Tennessee | 001-36531 | 62-1493316 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1A Burton Hills Boulevard | ||
Nashville, Tennessee | 37215 | |
(Address of Principal Executive Offices) | (Zip Code) |
[ ] | 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)) |
AMSURG CORP. | ||
By: | /s/ Claire M. Gulmi | |
Claire M. Gulmi | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial and Duly Authorized Officer) |
Exhibit | ||
Number | Description | |
99 | Press release dated February 25, 2015 |
Exhibit 99 | |
Press Release |
Contact: | Claire M. Gulmi | |
Executive Vice President and | ||
Chief Financial Officer | ||
(615) 665-1283 |
• | Net revenues of $581.8 million, an increase of 108% from the fourth quarter of 2013; |
• | Net earnings from continuing operations attributable to AmSurg common shareholders of $25.3 million; adjusted net earnings of $39.6 million, up 95% from the fourth quarter of 2013; |
• | Net earnings per diluted share from continuing operations attributable to AmSurg common shareholders of $0.53; adjusted net earnings per diluted share of $0.77, up 22% on 60% higher diluted shares outstanding; and |
• | Adjusted EBITDA of $111.0 million, a 123% increase from the fourth quarter of 2013. |
AMSG Reports Fourth-Quarter Results | ||
Page 2 | ||
February 25, 2015 | ||
AMSG Reports Fourth-Quarter Results | ||
Page 3 | ||
February 25, 2015 | ||
• | Revenues in a range of $2.44 billion to $2.47 billion; |
• | Same-center revenue increase of 1% to 3% for Ambulatory Services, 5% to 7% organic revenue growth in Physician Services; |
• | Adjusted EBITDA of $445 million to $451 million; |
• | Adjusted EPS in a range of $3.24 to $3.32; and |
• | For the first quarter of 2015, adjusted EPS in a range of $0.55 to $0.58, which includes the higher salary-related expenses historically experienced in Physician Services. |
AMSG Reports Fourth-Quarter Results | ||
Page 4 | ||
February 25, 2015 | ||
AMSG Reports Fourth-Quarter Results | ||
Page 5 | ||
February 25, 2015 | ||
AMSURG CORP. Unaudited Selected Consolidated Financial and Operating Data (In thousands, except earnings per share) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
Statement of Earnings Data: | 2014 | 2013 | 2014 | 2013 | |||||||||||
Revenues | $ | 645,619 | $ | 279,095 | $ | 1,738,950 | $ | 1,057,196 | |||||||
Provision for uncollectibles | (63,808 | ) | — | (117,001 | ) | — | |||||||||
Net revenues | 581,811 | 279,095 | 1,621,949 | 1,057,196 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries and benefits | 288,037 | 84,658 | 694,576 | 327,585 | |||||||||||
Supply cost | 43,732 | 41,462 | 164,296 | 153,126 | |||||||||||
Other operating expenses | 93,685 | 58,041 | 284,928 | 216,501 | |||||||||||
Transaction costs | 5,209 | 15 | 33,890 | 300 | |||||||||||
Depreciation and amortization | 22,811 | 8,330 | 60,344 | 32,400 | |||||||||||
Total operating expenses | 453,474 | 192,506 | 1,238,034 | 729,912 | |||||||||||
Gain on deconsolidation | — | — | 3,411 | 2,237 | |||||||||||
Equity in earnings of unconsolidated affiliates | 3,577 | 958 | 7,038 | 3,151 | |||||||||||
Operating income | 131,914 | 87,547 | 394,364 | 332,672 | |||||||||||
Interest expense, net | 30,379 | 7,184 | 83,285 | 29,525 | |||||||||||
Debt extinguishment costs | — | — | 16,887 | — | |||||||||||
Earnings from continuing operations before income taxes | 101,535 | 80,363 | 294,192 | 303,147 | |||||||||||
