Surgery Partners(SGRY) - 2025 Q1 - Quarterly Results

Surgery Partners, Inc. First Quarter 2025 Results Financial Highlights and 2025 Guidance Surgery Partners reported strong first-quarter 2025 results, with an 8.2% increase in revenue and a 6.6% rise in Adjusted EBITDA year-over-year, reaffirming its full-year 2025 guidance Q1 2025 Financial Highlights (YoY, in millions) | Metric | Q1 2025 | Change | | :--- | :--- | :--- | | Revenue | $776.0 | +8.2% | | Same-facility revenues | N/A | +5.2% | | Same-facility cases | N/A | +6.5% | | Net loss attributable to Surgery Partners, Inc. | $37.7 | N/A | | Adjusted EBITDA | $103.9 | +6.6% | Reaffirmed Full Year 2025 Guidance (in billions/millions) | Metric | Guidance Range | | :--- | :--- | | Revenues | $3.30 billion to $3.45 billion | | Adjusted EBITDA | $555 million to $565 million | Management Commentary Management expressed satisfaction with the strong start to 2025, driven by portfolio performance, M&A pipeline, and operational efficiencies, while reaffirming guidance and liquidity - CEO Eric Evans stated the strong start to 2025 is consistent with the company's long-term growth algorithm, driven by maximizing portfolio performance, advancing the M&A pipeline, and improving operating efficiencies[2] - CFO Dave Doherty noted that results align with internal expectations, giving confidence in reaffirming guidance, anticipating continued margin expansion and sufficient liquidity to fund future M&A without accessing capital markets for the next five years[2] First Quarter 2025 Performance Analysis Q1 2025 revenues grew 8.2% to $776.0 million, primarily from a 5.2% increase in same-facility revenues driven by higher cases, despite a slight decrease in revenue per case Q1 2025 vs Q1 2024 Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $776.0 | $717.4 | +8.2% | | Same-facility Revenues Growth | 5.2% | N/A | N/A | | Same-facility Cases Growth | 6.5% | N/A | N/A | | Same-facility Revenue per Case Growth | (1.2)% | N/A | N/A | | Adjusted EBITDA | $103.9 | $97.5 | +6.6% | Financial Position and Liquidity As of March 31, 2025, Surgery Partners maintained a strong liquidity position with $229.3 million in cash and $388.9 million in revolving credit capacity, despite a decrease in operating cash flow - As of March 31, 2025, the company had $229.3 million in cash and cash equivalents and $388.9 million of borrowing capacity under its revolving credit facility[4] - Cash flow from operating activities was $6.0 million for Q1 2025, down from $40.7 million in Q1 2024, due to the timing of routine working capital transactions[4] - The ratio of total net debt to EBITDA, as calculated under the Company's credit agreement, was approximately 4.1x at the end of Q1 2025[5] Financial Statements This section presents detailed consolidated financial data, including income statement, balance sheet, cash flow, and key operating metrics Selected Consolidated Financial Data (Income Statement) For Q1 2025, the company reported revenues of $776.0 million and an increased net loss attributable to Surgery Partners, Inc. of $37.7 million Q1 2025 vs Q1 2024 Income Statement Highlights (in millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $776.0 | $717.4 | | Operating Income | $61.9 | $76.0 | | Net Loss Attributable to Surgery Partners, Inc. | $(37.7) | $(12.4) | | Basic & Diluted Net Loss Per Share | $(0.30) | $(0.10) | Selected Financial and Operating Data (Balance Sheet, Cash Flow & Key Metrics) As of March 31, 2025, total assets were $7.95 billion, with net cash from operating activities at $6.0 million, and the company operated 164 surgical facilities Balance Sheet Data (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $229.3 | $269.5 | | Total assets | $7,949.2 | $7,890.0 | | Total liabilities | $4,362.7 | $4,254.8 | | Total Surgery Partners, Inc. stockholders' equity | $1,740.4 | $1,789.7 | Cash Flow Data for Three Months Ended March 31 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from Operating activities | $6.0 | $40.7 | | Net cash used in Investing activities | $(76.4) | $(83.1) | | Net cash from Financing activities | $30.2 | $31.7 | Other Operating Data for Three Months Ended March 31 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of surgical facilities | 164 | 165 | | Cases | 160,300 | 153,392 | | Adjusted EBITDA margin | 13.4% | 13.6% | Supplemental and Non-GAAP Information This section provides supplemental data, including same-facility performance and reconciliations of non-GAAP financial measures Same-Facility Information For Q1 2025, same-facility cases grew 6.5% on a days-adjusted basis, contributing to a 5.2% days-adjusted revenue growth Q1 2025 Same-Facility Information (YoY) | Metric | Value | | :--- | :--- | | Case growth | 4.8% | | Revenue per case growth | (1.2)% | | Case growth (days adjusted) | 6.5% | | Revenue growth (days adjusted) | 5.2% | Reconciliation of Non-GAAP Financial Measures The company reconciled its GAAP loss before income taxes to an Adjusted EBITDA of $103.9 million and its GAAP net loss to an Adjusted Net Income of $5.4 million for Q1 2025 Reconciliation to Adjusted EBITDA (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | (Loss) income before income taxes | $(0.3) | $28.7 | | Adjustments (Interest, D&A, etc.) | $104.2 | $68.8 | | Adjusted EBITDA | $103.9 | $97.5 | Reconciliation to Adjusted Net Income (in millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(0.3) | $24.3 | | Adjustments | $5.7 | $(12.2) | | Adjusted net income attributable to common stockholders | $5.4 | $12.1 | | Adjusted diluted EPS | $0.04 | $0.10 |