Tuesday, Tenet Healthcare Corp. (THC), reported a loss in the second quarter, flat with same period last year, in line with its previewed results of June 28, 2009. Tenet's revenues for the quarter, however, increased 5.5% from a year ago as a result of increase in both net inpatient and outpatient revenues. The company also provided earnings guidance for the full year 2009, while reducing its revenue expectations for the year.
The Dallas, Texas-based company posted a second quarter net loss attributable to shareholders of $15 million or $0.03 per share, same as that reported in the comparable previous-year quarter.
Income from continuing operations were $3 million or $0.01 per share, compared to loss from continuing operations of $17 million or $0.03 per share a year ago.
On average, 18 analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share. Analysts' estimates typically exclude special items.
On a non-GAAP basis, the company's EBITDA for the quarter increased to $246 million, from $163 million for the second quarter of previous year. On a same-hospital basis, adjusted EBITDA was $241 million, compared to $169 million last year.
In the preceding first quarter, Tenet reported a net income attributable to shareholders of $178 million or $0.37 per share, versus a net loss of $31 million or $0.06 per share a year before.
Net operating revenues for the quarter increased 5.5% to $2.23 billion from $2.11 billion last year. Analysts expected the company to report revenues of $2.22 billion for the quarter.
In the preceeding first quarter, Tenet's net revenues were $2.28 billion, up from $2.18 billion a year back.
Net inpatient revenues for the quarter under review from continuing total hospitals was $1.44 billion, compared to $1.39 billion a year earlier. Net outpatient revenues were $702 million, compared to $647 million a year ago. Net inpatient revenue per admission increased 2.9% to $11,058 from last year, while net outpatient revenue per visit increased 2.6% to $704.
Provision for doubtful accounts for the quarter increased 9.2% to $167 million a year ago, while interest expense rose to $120 million from $102 million. Loss from early extinguishment of debt was $21 million for the quarter compared to no such loss in the same period last year.
Operating income for the quarter was $138 million, compared to operating income of $65 million last year.
For the first six months of the year, the company posted a net income attributable to shareholders of $163 million or $0.34 per share, compared to a loss attributable to shareholders of $46 million or $0.10 per share in the previous fiscal.
Income from continuing operations for the six-month period was $200 million or $0.41 per share, compared to a loss from continuing operations of $39 million or $0.09 per share in the prior year.
Net operating revenues for the six months increased to $4.49 billion from $4.27 billion in the year earlier period.
Looking ahead to the full year 2009, the company expects to report a net loss of $20 million to net income of $60 million. On a normalized basis, earnings from continuing operations before income taxes is expected to be in the range of a loss of $50 million to income of $10 million. Normalized loss per share from continuing operations is expected in the range of a loss of $0.08 per share to a loss of $0.01 per share.
Net operating revenues are now expected in the range of $8.9 billion to $9.1 billion for the year 2009, compared to previous outlook in the range of $9 billion - $9.20 billion.
Street analysts currently anticipate the company to report a loss of $0.01 per share on revenues of $8.98 billion for the full year.
Adjusted EBITDA is expected in the range of $810 million to $875 million, with assumed same-hospital admissions growth of flat to a decline of 1% and same-hospital outpatient visit growth of 1.5% to 3.0%.
Among others in the industry, Universal Health Services Inc. (UHS) last Tuesday reported a rise in second-quarter profit helped by a favorable tax adjustment. Universal's quarterly net income increased to $80.9 million or $1.64 per share from $54.2 million or $1.06 per share a year earlier. Adjusted net income for the second quarter was $71.1 million or $1.44 per share. Net revenues for the quarter increased 3% to $1.30 billion from the previous year.
THC is currently trading on the NYSE at $4.29, up $0.09 or 2.14%, with a volume of 6.1 million shares. In the past 52-week period, the stock traded in the range of $0.78 - $6.70, with an average 3-month volume of 10.58 million shares.
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