to noncontrolling interests | 29 | 33 | 62 | ||||||||||||
| Net income (loss) attributable to Tenet Healthcare Corporation common shareholders | $ | 47 | $ | (61 | ) | $ | (14 | ) | |||||||
| Amounts attributable to Tenet Healthcare Corporation common shareholders | |||||||||||||||
| Net income (loss) from continuing operations, net of tax | $ | 46 | $ | (60 | ) | $ | (14 | ) | |||||||
| Net income (loss) from discontinued operations, net of tax | 1 | (1 | ) | — | |||||||||||
| Net income (loss) attributable to Tenet Healthcare Corporation common shareholders | $ | 47 | $ | (61 | ) | $ | (14 | ) | |||||||
| Earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders: | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.47 | $ | (0.60 | ) | $ | (0.14 | ) | |||||||
| Discontinued operations | 0.01 | (0.01 | ) | — | |||||||||||
| $ | 0.48 | $ | (0.61 | ) | $ | (0.14 | ) | ||||||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.46 | $ | (0.60 | ) | $ | (0.14 | ) | |||||||
| Discontinued operations | 0.01 | (0.01 | ) | — | |||||||||||
| $ | 0.47 | $ | (0.61 | ) | $ | (0.14 | ) | ||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | |||||||||||||||
| Basic | 98,699 | 99,244 | 98,972 | ||||||||||||
| Diluted | 100,872 | 99,244 | 98,972 | ||||||||||||
|
TENET HEALTHCARE CORPORATION |
|||||||||||||||
|
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS((1)) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
| (Dollars in millions except per patient day, | |||||||||||||||
| per admission and per visit amounts) | Three Months Ended | Six Months Ended | |||||||||||||
|
03/31/15(2) |
06/30/15 | 06/30/15 | |||||||||||||
| Net inpatient revenues | $ | 2,690 | $ | 2,623 | $ | 5,313 | |||||||||
| Net outpatient revenues | $ | 1,412 | $ | 1,484 | $ | 2,896 | |||||||||
| Number of acute care hospitals (at end of period) | 80 | 80 | 80 | ||||||||||||
| Licensed beds (at end of period) | 20,826 | 20,826 | 20,826 | ||||||||||||
| Average licensed beds | 20,823 | 20,826 | 20,823 | ||||||||||||
| Utilization of licensed beds | 52.1 | % | 49.1 | % | 50.6 | % | |||||||||
| Patient days - total | 975,912 | 929,840 | 1,905,752 | ||||||||||||
| Adjusted patient days | 1,618,402 | 1,589,567 | 3,207,969 | ||||||||||||
| Net inpatient revenue per patient day | $ | 2,755 | $ | 2,821 | $ | 2,788 | |||||||||
| Total admissions | 208,333 | 201,908 | 410,241 | ||||||||||||
| Adjusted patient admissions | 349,069 | 349,122 | 698,191 | ||||||||||||
| Charity and uninsured admissions | 10,950 | 10,535 | 21,485 | ||||||||||||
| Net inpatient revenue per admission | $ | 12,907 | $ | 12,991 | $ | 12,951 | |||||||||
| Average length of stay (days) | 4.68 | 4.61 | 4.65 | ||||||||||||
| Total surgeries | 121,403 | 127,523 | 248,926 | ||||||||||||
| Admissions through emergency department | 133,544 | 128,570 | 262,114 | ||||||||||||
| Emergency department visits | 741,533 | 742,951 | 1,484,484 | ||||||||||||
| Total emergency department admissions and visits | 875,077 | 871,521 | 1,746,598 | ||||||||||||
| Outpatient visits | 1,994,573 | 2,063,037 | 4,057,610 | ||||||||||||
| Charity and uninsured outpatient visits | 157,197 | 159,634 | 316,831 | ||||||||||||
| Net outpatient revenue per visit | $ | 708 | $ | 719 | $ | 714 | |||||||||
| Net patient revenue per adjusted patient admission | $ | 11,748 | $ | 11,764 | $ | 11,758 | |||||||||
| Net patient revenue per adjusted patient day | $ | 2,534 | $ | 2,584 | $ | 2,559 | |||||||||
