AmSurg Announces 26% Growth in Third-Quarter Earnings from Continuing Operations to $0.29 Per Diluted Share.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. -- Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq: AMSG AMSG Air Mobility Support Group (US Air Force) AMSG Ad Majorem Satanae Gloriam AMSG Allied Military Security Guidelines AMSG Advanced Metal Services Group AMSG Appropriate Military Systems Guide AMSG American Subterfuge Clothing ), today announced financial results for the third quarter and first nine months of 2004. For the third quarter, revenues were $81,903,000, a 14% increase from $72,079,000 for the third quarter of 2003. Net earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the rose 25% to $8,729,000 from $6,983,000. Net 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 from continuing operations increased 26% for the third quarter of 2004 to $0.29 from $0.23 for the third quarter last year. As previously announced, AmSurg also recognized a $0.14 per diluted share gain for the latest quarter on the sale of its interest in a surgery center. This gain and the center's results of operations have been classified as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Revenues for the first nine months of 2004 increased 17% to $245,988,000 from $210,405,000 for the first nine months of 2003. Net earnings from continuing operations were $24,409,000, or $0.79 per diluted share, for the first nine months of 2004, up from $20,205,000, or $0.66 per diluted share, for the first nine months of 2003. Adjusted net earnings from continuing operations for the first nine months of 2004 increased 24% to $25,069,000 from $20,205,000 for the comparable period in 2003, and adjusted earnings per diluted share from continuing operations increased 24% to $0.82 from $0.66. Prior-period financial data in this release has been restated to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current-year presentation, which now reflects operating results from continuing and discontinued operations, as well as a 3-for-2 stock split effected in March 2004. See page 4 for a reconciliation of adjusted net earnings from continuing operations to net earnings from continuing operations. "AmSurg produced substantial earnings growth for the third quarter, consistent with our expectations," said Mr. McDonald. "We are pleased with this performance, especially considering that four major hurricanes in the Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and region adversely affected revenue growth at 25 of our centers during the months of August and September September: see month. . Hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. preparations and evacuations resulted in business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. as scheduled 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. were postponed or canceled. While experiencing no significant property damage, normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of of these centers continued to be disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. following landfall land·fall n. 1. The act or an instance of sighting or reaching land after a voyage or flight. 2. The land sighted or reached after a voyage or flight. of the hurricanes due to power outages This is a list of famous wide-scale power outages. 1965
tr.v. dis·lo·cat·ed, dis·lo·cat·ing, dis·lo·cates 1. To put out of usual or proper place, position, or relationship. 2. patients, doctors and surgery center employees. Insurance recoveries from the business disruption of these centers will be nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. , if any. In addition, the opening of two Florida centers which are under construction and were scheduled to have opened in the third quarter and early fourth quarter have been delayed until late 2004. We estimate that, as a result of the hurricanes, revenues were reduced by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2 million for the third quarter, our same-center revenue growth was lowered from 5% to 2%, and earnings per share were lowered by approximately $0.02 per share. "Offsetting the substantial impact of the hurricanes to our revenues and earnings for the quarter, Other Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were lower than anticipated due to continued reductions in bad debt expense; a gain on sale of a 5% interest in a surgery center to our related physician partners, which reduced our ownership in that center from 60% to 55%; lower repair and maintenance costs; and a reduction in the cost of malpractice insurance Noun 1. malpractice insurance - insurance purchased by physicians and hospitals to cover the cost of being sued for malpractice; "obstetricians have to pay high rates for malpractice insurance" . The impact of these items was an increase of approximately $0.02 in earnings per share. "In addition to our third-quarter earnings growth, we are also pleased with the continued momentum achieved in our new center development and acquisition activities. We opened two new 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 during the quarter and acquired one center. These three new centers increased our centers in operation to 119 at the quarter's end from 107 at the end of the third quarter last year. Furthermore, we completed the latest quarter with 12 centers under development and eight centers under letter of intent. "We expect four of these centers under development to open during the fourth quarter, with the