Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - TENET HEALTHCARE CORP | a13-6020_18k.htm |
Exhibit 99.1
|
|
Tenet Reports Fourth Quarter Adjusted EBITDA of $336 Million, an Increase of 16.7%
7.3% Growth in Net Operating Revenues
2.9% Increase in Adjusted Admissions
7.5% Growth in Surgeries
DALLAS — February 26, 2013 — Tenet Healthcare Corporation (NYSE:THC) today reported Adjusted EBITDA of $336 million for the fourth quarter ended December 31, 2012, an increase of $48 million, or 16.7 percent, as compared to Adjusted EBITDA of $288 million in the fourth quarter of 2011. Net income attributable to common shareholders in the quarter was $49 million, or $0.45 per share, compared to a loss of $76 million, or $0.70 per share, in the fourth quarter of 2011, which included an after-tax loss of $74 million due to the early extinguishment of debt, or $0.68 per share. Adjusted EBITDA for the year ended December 31, 2012 was $1.203 billion, an increase of $77 million, or 6.8 percent, as compared to Adjusted EBITDA of $1.126 billion in the year ended December 31, 2011.
“The fourth quarter provided a strong finish to 2012, which became our ninth consecutive year of consistent earnings growth, with compound annual EBITDA growth of 15 percent,” said Trevor Fetter, president and chief executive officer. “Strong revenue growth and disciplined cost control were once again hallmarks of our financial performance. Net revenues grew by 7.3 percent reflecting strong volume increases and continued pricing strength. Our volume growth was one of the strongest in the investor-owned healthcare provider sector, and we recorded our ninth consecutive quarter of positive growth in adjusted admissions. Volume growth included another strong quarter of growth in outpatient surgeries which increased by 13.9 percent. Cost control was excellent with hospital operations restraining expense growth to just 1.9 percent per adjusted admission, and Conifer Health Solutions, Tenet’s services business, reported another solid quarter contributing $31 million of Adjusted EBITDA.”
Discussion of Results (Percentage changes compare Q4’12 to Q4’11, unless otherwise noted.)
Adjusted admissions increased 2.9 percent in the fourth quarter led by strong growth in outpatient visits of 7.3 percent. Approximately 80 percent of the outpatient visit growth was organic. Total admissions were flat. Total emergency department visits increased 8.6 percent and emergency department admissions increased 1.7 percent. The sum of uninsured and charity admissions increased 1.1 percent.
Bad debt expense as a percent of revenues was 7.9 percent, an increase of 20 basis points compared to 7.7 percent in the fourth quarter of 2011. The increase in bad debt expense was largely the result of the increase in uninsured patient volumes. Our self-pay collection rate was 28.9 percent in the fourth quarter of 2012, a 120 basis point improvement compared to 27.7 percent in the fourth quarter of 2011.
Net operating revenues were $2.331 billion, an increase of $159 million, or 7.3 percent, compared to net operating revenues of $2.172 billion in the fourth quarter of 2011. Commercial managed care revenue increased 5.2 percent, which reflected a 7.1 percent and 7.6 percent increase in commercial managed care revenue per patient day and per outpatient visit, respectively.
Total net patient revenue per adjusted admission was $11,866, an increase of 2.8 percent. This pricing increase primarily reflects improved terms in our contracts with commercial managed care payers, as well as higher Medicare reimbursement rates that became effective on October 1, partially offset by a softer payer mix.
Selected operating expenses of our hospital operations, defined as the sum of salaries, wages and benefits, supplies and other operating expenses excluding the Company’s Conifer services business, increased by only 1.9 percent on a per adjusted admission basis. This cost metric excludes Conifer since Conifer does not generate incremental volumes, which impacts the relationship of this aggregate cost metric to patient volumes. Supplies expense per adjusted admission declined 1.1 percent. Electronic health record incentives were $27 million in the
fourth quarter of 2012 compared to $5 million in the fourth quarter of 2011 and are not a part of the definition of selected operating expenses.
Cash and cash equivalents were $364 million at December 31, 2012 compared to $83 million at September 30, 2012. The Company had no outstanding balance on its bank line at December 31, 2012. Accounts receivable days improved by two days to 53 days down from 55 days at September 30, 2012. Approximately $57 million of aggregate revenues related to the California Provider Fee program and the Texas uncompensated care 1115 waiver program were recognized in Adjusted EBITDA in 2012, but were not yet received by year end.
Outlook for Adjusted EBITDA in First Quarter and Full Year 2013
The Company confirms its previously announced Outlook for 2013 Adjusted EBITDA of $1.325 billion to $1.425 billion. The $1.375 billion mid-point of this Outlook range is slightly above the current consensus estimate. For the first quarter of 2013, the Outlook range for Adjusted EBITDA is $250 million to $290 million. This first quarter Outlook excludes any contribution related to the managed care portion of the 30 month California Provider Fee program, which is now expected to contribute $53 million to Adjusted EBITDA in our quarter ending June 30, 2013.
Management’s Webcast Discussion of Fourth Quarter Results
Tenet management will discuss the Company’s fourth quarter 2012 results on a 10:00 AM (ET) webcast on February 26, 2013. This webcast may be accessed through Tenet’s website at www.tenethealth.com/investors.
Additional information regarding Tenet’s quarterly results of operations, including detailed tabular operational data, is contained in its Form 10-K report, which will be filed with the Securities and Exchange Commission and posted on the Tenet investor relations website before the webcast. This press release includes certain non-GAAP measures, such as Adjusted EBITDA. A reconciliation of non-GAAP measures included in this release is included in the financial tables at the end of this release.
Tenet Healthcare Corporation, a leading health care services company, through its subsidiaries operates 49 hospitals, 117 outpatient centers and Conifer Health Solutions, a leader in business process solutions for health care providers that serves over 600 hospital and other clients nationwide. Tenet’s hospitals and related health care facilities are committed to providing high quality care to patients in the communities they serve. For more information, please visit www.tenethealth.com.
|
Media: Rick Black (469) 893-2647 |
|
Investors: Thomas Rice (469) 893-2522 |
|
Rick.Black@tenethealth.com |
|
Thomas.Rice@tenethealth.com |
# # #
This document contains “forward-looking statements” — that is, statements relating 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,” “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 the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended Dec. 31, 2012, our quarterly reports on Form 10-Q, periodic reports on Form 8-K and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements contained in this press release as a result of new information or future events or developments.
