Tenet Healthcare Corp (NYSE: THC) stock rose over 2.3% on 21st October, 2020 (Source: Google finance) after the company controlled its net loss from continuing operations attributable to common shareholders of $197 million, versus a loss of $227 million last year. As of October 19, 2020, the company had approximately $3.3 billion of cash on hand and no borrowings under its $1.9 billion line-of-credit facility. Through October 19, 2020, the Company had received about $1.5 billion of Medicare advance payments from the Centers for Medicare and Medicaid Services (CMS). The repayment terms for the Medicare advance payments got recently revised by the federal government with repayments now in stages that begin 12 months from the provider’s receipt of the advance payments. An interest rate of 4 percent will also be assessed on any outstanding balances 29 months from the initial advance. The Company has also received about $890 million of grant aid from federal stimulus relief funds associated with the pandemic.
THC in the third quarter of FY 20 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 31 cents. The company had reported 1.2 percent fall in the adjusted revenue to $4.56 billion in the third quarter of FY 20. The company delivered consolidated Adjusted EBITDA in 3Q20 of $621 million, this excludes a $70 million reversal of COVID stimulus grant income from 2Q20 based on revised guidance all providers received from the federal government in September 2020, or $551 million including the grant income reversal, versus $639 million in 3Q19.
Hospital segment net patient service revenue per adjusted admission up 17% on a same hospital basis versus 3Q19. Ambulatory segment same-facility system-wide revenue per surgical case up 13% versus the prior year. Ambulatory segment Adjusted EBITDA growth of 10% compared to 3Q19 excluding the impact of a $13 million reversal of grant income.
Additionally, the company generated net cash from operations of $593 million in 3Q20 versus $419 million in 3Q19, which represents growth of 42%. The company generated free cash flow in 3Q20 of $507 million, excluding $174 million of stimulus grants and $2 million of Medicare advances received in the quarter, compared to $263 million in 3Q19, which represents growth of 26%.
In addition, during 3Q20, the Company completed a $2.5 billion offering of 6.125% senior unsecured notes and retired all of its previously-outstanding 8.125% unsecured notes that were due in April 2022. This transaction eliminated any significant debt maturities until June 2023 as well as reduces future annual cash interest expense payments by approximately $50 million.