The document provides a summary of a conference call discussing Tenet Healthcare Corporation's financial results for Q4 2008.
1) Tenet reported strong operating results for Q4 2008, with improvements in same-hospital volumes, revenues, and profits. However, Tenet's stock price declined sharply in Q4.
2) Despite economic uncertainties, the speaker remains optimistic about Tenet's business fundamentals due to progress in physician recruitment, outpatient business stabilization, growth in targeted service lines, and quality achievements.
3) Tenet expects its 2009 adjusted EBITDA to range from $735 million to $800 million, either flat or up 9% from 2008, due to uncertainties around volumes, payor
The document is the prepared remarks from Tenet Healthcare Corporation's President and CEO and COO for their Q3 2007 earnings call. Some key points:
- Tenet reported their best performance in several years for Q3, with improving trends in volumes, pricing, costs, and other metrics.
- Same hospital admissions declined slightly but commercial managed care admissions increased, driven by the Targeted Growth Initiative.
- Cost control efforts like job reductions and supply cost management helped control expenses.
- They aim to achieve their guidance range for full year adjusted EBITDA of $675-725 million based on the strong Q3 results.
- Trevor Fetter, CEO of Tenet Healthcare, provided commentary on the company's Q3 earnings call. While same-hospital admissions grew for the 4th consecutive quarter, earnings did not meet expectations.
- EBITDA was below projections due to an unexpected decline in commercial managed care admissions, despite successes in growing government volumes. Tenet saw strength in volumes but weakness in patient mix.
- Looking ahead, Tenet expects adjusted EBITDA for 2008 to be in the range of $700-750 million, below prior guidance, due to a weaker starting point. The $1 billion EBITDA target for 2009 will be difficult to achieve given the weakening economy.
Trevor Fetter, CEO of Tenet Healthcare, discussed the company's strong Q2 2008 results. Same-hospital admissions grew 2.2%, the best result in over 4 years. Excluding recently divested hospitals, core same-hospital admissions grew 2.2% and paying admissions grew 2.2%. Commercial managed care admissions declined 1.7% but grew 1.9% in targeted service lines. Fetter also outlined several hospital divestitures and asset sales that would generate $750-950 million in cash, most of which would be used to retire debt. This would reduce EBITDA but increase pre-tax income and free cash flow.
Stephen Newman, also of Tenet Healthcare, provided
During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
Quest Diagnostics reported strong financial results for Q3 2007, with revenues growing 11.6% to $1.8 billion and operating margins improving to 17.3%. While volumes declined 2.4% due to losing a contract with UnitedHealthcare, revenue per requisition increased 13.3% and margins returned to pre-contract levels within 9 months. Quest also provided full-year 2007 guidance, expecting revenues of $6.6-6.7 billion and operating margins of 16%, and is focused on driving growth through new tests, acquisitions, and expanding patient and physician services.
Quest Diagnostics held a conference call to discuss financial results for the third quarter of 2008. Key points included:
- Revenues grew 3.4% to $1.8 billion, adjusted earnings per share increased 12%, and cash flow improved to $329 million.
- Guidance for full year 2008 was raised for adjusted earnings per share to between $3.17-$3.22.
- The company reached an agreement in principle with the federal government regarding an investigation, increasing related reserves by $73 million.
- Growth was driven by increases in esoteric, gene-based, and routine testing. Progress was also made on cost reduction initiatives.
Tenet's COO provided an update on the company's strategies to improve volume growth. Early results from their Physician Sales and Service Program (PSSP) showed a 3.5% increase in admissions for targeted physicians. Their Centers of Excellence (COE) strategy led to a 22% increase in cardiology volumes for designated hospitals. The COO summarized their strategy as: 1) Identifying physician needs through research, 2) Accelerating capital spending on physician priorities, 3) Fine-tuning PSSP communications, and 4) Enhancing their value proposition through COE designations. The COO expressed optimism that continued momentum with PSSP and COE, along with quality initiatives, can achieve net
Atento provided its second quarter results for fiscal year 2016, highlighting growth, profitability, and liquidary priorities. Revenue declined slightly on a constant currency basis due to macroeconomic pressures in Brazil, though growth in the Americas nearly offset this. Adjusted EBITDA increased slightly with margins stable at 12%. Free cash flow before interest was strong at $39.4 million due to working capital improvements. Atento reaffirmed full year 2016 guidance and remains focused on balancing growth, profits, and reducing debt levels.
The document is the prepared remarks from Tenet Healthcare Corporation's President and CEO and COO for their Q3 2007 earnings call. Some key points:
- Tenet reported their best performance in several years for Q3, with improving trends in volumes, pricing, costs, and other metrics.
- Same hospital admissions declined slightly but commercial managed care admissions increased, driven by the Targeted Growth Initiative.
- Cost control efforts like job reductions and supply cost management helped control expenses.
- They aim to achieve their guidance range for full year adjusted EBITDA of $675-725 million based on the strong Q3 results.
- Trevor Fetter, CEO of Tenet Healthcare, provided commentary on the company's Q3 earnings call. While same-hospital admissions grew for the 4th consecutive quarter, earnings did not meet expectations.
- EBITDA was below projections due to an unexpected decline in commercial managed care admissions, despite successes in growing government volumes. Tenet saw strength in volumes but weakness in patient mix.
- Looking ahead, Tenet expects adjusted EBITDA for 2008 to be in the range of $700-750 million, below prior guidance, due to a weaker starting point. The $1 billion EBITDA target for 2009 will be difficult to achieve given the weakening economy.
Trevor Fetter, CEO of Tenet Healthcare, discussed the company's strong Q2 2008 results. Same-hospital admissions grew 2.2%, the best result in over 4 years. Excluding recently divested hospitals, core same-hospital admissions grew 2.2% and paying admissions grew 2.2%. Commercial managed care admissions declined 1.7% but grew 1.9% in targeted service lines. Fetter also outlined several hospital divestitures and asset sales that would generate $750-950 million in cash, most of which would be used to retire debt. This would reduce EBITDA but increase pre-tax income and free cash flow.
Stephen Newman, also of Tenet Healthcare, provided
During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
Quest Diagnostics reported strong financial results for Q3 2007, with revenues growing 11.6% to $1.8 billion and operating margins improving to 17.3%. While volumes declined 2.4% due to losing a contract with UnitedHealthcare, revenue per requisition increased 13.3% and margins returned to pre-contract levels within 9 months. Quest also provided full-year 2007 guidance, expecting revenues of $6.6-6.7 billion and operating margins of 16%, and is focused on driving growth through new tests, acquisitions, and expanding patient and physician services.
Quest Diagnostics held a conference call to discuss financial results for the third quarter of 2008. Key points included:
- Revenues grew 3.4% to $1.8 billion, adjusted earnings per share increased 12%, and cash flow improved to $329 million.
- Guidance for full year 2008 was raised for adjusted earnings per share to between $3.17-$3.22.
- The company reached an agreement in principle with the federal government regarding an investigation, increasing related reserves by $73 million.
- Growth was driven by increases in esoteric, gene-based, and routine testing. Progress was also made on cost reduction initiatives.
Tenet's COO provided an update on the company's strategies to improve volume growth. Early results from their Physician Sales and Service Program (PSSP) showed a 3.5% increase in admissions for targeted physicians. Their Centers of Excellence (COE) strategy led to a 22% increase in cardiology volumes for designated hospitals. The COO summarized their strategy as: 1) Identifying physician needs through research, 2) Accelerating capital spending on physician priorities, 3) Fine-tuning PSSP communications, and 4) Enhancing their value proposition through COE designations. The COO expressed optimism that continued momentum with PSSP and COE, along with quality initiatives, can achieve net
Atento provided its second quarter results for fiscal year 2016, highlighting growth, profitability, and liquidary priorities. Revenue declined slightly on a constant currency basis due to macroeconomic pressures in Brazil, though growth in the Americas nearly offset this. Adjusted EBITDA increased slightly with margins stable at 12%. Free cash flow before interest was strong at $39.4 million due to working capital improvements. Atento reaffirmed full year 2016 guidance and remains focused on balancing growth, profits, and reducing debt levels.
This document summarizes a conference call by Quest Diagnostics about their third quarter 2005 financial results. Key points include:
- Revenues grew 6.4%, earnings per share were $0.66, and cash flow was $178 million.
- Clinical testing revenues grew 7.1% due to increased volume and revenue per test. Hurricanes Katrina and Rita reduced revenues by 0.5%.
- Operating income was 17.7% of revenues compared to 18% last year. Margins increased in clinical testing but were reduced by hurricanes and a $6.2 million charge.
- Their test kit manufacturing subsidiary NID performed below last year, reducing revenue growth by 0.5% and margin expansion
The document summarizes a company's first quarter 2008 earnings conference call. It discusses challenges faced by weak equity markets and volatility in credit markets. While earnings were lower than desired, the company's financial foundation remains strong with high client retention rates. The company is focused on executing its long-term strategy and emerging from the downturn in a good position.
Nvta q3 2017 call deck 11.6.17 final final (1)invitaeir
Invitae reported strong growth in the third quarter of 2017 with over 40,000 samples accessioned, up 158% year-over-year, and maintained its momentum despite some headwinds. While integrating recent acquisitions, Invitae continues to reduce costs and drive toward profitability, supported by its strengthened cash position of over $106 million. Invitae is well positioned for continued expansion and growth in the fourth quarter and beyond as it works to achieve its 2017 guidance targets.