Tenet uses its company web site 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)
|
|
|
Three Months Ended December 31, |
| ||||||||||
|
(Dollars in millions except per share amounts) |
|
2012 |
|
% |
|
2011 |
|
% |
|
Change |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Net operating revenues before provision for doubtful accounts |
|
$ |
2,531 |
|
|
|
$ |
2,353 |
|
|
|
7.6 |
% |
|
Less: Provision for doubtful accounts |
|
200 |
|
|
|
181 |
|
|
|
10.5 |
% | ||
|
Net operating revenues |
|
2,331 |
|
100.0 |
% |
2,172 |
|
100.0 |
% |
7.3 |
% | ||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Salaries, wages and benefits |
|
1,091 |
|
46.8 |
% |
1,014 |
|
46.7 |
% |
7.6 |
% | ||
|
Supplies |
|
388 |
|
16.6 |
% |
381 |
|
17.5 |
% |
1.8 |
% | ||
|
Other operating expenses, net |
|
543 |
|
23.3 |
% |
494 |
|
22.8 |
% |
9.9 |
% | ||
|
Electronic health record incentives |
|
(27 |
) |
(1.2 |
)% |
(5 |
) |
(0.2 |
)% |
440.0 |
% | ||
|
Depreciation and amortization |
|
116 |
|
5.0 |
% |
100 |
|
4.6 |
% |
16.0 |
% | ||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
7 |
|
0.3 |
% |
2 |
|
0.1 |
% |
|
| ||
|
Litigation and investigation costs |
|
2 |
|
0.1 |
% |
31 |
|
1.4 |
% |
|
| ||
|
Operating income |
|
211 |
|
9.1 |
% |
155 |
|
7.1 |
% |
|
| ||
|
Interest expense |
|
(109 |
) |
|
|
(100 |
) |
|
|
|
| ||
|
Loss from early extinguishment of debt |
|
(4 |
) |
|
|
(117 |
) |
|
|
|
| ||
|
Investment earnings (loss) |
|
(1 |
) |
|
|
— |
|
|
|
|
| ||
|
Income (loss) from continuing operations, before income taxes |
|
97 |
|
|
|
(62 |
) |
|
|
|
| ||
|
Income tax benefit (expense) |
|
(35 |
) |
|
|
12 |
|
|
|
|
| ||
|
Income (loss) from continuing operations, before discontinued operations |
|
62 |
|
|
|
(50 |
) |
|
|
|
| ||
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Loss from operations |
|
(9 |
) |
|
|
(1 |
) |
|
|
|
| ||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
— |
|
|
|
(6 |
) |
|
|
|
| ||
|
Litigation settlements, and investigation costs |
|
— |
|
|
|
(17 |
) |
|
|
|
| ||
|
Income tax benefit |
|
1 |
|
|
|
8 |
|
|
|
|
| ||
|
Loss from discontinued operations |
|
(8 |
) |
|
|
(16 |
) |
|
|
|
| ||
|
Net income (loss) |
|
54 |
|
|
|
(66 |
) |
|
|
|
| ||
|
Less: Preferred stock dividends |
|
— |
|
|
|
6 |
|
|
|
|
| ||
|
Less: Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
5 |
|
|
|
3 |
|
|
|
|
| ||
|
Discontinued operations |
|
— |
|
|
|
1 |
|
|
|
|
| ||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
49 |
|
|
|
$ |
(76 |
) |
|
|
|
|
|
Amounts attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| ||
|
Income (loss) from continuing operations, net of tax |
|
$ |
57 |
|
|
|
$ |
(60 |
) |
|
|
|
|
|
Loss from discontinued operations, net of tax |
|
(8 |
) |
|
|
(16 |
) |
|
|
|
| ||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
49 |
|
|
|
$ |
(76 |
) |
|
|
|
|
|
Earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| ||
|
Basic |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
$ |
0.54 |
|
|
|
$ |
(0.55 |
) |
|
|
|
|
|
Discontinued operations |
|
(0.08 |
) |
|
|
(0.15 |
) |
|
|
|
| ||
|
|
|
$ |
0.46 |
|
|
|
$ |
(0.70 |
) |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
$ |
0.52 |
|
|
|
$ |
(0.55 |
) |
|
|
|
|
|
Discontinued operations |
|
(0.07 |
) |
|
|
(0.15 |
) |
|
|
|
| ||
|
|
|
$ |
0.45 |
|
|
|
$ |
(0.70 |
) |
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
| ||
|
Basic |
|
105,961 |
|
|
|
108,114 |
|
|
|
|
| ||
|
Diluted |
|
108,960 |
|
|
|
108,114 |
|
|
|
|
| ||
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Year Ended December 31, |
| ||||||||||
|
(Dollars in millions except per share amounts) |
|
2012 |
|
% |
|
2011 |
|
% |
|
Change |
| ||
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Net operating revenues before provision for doubtful accounts |
|
$ |
9,904 |
|
|
|
$ |
9,371 |
|
|
|
5.7 |
% |
|
Less: Provision for doubtful accounts |
|
785 |
|
|
|
717 |
|
|
|
9.5 |
% | ||
|
Net operating revenues |
|
9,119 |
|
100.0 |
% |
8,654 |
|
100.0 |
% |
5.4 |
% | ||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Salaries, wages and benefits |
|
4,257 |
|
46.7 |
% |
4,015 |
|
46.4 |
% |
6.0 |
% | ||
|
Supplies |
|
1,552 |
|
17.0 |
% |
1,548 |
|
17.9 |
% |
0.3 |
% | ||
|
Other operating expenses, net |
|
2,147 |
|
23.5 |
% |
2,020 |
|
23.4 |
% |
6.3 |
% | ||
|
Electronic health record incentives |
|
(40 |
) |
(0.4 |
)% |
(55 |
) |
(0.6 |
)% |
(27.3 |
)% | ||
|
Depreciation and amortization |
|
430 |
|
4.7 |
% |
398 |
|
4.6 |
% |
8.0 |
% | ||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
19 |
|
0.2 |
% |
20 |
|
0.2 |
% |
|
| ||
|
Litigation and investigation costs |
|
5 |
|
0.1 |
% |
55 |
|
0.6 |
% |
|
| ||
|
Operating income |
|
749 |
|
8.2 |
% |
653 |
|
7.5 |
% |
|
| ||
|
Interest expense |
|
(412 |
) |
|
|
(375 |
) |
|
|
|
| ||
|
Loss from early extinguishment of debt |
|
(4 |
) |
|
|
(117 |
) |
|
|
|
| ||
|
Investment earnings |
|
1 |
|
|
|
3 |
|
|
|
|
| ||
|
Income from continuing operations, before income taxes |
|
334 |
|
|
|
164 |
|
|
|
|
| ||
|
Income tax expense |
|
(125 |
) |
|
|
(61 |
) |
|
|
|
| ||
|
Income from continuing operations, before discontinued operations |
|
209 |
|
|
|
103 |
|
|
|
|
| ||
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
| ||
|
Loss from operations |
|
(2 |
) |
|
|
(18 |
) |
|
|
|
| ||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
(100 |
) |
|
|
(6 |
) |
|
|
|
| ||
|
Litigation and investigation costs |
|
— |
|
|
|
(17 |
) |
|
|
|
| ||
|
Net gains on sales of facilities |
|
1 |
|
|
|
— |
|
|
|
|
| ||
|
