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8-K - FORM 8-K - AMSURG CORP | g27729e8vk.htm |
Exhibit 99
Press
Release
Contact: | Claire M. Gulmi | |||
Executive Vice President and | ||||
Chief Financial Officer | ||||
(615) 665-1283 |
AMSURG ANNOUNCES SECOND-QUARTER NET EARNINGS
FROM CONTINUING OPERATIONS OF $0.41 PER DILUTED SHARE
FROM CONTINUING OPERATIONS OF $0.41 PER DILUTED SHARE
RESULTS INCLUDE 1% GROWTH IN SAME-CENTER REVENUE AND TRANSACTION
COSTS OF $0.02 PER DILUTED SHARE
AFFIRMS 2011 FINANCIAL GUIDANCE
COSTS OF $0.02 PER DILUTED SHARE
NASHVILLE, Tenn. (July 21, 2011) Christopher A. Holden, President and Chief Executive Officer
of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the second quarter ended June
30, 2011. Revenues for the quarter rose 7% to $188,730,000 from $175,698,000 for the second
quarter of 2010. Net earnings from continuing operations attributable to AmSurg common
shareholders were $12,758,000, or $0.41 per diluted share, for the second quarter of 2011 compared
with $12,716,000, or $0.41 per diluted share, for the second quarter of 2010. As anticipated, the
results for the second quarter of 2011 included an incremental negative impact of $0.01 per diluted
share from the revision of the Medicare payment system for ASCs and $0.03 per diluted share from
the higher interest costs related to the refinancing of the Companys credit facility in May 2010
and a higher effective tax rate. In addition, these results include acquisition transaction costs
of $0.02 per diluted share related to the Companys definitive merger agreement with National
Surgical Care, announced in April 2011.
Revenues for the first six months of 2011 increased 7% to $367,600,000 from $343,725,000 for
the same period in 2010. Net earnings from continuing operations attributable to AmSurg common
shareholders were $24,433,000, or $0.78 per diluted share, for the first half of 2011 compared with
$25,117,000, or $0.82 per diluted share, for first six months of 2010. The results for the first
six months of 2011 included an incremental negative impact of $0.02 per diluted share from the
revision of the Medicare payment system for ASCs, $0.07 per diluted share from the higher interest
costs related to the credit facility refinancing and a higher effective tax rate, and $0.02 per
diluted share for acquisition transaction costs.
We are pleased to see modest strengthening in our comparable-quarter performance for the
second quarter versus the first quarter, but our procedure volume, revenues, margins and earnings
continue to be negatively affected by the weak national economy and high unemployment. Our revenue
growth for the second quarter, which reflected a 7% increase in procedures, was produced largely
from the expansion of our centers in operation during the previous year, to 208 at the end of the
second quarter of 2011 from 197 at the same time in 2010. We also benefited from a 1% increase in
same-center revenue for the comparable quarters. EBITDA less noncontrolling interests was 16.7% of
revenue for the second quarter of 2011,
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which included a negative impact of approximately 60 basis points from the NSC transaction costs,
compared with 17.5% for the second quarter last year.
We added five new centers during the second quarter, comprised of four acquisitions and the
opening of a de novo center. The four acquisitions were among the seven centers we had expected to
acquire by year-end 2010. We acquired another one of those centers in the first quarter of 2011,
have completed the acquisition of the sixth of those centers since the end of the second quarter
and are no longer pursuing the acquisition of the seventh center. We ended the second quarter of
2011 with four centers under letter of intent, including the one center since acquired in the third
quarter, and with another center under development, which we expect to open in 2012.
Net cash flows from operating activities were $61.7 million for the second quarter of 2011
compared with $52.6 million for the second quarter of 2010. Excluding distributions to
noncontrolling interests, net cash flows from operations were $26.2 million for the latest quarter
compared with $17.2 million for the second quarter of 2010, which drove an 11% increase in net cash
flows from operations excluding distributions to noncontrolling interests for the first six months
of 2011. At the end of the second quarter, the ratio of total debt to trailing 12 months EBITDA
was 2.4, we had cash and cash equivalents of $33.0 million and our availability under our revolving
credit facility was $252 million.
