8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  February 25, 2014 (February 25, 2014)

AMSURG CORP.

(Exact Name of Registrant as Specified in Charter)

Tennessee	000-22217	62-1493316
(State or Other Jurisdiction of Incorporation)	(Commission  File Number)	(I.R.S. Employer  Identification No.)
20 Burton Hills Boulevard
Nashville, Tennessee		37215
(Address of Principal Executive Offices)		(Zip Code)

(615) 665-1283

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

        Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.      Results of Operations and Financial Condition

        On February 25, 2014, AmSurg Corp. issued a press release, the text of which is set forth as Exhibit 99.

Item 7.01.      Regulation FD Disclosure

        On February 25, 2014, AmSurg Corp. issued a press release, the text of which is set forth as Exhibit 99.

Item 9.01.      Financial Statements and Exhibits

(d)  99 Press release dated February 25, 2014

2

SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMSURG CORP.

By:	/s/ Claire M. Gulmi
	Claire M. Gulmi
	Executive Vice President and
	Chief Financial Officer
	(Principal Financial and Duly Authorized Officer)

Date:   February 25, 2014

3

INDEX TO EXHIBITS

Exhibit
Number	Description

99 Press release dated February 25, 2014

4

EX-99

 

Exhibit 99

Press Release

Contact:	Claire M. Gulmi
	Executive Vice President and
	Chief Financial Officer
	(615) 665-1283

AMSURG PRODUCES 22% GROWTH IN FOURTH-QUARTER NET EARNINGS FROM CONTINUING OPERATIONS TO $0.60 PER DILUTED SHARE

¾¾¾¾¾¾¾¾¾¾¾

ESTABLISHES FINANCIAL GUIDANCE FOR 2014

NASHVILLE, Tenn. ─ (February 25, 2014) ─ Christopher A. Holden, President and Chief Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the fourth quarter and year ended December 31, 2013.  Revenues were $284.6 million for the quarter, an increase of 17% from $242.8 million for the fourth quarter of 2012. Net earnings from continuing operations attributable to AmSurg common shareholders increased 24% to $19.3 million for the fourth quarter of 2013 from $15.6 million for the fourth quarter of 2012 and increased 22% per diluted share to $0.60 from $0.49 per diluted share during the same periods.

Revenues for fiscal 2013 increased 17% to $1.08 billion from $923.2 million for fiscal 2012.  Same-center revenue increased 1% for 2013 compared with 2012. Net earnings from continuing operations attributable to AmSurg common shareholders rose 17% to $72.7 million for 2013 from $62.2 million for 2012 and were $2.27 per diluted share, a 15% increase from $1.97 per diluted share in 2012.  Results for 2013 include a pre-tax gain of $2.2 million, or $0.04 per diluted share, related to the deconsolidation of a surgery center that AmSurg contributed to a newly formed joint venture with a hospital system partner. Excluding this gain, net earnings from continuing operations per diluted share attributable to AmSurg common shareholders increased 13% to $2.23 for 2013.

“AmSurg completed a year of significant profitable growth by producing a 22% increase in fourth-quarter earnings per diluted share, our strongest quarterly performance for 2013,” commented Mr. Holden. “This increase reflected 10% growth in procedures, mainly attributable to centers acquired in the prior year. In addition, our same-center revenue grew 2% for the fourth quarter. Revenue per procedure increased 6% for the fourth quarter of 2013, primarily due to the growth in the number of multi-specialty centers as a percentage of our center mix. These increases contributed to higher operating leverage for the quarter, which drove a 25% increase in EBITDA to $48.3 million compared with the fourth quarter of 2012 and a 100 basis point increase in EBITDA margin to 17%.

“We acquired six centers during 2013. These centers, along with an additional center acquisition completed January 2, 2014, are expected to generate annualized operating income of $20 million. Several relatively large and complex transactions did not close in 2013 as planned. Certain of these transactions remain in our pipeline and are expected to be completed in 2014. Our pipeline of additional potential transactions also remains strong, positioning us to achieve our acquisition objectives for 2014.  We completed 2013 with a total of 242 centers in operation, compared with 237 at the end of 2012, and we had five letters of intent.