Income tax benefit |
|
25 |
|
|
|
32 |
|
|
|
|
| ||
|
Loss from discontinued operations |
|
(76 |
) |
|
|
(9 |
) |
|
|
|
| ||
|
Net income |
|
133 |
|
|
|
94 |
|
|
|
|
| ||
|
Less: Preferred stock dividends |
|
11 |
|
|
|
24 |
|
|
|
|
| ||
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
13 |
|
|
|
11 |
|
|
|
|
| ||
|
Discontinued operations |
|
(32 |
) |
|
|
1 |
|
|
|
|
| ||
|
Net income attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
141 |
|
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Amounts attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| ||
|
Income from continuing operations, net of tax |
|
$ |
185 |
|
|
|
$ |
68 |
|
|
|
|
|
|
Loss from discontinued operations, net of tax |
|
(44 |
) |
|
|
(10 |
) |
|
|
|
| ||
|
Net income attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
141 |
|
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| ||
|
Basic |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
$ |
1.77 |
|
|
|
$ |
0.58 |
|
|
|
|
|
|
Discontinued operations |
|
(0.42 |
) |
|
|
(0.09 |
) |
|
|
|
| ||
|
|
|
$ |
1.35 |
|
|
|
$ |
0.49 |
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
| ||
|
Continuing operations |
|
$ |
1.70 |
|
|
|
$ |
0.56 |
|
|
|
|
|
|
Discontinued operations |
|
(0.40 |
) |
|
|
(0.08 |
) |
|
|
|
| ||
|
|
|
$ |
1.30 |
|
|
|
$ |
0.48 |
|
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
| ||
|
Basic |
|
104,200 |
|
|
|
117,182 |
|
|
|
|
| ||
|
Diluted |
|
108,926 |
|
|
|
121,295 |
|
|
|
|
| ||
TENET HEALTHCARE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
December 31, |
|
December 31, |
| ||
|
(Dollars in millions) |
|
2012 |
|
2011 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
364 |
|
$ |
113 |
|
|
Accounts receivable, less allowance for doubtful accounts |
|
1,345 |
|
1,278 |
| ||
|
Inventories of supplies, at cost |
|
153 |
|
161 |
| ||
|
Income tax receivable |
|
7 |
|
7 |
| ||
|
Current portion of deferred income taxes |
|
354 |
|
418 |
| ||
|
Assets held for sale |
|
— |
|
2 |
| ||
|
Other current assets |
|
458 |
|
378 |
| ||
|
Total current assets |
|
2,681 |
|
2,357 |
| ||
|
Investments and other assets |
|
162 |
|
156 |
| ||
|
Deferred income taxes, net of current portion |
|
342 |
|
374 |
| ||
|
Property and equipment, at cost, less accumulated depreciation and amortization |
|
4,293 |
|
4,350 |
| ||
|
Goodwill |
|
916 |
|
736 |
| ||
|
Other intangible assets, at cost, less accumulated amortization |
|
650 |
|
489 |
| ||
|
Total assets |
|
$ |
9,044 |
|
$ |
8,462 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current portion of long-term debt |
|
$ |
94 |
|
$ |
66 |
|
|
Accounts payable |
|
722 |
|
760 |
| ||
|
Accrued compensation and benefits |
|
415 |
|
376 |
| ||
|
Professional and general liability reserves |
|
64 |
|
75 |
| ||
|
Accrued interest payable |
|
125 |
|
112 |
| ||
|
Accrued legal settlement costs |
|
8 |
|
64 |
| ||
|
Other current liabilities |
|
335 |
|
362 |
| ||
|
Total current liabilities |
|
1,763 |
|
1,815 |
| ||
|
Long-term debt, net of current portion |
|
5,158 |
|
4,294 |
| ||
|
Professional and general liability reserves |
|
292 |
|
337 |
| ||
|
Accrued legal settlement costs |
|
2 |
|
2 |
| ||
|
Other long-term liabilities |
|
595 |
|
506 |
| ||
|
Total liabilities |
|
7,810 |
|
6,954 |
| ||
|
Commitments and contingencies |
|
|
|
|
| ||
|
Redeemable noncontrolling interests in equity of consolidated subsidiaries |
|
16 |
|
16 |
| ||
|
Equity: |
|
|
|
|
| ||
|
Shareholders’ equity: |
|
|
|
|
| ||
|
Preferred stock |
|
— |
|
334 |
| ||
|
Common stock |
|
7 |
|
7 |
| ||
|
Additional paid-in capital |
|
4,471 |
|
4,427 |
| ||
|
Accumulated other comprehensive loss |
|
(68 |
) |
(52 |
) | ||
|
Accumulated deficit |
|
(1,288 |
) |
(1,440 |
) | ||
|
Common stock in treasury, at cost |
|
(1,979 |
) |
(1,853 |
) | ||
|
Total shareholders’ equity |
|
1,143 |
|
1,423 |
| ||
|
Noncontrolling interests |
|
75 |
|
69 |
| ||
|
Total equity |
|
1,218 |
|
1,492 |
| ||
|
Total liabilities and equity |
|
$ |
9,044 |
|
$ |
8,462 |
|
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Year Ended |
| ||||
|
(Dollars in millions) |
|
2012 |
|
2011 |
| ||
|
Net income |
|
$ |
133 |
|
$ |
94 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
430 |
|
398 |
| ||
|
Provision for doubtful accounts |
|
785 |
|
717 |
| ||
|
Deferred income tax expense |
|
92 |
|
81 |
| ||
|
Stock-based compensation expense |
|
32 |
|
24 |
| ||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
19 |
|
20 |
| ||
|
Litigation and investigation costs |
|
5 |
|
55 |
| ||
|
Loss from early extinguishment of debt |
|
4 |
|
117 |
| ||
|
Amortization of debt discount and debt issuance costs |
|
22 |
|
30 |
| ||
|
Pre-tax loss from discontinued operations |
|
101 |
|
41 |
| ||
|
Other items, net |
|
(12 |
) |
(13 |
) | ||
|
Changes in cash from changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
(868 |
) |
(850 |
) | ||
|
Inventories and other current assets |
|
(59 |
) |
(35 |
) | ||
|
Income taxes |
|
(5 |
) |
(63 |
) | ||
|
Accounts payable, accrued expenses and other current liabilities |
|
9 |
|
(32 |
) | ||
|
Other long-term liabilities |
|
3 |
|
(5 |
) | ||
|
Payments against reserves for restructuring charges and litigation costs and settlements |
|
(63 |
) |
(44 |
) | ||
|
Net cash used in operating activities from discontinued operations, excluding income taxes |
|
(35 |
) |
(38 |
) | ||
|
Net cash provided by operating activities |
|
593 |
|
497 |
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Purchases of property and equipment—continuing operations |