On April 7, 2011, we announced a definitive agreement to acquire National Surgical Care
(NSC), which we originally expected to complete before the end of the second quarter, subject to
normal closing conditions, regulatory approvals and clearance under the Hart-Scott-Rodino Act. We
continue to work with NSC toward meeting the conditions to close this transaction. We will
incorporate the specific impact of the transaction into our guidance for 2011 only after the
transaction is complete. As a result, today, we affirm our existing guidance for 2011 revenue and
net earnings from continuing operations per diluted share attributable to common shareholders, and
we establish our guidance for the third quarter of 2011, neither of which includes any future
expected impact from the NSC transaction:
| Revenues in a range of $740 million to $770 million for 2011. | ||
| Same-center revenues revised to a new range of 0% to 1% for 2011 from the previous range of 0% to a negative 1%. | ||
| The addition of 18 to 20 new centers for the year, not including the NSC transaction. | ||
| Net cash flow provided by operating activities, less distributions to noncontrolling interests, in a range of $90 million to $95 million. | ||
| Net earnings from continuing operations per diluted share attributable to common shareholders for 2011 in a range of $1.64 to $1.68, which includes a negative $0.05 impact from the effect of the revised Medicare payment system, a negative $0.07 impact from higher interest costs related to the refinancing of our revolving credit facility and the higher effective tax rate, and acquisition transaction costs incurred in the second quarter of $0.02 per diluted share related to the NSC transaction. | ||
| Net earnings from continuing operations per diluted share attributable to common shareholders for the third quarter of 2011 in a range of $0.42 to $0.44 per diluted share, including a negative $0.01 impact from the effect of the revised Medicare payment system revision. |
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The information contained in the preceding paragraphs is forward-looking information, and the
attainment of these targets is dependent not only on AmSurgs achievement of itsassumptions
discussed above, but also on the risks and uncertainties listed below that could cause actual
results, performance or developments to differ materially from those expressed or implied by this
forward-looking information.
Mr. Holden concluded, We are encouraged by the positive same-center revenues achieved for the
second quarter of 2011, but we remain cautious about the sustainability of this improvement in the
second half of the year due to the weak economic environment and continuing high unemployment.
Moving into 2012, our same-center performance will benefit from the completion of reductions in
Medicare rate reimbursement in 2011, with no scheduled reduction in Medicare rates for 2012 for the
first time in four years. In addition, we have now cycled the negative comparable-quarter impact
of our refinancing at the end of May 2010. We continue to expect the full-year financial impact in
2012 of centers added in 2011 will be significantly more beneficial than their impact in 2011.
A number of compelling factors also support our longer-term growth prospects, including the
aging U.S. population, substantially improved healthcare access for previously uninsured and
underserved populations, and ongoing healthcare technology advances that enable additional surgical
procedures to migrate from inpatient to outpatient venues. Due in part to the national concern over
healthcare quality and the relentless rise in healthcare costs, there is also growing recognition
among payers that freestanding ASCs provide high quality in the most affordable modality for many
surgical procedures and that a substantial majority of these procedures are still being performed
in much more expensive venues. As the countrys leading operator of freestanding ambulatory
surgery centers, we are confident AmSurg is favorably positioned to leverage these strong industry
dynamics to drive long-term growth in earnings and shareholder value.
AmSurg Corp. will hold a conference call to discuss this release today at 5:00 p.m. Eastern
time. Investors will have the opportunity to listen to the conference call over the Internet by
going to www.amsurg.com and clicking Investors or by going to www.earnings.com at least 15
minutes early to register, download, and install any necessary audio software. For those who
cannot listen to the live broadcast, a replay will be available at these sites shortly after the
call and continue for 30 days.