Income tax expense | 22,301 | 13,015 | 48,103 | 48,654 | |||||||||||
Net earnings from continuing operations | 79,234 | 67,348 | 246,089 | 254,493 | |||||||||||
Net earnings (loss) from discontinued operations | (150 | ) | 3,820 | (1,296 | ) | 7,051 | |||||||||
Net earnings | 79,084 | 71,168 | 244,793 | 261,544 | |||||||||||
Less net earnings attributable to noncontrolling interests | 51,705 | 51,610 | 191,092 | 188,841 | |||||||||||
Net earnings attributable to AmSurg Corp. shareholders | 27,379 | 19,558 | 53,701 | 72,703 | |||||||||||
Preferred stock dividends | (2,264 | ) | — | (4,503 | ) | — | |||||||||
Net earnings attributable to AmSurg Corp. common shareholders | $ | 25,115 | $ | 19,558 | $ | 49,198 | $ | 72,703 | |||||||
Amounts attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Earnings from continuing operations, net of income tax | $ | 25,311 | $ | 18,931 | $ | 50,777 | $ | 71,009 | |||||||
Earnings (loss) from discontinued operations, net of income tax | (196 | ) | 627 | (1,579 | ) | 1,694 | |||||||||
Net earnings attributable to AmSurg Corp. common shareholders | $ | 25,115 | $ | 19,558 | $ | 49,198 | $ | 72,703 | |||||||
Basic earnings per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Net earnings from continuing operations | $ | 0.53 | $ | 0.60 | $ | 1.29 | $ | 2.27 | |||||||
Net earnings (loss) from discontinued operations | — | 0.02 | (0.04 | ) | 0.05 | ||||||||||
Net earnings | $ | 0.53 | $ | 0.62 | $ | 1.25 | $ | 2.32 | |||||||
Diluted earnings per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Net earnings from continuing operations | $ | 0.53 | $ | 0.59 | $ | 1.28 | $ | 2.22 | |||||||
Net earnings (loss) from discontinued operations | — | 0.02 | (0.04 | ) | 0.05 | ||||||||||
Net earnings | $ | 0.53 | $ | 0.61 | $ | 1.24 | $ | 2.28 | |||||||
Weighted average number of shares and share equivalents outstanding: | |||||||||||||||
Basic | 47,384 | 31,549 | 39,311 | 31,338 | |||||||||||
Diluted | 47,828 | 32,082 | 39,625 | 31,954 |
AMSG Reports Fourth-Quarter Results | ||
Page 6 | ||
February 25, 2015 | ||
AMSURG CORP. Unaudited Selected Consolidated Financial and Operating Data, continued (In thousands, except earnings per share) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Reconciliation of net earnings to Adjusted net earnings (1): | |||||||||||||||
Net earnings attributable to AmSurg Corp. shareholders | $ | 27,379 | $ | 19,558 | $ | 53,701 | $ | 72,703 | |||||||
(Earnings) loss from discontinued operations | 327 | 510 | 2,220 | (1,694 | ) | ||||||||||
Amortization of purchased intangibles | 12,179 | — | 22,148 | — | |||||||||||
Share-based compensation | 2,716 | 2,251 | 10,104 | 8,321 | |||||||||||
Gain on deconsolidation | — | — | (3,411 | ) | (2,237 | ) | |||||||||
Transaction costs | 5,209 | 15 | 33,890 | 300 | |||||||||||
Debt extinguishment costs | — | — | 16,887 | — | |||||||||||
Deferred financing write-off | — | — | 12,763 | — | |||||||||||
Total pre-tax adjustments | 20,431 | 2,776 | 94,601 | 4,690 | |||||||||||
Tax effect | 8,172 | 2,046 | 34,140 | 2,560 | |||||||||||
Total adjustments, net | 12,259 | 730 | 60,461 | 2,130 | |||||||||||
Adjusted net earnings | $ | 39,638 | $ | 20,288 | $ | 114,162 | $ | 74,833 | |||||||
Basic shares outstanding | 47,384 | 31,549 | 39,311 | 31,338 | |||||||||||
Effect of dilutive securities options and non-vested shares | 3,891 | 533 | 2,152 | 616 | |||||||||||