Biogen Idec is a leading biotechnology firm that has experienced strong growth through niche pharmaceutical products. However, an analyst's model projects the stock is overvalued given limitations on sustained high growth rates as markets become saturated and competitors increase efforts. The model finds a 73% probability the stock is fairly priced between $180-300 but only 5.25% above $300. The analyst advises taking profits and waiting for new product approvals and guidance.
Atento reported its fiscal 2016 first quarter results with the following highlights:
- Revenue increased 2.5% year-over-year to $419.4 million driven by 16% growth in the Americas region.
- Adjusted EBITDA grew 5.6% year-over-year to $48.8 million with margins expanding 30 basis points to 11.6%.
- The company remains focused on balancing growth, profitability, and liquidity while diversifying its revenue base and customer portfolio.
- Atento reaffirmed its full-year 2016 guidance targets and expects continued progress on its strategic initiatives.
Sysco reported strong financial results for the third quarter of fiscal year 2017 that included the recently acquired Brakes Group. [1] Sales increased 12.7% to $13.5 billion including Brakes, and adjusted operating income grew 14.3% to $500 million. [2] Excluding Brakes, sales increased 2.3% to $12.3 billion and adjusted operating income rose 13.6% to $497 million. [3] Management is pleased with the company's momentum and progress achieving its adjusted operating income target, and is currently developing a new three-year strategic plan through 2020.
This document summarizes Ameriprise Financial's fourth quarter 2006 earnings conference call. It discusses strong adjusted revenue, earnings, and return on equity growth for both the quarter and full year. The separation from American Express is on track. Brand awareness has increased and distribution capabilities have been strengthened through advisor productivity improvements and growth in fee-based assets and clients.
Sysco is presenting at a consumer conference to discuss its strategic plan and financial objectives over the next three years. The plan focuses on growing gross profit through local case growth and margin improvement, reducing supply chain and administrative costs, and leveraging technology and people. Sysco has achieved $410 million in operating income improvements so far, is on track to meet EPS targets, and has a ROIC of 13.1%, demonstrating strong initial results toward its three-year goals.
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Investor day combined presentation with non gaa ps(1)Delta_Airlines
This document summarizes a presentation by Delta Airlines on its business strategy and financial goals. It discusses Delta's record financial results in 2014, including $4.5 billion in pre-tax earnings and over $3 billion in free cash flow. It outlines Delta's goals for continued margin expansion, earnings growth, and high returns on capital through 2015 and beyond via capacity growth, pricing improvements, and cost productivity initiatives. Lower fuel prices are also expected to provide a $1.7 billion earnings benefit in 2015.
Atento provided an investor presentation summarizing its third quarter performance and long term strategy. Key highlights included 9.4% revenue growth and 4.2% increase in adjusted EBITDA. Adjusted EBITDA margin declined 120 basis points due to shifts in country and revenue mix. The presentation discussed progress on strategic initiatives like growth in non-telco verticals and solutions. Atento is well positioned for long term growth in the CRM/BPO market, but near term macro challenges could pressure margins.
Rossi Residencial reported its 3Q13 and 9M13 operational and financial results. Operationally, new launches totaled R$665 million in 3Q13, in line with the company's strategic plan to focus on more profitable metropolitan regions. Gross sales were R$616 million in 3Q13. Financially, net revenue was R$492 million in 9M13, while adjusted EBITDA was R$405 million. The company generated R$199 million in operational cash flow excluding interest in 9M13.
The document is the agenda and presentation materials for a Sysco Corporation meeting. Some key points:
1) Sysco is a global leader in foodservice distribution with over $55 billion in annual sales and operations in 13 countries.
2) The meeting agenda includes a market, strategy, and business update from the CEO and a financial review.
3) In the business update, Sysco outlines its strategic focus areas of partnership, productivity, products, people, and portfolio. It is also executing a customer-centric strategy to enhance customer experience.
- TE Connectivity reported record Q3 adjusted EPS of $1.08, up 20% year-over-year and above guidance.
- Sequential increases in revenue of 6% and orders of 7% were driven by growth in harsh environment businesses.
- For Q4, revenue is expected to be $3.35 billion at the mid-point with adjusted EPS of $1.20, including the impact of an extra week.
- Full year adjusted EPS guidance was reiterated at $4.00, up 11% year-over-year, on slightly reduced revenue of $12.25 billion at the mid-point.
Aon plc reported its third quarter 2017 results on October 27, 2017. Key metrics included 2% organic revenue growth, a 170 basis point increase in operating margin to 20.3%, and 18% growth in earnings per share to $1.29. Aon is accelerating its strategy of investing in high-growth, high-margin areas through the divestiture of outsourcing businesses and reinvesting the $3 billion in proceeds.
Csod investor deck third quarter1052015ircornerstone
Cornerstone provides a corporate overview and highlights its evolution over the past 15 years. It discusses the opportunity in the market to address changing work needs. Cornerstone has grown to over 2,000 clients, 22 million users, and a presence in 191 countries. It aims to reach $1 billion in revenue by continuing to innovate and expand across market segments, industries, and within its existing client base.
This document is an investor presentation for Intact Financial Corporation, the largest property and casualty insurer in Canada. Some key points:
- Intact has over $7 billion in direct premiums written and is the largest P&C insurer in Canada.
- It has outperformed the P&C industry over the past 10 years in terms of premium growth, return on equity, and combined ratio.
- Intact aims to continue beating the industry ROE by 5 points annually through initiatives like pricing and claims management improvements.
- US Foods reported strong financial results for Q4 and FY 2016, with adjusted EBITDA growth of 12.5% for the full year.
- Volume growth, margin expansion, and five successful acquisitions contributed to the positive results.
- The company made progress on key strategic initiatives such as new product launches, food cost management, and efficiency improvements.
- Management reiterated mid-term guidance of 7-10% annual adjusted EBITDA growth and remains optimistic given favorable industry trends.
This document contains slides from an AIMIA credit rating agency presentation from September 2014. It discusses AIMIA's financial performance in Q2 and the first half of 2014, with Gross Billings up 13.6% and 20.6% respectively. Free Cash Flow was also up significantly for the quarter and year-to-date. The presentation provides details on the drivers of growth and updates AIMIA's guidance targets for 2014.
This document is Tenet Healthcare Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2008. It provides information on Tenet's business operations, including that it operates 53 general hospitals and other healthcare facilities across 12 states. It lists the hospitals by region and state, and describes the services offered and accreditations. The report also discusses Tenet's strategies, recent facility acquisitions, divestitures and openings, and factors that affect its operating results.
Sallie Mae is the leading provider of education funding in the U.S., helping millions access college. In 2003, Sallie Mae had record loan origination and fee income growth from debt management. It is nearing full privatization from the government-sponsored enterprise program. The company provides a range of education loan, servicing, and debt collection products and services to help students and families at every stage of the education financing process.
This document is KBR's 2007 Annual Report. It discusses KBR's positioning for growth after separating from Halliburton. Key points include:
- KBR restructured into six business units to better serve customers and capture market opportunities. The business units are seeing success with new contract awards.
- KBR delivered record financial performance in 2007 while also transitioning to an independent company and positioning itself for future growth. Income increased 177% and net income set an all-time record.
- Moving forward, KBR aims to leverage its expertise and capabilities to strengthen customer relationships, continue improving risk management, and create shareholder value through stable, predictable growth across its business units.
This document summarizes a conference call by Quest Diagnostics about their third quarter 2005 financial results. Key points include:
- Revenues grew 6.4%, earnings per share were $0.66, and cash flow was $178 million.
- Clinical testing revenues grew 7.1% due to increased volume and revenue per test. Hurricanes Katrina and Rita reduced revenues by 0.5%.
- Operating income was 17.7% of revenues compared to 18% last year. Margins increased in clinical testing but were reduced by hurricanes and a $6.2 million charge.
- Their test kit manufacturing subsidiary NID performed below last year, reducing revenue growth by 0.5% and margin expansion
The document summarizes a company's first quarter 2008 earnings conference call. It discusses challenges faced by weak equity markets and volatility in credit markets. While earnings were lower than desired, the company's financial foundation remains strong with high client retention rates. The company is focused on executing its long-term strategy and emerging from the downturn in a good position.
Nvta q3 2017 call deck 11.6.17 final final (1)invitaeir
Invitae reported strong growth in the third quarter of 2017 with over 40,000 samples accessioned, up 158% year-over-year, and maintained its momentum despite some headwinds. While integrating recent acquisitions, Invitae continues to reduce costs and drive toward profitability, supported by its strengthened cash position of over $106 million. Invitae is well positioned for continued expansion and growth in the fourth quarter and beyond as it works to achieve its 2017 guidance targets.
Biogen Idec is a leading biotechnology firm that has experienced strong growth through niche pharmaceutical products. However, an analyst's model projects the stock is overvalued given limitations on sustained high growth rates as markets become saturated and competitors increase efforts. The model finds a 73% probability the stock is fairly priced between $180-300 but only 5.25% above $300. The analyst advises taking profits and waiting for new product approvals and guidance.
Atento reported its fiscal 2016 first quarter results with the following highlights:
- Revenue increased 2.5% year-over-year to $419.4 million driven by 16% growth in the Americas region.
- Adjusted EBITDA grew 5.6% year-over-year to $48.8 million with margins expanding 30 basis points to 11.6%.
- The company remains focused on balancing growth, profitability, and liquidity while diversifying its revenue base and customer portfolio.
- Atento reaffirmed its full-year 2016 guidance targets and expects continued progress on its strategic initiatives.