This press release contains forward-looking statements. These statements, which have been
included in reliance on the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements
may be affected by the important factors, among others, set forth in AmSurgs Annual Report on Form
10-K for the fiscal year ended December 31, 2010 and other filings with the Securities and Exchange
Commission, including the following risks: the risk that payments from third-party payors,
including government healthcare programs, may decrease or not increase as the Companys costs
increase; adverse developments affecting the medical practices of the Companys physician partners;
the Companys ability to maintain favorable relations with its physician partners; the Companys
ability to acquire and develop additional surgery centers on favorable terms; the Companys ability
to grow revenues by increasing procedure volume while maintaining its operating margins and
profitability at its existing centers; the Companys ability
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to manage the growth in its business; the Companys ability to obtain sufficient capital resources
to complete acquisitions and develop new surgery centers; the Companys ability physician partners,
managed care contracts, patients and strategic relationships; adverse weather and other factors
beyond the Companys control that may affect the Companys surgery centers; adverse impacts on the
Companys business associated with current and future economic conditions; the Companys failure to
comply with applicable laws and regulations; the risk of changes in legislation, regulations or
regulatory interpretations that may negatively affect the Company; the risk of becoming subject to
federal and state investigation; the risk from an unpredictable impact of the Health Reform Law;
the risk of regulatory changes that may obligate the Company to buy out interests of physicians who
are minority owners of its surgery centers; potential liabilities associated with the Companys
status as a general partner of limited partnerships; liabilities for claims brought against our
facilities; the Companys legal responsibility to minority owners of its surgery centers, which may
conflict with its interests and prevent it from acting solely in its best interests; risks
associated with the potential write-off of the impaired portion of intangible assets; and potential
liability relating to the tax deductibility of goodwill. Consequently, actual results, performance
or developments may differ materially from the forward-looking statements included above. AmSurg
disclaims any intent or obligation to update these forward-looking statements.
AmSurg Corp. acquires, develops and operates ambulatory surgery centers in partnership with
physician practice groups throughout the United States. At June 30, 2011, AmSurg owned a majority
interest in 208 continuing centers in operation and had one center under development.
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AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
Statement of Earnings Data: | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues |
$ | 188,730 | $ | 175,698 | $ | 367,600 | $ | 343,725 | ||||||||
Operating expenses: |
||||||||||||||||
Salaries and benefits |
57,492 | 51,451 | 113,102 | 102,244 | ||||||||||||
Supply cost |
24,254 | 22,701 | 47,035 | 44,768 | ||||||||||||
Other operating expenses |
40,663 | 37,923 | 78,669 | 74,621 | ||||||||||||
Depreciation and amortization |
6,161 | 5,856 | 12,102 | 11,523 | ||||||||||||
Total operating expenses |
128,570 | 117,931 | 250,908 | 233,156 | ||||||||||||
Operating income |
60,160 | 57,767 | 116,692 | 110,569 | ||||||||||||
Interest expense |
3,633 | 3,163 | 7,576 | 5,031 | ||||||||||||
Earnings from continuing operations before income taxes |
56,527 | 54,604 | 109,116 | 105,538 | ||||||||||||