| Net Patient Revenues from: | |||||||||||||||
| Medicare | 21.9 | % | . | 20.7 | % | 21.3 | % | ||||||||
| Medicaid | 9.4 | % | 8.5 | % | 9.0 | % | |||||||||
| Managed care | 58.6 | % | 60.8 | % | 59.9 | % | |||||||||
| Indemnity, self-pay and other | 10.2 | % | 10.0 | % | 9.8 | % | |||||||||
| (1) | Represents the results of Tenet’s Hospital Operations and other segment. | |
| (2) | The results for the quarter ended March 31, 2015 have been restated to exclude the results of the surgery and imaging centers that Tenet contributed to the joint venture with United Surgical Partners International. The results for these surgery and imaging centers are now reported in Tenet’s Ambulatory Care segment. |
|
TENET HEALTHCARE CORPORATION |
|||||||||||||||
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
| (Dollars in millions except per patient day, | |||||||||||||||
| per admission and per visit amounts) | Three Months Ended | Six Months Ended | |||||||||||||
|
03/31/15(2) |
06/30/15 |
06/30/15 |
|||||||||||||
| Net inpatient revenues | $ | 2,648 | $ | 2,576 | $ | 5,224 | |||||||||
| Net outpatient revenues | $ | 1,377 | $ | 1,438 | $ | 2,815 | |||||||||
| Number of acute care hospitals (at end of period) | 77 | 77 | 77 | ||||||||||||
| Licensed beds (at end of period) | 20,419 | 20,419 | 20,419 | ||||||||||||
| Average licensed beds | 20,416 | 20,419 | 20,416 | ||||||||||||
| Utilization of licensed beds | 52.2 | % | 49.1 | % | 50.6 | % | |||||||||
| Patient days - total | 958,365 | 913,127 | 1,871,492 | ||||||||||||
| Adjusted patient days | 1,586,490 | 1,558,637 | 3,145,127 | ||||||||||||
| Net inpatient revenue per patient day | $ | 2,763 | $ | 2,821 | $ | 2,791 | |||||||||
| Total admissions | 203,815 | 197,390 | 401,205 | ||||||||||||
| Adjusted patient admissions | 340,835 | 340,791 | 681,626 | ||||||||||||
| Charity and uninsured admissions | 10,787 | 10,361 | 21,148 | ||||||||||||
| Net inpatient revenue per admission | $ | 12,992 | $ | 13,050 | $ | 13,021 | |||||||||
| Average length of stay (days) | 4.70 | 4.63 | 4.66 | ||||||||||||
| Total surgeries | 119,630 | 125,347 | 244,977 | ||||||||||||
| Admissions through emergency department | 130,241 | 125,468 | 255,709 | ||||||||||||
| Emergency department visits | 714,034 | 715,897 | 1,429,931 | ||||||||||||
| Total emergency department admissions and visits | 844,275 | 841,365 | 1,685,640 | ||||||||||||
| Outpatient visits | 1,944,974 | 2,013,926 | 3,958,900 | ||||||||||||
| Charity and uninsured outpatient visits | 153,414 | 155,701 | 309,115 | ||||||||||||
| Net outpatient revenue per visit | $ | 708 | $ | 714 | $ | 711 | |||||||||
| Net patient revenue per adjusted patient admission | $ | 11,809 | $ | 11,778 | $ | 11,794 | |||||||||
| Net patient revenue per adjusted patient day | $ | 2,537 | $ | 2,575 | $ | 2,556 | |||||||||
| Net Patient Revenues from: | |||||||||||||||
| Medicare | 21.8 | % | 20.6 | % | 21.2 | % | |||||||||
| Medicaid | 9.4 | % | 8.5 | % | 8.9 | % | |||||||||
| Managed care | 58.7 | % | 61.0 | % | 59.8 | % | |||||||||
| Indemnity, self-pay and other | 10.1 | % | 9.9 | % | 10.1 | % | |||||||||
| (1) | Represents the results of Tenet’s Hospital Operations and other segment. | |
| (2) | The results for the quarter ended March 31, 2015 have been restated to exclude the results of the surgery and imaging centers that Tenet contributed to the joint venture with United Surgical Partners International. The results for these surgery and imaging centers are now reported in Tenet’s Ambulatory Care segment. |