Sysco reported strong financial results for the third quarter of fiscal year 2017 that included the recently acquired Brakes Group. [1] Sales increased 12.7% to $13.5 billion including Brakes, and adjusted operating income grew 14.3% to $500 million. [2] Excluding Brakes, sales increased 2.3% to $12.3 billion and adjusted operating income rose 13.6% to $497 million. [3] Management is pleased with the company's momentum and progress achieving its adjusted operating income target, and is currently developing a new three-year strategic plan through 2020.
This document summarizes Ameriprise Financial's fourth quarter 2006 earnings conference call. It discusses strong adjusted revenue, earnings, and return on equity growth for both the quarter and full year. The separation from American Express is on track. Brand awareness has increased and distribution capabilities have been strengthened through advisor productivity improvements and growth in fee-based assets and clients.
Sysco is presenting at a consumer conference to discuss its strategic plan and financial objectives over the next three years. The plan focuses on growing gross profit through local case growth and margin improvement, reducing supply chain and administrative costs, and leveraging technology and people. Sysco has achieved $410 million in operating income improvements so far, is on track to meet EPS targets, and has a ROIC of 13.1%, demonstrating strong initial results toward its three-year goals.
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Investor day combined presentation with non gaa ps(1)Delta_Airlines
This document summarizes a presentation by Delta Airlines on its business strategy and financial goals. It discusses Delta's record financial results in 2014, including $4.5 billion in pre-tax earnings and over $3 billion in free cash flow. It outlines Delta's goals for continued margin expansion, earnings growth, and high returns on capital through 2015 and beyond via capacity growth, pricing improvements, and cost productivity initiatives. Lower fuel prices are also expected to provide a $1.7 billion earnings benefit in 2015.
Atento provided an investor presentation summarizing its third quarter performance and long term strategy. Key highlights included 9.4% revenue growth and 4.2% increase in adjusted EBITDA. Adjusted EBITDA margin declined 120 basis points due to shifts in country and revenue mix. The presentation discussed progress on strategic initiatives like growth in non-telco verticals and solutions. Atento is well positioned for long term growth in the CRM/BPO market, but near term macro challenges could pressure margins.
Rossi Residencial reported its 3Q13 and 9M13 operational and financial results. Operationally, new launches totaled R$665 million in 3Q13, in line with the company's strategic plan to focus on more profitable metropolitan regions. Gross sales were R$616 million in 3Q13. Financially, net revenue was R$492 million in 9M13, while adjusted EBITDA was R$405 million. The company generated R$199 million in operational cash flow excluding interest in 9M13.
The document is the agenda and presentation materials for a Sysco Corporation meeting. Some key points:
1) Sysco is a global leader in foodservice distribution with over $55 billion in annual sales and operations in 13 countries.
2) The meeting agenda includes a market, strategy, and business update from the CEO and a financial review.
3) In the business update, Sysco outlines its strategic focus areas of partnership, productivity, products, people, and portfolio. It is also executing a customer-centric strategy to enhance customer experience.
- TE Connectivity reported record Q3 adjusted EPS of $1.08, up 20% year-over-year and above guidance.
- Sequential increases in revenue of 6% and orders of 7% were driven by growth in harsh environment businesses.
- For Q4, revenue is expected to be $3.35 billion at the mid-point with adjusted EPS of $1.20, including the impact of an extra week.
- Full year adjusted EPS guidance was reiterated at $4.00, up 11% year-over-year, on slightly reduced revenue of $12.25 billion at the mid-point.
Aon plc reported its third quarter 2017 results on October 27, 2017. Key metrics included 2% organic revenue growth, a 170 basis point increase in operating margin to 20.3%, and 18% growth in earnings per share to $1.29. Aon is accelerating its strategy of investing in high-growth, high-margin areas through the divestiture of outsourcing businesses and reinvesting the $3 billion in proceeds.
Csod investor deck third quarter1052015ircornerstone
Cornerstone provides a corporate overview and highlights its evolution over the past 15 years. It discusses the opportunity in the market to address changing work needs. Cornerstone has grown to over 2,000 clients, 22 million users, and a presence in 191 countries. It aims to reach $1 billion in revenue by continuing to innovate and expand across market segments, industries, and within its existing client base.
This document is an investor presentation for Intact Financial Corporation, the largest property and casualty insurer in Canada. Some key points:
- Intact has over $7 billion in direct premiums written and is the largest P&C insurer in Canada.
- It has outperformed the P&C industry over the past 10 years in terms of premium growth, return on equity, and combined ratio.
- Intact aims to continue beating the industry ROE by 5 points annually through initiatives like pricing and claims management improvements.
- US Foods reported strong financial results for Q4 and FY 2016, with adjusted EBITDA growth of 12.5% for the full year.
- Volume growth, margin expansion, and five successful acquisitions contributed to the positive results.
- The company made progress on key strategic initiatives such as new product launches, food cost management, and efficiency improvements.
- Management reiterated mid-term guidance of 7-10% annual adjusted EBITDA growth and remains optimistic given favorable industry trends.
This document contains slides from an AIMIA credit rating agency presentation from September 2014. It discusses AIMIA's financial performance in Q2 and the first half of 2014, with Gross Billings up 13.6% and 20.6% respectively. Free Cash Flow was also up significantly for the quarter and year-to-date. The presentation provides details on the drivers of growth and updates AIMIA's guidance targets for 2014.
This document is Tenet Healthcare Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2008. It provides information on Tenet's business operations, including that it operates 53 general hospitals and other healthcare facilities across 12 states. It lists the hospitals by region and state, and describes the services offered and accreditations. The report also discusses Tenet's strategies, recent facility acquisitions, divestitures and openings, and factors that affect its operating results.
Sallie Mae is the leading provider of education funding in the U.S., helping millions access college. In 2003, Sallie Mae had record loan origination and fee income growth from debt management. It is nearing full privatization from the government-sponsored enterprise program. The company provides a range of education loan, servicing, and debt collection products and services to help students and families at every stage of the education financing process.
This document is KBR's 2007 Annual Report. It discusses KBR's positioning for growth after separating from Halliburton. Key points include:
- KBR restructured into six business units to better serve customers and capture market opportunities. The business units are seeing success with new contract awards.
- KBR delivered record financial performance in 2007 while also transitioning to an independent company and positioning itself for future growth. Income increased 177% and net income set an all-time record.
- Moving forward, KBR aims to leverage its expertise and capabilities to strengthen customer relationships, continue improving risk management, and create shareholder value through stable, predictable growth across its business units.
This document is SLM Corporation's annual report (Form 10-K) filed with the SEC for the fiscal year ended December 31, 2002. It provides information on SLM's business operations, including that it is the largest holder and servicer of Federal Family Education Loan Program (FFELP) student loans, managing $79 billion in student loans. It discusses the student lending marketplace and trends driving growth, including rising tuition costs and the growing number of students relying on education loans. The report also outlines key terms and programs related to SLM's student lending business.
Trevor Fetter, President and CEO of Tenet Healthcare, discusses Tenet's strategy for progress and growth. He outlines that Tenet's culture and values are driving measurable improvements in operations, performance, and innovation. Key points include that same hospital adjusted EBITDA and margins have been expanding, volume trends are favorable, pricing growth has been strong, and they have effectively contained cost growth. Fetter also discusses strategic initiatives proving effective in quality, targeted growth, physician relationships, and capital investment. He believes Tenet has reached an "inflection point" in its turnaround over the past 12-18 months.
This document outlines the bylaws of Dana Holding Corporation. It discusses various topics related to stockholder meetings (including time/place of meetings, annual/special meetings, notice requirements, quorum, voting), the board of directors (including number, vacancies, committees), notices, officers, stock, and general provisions. Key details include requirements for stockholder proposals and nominations (notice must be given no earlier than 120 days and no later than 90 days before the anniversary of the prior year's annual meeting) and provisions regarding the order of business and conduct at stockholder meetings.
pulte homes BCF65EEF-0BFE-4C58-8C84-345ECA968DBA_phm_Q42008WebcastSlidesfinance42
- Pulte maintained its strategic focus on strengthening its balance sheet in 4Q 2008 as market conditions deteriorated, increasing cash by $500M to $1.655B despite a $42M reduction in overhead costs and lowering lots under control by 23% to 121,000 units.
- 4Q 2008 revenue fell 43% to $1.7B and pre-tax loss was $479.7M compared to a $453.8M loss in 4Q 2007, with a net loss per share of $1.33 versus $3.46 in the prior year.
- Inventory and land-related impairment charges were $380M in 4Q 2008, with backlog falling to 2,174
Tenet Healthcare Corporation reported financial results for the fourth quarter of 2007 with improvements over the prior year. Net loss narrowed to $75 million compared to $386 million in the prior year. Same-hospital adjusted EBITDA increased 9.8% to $168 million. Admissions increased 0.1% with growth in managed care admissions, while outpatient visits declined 1.4%. Tenet provided guidance for 2008 of adjusted EBITDA between $775-850 million and earnings per share between negative 3 cents to positive 6 cents.
- The document is the transcript from a Q2 2008 earnings call for a healthcare company.
- Key highlights included 2.2% same-hospital admission growth and improving trends in volumes, pricing, and expenses.
