Tenet Healthcare Corporation (THC) saw its loss narrow to $79 million, or $0.79 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $97 million, or $0.98 a share. On the other hand, adjusted net income for the quarter stood at $6 million, or $0.06 a share compared with $35 million or $0.35 a share, a year ago.
Revenue during the quarter dropped 3.30 percent to $4,860 million from $5,026 million in the previous year period. Total expenses were 94.40 percent of quarterly revenues, up from 93.73 percent for the same period last year. That has resulted in a contraction of 67 basis points in operating margin to 5.60 percent.
Operating income for the quarter was $272 million, compared with $315 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $613 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 42 basis points in the quarter to 12.61 percent from 12.20 percent in the last year period.
Trevor Fetter, chairman and chief executive officer, stated, "Demand for higher acuity services in our hospitals drove growth in same-hospital patient revenue and revenue per adjusted admission in the fourth quarter. Our Ambulatory and Conifer Health businesses delivered strong revenue and Adjusted EBITDA growth. Our expectations for continued growth in 2017 reflect confidence in our strategy to strengthen our hospital portfolio, expand our network of ambulatory facilities, and solidify Conifer’s leadership in healthcare business services."
For the first-quarter, Tenet Healthcare Corporation expects revenue to be in the range of $4,750 million to $4,950 million. It forecasts net loss to be in the range of $60 million to $45 million. It projects adjusted net loss to be in the range of $60 million to $45 million. The company expects operating income to be in the range of $260 million to $300 million. The company forecasts diluted loss per share to be in the range of $0.60 to $0.45. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.60 to $0.45.
For fiscal year 2017, Tenet Healthcare Corporation expects revenue to be in the range of $19,700 million to $20,100 million. It forecasts net income to be in the range of $107 million to $133 million. It projects adjusted net income to be in the range of $107 million to $133 million, the company expects operating income to be in the range of $1,640 million to $1,720 million, the company projects diluted earnings per share to be in the range of $1.05 to $1.30, the company projects diluted earnings per share to be in the range of $1.05 to $1.30 on adjusted basis.
Operating cash flow drops significantlyTenet Healthcare Corporation has generated cash of $558 million from operating activities during the year, down 45.61 percent or $468 million, when compared with the last year. The company has spent $430 million cash to meet investing activities during the year as against cash outgo of $1,317 million in the last year.
Cash flow from financing activities was $232 million for the year, down 48.90 percent or $222 million, when compared with the last year.
Cash and cash equivalents stood at $716 million as on Dec. 31, 2016, up 101.12 percent or $360 million from $356 million on Dec. 31, 2015.
Working capital increases sharply
Tenet Healthcare Corporation has recorded an increase in the working capital over the last year. It stood at $1,223 million as at Dec. 31, 2016, up 41.71 percent or $360 million from $863 million on Dec. 31, 2015. Current ratio was at 1.30 as on Dec. 31, 2016, up from 1.20 on Dec. 31, 2015.
Days sales outstanding went up to 27 days for the quarter compared with 25 days for the same period last year.
Debt moves upTenet Healthcare Corporation has witnessed an increase in total debt over the last one year. It stood at $15,255 million as on Dec. 31, 2016, up 5.13 percent or $745 million from $14,510 million on Dec. 31, 2015. Total debt was 61.76 percent of total assets as on Dec. 31, 2016, compared with 61.27 percent on Dec. 31, 2015. Debt to equity ratio was at 14.10 as on Dec. 31, 2016, down from 15.15 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.09 for the quarter from 1.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
