AmSurg Corp. Reports 30% Growth in Fourth Quarter Earnings to $0.13 Per Share; Full Year Earnings Per Share Increases to $0.48.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. 22, 2000 Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq/NM: AMSGA) (Nasdaq/NM: AMSGB), today announced financial results for the fourth quarter and year ended December December: see month. 31, 1999. Revenues for the fourth quarter were $27,989,000, an increase of 26% from $22,248,000 for the fourth quarter of 1998. Net earnings increased 29% to $1,961,000 from $1,523,000. 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 rose 30% to $0.13 from $0.10 for the comparable quarter in 1998. Revenues for 1999 increased 34% to $101,446,000 from $75,448,000 for 1998. Net earnings were $7,051,000, up 67% from $4,215,000. Diluted earnings per share rose 45% to $0.48 for the year from $0.33 for 1998, on a 15% increase in weighted average shares and share equivalents outstanding. Earnings for 1999 exclude the impact of the cumulative effect of an accounting change of $126,000, or $0.01 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. Results for 1998 exclude the disposal and operations of two physician practices, which the Company sold by October October: see month. 1, 1998. Mr. McDonald commented, "We are very pleased with AmSurg's strong performance for the fourth quarter and throughout 1999, and we believe the Company is well positioned for future growth. We had a strong fourth quarter and full year in the signing of new partnerships for both acquisitions and 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. surgery centers. For the quarter, we completed the purchase of five surgery centers and created eight new partnerships to develop surgery centers. For the full year, we completed 10 acquisitions and 11 de novo transactions. With these acquisitions and the opening of a de novo center in the fourth quarter, we now have 63 centers in operation compared to 52 at the end of 1998. We also have 12 centers under development at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , and therefore are well positioned for growth in centers operational in the year 2000. "We also recently announced the signing of a definitive agreement with Physicians Resource Group ("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 "), through which we expect to acquire PRG's interest in at least 11 ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for surgery centers in a transaction anticipated to close in the first half of 2000. At the same time, we announced that we have entered into an agreement with PRG to manage 15 of their surgery centers including the 11 referenced above. These centers are in addition to our purchase of PRG's interests in two other centers, one of which occurred in early 2000. PRG filed for reorganization under Chapter 11 of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Code Bankruptcy Code may refer to:
"AmSurg's financial results also reflected a 4% increase in same-center revenues for the quarter compared with 14% for the fourth quarter of 1998. Although this revenue growth rate is lower than what we have experienced in recent quarters, we are pleased to have achieved this growth in comparison to one of the strongest same center growth quarters in our history. For the year, the Company achieved a same-center increase of 10%, after a 12% increase for 1998. These increases have continued to be driven by growth in the number of procedures performed at the centers and are attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the successful implementation of each center's strategic plan to expand its share of its given market. Double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. same-center revenue growth for the second consecutive year again exceeded our expectations, strengthening our confidence that annual same-center revenue increases will continue to play a substantial role in the Company's future growth." Mr. McDonald concluded, "AmSurg's operating and financial results for the fourth quarter once again demonstrated that the Company is successfully responding to one of the healthcare industry's most pressing needs: high quality care at reduced costs. We are successful because the innovative solution AmSurg provides benefits all three of the constituencies involved in every surgical procedure: physicians, patients and payers. We believe that we have the people, systems and other resources to continue achieving further profitable growth and increased shareholder value in 2000 and beyond." 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. You 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 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 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. ("HCFA HCFA abbr. Health Care Financing Administration HCFA, n.pr See Health Care Financing Administration. "), 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. As to the proposed transaction with PRG, factors include, but are not limited to the companies' respective ability to meet all the conditions of the definitive agreement and the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transactions contemplated thereunder; receipt by PRG of bankruptcy court approval of the transaction with AmSurg; AmSurg's ability to obtain financing for the PRG transaction; AmSurg's ability to enter into partnership or operating agreements with the physician owners of the surgery centers; and AmSurg's ability to effectively integrate the operations of the PRG surgery centers into its operations. 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 physician networks in partnership with surgical and other group practices. At December 31, 1999, AmSurg owned a majority interest in 63 centers and had 12 centers under development.
AMSURG CORP.
Unaudited Financial Highlights
(in thousands, except per share amounts)
Three Months Ended
December 31,
---------------------
As reported: 1999 1998
------------ --------- ---------
Revenues $ 27,989 $ 22,248
Net earnings before cumulative effect
of an accounting change 1,961 1,523
Cumulative effect of a change in the
method of which pre-opening costs
are recorded -- --
--------- ---------
Net earnings $ 1,961 $ 1,523
========= =========
Basic earnings per common share:
Net earnings before cumulative effect
of an accounting change $ 0.13 $ 0.11
Net earnings $ 0.13 $ 0.11
Diluted earnings per common share:
Net earnings before cumulative effect
of an accounting change $ 0.13 $ 0.10
Net earnings $ 0.13 $ 0.10
Weighted average number of shares
and share equivalents:
Basic 14,534 14,318
Diluted 14,848 14,676
Pro forma (1):
--------------
Revenues $ 27,989 $ 22,248
========= =========
Net earnings before cumulative effect
of an accounting change $ 1,961 $ 1,523
========= =========
Net earnings per common share before
cumulative effect of an accounting
change (diluted) $ 0.13 $ 0.10
========= =========
Year Ended
December 31,
----------------------
1999 1998
As Reported: --------- ---------
------------
Revenues $ 101,446 $ 80,322
Net earnings before cumulative effect
of an accounting change 7,051 761
Cumulative effect of a change in the
method of which pre-opening costs
are recorded (126) --
--------- ---------
Net earnings $ 6,925 $ 761
========= =========
Basic earnings per common share:
Net earnings before cumulative effect
of an accounting change $ 0.49 $ 0.06
Net earnings $ 0.48 $ 0.06
Diluted earnings per common share:
Net earnings before cumulative effect
of an accounting change $ 0.48 $ 0.06
Net earnings $ 0.47 $ 0.06
Weighted average number of shares
and share equivalents:
Basic 14,429 12,247
Diluted 14,778 12,834
Pro forma (1):
--------------
Revenues $ 101,446 $ 75,448
========= =========
Net earnings before cumulative effect
of an accounting change $ 7,051 $ 4,215
========= =========
Net earnings per common share before
cumulative effect of an accounting
change (diluted) $ 0.48 $ 0.33
========= =========
(1) The 1998 periods presented have been adjusted to reflect the
exclusion of the disposal and operations of the Company's two
physician practices which were sold by October 1, 1998.
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