Diluted shares outstanding, if converted | 51,275 | 32,082 | 41,463 | 31,954 | |||||||||||
Adjusted earnings per share | $ | 0.77 | $ | 0.63 | $ | 2.75 | $ | 2.34 | |||||||
Reconciliation of net earnings to Adjusted EBITDA (2): | |||||||||||||||
Net earnings attributable to AmSurg Corp. shareholders | $ | 27,379 | $ | 19,558 | $ | 53,701 | $ | 72,703 | |||||||
(Earnings) loss from discontinued operations | 196 | (627 | ) | 1,579 | (1,694 | ) | |||||||||
Interest expense, net | 30,379 | 7,184 | 83,285 | 29,525 | |||||||||||
Income tax expense | 22,301 | 13,015 | 48,103 | 48,654 | |||||||||||
Depreciation and amortization | 22,811 | 8,330 | 60,344 | 32,400 | |||||||||||
EBITDA | 103,066 | 47,460 | 247,012 | 181,588 | |||||||||||
Adjustments: | |||||||||||||||
Share-based compensation | 2,716 | 2,251 | 10,104 | 8,321 | |||||||||||
Transaction costs | 5,209 | 15 | 33,890 | 300 | |||||||||||
Gain on deconsolidation | — | — | (3,411 | ) | (2,237 | ) | |||||||||
Debt extinguishment costs | — | — | 16,887 | — | |||||||||||
Total adjustments | 7,925 | 2,266 | 57,470 | 6,384 | |||||||||||
Adjusted EBITDA | $ | 110,991 | $ | 49,726 | $ | 304,482 | $ | 187,972 | |||||||
Segment Information: | |||||||||||||||
Ambulatory Services Adjusted EBITDA | $ | 51,904 | $ | 49,726 | $ | 197,377 | $ | 187,972 | |||||||
Physician Services Adjusted EBITDA | 59,087 | — | 107,105 | — | |||||||||||
Adjusted EBITDA | $ | 110,991 | $ | 49,726 | $ | 304,482 | $ | 187,972 | |||||||
Net Revenue by Segment: | |||||||||||||||
Ambulatory Services | $ | 295,729 | $ | 279,095 | $ | 1,109,935 | $ | 1,057,196 | |||||||
Physician Services | 286,082 | — | 512,014 | — | |||||||||||
Total net revenue | $ | 581,811 | $ | 279,095 | $ | 1,621,949 | $ | 1,057,196 |
AMSG Reports Fourth-Quarter Results | ||
Page 7 | ||
February 25, 2015 | ||
AMSURG CORP. Unaudited Selected Consolidated Financial and Operating Data, continued (In thousands, except earnings per share and operating data) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
Operating Data- Ambulatory Services: | 2014 | 2013 | 2014 | 2013 | |||||||||||
Centers in operation at end of period (consolidated) | 237 | 233 | 237 | 233 | |||||||||||
Centers in operation at end of period (unconsolidated) | 9 | 3 | 9 | 3 | |||||||||||
Average number of continuing centers in operation (consolidated) | 235 | 232 | 233 | 230 | |||||||||||
New centers added during the period | 4 | 1 | 10 | 6 | |||||||||||
Centers discontinued during the period | 1 | 2 | 6 | 3 | |||||||||||
Centers under development/not opened at end of period | 2 | — | 2 | — | |||||||||||
Centers under letter of intent at end of period | 5 | 5 | 5 | 5 | |||||||||||
Average revenue per consolidated center | $ | 1,258 | $ | 1,203 | $ | 4,755 | $ | 4,594 | |||||||
Same center revenues increase | 1.1 | % | 2.0 | % | 0.7 | % | 0.6 | % | |||||||
Procedures performed during the period at consolidated centers | 434,285 | 421,364 | 1,645,350 | 1,609,761 |
Operating Data- Physician Services: | Three Months Ended December 31, 2014 | Year Ended December 31, 2014 | |||
Same contract revenue growth | 9.7 | % | 6.3 | % | |
New contract revenue growth | 1.7 | % | 2.2 | % | |
Total organic revenue growth | 11.4 | % | 8.5 | % |
Three Months Ended March 31, 2015 | Year Ended December 31, 2015 | ||||||||||||||
2015 Guidance Reconciliation: | Low | High | Low | High | |||||||||||