- Management discussed strategies around physician relationships and service lines that are helping to increase commercial and total admissions.
dana holdings AuditCommitteeCharter_013108finance42
The Audit Committee Charter establishes the purpose, composition, and duties of Dana Holding Corporation's Audit Committee. The Audit Committee is responsible for overseeing the company's financial reporting and audit process. It is tasked with retaining independent auditors, overseeing their work, and reviewing Dana Holding's financial statements, disclosure controls and procedures, and risk management practices. The Committee is also responsible for establishing procedures for complaints regarding financial reporting or accounting policies.
Terex Corporation is one of the largest manufacturers of construction equipment in the world. It has a diverse portfolio balanced across different construction product categories and geographies. Terex Construction is currently undergoing process improvements and restructuring to optimize costs and margins as North American and Western European markets have softened. However, emerging markets continue to see strong growth and present opportunities. Terex Construction's goals are to achieve $12 billion in sales and 12% operating margins by 2010 through initiatives in supply chain efficiency, pricing discipline, and acquisitions integration.
The document outlines standards of business conduct for members of the Dana Holding Corporation board of directors. It discusses avoiding conflicts of interest, maintaining confidentiality, complying with laws and regulations, and encouraging ethical behavior. Directors must disclose any conflicts, not take corporate opportunities for personal gain, and obtain approval before accepting gifts from entities doing business with the company. Any violations of the standards should be reported to the board chairman or governance committee chair. Waivers can only be granted by the governance committee or full board.
The IT department at Tenet Healthcare remains focused on supporting key business objectives such as improving clinical outcomes, growing patient volumes, recruiting and retaining staff, and improving cost metrics through initiatives like expanding clinical systems, developing consumer tools, and streamlining registration processes to enhance the patient experience. IT also aims to deliver effective technologies at a lower cost than peers through standardization, outsourcing, and leveraging centralized expertise.
This document is SLM Corporation's annual report on Form 10-K filed with the United States Securities and Exchange Commission for the fiscal year ended December 31, 2007. It provides information on SLM Corporation's business, operations, financial results, subsidiaries, legal proceedings, risks and other disclosures required by the SEC. Specifically, the document includes SLM Corporation's audited financial statements, discusses its student loan portfolio and business segments, discloses legal and regulatory risks, and incorporates portions of its proxy statement by reference.
dana holdings NominatingCommitteeCharter_013108finance42
The Nominating and Corporate Governance Committee Charter establishes the purpose, composition, duties, and responsibilities of Dana Holding Corporation's Nominating and Corporate Governance Committee. The Committee is responsible for identifying and recommending new board members, evaluating current directors, overseeing corporate governance policies and board evaluations, and ensuring compliance with regulatory governance requirements. The Committee is composed of at least three independent directors and meets as frequently as needed to fulfill its responsibilities of identifying qualified board candidates, developing governance policies, and advising the board on succession planning and compensation matters.
Tenet Healthcare reported strong operating results for Q4 2008 despite challenges from the weak economy. Same hospital metrics like admissions, outpatient visits, and revenues improved. However, the stock price declined sharply in Q4. Tenet has taken actions to improve physician recruitment and quality of care. For 2009, Tenet expects adjusted EBITDA in the range of $735 million to $800 million, flat to 9% growth over 2008. Tenet will focus on managing volumes, costs, and capital expenditures prudently given economic uncertainties. Physician recruitment exceeded targets and new physicians are contributing to volume growth. Cost control was strong in Q4 and pay-for-performance programs will provide $7 million in new revenues. Ten
This document is Tenet Healthcare Corporation's quarterly report filed with the SEC for the quarter ended September 30, 2003. It includes their consolidated balance sheets as of December 31, 2002 and September 30, 2003, consolidated statements of operations for the quarters and year-to-date periods ended September 30, 2002 and 2003, and consolidated statements of cash flows for the year-to-date periods ended September 30, 2002 and 2003.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing substantially in recent years. They are the third largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
This document is a notice and proxy statement for USA Education Inc.'s 2001 annual meeting of shareholders. It notifies shareholders that the meeting will be held on May 10, 2001 to elect directors, vote on increasing authorized shares of common stock, ratify auditors, and conduct other business. It provides information about each item of business, the board of directors, executive compensation, and share ownership. Shareholders are urged to vote by proxy to establish a quorum for the meeting.
The document is a transcript of a conference call by Tenet Healthcare Corporation executives Trevor Fetter, Stephen Newman, and Biggs Porter on May 6, 2008 to discuss the company's financial results for the first quarter. Some key points:
1) Tenet saw positive same-hospital admissions growth for the second consecutive quarter and improved EBITDA margins, signs that the company's strategies are taking effect.
2) Physician recruitment efforts increased medical staff numbers and admissions from targeted physicians. Commercial pricing also improved due to contract negotiations.
3) Cost control measures helped boost profits. April volumes showed continued growth in admissions and outpatient visits.
4) Financial results met or exceeded expectations, putting Ten
Tenet Healthcare reported financial results for the first quarter of 2006 with net income of $15 million. While pricing increases helped offset revenue declines from falling volumes, particularly in commercial managed care, weak volumes continued to be a major challenge affecting profits. The company reported improvements in quality metrics and cost controls but significant cash outflows in the quarter due to unusual payments for litigation, restructuring, and 401k matching contributions. Tenet aims to boost volumes through quality initiatives to gain designations as Centers of Excellence from major health plans and consumer incentives for policyholders.
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
1) Quest Diagnostics reported strong financial results for Q4 and full year 2007, with consolidated revenues growing 14.3% to $1.8 billion in Q4. Operating margin grew to 17.6% and cash flow was $355 million for the quarter.
2) For 2008, Quest expects revenue growth of approximately 9%, operating income as a percentage of revenues to approach 17%, cash from operations of $900 million, and diluted EPS between $3.00-$3.20, excluding potential special charges.
3) Quest aims to grow revenues above industry rates, expand operating income to 20% of revenues, and derive 10% of revenues from international business within 5 years. The company is well
The document is Trevor Fetter, President and CEO of Tenet Healthcare's, prepared remarks from an earnings call on February 27, 2007. Fetter discusses Tenet's accomplishments in 2006 including resolving legal issues, settling insurance claims from Hurricane Katrina, and appointing new executives. He provides an outlook for 2007 of $700-800 million in EBITDA and discusses strategies like targeted growth initiatives and increased capital expenditures to drive volume growth. Stephen Newman, Chief Operating Officer, then discusses executing on these strategies including improving outpatient services to further increase volumes and performance.
This document contains the prepared remarks from Quest Diagnostics' third quarter 2006 conference call. [1] It discusses Quest's strong financial results for Q3 2006, including 16% revenue growth and 21% earnings growth. [2] It provides details on revenue, volume, and margin performance. [3] It also addresses Quest's ongoing contract dispute with UnitedHealthcare and Quest's strategies for retaining United business and continuing to drive growth organically and through acquisitions.
- Ameriprise Financial held a second quarter 2006 earnings call to discuss financial results and progress on strategic objectives.
- Key highlights included adjusted revenues growing 13% and adjusted earnings growing 22%, above long-term targets. Adjusted return on equity improved but was below the 12-15% target.
- The company executed several strategic initiatives including growing the mass affluent client base, maintaining a focus on financial planning, improving advisor productivity, developing new products, and ensuring an efficient operating platform.
- Financially, the quarter saw strong operating performance with adjusted earnings of $195 million, up 22% year-over-year. The company continued optimizing its capital structure and returning capital to shareholders
The document is the transcript of a conference call by Ameriprise Financial discussing their 4Q07 earnings.
- Ameriprise reported solid operating results for the quarter and full year 2007 despite tough market conditions, with revenue growth of 8% and adjusted EPS growth of 14%.
- The company's balance sheet remained strong without significant write-downs, due to their conservative risk management approach.
- Looking ahead, Ameriprise plans to manage expenses prudently while continuing to invest in long-term growth, in order to navigate the difficult market environment.
This document provides an overview of Tenet Healthcare Corporation's 2008 Investor Day event. It introduces Tom Rice, the head of investor relations, who welcomes investors and provides some context. It then introduces Trevor Fetter, the President and CEO of Tenet, who will provide an operations overview. Fetter discusses Tenet's improved culture and performance, operational effectiveness through initiatives like managed care contracting, clinical quality improvements, and portfolio optimization. He also highlights financial metrics like EBITDA growth and cost control.
Tenet reported disappointing financial results for Q2 2007 due to weak patient volumes and rising uncompensated care costs. While volumes bounced back in July, the company adjusted its financial outlook downward. Tenet is pursuing strategies around quality improvement, targeted growth initiatives, physician relationships, operational effectiveness, and building its outpatient business to drive longer term success, though progress has been slower than expected.
Quest Diagnostics reported financial results for the second quarter of 2007. Revenue grew 3.7% to $1.6 billion compared to the prior year, with acquisitions contributing approximately 6.5% of growth. Operating margin improved to 16.6% of revenues compared to 13.8% in the previous quarter, due to cost reduction efforts and higher revenue per test. The company expects margins to continue improving for the rest of the year as cost savings are realized and new contracts with health plans generate additional business.
Tenet Healthcare's Q4 2007 earnings call prepared remarks highlighted key positives in the company's performance. This included generating positive admissions growth for the first time in nearly four years, continued improvements across several leading indicators, and strengthened positioning through new managed care contracts. The company also saw improvements in quality metrics, physician recruitment, pricing gains, and cost controls. While cash flow from working capital was lower than planned, overall adjusted EBITDA came in as expected, positioning Tenet well for continued progress in 2008-2009.
