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Tenet Healthcare 8-K Report, Financial Results (Feb 12, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 12, 2025
Period End
February 12, 2025
Security
THC
In the record · 2016–202610-K1110-Q338-K176

THC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 176 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’19Jan ’19
  2. Deal closed8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.

Tenet Healthcare Corporation (NYSE: THC) reported financial results for the quarter and full year ended December 31, 2024, via a press release furnished under Item 2.02 of Form 8-K.

Fourth-quarter 2024 net operating revenues were $5.072 billiona, down from $5.379 billion in the fourth quarter of 2023, reflecting the divestiture of fourteen hospitals, partially offset by same-facility growth, favorable payer mix and ambulatory surgical center acquisitions. Net income available to common shareholders was $318 million, or $3.32 per diluted share, versus $244 million, or $2.30 per diluted share, a year earlier. Consolidated Adjusted EBITDA was $1.048 billion in the fourth quarter, compared with $1.012 billion, with an Adjusted EBITDA margin of 20.7%.

For full year 2024, net income available to common shareholders was $3.2 billionb, or $32.70 per diluted share, which included a pre-tax gain of $2.916 billion primarily tied to hospital divestitures. Cash flow and balance sheet metrics improved. Net cash provided by operating activities for 2024 was $2.047 billion, which included $855 million of income taxes paid on gains from hospital sales.

Free cash flow was $1.116 billionc, and the company repurchased 5,596,573 shares for $672 million. The ratio of net debt to Adjusted EBITDA was 2.54x at December 31, 2024, down from 3.89x a year earlier. For 2025, Tenet guided to consolidated net operating revenues of $20.6 billion to $21.0 billion, Adjusted EBITDA of $3.975 billion to $4.175 billion, and Adjusted diluted earnings per share of $11.74 to $12.84.

Free cash flow is expected to be $1.8 billion to $2.05 billiond. The Ambulatory segment outlook calls for same-facility system-wide revenue growth of up 3.0% to 6.0%, and the Hospital segment outlook calls for inpatient admissions growth of up 2.0% to 3.0%.

02—Key points

Key Highlights

  1. Q4 2024 net income available to common shareholders was $318 million ($3.32 per diluted share), up from $244 million ($2.30) in Q4 2023.
  2. Q4 2024 Adjusted EBITDA was $1.048 billion, a 20.7% margin, versus $1.012 billion in Q4 2023.
  3. Full-year 2024 net income available to common shareholders was $3.2 billion ($32.70 per diluted share), including a $2.916 billion pre-tax gain mainly from hospital divestitures.
  4. Ambulatory Care Q4 2024 Adjusted EBITDA rose to $530 million from $464 million, with Q4 same-facility surgical cases up 0.1% and net revenue per case up 8.5%.
  5. Net debt to Adjusted EBITDA improved to 2.54x at December 31, 2024, from 3.89x at December 31, 2023.
  6. Free cash flow for 2024 was $1.116 billion, and the company repurchased 5,596,573 shares for $672 million.
  7. FY 2025 outlook projects Adjusted EBITDA of $3.975 billion to $4.175 billion and Adjusted diluted EPS of $11.74 to $12.84.

03—Questions

Frequently Asked Questions

  1. How did Tenet's fourth-quarter 2024 results compare with the prior year?

    Net operating revenues fell to $5.072 billion from $5.379 billion, mainly due to the divestiture of fourteen hospitals in 2024. Net income available to common shareholders rose to $318 million ($3.32 per diluted share) from $244 million ($2.30 per diluted share), and Adjusted EBITDA rose to $1.048 billion from $1.012 billion.

  2. Why is full-year 2024 net income so much higher than in 2023?

    The 2024 results included a pre-tax gain of $2.916 billion ($2.143 billion after tax, or $21.89 per diluted share), primarily associated with the hospital divestitures. Net income available to common shareholders was $3.2 billion, versus $611 million in 2023.

  3. How did the Hospital and Ambulatory segments perform in the fourth quarter?

    Ambulatory Care net operating revenues were $1.259 billion versus $1.077 billion, and Adjusted EBITDA was $530 million versus $464 million. Hospital Operations and Services net operating revenues were $3.813 billion versus $4.302 billion, and Adjusted EBITDA was $518 million versus $548 million. The Hospital segment's Q4 2023 figure included $52 million of favorable Medicaid supplemental revenue program adjustments.

  4. What is Tenet's 2025 outlook?

    For full-year 2025, Tenet expects net operating revenues of $20.6 billion to $21.0 billion, net income available to common stockholders of $1.040 billion to $1.185 billion, Adjusted EBITDA of $3.975 billion to $4.175 billion, and Adjusted diluted EPS of $11.74 to $12.84. Net cash provided by operating activities is projected at $2.5 billion to $2.85 billion, and free cash flow at $1.8 billion to $2.05 billion.

  5. How much cash did Tenet generate and return to shareholders in 2024?

    Net cash provided by operating activities was $2.047 billion, including $855 million of income taxes paid on gains from hospital sales. Free cash flow was $1.116 billion. The company repurchased 5,596,573 shares of common stock for $672 million during the year.

04—Continue

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