Reconciliation of net earnings to Adjusted net earnings (1): | |||||||||||||||
Net earnings attributable to AmSurg Corp. shareholders | $ | 18,500 | $ | 20,000 | $ | 127,500 | $ | 131,500 | |||||||
Amortization of purchased intangibles | 12,000 | 12,000 | 50,000 | 50,000 | |||||||||||
Share-based compensation | 3,800 | 3,800 | 13,800 | 13,800 | |||||||||||
Transaction costs | 450 | 450 | 1,800 | 1,800 | |||||||||||
Total pre-tax adjustments | 16,250 | 16,250 | 65,600 | 65,600 | |||||||||||
Tax effect | 6,500 | 6,500 | 26,240 | 26,240 | |||||||||||
Total adjustments, net | 9,750 | 9,750 | 39,360 | 39,360 | |||||||||||
Adjusted net earnings | $ | 28,250 | $ | 29,750 | $ | 166,860 | $ | 170,860 | |||||||
Diluted shares outstanding, if converted | 51,500 | 51,500 | 51,500 | 51,500 | |||||||||||
Adjusted earnings per share | $ | 0.55 | $ | 0.58 | $ | 3.24 | $ | 3.32 | |||||||
Reconciliation of net earnings to Adjusted EBITDA (2): | |||||||||||||||
Net earnings attributable to AmSurg Corp. shareholders | $ | 127,500 | $ | 131,500 | |||||||||||
Interest expense, net | 121,000 | 120,800 | |||||||||||||
Income tax expense | 84,900 | 87,600 | |||||||||||||
Depreciation and amortization | 96,000 | 95,500 | |||||||||||||
EBITDA | 429,400 | 435,400 | |||||||||||||
Adjustments: | |||||||||||||||
Share-based compensation | 13,800 | 13,800 | |||||||||||||
Transaction costs | 1,800 | 1,800 | |||||||||||||
Total adjustments | 15,600 | 15,600 | |||||||||||||
Adjusted EBITDA | $ | 445,000 | $ | 451,000 |
AMSG Reports Fourth-Quarter Results | ||
Page 8 | ||
February 25, 2015 | ||
AMSURG CORP. Unaudited Selected Consolidated Financial and Operating Data, continued (In thousands) | |||||||
December 31, | December 31, | ||||||
Balance Sheet Data: | 2014 | 2013 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 208,079 | $ | 50,840 | |||
Restricted cash and marketable securities | 10,219 | — | |||||
Accounts receivable, net of allowance of $113,357 and $27,862, respectively | 233,053 | 105,072 | |||||
Supplies inventory | 19,974 | 18,414 | |||||
Prepaid and other current assets | 115,362 | 36,699 | |||||
Total current assets | 586,687 | 211,025 | |||||
Property and equipment, net | 180,448 | 163,690 | |||||
Investments in unconsolidated affiliates | 75,475 | 15,526 | |||||
Goodwill | 3,381,149 | 1,758,970 | |||||
Intangible assets, net | 1,273,879 | 27,867 | |||||
Other assets | 25,886 | 866 | |||||
Total assets | $ | 5,523,524 | $ | 2,177,944 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 18,826 | $ | 20,844 | |||
Accounts payable | 29,585 | 27,501 | |||||
Accrued salaries and benefits | 140,044 | 32,294 | |||||
Accrued interest | 29,644 | 1,885 | |||||
Other accrued liabilities | 67,986 | 7,346 | |||||
Total current liabilities | 286,085 | 89,870 | |||||
Long-term debt | 2,232,186 | 583,298 | |||||
Deferred income taxes | 633,480 | 176,020 | |||||
Other long-term liabilities | 89,443 | 25,503 | |||||
Commitments and contingencies | |||||||
Noncontrolling interests – redeemable | 184,099 | 177,697 | |||||
Equity: | |||||||
Mandatory convertible preferred stock, no par value, 5,000 shares authorized, 1,725 and 0 shares issued and outstanding, respectively | 166,632 | — | |||||
Common stock, no par value, 70,000 shares authorized, 48,113 and 32,353 shares outstanding, respectively | 885,393 | 185,873 | |||||
