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 Tenet Reports Adjusted EBITDA of $646 Million for the Quarter Ended December 31, 2014
   Monday, February 23, 2015 4:11:01 PM ET

Tenet Healthcare Corporation (THC ) reported Adjusted EBITDA of $646 million for the fourth quarter ended December 31, 2014, an increase of $202 million, or 45.5 percent, compared to $444 million in the fourth quarter of 2013.

"Another quarter of robust earnings growth across our entire business capped off Tenet’s strongest year in a decade," said Trevor Fetter, president and chief executive officer. "Our strategies to capture incremental market share, combined with an improving economy and expanded health coverage, generated admissions growth that was among the highest in the industry. Conifer also achieved record growth and continues to gain recognition as a leading provider of revenue cycle management and value-based care services. We are well-positioned to continue driving strong performance in 2015."



Discussion of Results (Percentage changes in operating metrics compare Q4’14 to Q4’13 on a same-hospital basis unless otherwise noted.)

Tenet generated same-hospital growth in admissions and adjusted admissions of 4.0 percent and 4.5 percent, respectively, compared to the fourth quarter of 2013. In addition, the company achieved one of the strongest quarterly percentage increases in same-hospital commercial volumes in more than a decade. We achieved an increase in paying admissions of 6.1 percent, driven in part by growth in commercial admissions. Surgeries increased 7.5 percent and emergency department visits increased 7.2 percent. The company estimates that approximately 70 percent of its volume growth in the quarter is related to investments in service line development, quality improvements, and enhanced physician alignment. This is independent of growth attributable to expanded insurance coverage under the Affordable Care Act (ACA).

Tenet increased outpatient visits by 9.6 percent. Approximately 92 percent of this growth was organic. At the end of 2014, Tenet operated 210 outpatient facilities, an increase of 27 facilities over the prior year.

Payer mix improved in the quarter. In the five states that expanded Medicaid, uninsured plus charity admissions declined by 2,547 admissions, or 62.4 percent, and Medicaid admissions increased by 4,355 admissions, or 20.5 percent. Uninsured plus charity outpatient visits decreased by 23,336 visits, or 34.3 percent, and Medicaid outpatient visits grew by 67,252 visits, or 25.2 percent, in these same five states. Across the entire company, uninsured plus charity admissions decreased by 3,109 admissions, or 21.9 percent, and Medicaid admissions increased by 4,555 admissions, or 9.0 percent. There was a decline in charity and uninsured outpatient visits of 18,917 visits, or 10.3 percent, and an increase in Medicaid outpatient visits of 86,891 visits, or 17.9 percent.

Tenet’s exchange volumes were 3,768 admissions and 32,133 outpatient visits in the fourth quarter. Compared to the third quarter of 2014, the company drove increases in exchange admissions and exchange outpatient visits of 11.0 percent and 7.4 percent, respectively.

Net operating revenues, after provision for doubtful accounts, grew by $583 million, or 15.0 percent, to $4.468 billion, compared to net operating revenues of $3.885 billion in the fourth quarter of 2013. Tenet drove revenue growth by increasing patient volumes, improving terms in commercial managed care contracts and growing the company’s Conifer services businesses. In addition, the California Provider Fee program contributed $165 million to net operating revenues in the fourth quarter of 2014, an increase of $146 million compared to $19 million in the fourth quarter of 2013, due to the 2014 program being approved in the fourth quarter of 2014. Including only the impact of the California Provider Fee program related to the fourth quarter of 2014, or $38 million on a same-hospital basis, Tenet increased patient revenue net of bad debt expense per adjusted admission by 4.9 percent. The company grew commercial managed care revenue by 6.7 percent per admission and 0.9 percent per outpatient visit. Tenet continued to increase its investments in urgent care centers, which have lower acuity and generate lower revenues and costs per patient encounter. This contributed to a smaller percentage increase in commercial outpatient pricing.

Selected operating expenses for hospital operations, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased by 3.8 percent. The selected operating expense metric for hospital operations excludes the company’s Conifer services business, health plans, and a provider network in Southern California. Excluding incremental expenses related to increased physician employment, selected operating expenses per adjusted admission increased by 2.6 percent.

Tenet recorded $32 million in electronic health records incentives in the fourth quarter of 2014, a $16 million decrease compared to $48 million in the fourth quarter of 2013. 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 7.4 percent of revenues before bad debt, a decrease of 80 basis points compared to 8.2 percent in the fourth quarter of 2013. This improvement reflects the benefits of healthcare reform.

Conifer generated an increase in Adjusted EBITDA of $28 million, or 77.8 percent, to $64 million, compared to $36 million in the fourth quarter of 2013. Conifer’s revenue increased by $63 million, or 23.9 percent, to $327 million in the fourth quarter of 2014, compared to revenues of $264 million in the fourth quarter of 2013.

Tenet generated after-tax income from continuing operations in the fourth quarter of 2014 of $104 million, or $1.03 per diluted share. This excludes $43 million, or $0.42 per share in after-tax impairments, restructuring charges, acquisition-related costs, and litigation and investigation costs. The company reported income from continuing operations in the fourth quarter of 2013 of $43 million, or $0.43 per diluted share, excluding the comparable items which totaled $60 million after-tax, or $0.60 per share.

Tenet drove net income attributable to common shareholders of $61 million after-tax, or $0.61 per share in the fourth quarter of 2014, compared to a net loss of $24 million after-tax, or $0.24 per share, in the fourth quarter of 2013.

Cash and cash equivalents were $193 million at December 31, 2014, compared to $200 million at September 30, 2014. Net revenues related to the California Provider Fee program, the Texas Medicaid disproportionate share funding, and the Texas uncompensated care 1115 Waiver programs of approximately $300 million had not been received by the company as of December 31, 2014. Tenet’s outstanding borrowings on its credit line were $220 million as of December 31, 2014. Accounts receivable days increased by 0.2 days to 49.5 days at December 31, 2014, compared to 49.3 days at September 30, 2014.

Outlook for First Quarter and Full Year 2015 Adjusted EBITDA

The company confirmed its existing 2015 Outlook for Adjusted EBITDA to be in a range of $2.05 billion to $2.15 billion. The company expects 2015 earnings per share to be in a range of $1.32 to $2.40 per share. For the first quarter ending March 31, 2015, the company expects Adjusted EBITDA of $475 million to $525 million and earnings per share of $0.05 to $0.55 per share.

Management’s Webcast Discussion of Fourth Quarter Results

Tenet management will discuss the Company’s fourth quarter 2014 results on a webcast scheduled for 9:00 a.m. (CST) / 10:00 a.m. (EST) on February 24, 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-K report, 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 national, diversified healthcare services company with more than 109,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, 214 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value based care and patient communications. 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. 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 December 31,
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2014                                  %                                2013                                           %                        Change
                                                                                                               ---------------------------------------------------------                     ----------                     --------------------------------------------------------- -------------------------------                     ---------------------
Net operating revenues:
 Net operating revenues before provision for doubtful accounts                                                                    $          4,824                                                                                             $          4,233                                                                                    14.0 %
 Less: Provision for doubtful accounts                                                                                      356                                                                    348                                                                  2.3 %
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net operating revenues                                                                                                                       4,468                                           100.0 %                                                      3,885                                            100.0 %                                 15.0 %
Operating expenses:
 Salaries, wages and benefits                                                                                                                2,118                                            47.4 %                                                      1,872                                             48.2 %                                 13.1 %
 Supplies                                                                                                                                      688                                            15.4 %                                                        626                                             16.1 %                                  9.9 %
 Other operating expenses, net                                                                                                               1,048                                            23.5 %                                                        991                                             25.5 %                                  5.8 %
 Electronic health record incentives                                                                                                           (32 )                                          (0.7 )%                                                       (48 )                                           (1.2 )%                               (33.3 )%
 Depreciation and amortization                                                                                                                 240                                             5.4 %                                                        191                                              4.9 %                                 25.7 %
 Impairment and restructuring charges, and acquisition-related costs                                                                            63                                             1.4 %                                                         58                                              1.5 %
 Litigation and investigation costs                                                                                           6                          0.1 %                                      28        0.7 %
                                                                                                               -------------------- -------------- --------------------                      ----- ---                      -------------------- -------------- --------------------  -------------------- ----- ---
Operating income                                                                                                                               337                                             7.5 %                                                        167                                              4.3 %
Interest expense                                                                                                           (196 )                                                                                    (182 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Income (loss) from continuing operations, before income taxes                                                                                  141                                                                                                          (15 )
Income tax benefit (expense)                                                                                                (60 )                                                                                       8  
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Income (loss) from continuing operations, before discontinued                                                                                   81                                                                                                           (7 )
operations
Discontinued operations:
 Loss from operations                                                                                                               --                                                                                               --
 Income tax expense                                                                                              --                                                                     (7 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net loss from discontinued operations                                                                            --                                                                     (7 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income (loss)                                                                                                                               81                                                                                                          (14 )
 Less: Net income attributable to noncontrolling interests                                                                   20                                                                     10  
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                                                    $             61                                                                          $            (24 )
common shareholders
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                           
Amounts attributable to Tenet Healthcare Corporation common
shareholders
 Income (loss) from continuing operations, net of tax                                                                             $             61                                                                                             $            (17 )
 Loss from discontinued operations, net of tax                                                                   --                                                                     (7 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
 Net income (loss) attributable to Tenet Healthcare Corporation                                                                   $             61                                                                          $            (24 )
 common shareholders
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                           
Earnings (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
 Basic
  Continuing operations                                                                                                           $           0.62                                                                                             $          (0.17 )
  Discontinued operations                                                                                        --                                                                  (0.07 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
                                                                                                                                  $           0.62                                                                          $          (0.24 )
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
 Diluted
  Continuing operations                                                                                                           $           0.61                                                                                             $          (0.17 )
  Discontinued operations                                                                                        --                                                                  (0.07 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
                                                                                                                                  $           0.61                                                                          $          (0.24 )
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
 Weighted average shares and dilutive securities outstanding (in
 thousands):
   Basic                                                                                                                                    98,331                                                                                                       98,586
   Diluted*                                                                                                                                101,279                                                                                                       98,586
 
*Had we generated income from continuing operations in the three
months ended December 31, 2013, the effect of employee stock
options, restricted stock units and deferred compensation units on
the diluted shares calculation would have been an increase of
2,472 shares.
 
 
 
 
 
 
                                                                                                                                                                 TENET HEALTHCARE CORPORATION
                                                                                                                                                             CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                          (Unaudited)
 
(Dollars in millions except per share amounts)                                                                                                                                                                              Year Ended December 31,
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2014                                                     %                                                   2013                                           %                                           Change
                                                                                                               ---------------------------------------------------------                     ----------                     --------------------------------------------------------- -------------------------------                     ---------------------
Net operating revenues:
 Net operating revenues before provision for doubtful accounts                                                                    $         17,920                                                                                             $         12,074                                                                                    48.4 %
 Less: Provision for doubtful accounts                                                                                    1,305                                                                    972                                                                 34.3 %
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net operating revenues                                                                                                                      16,615                                           100.0 %                                                     11,102                                            100.0 %                                 49.7 %
Operating expenses:
 Salaries, wages and benefits                                                                                                                8,023                                            48.3 %                                                      5,371                                             48.4 %                                 49.4 %
 Supplies                                                                                                                                    2,630                                            15.8 %                                                      1,784                                             16.1 %                                 47.4 %
 Other operating expenses, net                                                                                                               4,114                                            24.8 %                                                      2,701                                             24.3 %                                 52.3 %
 Electronic health record incentives                                                                                                          (104 )                                          (0.7 )%                                                       (96 )                                           (0.9 )%                                 8.3 %
 Depreciation and amortization                                                                                                                 849                                             5.1 %                                                        545                                              4.9 %                                 55.8 %
 Impairment and restructuring charges, and acquisition-related costs                                                                           153                                             0.9 %                                                        103                                              0.9 %
 Litigation and investigation costs                                                                                          25                          0.2 %                                      31        0.3 %
                                                                                                               -------------------- -------------- --------------------                      ----- ---                      -------------------- -------------- --------------------  -------------------- ----- ---
Operating income                                                                                                                               925                                             5.6 %                                                        663                                              6.0 %
Interest expense                                                                                                                              (754 )                                                                                                       (474 )
Loss from early extinguishment of debt                                                                                                         (24 )                                                                                                       (348 )
Investment earnings                                                                                              --                                                                      1  
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Income (loss) from continuing operations, before income taxes                                                                                  147                                                                                                         (158 )
Income tax benefit (expense)                                                                                                (49 )                                                                                      65  
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income (loss) from continuing operations, before                                                                                            98                                                                                                          (93 )
discontinued operations
Discontinued operations:
 Loss from operations                                                                                                                          (17 )                                                                                                         (5 )
 Litigation and investigation costs                                                                                                            (18 )                                                                                                         (2 )
 Income tax benefit (expense)                                                                                                13                                                                     (4 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Loss from discontinued operations                                                                                           (22 )                                                                                     (11 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income (loss)                                                                                                                               76                                                                                                         (104 )
 Less: Net income attributable to noncontrolling interests                                                                   64                                                                     30  
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                                                    $             12                                                                          $           (134 )
common shareholders
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                           
Amounts attributable to Tenet Healthcare Corporation common
shareholders
 Net income (loss) from continuing operations, net of tax                                                                         $             34                                                                                             $           (123 )
 Loss from discontinued operations, net of tax                                                                              (22 )                                                                                     (11 )
                                                                                                               -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
 Net income (loss) attributable to Tenet Healthcare Corporation                                                                   $             12                                                                          $           (134 )
 common shareholders
                                                                                                               ==================== ============== ====================                                                     ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                           
Net income (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
 Basic
  Continuing operations                                                                   $           0.35                                             $          (1.21 )
  Discontinued operations                                                         (0.23 )                                   (0.11 )
                                                                       -------------------- -------------- --------------------     -------------------- -------------- -
                                                                                          $           0.12                          $          (1.32 )
                                                                       ==================== ============== ====================     ==================== ============== =
 Diluted
  Continuing operations                                                                   $           0.34                                             $          (1.21 )
  Discontinued operations                                                         (0.22 )                                   (0.11 )
                                                                       -------------------- -------------- --------------------     -------------------- -------------- -
                                                                                          $           0.12                          $          (1.32 )
                                                                       ==================== ============== ====================     ==================== ============== =
 Weighted average shares and dilutive securities outstanding (in
 thousands):
   Basic                                                                                            97,801                                                      101,648
   Diluted*                                                                                        100,287                                                      101,648
                                                                                                                                                                                                                              
*Had we generated income from continuing operations available to
shareholders in the year ended December 31, 2013, the effect (in
thousands) of employee stock options, restricted stock units and
deferred compensation units on the diluted shares calculation
would have been an increase in shares of 2,310 shares.
 
 
 
 
 
 
                                                                                                                             TENET HEALTHCARE CORPORATION
                                                                                                                              CONSOLIDATED BALANCE SHEETS
                                                                                                                                      (Unaudited)
 
                                                                                                                                                                                             December 31,                                          December 31,
(Dollars in millions)                                                                                                                                                                            2014                                                  2013
                                                                                                                                                                           ------------------------------------------------- ---------------------------------------------------------
                                                                                  ASSETS
Current assets:
  Cash and cash equivalents                                                                                                                                                                   $    193                                          $            113
  Accounts receivable, less allowance for doubtful accounts                                                                                                                                      2,404                                                     1,890
  Inventories of supplies, at cost                                                                                                                                                                 276                                                       260
  Income tax receivable                                                                                                                                                                              2                                            --
  Current portion of deferred income taxes                                                                                                                                                         747                                                       692
  Other current assets                                                                                                                                                        1,095                 737  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
    Total current assets                                                                                                                                                                         4,717                                                     3,692
Investments and other assets                                                                                                                                                                       384                                                       357
Deferred income taxes, net of current portion                                                                                                                                                      116                                                       148
Property and equipment, at cost, less accumulated depreciation and                                                                                                                               7,733                                                     7,582
amortization
Goodwill                                                                                                                                                                                         3,913                                                     3,566
Other intangible assets, at cost, less accumulated amortization                                                                                                               1,278               1,105  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
Total assets                                                                                                                                                                                  $ 18,141                       $         16,450  
                                                                                                                                                                           ==================== ====== ====================  ==================== ============== ====================
                                                                                                                                                                                                                              
                                                                          LIABILITIES AND EQUITY
Current liabilities:
  Current portion of long-term debt                                                                                                                                                           $    112                                          $            153
  Accounts payable                                                                                                                                                                               1,179                                                     1,085
  Accrued compensation and benefits                                                                                                                                                                852                                                       622
  Professional and general liability reserves                                                                                                                                                      189                                                       156
  Accrued interest payable                                                                                                                                                                         194                                                       198
  Other current liabilities                                                                                                                                                   1,051                 879  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
    Total current liabilities                                                                                                                                                                    3,577                                                     3,093
Long-term debt, net of current portion                                                                                                                                                          11,695                                                    10,696
Professional and general liability reserves                                                                                                                                                        492                                                       555
Defined benefit plan obligations                                                                                                                                                                   633                                                       398
Other long-term liabilities                                                                                                                                                     558                 490  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
    Total liabilities                                                                                                                                                                           16,955                                                    15,232
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated                                                                                                                                      401                                                       340
subsidiaries
Equity:
  Shareholders’ equity:
  Common stock                                                                                                                                                                                       7                                                         7
  Additional paid-in capital                                                                                                                                                                     4,614                                                     4,572
  Accumulated other comprehensive loss                                                                                                                                                            (182 )                                                     (24 )
  Accumulated deficit                                                                                                                                                                           (1,410 )                                                  (1,422 )
  Common stock in treasury, at cost                                                                                                                                          (2,378 )                               (2,378 )
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
    Total shareholders’ equity                                                                                                                                          651                                                       755
Noncontrolling interests                                                                                                                                                        134                 123  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
  Total equity                                                                                                                                                                  785                 878  
                                                                                                                                                                           -------------------- ------ --------------------  -------------------- -------------- --------------------
Total liabilities and equity                                                                                                                                                                  $ 18,141                       $         16,450  
                                                                                                                                                                           ==================== ====== ====================  ==================== ============== ====================
 
 
 
 
 
 
                                                                                                                                       TENET HEALTHCARE CORPORATION
                                                                                                                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                (Unaudited)
(Dollars in millions)                                                                                                                                          Year Ended
                                                                                                                                                                                                                       December 31,
                                                                                                                                               ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                         2014                                                         2013
                                                                                                                                               ---------------------------------------------------------                                          ---------------------------------------------------------
Net income (loss)                                                                                                                                                 $             76                                                                                   $           (104 )
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
 Depreciation and amortization                                                                                                                                                 849                                                                                                545
 Provision for doubtful accounts                                                                                                                                             1,305                                                                                                972
 Deferred income tax benefit                                                                                                                                                    30                                                                                                (67 )
 Stock-based compensation expense                                                                                                                                               51                                                                                                 36
 Impairment and restructuring charges, and acquisition-related costs                                                                                                           153                                                                                                103
 Litigation and investigation costs                                                                                                                                             25                                                                                                 31
 Loss from early extinguishment of debt                                                                                                                                         24                                                                                                348
 Amortization of debt discount and debt issuance costs                                                                                                                          28                                                                                                 19
 Pre-tax income from discontinued operations                                                                                                                                    35                                                                                                  7
 Other items, net                                                                                                                                                              (40 )                                                                                              (33 )
Changes in cash from operating assets and liabilities:
 Accounts receivable                                                                                                                                                        (1,896 )                                                                                             (987 )
 Inventories and other current assets                                                                                                                                         (314 )                                                                                             (203 )
 Income taxes                                                                                                                                                                    3                                                                                     --
 Accounts payable, accrued expenses and other current liabilities                                                                                                              505                                                                                                 38
 Other long-term liabilities                                                                                                                                                    44                                                                                                 13
Payments for restructuring charges, acquisition-related costs,                                                                                                                (168 )                                                                                             (114 )
and litigation costs and settlements
Net cash used in operating activities from discontinued                                                                                                     (23 )                                                                           (15 )
operations, excluding income taxes
                                                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net cash provided by operating activities                                                                                                                                    687                                                                                                589
Cash flows from investing activities:
 Purchases of property and equipment -- continuing operations                                                                                                     (933 )                                                                                             (691 )
 Purchases of businesses or joint venture interests, net of cash                                                                                                              (428 )                                                                                           (1,515 )
 acquired
 Proceeds from sales of facilities and other assets -- discontinued                                                                                                  6                                                                                                 16
 operations
 Proceeds from sales of marketable securities, long-term investments                                                                                                            31                                                                                                 15
 and other assets
 Other long-term assets                                                                                                                                                          1                                                                                                  8
 Other items, net                                                                                                                                             1                                                            3  
                                                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net cash used in investing activities                                                                                                                                     (1,322 )                                                                                           (2,164 )
Cash flows from financing activities:
 Repayments of borrowings under credit facility                                                                                                                             (2,430 )                                                                                           (1,286 )
 Proceeds from borrowings under credit facility                                                                                                                              2,245                                                                                              1,691
 Repayments of other borrowings                                                                                                                                               (683 )                                                                                           (5,133 )
 Proceeds from other borrowings                                                                                                                                              1,608                                                                                              6,507
 Deferred debt issuance costs                                                                                                                                                  (27 )                                                                                             (154 )
 Repurchases of common stock                                                                                                                                        --                                                                                               (400 )
 Distributions paid to noncontrolling interests                                                                                                                                (45 )                                                                                              (27 )
 Contributions from noncontrolling interests                                                                                                                                    17                                                                                                 99
 Proceeds from exercise of stock options                                                                                                                                        26                                                                                                 22
 Other items, net                                                                                                                                             4                                                            5  
                                                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net cash provided by financing activities                                                                                                                 715                                                        1,324  
                                                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net increase (decrease) in cash and cash equivalents                                                                                                                            80                                                                                               (251 )
Cash and cash equivalents at beginning of period                                                                                                            113                                                          364  
                                                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Cash and cash equivalents at end of period                                                                                                                        $            193                                                                $            113  
                                                                                                                                               ==================== ============== ====================                                           ==================== ============== ====================
Supplemental disclosures:
  Interest paid, net of capitalized interest                                                                                                                      $           (726 )                                                                                 $           (426 )
  Income tax payments, net                                                                                                                                        $             (8 )                                                                                 $             (6 )
 
 
 
 
 
 
                                                                                                                                                                TENET HEALTHCARE CORPORATION
                                                                                                                                       SELECTED STATISTICS - CONTINUING SAME HOSPITALS INCLUDING VANGUARD
                                                                                                                                                                 PROFORMA FOR FULL YEAR 2013
                                                                                                                                                                         (Unaudited)
 
                                                                                                                                                                     
(Dollars in millions except per patient day, per admission and                                      Three Months Ended December 31,                                                                                        Year Ended December 31,
per visit amounts)
                                                                                                         ---------------------------------------------------------------------------------------                                   --------------------------------------------------------------------------------------------------------------
                                                                                                                2014                2013               Change                                       2014                2013                           Change
                                                                                                         ------------------                     ------------------                     -------------------                         ------------------                     ------------------                     -------------------------------------------
                                                                                                                                                                                                                                                                                                                  
Net inpatient revenues                                                                                     $     2,669                            $     2,372                                    12.5 %                              $     9,927                            $     9,651                                     2.9 %
Net outpatient revenues                                                                                    $     1,495                            $     1,357                                    10.2 %                              $     5,712                            $     5,343                                     6.9 %
                                                                                                                                                                                                                                                                                                                                        
Number of acute care hospitals (at end of period)                                                                   77                                     77                          --     *                                   77                                     77                          --        *
Licensed beds (at end of period)                                                                                20,407                                 20,293                                     0.6 %                                   20,407                                 20,293                                     0.6 %
Average licensed beds                                                                                           20,398                                 20,294                                     0.5 %                                   20,328                                 20,295                                     0.2 %
Utilization of licensed beds                                                                                      49.1 %                                 47.2 %                                   1.9 %   *                                 49.4 %                                 48.1 %                                   1.3 %      *
Patient days - total                                                                              921,926                                880,737                                     4.7 %                                3,665,814                              3,562,658                                     2.9 %
Adjusted patient days                                                                                        1,562,581                              1,481,407                                     5.5 %                                6,201,568                              5,971,291                                     3.9 %
Net inpatient revenue per patient day                                                                      $     2,895                            $     2,693                                     7.5 %                              $     2,708                            $     2,709                          -- %
Total admissions                                                                                               198,219                                190,506                                     4.0 %                                  783,268                                764,695                                     2.4 %
Adjusted patient admissions                                                                                    340,125                                325,377                                     4.5 %                                1,340,444                              1,295,720                                     3.5 %
Charity and uninsured admissions                                                                                11,104                                 14,189                                   (21.7 )%                                  45,308                                 55,548                                   (18.4 )%
Net inpatient revenue per admission                                                                        $    13,465                            $    12,451                                     8.1 %                              $    12,674                            $    12,621                                     0.4 %
Average length of stay (days)                                                                                     4.65                                   4.62                                     0.6 %                                     4.68                                   4.66                                     0.4 %
Total surgeries                                                                                                181,336                                168,730                                     7.5 %                                  694,272                                640,960                                     8.3 %
Admissions through emergency department                                                                        124,600                                116,592                                     6.9 %                                  490,006                                472,515                                     3.7 %
Emergency department visits                                                                                    711,351                                663,114                                     7.3 %                                2,775,281                              2,664,278                                     4.2 %
Total emergency department admissions                                                                          835,951                                779,706                                     7.2 %                                3,265,287                              3,136,793                                     4.1 %
and visits
Outpatient visits                                                                                            2,100,683                              1,916,932                                     9.6 %                                8,198,002                              7,646,969                                     7.2 %
Charity and uninsured outpatient visits                                                                        164,746                                183,586                                   (10.3 )%                                 664,082                                761,027                                   (12.7 ) %
Net outpatient revenue per visit                                                                           $       712                            $       708                                     0.6 %                              $       697                            $       699                                    (0.3 ) %
Net patient revenue per adjusted patient admission                                                         $    12,243                            $    11,461                                     6.8 %                              $    11,667                            $    11,572                                     0.8 %
Net patient revenue per adjusted patient day                                                               $     2,665                            $     2,517                                     5.9 %                              $     2,522                            $     2,511                                     0.4 %
                                                                                                                                                                                                                                                                                                                                        
Net Patient Revenues from:
   Medicare                                                                                                       20.9 %                                 21.8 %                                  (0.9 )%  *                                 21.8 %                                 22.5 %                                  (0.7 )%     *
   Medicaid                                                                                                       10.9 %                                  9.3 %                                   1.6 %   *                                  9.4 %                                 10.2 %                                  (0.8 )%     *
   Managed care                                                                                                   58.1 %                                 57.7 %                                   0.4 %   *                                 58.6 %                                 56.0 %                                   2.6 %      *
   Indemnity, self-pay and other                                                                                  10.1 %                                 11.2 %                                  (1.1 )%  *                                 10.2 %                                 11.3 %                                  (1.1 )%     *
                                                                                                                                                                                                                                                                                                                                        
* This change is the difference between the 2014 and 2013 amounts
shown
 
 
 
 
 
 
                                                                                                                                                               TENET HEALTHCARE CORPORATION
                                                                                                                                               SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS
                                                                                                                                                                        (Unaudited)
                                                                                                                                                                    
(Dollars in millions except per patient day, per admission and                                  Three Months Ended December 31,                                                                                       Year Ended December 31,
per visit amounts)
                                                                                                         ------------------------------------------------------------------------------                                  ----------------------------------------------------------------------------------------------------------------------
                                                                                                                2014                2013           Change                                2014                2013                      Change
                                                                                                         ------------------                     ------------------                     ----------                        ----------------                                          ----------------                     -----------------------------------
                                                                                                                                                                                                                                                                                                                         
Net inpatient revenues                                                                                     $     2,719                            $     2,372                           14.6 %                            $    10,015                                               $     6,952                           44.1 %
Net outpatient revenues                                                                                    $     1,539                            $     1,357                           13.4 %                            $     5,774                                               $     3,859                           49.6 %
                                                                                                                                                                                                                                                                                                                                       
Number of acute care hospitals (at end of period)                                                                   80                                     77                              3     *                                 80                                                        77                              3        *
Licensed beds (at end of period)                                                                                20,814                                 20,293                            2.6 %                                 20,814                                                    20,293                            2.6 %
Average licensed beds                                                                                           20,805                                 20,294                            2.5 %                                 20,531                                                    14,963                           37.2 %
Utilization of licensed beds                                                                                      49.0 %                                 47.2 %                          1.8 %   *                               49.3 %                                                    48.0 %                          1.3 %      *
Patient days - total                                                                              937,803                                880,737                            6.5 %                              3,695,288                                                 2,621,245                           41.0 %
Adjusted patient days                                                                                        1,592,166                              1,481,291                            7.5 %                              6,255,572                                                 4,243,334                           47.4 %
Net inpatient revenue per patient day                                                                      $     2,899                            $     2,693                            7.6 %                            $     2,710                                               $     2,652                            2.2 %
Total admissions                                                                                               202,337                                190,506                            6.2 %                                791,165                                                   558,726                           41.6 %
Adjusted patient admissions                                                                                    347,790                                325,410                            6.9 %                              1,354,896                                                   915,276                           48.0 %
Charity and uninsured admissions                                                                                11,256                                 14,190                          (20.7 )%                                45,703                                                    40,487                           12.9 %
Net inpatient revenue per admission                                                                        $    13,438                            $    12,451                            7.9 %                            $    12,659                                               $    12,443                            1.7 %
Average length of stay (days)                                                                                     4.63                                   4.62                            0.2 %                                   4.67                                                      4.69                           (0.4 ) %
Total surgeries                                                                                                183,250                                168,730                            8.6 %                                697,635                                                   489,867                           42.4 %
Admissions through emergency department                                                                        127,361                                116,592                            9.2 %                                495,195                                                   347,920                           42.3 %
Emergency department visits                                                                                    737,680                                663,114                           11.2 %                              2,824,526                                                 1,865,239                           51.4 %
Total emergency department admissions and visits                                                               865,041                                779,706                           10.9 %                              3,319,721                                                 2,213,159                           50.0 %
Outpatient visits                                                                                            2,145,138                              1,916,932                           11.9 %                              8,283,878                                                 5,115,854                           61.9 %
Charity and uninsured outpatient visits                                                                        168,284                                183,587                           (8.3 )%                               673,320                                                   522,781                           28.8 %
Net outpatient revenue per visit                                                                           $       717                            $       708                            1.3 %                            $       697                                               $       754                           (7.6 )%
Net patient revenue per adjusted patient admission                                                         $    12,243                            $    11,459                            6.8 %                            $    11,653                                               $    11,812                           (1.3 )%
Net patient revenue per adjusted patient day                                                               $     2,674                            $     2,517                            6.2 %                            $     2,524                                               $     2,548                           (0.9 )%
                                                                                                                                                                                                                                                                                                                                       
Net Patient Revenues from:
   Medicare                                                                                                       20.9 %                                 21.8 %                         (0.9 )%  *                               21.9 %                                                    21.8 %                          0.1 %      *
   Medicaid                                                                                                       11.1 %                                  9.3 %                          1.8 %   *                                9.4 %                                                     9.0 %                          0.4 %      *
   Managed care                                                                                                   57.9 %                                 57.7 %                          0.2 %   *                               58.6 %                                                    58.1 %                          0.5 %      *
   Indemnity, self-pay and other                                                                                  10.1 %                                 11.2 %                         (1.1 )%  *                               10.1 %                                                    11.1 %                         (1.0 )%     *
                                                                                                                                                                                                                                                                                                                                       
* This change is the difference between the 2014 and 2013 amounts
shown
 
 
 
 
 
 
                                                                                                                                                                                                                                     TENET HEALTHCARE CORPORATION
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                     (Unaudited)
 
(Dollars in millions except per share amounts)                                                                                                                                                                                                   Three Months Ended                                                                                                                                                                                                Year Ended
                                                                                                                                                                                                                                                                                                                                                                                                                   12/31/14
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       03/31/14                                                     06/30/14                                                     09/30/14                                                     12/31/14
                                                                                                               ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          -----------------------------------------------
Net operating revenues:
 Net operating revenues before provision for doubtful accounts                                                                    $          4,306                                                                                   $          4,362                                                                                   $          4,428                                                                                   $          4,824                                                                                   $  17,920
 Less: Provision for doubtful accounts                                                                                      380                                                          320                                                          249                                                          356                                                 1,305  
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net operating revenues                                                                                                                       3,926                                                                                              4,042                                                                                              4,179                                                                                              4,468                                                                                      16,615
Operating expenses:
 Salaries, wages and benefits                                                                                                                1,921                                                                                              1,956                                                                                              2,028                                                                                              2,118                                                                                       8,023
 Supplies                                                                                                                                      628                                                                                                649                                                                                                665                                                                                                688                                                                                       2,630
 Other operating expenses, net                                                                                                                 999                                                                                              1,035                                                                                              1,032                                                                                              1,048                                                                                       4,114
 Electronic health record incentives                                                                                                            (9 )                                                                                              (58 )                                                                                               (5 )                                                                                              (32 )                                                                                      (104 )
 Depreciation and amortization                                                                                                                 193                                                                                                209                                                                                                207                                                                                                240                                                                                         849
 Impairment and restructuring charges, and acquisition-related costs                                                                            21                                                                                                 32                                                                                                 37                                                                                                 63                                                                                         153
 Litigation and investigation costs                                                                                           3                                                           12                                                            4                                                            6                                                    25  
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Operating income                                                                                                                               170                                                                                                207                                                                                                211                                                                                                337                                                                                         925
Interest expense                                                                                                                              (182 )                                                                                             (190 )                                                                                             (186 )                                                                                             (196 )                                                                                      (754 )
Loss from early extinguishment of debt                                                                           --                                               --                                                          (24 )                                                                --                                                   (24 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income (loss) from continuing operations, before income taxes                                                                                  (12 )                                                                                               17                                                                                                  1                                                                                                141                                                                                         147
Income tax benefit (expense)                                                                                                  1                                                           (8 )                                                                            18                                                          (60 )                                                                    (49 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income (loss) from continuing operations, before discontinued                                                                                  (11 )                                                                                                9                                                                                                 19                                                                                                 81                                                                                          98
operations
Discontinued operations:
 Loss from operations                                                                                                                           (8 )                                                                                               (7 )                                                                                               (2 )                                                                                   --                                                                                         (17 )
 Litigation and investigation costs                                                                                                 --                                                                                                (18 )                                                                                   --                                                                                     --                                                                                         (18 )
 Income tax benefit                                                                                                           3                                                            9                                                            1                                               --                                                    13  
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net loss from discontinued operations                                                                                        (5 )                                                                           (16 )                                                                            (1 )                                                                --                                                   (22 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net income (loss)                                                                                                                              (16 )                                                                                               (7 )                                                                                               18                                                                                                 81                                                                                          76
 Less: Net income attributable to noncontrolling interests                                                                   16                                                           19                                                            9                                                           20                                                    64  
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                                                    $            (32 )                                                                                 $            (26 )                                                                                 $              9                                                                $             61                                                                $      12  
common shareholders
                                                                                                               ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Amounts attributable to Tenet Healthcare Corporation common
shareholders
 Income (loss) from continuing operations, net of tax                                                                             $            (27 )                                                                                 $            (10 )                                                                                 $             10                                                                                   $             61                                                                                   $      34
 Loss from discontinued operations, net of tax                                                                               (5 )                                                                           (16 )                                                                            (1 )                                                                --                                                   (22 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
 Net income (loss) attributable to Tenet Healthcare Corporation                                                                   $            (32 )                                                                                 $            (26 )                                                                                 $              9                                                                $             61                                                                $      12  
 common shareholders
                                                                                                               ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Net income (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
 Basic
  Continuing operations                                                                                                           $          (0.28 )                                                                                 $          (0.11 )                                                                                 $           0.10                                                                                   $           0.61                                                                                   $    0.35
  Discontinued operations                                                                                                 (0.05 )                                                                         (0.16 )                                                                         (0.01 )                                                                --                                                 (0.23 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                  $          (0.33 )                                                                                 $          (0.27 )                                                                                 $           0.09                                                                $           0.61                                                                $    0.12  
                                                                                                               ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
 Diluted
  Continuing operations                                                                                                           $          (0.28 )                                                                                 $          (0.11 )                                                                                 $           0.10                                                                                   $           0.61                                                                                   $    0.34
  Discontinued operations                                                                                                 (0.05 )                                                                         (0.16 )                                                                         (0.01 )                                                                --                                                 (0.22 )
                                                                                                               -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                  $          (0.33 )                                                                                 $          (0.27 )                                                                                 $           0.09                                                                $           0.61                                                                $    0.12  
                                                                                                               ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
 Weighted average shares and dilutive securities outstanding (in
 thousands):
   Basic                                                                                                                                    97,161                                                                                             97,677                                                                                             98,036                                                                                             98,331                                                                                      97,801
   Diluted                                                                                                                                  97,161                                                                                             97,677                                                                                            100,926                                                                                            101,279                                                                                     100,287
 
 
 
 
 
 
                                                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                                SELECTED STATISTICS - CONTINUING SAME HOSPITALS INCLUDING VANGUARD
                                                                                                                                                                                  (Unaudited)
 
(Dollars in millions except per patient days, per admission and                                                                                               Three Months Ended                                                                                                      Year
per visit amounts)                                                                                                                                                                                                                                                                                                                                                Ended
                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               03/31/14              06/30/14              09/30/14              12/31/14                                                     12/31/14
                                                                                                          ------------------                                          ------------------                                          ------------------                                          ------------------                                          ---------------------
                                                                                                                                                                                                                                                                                                                                                           
Net inpatient revenues                                                                                      $     2,440                                                 $     2,400                                                 $     2,418                                                 $     2,669                                                    $     9,927
Net outpatient revenues                                                                                     $     1,346                                                 $     1,436                                                 $     1,435                                                 $     1,495                                                    $     5,712
                                                                                                                                                                                                                                                                                                                                                           
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                                                                                         1,535,545                                                   1,551,263                                                   1,552,179                                                   1,562,581                                                      6,201,568
Net inpatient revenue per patient day                                                                       $     2,626                                                 $     2,649                                                 $     2,660                                                 $     2,895                                                    $     2,708
Total admissions                                                                                                194,273                                                     194,167                                                     196,609                                                     198,219                                                        783,268
Adjusted patient admissions                                                                                     324,475                                                     335,991                                                     339,853                                                     340,125                                                      1,340,444
Charity and uninsured admissions                                                                                 12,530                                                      10,900                                                      10,774                                                      11,104                                                         45,308
Net inpatient revenue per admission                                                                         $    12,560                                                 $    12,360                                                 $    12,299                                                 $    13,465                                                    $    12,674
Average length of stay (days)                                                                                      4.78                                                        4.67                                                        4.62                                                        4.65                                                           4.68
Total surgeries                                                                                                 162,282                                                     173,463                                                     177,191                                                     181,336                                                        694,272
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                                                                                             1,947,687                                                   2,063,026                                                   2,086,606                                                   2,100,683                                                      8,198,002
Charity and uninsured outpatient visits                                                                         165,248                                                     168,967                                                     165,121                                                     164,746                                                        664,082
Net outpatient revenue per visit                                                                            $       691                                                 $       696                                                 $       688                                                 $       712                                                    $       697
Net patient revenue per adjusted patient admission                                                          $    11,668                                                 $    11,417                                                 $    11,337                                                 $    12,243                                                    $    11,667
Net patient revenue per adjusted patient day                                                                $     2,466                                                 $     2,473                                                 $     2,482                                                 $     2,665                                                    $     2,522
                                                                                                                                                                                                                                                                                                                                                           
Net Patient Revenues from:
   Medicare                                                                                                        22.6 %                                                      22.5 %                                                      21.3 %                                                      20.9 %                                                         21.8 %
   Medicaid                                                                                                         7.7 %                                                       9.9 %                                                       8.8 %                                                      10.9 %                                                          9.4 %
   Managed care                                                                                                    57.8 %                                                      58.0 %                                                      60.8 %                                                      58.1 %                                                         58.6 %
   Indemnity, self-pay and other                                                                                   11.9 %                                                       9.6 %                                                       9.1 %                                                      10.1 %                                                         10.2 %
 
 
 
 
 
 
                                                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                                SELECTED STATISTICS - CONTINUING SAME HOSPITALS INCLUDING VANGUARD
                                                                                                                                                                          PROFORMA FOR FULL YEAR 2013
                                                                                                                                                                                  (Unaudited)
 
(Dollars in millions except per patient days, per admission and                                                                                               Three Months Ended                                                                                                      Year
per visit amounts)                                                                                                                                                                                                                                                                                                                                                Ended
                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               03/31/13              06/30/13              09/30/13              12/31/13                                                     12/31/13
                                                                                                          ------------------                                          ------------------                                          ------------------                                          ------------------                                          ---------------------
                                                                                                                                                                                                                                                                                                                                                           
Net inpatient revenues                                                                                      $     2,404                                                 $     2,436                                                 $     2,439                                                 $     2,372                                                    $     9,651
Net outpatient revenues                                                                                     $     1,295                                                 $     1,346                                                 $     1,345                                                 $     1,357                                                    $     5,343
                                                                                                                                                                                                                                                                                                                                                           
Number of acute care hospitals (at end of period)                                                                    77                                                          77                                                          77                                                          77                                                             77
Licensed beds (at end of period)                                                                                 20,295                                                      20,295                                                      20,295                                                      20,293                                                         20,293
Average licensed beds                                                                                            20,295                                                      20,295                                                      20,295                                                      20,294                                                         14,963
Utilization of licensed beds                                                                                       51.0 %                                                      47.3 %                                                      47.0 %                                                      47.2 %                                                         48.0 %
Patient days - total                                                                               931,291                                                     873,643                                                     876,987                                                     880,737                                                      3,562,658
Adjusted patient days                                                                                         1,525,151                                                   1,479,667                                                   1,485,066                                                   1,481,407                                                      5,971,291
Net inpatient revenue per patient day                                                                       $     2,581                                                 $     2,788                                                 $     2,781                                                 $     2,693                                                    $     2,709
Total admissions                                                                                                196,102                                                     188,789                                                     189,298                                                     190,506                                                        764,695
Adjusted patient admissions                                                                                     323,496                                                     323,000                                                     323,847                                                     325,377                                                      1,295,720
Charity and uninsured admissions                                                                                 13,217                                                      13,931                                                      14,211                                                      14,189                                                         55,548
Net inpatient revenue per admission                                                                         $    12,259                                                 $    12,903                                                 $    12,884                                                 $    12,451                                                    $    12,621
Average length of stay (days)                                                                                      4.75                                                        4.63                                                        4.63                                                        4.62                                                           4.66
Total surgeries                                                                                                 150,716                                                     160,192                                                     161,322                                                     168,730                                                        640,960
Admissions through emergency department                                                                         123,063                                                     117,194                                                     115,666                                                     116,592                                                        472,515
Emergency department visits                                                                                     669,774                                                     666,261                                                     665,129                                                     663,114                                                      2,664,278
Total emergency department admissions and visits                                                                792,837                                                     783,455                                                     780,795                                                     779,706                                                      3,136,793
Outpatient visits                                                                                             1,880,002                                                   1,926,196                                                   1,923,839                                                   1,916,932                                                      7,646,969
Charity and uninsured outpatient visits                                                                         188,112                                                     193,974                                                     195,354                                                     183,586                                                        761,027
Net outpatient revenue per visit                                                                            $       689                                                 $       699                                                 $       699                                                 $       708                                                    $       699
Net patient revenue per adjusted patient admission                                                          $    11,434                                                 $    11,709                                                 $    11,685                                                 $    11,461                                                    $    11,572
Net patient revenue per adjusted patient day                                                                $     2,425                                                 $     2,556                                                 $     2,548                                                 $     2,517                                                    $     2,511
                                                                                                                                                                                                                                                                                                                                                           
Net Patient Revenues from:
   Medicare                                                                                                        24.0 %                                                      22.1 %                                                      22.0 %                                                      21.8 %                                                         22.5 %
   Medicaid                                                                                                         9.3 %                                                      11.7 %                                                      10.7 %                                                       9.3 %                                                         10.2 %
   Managed care                                                                                                    55.9 %                                                      55.0 %                                                      55.5 %                                                      57.7 %                                                         56.0 %
   Indemnity, self-pay and other                                                                                   10.8 %                                                      11.2 %                                                      11.8 %                                                      11.2 %                                                         11.3 %
 
 
 
 
 
 
                                                                                                                                                                     TENET HEALTHCARE CORPORATION
                                                                                                                                                     SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS
                                                                                                                                                                              (Unaudited)
 
(Dollars in millions except per patient days, per admission and                                                                                           Three Months Ended                                                                                                  Year
per visit amounts)                                                                                                                                                                                                                                                                                                                                        Ended
                                                                                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              03/31/14            06/30/14            09/30/14            12/30/14                                                    12/31/14
                                                                                                          ----------------                                          ----------------                                          ----------------                                          ----------------                                          ---------------------
                                                                                                                                                                                                                                                                                                                                                   
Net inpatient revenues                                                                                     $     2,440                                               $     2,393                                               $     2,463                                               $     2,719                                                   $    10,015
Net outpatient revenues                                                                                    $     1,346                                               $     1,448                                               $     1,441                                               $     1,539                                                   $     5,774
                                                                                                                                                                                                                                                                                                                                                   
Number of acute care hospitals (at end of period)                                                                   77                                                        79                                                        80                                                        80                                                            80
Licensed beds (at end of period)                                                                                20,279                                                    20,553                                                    20,762                                                    20,814                                                        20,814
Average licensed beds                                                                                           20,263                                                    20,370                                                    20,692                                                    20,805                                                        20,531
Utilization of licensed beds                                                                                      51.0 %                                                    48.9 %                                                    48.4 %                                                    49.0 %                                                        49.3 %
Patient days - total                                                                              929,164                                                   907,093                                                   921,228                                                   937,803                                                     3,695,288
Adjusted patient days                                                                                        1,535,545                                                 1,553,515                                                 1,574,346                                                 1,592,166                                                     6,255,572
Net inpatient revenue per patient day                                                                      $     2,626                                               $     2,638                                               $     2,674                                               $     2,899                                                   $     2,710
Total admissions                                                                                               194,273                                                   194,641                                                   199,914                                                   202,337                                                       791,165
Adjusted patient admissions                                                                                    324,475                                                   336,844                                                   345,787                                                   347,790                                                     1,354,896
Charity and uninsured admissions                                                                                12,530                                                    10,927                                                    10,990                                                    11,256                                                        45,703
Net inpatient revenue per admission                                                                        $    12,560                                               $    12,294                                               $    12,320                                               $    13,438                                                   $    12,659
Average length of stay (days)                                                                                     4.78                                                      4.66                                                      4.61                                                      4.63                                                          4.67
Total surgeries                                                                                                162,282                                                   173,664                                                   178,439                                                   183,250                                                       697,635
Admissions through emergency department                                                                        122,601                                                   122,086                                                   123,147                                                   127,361                                                       495,195
Emergency department visits                                                                                    665,002                                                   702,009                                                   719,835                                                   737,680                                                     2,824,526
Total emergency department admissions and visits                                                               787,603                                                   824,095                                                   842,982                                                   865,041                                                     3,319,721
Outpatient visits                                                                                            1,947,687                                                 2,066,051                                                 2,125,002                                                 2,145,138                                                     8,283,878
Charity and uninsured outpatient visits                                                                        165,248                                                   169,766                                                   170,022                                                   168,284                                                       673,320
Net outpatient revenue per visit                                                                           $       691                                               $       701                                               $       678                                               $       717                                                   $       697
Net patient revenue per adjusted patient admission                                                         $    11,692                                               $    11,380                                               $    11,290                                               $    12,243                                                   $    11,653
Net patient revenue per adjusted patient day                                                               $     2,482                                               $     2,456                                               $     2,480                                               $     2,674                                                   $     2,524
                                                                                                                                                                                                                                                                                                                                                   
Net Patient Revenues from:
   Medicare                                                                                                       22.6 %                                                    22.5 %                                                    21.5 %                                                    20.9 %                                                        21.9 %
   Medicaid                                                                                                        7.7 %                                                     9.9 %                                                     8.7 %                                                    11.1 %                                                         9.4 %
   Managed care                                                                                                   57.8 %                                                    58.0 %                                                    60.7 %                                                    57.9 %                                                        58.6 %
   Indemnity, self-pay and other                                                                                  11.9 %                                                     9.6 %                                                     9.1 %                                                    10.1 %                                                        10.1 %
 
 
 
 
 
 
                                                                                                                                                                                    TENET HEALTHCARE CORPORATION
                                                                                                                                                                                          SEGMENT REPORTING
                                                                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                            December 31,                                           December 31,
                                                                                                                                                                                                                                                                                                2014                                                                      2013
                                                                                                                                                                                                                                                                      ---------------------------------------------------------                     -------------------------------------------------
Assets
 Hospital Operations and other                                                                                                                                                                                                                                                           $         17,212                                                              $ 15,865
 Conifer                                                                                                                                                                                                                                                                           929                             585  
                                                                                                                                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Total                                                                                                                                                                                                                                                                                   $         18,141                                           $ 16,450  
                                                                                                                                                                                                                                                                      ==================== ============== ====================                      ==================== ====== ====================
 
 
                                                                                                                    Three Months Ended                                                                                                                                                    Year Ended
                                                                                                                                                             December 31,                                                                                                                                                      December 31,
                                                                                                          ------------------------------------------------------------------------------------------------------------                                                ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    2014                                             2013                                                                                    2014                                                                      2013
                                                                                                          ---------------------------------------------------------                     ------------------------------------                                          ---------------------------------------------------------                     -------------------------------------------------
Capital expenditures:
 Hospital Operations and other                                                                                               $            191                                                    $ 283                                                                                   $            908                                                              $    670
 Conifer                                                                                                                 8                                    10                                                           25                              21  
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Total                                                                                                                       $            199                                 $ 293                                                                $            933                                           $    691  
                                                                                                          ==================== ============== ====================                      ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                     
Net operating revenues:
 Hospital Operations and other                                                                                               $          4,306                                                  $ 3,747                                                                                   $         16,013                                                              $ 10,587
 Conifer
   Tenet                                                                                                                                  165                                                      126                                                                                                591                                                                   404
   Other customers                                                                                                     162                                   138                                                          602                             515  
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
                                                                                                                                        4,633                                                    4,011                                                                                             17,206                                                                11,506
 Intercompany eliminations                                                                                            (165 )                                                   (126 )                                                                          (591 )                                             (404 )
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Total                                                                                                                       $          4,468                               $ 3,885                                                                $         16,615                                           $ 11,102  
                                                                                                          ==================== ============== ====================                      ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                     
Adjusted EBITDA:
 Hospital Operations and other                                                                                               $            582                                                    $ 408                                                                                   $          1,749                                                              $  1,210
 Conifer                                                                                                                64                                    36                                                          203                             132  
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Total                                                                                                                       $            646                                 $ 444                                                                $          1,952                                           $  1,342  
                                                                                                          ==================== ============== ====================                      ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                     
Depreciation and amortization:
 Hospital Operations and other                                                                                               $            230                                                    $ 187                                                                                   $            824                                                              $    526
 Conifer                                                                                                                10                                     4                                                           25                              19  
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Total                                                                                                                       $            240                                 $ 191                                                                $            849                                           $    545  
                                                                                                          ==================== ============== ====================                      ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                     
Adjusted EBITDA                                                                                                              $            646                                                    $ 444                                                                                   $          1,952                                                              $  1,342
 Depreciation and amortization                                                                                                           (240 )                                                   (191 )                                                                                             (849 )                                                                (545 )
                                                                                                                                          (63 )                                                    (58 )                                                                                             (153 )                                                                (103 )
 Impairments and restructuring charges, and acquisition-related
 costs
 Litigation and investigation costs                                                                                                        (6 )                                                    (28 )                                                                                              (25 )                                                                 (31 )
 Interest expense                                                                                                                        (196 )                                                   (182 )                                                                                             (754 )                                                                (474 )
 Loss from early extinguishment of debt                                                                                        --                                           --                                                                                                (24 )                                                                (348 )
 Investment earnings                                                                                        --                        --                                               --                               1  
                                                                                                          -------------------- -------------- --------------------                      -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
 Income (loss) from continuing operations before income taxes                                                                $            141                                 $ (15 )                                                                                 $            147                                           $   (158 )
                                                                                                          ==================== ============== ====================                      ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
 
 
 
 
 

(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 twelve months ended December 31, 2014 and 2013.

For certain pro financial information of the Company as if the Vanguard acquisition had occurred at January 1, 2013, see Note 19 of the notes to the consolidated financial statements in the Company’s Form 10-K for the year ended December 31, 2014.

 
 
 
                                                                                                                                                                                                     TENET HEALTHCARE CORPORATION
                                                                                                                                                                                             Additional Supplemental Non-GAAP Disclosures
                                                                                                                                                                                   Table #1 - Reconciliation of Adjusted EBITDA to Net Income (Loss)
                                                                                                                                                                                   Attributable to Tenet Healthcare Corporation Common Shareholders
                                                                                                                                                                                                              (Unaudited)
 
(Dollars in millions)                                                                                                                      Three Months Ended                                                                                                                         Year Ended
                                                                                                                                                                                    December 31,                                                                                                                                                                 December 31,
                                                                                                                       --------------------------------------------------------------------------------------------------------------------------------                                                 ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2014                                                       2013                                                                                               2014                                                   2013
                                                                                                                       ---------------------------------------------------------                     ---------------------------------------------------------                                          ---------------------------------------------------------                     -------------------------------------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                                                            $             61                                                              $            (24 )                                                                                 $             12                                                              $   (134 )
common shareholders
Less: Net (income) attributable to noncontrolling interests                                                                                            (20 )                                                                         (10 )                                                                                              (64 )                                                                 (30 )
       Loss from discontinued operations, net of tax                                                                     --                                      (7 )                                                                           (22 )                                              (11 )
                                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
       Income (loss) from continuing operations                                                                                                         81                                                                            (7 )                                                                                               98                                                                   (93 )
       Income tax benefit (expense)                                                                                                                    (60 )                                                                           8                                                                                                (49 )                                                                  65
       Investment earnings                                                                                                                  --                                                                --                                                                                     --                                                                     1
       Loss from early extinguishment of debt                                                                                               --                                                                --                                                                                                (24 )                                                                (348 )
       Interest expense                                                                                                            (196 )                                                     (182 )                                                                          (754 )                                             (474 )
                                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
         Operating income                                                                                                                              337                                                                           167                                                                                                925                                                                   663
       Litigation and investigation costs                                                                                                               (6 )                                                                         (28 )                                                                                              (25 )                                                                 (31 )
       Impairment and restructuring charges, and acquisition-related costs                                                                             (63 )                                                                         (58 )                                                                                             (153 )                                                                (103 )
       Depreciation and amortization                                                                                               (240 )                                                     (191 )                                                                          (849 )                                             (545 )
                                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
Adjusted EBITDA                                                                                                                           $            646                                           $            444                                                                $          1,952                                           $  1,342  
                                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                       
Net operating revenues                                                                                                                    $          4,468                                           $          3,885                                                                $         16,615                                           $ 11,102  
                                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                       
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA                                                                                       14.5 %                                                                        11.4 %                                                                                             11.7 %                                                                12.1 %
margin)
 
 
 
 
 
                                                                                                                                                                                                     TENET HEALTHCARE CORPORATION
                                                                                                                                                                                             Additional Supplemental Non-GAAP Disclosures
                                                                                                                                                                                         Table #2 - Reconciliation of Adjusted Free Cash Flow
                                                                                                                                                                                                              (Unaudited)
 
(Dollars in millions)                                                                                                                                                            Three Months Ended                                                                                                                                                               Year Ended
                                                                                                                                                                                    December 31,                                                                                                                                                                 December 31,
                                                                                                                       --------------------------------------------------------------------------------------------------------------------------------                                                 ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2014                                                                          2013                                                                                               2014                                                                      2013
                                                                                                                       ---------------------------------------------------------                     ---------------------------------------------------------                                          ---------------------------------------------------------                     -------------------------------------------------
Net cash provided by operating activities                                                                                                 $            219                                                              $            255                                                                                   $            687                                                              $    589
Less:
                                                                                                                                                       (53 )                                                                         (78 )                                                                                             (168 )                                                                (114 )
    Payments for restructuring charges, acquisition-related costs, and
    litigation costs and settlements
    Net cash provided by (used in) operating activities from                                                                         (7 )                                                      (10 )                                                                           (23 )                                              (15 )
    discontinued operations
                                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
Adjusted net cash provided by operating activities - continuing                                                                           279                                                                           343                                                                                                878                                                                   718
operations
    Purchases of property and equipment - continuing operations                                                       (199 )                                                     (293 )                                                                          (933 )                                             (691 )
                                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------ --------------------
Adjusted free cash flow - continuing operations                                                                              $             80                                           $             50                                                                $            (55 )                                                            $    (27 )
                                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                                           ==================== ============== ====================                      ==================== ====== ====================
 
 
 
 
                                                                                                                                                                                       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)                                                                                                                 Q1 2015                                                                                                                    2015
                                                                                                                     ---------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Low                                              High                                                                                       Low                                               High
                                                                                                                     ------------------------------------------------                     ------------------------------------------------                                          -------------------------------------------------                     -------------------------------------------------
Net income attributable to Tenet Healthcare Corporation common                                                                          $     3                                                              $    55                                                                                   $    130                                                              $    245
shareholders
Less: Net (income) attributable to noncontrolling interests                                                                                 (30 )                                                                (25 )                                                                                     (120 )                                                                (100 )
       Loss from discontinued operations, net of tax                                                                      (2 )                                               0                                                   (5 )                                                0  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ----- --------------------                                           -------------------- ------ --------------------                      -------------------- ------ --------------------
       Income from continuing operations                                                                                                $    35                                                              $    80                                                                                   $    255                                                              $    345
       Income tax (expense)                                                                                              (10 )                                             (45 )                                                                   (95 )                                             (175 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ----- --------------------                                           -------------------- ------ --------------------                      -------------------- ------ --------------------
         Income from continuing operations, before income taxes                                                                         $    45                                                              $   125                                                                                   $    350                                                              $    520
       Interest expense, net                                                                                            (200 )                                            (190 )                                                                  (800 )                                             (770 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ----- --------------------                                           -------------------- ------ --------------------                      -------------------- ------ --------------------
         Operating income                                                                                                               $   245                                                              $   315                                                                                   $  1,150                                                              $  1,290
       Impairment and restructuring charges, acquisition-related costs and                                                                    0                                                                    0                                                                                          0                                                                     0
       litigation costs and settlements(a)
       Depreciation and amortization                                                                                    (230 )                                            (210 )                                                                  (900 )                                             (860 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ----- --------------------                                           -------------------- ------ --------------------                      -------------------- ------ --------------------
Adjusted EBITDA                                                                                                                         $   475                                           $   525                                                                $  2,050                                           $  2,150  
                                                                                                                     ==================== ===== ====================                      ==================== ===== ====================                                           ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                           
Net operating revenues                                                                                                                  $ 4,300                                           $ 4,500                                                                $ 17,400                                           $ 17,700  
                                                                                                                     ==================== ===== ====================                      ==================== ===== ====================                                           ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                           
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA                                                                            11.0 %                                                               11.7 %                                                                                     11.8 %                                                                12.1 %
margin)
 
(a) Company does not forecast impairment and
restructuring charges, acquisition-related 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)                                                                                                               Q1 2015                                                                                                                   2015
                                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------
                                                                                                                                          Low                                             High                                                                    Low                                              High
                                                                                                                    -----------------------------------------------                     -----------------------------------------------                                          ------------------------------------------------                     -------------------------------------------------
Adjusted EBITDA                                                                                                                        $  475                                                              $  525                                                                                   $ 2,050                                                              $  2,150
    Depreciation and amortization                                                                                                        (230 )                                                              (210 )                                                                                    (900 )                                                                (860 )
    Interest expense, net                                                                                             (200 )                                           (190 )                                                                 (800 )                                             (770 )
                                                                                                                    -------------------- ---- --------------------                      -------------------- ---- --------------------                                           -------------------- ----- --------------------                      -------------------- ------ --------------------
       Income from continuing operations before income taxes                                                                           $   45                                                              $  125                                                                                   $   350                                                              $    520
    Income tax (expense)                                                                                               (10 )                                            (45 )                                                                  (95 )                                             (175 )
                                                                                                                    -------------------- ---- --------------------                      -------------------- ---- --------------------                                           -------------------- ----- --------------------                      -------------------- ------ --------------------
       Normalized income from continuing operations                                                                                    $   35                                                              $   80                                                                                   $   255                                                              $    345
    Net (income) attributable to noncontrolling interests                                                              (30 )                                            (25 )                                                                 (120 )                                             (100 )
                                                                                                                    -------------------- ---- --------------------                      -------------------- ---- --------------------                                           -------------------- ----- --------------------                      -------------------- ------ --------------------
Net income attributable to common shareholders                                                                           5                            55                                                 135                             245  
                                                                                                                    ==================== ==== ====================                      ==================== ==== ====================                                           ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
    Fully diluted weighted average share outstanding (in millions)                                                                        100                                                                 100                                                                                       102                                                                   102
                                                                                                                                                                                                                                                                                                                                                       
    Normalized fully diluted earnings per share - continuing                                                              $ 0.05                                                              $ 0.55                                                                                   $  1.32                                                              $   2.40
    operations
 
 
 
 
                                                                                      TENET HEALTHCARE CORPORATION
                                                                              Additional Supplemental Non-GAAP Disclosures
                                                                      Table #5 - Reconciliation of Outlook Adjusted Free Cash Flow
                                                                                  for the Year Ending December 31, 2015
                                                                                               (Unaudited)
 
(Dollars in millions)                                                                                                  2015
                                                                                                                       ---------------------------------------------------------------------------------
                                                                                                                                     Low                            High
                                                                                                                       ------------------------------                     ------------------------------
Net cash provided by operating activities                                                                                                 $  1,130                                           $  1,240
Less:
                                                                                                                                                 0                                                  0
    Payments for restructuring charges, acquisition-related costs and
    litigation costs and settlements((a))
    Net cash used in operating activities from discontinued operations                                                      (20 )                           (10 )
                                                                                                                       -------------------- ------ -                      -------------------- ------ -
Adjusted net cash provided by operating activities - continuing                                                              $  1,150                                           $  1,250
operations
    Purchases of property and equipment - continuing operations                                             (1,000 )                          (900 )
                                                                                                                       -------------------- ------ -                      -------------------- ------ -
Adjusted free cash flow - continuing operations                                                                              $    150                                           $    350
 
(a) Company does not forecast impairment and
restructuring charges, acquisition-related and litigation costs
and settlements
 
 
 
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150223006455r1&sid=cmtx6&distro=nx&lang=en

SOURCE: Tenet Healthcare Corporation

Tenet Healthcare Corporation 
Corporate Communications: 
Steven Campanini, 469-893-2640 
mediarelations@tenethealth.com 
or 
Investor Relations: 
Thomas Rice, 469-893-6992 
investorrelations@tenethealth.com


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