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

“The Company also remains well-positioned to fund its planned growth for 2014.  At the end of 2013, we had availability of $222.5 million under our revolving credit facility, and our ratio of total debt to trailing 12 months EBITDA as calculated under our credit agreement was 3.0, down from 3.2 at the end of 2012.  We had $50.8 million of cash and cash equivalents at the end of 2013, and we continued to produce substantial cash flow during the year.  For the fourth quarter, net operating cash flows, excluding distributions to noncontrolling interests, were $36.8 million, and for 2013, were $148.7 million, up 12% from 2012.

“We are today establishing our financial and operating guidance both for 2014 and for the first quarter of 2014.  Our financial guidance for the full year reflects the impact of fewer fourth-quarter 2013 acquisitions than planned.  In addition, our guidance for the first quarter of 2014 includes the impact of severe winter weather during January and February to-date.  For fiscal 2014, our guidance is as follows:

·Revenues in a range of $1.12 billion to $1.15 billion.

·Same-center revenue increase of 1% to 2%.

·Center acquisitions that generate annualized operating income in a range of $25 million to $29 million.

·Net cash flow provided by operating activities, less distributions to noncontrolling interests, in a range of $150 million to $160 million.

·Net earnings from continuing operations per diluted share attributable to common shareholders in a range of $2.45 to $2.49. 

·For the first quarter of 2014, net earnings from continuing operations per diluted share attributable to common shareholders in a range of $0.53 to $0.57.”

The information contained in the preceding paragraphs, including information regarding the Company’s acquisition plans and financial results for future periods, is forward-looking information.  Forward-looking information involves known and unknown risks and uncertainties as described below.  There can be no assurance that AmSurg will be successful in acquiring the surgery centers described above and the attainment of the financial targets set forth in this press release is dependent on the assumptions described above.  The Company’s actual results and performance could differ materially from those expressed or implied by the forward-looking information contained in this press release.

Mr. Holden concluded, “We continue to expect AmSurg, which owns and operates the most ambulatory surgery centers in the country, to benefit from strong demographic trends, better access to healthcare and increasing demand for high quality care in the most cost effective venue.  In focusing the resources of our Company on enhancing the value proposition we provide our physician partners, we also expect to continue differentiating AmSurg in the market by our physician-centric operating model, thereby strengthening our position as the physicians’ strategic partner of choice.”

AmSurg Corp. will hold a conference call to discuss this release tomorrow, February 26, 2014, at 9:00 a.m. Eastern time.  Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com  and clicking “Investors” at least 15 minutes early to register, download, and install any necessary audio software.  For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call and continue for 30 days.

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

This press release contains forward-looking statements.  These statements, which have been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties.  Investors are hereby cautioned that these statements may be affected by important factors, including, but not limited to, the following risks: the risk that payments from third-party payors, including government healthcare programs, may decrease or not increase as the Company’s costs increase; adverse developments affecting the medical practices of the Company’s physician partners; the Company’s ability to maintain favorable relations with its physician partners; the Company’s ability to compete for physician partners, managed care contracts, patients and strategic relationships; the Company’s ability to acquire and develop additional surgery centers on favorable terms; the Company’s ability to grow revenues by increasing procedure volume while maintaining its operating margins and profitability at its existing centers; the Company’s ability to manage the growth in its business; the Company’s ability to obtain sufficient capital resources to complete acquisitions and develop new surgery centers; the Company’s ability to generate sufficient cash to service all of its indebtedness; adverse weather and other factors beyond the Company’s control that may affect the Company’s surgery centers; the Company’s failure to comply with applicable laws and regulations; the risk of changes in legislation, regulations or regulatory interpretations that may negatively affect the Company; the risk of becoming subject to federal and state investigation; uncertainties regarding the impact of the Health Reform Law; the risk of regulatory changes that may obligate the Company to buy out interests of physicians who are minority owners of its surgery centers; potential liabilities associated with the Company’s status as a general partner of limited partnerships; liabilities for claims brought against our facilities; the Company’s legal responsibility to minority owners of its surgery centers, which may conflict with its interests and prevent it from acting solely in its best interests; risks associated with the potential write-off of the impaired portion of intangible assets; potential liability relating to the tax deductibility of goodwill; and other risk factors described in AmSurg’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and other filings with the Securities and Exchange Commission.  Consequently, actual results, performance or developments may differ materially from the forward-looking statements included above. AmSurg disclaims any intent or obligation to update these forward-looking statements.