|
TENET HEALTHCARE CORPORATION |
|||||||||||||||||||||||||
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) |
|||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||
| (Dollars in millions except per patient day, | |||||||||||||||||||||||||
| per admission and per visit amounts) | Three Months Ended | Year Ended | |||||||||||||||||||||||
| 03/31/14 | 06/30/14 | 9/30/2014 | 12/31/2014 | 12/31/2014 | |||||||||||||||||||||
| Net inpatient revenues | $ | 2,440 | $ | 2,400 | $ | 2,418 | $ | 2,670 | $ | 9,928 | |||||||||||||||
| Net outpatient revenues | $ | 1,277 | $ | 1,355 | $ | 1,350 | $ | 1,406 | $ | 5,388 | |||||||||||||||
| Number of acute care hospitals (at end of period) | 77 | 77 | 77 | 77 | 77 | ||||||||||||||||||||
| Licensed beds (at end of period) | 20,255 | 20,355 | 20,355 | 20,407 | 20,407 | ||||||||||||||||||||
| Average licensed beds | 20,255 | 20,304 | 20,355 | 20,398 | 20,328 | ||||||||||||||||||||
| Utilization of licensed beds | 51.0 | % | 49.0 | % | 48.5 | % | 49.1 | % | 49.4 | % | |||||||||||||||
| Patient days - total | 929,164 | 905,839 | 908,885 | 921,926 | 3,665,814 | ||||||||||||||||||||
| Adjusted patient days | 1,523,320 | 1,538,038 | 1,538,618 | 1,549,184 | 6,149,160 | ||||||||||||||||||||
| Net inpatient revenue per patient day | $ | 2,626 | $ | 2,649 | $ | 2,660 | $ | 2,896 | $ | 2,708 | |||||||||||||||
| Total admissions | 194,273 | 194,167 | 196,609 | 198,219 | 783,268 | ||||||||||||||||||||
| Adjusted patient admissions | 321,915 | 333,073 | 336,848 | 337,170 | 1,329,006 | ||||||||||||||||||||
| Charity and uninsured admissions | 12,530 | 10,900 | 10,774 | 11,080 | 45,284 | ||||||||||||||||||||
| Net inpatient revenue per admission | $ | 12,560 | $ | 12,360 | $ | 12,299 | $ | 13,470 | $ | 12,675 | |||||||||||||||
| Average length of stay (days) | 4.78 | 4.67 | 4.62 | 4.65 | 4.68 | ||||||||||||||||||||
| Total surgeries | 117,843 | 123,459 | 125,179 | 126,136 | 492,617 | ||||||||||||||||||||
| Admissions through emergency department | 122,601 | 121,872 | 120,933 | 124,600 | 490,006 | ||||||||||||||||||||
| Emergency department visits | 665,002 | 699,423 | 699,505 | 711,351 | 2,775,281 | ||||||||||||||||||||
| Total emergency department admissions and visits | 787,603 | 821,295 | 820,438 | 835,951 | 3,265,287 | ||||||||||||||||||||
| Outpatient visits | 1,819,632 | 1,924,572 | 1,940,024 | 1,950,782 | 7,635,010 | ||||||||||||||||||||
| Charity and uninsured outpatient visits | 162,125 | 165,926 | 161,808 | 161,827 | 651,686 | ||||||||||||||||||||
| Net outpatient revenue per visit | $ | 702 | $ | 704 | $ | 696 | $ | 721 | $ | 706 | |||||||||||||||
| Net patient revenue per adjusted patient admission | $ | 11,547 | $ | 11,274 | $ | 11,186 | $ | 12,089 | $ | 11,524 | |||||||||||||||
| Net patient revenue per adjusted patient day | $ | 2,440 | $ | 2,441 | $ | 2,449 | $ | 2,631 | $ | 2,491 | |||||||||||||||
| Net Patient Revenues from: | |||||||||||||||||||||||||
| Medicare | 22.7 | % | 22.6 | % | 21.5 | % | 21.0 | % | 21.9 | % | |||||||||||||||
| Medicaid | 7.8 | % | 10.1 | % | 8.9 | % | 11.2 | % | 9.5 | % | |||||||||||||||
| Managed care | 57.8 | % | 57.9 | % | 60.4 | % | 57.7 | % | 58.5 | % | |||||||||||||||
| Indemnity, self-pay and other | 11.7 | % | 9.4 | % | 9.2 | % | 10.1 | % | 10.1 | % | |||||||||||||||