Quest Diagnostics reported strong financial results for the first quarter of 2005, with revenues growing 5.1% and earnings per share growing 19%. The company is focused on three strategic areas: patients, growth, and people. For patients, the company is improving service quality and the patient experience. For growth, the company is investing in services, sales, and new tests. For people, the company is investing in employee training and tools. The company expects to meet its 2005 goals of 5-6% revenue growth, operating income as a percentage of revenues of 18-19%, and 14-16% earnings per share growth.
The document provides prepared remarks from the Q1 2007 earnings call of Tenet Healthcare.
[1] Tenet's COO discussed strategies to improve performance, including focusing on quality care, growing volumes, retaining employees/physicians, and cost management.
[2] Performance was mixed by region, with growth in California and Texas but declines in Florida due to new competition and aging physician base.
[3] Strategies like physician sales programs and centers of excellence designations showed benefits, but consistent execution is needed, especially in Florida.
After analyzing Primerica's financial statements, the author found some areas of strength and weakness. While revenue and assets grew from 2012-2014, net income grew at a slower rate. Expenses like benefits claims and sales commissions comprised a large percentage of revenue. Liquidity and efficiency ratios showed short-term debt repayment and asset utilization could improve. However, profitability ratios were strong. Further analysis revealed expenses like benefits claims increased slightly, constraining net income growth. The company needs $233 million in external funding to maintain operations.
The document is the transcript of an earnings conference call for a financial services company. In the call, the Chairman and CEO provides an overview of the company's financial results for the second quarter, noting that while earnings were down year-over-year due to market impacts, the company's business fundamentals remain solid. The CFO then begins to discuss the financial details but is cut off in the transcript.
Quest Diagnostics held a second quarter 2005 conference call to discuss financial results.
- Revenues grew 6.2% to $1.6 billion driven by a 5.3% increase in testing volume and a 1.2% increase in revenue per test.
- Earnings per share grew 14% to $0.59, and operating income margin expanded.
- Guidance for 2005 was reiterated with earnings per share growth of 14-16% and revenue growth of 5-6% expected.
1) Tenet Healthcare Corporation reported strong financial results for fiscal year 2000, with earnings per share increasing 10% over 1999 and cash flow from operations growing nearly 50%.
2) Key factors contributing to financial growth included strong commercial pricing, excellent cost controls, and progress reducing debt through cash flow and asset sales.
3) Looking forward, the company expects continued commercial pricing improvements and potentially better Medicare reimbursement to drive further earnings growth in fiscal 2001.
This document provides talking points for an Ameriprise Financial earnings call for the third quarter of 2006. It discusses key challenges faced after becoming an independent company, solid financial results for Q3 including revenue and earnings growth, progress on strategic objectives, and segment financial results. Management is satisfied with executing the separation while delivering business results and feel the company is well positioned for continued growth.
This document provides an earnings presentation for Q4 2017. Key points include:
- The company delivered its first year of positive net income since 2007 and highest adjusted EBITDA since 2010.
- Digital sales increased to 54% of total sales in Q4 2017, up from prior year.
- The company launched its programming in over 10 million additional HD homes in 2017.
- 2018 guidance forecasts 2-5% normalized sales growth and adjusted EBITDA of $19-21 million, representing 5-17% growth.
Similar to tenet healthcare QuarterEndedDecember312008PreparedRemarks (20)
SAIC's employees are dedicated to delivering innovative solutions to support clients worldwide, particularly those on the front lines of homeland security and the war in Iraq. The document discusses several ways SAIC supports homeland security, including through emergency preparedness and response training, securing borders and transportation, and responding to nuclear, biological, and chemical threats. SAIC has extensive experience supporting government agencies and was chosen to integrate the new Department of Homeland Security's data network.
This document provides a 3-page annual report for SAIC, a technology and engineering company, for their 35th anniversary in 2004. It summarizes SAIC's history and accomplishments over 35 years, including helping analyze nuclear weapons, undertaking projects in nuclear energy and healthcare, and solving difficult problems for customers in many fields. It discusses SAIC's continued commitment to employee ownership and customer focus. The message to stockholders outlines SAIC's strategies under new CEO Ken Dahlberg to better serve customers, recommit to traditional values, and drive continued growth, including reorganizing into fewer customer-focused units and setting a goal to double the company's value in 5 years.
SAIC delivered strong financial and technical performance in fiscal year 2005. Revenues increased 23% to $7.2 billion and operating income rose 24%. SAIC won many new contracts and saw record contract awards and backlog. Going forward, SAIC aims to capture larger systems integration contracts while maintaining an entrepreneurial culture and pursuing new opportunities in areas like digital oilfield technology. SAIC also seeks to strengthen workforce diversity and development.
The document is SAIC's annual report for fiscal year 2006. It summarizes SAIC's financial performance for the year, highlighting increased revenues of $7.8 billion, net income of $927 million, and diluted earnings per share of $5.15. It also outlines SAIC's strategic business areas of homeland security, intelligence solutions, defense transformation, logistics and transportation, systems engineering and integration, and research and development. The report discusses SAIC's response to hurricanes Katrina and Rita and its commitment to customers, employees, and shareholders.
SAIC provides technical solutions and operational support to government agencies and commercial customers in key areas such as homeland security, intelligence, defense, logistics, and IT. In fiscal year 2007, SAIC achieved revenue growth of 7% and operating income growth of 19% while making strategic acquisitions to expand capabilities. SAIC is committed to executing strategies to accelerate organic growth, expand operating margins, and make additional strategic acquisitions.
1) SAIC achieved strong financial results in FY2008, with revenues of $8.94 billion, up 11% from FY2007, and operating income of $666 million, up 16% from the previous year.
2) SAIC completed strategic acquisitions to expand in energy, infrastructure, and environment areas and appointed a new COO, Larry Prior, to lead organizational transition efforts.
3) Project Alignment is a major multi-year initiative to improve performance by integrating HR, finance, IT and other functions into a shared services model across the company.
The document provides an overview of Terex Corporation for a May 2008 investor conference. It discusses Terex's purpose, mission, and vision. It summarizes Terex's sales, operating profit, and geographic diversity for 2007. It also outlines goals to achieve $12 billion in sales and 12% operating margin by 2010. Finally, it discusses opportunities to improve margins through pricing actions, supply management, productivity initiatives, and The Terex Way values.
The document provides an overview of Terex Corporation and its business segments for an investor conference. It summarizes that Terex has a diversified portfolio across industries and geographies that provides balance through economic cycles. It also outlines opportunities to improve margins through pricing actions, supply management initiatives, and productivity improvements. The goal is to achieve $12 billion in sales and a 12% operating margin by 2010.
The document provides an overview of Terex Corporation for a Merrill Lynch conference. It discusses Terex's purpose, mission, and vision. It also summarizes Terex's diversified business segments and product lines, with aerial work platforms, construction equipment, cranes, material processing and mining equipment being the largest segments. The document outlines Terex's goals for 2010 of achieving $12 billion in sales and 12% operating margins.
The document provides an overview of Terex Corporation from its Basics Industrials Conference presentation on May 8, 2008. It discusses Terex's purpose, mission, and vision. It highlights Terex's strong and diversified revenue base, with income from operations increasing 36% in 2007 and 28% in Q1 2008. It outlines Terex's goals for 2010 of $12 billion in sales and 12% operating margin. The document also provides an overview of each of Terex's business segments.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing significantly in recent years. They are the 3rd largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
The annual shareholder meeting presentation covered the following key points in 3 sentences:
Terex aims to achieve $12 billion in sales and 12% operating margin by 2010 through executing on supply chain management, pricing discipline, and lean initiatives to improve margins. The company has a diverse portfolio of products and geographic presence to balance performance across economic cycles. Opportunities for margin improvement include coordinating supply efforts, optimizing manufacturing footprint, and pricing actions to offset rising costs.
1) The annual shareholder meeting presentation discusses Terex Corporation's financial goals for 2010, including achieving $12 billion in sales with a 12% operating margin and 15% working capital to sales ratio.
2) It provides an overview of Terex's business segments and their market positions, with approximately 75% of sales generated in markets where Terex has a leading position.
3) The presentation highlights Terex's sales and backlog figures by business segment for the last twelve months through March 2008, with aerial work platforms sales up 9% and cranes sales up 26% compared to the prior year.
This document contains the presentation from Tim Ford, President of Terex Aerial Work Platforms, at the JPMorgan Basics & Industrials Conference on June 4, 2008. Ford discusses the strong sales growth and global expansion of Terex AWP over the past decade. He outlines the secular growth drivers of the aerial work platform industry and Terex AWP's strategy to further strengthen and globalize its business, maximize revenue and profit from its large installed base, and extend its product offerings beyond aerials. Ford also highlights opportunities to apply lean principles more broadly across the value chain through partnerships with customers and suppliers.
This document contains the presentation from Tim Ford, President of Terex Aerial Work Platforms, at the JPMorgan Basics & Industrials Conference on June 4, 2008. Ford discusses the strong sales growth and global expansion of Terex AWP over the past decade. He outlines the secular growth drivers for the aerial work platform industry and Terex AWP's strategies to further strengthen and globalize its business, maximize revenue and profit from its large installed base, and extend its product offerings beyond aerials. Ford also highlights opportunities to apply lean principles more broadly across the value chain and customer relationships.
Terex is a leading manufacturer of construction and mining equipment with strong market positions. It aims to grow sales to $12 billion by 2010 through executing on initiatives to improve supply chain management, pricing discipline, and productivity. Terex has a diversified business across products and geographies to balance performance through different economic cycles.
