AmSurg Corp. Reports Fourth Quarter Pro Forma Net Income Increases 108%; Pro Forma Earnings Per Share Increases 43% to $0.10.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. 17, 1999--Ken P. McDonald, President of AmSurg Corp., (Nasdaq/NM:AMSGA) (Nasdaq/NM:AMSGB) today announced financial results for its fourth quarter and year ended December December: see month. 31, 1998. For the fourth quarter, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues increased 56% to $22,248,000 from $14,302,000 for the fourth quarter of 1997. Pro forma net earnings rose 108% to $1,523,000 from $732,000. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share for the quarter increased 43% to $0.10 from $0.07 for the comparable prior-year period, on 48% additional weighted average shares outstanding primarily as a result of the June June: see month. 1998 common stock offering and the conversion of outstanding preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. into common stock. Pro forma revenues for 1998 increased 55% to $75,448,000 from $48,600,000 for 1997. Pro forma net income increased 78% to $4,215,000 from $2,372,000,and pro forma earnings per share rose to $0.33 for 1998, up 57% from $0.21 for 1997. Weighted average shares outstanding increased 31% for the latest year. Actual earnings per share for 1998 were $0.06. For 1998, pro forma results exclude a charge of $3,564,000, net of tax benefit, related to the disposal of the Company's two physician practices. For 1997, pro forma results exclude a net loss on sale of assets, net of income taxes, of $1,594,000 and third-quarter and fourth-quarter costs of $458,000 and $384,000, respectively, related to the distribution of AmSurg common stock previously owned by American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Healthcorp, Inc., the Company's prior majority shareholder. Pro forma amounts for all periods reported exclude the operations of the Company's two physician practices, the final one of which was sold on October 1, 1998. "We are very pleased to report AmSurg's record results for both the fourth quarter and all of 1998," said Mr. McDonald. "Our financial and operating performance is indicative of both the continued opportunities for growth in the physician practice-based ambulatory surgery center ambulatory surgery center A free-standing center that performs various types of surgery market, as well as AmSurg's ability to successfully act on those opportunities. With 52 centers in operation at year end, we believe the Company's growth during 1998 has strengthened its dominant industry position. "The Company's growth for the fourth quarter reflects its 33% expansion of the base of centers in operation at the end of the quarter from the end of 1997. We also generated same-center revenue growth of 14%, virtually all from growth in procedures at the individual centers. This growth is a direct result of our operating teams' focus on increasing market share in each of our surgery centers. "We are proud of AmSurg's many other accomplishments during 1998, including: -- the sale of 3,700,000 shares of the Company's common stock in its June offering, which raised approximately $28 million, -- the Company's successful pursuit of initial or renewed three-year accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. for 22 centers from the Joint Commission On Accreditation Of Healthcare Organizations; -- the addition of 14 new surgery centers in 11 new markets through both development and acquisition; -- the expansion of our bank facility to $50 million from $35 million; and -- the Company's 12% same-center revenue growth for all of 1998. "Looking forward, we intend to continue the Company's expansion efforts and anticipate adding 15 new centers during 1999 through a combination of development and acquisition. We acquired or signed development agreements for five centers in the fourth quarter of 1998, and the pipeline of potential transactions remains attractive. Combined with our goal for a same-center revenue increase of 7% to 9% for 1999, we believe this expansion will produce further growth for the current year." 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 and new specialty physician networks; 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 in order 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; 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; and risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's technological systems, including becoming Year 2000 compliant a. 1. (Computers) having dates fully and properly represented, and not susceptible to failure due to the year 2000 bug. . AmSurg disclaims any intent or obligation to update these forward-looking statements. AmSurg Corp. develops, acquires and operates physician practice-based ambulatory surgery centers and specialty physician networks in partnership with surgical and other group practices. At December 31, 1998, AmSurg owned a majority interest in 52 centers and had 3 centers under development. -0-
AMSURG CORP.
Unaudited Financial Highlights
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
As reported: 1998 1997 1998 1997
------------ -------- -------- -------- --------
Revenues $ 22,248 $ 16,367 $ 80,322 $ 57,414
Net earnings 1,523 359 761 76
Net earnings (loss)
available to common
shareholders 1,523 283 761 (210)
Earnings (loss) per
common share:
Basic $ 0.11 $ 0.03 $ 0.06 $ (0.02)
Diluted $ 0.10 $ 0.03 $ 0.06 $ (0.02)
Weighted shares and share
equivalents outstanding:
Basic 14,318 9,503 12,247 9,453
Diluted 14,676 9,891 12,834 9,453
Pro forma(1):
-------------
Revenues $ 22,248 $ 14,302 $ 75,448 $ 48,600
Net earnings $ 1,523 $ 732(2) $ 4,215(3) $ 2,372(4)
Net earnings available
to common shareholders 1,523 656(2) 4,215(3) 2,086(4)
Diluted earnings per
common share $ 0.10 $ 0.07(2) $ 0.33(3) $ 0.21(4)
(1) For all periods, excludes the operations of the Company's two
physician practices, the final one of which was sold on October 1,
1998.
(2) Excludes costs of $384,000 related to the distribution of AmSurg
common stock previously owned by American Healthcorp, Inc., the
Company's prior majority shareholder.
(3) Excludes a nonrecurring charge of $3,564,000, net of tax benefit,
related to the disposal of the two physician practices.
(4) Excludes an impairment loss of a partnership interest of
$2,321,000; a net gain of $727,000, net of income tax, related to
the final sale of the partnership interest and the sale of a
surgery center building and equipment; and costs of $842,000
related to the distribution of AmSurg common stock previously
owned by American Healthcorp, Inc., the Company's prior majority
shareholder.
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