Wall Street expects a year-over-year increase in earnings on higher revenues when Surgery Partners (SGRY) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 12, 2024, might help the stock move higher if these key numbers are bette ...

Surgery Partners (SGRY) came out with quarterly earnings of $0.21 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this surgical facilities operator would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Surg ...

BRENTWOOD, Tenn., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners" or the "Company"), a leading short-stay surgical facility owner and operator, today announced results for the second quarter ended June 30, 2024. Revenues increased 14.2% to $762.1 million compared to the prior year period Same-facility revenues increased 9.9% Same-facility cases increased 3.9% Net loss attributable to Surgery Partners, Inc. was $15.5 million Adjusted EBITDA was $118.3 million, repre ...

Investors looking for stocks in the Medical Services sector might want to consider either Surgery Partners (SGRY) or Medpace (MEDP) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with stro ...

Investors interested in stocks from the Medical Services sector have probably already heard of Surgery Partners (SGRY) and Medpace (MEDP) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estim ...

Surgery Partners (SGRY) closed the last trading session at $25.55, gaining 0.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $40.25 indicates a 57.5% upside potential. While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely ...

Surgery Partners, Inc. (NASDAQ:SGRY) Q1 2024 Results Conference Call May 4, 2024 8:30 AM ET Company Participants Dave Doherty - Chief Financial Officer Wayne DeVeydt - Executive Chairman Eric Evans - Chief Executive Officer Conference Call Participants Brian Tanquilut - Jefferies Whit Mayo - SVB Leerink Kevin Fischbeck - Bank of America Andrew Mok - Barclays Sarah James - Cantor Fitzgerald Gary Taylor - TD Cowen Bill Sutherland - The Benchmark Company Jason Cassorla - Citi Cal Sternick - JPMorgan Chase Ben ...

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 March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37576 Surgery Partners, Inc. (Exact name of registrant as specified in its charter) D ...