| (1) | Represents the results of Tenet’s Hospital Operations and other segment. The results for 2014 have been restated to exclude the results of the surgery and imaging centers that Tenet contributed to the joint venture with United Surgical Partners International. The results for these surgery and imaging centers are now reported in Tenet’s Ambulatory Care segment. |
| TENET HEALTHCARE CORPORATION | ||||||||||||||||||||
| SEGMENT REPORTING | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| June 30, | December 31, | |||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||
| Assets | ||||||||||||||||||||
| Hospital Operations and other |
$ |
16,678 |
$ |
17,008 | ||||||||||||||||
| Conifer | 1,151 | 929 | ||||||||||||||||||
| Ambulatory Care | 4,917 | 204 | ||||||||||||||||||
| Total |
$ |
22,746 |
$ |
18,141 | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Capital expenditures: | ||||||||||||||||||||
| Hospital Operations and other |
$ |
166 |
$ |
235 |
$ |
341 |
$ |
506 | ||||||||||||
| Conifer | 6 | 5 | 11 | 13 | ||||||||||||||||
| Ambulatory Care | 3 | 2 | 7 | 4 | ||||||||||||||||
| Total |
$ |
175 |
$ |
242 |
$ |
359 |
$ |
523 | ||||||||||||
| Net operating revenues: | ||||||||||||||||||||
| Hospital Operations and other |
$ |
4,175 |
$ |
3,811 |
$ |
8,326 |
$ |
7,523 | ||||||||||||
| Conifer | ||||||||||||||||||||
| Tenet | 165 | 138 | 325 | 278 | ||||||||||||||||
| Other customers | 175 | 147 | 357 | 292 | ||||||||||||||||
| Total Conifer revenues | 340 | 285 | 682 | 570 | ||||||||||||||||
| Ambulatory Care | 142 | 80 | 233 | 148 | ||||||||||||||||
| Intercompany eliminations | (165 | ) | (138 | ) | (325 | ) | (278 | ) | ||||||||||||
| Total |
$ |
4,492 |
$ |
4,038 |
$ |
8,916 |
$ |
7,963 | ||||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||
| Hospital Operations and other | $ | 459 | $ | 390 | $ | 877 | $ | 711 | ||||||||||||
| Conifer | 60 | 44 | 142 | 92 | ||||||||||||||||
| Ambulatory Care | 49 | 26 | 78 | 44 | ||||||||||||||||
| Total |
$ |
568 |
$ |
460 |
$ |
1,097 |
$ |
847 | ||||||||||||
| Depreciation and amortization: | ||||||||||||||||||||
| Hospital Operations and other |
$ |
178 |
$ |
200 |
$ |
369 |
$ |
385 | ||||||||||||
| Conifer | 12 | 5 | 24 | 10 | ||||||||||||||||
| Ambulatory Care | 7 | 4 | 11 | 7 | ||||||||||||||||
| Total |
$ |
197 |
$ |
209 |
$ |
404 |
$ |
402 | ||||||||||||
| Adjusted EBITDA |
$ |
568 |
$ |
460 |
$ |
1,097 |
$ |
847 | ||||||||||||
| Depreciation and amortization | (197 | ) | (209 | ) | (404 | ) | (402 | ) | ||||||||||||
| Impairments and restructuring charges, and acquisition-related costs | (193 | ) | (32 | ) | (222 | ) | (53 | ) | ||||||||||||
| Litigation and investigation costs | (14 | ) | (12 | ) | (17 | ) | (15 | ) | ||||||||||||
| Interest expense | (217 | ) | (190 | ) | (416 | ) | (372 | ) | ||||||||||||
| Investment Expense | (1 | ) | — | (1 | ) | — | ||||||||||||||
| Income (loss) from continuing operations before income taxes |
$ |
(54 | ) |
$ |
17 |
$ |
37 |
$ |
5 | |||||||||||
| TENET HEALTHCARE CORPORATION | ||||||||||||||||||||
| STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT | ||||||||||||||||||||
| INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||
|
Ambulatory |
Unconsolidated |
Ambulatory |
Unconsolidated |
|||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||
| Net operating revenues before provision for doubtful accounts | $ | 327 | $ | 534 | $ | 290 | $ | 469 | ||||||||||||
| Less: Provision for doubtful accounts | (5 | ) | (14 | ) | (4 | ) | (11 | ) | ||||||||||||
