Surgery Partners, Inc. Announces Fourth Quarter and Full Year 2024 Results; Sets 2025 Guidance

Core Insights - Surgery Partners, Inc. reported a strong financial performance for the fourth quarter and full year of 2024, with revenues increasing by 17.5% to $864.4 million in Q4 and 13.5% to $3.1 billion for the full year [3][4][6] - The company achieved same-facility revenue growth of 5.6% in Q4 and 8.0% for the full year, indicating consistent organic growth [3][4][6] - Adjusted EBITDA for Q4 was $163.8 million, a 15.1% increase year-over-year, while full year Adjusted EBITDA rose 16.0% to $508.2 million [6][4] - Surgery Partners anticipates 2025 revenue in the range of $3.30 billion to $3.45 billion and Adjusted EBITDA between $555 million and $565 million [8] Financial Highlights - Q4 2024 revenues increased to $864.4 million from $735.4 million in Q4 2023, while full year revenues rose to $3.1 billion from $2.7 billion in 2023 [3][4] - Same-facility cases grew by 5.1% in Q4 and 3.9% for the full year, with revenue per case increasing by 0.5% in Q4 and 4.0% for the full year [6][4] - The net loss attributable to Surgery Partners was $108.5 million for Q4 and $168.1 million for the full year, primarily due to a non-cash valuation allowance against deferred tax assets [6][4] Liquidity and Cash Flow - As of December 31, 2024, Surgery Partners had cash and cash equivalents of $269.5 million and $501.5 million in borrowing capacity under its revolving credit facility [5][19] - Operating cash flows for Q4 were $111.4 million, up from $62.6 million in Q4 2023, reflecting operational growth and working capital improvements [5][20] - The company ended 2024 with a liquidity position exceeding $770 million, enhancing its ability to fund future acquisitions without accessing capital markets [2][5] 2025 Outlook - The company projects full year 2025 revenue between $3.30 billion and $3.45 billion, with Adjusted EBITDA expected to be in the range of $555 million to $565 million [8][2] - The guidance includes approximately $11 million of Adjusted EBITDA related to divestitures that occurred late in Q4 2024 [8]