AmSurg Corp. acquires, develops and operates ambulatory surgery centers in partnership with physician practice groups throughout the United States.  At December 31, 2013, AmSurg owned and operated 242 centers.

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data

(In thousands, except earnings per share)

			For the Three Months				For the Year
			Ended December 31,				Ended December 31,
Statement of Earnings Data:			2013		2012		2013		2012
Revenues			$	284,570	$	242,775	$	1,079,343	$	923,182
Operating expenses:
	Salaries and benefits			86,080		76,199		333,190		290,063
	Supply cost			42,717		35,172		157,771		131,055
	Other operating expenses			59,410		51,349		222,677		193,025
	Depreciation and amortization			8,489		7,652		33,028		29,850
		Total operating expenses		196,696		170,372		746,666		643,993
Gain on deconsolidation				-		-		2,237		-
Equity in earnings of unconsolidated affiliates				958		461		3,151		1,564
		Operating income		88,832		72,864		338,065		280,753
Interest expense				7,188		5,010		29,538		16,967
		Earnings from continuing operations before income taxes		81,644		67,854		308,527		263,786
Income tax expense				13,276		10,470		49,754		42,364
		Net earnings from continuing operations		68,368		57,384		258,773		221,422
Discontinued operations:
	(Loss) earnings from operations of discontinued interests in surgery centers, net of income tax			(80)		432		169		2,196
	Gain on disposal of discontinued interests in surgery centers, net of income tax			2,880		1,578		2,602		25
		Net earnings from discontinued operations		2,800		2,010		2,771		2,221
		Net earnings		71,168		59,394		261,544		223,643
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations			49,045		41,772		186,120		159,187
	Net earnings from discontinued operations			2,565		808		2,721		1,893
		Total net earnings attributable to noncontrolling interests		51,610		42,580		188,841		161,080
		Net earnings attributable to AmSurg Corp. common shareholders	$	19,558	$	16,814	$	72,703	$	62,563
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax		$	19,323	$	15,612	$	72,653	$	62,235
	Discontinued operations, net of income tax			235		1,202		50		328
		Net earnings attributable to AmSurg Corp. common shareholders	$	19,558	$	16,814	$	72,703	$	62,563
Earnings per share-basic:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.61	$	0.51	$	2.32	$	2.02
	Net earnings from discontinued operations attributable to AmSurg Corp. common shareholders			0.01		0.04		-		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.62	$	0.54	$	2.32	$	2.03
Earnings per share-diluted:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.60	$	0.49	$	2.27	$	1.97
	Net earnings from discontinued operations attributable to AmSurg Corp. common shareholders			0.01		0.04		-		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.61	$	0.53	$	2.28	$	1.98
Weighted average number of shares and share equivalents outstanding:
	Basic			31,549		30,912		31,338		30,773
	Diluted			32,082		31,757		31,954		31,608

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(Dollars in thousands)

			For the Three Months				For the Year
			Ended December 31,				Ended December 31,
Operating Data:			2013		2012		2013		2012
Continuing centers in operation at end of period (consolidated)				239		235		239		235
Continuing centers in operation at end of period (unconsolidated)				3		2		3		2
Average number of continuing centers in operation (consolidated)				238		225		236		222
New centers added during the period				1		14		6		18
Centers merged into existing centers				-		1		1		2
Centers discontinued during the period				2		2		3		4
Centers under letter of intent at end of period				5		2		5		2
Average revenue per consolidated center			$	1,196	$	1,079	$	4,571	$	4,166
Same center revenues increase				2%		3%		1%		3%
Procedures performed during the period at consolidated centers				429,412		389,842		1,647,353		1,518,707
Income tax expense attributable to noncontrolling interests			$	160	$	131	$	725	$	738
Reconciliation of net earnings to EBITDA  (1):
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	19,323	$	15,612	$	72,653	$	62,235
	Add:  income tax expense			13,276		10,470		49,754		42,364
	Add:  interest expense, net			7,188		5,010		29,538		16,967
	Add:  depreciation and amortization			8,489		7,652		33,028		29,850
		EBITDA	$	48,276	$	38,744	$	184,973	$	151,416

(1)EBITDA is defined as earnings before interest, income taxes and depreciation and amortization.  EBITDA should not be considered a measure of financial performance under generally accepted accounting principles.  Items excluded from EBITDA are significant components in understanding and assessing financial performance.  EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity.  EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity.  Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies.  Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA as defined. 