Income tax expense |
8,949 | 9,088 | 17,263 | 17,521 | ||||||||||||
Net earnings from continuing operations |
47,578 | 45,516 | 91,853 | 88,017 | ||||||||||||
Discontinued operations: |
||||||||||||||||
(Loss) earnings from operations of discontinued interests in surgery centers,
net of income tax |
(117 | ) | 1,112 | 417 | 2,123 | |||||||||||
Loss on disposal of discontinued interests in surgery centers, net of income tax |
(1,084 | ) | | (1,265 | ) | | ||||||||||
Net (loss) earnings from discontinued operations |
(1,201 | ) | 1,112 | (848 | ) | 2,123 | ||||||||||
Net earnings |
46,377 | 46,628 | 91,005 | 90,140 | ||||||||||||
Less net earnings attributable to noncontrolling interests: |
||||||||||||||||
Net earnings from continuing operations |
34,820 | 32,800 | 67,420 | 62,900 | ||||||||||||
Net (loss) earnings from discontinued operations |
(73 | ) | 686 | 262 | 1,401 | |||||||||||
Total net earnings attributable to noncontrolling interests |
34,747 | 33,486 | 67,682 | 64,301 | ||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 11,630 | $ | 13,142 | $ | 23,323 | $ | 25,839 | ||||||||
Amounts attributable to AmSurg Corp. common shareholders: |
||||||||||||||||
Earnings from continuing operations, net of income tax |
$ | 12,758 | $ | 12,716 | $ | 24,433 | $ | 25,117 | ||||||||
Discontinued operations, net of income tax |
(1,128 | ) | 426 | (1,110 | ) | 722 | ||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 11,630 | $ | 13,142 | $ | 23,323 | $ | 25,839 | ||||||||
Earnings per share-basic: |
||||||||||||||||
Net earnings from continuing operations attributable to
AmSurg Corp. common shareholders |
$ | 0.42 | $ | 0.42 | $ | 0.80 | $ | 0.83 | ||||||||
Net (loss) earnings from discontinued operations attributable to
AmSurg Corp. common shareholders |
(0.04 | ) | 0.01 | (0.04 | ) | 0.02 | ||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 0.38 | $ | 0.43 | $ | 0.77 | $ | 0.85 | ||||||||
Earnings per share-diluted: |
||||||||||||||||
Net earnings from continuing operations attributable to
AmSurg Corp. common shareholders |
$ | 0.41 | $ | 0.41 | $ | 0.78 | $ | 0.82 | ||||||||
Net (loss) earnings from discontinued operations attributable to
AmSurg Corp. common shareholders |
(0.04 | ) | 0.01 | (0.04 | ) | 0.02 | ||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 0.37 | $ | 0.43 | $ | 0.75 | $ | 0.84 | ||||||||
Weighted average number of shares and share equivalents (000s): |
||||||||||||||||
Basic |
30,415 | 30,239 | 30,418 | 30,226 | ||||||||||||
Diluted |
31,335 | 30,655 | 31,180 | 30,685 |
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AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands, except per share amounts)
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands, except per share amounts)
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
Operating Data: | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Continuing centers in operation at end of period |
208 | 197 | 208 | 197 | ||||||||||||
Average number of continuing centers in operation |
208 | 197 | 205 | 196 | ||||||||||||
New centers added during the period |
5 | 1 | 6 | 2 | ||||||||||||
Centers discontinued during the period |
| | 2 | | ||||||||||||
Centers under development/not opened at end of period |
1 | 1 | 1 | 1 | ||||||||||||
Centers under letter of intent at end of period |
4 | 6 | 4 | 6 | ||||||||||||
Average revenue per center |
$ | 909 | $ | 894 | $ | 1,791 | $ | 1,755 | ||||||||
Same center revenues increase (decrease) |
1 | % | (2 | %) | 1 | % | (2 | %) | ||||||||
Procedures performed during the period |
340,049 | 316,962 | 660,076 | 617,672 | ||||||||||||
Income tax expense attributable to noncontrolling interests |
$ | 175 | $ | 213 | $ | 304 | $ | 399 | ||||||||
Reconciliation of net earnings to EBITDA (1): |
||||||||||||||||
Net earnings from continuing operations attributable to AmSurg Corp.
