Surgery Partners, Inc. Announces Fourth Quarter and Full Year 2024 Results; Sets 2025 Guidance
Surgery Partners (NASDAQ:SGRY) reported strong financial results for Q4 and full year 2024. Revenue increased 17.5% to $864.4M in Q4 and 13.5% to $3.1B for the full year. Same-facility revenues grew 5.6% in Q4 and 8.0% for 2024.
The company posted Q4 Adjusted EBITDA of $163.8M, up 15.1%, and full-year Adjusted EBITDA of $508.2M, a 16.0% increase. However, net losses were $108.5M for Q4 and $168.1M for 2024.
For 2025, Surgery Partners projects revenue between $3.30B-$3.45B and Adjusted EBITDA of $555M-$565M. The company maintains strong liquidity with $269.5M cash and $501.5M in credit facility availability. Operating cash flows improved to $111.4M in Q4 2024 from $62.6M in Q4 2023.
Surgery Partners (NASDAQ:SGRY) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. I ricavi sono aumentati del 17,5% a $864,4 milioni nel quarto trimestre e del 13,5% a $3,1 miliardi per l'intero anno. I ricavi delle stesse strutture sono cresciuti del 5,6% nel quarto trimestre e dell'8,0% per il 2024.
L'azienda ha registrato un EBITDA rettificato di $163,8 milioni nel quarto trimestre, in aumento del 15,1%, e un EBITDA rettificato di $508,2 milioni per l'intero anno, con un incremento del 16,0%. Tuttavia, le perdite nette sono state di $108,5 milioni per il quarto trimestre e di $168,1 milioni per il 2024.
Per il 2025, Surgery Partners prevede ricavi tra $3,30 miliardi e $3,45 miliardi e un EBITDA rettificato di $555 milioni - $565 milioni. L'azienda mantiene una solida liquidità con $269,5 milioni in contante e $501,5 milioni di disponibilità in linee di credito. I flussi di cassa operativi sono migliorati a $111,4 milioni nel quarto trimestre del 2024 rispetto a $62,6 milioni nel quarto trimestre del 2023.
Surgery Partners (NASDAQ:SGRY) reportó sólidos resultados financieros para el cuarto trimestre y el año completo 2024. Los ingresos aumentaron 17,5% a $864,4 millones en el cuarto trimestre y 13,5% a $3,1 mil millones para el año completo. Los ingresos de las mismas instalaciones crecieron un 5,6% en el cuarto trimestre y un 8,0% para 2024.
La compañía registró un EBITDA ajustado de $163,8 millones en el cuarto trimestre, un aumento del 15,1%, y un EBITDA ajustado de $508,2 millones para el año completo, un incremento del 16,0%. Sin embargo, las pérdidas netas fueron de $108,5 millones para el cuarto trimestre y de $168,1 millones para 2024.
Para 2025, Surgery Partners proyecta ingresos entre $3,30 mil millones y $3,45 mil millones y un EBITDA ajustado de $555 millones - $565 millones. La compañía mantiene una fuerte liquidez con $269,5 millones en efectivo y $501,5 millones en disponibilidad de líneas de crédito. Los flujos de efectivo operativos mejoraron a $111,4 millones en el cuarto trimestre de 2024 desde $62,6 millones en el cuarto trimestre de 2023.
Surgery Partners (NASDAQ:SGRY)는 2024년 4분기 및 연간 재무 결과가 강력하다고 보고했습니다. 4분기 수익은 17.5% 증가하여 $864.4M에 달했고, 연간 수익은 13.5% 증가하여 $3.1B에 달했습니다. 동일 시설 수익은 4분기에 5.6%, 2024년에 8.0% 증가했습니다.
회사는 4분기 조정 EBITDA가 $163.8M으로 15.1% 증가했으며, 연간 조정 EBITDA는 $508.2M으로 16.0% 증가했다고 발표했습니다. 그러나 순손실은 4분기에 $108.5M, 2024년에 $168.1M이었습니다.