Retained earnings | 627,522 | 578,324 | |||||
Total AmSurg Corp. equity | 1,679,547 | 764,197 | |||||
Noncontrolling interests – non-redeemable | 418,684 | 361,359 | |||||
Total equity | 2,098,231 | 1,125,556 | |||||
Total liabilities and equity | $ | 5,523,524 | $ | 2,177,944 |
AMSG Reports Fourth-Quarter Results | ||
Page 9 | ||
February 25, 2015 | ||
AMSURG CORP. Unaudited Selected Consolidated Financial and Operating Data, continued (In thousands) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
Statement of Cash Flow Data: | 2014 | 2013 | 2014 | 2013 | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net earnings | $ | 79,084 | $ | 71,168 | $ | 244,793 | $ | 261,544 | |||||||
Adjustments to reconcile net earnings to net cash flows provided by operating activities: | |||||||||||||||
Depreciation and amortization | 22,811 | 8,330 | 60,344 | 32,400 | |||||||||||
Amortization of deferred loan costs | 2,070 | — | 17,715 | 1,977 | |||||||||||
Provision for uncollectibles | 69,559 | — | 139,274 | 21,947 | |||||||||||
Net (gain) loss on sale of long-lived assets | 375 | (1,552 | ) | 2,843 | (1,468 | ) | |||||||||
Gain on deconsolidation | — | — | (3,411 | ) | (2,237 | ) | |||||||||
Share-based compensation | 2,716 | 2,251 | 10,104 | 8,321 | |||||||||||
Excess tax benefit from share-based compensation | (889 | ) | (5,357 | ) | (3,177 | ) | (7,247 | ) | |||||||
Deferred income taxes | (608 | ) | 8,528 | 30,780 | 38,363 | ||||||||||
Equity in earnings of unconsolidated affiliates | (3,577 | ) | (958 | ) | (7,038 | ) | (3,151 | ) | |||||||
Debt extinguishment costs | — | — | 4,536 | — | |||||||||||
Increases (decreases) in cash and cash equivalents, net of acquisitions and dispositions: | |||||||||||||||
Accounts receivable | (71,905 | ) | 142 | (137,663 | ) | (23,244 | ) | ||||||||
Supplies inventory | (274 | ) | 470 | (206 | ) | 132 | |||||||||
Prepaid, supplies and other current assets | 15,323 | (4,307 | ) | (9,091 | ) | (5,308 | ) | ||||||||
Accounts payable | 1,567 | 3,264 | (8,440 | ) | 441 | ||||||||||
Accrued expenses and other liabilities | 17,807 | (127 | ) | 66,175 | 6,693 | ||||||||||
Other, net | 2,261 | 2,039 | 4,833 | 3,661 | |||||||||||
Net cash flows provided by operating activities | 136,320 | 83,891 | 412,371 | 332,824 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Acquisitions and related expenses | (45,410 | ) | (14,139 | ) | (2,184,058 | ) | (73,594 | ) | |||||||
Acquisition of property and equipment | (17,108 | ) | (8,145 | ) | (40,217 | ) | (28,856 | ) | |||||||
Proceeds from sale of interests in surgery centers | 2,100 | 3,402 | 7,069 | 3,553 | |||||||||||
Purchases of marketable securities | (2,988 | ) | — | (6,474 | ) | — | |||||||||
Maturities of marketable securities | 3,486 | — | 3,486 | — | |||||||||||
Other | (7,023 | ) | 52 | (4,941 | ) | 159 | |||||||||
Net cash flows used in investing activities | (66,943 | ) | (18,830 | ) | (2,225,135 | ) | (98,738 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from long-term borrowings | 2,559 | 32,769 | 2,048,958 | 162,204 | |||||||||||
Repayment on long-term borrowings | (5,432 | ) | (50,407 | ) | (408,475 | ) | (202,083 | ) | |||||||
Distributions to noncontrolling interests | (50,654 | ) | (47,068 | ) | (190,097 | ) | (184,149 | ) | |||||||
Proceeds from preferred stock offering | — | — | 172,500 | — | |||||||||||
Cash dividends for preferred shares | (2,264 | ) | — | (4,503 | ) | — | |||||||||