common shareholders |
$ | 12,758 | $ | 12,716 | $ | 24,433 | $ | 25,117 | ||||||||
Add: income tax expense |
8,949 | 9,088 | 17,263 | 17,521 | ||||||||||||
Add: interest expense, net |
3,633 | 3,163 | 7,576 | 5,031 | ||||||||||||
Add: depreciation and amortization |
6,161 | 5,856 | 12,102 | 11,523 | ||||||||||||
EBITDA |
$ | 31,501 | $ | 30,823 | $ | 61,374 | $ | 59,192 | ||||||||
(1) | EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity. EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA as defined. |
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AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands)
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands)
June 30, | December 31, | |||||||
Balance Sheet Data: | 2011 | 2010 | ||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 32,954 | $ | 34,147 | ||||
Accounts receivable, net of allowance of $13,719 and $13,070, respectively |
70,848 | 67,617 | ||||||
Supplies inventory |
10,363 | 10,157 | ||||||
Deferred income taxes |
2,073 | 1,509 | ||||||
Prepaid and other current assets |
16,281 | 18,660 | ||||||
Current assets held for sale |
264 | 866 | ||||||
Total current assets |
132,783 | 132,956 | ||||||
Property and equipment, net |
121,707 | 119,167 | ||||||
Goodwill |
964,970 | 894,497 | ||||||
Intangible assets, net |
15,921 | 11,361 | ||||||
Long-term assets held for sale |
87 | 7,897 | ||||||
Total assets |
$ | 1,235,468 | $ | 1,165,878 | ||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 7,826 | $ | 6,648 | ||||
Accounts payable |
11,485 | 15,291 | ||||||
Accrued salaries and benefits |
18,191 | 17,952 | ||||||
Other accrued liabilities |
4,158 | 3,136 | ||||||
Current liabilities held for sale |
66 | 536 | ||||||
Total current liabilities |
41,726 | 43,563 | ||||||
Long-term debt |
293,070 | 283,215 | ||||||
Deferred income taxes |
102,773 | 90,089 | ||||||
Other long-term liabilities |
20,688 | 24,404 | ||||||
Noncontrolling interests redeemable |
165,688 | 147,740 | ||||||
Equity: |
||||||||
Common stock, no par value 70,000,000 shares authorized, 31,282,439 and
31,039,770 shares outstanding, respectively |
171,342 | 171,522 | ||||||
Retained earnings |
416,384 | 393,061 | ||||||
Accumulated other comprehensive loss, net of income taxes |
| (515 | ) | |||||
Total AmSurg Corp. equity |
587,726 | 564,068 | ||||||
Noncontrolling interests non-redeemable |
23,797 | 12,799 | ||||||
Total equity |
611,523 | 576,867 | ||||||
Total liabilities and equity |
$ | 1,235,468 | $ | 1,165,878 | ||||
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AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands)
Unaudited Selected Consolidated Financial and Operating Data, continued
(Dollars in thousands)
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
Statement of Cash Flow Data: | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net earnings |
$ | 46,377 | $ | 46,628 | $ | 91,005 | $ | 90,140 | ||||||||
Adjustments to reconcile net earnings to net cash flows provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
6,156 | 5,856 | 12,102 | 11,523 | ||||||||||||
Net loss on sale of long-lived assets |
(465 | ) | | (363 | ) | | ||||||||||
Share-based compensation |
1,578 | 1,309 | 3,171 | 2,540 | ||||||||||||
Excess tax benefit from share-based compensation |
(61 | ) | (23 | ) | (463 | ) | (69 | ) | ||||||||
Deferred income taxes |
5,814 | 4,339 | 11,460 | 8,045 | ||||||||||||
Increase (decrease) in cash and cash equivalents, net of effects of acquisition and dispositions, due to changes in: |
||||||||||||||||
Accounts receivable, net |
(290 | ) | (1,916 | ) | (1,534 | ) | (2,882 | ) | ||||||||
Supplies inventory |
141 | 207 | 67 | 225 | ||||||||||||
Prepaid and other current assets |
1,144 | 760 | 2,506 | 1,895 | ||||||||||||
Accounts payable |
(1,590 | ) | (1,120 | ) | (3,737 | ) | (2,773 | ) | ||||||||