2025년을 위해 Surgery Partners는 수익을 $3.30B-$3.45B 사이로 예상하고 조정 EBITDA는 $555M-$565M으로 예상하고 있습니다. 회사는 $269.5M의 현금과 $501.5M의 신용 한도를 보유하여 강력한 유동성을 유지하고 있습니다. 운영 현금 흐름은 2023년 4분기 $62.6M에서 2024년 4분기 $111.4M으로 개선되었습니다.
Surgery Partners (NASDAQ:SGRY) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. Le chiffre d'affaires a augmenté de 17,5% pour atteindre 864,4 millions de dollars au quatrième trimestre et de 13,5% pour atteindre 3,1 milliards de dollars pour l'année complète. Les revenus des mêmes installations ont augmenté de 5,6% au quatrième trimestre et de 8,0% pour 2024.
L'entreprise a affiché un EBITDA ajusté de 163,8 millions de dollars au quatrième trimestre, en hausse de 15,1%, et un EBITDA ajusté de 508,2 millions de dollars pour l'année complète, soit une augmentation de 16,0%. Cependant, les pertes nettes se sont élevées à 108,5 millions de dollars pour le quatrième trimestre et à 168,1 millions de dollars pour 2024.
Pour 2025, Surgery Partners prévoit un chiffre d'affaires compris entre 3,30 milliards de dollars et 3,45 milliards de dollars et un EBITDA ajusté de 555 millions de dollars - 565 millions de dollars. L'entreprise maintient une forte liquidité avec 269,5 millions de dollars en espèces et 501,5 millions de dollars de disponibilités en crédit. Les flux de trésorerie opérationnels se sont améliorés à 111,4 millions de dollars au quatrième trimestre 2024, contre 62,6 millions de dollars au quatrième trimestre 2023.
Surgery Partners (NASDAQ:SGRY) hat starke Finanzzahlen für das vierte Quartal und das Gesamtjahr 2024 berichtet. Der Umsatz stieg im vierten Quartal um 17,5% auf $864,4 Millionen und im Gesamtjahr um 13,5% auf $3,1 Milliarden. Die Erlöse aus denselben Einrichtungen wuchsen im vierten Quartal um 5,6% und für 2024 um 8,0%.
Das Unternehmen erzielte im vierten Quartal ein bereinigtes EBITDA von $163,8 Millionen, was einem Anstieg von 15,1% entspricht, und ein bereinigtes EBITDA für das Gesamtjahr von $508,2 Millionen, was einem Anstieg von 16,0% entspricht. Die Nett Verluste betrugen jedoch $108,5 Millionen im vierten Quartal und $168,1 Millionen für 2024.
Für 2025 prognostiziert Surgery Partners einen Umsatz zwischen $3,30 Milliarden und $3,45 Milliarden sowie ein bereinigtes EBITDA von $555 Millionen - $565 Millionen. Das Unternehmen verfügt über eine starke Liquidität mit $269,5 Millionen in bar und $501,5 Millionen an verfügbaren Kreditlinien. Die operativen Cashflows verbesserten sich im vierten Quartal 2024 auf $111,4 Millionen von $62,6 Millionen im vierten Quartal 2023.
- Revenue grew 17.5% in Q4 and 13.5% for full year
- Adjusted EBITDA increased 16.0% to $508.2M for 2024
- Same-facility revenue grew 8.0% in 2024
- Operating cash flow improved to $111.4M in Q4 from $62.6M YoY
- Strong liquidity position of $770M
- Opened 8 new facilities in 2024
- Net loss of $108.5M in Q4 and $168.1M for full year
- Non-cash valuation allowance against deferred tax assets required
- $11M Adjusted EBITDA impact from Q4 2024 divestitures
Insights
While the company reported net losses, these stem from a non-cash valuation allowance against deferred tax assets rather than operational issues. The more telling metric is Adjusted EBITDA, which grew
Surgery Partners' dual-pronged expansion strategy is delivering results, with
The quarterly operating cash flow jumped to
BRENTWOOD, Tenn., March 03, 2025 (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 fourth quarter and full year ended December 31, 2024.
