AmSurg Corp. Reports Pro Forma Net Earnings Increase 90% On Pro Forma Revenue Growth of 57%; 33% Growth in Pro Forma Earnings Per Share, to $0.08, On 49% Additional Shares.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. 21, 1998--Ken P. McDonald, President of AmSurg Corp., (Nasdaq/NM:AMSGA & B) today announced financial results for its third quarter and nine months ended September September: see month. 30, 1998. 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 for the third quarter increased 57% to $19,491,000 from $12,421,000 for the third quarter of 1997. Pro forma net earnings rose 90% to $1,167,000 from $615,000. Pro forma 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 increased 33% to $0.08 for the latest quarter from $0.06 for the third quarter last year, on a 49% increase in weighted average shares outstanding primarily as a result of the June June: see month. 1998 common stock offering and the conversion of the Company's 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. For the first nine months of 1998, pro forma revenues increased 55% to $53,200,000 from $34,298,000 for the first nine months of 1997. Pro forma net earnings were $2,692,000, up 64% from $1,640,000. Pro forma diluted earnings per share increased 47% to $0.22 for the latest nine months from $0.15 from the comparable prior-year period, on a 25% increase in weighted average shares outstanding. For the 1998 periods, pro forma results exclude the impact of a previously announced second quarter charge of $3,564,000, net of tax benefit, related to the disposal of the Company's two physician practices. For the 1997 periods, pro forma results exclude a first-quarter impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss of a partnership interest of $2,321,000; a third-quarter net gain of $727,000, net of income taxes, related to the final sale of the partnership interest and the sale of a surgery center building and equipment; and third-quarter costs of $458,000 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 reporting periods reflect the exclusion of operations of the Company's two physician practices, the final one of which was sold on October October: see month. 1, 1998. Mr. McDonald said, "AmSurg continued to produce significant profitable growth for the third quarter, consistent with the Company's results for the first half of the year. We attribute the growth in the Company's revenues primarily to the 34% expansion in centers in operation to 47 at the end of the quarter from 35 at the same time in 1997. In addition, we generated a 12% increase in same-center revenues, substantially all of which was driven by the growth in the number of procedures performed within those centers. "We are pleased with the recently announced delay 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. ") of the proposed effective date of its proposed update of rate setting methodology, payment rates, payment policies and the list of covered medical procedures for ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery . Under the new schedule, the comment period has been reopened until November 9, 1998, and implementation will be no earlier than January 2000. The new schedule should provide time for our industry to work with HCFA on the collection of the data and the determination of the methodologies to be used to calculate more equitable equitable adj. 1) just, based on fairness and not legal technicalities. 2) refers to positive remedies (orders to do something, not money damages) employed by the courts to solve disputes or give relief. (See: equity) EQUITABLE. and reasonable rates in the future." Mr. McDonald concluded, "The operating momentum generated in the third quarter and throughout 1998 has continued thus far in the fourth quarter. We believe we have a good pipeline of new centers in various stages of development or pre-development planning, as well as additional acquisition opportunities. We also have the strong balance sheet and 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. to support the further implementation of our growth strategies. As a result, we are confident of our ability to enhance our dominant position in the growing physician practice-based ambulatory surgery center industry." 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. made 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. These forward-looking statements involve risks and uncertainties and are based upon current expectations. 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. 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 September 30, 1998, AmSurg owned a majority interest in 47 centers and had 5 centers under development. -0-
AMSURG CORP.
Unaudited Financial Highlights
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
As reported: 1998 1997 1998 1997
Revenues $20,126 $14,567 $58,074 $41,048
Net earnings (loss) 1,188 935 (762) (283)
Net earnings (loss) available to
common shareholders 1,188 862 (762) (493)
Earnings (loss) per common share:
Basic $ 0.08 $ 0.09 $ (0.07) $ (0.05)
Diluted $ 0.08 $ 0.09 $ (0.07) $ (0.05)
Weighted shares and share
equivalents outstanding:
Basic 14,302 9,502 11,550 9,437
Diluted 14,659 9,838 11,550 9,437
Pro forma (1):
Revenues $19,491 $12,421 $53,200 $34,298
Net earnings $ 1,167 $ 615(2) $ 2,692(3) $ 1,640(2)
Net earnings available to
common shareholders 1,167 542(2) 2,692(3) 1,430(2)
Earnings per common share
Basic $ 0.08 $ 0.06(2) $ 0.23(3) $ 0.15(2)
Diluted $ 0.08 $ 0.06(2) $ 0.22(3) $ 0.15(2)
Weighted shares and share
equivalents outstanding:
Basic 14,302 9,502 11,550 9,437
Diluted 14,659 9,838 12,213 9,755
(1) Pro forma amounts for all reporting periods reflect the
exclusion of operations of the Company's two physician
practices, the final one of which was sold on October 1, 1998.
(2) For the 1997 periods, pro forma results exclude a
first-quarter impairment loss of a partnership interest of
$2,321,000; a third-quarter 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 third quarter costs of $458,000 related to the
distribution of AmSurg common stock previously owned by
American Healthcorp, Inc., the Company's prior majority
shareholder.
(3) Pro forma results exclude the impact of a previously announced
second quarter charge of $3,564,000, net of tax benefit,
related to the disposal of the two physician practices.
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