ardt-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________

FORM 10-Q

_______________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended June 30, 2024

			or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

			Commission File Number: 001-42180

			Ardent Health Partners, Inc.
			(Exact name of registrant as specified in its charter)


Delaware		61-1764793
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
340 Seven Springs Way, Suite 100 Brentwood, Tennessee		37027
(Address of principal executive offices)		(Zip Code)
	(615) 296-3000
(Registrant’s telephone number, including area code)
Ardent Health Partners, LLC
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

ARDT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Smaller reporting company

☐

Non-accelerated filer

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 14, 2024, the registrant had 142,763,328 shares of common stock outstanding.

Table of Con tents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Income Statements for the three and six months ended June 30, 2024 and 2023 (Unaudited)	1
	Condensed Consolidated Comprehensive Income Statements for the three and six months ended June 30, 2024 and 2023 (Unaudited)	2
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited)	4
	Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45


PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	47
Item 6.	Exhibits	47
Signatures		49

Table of Con tents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ARDENT HEALTH PARTNERS, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

Unaudited

(Dollars in thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Total revenue	$	1,470,920	$	1,368,734	$	2,909,966	$	2,685,722
Expenses:
Salaries and benefits	624,058		598,291		1,245,567		1,190,359
Professional fees	271,903		234,720		536,597		468,571
Supplies	259,391		252,787		517,172		494,165
Rents and leases	24,986		25,407		49,841		48,724
Rents and leases, related party	36,965		36,364		74,164		72,501
Other operating expenses	115,319		108,830		237,151		217,384
Government stimulus income	—		(8,324)		—		(8,463)
Interest expense	18,160		18,692		37,421		36,813

Depreciation and amortization	36,312		34,670		71,663		69,372
Loss on debt extinguishment	1,898		—		1,898		—
Other non-operating gains	(255)		(520)		(255)		(522)

Total operating expenses	1,388,737		1,300,917		2,771,219		2,588,904
Income before income taxes	82,183		67,817		138,747		96,818
Income tax expense	15,222		12,111		25,935		17,330
Net income	66,961		55,706		112,812		79,488
Net income attributable to noncontrolling interests	24,191		22,630		42,995		42,269
Net income attributable to Ardent Health Partners, Inc.	$	42,770	$	33,076	$	69,817	$	37,219

Net income per share:
Basic and diluted	$	0.34	$	0.26	$	0.55	$	0.30
Weighted-average common shares outstanding:
Basic and diluted	126,115,301		126,115,301		126,115,301		126,115,301

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Con tents

ARDENT HEALTH PARTNERS, INC.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

Unaudited

(Dollars in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	66,961	$	55,706	$	112,812	$	79,488
Other comprehensive (loss) income
Change in fair value of interest rate swap	(3,051)		6,209		(2,100)		33
Other comprehensive (loss) income before income taxes	(3,051)		6,209		(2,100)		33
Income tax (benefit) expense related to other comprehensive (loss) income items	(796)		1,620		(548)		8
Other comprehensive (loss) income, net of income taxes	(2,255)		4,589		(1,552)		25
Comprehensive income	64,706		60,295		111,260		79,513
Net income attributable to noncontrolling interests	24,191		22,630		42,995		42,269
Comprehensive income attributable to Ardent Health Partners, Inc.	$	40,515	$	37,665	$	68,265	$	37,244

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Con tents

ARDENT HEALTH PARTNERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(Dollars in thousands)


			June 30, 2024 (1)						December 31, 2023 (1)

SEC Form 10-Q filed by Ardent Health Partners Inc.