Proceeds from common stock offering | — | — | 439,875 | — | |||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 480 | 10,060 | 2,630 | 33,349 | |||||||||||
Repurchase of common stock | (1,725 | ) | (10,483 | ) | (4,615 | ) | (45,964 | ) | |||||||
Excess tax benefit from share-based compensation | 889 | 5,357 | 3,177 | 7,247 | |||||||||||
Payments of equity issuance costs | (128 | ) | — | (24,494 | ) | — | |||||||||
Financing costs incurred | (138 | ) | (65 | ) | (65,811 | ) | (1,322 | ) | |||||||
Other | 1,034 | 113 | 858 | 1,074 | |||||||||||
Net cash flows provided by (used in) financing activities | (55,379 | ) | (59,724 | ) | 1,970,003 | (229,644 | ) | ||||||||
Net increase in cash and cash equivalents | 13,998 | 5,337 | 157,239 | 4,442 | |||||||||||
Cash and cash equivalents, beginning of year | 194,081 | 45,503 | 50,840 | 46,398 | |||||||||||
Cash and cash equivalents, end of year | $ | 208,079 | $ | 50,840 | $ | 208,079 | $ | 50,840 |
AMSG Reports Fourth-Quarter Results | ||
Page 10 | ||
February 25, 2015 | ||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March, 31 | June 30, | Sept. 30, | Sept. 30, | ||||||||||||
Statement of Earnings Data: | 2014 | 2014 | 2014 | 2014 | |||||||||||
Revenue | $ | 259,561 | $ | 278,227 | $ | 555,543 | $ | 1,093,331 | |||||||
Provision for uncollectibles | — | — | (53,193 | ) | (53,193 | ) | |||||||||
Net revenue | 259,561 | 278,227 | 502,350 | 1,040,138 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries and benefits | 82,149 | 84,053 | 240,337 | 406,539 | |||||||||||
Supply cost | 37,805 | 40,873 | 41,886 | 120,564 | |||||||||||
Other operating expenses | 54,168 | 55,812 | 81,263 | 191,243 | |||||||||||
Transaction costs | — | 3,579 | 25,102 | 28,681 | |||||||||||
Depreciation and amortization | 8,259 | 8,436 | 20,838 | 37,533 | |||||||||||
Total operating expenses | 182,381 | 192,753 | 409,426 | 784,560 | |||||||||||
Gain on deconsolidation | 2,045 | 1,366 | — | 3,411 | |||||||||||
Equity in earnings of unconsolidated affiliates | 764 | 539 | 2,158 | 3,461 | |||||||||||
Operating income | 79,989 | 87,379 | 95,082 | 262,450 | |||||||||||
Interest expense, net | 6,960 | 6,892 | 39,054 | 52,906 | |||||||||||
Debt extinguishment costs | — | — | 16,887 | 16,887 | |||||||||||
Earnings from continuing operations before income taxes | 73,029 | 80,487 | 39,141 | 192,657 | |||||||||||
Income tax expense | 12,982 | 12,798 | 22 | 25,802 | |||||||||||
Net earnings from continuing operations | 60,047 | 67,689 | 39,119 | 166,855 | |||||||||||
Net earnings (loss) from discontinued operations | 68 | 483 | (1,697 | ) | (1,146 | ) | |||||||||
Net earnings | 60,115 | 68,172 | 37,422 | 165,709 | |||||||||||
Net earnings attributable to noncontrolling interests | 42,920 | 49,211 | 47,256 | 139,387 | |||||||||||
Net earnings (loss) attributable to AmSurg Corp. shareholders | 17,195 | 18,961 | (9,834 | ) | 26,322 | ||||||||||
Preferred stock dividends | — | — | (2,239 | ) | (2,239 | ) | |||||||||
Net earnings (loss) attributable to AmSurg Corp. common shareholders | $ | 17,195 | $ | 18,961 | $ | (12,073 | ) | $ | 24,083 | ||||||
Amounts attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Earnings (loss) from continuing operations, net of income tax | $ | 17,392 | $ | 18,771 | $ | (10,697 | ) | $ | 25,466 | ||||||