|
(506 |
) |
(467 |
) | ||
|
Purchases of property and equipment—discontinued operations |
|
(2 |
) |
(8 |
) | ||
|
Purchases of businesses or joint venture interests |
|
(211 |
) |
(84 |
) | ||
|
Proceeds from sales of facilities and other assets — discontinued operations |
|
45 |
|
— |
| ||
|
Proceeds from sales of marketable securities, long-term investments and other assets |
|
17 |
|
59 |
| ||
|
Other items, net |
|
(5 |
) |
(3 |
) | ||
|
Net cash used in investing activities |
|
(662 |
) |
(503 |
) | ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Repayments of borrowings under credit facility |
|
(1,773 |
) |
(365 |
) | ||
|
Proceeds from borrowings under credit facility |
|
1,693 |
|
445 |
| ||
|
Repayments of other borrowings |
|
(248 |
) |
(843 |
) | ||
|
Proceeds from other borrowings |
|
1,092 |
|
900 |
| ||
|
Repurchases of preferred stock |
|
(292 |
) |
— |
| ||
|
Deferred debt issuance costs |
|
(17 |
) |
(21 |
) | ||
|
Repurchases of common stock |
|
(126 |
) |
(374 |
) | ||
|
Cash dividends on preferred stock |
|
(14 |
) |
(24 |
) | ||
|
Distributions paid to noncontrolling interests |
|
(15 |
) |
(10 |
) | ||
|
Other items, net |
|
20 |
|
6 |
| ||
|
Net cash provided by (used in) financing activities |
|
320 |
|
(286 |
) | ||
|
Net increase (decrease) in cash and cash equivalents |
|
251 |
|
(292 |
) | ||
|
Cash and cash equivalents at beginning of period |
|
113 |
|
405 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
364 |
|
$ |
113 |
|
|
Supplemental disclosures: |
|
|
|
|
| ||
|
Interest paid, net of capitalized interest |
|
$ |
(376 |
) |
$ |
(347 |
) |
|
Proceeds from interest rate swap agreement |
|
$ |
— |
|
$ |
30 |
|
|
Income tax payments, net |
|
$ |
(13 |
) |
$ |
(10 |
) |
TENET HEALTHCARE CORPORATION
SELECTED STATISTICS – CONTINUING HOSPITALS
(Unaudited)
|
(Dollars in millions except per patient day, per |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| ||||||||||||
|
admission and per visit amounts) |
|
2012 |
|
2011 |
|
Change |
|
2012 |
|
2011 |
|
Change |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net inpatient revenues |
|
$ |
1,544 |
|
$ |
1,499 |
|
3.0 |
% |
$ |
6,200 |
|
$ |
6,028 |
|
2.9 |
% |
|
Net outpatient revenues |
|
$ |
821 |
|
$ |
736 |
|
11.5 |
% |
$ |
3,167 |
|
$ |
2,928 |
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Number of acute care hospitals (at end of period) |
|
49 |
|
49 |
|
— |
* |
49 |
|
49 |
|
— |
* | ||||
|
Licensed beds (at end of period) |
|
13,216 |
|
13,119 |
|
0.7 |
% |
13,216 |
|
13,119 |
|
0.7 |
% | ||||
|
Average licensed beds |
|
13,216 |
|
13,119 |
|
0.7 |
% |
13,187 |
|
13,115 |
|
0.5 |
% | ||||
|
Utilization of licensed beds |
|
47.7 |
% |
48.9 |
% |
(1.2 |
)%* |
49.1 |
% |
50.4 |
% |
(1.3 |
)%* | ||||
|
Patient days |
|
580,426 |
|
589,848 |
|
(1.6 |
)% |
2,368,916 |
|
2,413,245 |
|
(1.8 |
)% | ||||
|
Adjusted patient days |
|
915,584 |
|
902,762 |
|
1.4 |
% |
3,693,828 |
|
3,673,447 |
|
0.6 |
% | ||||
|
Net inpatient revenue per patient day |
|
$ |
2,660 |
|
$ |
2,541 |
|
4.7 |
% |
$ |
2,617 |
|
$ |
2,498 |
|
4.8 |
% |
|
Total admissions |
|
125,290 |
|
125,347 |
|
— |
% |
506,485 |
|
507,834 |
|
(0.3 |
)% | ||||
|
Adjusted patient admissions |
|
199,304 |
|
193,631 |
|
2.9 |
% |
796,874 |
|
780,026 |
|
2.2 |
% | ||||
|
Net inpatient revenue per admission |
|
$ |
12,323 |
|
$ |
11,959 |
|
3.0 |
% |
$ |
12,241 |
|
$ |
11,870 |
|
3.1 |
% |
|
Average length of stay (days) |
|
4.63 |
|
4.71 |
|
(1.7 |
)% |
4.68 |
|
4.75 |
|
(1.5 |
)% | ||||
|
Total surgeries |
|
98,045 |
|
91,200 |
|
7.5 |
% |
380,955 |
|
362,286 |
|
5.2 |
% | ||||
|
Outpatient visits |
|
1,053,499 |
|
982,083 |
|
7.3 |
% |
4,167,114 |
|
3,954,016 |
|
5.4 |
% | ||||
|
Net outpatient revenue per visit |
|
$ |
779 |
|
$ |
749 |
|
4.0 |
% |
$ |
760 |
|
$ |
741 |
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Sources of net patient revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Medicare |
|
22.4 |
% |
23.1 |
% |
(0.7 |
)%* |
23.4 |
% |
23.1 |
% |
0.3 |
%* | ||||
|
Medicaid |
|
8.3 |
% |
8.6 |
% |
(0.3 |
)%* |
8.4 |
% |
9.0 |
% |
(0.6 |
)%* | ||||
|
Managed care |
|
58.3 |
% |
58.1 |
% |
0.2 |
%* |
57.4 |
% |
57.2 |
% |
0.2 |
%* | ||||
|
Indemnity, self-pay and other |
|
11.0 |
% |
10.2 |
% |
0.8 |
%* |
10.8 |
% |
10.7 |
% |
0.1 |
%* | ||||
* This change is the difference between the 2012 and 2011 amounts shown
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal 2012 by Calendar Quarter
(Unaudited)
|
|
|
Three Months Ended |
|
Year |
| |||||||||||
|
(Dollars in millions except per share amounts) |
|
03/31/12 |
|
06/30/12 |
|
09/30/12 |
|
12/31/12 |
|
12/31/12 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net operating revenues before provision for doubtful accounts |
|
$ |
2,491 |
|
$ |
2,455 |
|
$ |
2,427 |
|
$ |
2,531 |
|
$ |
9,904 |
|
|
Less: Provision for doubtful accounts |
|
189 |
|
190 |
|
206 |
|
200 |
|
785 |
| |||||
|
Net operating revenues |
|
2,302 |
|
2,265 |
|
2,221 |
|
2,331 |
|
9,119 |
| |||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries, wages and benefits |
|
1,062 |
|
1,054 |
|
1,050 |
|
1,091 |
|
4,257 |
| |||||
|
Supplies |
|
399 |
|
389 |
|
376 |
|
388 |
|
1,552 |
| |||||
|
Other operating expenses, net |
|
531 |
|
534 |
|
539 |
|
543 |
|
2,147 |
| |||||
|
Electronic health record incentives |
|
— |
|
— |
|
(13 |
) |
(27 |
) |
(40 |
) | |||||
|
Depreciation and amortization |
|
100 |
|
104 |
|
110 |
|
116 |
|
430 |
| |||||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
3 |
|
3 |
|
6 |
|
7 |
|
19 |
| |||||
|