| Net operating revenues(1) | 322 | 520 | 286 | 458 | ||||||||||||||||
| Equity in earnings of unconsolidated affiliates(2) | 28 | — | 28 | — | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries, wages and benefits | 104 | 127 | 91 | 110 | ||||||||||||||||
| Supplies | 59 | 133 | 49 | 113 | ||||||||||||||||
| Other operating expenses, net | 72 | 112 | 64 | 97 | ||||||||||||||||
| Depreciation and amortization | 16 | 20 | 15 | 18 | ||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | — | 3 | — | (4 | ) | |||||||||||||||
| Operating income | 99 | 125 | 95 | 124 | ||||||||||||||||
| Interest expense | (34 | ) | (7 | ) | (30 | ) | (7 | ) | ||||||||||||
| Net income from continuing operations, before income taxes | 65 | 118 | 65 | 117 | ||||||||||||||||
| Income tax benefit (expense) | (13 | ) | (1 | ) | (13 | ) | (1 | ) | ||||||||||||
| Net income | 52 |
$ |
117 | 52 |
$ |
116 | ||||||||||||||
| Less: Net income attributable to noncontrolling interests | 41 | 39 | ||||||||||||||||||
| Net income attributable to Tenet Healthcare Corporation common shareholders |
$ |
11 |
$ |
13 | ||||||||||||||||
| Equity in earnings of unconsolidated affiliates |
$ |
28 |
$ |
28 | ||||||||||||||||
| (1) |
On a pro forma same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 6.9% during the three months ended June 30, 2015, with cases increasing 6.8% and revenue per case increasing 0.1%. |
|
| (2) | At June 30, 2015, 155 of the 296 facilities in the Company’s newly formed Ambulatory segment were not consolidated based on the nature of the segment’s joint venture relationships with physicians and prominent healthcare systems. Although revenues of the segment’s unconsolidated facilities are not recorded as revenues by the Company, equity in earnings of unconsolidated affiliates is nonetheless a significant portion of the Company’s overall earnings. To help analyze results of operations, management also uses system-wide operating measures such as system-wide revenue growth, which includes revenues of both consolidated and unconsolidated facilities. We control our remaining 141 facilities and account for these investments as consolidated subsidiaries. |
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||
| STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT | ||||||||||||||||||||
| INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||
|
Ambulatory |
Unconsolidated |
Ambulatory |
Unconsolidated |
|||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||
| Net operating revenues before provision for doubtful accounts | $ | 627 | $ | 1,020 | $ | 552 | $ | 887 | ||||||||||||
| Less: Provision for doubtful accounts | (10 | ) | (26 | ) | (7 | ) | (22 | ) | ||||||||||||
| Net operating revenues(1) | 617 | 994 | 545 | 865 | ||||||||||||||||
| Equity in earnings of unconsolidated affiliates(2) | 49 | — | 46 | — | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries, wages and benefits | 202 | 247 | 178 | 216 | ||||||||||||||||
| Supplies | 110 | 256 | 95 | 217 | ||||||||||||||||
| Other operating expenses, net | 145 | 220 | 129 | 189 | ||||||||||||||||
| Depreciation and amortization | 29 | 40 | 28 | 37 | ||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | — | 3 | 1 | (6 | ) | |||||||||||||||
| Operating income | 180 | 228 | 160 | 212 | ||||||||||||||||
| Interest expense | (68 | ) | (14 | ) | (60 | ) | (14 | ) | ||||||||||||