Earnings (loss) from discontinued operations, net of income tax | (197 | ) | 190 | (1,376 | ) | (1,383 | ) | ||||||||
Net earnings (loss) attributable to AmSurg Corp. common shareholders | $ | 17,195 | $ | 18,961 | $ | (12,073 | ) | $ | 24,083 | ||||||
Basic earnings (loss) per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Net earnings (loss) from continuing operations | $ | 0.55 | $ | 0.59 | $ | (0.23 | ) | $ | 0.70 | ||||||
Net earnings (loss) from discontinued operations | (0.01 | ) | 0.01 | (0.03 | ) | (0.04 | ) | ||||||||
Net earnings (loss) | $ | 0.54 | $ | 0.60 | $ | (0.26 | ) | $ | 0.66 | ||||||
Diluted earnings (loss) per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||
Net earnings (loss) from continuing operations | $ | 0.54 | $ | 0.58 | $ | (0.23 | ) | $ | 0.69 | ||||||
Net earnings (loss) from discontinued operations | (0.01 | ) | 0.01 | (0.03 | ) | (0.04 | ) | ||||||||
Net earnings (loss) | $ | 0.54 | $ | 0.59 | $ | (0.26 | ) | $ | 0.65 | ||||||
Weighted average number of shares and share equivalents outstanding: | |||||||||||||||
Basic | 31,716 | 31,825 | 46,320 | 36,620 | |||||||||||
Diluted | 32,120 | 32,233 | 46,320 | 37,026 |
AMSG Reports Fourth-Quarter Results | ||
Page 11 | ||
February 25, 2015 | ||
For the Three Months Ended | |||||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Year Ended | |||||||||||||||
Statement of Earnings Data: | 2013 | 2013 | 2013 | 2013 | Dec. 31, 2013 | ||||||||||||||
Net revenues | $ | 253,364 | $ | 262,497 | $ | 262,240 | $ | 279,095 | $ | 1,057,196 | |||||||||
Operating expenses: | |||||||||||||||||||
Salaries and benefits | 79,839 | 79,897 | 83,191 | 84,658 | 327,585 | ||||||||||||||
Supply cost | 36,377 | 38,144 | 37,143 | 41,462 | 153,126 | ||||||||||||||
Other operating expenses | 51,269 | 52,417 | 54,774 | 58,041 | 216,501 | ||||||||||||||
Transaction costs | 35 | 140 | 110 | 15 | 300 | ||||||||||||||
Depreciation and amortization | 7,874 | 7,986 | 8,210 | 8,330 | 32,400 | ||||||||||||||
Total operating expenses | 175,394 | 178,584 | 183,428 | 192,506 | 729,912 | ||||||||||||||
Gain on deconsolidation | 2,237 | — | — | — | 2,237 | ||||||||||||||
Equity in earnings of unconsolidated affiliates | 402 | 696 | 1,095 | 958 | 3,151 | ||||||||||||||
Operating income | 80,609 | 84,609 | 79,907 | 87,547 | 332,672 | ||||||||||||||
Interest expense, net | 7,540 | 7,509 | 7,292 | 7,184 | 29,525 | ||||||||||||||
Earnings from continuing operations before income taxes | 73,069 | 77,100 | 72,615 | 80,363 | 303,147 | ||||||||||||||
Income tax expense | 12,001 | 12,493 | 11,145 | 13,015 | 48,654 | ||||||||||||||
Net earnings from continuing operations | 61,068 | 64,607 | 61,470 | 67,348 | 254,493 | ||||||||||||||
Net earnings from discontinued operations | 1,205 | 1,229 | 797 | 3,820 | 7,051 | ||||||||||||||
Net earnings | 62,273 | 65,836 | 62,267 | 71,168 | 261,544 | ||||||||||||||
Net earnings attributable to noncontrolling interests | 44,462 | 47,273 | 45,496 | 51,610 | 188,841 | ||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders | $ | 17,811 | $ | 18,563 | $ | 16,771 | $ | 19,558 | $ | 72,703 | |||||||||
Amounts attributable to AmSurg Corp. common shareholders: | |||||||||||||||||||
Earnings from continuing operations, net of income tax | $ | 17,349 | $ | 18,093 | $ | 16,636 | $ | 18,931 | $ | 71,009 | |||||||||
Discontinued operations, net of income tax | 462 | 470 | 135 | 627 | 1,694 | ||||||||||||||
