Tenet Healthcare has reported a net income of $97m from continuing operations available to common shareholders in the first quarter of 2021, an increase of 3% from the same period of the previous year.
The 2020 quarter included a $91m income tax benefit related to a change in the deductibility of interest expense.
Consolidated adjusted EBITDA in this year’s first quarter stood at $740m. This figure, however, excludes $37m Covid-19 stimulus grant income. The consolidated adjusted EBITDA during last year’s first quarter figured at $585m.
The diluted earnings per share from continuing operations available to common shareholders was $0.90 in Q1 2021 as against $0.89 in Q1 of 2020, while adjusted diluted earnings per share from continuing operations was $1.30 this year’s quarter compared to $1.28 in last year’s quarter.
The first quarter of 2021 saw net cash from operating activities to be at $534m as against $129m last year.
Tenet reported free cash flow of $413m in Q1 2021.
The company’s hospital segment net patient service revenue per adjusted admission was up 19.3% on a same-hospital basis versus Q1 2020, while its ambulatory segment same-facility system-wide revenue per surgical case grew 4.8% in this year’s quarter.
It completed early retirement of $478m of 7% senior unsecured debt in March 2021, which has led to annual cash interest payment savings of around $33m.
It also signed new multi-year agreement with UnitedHealthcare four months before the scheduled renewal date.
The company raised its outlook for 2021 and continues to anticipate recovery from the pandemic and growth from operational improvements.
It expects net income from continuing operations available to common shareholders to be $2.98 to $4.69 per diluted share; earlier, this was expected to be in the range of $2.09 to $3.81 per diluted share.
It announced the adjusted EBITDA outlook of $3bn to $3.2bn against the earlier $2.9bn to $3.1bn, while the adjusted diluted earnings per share outlook is in the range of $4.12 to $5.46 against the earlier $3.52 to $4.81 per diluted share.