Accrued expenses and other liabilities |
2,666 | (3,908 | ) | (1,866 | ) | (2,385 | ) | |||||||||
Other, net |
275 | 428 | 677 | 625 | ||||||||||||
Net cash flows provided by operating activities |
61,745 | 52,560 | 113,025 | 106,884 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Acquisition of interest in surgery centers and related transactions |
(41,979 | ) | (5,526 | ) | (45,674 | ) | (33,201 | ) | ||||||||
Acquisition of property and equipment |
(5,959 | ) | (4,021 | ) | (10,303 | ) | (7,531 | ) | ||||||||
Proceeds
from the sale of interests in surgery centers |
3 | | 3,369 | | ||||||||||||
Net cash flows used in investing activities |
(47,935 | ) | (9,547 | ) | (52,608 | ) | (40,732 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from long-term borrowings |
57,364 | 103,068 | 72,984 | 139,689 | ||||||||||||
Repayment on long-term borrowings |
(40,076 | ) | (113,243 | ) | (64,852 | ) | (139,156 | ) | ||||||||
Distributions to noncontrolling interests |
(35,497 | ) | (35,392 | ) | (67,360 | ) | (65,621 | ) | ||||||||
Proceeds from issuance of common stock upon exercise of stock options |
891 | 246 | 4,628 | 542 | ||||||||||||
Repurchase of common stock |
| | (6,185 | ) | | |||||||||||
Capital contributions and ownership transactions by noncontrolling interests |
675 | 3 | 698 | (137 | ) | |||||||||||
Excess tax benefit from share-based compensation |
61 | 23 | 463 | 69 | ||||||||||||
Financing cost incurred |
(1,982 | ) | (4,377 | ) | (1,986 | ) | (4,402 | ) | ||||||||
Net cash flows used in financing activities |
(18,564 | ) | (49,672 | ) | (61,610 | ) | (69,016 | ) | ||||||||
Net decrease in cash and cash equivalents |
(4,754 | ) | (6,659 | ) | (1,193 | ) | (2,864 | ) | ||||||||
Cash and cash equivalents, beginning of period |
37,708 | 33,172 | 34,147 | 29,377 | ||||||||||||
Cash and cash equivalents, end of period |
$ | 32,954 | $ | 26,513 | $ | 32,954 | $ | 26,513 | ||||||||
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AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
Presented below is certain statement of earnings and operating data for 2011 and 2010,
which have been restated in order to present additional discontinued operations.
For the Year | ||||||||||||||||||||||||
For the Three Months | Ended | |||||||||||||||||||||||
March 31, | March 31, | June 30, | Sept. 30, | Dec. 31, | Dec. 31, | |||||||||||||||||||
Statement of Earnings Data: | 2011 | 2010 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Revenues |
$ | 178,870 | $ | 168,027 | $ | 175,698 | $ | 176,343 | $ | 183,371 | $ | 703,439 | ||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Salaries and benefits |
55,610 | 50,793 | 51,451 | 53,350 | 56,215 | 211,809 | ||||||||||||||||||
Supply cost |
22,781 | 22,067 | 22,701 | 23,155 | 23,807 | 91,730 | ||||||||||||||||||
Other operating expenses |
38,006 | 36,698 | 37,923 | 36,918 | 36,648 | 148,187 | ||||||||||||||||||
Depreciation and amortization |
5,941 | 5,667 | 5,856 | 6,975 | 6,430 | 24,928 | ||||||||||||||||||
Total operating expenses |
122,338 | 115,225 | 117,931 | 120,398 | 123,100 | 476,654 | ||||||||||||||||||
Operating income |
56,532 | 52,802 | 57,767 | 55,945 | 60,271 | 226,785 | ||||||||||||||||||
Interest expense |
3,943 | 1,868 | 3,163 | 4,040 | 4,415 | 13,486 | ||||||||||||||||||
Earnings from continuing operations before income taxes |
52,589 | 50,934 | 54,604 | 51,905 | 55,856 | 213,299 | ||||||||||||||||||
Income tax expense |
8,314 | 8,433 | 9,088 | 7,644 | 8,626 | 33,791 | ||||||||||||||||||
Net earnings from continuing operations |
44,275 | 42,501 | 45,516 | 44,261 | 47,230 | 179,508 | ||||||||||||||||||
Net earnings (loss) from discontinued operations |
353 | 1,011 | 1,112 | 874 | (2,009 | ) | 988 | |||||||||||||||||
Net earnings |
44,628 | 43,512 | 46,628 | 45,135 | 45,221 | 180,496 | ||||||||||||||||||
