Surgery Partners(SGRY) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2024 increased 14.3% to $770.4 million from$ 674.1 million in Q3 2023[70] - Adjusted EBITDA for Q3 2024 rose 21.9% to $128.6 million compared to$ 105.5 million in Q3 2023[70] - Patient service revenues increased 13.7% to $753.2 million for Q3 2024, up from$ 662.3 million in Q3 2023[78] - Revenues for the nine months ended September 30, 2024, were $2,249.9 million, an increase of 12.0% from$ 2,007.9 million in the same period of 2023[81] - Patient service revenues increased by 11.6% to $2,206.6 million for the nine months ended September 30, 2024, driven by an 8.7% increase in same-facility revenues[83] Operational Metrics - Days adjusted same-facility revenues for Q3 2024 increased 4.2% year-over-year, driven by a 3.7% increase in same-facility case volumes[70] - As of September 30, 2024, the company operated 166 surgical facilities, including 147 ASCs and 19 surgical hospitals across 33 states[70] - Orthopedics and pain management represented 40.4% of cases performed in Q3 2024, up from 35.7% in Q3 2023[75] Expenses and Costs - Cost of revenues increased to$ 592.9 million for Q3 2024, up from $508.3 million in Q3 2023, representing 77.0% of revenues compared to 75.4%[79] - General and administrative expenses decreased to$ 29.2 million in Q3 2024 from $36.8 million in Q3 2023, accounting for 3.8% of revenues versus 5.5%[79] - Depreciation and amortization expenses rose to$ 50.2 million in Q3 2024 from $28.9 million in Q3 2023, representing 6.5% of revenues compared to 4.3%[80] - Transaction and integration costs increased to$ 29.4 million in Q3 2024 from $12.8 million in Q3 2023, primarily related to ongoing development initiatives and acquisitions[80] Net Income and Loss - Net loss attributable to Surgery Partners, Inc. was$ 31.7 million in Q3 2024, compared to a net loss of $4.9 million in Q3 2023[77] - Net loss attributable to Surgery Partners, Inc. was$ (59.6) million for the nine months ended September 30, 2024, compared to $(10.9) million in the same period of 2023[81] - Net income attributable to non-controlling interests for Q3 2024 was$ (38.1) million, compared to $(34.6) million in Q3 2023[91] Cash and Financing - Cash and cash equivalents stood at$ 221.8 million with $595.8 million of borrowing capacity under the Revolver as of September 30, 2024[70] - Net cash provided by financing activities was$ 214.0 million for the nine months ended September 30, 2024, compared to net cash used of $110.6 million in the same period of 2023, a$ 324.6 million increase[86] - Cash and cash equivalents were $221.8 million at September 30, 2024, up from$ 195.9 million at December 31, 2023[84] - Cash flows from operating activities for the twelve months ended September 30, 2024, were $251.3 million[93] Tax and Interest - The effective tax rate was 41.3% for Q3 2024, significantly higher than 9.5% for Q3 2023, reflecting changes in tax obligations[80] - Interest expense for Q3 2024 was$ 50.0 million, slightly up from $49.8 million in Q3 2023[91] Other Financial Information - The company reported a net loss on disposals of$ 14.7 million in Q3 2024, compared to $5.8 million in Q3 2023[91] - The company expects no material effect on net earnings or cash flows in 2024 due to interest rate changes[94] - The company utilizes interest rate swap and cap agreements to manage exposure to interest rate fluctuations[94]