Terex is a leading manufacturer of construction and mining equipment with sales of $9.1 billion in 2007. It aims to grow sales to $12 billion by 2010 through organic growth and acquisitions while improving operating margins to 12% and reducing working capital to sales ratio to 15%. Terex has a diversified business across products and geographies that provides balance throughout the economic cycle.
Terex is the 3rd largest manufacturer of construction equipment in the world based on last twelve months of available Construction Equipment Sales. Terex has a strong and diversified revenue base with almost 70% of 2007 sales generated outside of the USA. Approximately 75% of 2007 sales were generated in markets where Terex has a larger market presence than competitors and/or a significant market share.
Sales and backlog for Terex's business segments through March 31, 2008:
- Aerial Work Platform sales increased 9% with backlog up 4% from the previous period.
- Crane segment sales rose 26% and backlog grew 70% over the same period.
- Material Processing & Mining sales were flat while backlog declined slightly.
Overall, Terex is experiencing growth across most segments though some backlogs decreased slightly from the prior period.
1) Terex is the 3rd largest manufacturer of construction equipment in the world, with sales of $10.1 billion over the last 12 months.
2) Terex aims to achieve $12 billion in sales and 12% operating margin by 2010, describing this goal as "12 by 12 in '10".
3) Terex has opportunities to improve margins through better pricing, supply chain management, and productivity initiatives. Reducing working capital, especially inventory, could free up hundreds of millions of dollars.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
1. Trevor Fetter
Q4’08 - Conference Call Script
February 24, 2009
Thank you operator and good morning.
Overview
Because our headline results for the fourth quarter were first made public more than a month
ago, I’d like to direct my comments to broader trends and observations about the quarter that
were not in the pre-release.
Our operating results for the quarter were among the strongest that we’ve achieved in years. We
improved same-hospital paying admissions, paying outpatient visits and surgeries, as well as
same hospital commercial managed care revenues, adjusted EBITDA and free cash flow. The
full year 2008 was the first year of positive same-hospital admissions growth since 2003, and we
had our best performance ever in many important non-financial metrics.
Despite this strong operating performance, our stock price plummeted in the fourth quarter. As
recently as Sept. 26, Tenet stock had closed above $6 per share, up roughly 20 percent for the
year-to-date. But by mid-November, it was trading near a dollar. Since then, we’ve taken
important actions to turn this situation around.
Despite all the uncertainty that is created by the economy, I think our business is remarkably
solid, and I’m actually quite optimistic because of the progress we’ve made in a number of
critically important areas:
• First, our physician relationship and recruitment programs are proving to be highly
effective and helped us build solid momentum on inpatient volume growth.
• Second, we’ve stabilized the outpatient business, which was quite negative as recently as
2007.
• Third, our Targeted Growth Initiative strategy has successfully directed volume growth to
our most attractive and profitable service lines.
• And fourth, our achievements in quality have created a stronger value proposition for our
hospitals as well as widespread recognition. This includes our numerous Center of
Excellence designations and the bonus payments for quality that we’re receiving from
some of the largest commercial payers. And the significant reduction in our malpractice
costs is one of the tangible returns on our quality investment.
2. In addition to the financial metrics we report every quarter, we carefully measure and assess our
progress in several non-financial areas that also drive value in our business.
The first of these three non-financial metrics focuses on measuring progress in clinical quality. In
Q4, we hit all-time highs in our quality statistics. For internal evaluation and incentive purposes,
we measure our adherence to evidence-based medicine protocols, infection rates and compliance
with standards for appropriateness of admissions.
The next non-financial set of metrics is service. Our scores improved here as well, with
physician satisfaction increasing 2.9 percent over the prior year and patient satisfaction
increasing 1.1 percent. To give you an idea of the progress we’ve made in physician satisfaction,
since October 2005 the average score went from 72 percent to 81 percent.
And, third, we measure our progress in satisfaction of our employees. Total employee turnover
improved by 20 percent in 2008. And voluntary hospital CEO turnover was negligible,
demonstrating dramatic improvement from the 20 percent turnover among our hospital CEOs
that we experienced a few years ago.
These are just a few of the reasons that I’m optimistic about our fundamentals.
Let me now turn to the current economic environment and Tenet’s strategic response to the
challenges before us.
The macro environment presents us with many challenges, but I think three are worth
highlighting. The first issue is the extent to which growing unemployment will cause
commercially insured patients to lose their insurance or to put off treatment altogether.
The second issue is the extent to which declining household incomes and wealth, irrespective of
employment status, suppress consumption of medical care or put at further risk our collection
rates from both insured and uninsured patients.
And the third issue is the tremendous uncertainty in the capital markets, and the effect it has on a
company that is relatively dependent on access to credit and the cost of credit.
On the first two issues, the growth of the uninsured and risk in collection rates, we are doing
what we can to mitigate this, using the strategies that we have employed for some time in the
revenue cycle, such as stepping up our capabilities in providing financial counseling to uninsured
patients, improving consumer billing generally and point-of-service collections specifically. We
also have continued with our strategies to build commercial admissions by recruiting physicians
with commercial patients and targeting service lines with the greatest prospects for growth and
profitability.
On the third issue, relating to the unsettled capital markets, our most recent action to reduce the
risk of our balance sheet is the note exchange set to close next week. We felt it was a good time
to reduce the risk profile of our balance sheet by largely removing the debt maturities that were
scheduled to occur in 2011 and 2012. We are undertaking this refinancing between one and two
3. years earlier than we would have in a more stable market environment. With $1.4 billion of
the current notes tendered as of the early tender date of February 18, and assuming stable rates
for the next year or so, cash interest expense will increase by $43 million on an annual basis.
While we have confidence in our strategies, the operating environment in the next two years is
uncertain and access to the capital markets is even less predictable. We felt that a window had
recently opened for this exchange and that it was prudent to take the opportunity to reduce
balance sheet risk.
Given the weakness in the economy, I am pleased how well our business performed in Q4. Let
me give you some additional highlights.
Paying volumes were reasonably stable with paying admissions eking out a 0.1 percent increase
and paying outpatient visits up a more robust 0.9 percent.
Managed care admissions were up 2.5 percent from last year’s fourth quarter. Although that
metric is commonly used by this industry, it includes a shift from traditional government
programs to managed government programs, so we don’t consider it to be terribly relevant.
The relevant metric is for commercial managed care admissions, and that metric was somewhat
improved from the third quarter with a year-over-year decline of 3.0 percent.
Commercial volumes in our Targeted Growth Initiative service lines were up a very strong 2.3
percent.
We had solid performance in pricing – consistent with the strong growth that we’ve
demonstrated for a number of quarters now. We expect continued pricing growth to remain a
significant driver of earnings growth in 2009.
Cost control was outstanding as well, with unit controllable costs rising by less than one percent
on a same-hospital basis. We expect a similar level of cost efficiency going forward, as we
anticipate capturing approximately $150 million from the cost cuts that we are already
implementing.
Macro-economic pressures presumably drove a modest softening of our collection ratios in the
quarter and the related increase in bad debt expense. But our multi-year efforts to address the bad
debt issue again generated results. Our same hospital bad debt expense was 7.5 percent for the
fourth quarter, actually a slight improvement relative to the third quarter, and up only 110 basis
points versus the fourth quarter a year ago.
Taken together, these factors enabled us to generate an adjusted EBITDA margin of 9.1 percent,
an increase of 160 basis points relative to the prior year’s fourth quarter.
For the full year, adjusted EBITDA was $732 million, a little below the range that we had
expected a year ago, but toward the upper end of the revised range that we laid out further into
the year, and up 11.4 percent over 2007. Growth in same-hospital EBITDA was even stronger,
up 14 percent year-over-year.
4. Capex
Turning to capital expenditures, we spent less than expected in the fourth quarter, with capex in
continuing operations of $130 million. We will continue to take a cautious approach to capital
expenditures in 2009, which should contribute to our progress in moving toward positive free
cash flow.
That said, we will honor the promises for capital improvements that we’ve made to our
physicians. We’ve worked too hard to rebuild our relationships with physicians to jeopardize that
progress in 2009. Fortunately, the competitive “arms race” for capex in the hospital industry has
subsided for the time being.
2009 Outlook
Turning to 2009, we are looking at more than the usual set of challenges. With significant
uncertainties in terms of volume growth, payor and patient mix, and bad debt expense, it is hard
to offer a precise Outlook for 2009.
Our Outlook for 2009 adjusted EBITDA is a range of 735 million to 800 million dollars, which
is between flat to a 9 percent increase over our 2008 performance.
With that as an overview, let me turn the call over to Tenet’s Chief Operating Officer, Dr. Steve
Newman.
Steve…
Stephen Newman
Conference Call Script - Q4’08
February 24, 2009
Thank you Trevor, and good morning everyone.
Volumes
I want to begin by reviewing the relationship between our fourth quarter volumes and our growth
strategies by service line.
While total paying inpatient and outpatient volumes held up quite well in the fourth quarter, our
commercial managed care admissions declined by 3.0 percent. This is a slight improvement
relative to the 3.4 percent decline in the third quarter, but clearly not where we want to be.
As we have discussed in prior quarters, our de-emphasis of the obstetrics (OB) service line
accounts for the majority of the decline in commercial admissions. In fact, 58 percent of our
fourth quarter decline can be attributed to OB. And since OB typically is not a TGI service line
5. at most of our hospitals, a significant portion of this lost commercial volume should be viewed
primarily as part of our operating strategy, and not as a critical shortfall relative to our growth
objectives.