Fourth Quarter and Full Year 2024 Financial Highlights
(All comparisons are year-over-year unless otherwise noted)
- Revenue increased
17.5% for the fourth quarter and13.5% for the full year- Same-facility revenues increased
5.6% for the fourth quarter and8.0% for the full year - Same-facility cases increased
5.1% for the fourth quarter and3.9% for the full year
- Same-facility revenues increased
- Net loss attributable to Surgery Partners, Inc. was
$108.5 million for the fourth quarter and$168.1 million for the full year- Adjusted EBITDA increased
15.1% to$163.8 million for the fourth quarter - Adjusted EBITDA increased
16.0% to$508.2 million for the full year
- Adjusted EBITDA increased
- Full year 2024 Adjusted EBITDA margin grew 30 basis points to
16.3%
2025 Guidance
- Full year 2025 revenue expected to be in the range of
$3.30 billion to$3.45 billion and Adjusted EBITDA expected to be in the range of$555 million to$565 million
Eric Evans, Chief Executive Officer, stated, “We are pleased to report another year of mid-teens growth, while continuing to expand margin. Our 2024 results are a continuation of the Company's consistent and predictable organic growth, with same-facility revenue growth of
Dave Doherty, Chief Financial Officer, commented, “We are pleased to deliver these fourth quarter and full year results, which reflect our disciplined management approach, strong underlying business fundamentals and the benefits of our multi-year growth investments. We enter 2025 with a liquidity position of over
Fourth Quarter 2024 Results
Revenues for the fourth quarter of 2024 increased
Full Year 2024 Results
Full year revenues for 2024 increased
Liquidity
Surgery Partners had cash and cash equivalents of
Full year 2024 operating cash flows were
The Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, was approximately 3.7x at the end of the fourth quarter of 2024.
2025 Outlook
The Company projects full year 2025 revenue to be in the range of
Conference Call Information
Surgery Partners will hold a conference call today, March 3, 2025 at 8:30 a.m. (Eastern Time). The conference call can be accessed live over the phone by dialing 1-877-451-6152, or for international callers, 1-201-389-0879. A replay will be available three hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13751533. The replay will be available until March 17, 2025.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.surgerypartners.com. The replay will also be available on this same website for a limited time following the call.
To learn more about Surgery Partners, please visit the Company's website at www.surgerypartners.com. Surgery Partners uses its website as a channel of distribution for material Company information. Financial and other material information regarding Surgery Partners is routinely posted on the Company's website and is readily accessible.
About Surgery Partners
Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 200 locations in 31 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities. For additional information, visit www.surgerypartners.com.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding growth, our anticipated operating results for future periods and other similar statements. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," "may," "could," and similar expressions. All forward-looking statements are based on current expectations and beliefs as of the date of this release and are subject to risks, uncertainties and other factors that may cause actual results to differ materially from the expectations discussed in, or implied by, the forward-looking statements. Many of these factors are beyond our ability to control or predict including, without limitation, reductions in payments from government health care programs and private insurance payors, such as health maintenance organizations, preferred provider organizations, and other managed care organizations and employers; our ability to contract with private insurance payors; changes in our payor mix or surgical case mix; failure to maintain or develop relationships with physicians on beneficial or favorable terms, or at all; the impact of payor controls designed to reduce the number of surgical procedures; our efforts to integrate operations of acquired or developed businesses and surgical facilities, attract new physician partners, or acquire additional surgical facilities; supply chain issues, including shortages or quality control issues with surgery-related products, equipment and medical supplies; competition for physicians, nurses, strategic relationships, acquisitions and managed care contracts; our ability to attract and retain qualified health care professionals; our ability to enforce non-compete restrictions against our physicians; our ability to manage material liabilities whether known or unknown incurred as a result of acquiring or operating surgical facilities; the impact of future legislation and other health care regulatory reform actions, and the effect of that legislation and other regulatory actions on our business; our ability to comply with current health care laws and regulations; the outcome of legal and regulatory proceedings that have been or may be brought against us; the impact of cybersecurity attacks or intrusions, changes in the regulatory, economic and other conditions of the states where our surgical facilities are located; our indebtedness; the social and economic impact of a pandemic, epidemic or outbreak of a contagious disease on our business; and the risks and uncertainties identified and discussed from time to time in the Company’s reports filed with the SEC, including in Item 1A under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events or circumstances.