Litigation and investigation costs |
|
2 |
|
1 |
|
— |
|
2 |
|
5 |
| |||||
|
Operating income |
|
205 |
|
180 |
|
153 |
|
211 |
|
749 |
| |||||
|
Interest expense |
|
(98 |
) |
(102 |
) |
(103 |
) |
(109 |
) |
(412 |
) | |||||
|
Loss from early extinguishment of debt |
|
— |
|
— |
|
— |
|
(4 |
) |
(4 |
) | |||||
|
Investment earnings |
|
1 |
|
— |
|
1 |
|
(1 |
) |
1 |
| |||||
|
Income from continuing operations, before income taxes |
|
108 |
|
78 |
|
51 |
|
97 |
|
334 |
| |||||
|
Income tax expense |
|
(42 |
) |
(30 |
) |
(18 |
) |
(35 |
) |
(125 |
) | |||||
|
Income from continuing operations, before discontinued operations |
|
66 |
|
48 |
|
33 |
|
62 |
|
209 |
| |||||
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from operations |
|
2 |
|
1 |
|
4 |
|
(9 |
) |
(2 |
) | |||||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
— |
|
(100 |
) |
— |
|
— |
|
(100 |
) | |||||
|
Net gains (losses) on sales of facilities |
|
— |
|
2 |
|
(1 |
) |
— |
|
1 |
| |||||
|
Income tax benefit (expense) |
|
(1 |
) |
29 |
|
(4 |
) |
1 |
|
25 |
| |||||
|
Income (loss) from discontinued operations |
|
1 |
|
(68 |
) |
(1 |
) |
(8 |
) |
(76 |
) | |||||
|
Net income (loss) |
|
67 |
|
(20 |
) |
32 |
|
54 |
|
133 |
| |||||
|
Less: Preferred stock dividends |
|
6 |
|
4 |
|
1 |
|
— |
|
11 |
| |||||
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
3 |
|
2 |
|
3 |
|
5 |
|
13 |
| |||||
|
Discontinued operations |
|
— |
|
(20 |
) |
(12 |
) |
— |
|
(32 |
) | |||||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
58 |
|
$ |
(6 |
) |
$ |
40 |
|
$ |
49 |
|
$ |
141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Amounts attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from continuing operations, net of tax |
|
$ |
57 |
|
$ |
42 |
|
$ |
30 |
|
$ |
57 |
|
$ |
185 |
|
|
Income (loss) from discontinued operations, net of tax |
|
1 |
|
(48 |
) |
10 |
|
(8 |
) |
(44 |
) | |||||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
58 |
|
$ |
(6 |
) |
$ |
40 |
|
$ |
49 |
|
$ |
141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
$ |
0.55 |
|
$ |
0.40 |
|
$ |
0.29 |
|
$ |
0.54 |
|
$ |
1.77 |
|
|
Discontinued operations |
|
0.01 |
|
(0.46 |
) |
0.09 |
|
(0.08 |
) |
(0.42 |
) | |||||
|
|
|
$ |
0.56 |
|
$ |
(0.06 |
) |
$ |
0.38 |
|
$ |
0.46 |
|
$ |
1.35 |
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
$ |
0.52 |
|
$ |
0.39 |
|
$ |
0.28 |
|
$ |
0.52 |
|
$ |
1.70 |
|
|
Discontinued operations |
|
0.01 |
|
(0.45 |
) |
0.09 |
|
(0.07 |
) |
(0.40 |
) | |||||
|
|
|
$ |
0.53 |
|
$ |
(0.06 |
) |
$ |
0.37 |
|
$ |
0.45 |
|
$ |
1.30 |
|
|
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
102,843 |
|
103,753 |
|
104,244 |
|
105,961 |
|
104,200 |
| |||||
|
Diluted |
|
121,218 |
|
106,927 |
|
107,311 |
|
108,960 |
|
108,926 |
| |||||
TENET HEALTHCARE CORPORATION
SELECTED STATISTICS — CONTINUING HOSPITALS
(Unaudited)
|
(Dollars in millions except per patient day, per |
|
Three Months Ended |
|
Year |
| |||||||||||
|
admission and per visit amounts) |
|
03/31/12 |
|
06/30/12 |
|
09/30/12 |
|
12/31/12 |
|
12/31/12 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net inpatient revenues |
|
$ |
1,607 |
|
$ |
1,548 |
|
$ |
1,501 |
|
$ |
1,544 |
|
$ |
6,200 |
|
|
Net outpatient revenues |
|
$ |
766 |
|
$ |
791 |
|
$ |
789 |
|
$ |
821 |
|
$ |
3,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Number of acute care hospitals (at end of period) |
|
49 |
|
49 |
|
49 |
|
49 |
|
49 |
| |||||
|
Licensed beds (at end of period) |
|
13,175 |
|
13,176 |
|
13,216 |
|
13,216 |
|
13,216 |
| |||||
|
Average licensed beds |
|
13,138 |
|
13,176 |
|
13,216 |
|
13,216 |
|
13,187 |
| |||||
|
Utilization of licensed beds |
|
51.6 |
% |
49.2 |
% |
47.8 |
% |
47.7 |
% |
49.1 |
% | |||||
|
Patient days |
|
617,459 |
|
590,437 |
|
580,594 |
|
580,426 |
|
2,368,916 |
| |||||
|
Adjusted patient days |
|
947,116 |
|
919,895 |
|
911,233 |
|
915,584 |
|
3,693,828 |
| |||||
|
Net inpatient revenue per patient day |
|
$ |
2,603 |
|
$ |
2,622 |
|
$ |
2,585 |
|
$ |
2,660 |
|
$ |
2,617 |
|
|
Total admissions |
|
131,190 |
|
125,136 |
|
124,869 |
|
125,290 |
|
506,485 |
| |||||
|
Adjusted patient admissions |
|
202,860 |
|
196,932 |
|
197,778 |
|
199,304 |
|
796,874 |
| |||||
|
Net inpatient revenue per admission |
|
$ |
12,249 |
|
$ |
12,371 |
|
$ |
12,021 |
|
$ |
12,323 |
|
$ |
12,241 |
|
|
Average length of stay (days) |
|
4.71 |
|
4.72 |
|
4.65 |
|
4.63 |
|
4.68 |
| |||||
|
Total surgeries |
|
93,228 |
|
95,422 |
|
94,260 |
|
98,045 |
|
380,955 |
| |||||
|
Outpatient visits |
|
1,031,611 |
|
1,046,768 |
|
1,035,236 |
|
1,053,499 |
|
4,167,114 |
| |||||
|
Net outpatient revenue per visit |
|
$ |
743 |
|
$ |
756 |
|
$ |
762 |
|
$ |
779 |
|
$ |
760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Sources of net patient revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Medicare |
|
26.5 |
% |
22.7 |
% |
22.1 |
% |
22.4 |
% |
23.4 |
% | |||||
|
Medicaid |
|
7.5 |
% |
10.0 |
% |
7.7 |
% |
8.3 |
% |
8.4 |
% | |||||
|
Managed care |
|
55.9 |
% |
56.8 |
% |
58.9 |
% |
58.3 |
% |
57.4 |
% | |||||
|
Indemnity, self-pay and other |
|
10.1 |
% |
10.5 |
% |
11.3 |
% |
11.0 |
% |
10.8 |
% | |||||
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal 2011 by Calendar Quarter
(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
| |||||||||||
|
(Dollars in millions except per share amounts) |
|
03/31/11 |
|
06/30/11 |
|
09/30/11 |
|
12/31/11 |
|
12/31/11 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net operating revenues before provision for doubtful accounts |
|
$ |
2,429 |
|
$ |
2,300 |
|
$ |
2,289 |
|
$ |
