On October 30, 2023, Tenet Healthcare Corp (THC, Financial) announced its Q3 2023 results, reporting a net income from continuing operations available to common shareholders of $101 million, or $0.94 per diluted share. The company's adjusted diluted earnings per share from continuing operations was $1.44 in the same quarter. The consolidated Adjusted EBITDA for Q3 2023 was $854 million, which included $3 million of grant income. The company also reported net cash provided by operating activities of $503 million and a free cash flow of $327 million.
Financial Performance Overview
THC's net operating revenues for Q3 2023 were $5,066 million, up from $4,801 million in Q3 2022. The net income available to THC common shareholders from continuing operations was $101 million, down from $131 million in Q3 2022. The adjusted EBITDA excluding grant income in Q3 2023 was $851 million, up from $787 million in Q3 2022.
Balance Sheet and Cash Flows
For the nine months ended September 30, 2023, the cash flows provided by operating activities were $1.550 billion, up from $662 million for the same period in 2022. The company produced free cash flow of $1.007 billion for the nine months ended September 30, 2023, up from $190 million for the same period in 2022. As of September 30, 2023, the company had no outstanding borrowings on its $1.5 billion line of credit.
Segment Performance
The Ambulatory Care segment reported net operating revenues of $941 million in Q3 2023, up from $806 million in Q3 2022. The Hospital Operations segment reported net operating revenues of $3,919 million in Q3 2023, up from $3,778 million in Q3 2022. The Conifer segment reported net operating revenues of $315 million in Q3 2023, down from $333 million in Q3 2022.
2023 Outlook
THC has increased its FY 2023 Adjusted EBITDA Outlook, now expected to be in the range of $3.365 billion to $3.465 billion. The company's net operating revenues for FY 2023 are expected to be between $20,300 million to $20,500 million.
Explore the complete 8-K earnings release (here) from Tenet Healthcare Corp for further details.