| Other | — | — | — | 1 | ||||||||||||||||
| Net income from continuing operations, before income taxes | 112 | 214 | 100 | 199 | ||||||||||||||||
| Income tax expense | (22 | ) | (3 | ) | (19 | ) | (4 | ) | ||||||||||||
| Net Income | 90 |
$ |
211 | 81 |
$ |
195 | ||||||||||||||
| Less: Net income attributable to noncontrolling interests | 75 | 63 | ||||||||||||||||||
| Net income attributable to Tenet Healthcare Corporation common shareholders |
$ |
15 | 18 | |||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | 49 | $ | 46 | ||||||||||||||||
| (1) |
On a pro forma same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 8.2% during the six months ended June 30, 2015, with cases increasing 7.3% and revenue per case increasing 0.8%. |
|
| (2) | At June 30, 2015, 155 of the 296 facilities in the Company’s newly formed Ambulatory segment were not consolidated based on the nature of the segment’s joint venture relationships with physicians and prominent healthcare systems. Although revenues of the segment’s unconsolidated facilities are not recorded as revenues by the Company, equity in earnings of unconsolidated affiliates is nonetheless a significant portion of the Company’s overall earnings. To help analyze results of operations, management also uses system-wide operating measures such as system-wide revenue growth, which includes revenues of both consolidated and unconsolidated facilities. We control our remaining 141 facilities and account for these investments as consolidated subsidiaries. | |
(1) Reconciliation of Adjusted EBITDA
Adjusted EBITDA, a non-GAAP term, is defined by the Company as net income (loss) attributable to Tenet Healthcare Corporation common shareholders before (1) the cumulative effect of changes in accounting principle, net of tax; (2) net loss (income) attributable to noncontrolling interests; (3) preferred stock dividends; (4) income (loss) from discontinued operations, net of tax; (5) income tax benefit (expense); (6) investment earnings (loss); (7) gain (loss) from early extinguishment of debt; (8) net gain (loss) on sales of investments; (9) interest expense; (10) litigation and investigation benefit (costs), net of insurance recoveries; (11) hurricane insurance recoveries, net of costs; (12) impairment and restructuring charges and acquisition-related costs; and (13) depreciation and amortization. The Company’s Adjusted EBITDA may not be comparable to EBITDA reported by other companies.
The Company provides this information as a supplement to GAAP information to assist itself and investors in understanding the impact of various items on its financial statements, some of which are recurring or involve cash payments. The Company uses this information in its analysis of the performance of its business excluding items that it does not consider as relevant in the performance of its hospitals in continuing operations. In addition, from time to time we use this measure to define certain performance targets under our compensation programs. Adjusted EBITDA is not a measure of liquidity, but is a measure of operating performance that management uses in its business as an alternative to net income (loss) attributable to Tenet Healthcare Corporation common shareholders. Because Adjusted EBITDA excludes many items that are included in our financial statements, it does not provide a complete measure of our operating performance. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.