remaining 8 centers scheduled to open in 2005, leaving us well positioned to meet our de novo center opening goals for 2005. In addition, since the beginning of the fourth quarter, we have already completed the acquisitions of three of the centers under letter of intent. We also continue to expect the determination of a Certificate of Need related to the acquisition of four centers under letter of intent to occur during the fourth quarter. Based on this pipeline, we remain confident of meeting our guidance for 2004 of a net increase in our centers in operation of 12 to 15 centers." During the third quarter the Company completed its authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. programs acquiring 1,290,214 AmSurg shares at an average price of $22.29 and at a total cost of $28.8 million. This stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. will produce minimal accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the during the fourth quarter but is expected to be accretive by $0.03 per share for 2005. Mr. McDonald noted, "As we look to the fourth quarter of 2004, we expect some continued disruption in our Florida centers due to the aftermath AFTERMATH. A right to have the last crop of grass or pasturage. 1 Chit. Pr. 181. effect of the hurricanes on our patients in that region and the two de novo centers under development. In addition, one of our existing centers in the West region was moved to a new, expanded location on September 27th. This newly located center has not received its state license and, because of continued expected delays, may be closed until mid-November n. 1. the middle part of November. Noun 1. mid-November - the middle part of November period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue . With these events in mind, and within the parameters of our previous guidance, we are narrowing the range for projected adjusted net earnings for 2004 to $1.11 to $1.12 per diluted share. In addition, we are increasing 2005 guidance to a range of $1.42 to $1.46 to include the $0.03 per share accretion from the stock repurchases." The information contained in the preceding paragraph is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information, and the attainment of these targets is dependent not only on AmSurg's achievement of its assumptions discussed above, but also on the risks and uncertainties listed below that could cause actual results, performance or developments to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by this forward-looking information. Mr. McDonald concluded, "We are pleased that even with the difficult circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or experienced in the third quarter, we were able to meet our earnings target for the quarter and to reconfirm re·con·firm tr.v. re·con·firmed, re·con·firm·ing, re·con·firms To confirm again, especially to establish or support more firmly: reconfirmed the reservations. our guidance for full year 2004. We are excited about our growth opportunities in 2005 due to the strength of our pipeline of acquisition and de novo centers. We continue to believe that the strength of our business model will provide sustained and profitable 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. growth." AmSurg Corp. will hold a conference call to discuss this release today at 5:00 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 15 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 November November: see month. 26, 2004. 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, including centers under letter of intent; 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 generate and 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; the ability of its physician partners to recruit RECRUIT. A newly made soldier. additional physicians to their practices; 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; changes in the medical staff at its centers; changes in the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures for ambulatory surgery centers by the Centers for Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. & Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. Services; the risk of legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes that would establish uniform rates for outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. surgical services, regardless of setting; risks associated with the Company's status as a general partner of limited partnerships; the Company's ability to maintain its technological capabilities in compliance with regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. ; risks associated with the valuation and tax deductibility of goodwill; the risk of legislative or regulatory changes that would prohibit pro·hib·it tr.v. pro·hib·it·ed, pro·hib·it·ing, pro·hib·its 1. To forbid by authority: Smoking is prohibited in most theaters. See Synonyms at forbid. 2. physician ownership in ambulatory surgery centers; and the Company's ability to obtain the necessary financing to fund the purchase of its physician partners' minority interest in the event of a regulatory change that would require such a purchase. AmSurg disclaims any intent or obligation to update these forward-looking statements. AmSurg Corp. develops, acquires and manages physician practice-based ambulatory surgery centers in partnership with surgical and other group practices. At September 30, 2004, AmSurg owned a majority interest in 119 centers and had 12 centers under development.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)