Rather than illustrating our commercial admissions declines in non-TGI service lines like OB,
slides 14 and 15 compare commercial and total paying admissions growth in our seven TGI
service lines. These graphs show the “delta” between growth in TGI versus non-TGI service
lines. The difference is real and it’s growing.
Slide 14 provides an isolated look at only commercial admissions, while slide 15 illustrates all
paying admissions. You can see on slide 14 that, in Q4’08, commercial admissions in our seven
TGI service lines grew 690 basis points faster than our commercial admissions in non-TGI
service lines. On slide 15 the focus shifts to total paying admissions, where there is a 300 basis
point difference separating the growth rates in our TGI service lines compared to growth rates in
our non-TGI service lines.
The key take-away here is that we have consistently demonstrated an ability to grow commercial
and aggregate paying volumes in our TGI service lines, precisely where we have concentrated
the focus of our growth strategy. As we have selected our TGI service lines based on
profitability, local market needs and attractive projected demand growth, our success in
achieving disproportionately strong growth in these services should prove to be quite powerful in
driving future financial performance.
Before leaving the discussion on volume growth, let me bring you up to speed on our first
quarter volumes. As you know, we don’t always give this sort of interim update because short-
term volume trends can be volatile. But since we’re already close to two full months into the
quarter, I’ll give you an early look.
Through last Wednesday, February 18 – a period representing the same number of weekdays and
weekend days as last year – our total admissions were down 0.8 percent, total paying admissions
were down 0.7 percent, outpatient visits were up 0.5 percent, and commercial managed care
admissions were down 3.1 percent.
While these results are softer than we’d like, we are encouraged by the fact that they are not
radically different from the trends we saw in the fourth quarter.
Medical Staff Discussion
I believe our success in sustaining reasonable volume performance in the face of a weakening
economy is due in large part to our success in expanding our active physician staff.
Let me briefly review the methodology we use to track our progress.
The total medical staff at our 50 hospitals at the end of Q4’08 was slightly less than 23,000
physicians. Because many of these physicians make only a small number of referrals to our
hospitals, we focus our analysis on a subset of this aggregate number, which we refer to as our
6. “active medical staff.” To qualify as an “active medical staff” member, a physician must either
admit 10 patients or perform an equal number of outpatient procedures annually.
You will recall that last year at this time we established a growth target of 1,000 net new
physicians for 2008. This target indicated our intent to repeat the strong growth we had achieved
in 2007. I’m excited to tell you that we actually exceeded our 2008 objective, with net growth of
1,122 physicians for the year, or an increase of 9.0 percent. This brought our total active medical
staff at the end of 2008 to 13,571 physicians, and represented growth of 17 percent since Jan. 1,
2007. The details of this growth are shown on slide 16.
To demonstrate the significance of this growth, let’s look at the 2008 performance of the
physicians who joined the staff of Tenet hospitals in 2007.
These physicians, whom we refer to as the “Class of 2007,” were responsible for more than
45,000 admissions and 275,000 outpatient visits in 2008. On average, this translates to 26
admissions and 158 outpatient visits per member of the class, and represents a more rapid ramp-
up than we had anticipated. These increased volumes were partially offset by volumes lost as a
result of attrition within our existing physician base.
Early indications from the Class of 2008 are very encouraging. In fact, this class appears to be
ramping up even faster than the Class of 2007 during their first few months with Tenet.
As our physician relationship program has matured, we have refined our linkage between
targeted physicians, their books of commercial business and our TGI service lines. We believe
the early superior growth from the “Class of 2008” reflects these refinements.
Pay-for-Performance Payments
Switching gears to incremental pay-for-performance revenue, you may recall that we mentioned
at last summer’s Investor Day that we had negotiated the potential to receive up to $35 million to
$40 million in “pay-for-performance” revenues from several of our commercial managed care
payors for the period between 2009 and 2011.
We have just completed our first adjudication of these payments reflecting our performance
against the relevant quality measures in 2008, and I am pleased to tell you that we will be
receiving quality incentive payments of approximately $7 million, or 70 percent of the 2009
opportunity.
While the current level of these premium payments is attractive, the truly important point is the
precedent we are setting with these commercial payors, who have decided that rewarding our
hospitals for superior clinical quality is an important part of their business proposition.
Cost Efficiencies
Turning to costs, the fourth quarter provided powerful evidence of the improving cost discipline
by our hospital managers. In the quarter, we were able to limit salaries, wages and benefits
7. (SWB) per adjusted patient day to an increase of only 0.8 percent compared to the fourth quarter
of 2007.
The effectiveness of our labor management has been enhanced by the online tools we’ve
developed under our PMI, or “Performance Management and Innovation” group. These
productivity tools address a critical challenge in our industry – namely the efficient management
of “staffing” in the context of rapidly fluctuating demands. Getting this right can often be the
difference between attractive profitability and unacceptable performance. One of the most
important metrics we use to track staffing productivity is “paid FTEs per adjusted average daily
census.” We saw an improvement of 0.7 percent in this performance metric in Q4’08.
These kinds of savings are the result of our investments to provide real-time, actionable
information to front-line management. Our PMI team has developed an Internet-based staffing
grid, which matches staffing levels by skill mix to the immediate requirements of our current
patient census.
These staffing tools are also forward-looking, assisting us in the management of open positions
and driving our hiring objectives and staff flexing. These tools also assist us by minimizing the
use of contract labor, which we were able to decrease by $6 million dollars compared to Q4’07.
All of these tools are linked to a daily reporting system providing real-time productivity
monitoring and assuring that our performance targets are being met.
Managing our staffing on this hour-by-hour basis has helped us to avoid disruptive personnel
actions including unplanned reductions in force. This improves our bottom line and supports our
objective of improving employee satisfaction.
With that, I’ll turn the floor over to Biggs Porter, our CFO. Biggs. . .
Biggs Porter
Conference Call Script - Q4’08
February 24, 2009
Thank you Steve and good morning everyone.
Before I talk to the quarter, let me make a couple of broad comments on 2008. Our improvement
embedded in our 2008 results may have, at times, become obscured by changes in state funding
and in our hospital portfolio. As you can see from our earning release, after all the discontinued
operations reclassifications last year, our adjusted EBITDA grew from $650 million in 2007 to
$732 million in 2008, an increase of 11 percent. However, this is despite having lost
approximately $54 million in Georgia, Florida and North Carolina Medicaid funding. If you
normalize for the Medicaid funding loss, there would have been an underlying operating
improvement of $129 million, or 20 percent. Some analysts were concerned that we weren’t
growing margin on volume growth in 2008 due to adverse mix shift. This in fact is not the case,
8. even in the third quarter, which became such a focal point, if you consider the Medicaid
reductions we had to offset. Mix shift certainly hurt our result, and remains a significant risk
going into 2009, but it did not eliminate all the benefits of volume and our other efforts.
Since I have touched on the subject of Medicaid, I will comment that we see the stimulus bill as
a risk mitigator of the budget pressures being experienced by several of the states in which we
operate. The effects of enhanced SCHIP and COBRA coverage should be beneficial, but the
effects cannot be reasonably estimated.
Overview
As both Steve and Trevor have discussed, despite the dramatic collapse in discretionary
consumer spending experienced in most sectors of the economy, Tenet’s volumes held up well in
the fourth quarter.
As our pricing remained strong these volumes resulted in solid revenue growth of 4.9 percent.
This growth included a 6.6 percent increase in net patient revenue from commercial managed
care.
As a minor footnote to this increase, and one of the items that drew investor attention in our pre-
release, our fourth quarter revenues included $8 million from what is effectively the partial
reversal of a $17 million charge taken in the second quarter of 2008. This charge related to
graduate medical education reimbursement at one of our California hospitals. This $8 million
reversal does not reflect a successful protest of the issue at this point, but rather confirmation of
the arrangement we have with the county to be reimbursed for 50 percent of any losses we incur
related to the residency program. In terms of normalizing its impact, the $8 million clearly made
a one-time contribution to our fourth quarter results, but should be netted against the earlier $17
million charge when assessing the full year.
You should also note that the $8 million was recorded in “Other Revenue,” and so it had no
impact on our pricing statistics in the fourth quarter.
Controllable Operating Expense
Turning to costs, we had a very strong quarter in terms of operating efficiency. The increase in
total controllable costs per adjusted patient day was held to just 0.8 percent. The bulk of this
accomplishment was achieved in restraint on the salaries, wages and benefits (SWB) line where
the increase was also held to just 0.8 percent. This SW&B result was aided by a 16.7 percent
decline in contract labor expense.
On the “Other Operating Expense” line we saw a 50 percent decline in malpractice expense in
the fourth quarter, falling from $36 million in the fourth quarter of 2007 to $18 million in the
fourth quarter of 2008.
A few analysts viewed this $18 million decline as a unique event, which needed to be backed out
of our results in their assessment of our fourth quarter earnings power. I would argue that
9. backing this out is far too harsh an action. By backing this out, analysts are failing to ascribe
proper value to what Tenet has accomplished through our investments in clinical quality. It is our
belief that one of the many ways these investments have generated returns is through these
declines in malpractice expense.
Let me offer some perspectives on how our malpractice expense in the fourth quarter could be
viewed.
Stepping back to look at the full-year decline, malpractice expense in 2008 was $128 million,
down $35 million, or 22 percent, from $163 million in 2007. However, even this is net of $15
million in charges related to declines in the discount rate used in the calculation. Without that,
the year-over-year decline would have been $50 million.