2,353 |
|
$ |
9,371 |
|
|
Less: Provision for doubtful accounts |
|
179 |
|
168 |
|
189 |
|
181 |
|
717 |
| |||||
|
Net operating revenues |
|
2,250 |
|
2,132 |
|
2,100 |
|
2,172 |
|
8,654 |
| |||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries, wages and benefits |
|
1,017 |
|
982 |
|
1,002 |
|
1,014 |
|
4,015 |
| |||||
|
Supplies |
|
396 |
|
392 |
|
379 |
|
381 |
|
1,548 |
| |||||
|
Other operating expenses, net |
|
491 |
|
508 |
|
527 |
|
494 |
|
2,020 |
| |||||
|
Electronic health record incentives |
|
(25 |
) |
(25 |
) |
— |
|
(5 |
) |
(55 |
) | |||||
|
Depreciation and amortization |
|
98 |
|
100 |
|
100 |
|
100 |
|
398 |
| |||||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
8 |
|
2 |
|
8 |
|
2 |
|
20 |
| |||||
|
Litigation and investigation costs |
|
11 |
|
8 |
|
5 |
|
31 |
|
55 |
| |||||
|
Operating income |
|
254 |
|
165 |
|
79 |
|
155 |
|
653 |
| |||||
|
Interest expense |
|
(118 |
) |
(98 |
) |
(59 |
) |
(100 |
) |
(375 |
) | |||||
|
Loss from early extinguishment of debt |
|
— |
|
— |
|
— |
|
(117 |
) |
(117 |
) | |||||
|
Investment earnings |
|
1 |
|
1 |
|
1 |
|
— |
|
3 |
| |||||
|
Income (loss) from continuing operations, before income taxes |
|
137 |
|
68 |
|
21 |
|
(62 |
) |
164 |
| |||||
|
Income tax benefit (expense) |
|
(50 |
) |
(19 |
) |
(4 |
) |
12 |
|
(61 |
) | |||||
|
Income (loss) from continuing operations, before discontinued operations |
|
87 |
|
49 |
|
17 |
|
(50 |
) |
103 |
| |||||
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss from operations |
|
(10 |
) |
(5 |
) |
(2 |
) |
(1 |
) |
(18 |
) | |||||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
— |
|
— |
|
— |
|
(6 |
) |
(6 |
) | |||||
|
Litigation settlements, and investigation costs |
|
— |
|
— |
|
— |
|
(17 |
) |
(17 |
) | |||||
|
Income tax benefit |
|
5 |
|
19 |
|
— |
|
8 |
|
32 |
| |||||
|
Income (loss) from discontinued operations |
|
(5 |
) |
14 |
|
(2 |
) |
(16 |
) |
(9 |
) | |||||
|
Net income (loss) |
|
82 |
|
63 |
|
15 |
|
(66 |
) |
94 |
| |||||
|
Less: Preferred stock dividends |
|
6 |
|
6 |
|
6 |
|
6 |
|
24 |
| |||||
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
2 |
|
3 |
|
3 |
|
3 |
|
11 |
| |||||
|
Discontinued operations |
|
1 |
|
(1 |
) |
— |
|
1 |
|
1 |
| |||||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
73 |
|
$ |
55 |
|
$ |
6 |
|
$ |
(76 |
) |
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Amounts attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income (loss) from continuing operations, net of tax |
|
$ |
80 |
|
$ |
40 |
|
$ |
8 |
|
$ |
(60 |
) |
$ |
68 |
|
|
Income (loss) from discontinued operations, net of tax |
|
(7 |
) |
15 |
|
(2 |
) |
(16 |
) |
(10 |
) | |||||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
73 |
|
$ |
55 |
|
$ |
6 |
|
$ |
(76 |
) |
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
$ |
0.66 |
|
$ |
0.33 |
|
$ |
0.07 |
|
$ |
(0.55 |
) |
$ |
0.58 |
|
|
Discontinued operations |
|
(0.06 |
) |
0.12 |
|
(0.02 |
) |
(0.15 |
) |
(0.09 |
) | |||||
|
|
|
$ |
0.60 |
|
$ |
0.45 |
|
$ |
0.05 |
|
$ |
(0.70 |
) |
$ |
0.49 |
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Continuing operations |
|
$ |
0.61 |
|
$ |
0.32 |
|
$ |
0.07 |
|
$ |
(0.55 |
) |
$ |
0.56 |
|
|
Discontinued operations |
|
(0.05 |
) |
0.12 |
|
(0.02 |
) |
(0.15 |
) |
(0.08 |
) | |||||
|
|
|
$ |
0.56 |
|
$ |
0.44 |
|
$ |
0.05 |
|
$ |
(0.70 |
) |
$ |
0.48 |
|
|
Weighted average shares and dilutive securities outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
121,726 |
|
121,699 |
|
117,188 |
|
108,114 |
|
117,182 |
| |||||
|
Diluted |
|
141,295 |
|
125,937 |
|
120,908 |
|
108,114 |
|
121,295 |
| |||||
TENET HEALTHCARE CORPORATION
SELECTED STATISTICS — CONTINUING HOSPITALS
(Unaudited)
|
(Dollars in millions except per patient day, per |
|
Three Months Ended |
|
Year Ended |
| |||||||||||
|
admission and per visit amounts) |
|
03/31/11 |
|
06/30/11 |
|
09/30/11 |
|
12/31/11 |
|
12/31/11 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net inpatient revenues |
|
$ |
1,619 |
|
$ |
1,466 |
|
$ |
1,444 |
|
$ |
1,499 |
|
$ |
6,028 |
|
|
Net outpatient revenues |
|
$ |
720 |
|
$ |
738 |
|
$ |
734 |
|
$ |
736 |
|
$ |
2,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Number of acute care hospitals (at end of period) |
|
49 |
|
49 |
|
49 |
|
49 |
|
49 |
| |||||
|
Licensed beds (at end of period) |
|
13,123 |
|
13,086 |
|
13,119 |
|
13,119 |
|
13,119 |
| |||||
|
Average licensed beds |
|
13,123 |
|
13,111 |
|
13,106 |
|
13,119 |
|
13,115 |
| |||||
|
Utilization of licensed beds |
|
53.8 |
% |
50.0 |
% |
49.1 |
% |
48.9 |
% |
50.4 |
% | |||||
|
Patient days |
|
635,463 |
|
595,986 |
|
591,948 |
|
589,848 |
|
2,413,245 |
| |||||
|
Adjusted patient days |
|
948,356 |
|
912,369 |
|
909,960 |
|
902,762 |
|
3,673,447 |
| |||||
|
Net inpatient revenue per patient day |
|
$ |
2,548 |
|
$ |
2,460 |
|
$ |
2,439 |
|
$ |
2,541 |
|
$ |
2,498 |
|
|
Total admissions |
|
131,437 |
|
125,592 |
|
125,458 |
|
125,347 |
|
507,834 |
| |||||
|
Adjusted patient admissions |
|
197,459 |
|
193,971 |
|
194,965 |
|
193,631 |
|
780,026 |
| |||||
|
Net inpatient revenue per admission |
|
$ |
12,318 |
|
$ |
11,673 |
|
$ |
11,510 |
|
$ |
11,959 |
|
$ |
11,870 |
|
|
Average length of stay (days) |
|
4.83 |
|
4.75 |
|
4.72 |
|
4.71 |
|
4.75 |
| |||||
|
Total surgeries |
|
87,507 |
|
91,005 |
|
92,574 |
|
91,200 |
|
362,286 |
| |||||
|
Outpatient visits |
|
990,411 |
|
994,204 |
|
987,318 |
|
982,083 |
|
3,954,016 |
| |||||
|
Net outpatient revenue per visit |
|
$ |
727 |
|
$ |
742 |
|
$ |
743 |
|
$ |
749 |
|
$ |
