Tenet Healthcare Corporation (THC) saw its loss narrow to $53 million, or $0.53 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $59 million, or $0.60 a share. On an adjusted basis, net loss for the quarter stood at $27 million, or $0.27 a share compared with a net profit of $45 million, or $0.45 a share in the last year period.
Revenue during the quarter dropped 4.58 percent to $4,813 million from $5,044 million in the previous year period. Total expenses were 94.45 percent of quarterly revenues, up from 92.98 percent for the same period last year. That has resulted in a contraction of 147 basis points in operating margin to 5.55 percent.
Operating income for the quarter was $267 million, compared with $354 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $527 million compared with $617 million in the prior year period. At the same time, adjusted EBITDA margin contracted 128 basis points in the quarter to 10.95 percent from 12.23 percent in the last year period.
"In the first quarter, we achieved strong financial results, delivering Adjusted EBITDA that was at the high end of our Outlook range," said Trevor Fetter, chairman and chief executive officer. "Today, we announced that we have reached a new agreement with Humana that we believe is in the best interests of both companies and our shared customers. We also completed the sale of the majority of our home health and hospice businesses, sold our Managed Medicaid plan in Arizona, and entered into a definitive agreement to sell three acute care hospitals and related operations in Houston. In addition, we announced that we are increasing our ownership of USPI to 80% this year. These actions are part of a strategic effort to reduce complexity across the enterprise and enhance returns for our shareholders."
For the second-quarter 2017, Tenet Healthcare Corp forecasts revenue to be in the range of $4.85 million to $5.05 million. The company projects net loss to be in the range of $30 million to $25 million. The company expects diluted loss per share to be in the range of $0.30 to $0.25. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.20 to $0.10.
For financial year 2017, Tenet Healthcare Corp forecasts revenue to be in the range of $19.70 million to $20.10 million. The company projects net income to be in the range of $71 million to $95 million. The company expects diluted earnings per share to be in the range of $0.70 to $0.93. The company expects diluted earnings per share to be in the range of $1.05 to $1.30 on adjusted basis.
Operating cash flow improves significantly Tenet Healthcare Corp has generated cash of $186 million from operating activities during the quarter, up 26.53 percent or $39 million, when compared with the last year period.
The company has spent $189 million cash to meet investing activities during the quarter as against cash inflow of $320 million in the last year period.
The company has spent $141 million cash to carry out financing activities during the quarter as against cash outgo of $95 million in the last year period.
Cash and cash equivalents stood at $572 million as on Mar. 31, 2017, down 21.43 percent or $156 million from $728 million on Mar. 31, 2016.
Working capital increases sharply
Tenet Healthcare Corp has recorded an increase in the working capital over the last year. It stood at $1,285 million as at Mar. 31, 2017, up 49.25 percent or $424 million from $861 million on Mar. 31, 2016. Current ratio was at 1.34 as on Mar. 31, 2017, up from 1.20 on Mar. 31, 2016.
Days sales outstanding went up to 53 days for the quarter compared with 50 days for the same period last year.
Debt moves up marginally Tenet Healthcare Corp has witnessed an increase in total debt over the last one year. It stood at $15,218 million as on Mar. 31, 2017, up 4.79 percent or $696 million from $14,522 million on Mar. 31, 2016. Total debt was 62.09 percent of total assets as on Mar. 31, 2017, compared with 61.10 percent on Mar. 31, 2016. Debt to equity ratio was at 13.91 as on Mar. 31, 2017, down from 15.68 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.03 for the quarter from 1.46 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: [email protected]