So, while the fourth quarter’s decline was somewhat larger, the decline through 2008 was also
significant. This suggests that the fourth quarter’s decline is highly consistent with recent
performance and forms a legitimate part of our sustainable earnings power.
Before leaving the topic of cost efficiency, I will comment on the very strong performance
achieved in the fourth quarter sets us a stage for favorable, yet highly credible, assumptions with
regard to cost efficiency in our 2009 outlook, with unevenness of volumes between hospitals and
periods remaining the greatest potential variable.
Bad Debt Expense and Collection Rates
Turning to bad debt expense, the high-level story is mixed. We reported a same-hospital bad debt
expense ratio of 7.5 percent in the fourth quarter, slightly better than the 7.6 percent ratio
reported in our third quarter, but up 110 basis points over the prior year.
The good news on the bad debt front was the continuing decline in uninsured volumes – with
uninsured admissions falling by 5.9 percent in the quarter and uninsured outpatient visits falling
by an even greater, 10.8 percent.
We also made progress on our front-end collections, which increased to 37 percent of total
patient collections, up markedly from 29 percent in the fourth quarter of 2007.
The offset to these sources of good news was deterioration in our collection rates on a year-over-
year basis – both from the uninsured and balance-after.
As disclosed in our 10-K, we have updated our collection rates for the last few quarters to reflect
the effect of discontinued operations, or alternatively stated to exclude collections on those
hospitals, which we have moved to discontinued operations in the last year. On that basis, our
estimated weighted average collection rate from the uninsured and balance-after was 33 percent
in the fourth quarter of 2008, compared to 35 percent in the fourth quarter of 2007. There was an
80 basis point decline between the third and fourth quarter, or about half of the decline
experienced over the last year.
10. Bad debt expense was also adversely affected by pricing increases and improved charge capture
in our emergency departments. It is important, however, that investors understand these pricing
strategies have a net positive impact on our profitability.
You will also find in our 10-K some new disclosure on the estimated cost of providing care for
the uninsured and charity. I will emphasize that these are estimates and are fully burdened. For
2008 these are $362 million, or $6,935 per adjusted admission for uninsured, and $113 million,
or $10,298 per adjusted admission for charity. Since these are fully burdened numbers, you
would need to reduce them by about 40 percent to get to the variable or incremental cash cost of
providing care, before fixed cost absorption. To get the net effect of an uninsured admit you
would reduce the cost by the approximately 10 to 12 cents on the dollar we collect on average
from the uninsured. This brings the rough estimate of net pretax P&L effect down to
approximately $2,500 per uninsured adjusted admission. As there is so much focus on the risk in
2009 of increasing uninsured, we think these disclosures help put that risk into perspective. What
this points out is that although there may be risk of an increasing bad debt expense from the
uninsured, the real bottom line effect is much less. The real economic risk is the loss of a
commercial managed care patient, although that effect is exacerbated when the formerly
commercial patient receives care as an uninsured.
Cash Flow from Operations
Turning to cash and cash flow, we ended the year with $507 million in cash, somewhat higher
than the $375 to $475 million we had projected in our 2008 Outlook.
Our cash position benefited from:
• lower than anticipated capital expenditures, which came in at $130 million,
• the receipt of $34 million from the Reserve Yield Plus Fund, and
• $10 million from our cash initiatives.
Note Exchange
I also want to make a few comments on our recent note exchange which is expected to close next
week.
As you know, the exchange addressed the $1.6 billion maturing in late-2011 and mid-2012.
Our strategy was to eliminate as much of our near-term maturities as we could at an acceptable
price while retaining long-term flexibility. This was not out of concern for our performance, but
rather as a mitigator of capital market risk, particularly in view of the volume of refinancing
which will be placed into the market by others over the next couple of years.
Although the exchange remains open, the results of the early tender period are that $915 million
of the 11’s and $484 million of the 12’s have elected to participate. The notes offered in
exchange have maturities in 2015 and 2018 at coupons of 9 percent and 10 percent, respectively.
They also allow us to issue secured debt at the greater of $3.2 billion, or 4 times EBITDA,
exclusive of our credit agreement, but have no performance tests. This is not a solicitation, but is
11. necessary to explain the financial statement and future financing implications. Based on this, we
anticipate a gain on the retirement of the existing notes of approximately $170 to $190 million,
although this will fluctuate with the market up to the time of close. There will be a corresponding
discount recorded on the new notes, which will be amortized to interest expense over the term of
the notes. We currently estimate 2009 interest payments to increase by $22 million as a result of
the exchange and total interest expense to increase by $50 to $60 million when accrued interest
and the discount amortization is included. To the extent we retire additional debt in the future or
engage in interest rate swaps we may mitigate some of this increase.
Update on Medical Office Buildings
While we are on the topic of liquidity, let me anticipate a popular question regarding our
proposed medical office building (MOB) sales. We still have interested buyers and at this time
have broken the portfolio into at least two pieces: a 21-MOB group for which a buyer is seeking
financing and a 10-MOB group which we are discussing with potential buyers for sale as a group
or individually.
Slide 24 on the Web updates the status of our various balance sheet initiatives. For the remainder
of 2009, these include the USC sale, the effects of the sale of PHN (our Medicare HMO
subsidiary), and a number of other items we have been working on. For conservatism, at this
time, we are not projecting the MOB sales in our cash estimates for this year, although as I said
above, it is still a work in process.
2009 Outlook
Let me now turn to our outlook for 2009.
We have provided a fair amount of detail on our 2009 outlook in both the press release and slides
we posted to the Tenet Web site this morning.
The headline is that we expect adjusted EBITDA to be in a range of $735 million to $800
million. The fact is there are a number of variables related primarily to commercial and
uninsured volumes, collectability and state funding, which create a potentially broader set of
outcomes. You can see from a line item stand point we have communicated a fairly broad set of
ranges.
We have presumed that neither everything bad nor everything good happens in setting the
adjusted EBITDA range, but we have considered a fair amount of adverse mix shift away from
commercial and higher bad debt expense in even the upper end of the range.
While this outlook is based on projected admissions growth of flat to 1 percent, we are
considerably more cautious on commercial volume growth. While we will still drive for
commercial volume growth, due to the current economic environment, the upper end of the
EBITDA range assumes commercial year-over-year declines consistent with 2008. The upper
end of the range also assumes growth in the bad debt rate from Q4 2008 of almost 90 basis
12. points, or $110 million, which would be a rate of approximately 8.5 percent. This would
accommodate lower collection rates, increasing balance-after percentages, and/or less mitigation
from the collection of older accounts.
The lower end of the range, all other things equal, could accommodate greater commercial
volume declines, increases in the uninsured, and/or additional declines in the collectability of
self-pay and balance-after accounts.
Offsetting the pressure on commercial volume and bad debt, we have budgeted cost reduction
initiatives of $150 million in 2009 at the corporate, administrative and hospital level. We also
continue to work additional initiatives in the areas of cost, charge capture and pricing, which are
beyond those included in the range of outcomes.
Slide 23 shows a current “walk-forward” of our adjusted EBITDA from 2008 actual to the range
we have given for 2009.
The biggest change on this chart is the starting point. With 2008 now known, we enter 2009
building on a base of $732 million in prior-year adjusted EBITDA.
At the upper end of the range, we expect the effects of volume and mix to largely offset, because
of the pressures we expect will continue on commercial managed care volumes. Having said that,
we continue to expect lift from managed care pricing, including rate parity adjustments and pay-
for-performance as shown in line five of the slide.
The primary driver of the costs increase on line six of the slide is inflation or other cost increases
we expect before consideration of our cost reduction efforts.
Our expected 2009 cost efficiencies are evident on line seven which shows the expected impact
of our latest round of cost initiatives launched in late-2008. This figure of $150 million indicates
our expectation for a markedly larger contribution and significantly exceeds last summer’s
projections of $29 million.
The walk forward is completed on line nine with an estimate of $27 million in contributed
EBITDA from growth in year-over-year performance anticipated in our newest hospitals, Sierra
Providence East in El Paso and Coastal Carolina.
The walk forward subtotals on line 10 are at the upper end of the range of $800 million. We then
show the $65 million for risk, on line 11, which brings us to the $735 million bottom end of the
range for adjusted EBITDA.
Slide 25 summarizes the range on cash flow and our projected year-end cash balance. It is
important to remind everyone that there are two cash uses in 2009 which will not recur over the
longer term. First, there is the estimated $75 million use of cash for the settlement of two
California wage and hour cases. Second there is the $24 million quarterly use of cash for our
Department of Justice settlement, which is fully retired in the third quarter of 2010.
13. By now, hopefully I have communicated how we applied some conservatism in our outlook
ranges for 2009 to accommodate the uncertainties of the current economy and the corresponding
effects on commercially insured volumes, collectability and uncompensated care. This, along
with the lower starting point, alone explain our 2009 outlook today compared to what we
expressed a year ago. Underneath that conservatism, however, remains the same set of
aggressive actions: to drive paying volumes, including commercial; achieve continuing and
increasing yield from our managed care negotiations; and to reduce cost on a continuous
improvement basis. Although 2009, at this point, remains a difficult year in which to establish
firm expectations, regardless of the variations we may experience, we believe our actions will
enable us to do well in a difficult environment.
As one final note, we would like to announce June 2 as the date of our 2009 Investor Day.
With that, I’ll ask the operator to open the floor for questions. Operator?