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)

				December 31,		December 31,
Balance Sheet Data:				2013		2012
Assets
Current assets:
	Cash and cash equivalents			$	50,840	$	46,398
	Accounts receivable, net of allowance of $27,862 and $22,379, respectively				105,072		96,752
	Supplies inventory				18,414		18,406
	Deferred income taxes				3,097		3,088
	Prepaid and other current assets				33,602		27,537
			Total current assets		211,025		192,181
Property and equipment, net					169,895		166,612
Investments in unconsolidated affiliates and long-term notes receivable					16,392		11,274
Goodwill					1,758,970		1,652,002
Intangible assets, net					21,662		22,517
			Total assets	$	2,177,944	$	2,044,586
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	20,844	$	17,407
	Accounts payable				27,501		23,509
	Accrued salaries and benefits				32,294		29,251
	Other accrued liabilities				9,231		14,246
			Total current liabilities		89,870		84,413
Long-term debt					583,298		620,705
Deferred income taxes					176,020		137,648
Other long-term liabilities					25,503		25,972
Commitments and contingencies
Noncontrolling interests – redeemable					177,697		175,382
Preferred stock, no par value, 5,000 shares authorized, no shares issued or outstanding					-		-
Equity:
	Common stock, no par value, 70,000 shares authorized, 32,353 and 31,941
		shares outstanding, respectively			185,873		183,867
	Retained earnings				578,324		505,621
			Total AmSurg Corp. equity		764,197		689,488
			Noncontrolling interests – non-redeemable		361,359		310,978
			Total equity		1,125,556		1,000,466
			Total liabilities and equity	$	2,177,944	$	2,044,586

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)

						For the Three Months				For the Year
						Ended December 31,				Ended December 31,
Statement of Cash Flow Data:						2013		2012		2013		2012
Cash flows from operating activities:
	Net earnings					$	71,168	$	59,394	$	261,544	$	223,643
	Adjustments to reconcile net earnings to net cash flows provided by operating activities:
		Depreciation and amortization					8,489		7,652		33,028		29,850
		Net gain on sale of long-lived assets					(1,552)		(1,664)		(1,468)		(1,065)
		Gain on deconsolidation					-		-		(2,237)		-
		Share-based compensation					2,251		1,573		8,321		6,692
		Excess tax benefit from share-based compensation					(5,357)		(516)		(7,247)		(1,784)
		Deferred income taxes					8,528		5,941		38,363		24,558
		Equity in earnings of unconsolidated affiliates					(958)		(461)		(3,151)		(1,564)
		Increase (decrease) in cash and cash equivalents, net of effects
			of acquisitions and dispositions, due to changes in:
				Accounts receivable, net			142		3,230		(1,297)		8,061
				Supplies inventory			470		(233)		132		110
				Prepaid and other current assets			(4,307)		(4,326)		(5,308)		(4,651)
				Accounts payable			3,264		3,354		441		579
				Accrued expenses and other liabilities			(127)		4,040		6,693		7,550
				Other, net			1,880		1,556		5,010		3,673
					Net cash flows provided by operating activities		83,891		79,540		332,824		295,652
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions						(14,139)		(261,291)		(73,594)		(277,388)
	Acquisition of property and equipment						(8,145)		(8,064)		(28,856)		(28,864)
	Proceeds from sale of interests in surgery centers						3,402		7,309		3,553		7,309
	Other						52		-		159		-
					Net cash flows used in investing activities		(18,830)		(262,046)		(98,738)		(298,943)
Cash flows from financing activities:
	Proceeds from long-term borrowings						32,769		515,355		162,204		565,566
	Repayment on long-term borrowings						(50,407)		(283,025)		(202,083)		(394,164)
	Distributions to noncontrolling interests						(47,068)		(39,875)		(184,149)		(162,941)
	Proceeds from issuance of common stock upon exercise of stock options						10,060		6,286		33,349		18,214
	Repurchase of common stock						(10,483)		-		(45,964)		(13,101)
	Capital contributions and ownership transactions by noncontrolling interests						113		186		1,074		1,595
	Excess tax benefit from share-based compensation						5,357		516		7,247		1,784
	Financing cost incurred						(65)		(6,221)		(1,322)		(7,982)
					Net cash flows (used in) provided by financing activities		(59,724)		193,222		(229,644)		8,971
Net increase in cash and cash equivalents							5,337		10,716		4,442		5,680
Cash and cash equivalents, beginning of period							45,503		35,682		46,398		40,718
Cash and cash equivalents, end of period						$	50,840	$	46,398	$	50,840	$	46,398

