AmSurg 4th-Quarter Earnings Increase 31% to $0.17 Per Diluted Share; Same-Center Revenues Increase 11%.Business Editors, Health & Medical Writers NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--Feb. 20, 2001 Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp.(Nasdaq/NM:AMSGA) (Nasdaq/NM:AMSGB), today announced record financial results for the fourth quarter and year ended December December: see month. 31, 2000. Revenues for the fourth quarter increased 44% to $40,321,000 from $27,989,000 for the fourth quarter of 1999. Net earnings rose 31% to $2,563,000 from $1,961,000. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter also increased 31% to $0.17 from $0.13 for the fourth quarter last year. Revenues for 2000 increased 41% to $143,261,000 from $101,446,000 for 1999. Net earnings were $9,066,000, up 29% from $7,051,000. Diluted earnings per share rose 25% to $0.60 for the year from $0.48 for 1999. Results for 1999 exclude the impact of the cumulative effect of an accounting change. Mr. McDonald remarked, "AmSurg's strong fourth-quarter operating and financial results exceeded consensus expectations and produced another quarter of record revenues and earnings per share, as well as operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. that was more than double net earnings. We continue to be very pleased with our same-center revenue growth, which increased 11% for the fourth quarter and which has been positive for the 12 consecutive quarters that we have been a public company. With this growth, we achieved same-center revenue growth for 2000 of 10%, our third consecutive annual double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" increase, following 10% growth for 1999 and 12% growth for 1998. We believe that our consistent substantial growth, virtually all of which is driven by growth in procedures rather than price increases, reflects the value we provide to our physician partners, their patients and payers." "AmSurg also achieved substantial growth in its base of centers in operation during the fourth quarter by adding seven new centers, including three de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. centers and four acquired centers. One of the acquisitions represented our sixth purchase from Physicians Resource Group, Inc. ("PRG PRG Parti Radical de Gauche (French: Left Radical Party) PRG Purge PRG Programming Research Group (Oxford University) PRG Preliminary Remediation Goal PRG People's Revolutionary Government ") under a previously discussed definitive purchase agreement. As a result of this expansion in the fourth quarter, we had 81 centers in operation at the end of 2000, an increase of 29% over the 63 centers in operation at the end of 1999. "We continue to anticipate the addition of 12 to 15 new centers during the current year. We had four de novo centers under development at the end of 2000, one de novo center awaiting certificate of need certification and five centers under letter of intent. We also continue to negotiate under the PRG definitive agreement with regard to the acquisition of up to three additional centers, although there can be no assurance that any such transactions will occur. "We believe the 18 new centers added during 2000, 13 of which were added in the second half of the year, will make a substantial contribution to the anticipated profitable growth of AmSurg during 2001. We further expect continued significant growth in same-center revenues, and we maintain our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. target for sustainable same-center growth of 7% to 9%. "As a result of these positive factors, we expect to continue the earnings momentum the Company has demonstrated during the past three years, and we target 22% to 25% growth in earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the current year. We are confident we have the resources and business model to leverage the opportunities we see for additional profitable growth and to strengthen our position as the country's leading single-specialty surgery center company." AmSurg Corp. will hold a conference call to discuss this release today at 4:15 p.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by going to www.amsurg.com and clicking Investor Relations Investor relations The process by which the corporation communicates with its investors. or by going to www.streetevents.com at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , 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 through the end of business on March 22, 2001. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These statements, which have been included in reliance on the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by the important factors, among others, set forth in AmSurg's filings with the Securities and Exchange Commission, and, consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the Company's ability to enter into partnership or operating agreements An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. for new practice-based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery ; its ability to identify suitable acquisition candidates and negotiate and close acquisition transactions; its ability to obtain the necessary financing or capital on terms satisfactory to the Company to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its expansion strategy; its ability to manage growth; its ability to contract with managed care payers on terms satisfactory to the Company for its existing centers and its centers that are currently under development; its ability to obtain and retain appropriate licensing approvals for its existing centers and centers currently under development; its ability to minimize In a graphical environment, to hide an application that is currently displayed on screen. For example, in Windows