Upcoming AWS Coverage on Nobilis Health Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 15, 2017 / Active Wall St. announces its post-earnings coverage on Tenet Healthcare Corp. (NYSE: THC). The Company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on February 27, 2017. The Dallas, Texas-based Company's net operating revenues and adjusted net income from continuing operations were down on a year-over-year basis. Register with us now for your free membership at:

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One of Tenet Healthcare's competitors within the Hospitals space, Nobilis Health Corp. (NYSE MKT: HLTH), released its Q4 and full year 2016 financials, prior to market open, on Monday, March 13, 2017. AWS will be initiating a research report on Nobilis Health in the coming days.

Today, AWS is promoting its earnings coverage on THC; touching on HLTH. Get our free coverage by signing up to:

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Earnings Reviewed

During the quarter ended on December 31, 2016, Tenet reported net operating revenues of $4.86 billion compared to $5.03 billion recorded at the end of Q4 FY15. Net operating revenues numbers for Q4 FY16 lagged behind market consensus estimates of $4.97 billion.

The hospital operator's net loss attributable to Tenet from continuing operations narrowed to $79 million, or $0.79 loss per diluted share, in Q4 FY16 from net loss attributable to Tenet from continuing operations of $100 million, or $1.01 loss per diluted share, in Q4 FY15. The Company's adjusted net income from continuing operations came in at $6 million, or $0.06 per diluted share, in Q4 FY16 compared to $35 million, or $0.35 per diluted share, in Q4 FY15. Wall Street had expected the Company to report adjusted net income from continuing operations of $0.20 per diluted share.

In FY16, Tenet's net operating revenues came in at $19.62 billion compared to $18.63 billion in FY15. The Company reported net loss attributable to Tenet from continuing operations of $187 million, or $1.88 loss per diluted share, in FY16 versus net loss attributable to Tenet from continuing operations of $142 million, or $1.43 per diluted share, in FY15. Additionally, adjusted net income from continuing operations for FY16 stood at $105 million, or $1.04 per diluted share, compared to $208 million, or $2.05 per diluted share, in FY15.

Operational Metrics

For the reported quarter, the Company's operating income came in at $272 million, or 5.6% of net operating revenues, compared to $315 million, or 6.3% of net operating revenues, in Q4 FY15. The Company reported adjusted EBITDA of $613 million in both Q4 FY16 and in the last year's comparable quarter. Additionally, adjusted EBITDA margin as a percentage of net operating revenues for Q4 FY16 was 12.6%, up 40 basis points from the same period last year.

Segment-wise

Tenet's Hospital Operations & Other segment reported net operating revenues of $4.14 billion in Q4 FY16 compared to $4.42 billion in Q4 FY15. The segment's adjusted EBITDA came in at $358 million in Q4 FY16 compared to $394 million in the previous year's same quarter. Additionally, same-hospital patient revenue grew 3.2% y-o-y in Q4 FY16, reflecting a 3.7% y-o-y increase in revenue per adjusted admission, which was partially offset by a 0.5% y-oy decline in adjusted admissions.

Ambulatory Care segment's revenues rose 20.4% to $478 million in Q4 FY16 from $397 million in the previous year's corresponding quarter. Furthermore, the segment reported adjusted EBITDA of $183 million in Q4 FY16, up 15.8% from $158 million in the prior year's comparable quarter.

The Company's Conifer Health Solutions segment's revenues improved 4.7% during Q4 FY16 to $402 million from $384 million in Q4 FY15. The segment's revenue growth was driven by a 16% y-o-y growth in revenue from non-Tenet customers. During the reported quarter, the segment's adjusted EBIDTA came in at $72 million, or 17.9% of segment's revenue, compared to $61 million, or 15.9% of the segment's revenues, in Q4 FY15.

Cash Flow & Balance Sheet

During Q4 FY16, the Company used $293 million in its operating activities compared to net cash provided by operating activities of $191 million in the prior year's same quarter. Furthermore, the Company's reported negative free cash flow of $554 million in Q4 FY16 compared to negative free cash flow of $85 million in Q4 FY15. At the close of books on December 31, 2016, Tenet had $716 million in cash and cash equivalents compared to $356 million at the close of books on December 31, 2015. The Company's long-term debt increased in the reported year, which stood at $15.06 billion as on December 31, 2016, compared to $14.38 billion as on December 31, 2015.

Outlook

In its guidance for FY17, Tenet's management expects net operating revenues in the range of $19.70 billion to $20.10 billion. Adjusted EBIDTA is anticipated to be between $2.50 billion and $2.60 billion with adjusted EBITDA margin in the range of 12.7% to 12.9%. The Company forecasts adjusted diluted EPS from continuing operations for FY17 to be between $1.05 and $1.30. Furthermore, adjusted free cash flow for FY17 is projected to be in the range of $600 million to $800 million.

Stock Performance

At the close of trading session on Tuesday, March 14, 2017, Tenet Healthcare's stock price fell 3.27% to end the day at $18.02. A total volume of 3.69 million shares were exchanged during the session, which was above the 3-month average volume of 3.05 million shares. The Company's share price has rallied 18.71% in the past three months and 21.43% on YTD basis. The stock currently has a market cap of $1.90 billion.

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SOURCE: Active Wall Street