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AMSG Reports Fourth-Quarter Results

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February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands, except earnings per share)

Presented below is certain statement of earnings and operating data for 2013, which have been restated in order to present additional discontinued operations.

									For the Nine
			For the Three Months						Months Ended
			March 31,		June 30,		Sept. 30,		Sept. 30,
Statement of Earnings Data:			2013		2013		2013		2013
Revenues			$	259,043	$	268,099	$	267,631	$	794,773
Operating expenses:
	Salaries and benefits			81,187		81,309		84,614		247,110
	Supply cost			37,483		39,297		38,274		115,054
	Other operating expenses			52,944		54,133		56,190		163,267
	Depreciation and amortization			8,029		8,146		8,364		24,539
		Total operating expenses		179,643		182,885		187,442		549,970
Gain on deconsolidation				2,237		-		-		2,237
Equity in earnings of unconsolidated affiliates				402		696		1,095		2,193
		Operating income		82,039		85,910		81,284		249,233
Interest expense				7,543		7,512		7,295		22,350
		Earnings from continuing operations before income taxes		74,496		78,398		73,989		226,883
Income tax expense				12,293		12,758		11,427		36,478
		Net earnings from continuing operations		62,203		65,640		62,562		190,405
		Net earnings (loss) from discontinued operations		70		196		(295)		(29)
		Net earnings		62,273		65,836		62,267		190,376
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations			44,418		47,151		45,506		137,075
	Net earnings (loss) from discontinued operations			44		122		(10)		156
		Total net earnings attributable to noncontrolling interests		44,462		47,273		45,496		137,231
		Net earnings attributable to AmSurg Corp. common shareholders	$	17,811	$	18,563	$	16,771	$	53,145
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax		$	17,785	$	18,489	$	17,056	$	53,330
	Discontinued operations, net of income tax			26		74		(285)		(185)
		Net earnings attributable to AmSurg Corp. common shareholders	$	17,811	$	18,563	$	16,771	$	53,145
Earnings per share-basic:
	Net earnings from continuing operations attributable to
		AmSurg Corp. common shareholders	$	0.57	$	0.59	$	0.54	$	1.71
	Net loss from discontinued operations attributable to
		AmSurg Corp. common shareholders		-		-		(0.01)		(0.01)
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.57	$	0.59	$	0.53	$	1.70
Earnings per share-diluted:
	Net earnings from continuing operations attributable to
		AmSurg Corp. common shareholders	$	0.56	$	0.58	$	0.53	$	1.67
	Net loss from discontinued operations attributable to
		AmSurg Corp. common shareholders		-		-		(0.01)		(0.01)
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.56	$	0.58	$	0.52	$	1.67
Weighted average number of shares and share equivalents:
	Basic			31,217		31,208		31,376		31,267
	Diluted			31,881		31,862		31,991		31,911

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AMSG Reports Fourth-Quarter Results

Page 9

February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands, except earnings per share)

Presented below is certain statement of earnings and operating data for 2012, which have been restated in order to present additional discontinued operations.