For the For the
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------ ------------------
Statement of Earnings Data: 2004 2003 2004 2003
--------------------------- -------- -------- -------- --------
Revenues $ 81,903 $ 72,079 $245,988 $210,405
Operating expenses:
Salaries and benefits 22,109 19,955 66,087 56,961
Supply cost 9,128 7,984 27,678 23,740
Other operating expenses 15,907 14,655 48,560 43,918
Loss on long-term note
receivable - - 1,100 -
Depreciation and
amortization 3,406 2,782 9,926 8,373
-------- -------- -------- --------
Total operating expenses 50,550 45,376 153,351 132,992
-------- -------- -------- --------
Operating income 31,353 26,703 92,637 77,413
Minority interest 16,317 14,661 50,536 42,609
Interest expense, net 488 404 1,420 1,129
-------- -------- -------- --------
Earnings from continuing
operations before income
taxes 14,548 11,638 40,681 33,675
Income tax expense 5,819 4,655 16,272 13,470
-------- -------- -------- --------
Net earnings from
continuing operations 8,729 6,983 24,409 20,205
Discontinued operations:
Earnings from operations
of discontinued interests
in surgery centers, net
of income taxes 105 548 1,038 1,666
Gain on disposal of
discontinued interests
in surgery centers, net
of income taxes 4,332 - 5,573 -
-------- -------- -------- --------
Earnings from discontinued
operations 4,437 548 6,611 1,666
-------- -------- -------- --------
Net earnings $ 13,166 $ 7,531 $ 31,020 $ 21,871
======== ======== ======== ========
Basic earnings per common
share:
Net earnings from
continuing operations $ 0.29 $ 0.23 $ 0.81 $ 0.67
Net earnings $ 0.44 $ 0.25 $ 1.03 $ 0.73
Diluted earnings per common
share:
Net earnings from
continuing operations $ 0.29 $ 0.23 $ 0.79 $ 0.66
Net earnings $ 0.43 $ 0.25 $ 1.01 $ 0.71
Weighted average number of shares
and share equivalents (000's):
Basic 29,886 29,877 30,094 30,161
Diluted 30,454 30,451 30,716 30,618
Reconciliation to Adjusted Net
Earnings from Continuing
Operations (1):
------------------------------
Net earnings from continuing
operations $ 8,729 $ 6,983 $ 24,409 $ 20,205
Add: Loss on long-term note
receivable, net of income
taxes - - 660 -
-------- -------- -------- --------
Adjusted net earnings from
continuing operations $ 8,729 $ 6,983 $ 25,069 $ 20,205
======== ======== ======== ========
Adjusted diluted net earnings
per share from continuing
operations $ 0.29 $ 0.23 $ 0.82 $ 0.66
======== ======== ======== ========
Diluted weighted average
number of shares and
share equivalents (000's) 30,454 30,451 30,716 30,618
======== ======== ======== ========
(1) Adjusted net earnings from continuing operations is a non-GAAP
financial measure. The Company believes its calculation of
adjusted diluted net earnings from continuing operations per share
provides a better measure of the Company's ongoing performance and
better comparability to prior periods, because it excludes an item
unrelated to the Company's core business operations. The adjusted
items should not be considered in isolation or as a substitute for
net earnings from continuing operations or diluted net earnings
from continuing operations per share as determined in accordance
with accounting principles generally accepted in the United
States.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(In thousands)
For the For the
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Operating Data:
---------------
Continuing centers in
operation at end of period 119 107 119 107
Centers under development/not
opened at end of period 12 14 12 14
Centers under letter of
intent 8 6 8 6
Average number of continuing
centers in operation 117 105 115 104
Average revenue per center $ 702 $ 684 $ 2,133 $ 2,031
Same center revenues
increase 2% 7% 5% 7%
Procedures performed during
the period 151,944 135,734 453,144 391,769
Cash flows provided by
operating activities $ 15,404 $ 14,383 $ 41,589 $ 34,398
Cash flows used by investing
activities $ (7,690) $(22,268) $(37,295) $(39,434)
Cash flows provided by (used
in) financing activities $ (7,047) $ 10,516 $ (2,522) $ 7,315
Reconciliation of net earnings
to EBITDA (2):
Net earnings from
continuing operations $ 8,729 $ 6,983 $ 24,409 $ 20,205
Add: income tax expense 5,819 4,655 16,272 13,470
Add: interest expense,
net 488 404 1,420 1,129
Add: loss on long-term
notes receivable - - 1,100 -
Add: depreciation and
amortization 3,406 2,782 9,926 8,373
-------- -------- -------- --------
EBITDA $ 18,442 $ 14,824 $ 53,127 $ 43,177
======== ======== ======== ========
June 30, Dec. 31,
Balance Sheet Data: 2004 2003
------------------- -------- --------
Cash and cash equivalents $ 16,030 $ 14,258
Accounts receivable, net 36,961 36,172
Working capital 47,516 46,009
Total assets 394,128 356,189
Long-term debt 76,187 53,137
Minority interest 38,229 36,796
Shareholders' equity 241,015 232,898
(2) EBITDA is defined as earnings before interest, income taxes, loss
on long-term note receivable 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 alternatives 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 is the financial measure
calculated and presented in accordance with generally accepted
accounting principles that is most comparable to EBITDA, as
defined.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(In thousands)
Presented below is certain statement of earnings and operating data
for 2003, which has been restated in order to conform to the current
year presentation, which now reflects operating results from
continuing and discontinued operations.