The reconciliation of net income (loss) attributable to Tenet Healthcare Corporation common shareholders, the most comparable GAAP term, to Adjusted EBITDA, is set forth in the first table below for the three and six months ended June 30, 2015 and 2014.
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||
|
Additional Supplemental Non-GAAP disclosures |
||||||||||||||||||||
| Table #1 – Reconciliation of Adjusted EBITDA to Net Loss Attributable to | ||||||||||||||||||||
| Tenet Healthcare Corporation Common Shares | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Net loss attributable to Tenet Healthcare Corporation common shareholders | $ | (61 | ) | $ | (26 | ) | $ | (14 | ) | $ | (58 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interests | (33 | ) | (19 | ) | (62 | ) | (35 | ) | ||||||||||||
| Net loss from discontinued operations, net of tax | (1 | ) | (16 | ) | — | (21 | ) | |||||||||||||
| Income (loss) from continuing operations | (27 | ) | 9 | 48 | (2 | ) | ||||||||||||||
| Income tax benefit (expense) | 27 | (8 | ) | 11 | (7 | ) | ||||||||||||||
| Investment expense | (1 | ) | — | (1 | ) | — | ||||||||||||||
| Interest expense | (217 | ) | (190 | ) | (416 | ) | (372 | ) | ||||||||||||
| Operating income | 164 | 207 | 454 | 377 | ||||||||||||||||
| Litigation and investigation costs | (14 | ) | (12 | ) | (17 | ) | (15 | ) | ||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | (193 | ) | (32 | ) | (222 | ) | (53 | ) | ||||||||||||
| Depreciation and amortization | (197 | ) | (209 | ) | (404 | ) | (402 | ) | ||||||||||||
| Adjusted EBITDA | $ |
568 |
$ |
460 |
$ |
1,097 |
$ |
847 |
||||||||||||
| Net operating revenues | $ |
4,492 |
$ |
4,038 |
$ |
8,916 |
$ |
7,963 |
||||||||||||
| Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA margin) |
12.6 |
% |
11.4 |
% |
12.3 |
% |
10.6 |
% |
||||||||||||
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||
|
Additional Supplemental Non-GAAP disclosures |
||||||||||||||||||||
| Table #2 – Reconciliation of Adjusted Free Cash Flow | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (Dollars in millions) | June 30, | June 30, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Net cash provided by operating activities | $ | 410 | $ | 266 | $ | 353 | $ | 247 | ||||||||||||
| Less: | ||||||||||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (53 | ) | (54 | ) | (86 | ) | (84 | ) | ||||||||||||
| Net cash used in operating activities from discontinued operations | (4 | ) | 2 | (8 | ) | (12 | ) | |||||||||||||
| Adjusted net cash provided by (used in) operating activities – continuing operations | 467 | 318 | 447 | 343 | ||||||||||||||||
| Purchases of property and equipment – continuing operations | (175 | ) | (242 | ) | (359 | ) | (523 | ) | ||||||||||||
| Adjusted free cash flow – continuing operations | $ |
292 |
$ |
76 |
$ |
88 |
$ |
(180 |
) |
|||||||||||
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||
|
Additional Supplemental Non-GAAP disclosures |
||||||||||||||||||||
| Table #3 – Reconciliation of Outlook Adjusted EBITDA to | ||||||||||||||||||||
| Outlook Net Income Attributable to Tenet Healthcare Corporation Common Shareholders | ||||||||||||||||||||
| for the Year Ending December 31, 2015 | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in millions) | Q3 2015 | 2015 | ||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||
| Net income (loss) attributable to Tenet Healthcare Corporation common shareholders | $ | 3 | $ | 50 | $ | (14 | ) | $ | 81 | |||||||||||
| Less: Net (income) attributable to noncontrolling interests | (55 | ) | (65 | ) | (190 | ) | (210 | ) | ||||||||||||