741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Sources of net patient revenue |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Medicare |
|
23.2 |
% |
23.5 |
% |
22.5 |
% |
23.1 |
% |
23.1 |
% | |||||
|
Medicaid |
|
11.5 |
% |
7.5 |
% |
8.0 |
% |
8.6 |
% |
9.0 |
% | |||||
|
Managed care |
|
54.6 |
% |
58.2 |
% |
58.2 |
% |
58.1 |
% |
57.2 |
% | |||||
|
Indemnity, self-pay and other |
|
10.7 |
% |
10.8 |
% |
11.3 |
% |
10.2 |
% |
10.7 |
% | |||||
TENET HEALTHCARE CORPORATION
SEGMENT REPORTING
(Unaudited)
|
|
|
December 31, |
|
December 31, |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
Assets |
|
|
|
|
| ||
|
Hospital Operations and other |
|
$ |
8,788 |
|
$ |
8,389 |
|
|
Conifer |
|
219 |
|
73 |
| ||
|
Total |
|
$ |
9,007 |
|
$ |
8,462 |
|
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Capital expenditures: |
|
|
|
|
|
|
|
|
| ||||
|
Hospital Operations and other |
|
$ |
143 |
|
$ |
172 |
|
$ |
495 |
|
$ |
461 |
|
|
Conifer |
|
5 |
|
5 |
|
13 |
|
14 |
| ||||
|
Total |
|
$ |
148 |
|
$ |
177 |
|
$ |
508 |
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net operating revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Hospital Operations and other |
|
$ |
2,277 |
|
$ |
2,150 |
|
$ |
9,002 |
|
$ |
8,575 |
|
|
Conifer |
|
|
|
|
|
|
|
|
| ||||
|
Tenet |
|
97 |
|
69 |
|
371 |
|
261 |
| ||||
|
Other customers |
|
54 |
|
22 |
|
117 |
|
79 |
| ||||
|
|
|
2,428 |
|
2,241 |
|
9,490 |
|
8,915 |
| ||||
|
Intercompany eliminations |
|
(97 |
) |
(69 |
) |
(371 |
) |
(261 |
) | ||||
|
Total |
|
$ |
2,331 |
|
$ |
2,172 |
|
$ |
9,119 |
|
$ |
8,654 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
| ||||
|
Hospital Operations and other |
|
$ |
305 |
|
$ |
271 |
|
$ |
1,098 |
|
$ |
1,083 |
|
|
Conifer |
|
31 |
|
17 |
|
105 |
|
43 |
| ||||
|
Total |
|
$ |
336 |
|
$ |
288 |
|
$ |
1,203 |
|
$ |
1,126 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
| ||||
|
Hospital Operations and other |
|
$ |
113 |
|
$ |
97 |
|
$ |
420 |
|
$ |
389 |
|
|
Conifer |
|
3 |
|
3 |
|
10 |
|
9 |
| ||||
|
Total |
|
$ |
116 |
|
$ |
100 |
|
$ |
430 |
|
$ |
398 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Adjusted EBITDA |
|
$ |
336 |
|
$ |
288 |
|
$ |
1,203 |
|
$ |
1,126 |
|
|
Depreciation and amortization |
|
(116 |
) |
(100 |
) |
(430 |
) |
(398 |
) | ||||
|
Interest expense |
|
(109 |
) |
(100 |
) |
(412 |
) |
(375 |
) | ||||
|
Loss from early extinguishment of debt |
|
(4 |
) |
(117 |
) |
(4 |
) |
(117 |
) | ||||
|
Litigation and investigation costs |
|
(2 |
) |
(31 |
) |
(5 |
) |
(55 |
) | ||||
|
Impairments of long-lived assets |
|
(7 |
) |
(2 |
) |
(19 |
) |
(20 |
) | ||||
|
Investment earnings (loss) |
|
(1 |
) |
— |
|
1 |
|
3 |
| ||||
|
Income before income taxes |
|
$ |
97 |
|
$ |
(62 |
) |
$ |
334 |
|
$ |
164 |
|
Due to the fact that Conifer’s revenues from providing services to Tenet’s hospitals were based on estimated third-party billing terms in 2012 but not in 2011, the following supplemental table presents 2012 Adjusted EBITDA on a comparable basis to the prior year’s presentation.
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Adjusted supplemental EBITDA: |
|
|
|
|
|
|
|
|
| ||||
|
Hospital Operations and other |
|
$ |
327 |
|
$ |
271 |
|
$ |
1,167 |
|
$ |
1,083 |
|
|
Conifer |
|
9 |
|
17 |
|
36 |
|
43 |
| ||||
|
Total |
|
$ |
336 |
|
$ |
288 |
|
$ |
1,203 |
|
$ |
1,126 |
|
(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) cumulative effect of changes in accounting principle, net of tax, (2) net income attributable to noncontrolling interests, (3) preferred stock dividends, (4) income (loss) from discontinued operations, net of tax, (5) income tax (expense) benefit, (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 (costs) benefit, net of insurance recoveries, (11) hurricane insurance recoveries, net of costs, (12) impairment of long-lived assets and goodwill and restructuring charges, net of insurance recoveries, 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 twelve months ended December 31, 2012 and 2011.
(2) Adjusted Free Cash Flow
Adjusted Free Cash Flow, a non-GAAP term, is defined by the Company as cash provided by (used in) operating activities less payments against reserves for restructuring charges and litigation costs, operating cashflows from discontinued operations, capital expenditures in continuing operations, and new hospital construction expenditures. The Company believes the use of Adjusted Free Cash Flow is meaningful as the use of this financial measure provides the Company and the users of its financial statements with supplemental information about the impact on the Company’s cash flows from the items specified above. 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 cash flows, some of which are recurring. The Company uses this information in its analysis of its cash flows excluding items that it does not consider relevant to the liquidity 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 Free Cash Flow is a measure of liquidity that management uses in its business as an alternative to net cash provided by (used in) operating activities. Because Adjusted Free Cash Flow excludes many items that are included in our financial statements, it does not provide a complete measure of our liquidity. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance or liquidity. The reconciliation of net cash provided by (used in) operating activities, the most comparable GAAP term, to Adjusted Free Cash Flow is set forth in the second table below for the three and twelve months ended December 31, 2012 and 2011.