[First Quarter 2024 Financial Highlights and Outlook](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights%20and%20Outlook) This report details Surgery Partners' strong Q1 2024 financial and operational performance, including revenue and Adjusted EBITDA growth, improved liquidity, and an increased full-year outlook, supported by strategic acquisitions and capital market activities [Management Commentary](index=1&type=section&id=Management%20Commentary) Executive leadership highlighted strong Q1 2024 growth in revenue and Adjusted EBITDA, surpassing internal expectations due to clinical quality, operational execution, physician recruitment, and strategic acquisitions - Strong Q1 growth was driven by a combination of operational execution, physician recruiting, and strategic acquisitions, with same-facility revenue growth exceeding **10%**[2](index=2&type=chunk) - The company recently closed on several acquisitions, including a large system with a specialty surgery hospital, which supports the decision to raise 2024 guidance[2](index=2&type=chunk) - Multiple capital market transactions were completed to enhance the balance sheet, resulting in no material debt maturities until **2030** and capped interest rate exposure[2](index=2&type=chunk) [First Quarter 2024 Performance](index=1&type=section&id=First%20Quarter%202024%20Performance) Surgery Partners reported a 7.7% increase in total revenues to $717.4 million and an 8.2% growth in Adjusted EBITDA to $97.5 million for Q1 2024, driven by strong same-facility revenue growth of 10.2% [Overall Financial Results](index=1&type=section&id=Overall%20Financial%20Results) In Q1 2024, Surgery Partners achieved revenues of $717.4 million, up 7.7% year-over-year, with Adjusted EBITDA growing 8.2% to $97.5 million and a net loss attributable to Surgery Partners, Inc. of $12.4 million Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $717.4M | $666.2M | +7.7% | | Adjusted EBITDA | $97.5M | $90.1M | +8.2% | | Adjusted EBITDA Margin | 13.6% | 13.5% | +0.1 p.p. | | Net Loss Attributable to SGRY | ($12.4M) | ($24.9M) | Improvement | [Operational Metrics](index=1&type=section&id=Operational%20Metrics) Same-facility revenue grew robustly by 10.2% year-over-year, primarily fueled by an 8.8% increase in revenue per case, with total cases rising to 153,392 Q1 2024 Same-Facility Performance vs. Q1 2023 | Metric | Growth Rate | | :--- | :--- | | Same-Facility Revenues | 10.2% | | Same-Facility Revenue per Case | 8.8% | | Same-Facility Cases | 1.3% | [Segment Performance](index=5&type=section&id=Segment%20Performance) The Surgical Facility Services segment was the primary driver of growth, with revenues increasing to $692.7 million and Adjusted EBITDA rising to $126.7 million, while Ancillary Services also showed strong revenue growth Segment Revenues (Q1 2024 vs Q1 2023, $ in millions) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | Surgical Facility Services | $692.7M | $649.0M | | Ancillary Services | $24.7M | $17.2M | Segment Adjusted EBITDA (Q1 2024 vs Q1 2023, $ in millions) | Segment | Q1 2024 Adj. EBITDA | Q1 2023 Adj. EBITDA | | :--- | :--- | :--- | | Surgical Facility Services | $126.7M | $118.8M | | Ancillary Services | ($1.4M) | ($1.4M) | [Financial Position and Liquidity](index=1&type=section&id=Financial%20Position%20and%20Liquidity) As of March 31, 2024, Surgery Partners maintained a solid liquidity position with $185.2 million in cash and cash equivalents and $607.3 million available under its revolving credit facility, with a net leverage ratio of approximately 3.5x - At the end of Q1 2024, the company had cash and cash equivalents of **$185.2 million** and a borrowing capacity of **$607.3 million** under its revolver[4](index=4&type=chunk) - Cash flow from operating activities was **$40.7 million**, compared to **$74.5 million** in Q1 2023, with the decrease due to the timing of collections expected to be received in Q2/Q3 2024[4](index=4&type=chunk) - The ratio of total net debt to EBITDA, per the company's credit agreement, was approximately **3.5x**[5](index=5&type=chunk) [Full Year 2024 Outlook](index=2&type=section&id=Full%20Year%202024%20Outlook) Following a strong start to the year, Surgery Partners raised its full-year 2024 financial guidance, projecting revenues of at least $3.05 billion and Adjusted EBITDA of at least $505 million Raised Full Year 2024 Guidance | Metric | Updated 2024 Guidance | | :--- | :--- | | Revenues | At least $3.05 billion | | Adjusted EBITDA | At least $505 million | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three months ended March 31, 2024, including the statement of operations, selected balance sheet data, and the statement of cash flows [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2024, the company reported operating income of $76.0 million, a substantial increase from $46.4 million in the prior-year period, resulting in a net loss attributable to Surgery Partners, Inc. of $12.4 million Q1 2024 Income Statement Highlights ($ in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $717.4 | $666.2 | | Operating Income | $76.0 | $46.4 | | Net Income | $24.3 | $1.2 | | Net Loss Attributable to SGRY | ($12.4) | ($24.9) | | Diluted EPS | ($0.10) | ($0.20) | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) As of March 31, 2024, Surgery Partners' balance sheet showed total assets of nearly $7.0 billion and total liabilities of $3.6 billion, with total stockholders' equity of approximately $3.0 billion Balance Sheet Data as of March 31, 2024 ($ in millions) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $185.2 | | Total assets | $6,975.6 | | Long-term debt, less current maturities | $2,793.8 | | Total liabilities | $3,614.0 | | Total Surgery Partners, Inc. stockholders' equity | $1,967.3 | [Consolidated Statements of Cash Flows](index=4&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2024, net cash provided by operating activities was $40.7 million, while the company used $83.1 million in investing activities and generated $31.7 million from financing activities Q1 2024 Cash Flow Summary ($ in millions) | Activity | Cash Flow | | :--- | :--- | | Net cash from Operating activities | $40.7 | | Net cash used in Investing activities | ($83.1) | | Net cash from Financing activities | $31.7 | [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of the company's non-GAAP financial measures to their most directly comparable GAAP counterparts, clarifying adjustments for key metrics like Adjusted EBITDA, Free Cash Flow, and Adjusted Net Income [Reconciliation of Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2024 was calculated to be $97.5 million, derived from GAAP income before income taxes with adjustments for interest expense, depreciation, amortization, transaction costs, and non-controlling interests Reconciliation to Adjusted EBITDA (Q1 2024, $ in millions) | Line Item | Amount | | :--- | :--- | | Income before income taxes | $28.7 | | Net income attributable to NCI | ($36.7) | | Interest expense, net | $47.3 | | Depreciation and amortization | $33.7 | | Transaction, integration and acquisition costs | $18.9 | | **Adjusted EBITDA** | **$97.5** | [Reconciliation of Free Cash Flow](index=7&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free Cash Flow for Q1 2024 was negative $9.2 million, a notable decrease from the prior-year quarter, calculated by subtracting distributions to non-controlling interest holders and maintenance capital expenditures from net cash from operating activities Reconciliation to Free Cash Flow (Q1 2024, $ in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $40.7 | | Less: Maintenance capital expenditures | ($9.4) | | Less: Distributions to non-controlling interest holders | ($40.5) | | **Free Cash Flow** | **($9.2)** | [Reconciliation of Adjusted Net Income](index=7&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income) For Q1 2024, adjusted net income attributable to common stockholders was $12.1 million, resulting in an adjusted diluted EPS of $0.10, derived from GAAP net income by adjusting for non-controlling interests, equity-based compensation, and transaction costs Reconciliation to Adjusted Net Income (Q1 2024, $ in millions) | Line Item | Amount | | :--- | :--- | | Net income | $24.3 | | Net income attributable to NCI | ($36.7) | | Transaction, integration and acquisition costs | $18.9 | | Equity-based compensation expense | $4.9 | | **Adjusted net income attributable to common stockholders** | **$12.1** | | **Adjusted diluted EPS** | **$0.10** |