											For the Year
			For the Three Months								Ended
			March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,
Statement of Earnings Data:			2012		2012		2012		2012		2012
Revenues			$	227,567	$	228,955	$	223,885	$	242,775	$	923,182
Operating expenses:
	Salaries and benefits			71,695		70,187		71,982		76,199		290,063
	Supply cost			31,830		32,825		31,228		35,172		131,055
	Other operating expenses			46,776		48,118		46,782		51,349		193,025
	Depreciation and amortization			7,285		7,373		7,540		7,652		29,850
		Total operating expenses		157,586		158,503		157,532		170,372		643,993
Equity in earnings of unconsolidated affiliates				395		316		392		461		1,564
		Operating income		70,376		70,768		66,745		72,864		280,753
Interest expense				4,266		4,157		3,534		5,010		16,967
		Earnings from continuing operations before income taxes		66,110		66,611		63,211		67,854		263,786
Income tax expense				10,761		11,070		10,063		10,470		42,364
		Net earnings from continuing operations		55,349		55,541		53,148		57,384		221,422
		Net (loss) earnings from discontinued operations		(410)		4		617		2,010		2,221
		Net earnings		54,939		55,545		53,765		59,394		223,643
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations			39,861		39,602		37,952		41,772		159,187
	Net earnings from discontinued operations			302		407		376		808		1,893
		Total net earnings attributable to noncontrolling interests		40,163		40,009		38,328		42,580		161,080
		Net earnings attributable to AmSurg Corp. common shareholders	$	14,776	$	15,536	$	15,437	$	16,814	$	62,563
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax		$	15,488	$	15,939	$	15,196	$	15,612	$	62,235
	Discontinued operations, net of income tax			(712)		(403)		241		1,202		328
		Net earnings attributable to AmSurg Corp. common shareholders	$	14,776	$	15,536	$	15,437	$	16,814	$	62,563
Earnings per share-basic:
	Net earnings from continuing operations attributable to
		AmSurg Corp. common shareholders	$	0.51	$	0.52	$	0.49	$	0.51	$	2.02
	Net (loss) earnings from discontinued operations attributable to
		AmSurg Corp. common shareholders		(0.02)		(0.01)		0.01		0.04		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.48	$	0.51	$	0.50	$	0.54	$	2.03
Earnings per share-diluted:
	Net earnings from continuing operations attributable to
		AmSurg Corp. common shareholders	$	0.49	$	0.50	$	0.48	$	0.49	$	1.97
	Net (loss) earnings from discontinued operations attributable to
		AmSurg Corp. common shareholders		(0.02)		(0.01)		0.01		0.04		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.47	$	0.49	$	0.49	$	0.53	$	1.98
Weighted average number of shares and share equivalents:
	Basic			30,619		30,743		30,819		30,912		30,773
	Diluted			31,401		31,577		31,697		31,757		31,608

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AMSG Reports Fourth-Quarter Results

Page 10

February 25, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(Dollars in thousands)

Presented below is certain statement of earnings and operating data for 2013 and 2012, which have been restated in order to present additional discontinued operations.

												For the Nine
						For the Three Months						Months Ended
						March 31,		June 30,		Sept. 30,		Sept. 30,
Operating Data:						2013		2013		2013		2013
Procedures							392,880		417,086		407,975		1,217,941
Reconciliation of net earnings to EBITDA (1):
	Net earnings from continuing operations
		attributable to AmSurg Corp. common shareholders				$	17,785	$	18,489	$	17,056	$	53,330
		Add:  income tax expense					12,293		12,758		11,427		36,478
		Add:  interest expense, net					7,543		7,512		7,295		22,350
		Add:  depreciation and amortization					8,029		8,146		8,364		24,539
			EBITDA			$	45,650	$	46,905	$	44,142	$	136,697
												For the Year
				For the Three Months								Ended
				March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,
Operating Data:				2012		2012		2012		2012		2012
Procedures					377,609		380,628		370,628		389,842		1,518,707
Reconciliation of net earnings to EBITDA (1):
	Net earnings from continuing operations
		attributable to AmSurg Corp. common shareholders		$	15,488	$	15,939	$	15,196	$	15,612	$	62,235
		Add:  income tax expense			10,761		11,070		10,063		10,470		42,364
		Add:  interest expense, net			4,266		4,157		3,534		5,010		16,967
		Add:  depreciation and amortization			7,285		7,373		7,540		7,652		29,850
			EBITDA	$	37,800	$	38,539	$	36,333	$	38,744	$	151,416

(1)EBITDA is defined as earnings before interest, income taxes and depreciation and amortization.  EBITDA should not be considered a measure of financial performance under generally accepted accounting principles.  Items excluded from EBITDA are significant components in understanding and assessing financial performance.  EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity.  EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity.  Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies.  Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA as defined. 

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