and Mac, the application's window is removed from the screen and represented by an icon on the Windows Taskbar. In the Mac, the icon is placed in the Dock. See Win Minimize windows. start-up Start-up The earliest stage of a new business venture. losses of its development centers; its ability to maintain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. relations with its physician partners; and the implementation of the proposed rule issued by the Health Care Financing Administration Health Care Financing Administration, n.pr department in the U.S. agency of Health and Human Services responsible for the oversight of the Medicaid and Medicare benefit programs, including guidelines, payment, and coverage policies. , which would update the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures Surgical procedures have long and possibly daunting names. The meaning of many surgical procedure names can often be understood if the name is broken into parts. For example in splenectomy, "ectomy" is a suffix meaning the removal of a part of the body. "Splene-" means spleen. for ambulatory surgery centers; and risks associated with the Company's status as a general partner of limited partnerships. As to the current agreement with PRG, factors include, but are not limited to, the companies' respective abilities to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the remaining transactions contemplated thereunder; AmSurg's ability to enter into partnership or operating agreements with the physician owners of the surgery centers; AmSurg's ability to effectively integrate the operations of the PRG surgery centers into its operations; and AmSurg's ability to operate the PRG centers profitably. AmSurg disclaims any intent or obligation to update these forward-looking statements. AmSurg Corp. develops, acquires and manages physician practice-based ambulatory surgery centers and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. physician networks in partnership with surgical and other group practices. At December 31, 2000, AmSurg owned a majority interest in 81 centers and had four centers under development.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands except per share amounts)
For the Three Months
Ended December 31,
-----------------------
Statement of Earnings Data: 2000 1999
--------------------------- ---------- ----------
Revenues $ 40,321 $ 27,989
Operating expenses:
Salaries and benefits 10,953 7,699
Supply cost 4,626 2,845
Other operating expenses 8,149 6,326
Depreciation and amortization 3,053 2,061
Net(gain)loss on sale of assets -- 9
--------- ---------
Total operating expenses 26,781 18,940
--------- ---------
Operating income 13,540 9,049
Minority interest 7,627 5,406
Interest expense, net 1,746 454
--------- ---------
Earnings before income taxes and
cumulative effect of an
accounting change 4,167 3,189
Income tax expense 1,604 1,228
--------- ---------
Net earnings before cumulative
effect of an accounting change 2,563 1,961
Cumulative effect of a change in the
method in which pre-opening costs
are recorded -- --
--------- ---------
Net earnings $ 2,563 $ 1,961
========= =========
Basic earnings per common share:
Net earnings before cumulative
effect of an accounting change $ 0.17 $ 0.13
Net earnings $ 0.17 $ 0.13
Diluted earnings per common share:
Net earnings before cumulative
effect of an accounting change $ 0.17 $ 0.13
Net earnings $ 0.17 $ 0.13
Weighted average number of shares
and share equivalents (000's):
Basic 14,670 14,534
Diluted 15,422 14,848
Operating Data:
Same center revenues increase 11% 4%
Average number of centers in operation 75.44 58.75
Average revenue per center $ 534 $ 476
Procedures 81,298 56,923
Operating cash flow per share $ 0.38 $ 0.34
For the Year
Ended December 31,
----------------------
Statement of Earnings Data: 2000 1999
--------------------------- --------- ---------
Revenues $ 143,261 $ 101,446
Operating expenses:
Salaries and benefits 39,770 27,895
Supply cost 16,598 11,491
Other operating expenses 29,445 22,777
Depreciation and amortization 10,301 7,290
Net (gain) loss on sale of assets -- (25)
--------- ---------
Total operating expenses 96,114 69,428
--------- ---------
Operating income 47,147 32,018
Minority interest 27,702 19,431
Interest expense, net 4,703 1,122
--------- ---------
Earnings before income taxes and
cumulative effect of an
accounting change 14,742 11,465
Income tax expense 5,676 4,414
--------- ---------
Net earnings before cumulative
effect of an accounting change 9,066 7,051
Cumulative effect of a change in the
method in which pre-opening costs
are recorded -- (126)
--------- ---------
Net earnings $ 9,066 $ 6,925
========= =========
Basic earnings per common share:
Net earnings before cumulative
effect of an accounting change $ 0.62 $ 0.49
Net earnings $ 0.62 $ 0.48
Diluted earnings per common share:
Net earnings before cumulative
effect of an accounting change $ 0.60 $ 0.48
Net earnings $ 0.60 $ 0.47
Weighted average number of shares
and share equivalents (000's):
Basic 14,594 14,429
Diluted 15,034 14,778
Operating Data:
Same center revenues increase 10% 10%
Average number of centers in operation 68.92 54.57
Average revenue per center $ 2,079 $ 1,859
Procedures 288,494 207,754
Operating cash flow per share $ 1.23 $ 1.13
Dec. 31, Dec. 31,
Balance Sheet Data: 2000 1999
-------- --------
Cash and cash equivalents $ 7,688 $ 9,523
Working capital 26,589 21,029
Total assets 190,652 137,868
Long-term debt and purchase price payable 71,832 34,901
Minority interest 21,063 17,358
Shareholders' equity 83,145 72,708
Center Count:
Centers in operation at end of period 81 63
Centers under development/not opened at
end of period 4 12
Development centers awaiting CON
approval at end of period 1 -
Centers under letter of intent 5 4
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