Christopher A. Holden, President and Chief Executive Officer of AmSurg
Corp. (NASDAQ: AMSG), today announced financial results for the second
quarter ended June 30, 2012. Revenues for the quarter were $231.6
million, a 23% increase from $187.5 million for the second quarter of
2011. Net earnings from continuing operations attributable to AmSurg
common shareholders increased to $16.2 million, or $0.51 per diluted
share, for the second quarter of 2012 from $12.7 million, or $0.40 per
diluted share, for the second quarter of 2011, which included
acquisition transaction costs of $0.02 per diluted share. Excluding
these costs from the prior year, net earnings from continuing operations
per diluted share attributable to AmSurg common shareholders increased
21% to $0.51 for the latest quarter from $0.42 for the second quarter
last year.
Revenues for the first six months of 2012 increased 26% to $461.8
million from $365.2 million for the same period in 2011. Net earnings
from continuing operations attributable to AmSurg common shareholders
increased to $31.9 million, or $1.01 per diluted share, for the first
six months of 2012 from $24.3 million, or $0.78 per diluted share, for
the first half of 2011, which included acquisition transaction costs of
$0.02 per diluted share. Excluding these costs from the prior year, net
earnings from continuing operations per diluted share attributable to
AmSurg common shareholders increased 26% to $1.01 for the first half of
2012 from $0.80 for the comparable 2011 period.
Mr. Holden remarked, "AmSurg's second-quarter results represent the
third consecutive quarter in which our revenues have grown in excess of
20% on a comparable-quarter basis. For the latest quarter, this growth
was driven by a 3% increase in same-center revenue, as well as an
expansion in the number of centers in operation to 228 at the quarter's
end from 206 centers at the end of the second quarter last year. Our
centers produced a 14% increase in procedures for the latest quarter
compared with the second quarter last year, and revenue per procedure
increased 8%, consistent with the growth in multi-specialty centers as a
percentage of our center mix since the second quarter last year.
"During the second quarter, we completed the scheduled opening of one de
novo center. We also had seven centers under letter of intent at the end
of the quarter. We primarily applied our free cash flow for the quarter
to net repayments of long-term debt of $27.9 million, which contributed
to an improvement in our ratio of total debt to trailing 12 months
EBITDA as calculated under our credit agreement to 2.6 compared with 2.8
and 2.9 at March 31, 2012 and December 31, 2011, respectively.
"Net cash flows from operating activities increased 21% for the second
quarter of 2012 to $74.5 million from $61.7 million for the second
quarter of 2011. Excluding distributions to noncontrolling interests,
net cash flows from operations grew 17% to $30.7 million from
$26.2 million. Excluding distributions to noncontrolling interests, our
cash flow was 1.9 times net earnings from continuing operations
attributable to AmSurg common shareholders.
"In late June, we amended our credit agreements, which increased
availability under our revolving credit agreement by $25 million to $475
million, reduced the interest rate on the outstanding borrowings under
the agreement and extended its term through June 2017. At the end of the
second quarter, our availability under our revolving credit facility was
$159 million, and we had cash and cash equivalents of $37.6 million.
With expectations for continued substantial cash flow during 2012, we
believe we are well positioned to fund our planned growth for the year.
"Based on our performance through the first half of 2012 and our outlook
for the remainder of the year, we today affirm our established financial
guidance for 2012, while increasing the lower end of the expected range
of same-center revenue growth for the year. We also establish our
guidance for the third quarter of 2012, which reflects our more typical
seasonality, as well as one less operating day than the second quarter
of 2012 and the third quarter last year, as follows:
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Revenues in a range of $905 million to $925 million for 2012.
-
Same-center revenue increase of 2% to 3% for 2012, up from the prior
range of 1% to 3%.
-
Center acquisitions for 2012 that generate annualized operating income
in a range of $25 million to $29 million, including approximately $2
million from centers acquired in the first half of 2012.
-
Net cash flow provided by operating activities, less distributions to
noncontrolling interests, in a range of $115 million to $120 million
for 2012.
-
Net earnings from continuing operations per diluted share attributable
to common shareholders for 2012 in a range of $1.97 to $2.01.
-
Net earnings from continuing operations per diluted share attributable
to common shareholders for the third quarter of 2012 in a range of
$0.47 to $0.49."
Mr. Holden concluded, "We are pleased with the improved operating
environment evidenced by two consecutive quarters of at least 3%
same-center revenue growth, compared with 1% for the first two quarters
last year. While not discounting the potential impact of uncertain
economic conditions and high unemployment, our second-quarter results
support our confidence in meeting our guidance of revenue and earnings
growth in the mid to high teens for 2012.
"Beyond 2012, we expect AmSurg's unique positioning in the free-standing
ASC industry to support sustained growth. In operating the largest
number of centers in the country, we are playing a significant role in
expanding access to lower cost, high quality healthcare at a time when
demand for such access from patients, payers and physicians is expected
to steadily grow for the foreseeable future. In addition to organic
growth, we have an unequaled record of expanding our center base through
acquisition in an industry that remains highly fragmented. As the only
public company focused on ambulatory care, we believe our access to
capital represents a competitive advantage in implementing our center
acquisition strategy, in addition to our strong cash flows and financial
position. We further believe that we have built a market-leading
position as the physician partner of choice due to our fundamental
commitment to differentiating AmSurg through a physician-centric
culture. As a result of our competitive strengths in an industry
experiencing favorable long-term growth trends, we are confident of our
prospects for producing long-term growth in earnings and shareholder
value."