For the
Three Months Ended For the
------------------------------------- Year Ended
Statement of March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
Earnings Data: 2003 2003 2003 2003 2003
--------------- -------- -------- -------- -------- --------
Revenues $ 67,505 $ 70,821 $ 72,079 $ 76,763 $287,168
Operating expenses:
Salaries and
benefits 18,052 18,954 19,955 19,884 76,845
Supply cost 7,728 8,028 7,984 9,099 32,839
Other operating
expenses 14,496 14,767 14,655 16,057 59,975
Depreciation and
amortization 2,637 2,954 2,782 2,895 11,268
-------- -------- -------- -------- --------
Total operating
expenses 42,913 44,703 45,376 47,935 180,927
-------- -------- -------- -------- --------
Operating
income 24,592 26,118 26,703 28,828 106,241
Minority interest 13,589 14,359 14,661 15,681 58,290
Interest expense,
net 295 430 404 399 1,528
-------- -------- -------- -------- --------
Earnings from
continuing
operations
before income
taxes 10,708 11,329 11,638 12,748 46,423
Income tax expense 4,283 4,532 4,655 5,099 18,569
-------- -------- -------- -------- --------
Net earnings from
continuing
operations 6,425 6,797 6,983 7,649 27,854
Discontinued
operations:
Earnings from
operations of
discontinued
interests in
surgery centers,
net of income
taxes 578 540 548 606 2,272
-------- -------- -------- -------- --------
Net earnings $ 7,003 $ 7,337 $ 7,531 $ 8,255 $ 30,126
======== ======== ======== ======== ========
Basic earnings per
common share:
Net earnings from
continuing
operations $ 0.21 $ 0.23 $ 0.23 $ 0.25 $ 0.92
Net earnings $ 0.23 $ 0.25 $ 0.25 $ 0.27 $ 1.00
Diluted earnings per
common share:
Net earnings from
continuing
operations $ 0.21 $ 0.22 $ 0.23 $ 0.25 $ 0.91
Net earnings $ 0.22 $ 0.24 $ 0.25 $ 0.27 $ 0.98
Weighted average
number of shares
and share
equivalents (000's):
Basic 30,832 29,772 29,877 30,075 30,139
Diluted 31,158 30,246 30,451 30,809 30,666
Operating Data:
---------------
Reconciliation of net earnings
to EBITDA (3):
Net earnings from
continuing
operations $ 6,425 $ 6,797 $ 6,983 $ 7,649 $ 27,854
Add: income tax
expense 4,283 4,532 4,655 5,099 18,569
Add: interest
expense, net 295 430 404 399 1,528
Add: depreciation
and amortization 2,637 2,954 2,782 2,895 11,268
-------- -------- -------- -------- --------
EBITDA $ 13,640 $ 14,713 $ 14,824 $ 16,042 $ 59,219
======== ======== ======== ======== ========
(3) 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 alternatives 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 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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