Use of Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States ("GAAP") provided throughout this press release, Surgery Partners has presented the following non-GAAP financial measures: Adjusted net income (loss) attributable to common stockholders, Adjusted net income (loss) per share attributable to common stockholders, Adjusted EBITDA, and Adjusted EBITDA related to unconsolidated affiliates, which exclude various items detailed in the "Reconciliation of Non-GAAP Financial Measures" below.
These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as supplemental measures of the Company's performance that management believes may enhance the evaluation of the Company's ongoing operating results. These non-GAAP financial measures are not presented in accordance with GAAP, and the Company’s computation of these non-GAAP financial measures may vary from similar measures used by other companies. These measures have limitations as an analytical tool and should not be considered in isolation or as a substitute or alternative to revenue, net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP.
| SURGERY PARTNERS, INC. Selected Consolidated Financial Data (Dollars in millions, except per share amounts, shares in thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 864.4 | $ | 735.4 | $ | 3,114.3 | $ | 2,743.3 | ||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and benefits | 240.7 | 201.4 | 907.5 | 793.8 | ||||||||||||
| Supplies | 223.0 | 195.2 | 812.9 | 745.0 | ||||||||||||
| Professional and medical fees | 91.1 | 76.9 | 357.1 | 296.8 | ||||||||||||
| Lease expense | 22.0 | 20.6 | 89.5 | 84.9 | ||||||||||||
| Other operating expenses | 54.0 | 47.7 | 201.7 | 175.3 | ||||||||||||
| Cost of revenues | 630.8 | 541.8 | 2,368.7 | 2,095.8 | ||||||||||||
| General and administrative expenses | 36.0 | 20.9 | 138.7 | 120.9 | ||||||||||||
| Depreciation and amortization | 33.9 | 31.1 | 152.6 | 118.1 | ||||||||||||
| Transaction and integration costs | 34.0 | 24.4 | 100.1 | 61.7 | ||||||||||||
| Net loss on disposals, consolidations and deconsolidations | 19.1 | 6.9 | 40.6 | 14.4 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (7.2 | ) | (4.8 | ) | (19.5 | ) | (14.2 | ) | ||||||||
| Litigation settlement | — | 2.5 | (0.8 | ) | 10.6 | |||||||||||
| Loss on debt extinguishment | — | 15.5 | 5.1 | 15.5 | ||||||||||||
| Other income, net | (9.3 | ) | (4.3 | ) | (20.0 | ) | (7.5 | ) | ||||||||
| 737.3 | 634.0 | 2,765.5 | 2,415.3 | |||||||||||||
| Operating income | 127.1 | 101.4 | 348.8 | 328.0 | ||||||||||||
| Interest expense, net | (52.9 | ) | (48.7 | ) | (201.7 | ) | (193.0 | ) | ||||||||
| Income before income taxes | 74.2 | 52.7 | 147.1 | 135.0 | ||||||||||||
| Income tax (expense) benefit | (120.8 | ) | (6.0 | ) | (134.6 | ) | 0.3 | |||||||||
| Net (loss) income | (46.6 | ) | 46.7 | 12.5 | 135.3 | |||||||||||
| Less: Net income attributable to non-controlling interests | (61.9 | ) | (47.7 | ) | (180.6 | ) | (147.2 | ) | ||||||||
| Net loss attributable to Surgery Partners, Inc. | $ | (108.5 | ) | $ | (1.0 | ) | $ | (168.1 | ) | $ | (11.9 | ) | ||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | (0.86 | ) | $ | (0.01 | ) | $ | (1.33 | ) | $ | (0.09 | ) | ||||
| Diluted (1) | $ | (0.86 | ) | $ | (0.01 | ) | $ | (1.33 | ) | $ | (0.09 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 126,209 | 125,774 | 126,122 | 125,613 | ||||||||||||
| Diluted (1) | 126,209 | 125,774 | 126,122 | 125,613 | ||||||||||||
(1) The impact of potentially dilutive securities for all periods was not considered because the effect would be anti-dilutive.