Less net earnings attributable to noncontrolling interests: |
||||||||||||||||||||||||
Net earnings from continuing operations |
32,600 | 30,100 | 32,800 | 31,417 | 34,047 | 128,364 | ||||||||||||||||||
Net earnings from discontinued operations |
335 | 715 | 686 | 600 | 306 | 2,307 | ||||||||||||||||||
Total net earnings attributable to noncontrolling interests |
32,935 | 30,815 | 33,486 | 32,017 | 34,353 | 130,671 | ||||||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 11,693 | $ | 12,697 | $ | 13,142 | $ | 13,118 | $ | 10,868 | $ | 49,825 | ||||||||||||
Amounts attributable to AmSurg Corp. common shareholders: |
||||||||||||||||||||||||
Earnings from continuing operations, net of income tax |
$ | 11,675 | $ | 12,402 | $ | 12,716 | $ | 12,844 | $ | 13,183 | $ | 51,145 | ||||||||||||
Discontinued operations, net of income tax |
18 | 295 | 426 | 274 | (2,315 | ) | (1,320 | ) | ||||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 11,693 | $ | 12,697 | $ | 13,142 | $ | 13,118 | $ | 10,868 | $ | 49,825 | ||||||||||||
Earnings per share-basic: |
||||||||||||||||||||||||
Net earnings from continuing operations attributable to
AmSurg Corp. common shareholders |
$ | 0.38 | $ | 0.41 | $ | 0.42 | $ | 0.42 | $ | 0.43 | $ | 1.69 | ||||||||||||
Net earnings (loss) from discontinued operations attributable
to AmSurg Corp. common shareholders |
0.00 | 0.01 | 0.01 | 0.01 | (0.08 | ) | (0.04 | ) | ||||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 0.38 | $ | 0.42 | $ | 0.43 | $ | 0.43 | $ | 0.36 | $ | 1.65 | ||||||||||||
Earnings per share diluted: |
||||||||||||||||||||||||
Net earnings from continuing operations attributable to
AmSurg Corp. common shareholders |
$ | 0.38 | $ | 0.40 | $ | 0.41 | $ | 0.42 | $ | 0.43 | $ | 1.67 | ||||||||||||
Net earnings (loss) from discontinued operations attributable to
AmSurg Corp. common shareholders |
0.00 | 0.01 | 0.01 | 0.01 | (0.08 | ) | (0.04 | ) | ||||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders |
$ | 0.38 | $ | 0.41 | $ | 0.43 | $ | 0.43 | $ | 0.35 | $ | 1.62 | ||||||||||||
Weighted average number of shares and share equivalents (000s): |
||||||||||||||||||||||||
Basic |
30,420 | 30,212 | 30,239 | 30,251 | 30,318 | 30,255 | ||||||||||||||||||
Diluted |
31,024 | 30,716 | 30,655 | 30,620 | 30,763 | 30,689 |
- MORE -
AMSG Reports Second-Quarter Results
Page 10
July 21, 2011
Page 10
July 21, 2011
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
Presented below is certain statement of earnings and operating data for 2011 and 2010, which
have been restated in order to present additional discontinued operations.
For the Year | ||||||||||||||||||||||||
For the Three Months | Ended | |||||||||||||||||||||||
March 31, | March 31, | June 30, | Sept. 30, | Dec. 31, | Dec. 31, | |||||||||||||||||||
Operating Data: | 2011 | 2010 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Procedures |
320,027 | 300,710 | 316,962 | 319,870 | 330,045 | 1,267,587 | ||||||||||||||||||
Reconciliation of net earnings to EBITDA (1): |
||||||||||||||||||||||||
Net earnings from continuing operations attributable to
AmSurg Corp. common shareholders |
$ | 11,675 | $ | 12,402 | $ | 12,716 | $ | 12,844 | $ | 13,183 | $ | 51,145 | ||||||||||||
Add: income tax expense |
8,314 | 8,433 | 9,088 | 7,644 | 8,626 | 33,791 | ||||||||||||||||||
Add: interest expense, net |
3,943 | 1,868 | 3,163 | 4,040 | 4,415 | 13,486 | ||||||||||||||||||
Add: depreciation and amortization |
5,941 | 5,667 | 5,856 | 6,975 | 6,430 | 24,928 | ||||||||||||||||||
EBITDA |
$ | 29,873 | $ | 28,370 | $ | 30,823 | $ | 31,503 | $ | 32,654 | $ | 123,350 | ||||||||||||
(1) | EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity. EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA as defined. |
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