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #1 - Reconciliation of Adjusted EBITDA to Net Income Attributable to Tenet Healthcare Corporation Common Shareholders
(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
(Dollars in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Net income (loss) attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
49 |
|
$ |
(76 |
) |
$ |
141 |
|
$ |
58 |
|
|
Less: Net (income) loss attributable to noncontrolling interests |
|
(5 |
) |
(4 |
) |
19 |
|
(12 |
) | ||||
|
Preferred stock dividends |
|
— |
|
(6 |
) |
(11 |
) |
(24 |
) | ||||
|
Loss from discontinued operations, net of tax |
|
(8 |
) |
(16 |
) |
(76 |
) |
(9 |
) | ||||
|
Income (loss) from continuing operations |
|
62 |
|
(50 |
) |
209 |
|
103 |
| ||||
|
Income tax (benefit) expense |
|
(35 |
) |
12 |
|
(125 |
) |
(61 |
) | ||||
|
Investment earnings (loss) |
|
(1 |
) |
0 |
|
1 |
|
3 |
| ||||
|
Loss from early extinguishment of debt |
|
(4 |
) |
(117 |
) |
(4 |
) |
(117 |
) | ||||
|
Interest expense |
|
(109 |
) |
(100 |
) |
(412 |
) |
(375 |
) | ||||
|
Operating income |
|
211 |
|
155 |
|
749 |
|
653 |
| ||||
|
Litigation and investigation costs |
|
(2 |
) |
(31 |
) |
(5 |
) |
(55 |
) | ||||
|
Impairment of long-lived assets and goodwill, and restructuring charges, net |
|
(7 |
) |
(2 |
) |
(19 |
) |
(20 |
) | ||||
|
Depreciation and amortization |
|
(116 |
) |
(100 |
) |
(430 |
) |
(398 |
) | ||||
|
Adjusted EBITDA |
|
$ |
336 |
|
$ |
288 |
|
$ |
1,203 |
|
$ |
1,126 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net operating revenues |
|
$ |
2,331 |
|
$ |
2,172 |
|
$ |
9,119 |
|
$ |
8,654 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA margin) |
|
14.4 |
% |
13.3 |
% |
13.2 |
% |
13.0 |
% | ||||
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #2 - Reconciliation of Adjusted Free Cash Flow
(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
(Dollars in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Net cash provided by operating activities |
|
$ |
256 |
|
$ |
173 |
|
$ |
593 |
|
$ |
497 |
|
|
Less: Payments against reserves for restructuring charges and litigation costs |
|
(7 |
) |
(17 |
) |
(63 |
) |
(44 |
) | ||||
|
Net cash used in operating activities from discontinued operations |
|
(16 |
) |
(4 |
) |
(35 |
) |
(38 |
) | ||||
|
Adjusted net cash provided by operating activities — continuing operations |
|
279 |
|
194 |
|
691 |
|
579 |
| ||||
|
Purchases of property and equipment — continuing operations |
|
(148 |
) |
(173 |
) |
(506 |
) |
(467 |
) | ||||
|
Adjusted free cash flow — continuing operations |
|
$ |
131 |
|
$ |
21 |
|
$ |
185 |
|
$ |
112 |
|
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, 2013
(Unaudited)
|
|
|
2013 |
| ||||
|
(Dollars in millions) |
|
Low |
|
High |
| ||
|
Net income attributable to Tenet Healthcare Corporation common shareholders |
|
$ |
118 |
|
$ |
234 |
|
|
Less: |
|
|
|
|
|
|
|
|
Net (income) loss attributable to noncontrolling interests |
|
(25 |
) |
(15 |
) | ||
|
Loss from discontinued operations, net of tax |
|
(5 |
) |
0 |
| ||
|
Income from continuing operations |
|
$ |
148 |
|
$ |
249 |
|
|
Income tax expense (a) |
|
(87 |
) |
(146 |
) | ||
|
Income from continuing operations, before income taxes |
|
$ |
235 |
|
$ |
395 |
|
|
Interest expense, net |
|
(415 |
) |
(395 |
) | ||
|
Loss from early extinguishment of debt |
|
(185 |
) |
(175 |
) | ||
|
Operating income |
|
$ |
835 |
|
$ |
965 |
|
|
Depreciation and amortization |
|
(490 |
) |
(460 |
) | ||
|
Adjusted EBITDA |
|
$ |
1,325 |
|
$ |
1,425 |
|
|
|
|
|
|
|
| ||
|
Net operating revenues |
|
$ |
9,800 |
|
$ |
10,100 |
|
|
|
|
|
|
|
| ||
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA margin) |
|
13.5 |
% |
14.1 |
% | ||
(a) Uses tax rate of 37% excluding unusual adjustments
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, 2013
(Unaudited)
|
|
|
2013 |
| ||||
|
(Dollars in millions except per share amounts) |
|
Low |
|
High |
| ||
|
Adjusted EBITDA (from Table #3) |
|
$ |
1,325 |
|
$ |
1,425 |
|
|
Depreciation and amortization |
|
(490 |
) |
(460 |
) | ||
|
Interest expense, net |
|
(415 |
) |
(395 |
) | ||
|
Normalized income from continuing operations before income taxes |
|
$ |
420 |
|
$ |
570 |
|
|
Income tax expense (a) |
|
(155 |
) |
(211 |
) | ||
|
Normalized income from continuing operations |
|
$ |
265 |
|
$ |
359 |
|
|
Net (income) loss attributable to noncontrolling interests |
|
(25 |
) |
(15 |
) | ||
|
Normalized net income attributable to common shareholders |
|
$ |
240 |
|
$ |
344 |
|
|
|
|
|
|
|
| ||
|
Fully Diluted weighted average share outstanding (in millions) |
|
104 |
|
104 |
| ||
|
|
|
|
|
|
| ||
|
Normalized fully diluted earnings per share — continuing operations |
|
$ |
2.31 |
|
$ |
3.31 |
|
(a) Uses tax rate of 37% excluding unusual adjustments
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table 5 - Reconciliation of Outlook Adjusted Free Cash Flow
for the Year Ending December 31, 2013
(Unaudited)
|
|
|
2013 |
| ||||
|
(Dollars in millions) |
|
Low |
|
High |
| ||
|
Net cash provided by operating activities |
|
$ |
725 |
|
$ |
845 |
|
|
Less: |
|
|
|
|
|
|
|
|
Payments against reserves for restructuring charges and litigation costs |
|
(20 |
) |
(10 |
) | ||
|
Net cash used in operating activities from discontinued operations |
|
(30 |
) |
(20 |
) | ||
|
Adjusted net cash provided by operating activities — continuing operations |
|
$ |
775 |
|
$ |
875 |
|
|
Purchases of property and equipment — continuing operations |
|
(600 |
) |
(550 |
) | ||
|
Adjusted free cash flow — continuing operations |
|
$ |
175 |
|
$ |
325 |
|