| SURGERY PARTNERS, INC. Selected Financial and Operating Data (Dollars in millions, except per case and per share amounts) (Unaudited) | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| Balance Sheet Data (at period end): | ||||||
| Cash and cash equivalents | $ | 269.5 | $ | 195.9 | ||
| Total current assets | 1,119.4 | 895.0 | ||||
| Total assets | 7,890.0 | 6,876.7 | ||||
| Current maturities of long-term debt | 101.4 | 73.3 | ||||
| Total current liabilities | 624.4 | 523.0 | ||||
| Long-term debt, less current maturities | 3,268.9 | 2,701.8 | ||||
| Total liabilities | 4,254.8 | 3,514.8 | ||||
| Non-controlling interests—redeemable | 438.8 | 327.4 | ||||
| Total Surgery Partners, Inc. stockholders' equity | 1,789.7 | 1,987.2 | ||||
| Non-controlling interests—non-redeemable | 1,406.7 | 1,047.3 | ||||
| Total stockholders' equity | 3,196.4 | 3,034.5 | ||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cash Flow Data: | ||||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities | $ | 111.4 | $ | 62.6 | $ | 300.1 | $ | 293.8 | ||||||||
| Investing activities | (111.7 | ) | (58.1 | ) | (488.5 | ) | (225.6 | ) | ||||||||
| Purchases of property and equipment | (22.3 | ) | (19.8 | ) | (90.4 | ) | (88.8 | ) | ||||||||
| Payments for acquisitions, net of cash acquired | (87.6 | ) | (31.2 | ) | (378.8 | ) | (80.0 | ) | ||||||||
| Purchases of equity investments | — | (0.1 | ) | (1.7 | ) | (50.3 | ) | |||||||||
| Financing activities | 48.0 | (44.6 | ) | 262.0 | (155.2 | ) | ||||||||||
| Distributions to non-controlling interest holders | (48.1 | ) | (35.1 | ) | (170.5 | ) | (146.1 | ) | ||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Other Data: | ||||||||||||||||
| Number of surgical facilities as of the end of period | 161 | 162 | 161 | 162 | ||||||||||||
| Number of consolidated surgical facilities as of the end of period | 118 | 123 | 118 | 123 | ||||||||||||
| Cases | 174,185 | 153,193 | 656,732 | 605,846 | ||||||||||||
| Revenue per case | $ | 4,963 | $ | 4,800 | $ | 4,742 | $ | 4,528 | ||||||||
| Adjusted EBITDA (1) | $ | 163.8 | $ | 142.3 | $ | 508.2 | $ | 438.1 | ||||||||
| Adjusted EBITDA margin (2) | 18.9 | % | 19.4 | % | 16.3 | % | 16.0 | % | ||||||||
| Adjusted net income per share attributable to common stockholders - Basic (1) | $ | 0.44 | $ | 0.45 | $ | 0.94 | $ | 1.01 | ||||||||
| Adjusted net income per share attributable to common stockholders - Diluted (1) | $ | 0.44 | $ | 0.44 | $ | 0.93 | $ | 1.00 | ||||||||
(1) A reconciliation of these non-GAAP financial measures appears below.