Net earnings attributable to AmSurg Corp. common shareholders | $ | 17,811 | $ | 18,563 | $ | 16,771 | $ | 19,558 | $ | 72,703 | |||||||||
Basic earnings per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||||||
Net earnings from continuing operations | $ | 0.56 | $ | 0.58 | $ | 0.53 | $ | 0.60 | $ | 2.27 | |||||||||
Net earnings from discontinued operations | 0.01 | 0.02 | — | 0.02 | 0.05 | ||||||||||||||
Net earnings | $ | 0.57 | $ | 0.59 | $ | 0.53 | $ | 0.62 | $ | 2.32 | |||||||||
Diluted earnings per share attributable to AmSurg Corp. common shareholders: | |||||||||||||||||||
Net earnings from continuing operations | $ | 0.54 | $ | 0.57 | $ | 0.52 | $ | 0.59 | $ | 2.22 | |||||||||
Net earnings from discontinued operations | 0.01 | 0.01 | — | 0.02 | 0.05 | ||||||||||||||
Net earnings | $ | 0.56 | $ | 0.58 | $ | 0.52 | $ | 0.61 | $ | 2.28 | |||||||||
Weighted average number of shares and share equivalents outstanding: | |||||||||||||||||||
Basic | 31,217 | 31,208 | 31,376 | 31,549 | 31,338 | ||||||||||||||
Diluted | 31,881 | 31,862 | 31,991 | 32,082 | 31,954 |
AMSG Reports Fourth-Quarter Results | ||
Page 12 | ||
February 25, 2015 | ||
(1) | We believe the calculation of adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders provides a better measure of our ongoing performance and provides better comparability to prior periods because it excludes the gains or loss from deconsolidations, which are non-cash in nature, acquisition costs, including associated debt extinguishment costs and deferred financing write-off, and acquisition-related amortization expense (the majority of which relate to the Sheridan transaction and which are of a nature and significance not generally associated with our historical individual center acquisition activity) and share-based compensation expense. Adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders should not be considered as a measure of financial performance under accounting principles generally accepted in the United States, and the item excluded from it is a significant component in understanding and assessing financial performance. Because adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders is not a measurement determined in accordance with accounting principles generally accepted in the United States and is thus susceptible to varying calculations, it may not be comparable as presented to other similarly titled measures of other companies. For purposes of calculating adjusted earnings per share, the Company utilizes the if-converted method to determine the number of diluted shares outstanding. In periods where utilizing the if-converted method is anti-dilutive, the mandatory convertible preferred stock will not be included in the calculation of diluted shares outstanding. |
(2) | We define Adjusted EBITDA of AmSurg as earnings before interest, income taxes, depreciation, amortization, share-based compensation, acquisition costs and gains or losses on deconsolidations and discontinued operations. Adjusted EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted 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. Adjusted 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 Adjusted EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted 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 Adjusted EBITDA as defined. |
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