AmSurg Corp. Announces 27% Growth in Third Quarter; Earnings Per Share to $0.19.Business Editors 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)--Oct. 17, 2001 Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq/NM: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 record financial results for the third quarter and nine months ended September September: see month. 30, 2001. Revenues for the third quarter increased 40% to $51,582,000 from $36,717,000 for the third quarter of 2000. Net earnings rose 73% to $3,944,000 from $2,275,000. 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 third quarter were $0.19, up 27% from $0.15 for the third quarter of 2000. For the first nine months of 2001, revenues increased 42% to $146,195,000 from $102,940,000 for the nine months ended September 30, 2000. Net earnings were $10,338,000, up 59% from $6,503,000. Diluted earnings per share rose 27% to $0.56 for the latest nine months from $0.44 for the first nine months of 2000. Mr. McDonald said, "We are very pleased with the strong continuing growth AmSurg has produced and with its potential for additional profitable growth. We are successfully building on our leadership position in the practice-based single-specialty surgery center business by providing high quality care in the most cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. setting. We believe our financial performance reflects the strength of our business model; and, with the third quarter's results, we have now achieved new records for revenues and net earnings, as well as produced increased same-center revenues, for each of the 15 consecutive quarters that we have been a publicly held company. "Consistent with historical trends, our revenue growth for the latest quarter resulted from a significant increase in same-center revenues and from the continued expansion of our base of centers in operation. Same-center revenues grew 9% for the latest quarter and 10% for the first nine months of the year. Virtually all of this growth continues to be attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased procedure volume. "AmSurg also completed four center acquisitions during the third quarter and sold one center, increasing the average number of centers in operation for the quarter by 33%. Through the first nine months of 2000, we opened or acquired 12 centers, putting us within our expected range of 12 to 15 new-center additions for the year. At the end of the third quarter, the Company's pipeline remained significant with three centers under development and eight centers under letter of intent. Since the end of the third quarter, we have already completed the acquisition of an additional center, our 13th new center for 2001, which was one of the centers under letter of intent at the third quarter's end. "Looking forward, we are confident of our ability to leverage AmSurg's proven business model and generate additional, sustainable profitable growth. We believe that our center-specific strategies designed to increase market share will generate annual improvement in same-center revenue in our targeted range of 7% to 9%. Based on the size of the market and our leading industry position, we are also comfortable that we can continue to develop 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 or complete center acquisitions to meet our new center expansion targets. In addition, with a strong financial position and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , which year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. have been more than double net earnings, AmSurg has the financial strength to implement these growth strategies for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. As a result, we continue to target comparable-quarter and comparable-year growth in diluted earnings per share in a range of 22% to 25%. "AmSurg's historic and future success is based on adding value to each party to every medical procedure: the physician, the patient and the payer," concluded Mr. McDonald. "We have proven that our business model produces this added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
cost-effective efficient - being effective without wasting time or effort or expense; "an efficient production manager"; "efficient engines save gas" manner. Our financial track record also demonstrates that we can manage the Company's business to generate 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. , consistent profitable growth. We will continue to be committed to growing this business at a sustainable rate of expansion and, thereby, creating the best conditions for the further growth of shareholder value." 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 the following Web sites - www.streetevents.com or www.vcall.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. 17, 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 Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and , 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. 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, 2001, AmSurg owned a majority interest in 92 centers and had three centers under development.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands except per share amounts)
For the Three Months
Ended September 30,
--------------------
Statement of Earnings Data: 2001 2000
-------- --------
Revenues $51,582 $36,717
Operating expenses:
Salaries and benefits 14,047 10,088
Supply cost 5,974 4,242
Other operating expenses 10,963 7,792
Depreciation and amortization 3,639 2,631
-------- --------
Total operating expenses 34,623 24,753
-------- --------
Operating income 16,959 11,964
Minority interest 9,971 6,932
Interest expense, net 410 1,332
-------- --------
Earnings before income taxes 6,578 3,700
Income tax expense 2,634 1,425
-------- --------
Net earnings $3,944 $2,275
======== ========
Earnings per common share:
Basic $0.20 $0.16
Diluted $0.19 $0.15
Weighted average number of shares
and share equivalents (000's):
Basic 19,971 14,572
Diluted 20,428 14,966
Operating Data:
Centers in operation at end of
period 92 74
Centers under development/not
opened at end of period 3 4
Development centers awaiting CON
approval at end of period -- 2
Centers under letter of intent 8 9
Average number of centers in
operation 93 70
Average revenue per center $556 $523
Same center revenues increase 9% 9%
Procedures performed during
the period 97,651 72,726
EBITDA after minority interest $10,627 $7,663
Operating cash flow per share $0.55 $0.28
For the Nine Months
Ended September 30,
--------------------
2001 2000
-------- --------
Statement of Earnings Data:
Revenues $146,195 $102,940
Operating expenses:
Salaries and benefits 39,477 28,817
Supply cost 17,078 11,972
Other operating expenses 30,835 21,296
Depreciation and amortization 10,458 7,248
-------- --------
Total operating expenses 97,848 69,333
-------- --------
Operating income 48,347 33,607
Minority interest 28,392 20,075
Interest expense, net 2,720 2,957
-------- --------
Earnings before income taxes 17,235 10,575
Income tax expense 6,897 4,072
-------- --------
Net earnings $10,338 $6,503
======== ========
Earnings per common share:
Basic $0.58 $0.45
Diluted $0.56 $0.44
Weighted average number of shares
and share equivalents (000's):
Basic 17,878 14,563
Diluted 18,529 14,899
Operating Data:
Centers in operation at end of
period 92 74
Centers under development/not
opened at end of period 3 4
Development centers awaiting CON
approval at end of period -- 2
Centers under letter of intent 8 9
Average number of centers in
operation 88 67
Average revenue per center $1,660 $1,542
Same center revenues increase 10% 10%
Procedures performed during
the period 282,831 207,196
EBITDA after minority interest $30,413 $20,780
Operating cash flow per share $1.39 $0.85
Balance Sheet Data: Sept. 30, Dec. 31,
2001 2000
-------- --------
Cash and cash equivalents $ 10,823 $ 7,688
Accounts receivable, net 28,414 24,468
Working capital 34,812 26,589
Total assets 230,755 190,652
Long-term debt and other
long-term obligations 10,462 71,832
Minority interest 24,255 21,063
Shareholders' equity 180,026 83,145
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