| Loss from discontinued operations, net of tax | (2 | ) | - | (5 | ) | - | ||||||||||||||
| Income from continuing operations | 60 | $ | 115 | $ | 181 | $ | 291 | |||||||||||||
| Income tax expense | (25 | ) | (50 | ) | (40 | ) | (90 | ) | ||||||||||||
| Income from continuing operations, before income taxes | 85 | $ | 165 | $ | 221 | $ | 381 | |||||||||||||
| Interest expense, net | (245 | ) | (235 | ) | (900 | ) | (880 | ) | ||||||||||||
| Operating income | 330 | $ | 400 | $ | 1,121 | $ | 1,261 | |||||||||||||
| Impairment and restructuring charges, acquisition-related costs | ||||||||||||||||||||
| and litigation costs and settlements(a) | - | - | (239 | ) | (239 | ) | ||||||||||||||
| Depreciation and amortization | (220 | ) | (200 | ) | (865 | ) | (825 | ) | ||||||||||||
| Adjusted EBITDA | $ | 550 | $ | 600 | $ | 2,225 | $ | 2,325 | ||||||||||||
| Net operating revenues | $ | 4,650 | $ | 4,850 | $ | 18,100 | $ | 18,500 | ||||||||||||
| Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA margin) | 11.8 | % | 12.4 | % | 12.3 | % | 12.6 | % | ||||||||||||
|
(a) |
Company does not forecast impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements |
|
TENET HEALTHCARE CORPORATION |
||||||||||||||||||||
|
Additional Supplemental Non-GAAP disclosures |
||||||||||||||||||||
| Table #4 – Reconciliation of Outlook Adjusted EBITDA to | ||||||||||||||||||||
| Outlook Normalized Income from Continuing Operations | ||||||||||||||||||||
| for the Year Ending December 31, 2015 | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in millions) | Q3 2015 | 2015 | ||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||
| Adjusted EBITDA | $ | 550 | $ | 600 | $ | 2,225 | $ | 2,325 | ||||||||||||
| Depreciation and amortization | (220 | ) | (200 | ) | (865 | ) | (825 | ) | ||||||||||||
| Interest expense, net | (245 | ) | (235 | ) | (900 | ) | (880 | ) | ||||||||||||
| Income (loss) from continuing operations before income taxes | 85 | $ | 165 | $ | 460 | $ | 620 | |||||||||||||
| Income tax (expense) benefit | (25 | ) | (50 | ) | (135 | ) | (185 | ) | ||||||||||||
| Normalized income (loss) from continuing operations | 60 | $ | 115 | $ | 325 | $ | 435 | |||||||||||||
| Net (income) attributable to noncontrolling interests | (55 | ) | (65 | ) | (190 | ) | (210 | ) | ||||||||||||
| Net income (loss) attributable to common shareholders | $ | 5 | $ | 50 | $ | 135 | $ | 225 | ||||||||||||
| Fully diluted weighted average shares outstanding (in millions) | 102 | 102 | 102 | 102 | ||||||||||||||||
| Normalized fully diluted earnings per share – continuing operations |
$ |
0.05 |
$ |
0.49 |
$ |
1.32 |
$ |
2.21 | ||||||||||||
|
TENET HEALTHCARE CORPORATION |
|||||||
|
Additional Supplemental Non-GAAP disclosures |
|||||||
| Table #5 – Reconciliation of Outlook Adjusted Free Cash Flow | |||||||
| for the Year Ending December 31, 2015 | |||||||
| (Dollars in millions) | 2015 | ||||||
| Low | High | ||||||
| Net cash provided by operating activities | $ | 1,119 | $ | 1,229 | |||
| Less: | |||||||
| Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(a) | (86) | (86) | |||||
| Net cash used in operating activities from discontinued operations | (20) | (10) | |||||
| Adjusted net cash provided by operating activities – continuing operations | $ | 1,225 | $ | 1,325 | |||
| Purchases of property and equipment – continuing operations | (1,000) | (900) | |||||
| Adjusted free cash flow – continuing operations | $ | 225 | $ | 425 | |||
|
(a) |
Company does not forecast impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements |
