TENET HEALTHCARE CORP

For the period ended Sep 30, 2024. Filed Oct 29, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Oct 29, 2024

THC$289.00+2.0%Stored close · as of Nov 9, 2026

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Contents

Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

Dollars in Millions, Share Amounts in Thousands

	September 30,	December 31,
	2024	2023
ASSETS
Current assets:
Cash and cash equivalents	$4,094	$1,228
Accounts receivable	2,598	2,914
Inventories of supplies, at cost	356	411
Assets held for sale	20	775
Other current assets	1,691	1,839
Total current assets	8,759	7,167
Investments and other assets	3,064	3,157
Deferred income taxes	36	77
Property and equipment, at cost, less accumulated depreciation and amortization ($5,714 at September 30, 2024 and $6,478 at December 31, 2023)	5,552	6,236
Goodwill	10,588	10,307
Other intangible assets, at cost, less accumulated amortization ($1,322 at September 30, 2024 and $1,447 at December 31, 2023)	1,373	1,368
Total assets	$29,372	$28,312
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$95	$120
Accounts payable	1,265	1,408
Accrued compensation and benefits	879	930
Professional and general liability reserves	286	254
Accrued interest payable	248	200
Liabilities held for sale	12	69
Income tax payable	826	23
Other current liabilities	1,927	1,756
Total current liabilities	5,538	4,760
Long-term debt, net of current portion	12,776	14,882
Professional and general liability reserves	855	792
Defined benefit plan obligations	308	335
Deferred income taxes	260	326
Other long-term liabilities	1,560	1,709
Total liabilities	21,297	22,804
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries	2,649	2,391
Equity:
Shareholders’ equity:
Common stock, $0.05 par value; authorized 262,500 shares; 157,982 shares issued at September 30, 2024 and 157,271 shares issued at December 31, 2023	8	8
Additional paid-in capital	4,849	4,834
Accumulated other comprehensive loss	(175)	(181)
Retained earnings (accumulated deficit)	2,690	(192)
Common stock in treasury, at cost, 62,899 shares at September 30, 2024 and 57,321 shares at December 31, 2023	(3,538)	(2,861)
Total shareholders’ equity	3,834	1,608
Noncontrolling interests	1,592	1,509
Total equity	5,426	3,117
Total liabilities and equity	$29,372	$28,312

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in Millions, Except Per-Share Amounts

	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
	2024	2023	2024	2023
Net operating revenues	$5,122	$5,066	$15,593	$15,169
Grant income	4	3	9	14
Equity in earnings of unconsolidated affiliates	62	51	182	155
Operating expenses:
Salaries, wages and benefits	2,218	2,288	6,707	6,831
Supplies	881	877	2,717	2,659
Other operating expenses, net	1,111	1,101	3,413	3,319
Depreciation and amortization	209	224	625	654
Impairment and restructuring charges, and acquisition-related costs	19	47	75	84
Litigation and investigation costs	9	14	18	28
Net losses (gains) on sales, consolidation and deconsolidation of facilities	(348)	1	(2,906)	(12)
Operating income	1,089	568	5,135	1,775
Interest expense	(202)	(227)	(623)	(674)
Other non-operating income, net	35	4	89	8
Loss from early extinguishment of debt	—	—	(8)	(11)
Income before income taxes	922	345	4,593	1,098
Income tax expense	(241)	(79)	(1,101)	(243)
Net income	681	266	3,492	855
Less: Net income available to noncontrolling interests	209	165	610	488
Net income available to Tenet Healthcare Corporation common shareholders	$472	$101	$2,882	$367
Earnings per share available to Tenet Healthcare Corporation common shareholders:
Basic earnings per share	$4.93	$0.99	$29.56	$3.60
Diluted earnings per share	$4.89	$0.94	$29.27	$3.41
Weighted average shares and dilutive securities outstanding (in thousands):
Basic	95,665	101,544	97,505	101,869
Diluted	96,652	104,425	98,518	105,021

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

Dollars in Millions

	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
	2024	2023	2024	2023
Net income	$681	$266	$3,492	$855
Other comprehensive income:
Amortization of net actuarial loss included in other non-operating income, net	2	1	6	5
Unrealized gain on debt securities held as available-for-sale	2	—	2	—
Foreign currency translation adjustments and other	(1)	1	—	1
Other comprehensive income before income taxes	3	2	8	6
Income tax expense related to items of other comprehensive income	(1)	—	(2)	(1)
Total other comprehensive income, net of tax	2	2	6	5
Comprehensive net income	683	268	3,498	860
Less: Comprehensive income available to noncontrolling interests	209	165	610	488
Comprehensive income available to Tenet Healthcare Corporation common shareholders	$474	$103	$2,888	$372

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in Millions

	Nine Months Ended September 30,
	2024	2023
Net income	$3,492	$855
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	625	654
Deferred income tax expense (benefit)	(29)	75
Stock-based compensation expense	52	48
Impairment and restructuring charges, and acquisition-related costs	75	84
Litigation and investigation costs	18	28
Net gains on sales, consolidation and deconsolidation of facilities	(2,906)	(12)
Loss from early extinguishment of debt	8	11
Equity in earnings of unconsolidated affiliates, net of distributions received	(9)	5
Amortization of debt discount and debt issuance costs	21	25
Net gains from the sale of investments and long-lived assets	(2)	(25)
Other items, net	(3)	(1)
Changes in cash from operating assets and liabilities:
Accounts receivable	183	31
Inventories and other current assets	10	(49)
Income taxes	821	(46)
Accounts payable, accrued expenses and other current liabilities	123	(38)
Other long-term liabilities	18	10
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements	(119)	(105)
Net cash provided by operating activities	2,378	1,550
Cash flows from investing activities:
Purchases of property and equipment	(601)	(543)
Purchases of businesses or joint venture interests, net of cash acquired	(524)	(110)
Proceeds from sales of facilities and other assets	4,965	38
Proceeds from sales of marketable securities and long-term investments	25	40
Purchases of marketable securities and long-term investments	(46)	(54)
Other items, net	(18)	(7)
Net cash provided by (used in) investing activities	3,801	(636)
Cash flows from financing activities:
Repayments of borrowings	(2,212)	(1,478)
Proceeds from borrowings	16	1,368
Repurchases of common stock	(672)	(90)
Debt issuance costs	—	(16)
Distributions paid to noncontrolling interests	(496)	(425)
Proceeds from the sale of noncontrolling interests	13	37
Purchases of noncontrolling interests	(127)	(127)
Advances from managed care payers	342	—
Repayments of advances from managed care payers	(160)	—
Other items, net	(17)	13
Net cash used in financing activities	(3,313)	(718)
Net increase in cash and cash equivalents	2,866	196
Cash and cash equivalents at beginning of period	1,228	858
Cash and cash equivalents at end of period	$4,094	$1,054
Supplemental disclosures:
Interest paid, net of capitalized interest	$(555)	$(589)
Income tax payments, net	$(308)	$(212)

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.