Ardent Health Reports Third Quarter 2024 Results Brentwood, Tenn. (

Ardent Health Reports Third Quarter 2024 Results

Brentwood, Tenn. (November 6, 2024) - Ardent Health Partners, Inc. (NYSE ARDT) ("Ardent Health" or the "Company"),

a leading provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the

third quarter ended September 30, 2024.

Third Quarter 2024 Operating and Financial Summary

All comparisons are versus the same prior year period, unless otherwise noted. See the footnotes to the Operating

Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics.

(1) Adjusted EBITDA and Adjusted EBITDAR are non-GAAP financial measures. See Supplemental Non-GAAP Financial Information for

reconciliations of non-GAAP measures to their most comparable GAAP financial measures.

Financial Performance Summary

Total revenue for the third quarter of 2024 grew 5.2% year-over-year to $1.45 billion. This primarily reflects a 3.8% year-

over-year increase in adjusted admissions and 0.9% year-over-year growth in net patient service revenue per adjusted

The third quarter of 2023 benefited from the recognition of approximately $25 million of discrete non-recurring revenue

associated with Medicaid supplemental programs, primarily attributable to a one-time allocation to Oklahoma hospitals

participating in the Supplemental Hospital Offset Payment Program ( SHOPP ). Additionally, in May 2024, the Company

made a strategic decision to transfer certain oncology and infusion services to a health system partner. This transition

resulted in a revenue reduction of more than $10 million in the third quarter of 2024 compared to the same prior year

period, with no material change to adjusted EBITDA. Excluding these items, total revenue growth for the third quarter of

2024 would have been approximately 8%.

For the third quarter of 2024, net income attributable to Ardent Health was $26 million, or $0.19 per basic and diluted

share, compared to $21 million, or $0.17 per basic and diluted share, in the third quarter of 2023.

Adjusted EBITDA for the third quarter of 2024 increased 15.3% year-over-year to $98 million, which represented margin

expansion of 50bps to 6.7%. The adjusted EBITDA growth was primarily driven by higher patient volumes, increased

reimbursement rates, strategic service line optimization, and cost reduction initiatives.

Operating Performance Summary

The following table provides a summary of certain key operating metrics for the third quarter of 2024 compared to the

same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the

metrics below and a full list of key operating metrics.

Admissions for the third quarter of 2024 increased 6.4% year-over-year, modestly faster than the comparable 5.3%

growth in the first half of 2024. The increase was primarily attributable to growth in general medicine, including

strong growth in pulmonology and gastroenterology cases, as well as the ongoing impact of the two-midnight rule.

Surgeries for the third quarter of 2024 increased 0.3% year-over-year, an improvement from a comparable decline of

1.9% during the first half of 2024. The year-over-year growth in total surgeries of 0.3% reflected increases of 0.5%

and 0.2% in inpatient and outpatient surgeries, respectively. As expected, the Company's strategic service line

optimization efforts continued to be a volume headwind for lower margin services, including otolaryngology

however, growth in higher acuity lines, including orthopedics, contributed to a more favorable case mix.

Net patient service revenue per adjusted admission for the third quarter of 2024 increased 0.9% year-over-year. The

growth rate would have been over 3.0%, excluding the aforementioned $25 million in discrete non-recurring revenue

associated with Medicaid supplemental programs recognized during the third quarter of 2023 and the $10 million

year-over-year decrease in revenue related to the oncology and infusion service transfer.

1 Lease-adjusted net leverage is defined as the Company's net debt as of September 30, 2024, plus 8x trailing twelve-month real estate investment

trust ( REIT ) rent expense as of the end of the third quarter of 2024, divided by trailing twelve month Adjusted EBITDAR as of September 30, 2024.

Balance Sheet, Cash Flow Liquidity Update

As previously announced, during the third quarter, the Company amended its term loan credit agreement with lenders to

reprice its term loans. The repricing is expected to generate approximately $5 million in annual interest expense savings

and will provide incremental flexibility to pursue capital allocation priorities.

As of September 30, 2024, the Company had total cash and cash equivalents of $563 million and total debt of $1.1 billion.

The Company's net leverage ratio as of September 30, 2024 was 1.6x, as calculated under the Company's credit

agreements, and its lease-adjusted net leverage ratio1 was 3.5x. Ardent Health expects its lease-adjusted net leverage

ratio will approach a target of 3.0x by the end of 2024, as the impact of the cybersecurity incident in the fourth quarter

rolls off. At the end of the third quarter, the Company's available liquidity was $851 million.

During the third quarter of 2024, net cash provided by operating activities was $90 million, compared to $89 million in

the same prior year period.

The Company acknowledges the devastation left by Hurricane Helene and Hurricane Milton across the southeastern U.S.

Ardent Health's facilities were not in the hurricanes' paths and, therefore, were not impacted by the storms. Additionally,

the Company's supply chain, including its sourcing of IV fluids, has not been impacted to date.

The Company is updating its financial guidance for the full year 2024, increasing revenue and adjusted EBITDA to reflect

third quarter results and continued confidence in its business execution. The Company is lowering net income guidance

due to a delay in the expected timing of collecting business insurance proceeds related to the cybersecurity incident,

partially offset by higher adjusted EBITDA. The Company's expectation for its business insurance claim remains

unchanged, with additional proceeds expected to be collected in 2025. All guidance is current as of the time provided

and is subject to change.

The Company's forecasted guidance is based on current plans and expectations and is subject to a number of known and

unknown uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The

Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on

retirement of debt, legal claim costs (benefits) and impairments of long-lived assets because the Company does not

believe that it can forecast these items with sufficient accuracy. This is due to the inherent difficulty of forecasting the

timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be

reasonably predicted.

Third Quarter 2024 Results Conference Call

The Company will host a conference call to discuss its third quarter financial results on November 7, 2024, at 9 00 a.m.

Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company's

corporate website at https ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to

the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference

United States Live 1-888-596-4144

International Live 1-646-968-2525

To listen to a replay of the teleconference, which will be available through November 14, 2024

United States Replay 1-800-770-2030

International Replay 1-609-800-9909

Ardent Health (NYSE ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S.

With a focus on people and investments in innovative services and technologies, Ardent Health is passionate about

making healthcare better and easier to access. Through its subsidiaries, Ardent Health delivers care through a system of

30 acute care hospitals and more than 200 sites of care with over 1,800 affiliated providers across six states. For more

information, please visit www.ardenthealth.com.

Supplemental Non-GAAP Financial Information

We have included certain financial measures in this press release that have not been prepared in a manner that complies

with U.S. generally accepted accounting principles ( GAAP ), including Adjusted EBITDA and Adjusted EBITDAR. We define

these terms as follows

Adjusted EBITDA. Adjusted EBITDA is defined as net income plus (i) provision for income taxes, (ii) interest expense

and (iii) depreciation and amortization expense (or EBITDA), as adjusted to deduct noncontrolling interest earnings,

and excludes the effects of losses on the extinguishment and modification of debt other non-operating losses

(gains) Cybersecurity Incident recoveries, net of incremental information technology and litigation costs

restructuring, exit and acquisition-related costs expenses incurred in connection with the implementation of Epic

Systems ( Epic ), our integrated health information technology system equity-based compensation expense and

loss (income) from disposed operations.

Adjusted EBITDA is a non-GAAP performance measure used by our management and external users of our financial