(2) Defined as Adjusted EBITDA as a % of Revenues.
| SURGERY PARTNERS, INC. Supplemental Information (Dollars in millions, except per case amounts) (Unaudited) | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Same-facility Information (1): | ||||||||||||||
| Cases | 183,333 | 171,625 | 678,453 | 648,077 | ||||||||||
| Case growth | 6.8 | % | N/A | 4.7 | % | N/A | ||||||||
| Revenue per case | $ | 5,077 | $ | 5,053 | $ | 4,604 | $ | 4,429 | ||||||
| Revenue per case growth | 0.5 | % | N/A | 4.0 | % | N/A | ||||||||
| Number of work days in the period | 62 | 61 | 254 | 252 | ||||||||||
| Case growth (days adjusted) | 5.1 | % | N/A | 3.9 | % | N/A | ||||||||
| Revenue growth (days adjusted) | 5.6 | % | N/A | 8.0 | % | N/A | ||||||||
(1) Same-facility information includes cases and revenues from our consolidated and non-consolidated surgical facilities (excluding facilities acquired in new markets or divested during the current and prior periods).
| SURGERY PARTNERS, INC. Reconciliation of Non-GAAP Financial Measures (Dollars in millions, except per share amounts, shares in thousands) (Unaudited) | ||||||||||||||||
| The following table reconciles Adjusted EBITDA to income before income taxes in the reported consolidated financial information, the most directly comparable GAAP financial measure: | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income before income taxes | $ | 74.2 | $ | 52.7 | $ | 147.1 | $ | 135.0 | ||||||||
| Net income attributable to non-controlling interests | (61.9 | ) | (47.7 | ) | (180.6 | ) | (147.2 | ) | ||||||||
| Interest expense, net | 52.9 | 48.7 | 201.7 | 193.0 | ||||||||||||
| Depreciation and amortization | 33.9 | 31.1 | 152.6 | 118.1 | ||||||||||||
| Equity-based compensation expense | 6.2 | 4.5 | 33.3 | 17.7 | ||||||||||||
| Transaction, integration and acquisition costs (1) | 36.8 | 26.1 | 108.0 | 64.9 | ||||||||||||
| Net loss on disposals, consolidations and deconsolidations | 19.1 | 6.9 | 40.6 | 14.4 | ||||||||||||
| Litigation settlements and regulatory change impact (2) | 1.6 | 3.6 | 3.1 | 17.5 | ||||||||||||
| Loss on debt extinguishment | — | 15.5 | 5.1 | 15.5 | ||||||||||||
| Undesignated derivative activity | — | — | — | 0.6 | ||||||||||||
| Other (3) | 1.0 | 0.9 | (2.7 | ) | 8.6 | |||||||||||
| Adjusted EBITDA (4) | $ | 163.8 | $ | 142.3 | $ | 508.2 | $ | 438.1 | ||||||||
(1) This amount includes transaction and integration costs of
This amount includes transaction and integration costs of
(2) This amount includes a litigation settlement loss of
This amount includes a litigation settlements gain of
(3) For the three months ended December 31, 2024 and 2023, this amount includes fair value changes of undesignated derivatives.
This amount includes fair value changes of undesignated derivatives for the years ended December 31, 2024 and 2023.
(4) We use Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by management to assess operating performance, make business decisions and allocate resources. Non-controlling interests represent the interests of third parties, such as physicians, and in some cases, healthcare systems that own an interest in surgical facilities that we consolidate for financial reporting purposes. We believe that it is helpful to investors to present Adjusted EBITDA as defined above because it excludes the portion of net income attributable to these third-party interests and clarifies for investors our portion of Adjusted EBITDA generated by our surgical facilities and other operations. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as a substitute for net income, operating income or any other measure calculated in accordance with GAAP. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating our financial performance. We believe such adjustments are appropriate, as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. Our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table provides supplemental information for Adjusted EBITDA related to unconsolidated affiliates:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Adjusted EBITDA related to unconsolidated affiliates: | |||||||||||
| Management fee revenues (1)(2) | $ | 7.0 | $ | 7.0 | $ | 27.0 | $ | 23.4 | |||
| Equity in earnings of unconsolidated affiliates (2) | 7.2 | 4.8 | 19.5 | 14.2 | |||||||
| Plus: | |||||||||||
| Start-up costs related to unconsolidated de novo surgical facilities (3) | 2.2 | 0.8 | 5.1 | 2.1 | |||||||
| Adjusted EBITDA related to unconsolidated affiliates | $ | 16.4 | $ | 12.6 | $ | 51.6 | $ | 39.7 | |||
(1) Includes management and administrative service fees derived from the non-consolidated facilities that the Company accounts for under the equity method and management of surgical facilities in which it does not own an interest. Management fee revenues are included in Revenues on the Consolidated Statements of Operations.