Financial Data and Key Metrics Changes - The company achieved net revenue of $2.74 billion in 2023, reflecting an 8% growth compared to the previous year, with adjusted EBITDA exceeding $438 million, representing a 15% increase [68][70][76] - Adjusted EBITDA margins improved by 100 basis points to 16.0% in 2023, driven by revenue growth, effective cost management, and contributions from equity method investments [68][76][78] - Free cash flow for the full year was approximately $110 million, marking the first year of positive cash flow for the company, although lower than previously projected due to timing-related issues [79][104] Business Line Data and Key Metrics Changes - Same-facility revenue grew over 11% in 2023, with case volume increasing approximately 4% and rate improvement of 7%, driven by acuity mix and enhanced managed care rates [52][55] - The company performed nearly 707,000 cases in 2023, with a 4% increase from 2022, and same-facility cases grew 3.9% for the full year [68][76] - The company expects continued rate improvement in 2024, particularly in orthopedic procedures, as new joint programs are introduced [55][56] Market Data and Key Metrics Changes - Revenue growth in non-consolidated entities exceeded 60% in 2023 compared to the prior year, indicating strong performance in this segment [97] - The company anticipates net revenue of at least $3 billion for 2024, reaffirming its growth outlook amid a strong pipeline of acquisition opportunities [70][105] - The company is focused on expanding its de novo portfolio, with eight centers opened in 2023 and twelve under development for 2024 and early 2025 [98] Company Strategy and Development Direction - The company aims to deploy at least $200 million annually for acquisitions, maintaining a disciplined approach to sourcing and executing strategically important transactions [53][70] - The management team is optimistic about the growth opportunities presented by the shift of more procedures to short-stay surgical facilities, particularly in orthopedic specialties [58][70] - The company is committed to forming long-term partnerships with health systems to enhance its capabilities and expand its market presence [74][98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 goals, citing effective management of inflationary pressures and a strong recruiting pipeline [75][104] - The company anticipates continued margin expansion in 2024, supported by procurement efficiencies and integration benefits from recent acquisitions [81][105] - Management highlighted the importance of the upcoming leap year in 2024, which is expected to provide a favorable comparison for case volume growth [138] Other Important Information - The company completed a significant refinancing of its term loan in December 2023, extending maturity to 2030 and increasing its revolving credit facility to over $700 million [78][102] - The company added nearly 700 new physicians in 2023, with the average net revenue per case from these recruits being significantly higher than previous years [73] Q&A Session Summary Question: What are the economics and opportunities related to ankles and shoulders? - Management highlighted the significant opportunity presented by the removal of ankles and shoulders from the in-patient-only list, which allows for more procedures to be performed in ASCs, enhancing overall growth potential [111][112] Question: What are the plans for remaining debt and cash flow outlook for 2025? - Management discussed the refinancing of the term loan and the potential for interest savings from upcoming notes, indicating a positive cash flow outlook for 2025 [113][114][115] Question: Can you elaborate on the impact of higher acuity procedures on margins? - Management noted that margin expansion is expected from acquisitions and the integration of higher acuity procedures, which are anticipated to drive revenue growth [120][123] Question: What is the expected case growth for 2024? - Management indicated that case growth is predictable due to established relationships with physicians and ongoing recruitment efforts, with a focus on higher acuity procedures [131][132]