(2) Included as a component of income before income taxes in the Adjusted EBITDA reconciliation table above.
(3) Start-up costs related to de novo surgical facilities are included in Transaction, integration and acquisition costs in the Adjusted EBITDA reconciliation table above.
From time to time, the Company incurs certain non-recurring gains or losses that are normally non-operational in nature and management does not consider relevant in assessing its ongoing operating performance. When significant, Surgery Partners’ management and the Company's Board of Directors typically exclude these gains or losses when evaluating the Company’s operating performance and in certain instances when evaluating performance for incentive compensation purposes. Additionally, management believes that certain investors and equity analysts exclude these or similar items when evaluating the Company’s current or future operating performance and in making informed investment decisions regarding the Company. Accordingly, the Company provides adjusted net income attributable to common stockholders and adjusted net income per share attributable to common stockholders as supplements to the comparable GAAP financial measures. Adjusted net income attributable to common stockholders and adjusted net income per share attributable to common stockholders should not be considered measures of financial performance under GAAP, and the items excluded from such measures are significant components in understanding and assessing financial performance. These measures should not be considered in isolation or as an alternative to the comparable GAAP measures as presented in the consolidated financial statements.
The following table reconciles net income as reflected in the consolidated statements of operations to adjusted net income attributable to common stockholders used to calculate adjusted net income per share attributable to common stockholders:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Consolidated Statements of Operations Data: | |||||||||||||||
| Net income | $ | (46.6 | ) | $ | 46.7 | $ | 12.5 | $ | 135.3 | ||||||
| Plus (minus): | |||||||||||||||
| Net income attributable to non-controlling interests | (61.9 | ) | (47.7 | ) | (180.6 | ) | (147.2 | ) | |||||||
| Equity-based compensation expense | 6.2 | 4.5 | 33.3 | 17.7 | |||||||||||
| Transaction, integration and acquisition costs | 36.8 | 26.1 | 108.0 | 64.9 | |||||||||||
| Net loss on disposals, consolidations and deconsolidations | 19.1 | 6.9 | 40.6 | 14.4 | |||||||||||
| Litigation settlements and regulatory change impact | 1.6 | 3.6 | 3.1 | 17.5 | |||||||||||
| Loss on debt extinguishment | — | 15.5 | 5.1 | 15.5 | |||||||||||
| Change in valuation allowance on deferred tax assets (1) | 99.5 | — | 99.5 | — | |||||||||||
| Other | 1.0 | 0.9 | (2.7 | ) | 8.6 | ||||||||||
| Adjusted net income attributable to common stockholders | $ | 55.7 | $ | 56.5 | $ | 118.8 | $ | 126.7 | |||||||
| Adjusted net income per share attributable to common stockholders | |||||||||||||||
| Basic | $ | 0.44 | $ | 0.45 | $ | 0.94 | $ | 1.01 | |||||||
| Diluted | $ | 0.44 | $ | 0.44 | $ | 0.93 | $ | 1.00 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 126,209 | 125,774 | 126,122 | 125,613 | |||||||||||
| Diluted | 127,609 | 127,089 | 127,627 | 127,122 | |||||||||||
(1) This amount includes the impact of changes in the valuation allowance on deferred tax assets as of December 31, 2024, related to technical accounting requirements. The Company made income tax payments of
Contact
Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com
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