Amsurg Corp. Reports First-Quarter Earnings of $0.26 Per Diluted Share On 29% Growth in Revenues; Same-Center Revenues Increase 12%.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)--April 23, 2002 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 record financial results for its first quarter ended March 31, 2002. Revenues were $58,290,000 for the quarter, up 29% from $45,139,000 for the first quarter of 2001. Net earnings doubled to $5,372,000 from $2,685,000. 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 increased 53% to $0.26 for the latest quarter from $0.17 for the first quarter of 2001, on a 32% increase in the weighted average number of shares and share equivalents outstanding primarily as a result of the Company's common stock offering in April 2001. Results for the first quarter of 2002 include a positive impact of $0.04 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 the adoption of FAS 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." "AmSurg's performance for the first quarter of 2002 provides a good foundation from which to work toward our operating and financial goals for the full year," said Mr. McDonald. "We continue to be pleased with the strength of same-center revenues, which increased 12% for the quarter, above our target of 7% to 9% for the full year. This substantial growth, coming after four consecutive years of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. increases in same-center revenues, once again confirms the 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:
"AmSurg's revenues for the first quarter also benefitted from a 13% increase in the average number of centers in operation compared with the same quarter in 2001, and the Company completed the quarter with 95 centers in operation compared with 87 at the end of the first quarter of 2001. During the latest quarter, we also entered into a partnership agreement for the development of a 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. center that requires a certificate of need. We continue to expect to open or acquire 12 to 15 new centers for 2002; and at the quarter's end, we had five centers under development, four centers under letter of intent and two centers awaiting certificate of need certification. "The Company's growth for the first quarter further strengthened its financial position. We generated 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 of $9.9 million or 1.8 times net earnings for the quarter. As a result, we completely paid off our borrowings on our $100 million line of credit, reducing long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and other 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. obligations to $4.6 million at the end of the quarter from $12.7 million at the end of 2001. We also had $11.1 million of cash and cash equivalents at the end of the first quarter and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $192.5 million." Based on AmSurg's first-quarter performance and its 2002 targets stated above for both same-center development and the expansion of its base of centers in operation, the Company is reaffirming its guidance for full-year 2002 to the following:
Projected Year Projected
Ending % Increase
December 31, 2002 from 2001
----------------- -------------
Revenues (millions) $237 to $243 17% to 20%
Earnings per diluted share,
excluding impact of FAS 142(1) $0.95 to $0.97 22% to 25%
Earnings per diluted share(1) $1.12 to $1.14 44% to 46%
(1)The Company expects the adoption of FAS 142, "Goodwill and Other
Intangible Assets," effective January 1, 2002, to have a positive
impact on earnings for 2002 of $0.17 per diluted share.
The information contained in the preceding table is forward-looking 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 by this forward-looking information. Mr. McDonald added, "We remain confident that AmSurg has the market position and resources to achieve its goal of 22% to 25% growth in earnings per diluted share through 2004. We are the acknowledged leader in a growing and highly fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. segment of the ambulatory surgery center ambulatory surgery center A free-standing center that performs various types of surgery industry. With a business model proven to produce high quality care and high patient satisfaction in a low-cost venue, we believe the Company is well positioned to drive the further development of the single specialty surgery center market." 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 www.streetevents.com or www.companyboardroom.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 May 23, 2002. 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; 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 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 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 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; risks associated with the Company's status as a general partner of limited partnerships; our ability to maintain our 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; and our ability to obtain the necessary financing to fund the purchase of our 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 March 31, 2002, AmSurg owned a majority interest in 95 centers and had five centers under development.
AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands except per share amounts)
For the Three Months
Ended March 31,
----------------------------
Statement of Earnings Data: 2002 2001
--------------------------- ------------- -------------
Revenues $ 58,290 $ 45,139
Operating expenses:
Salaries and benefits 15,294 12,056
Supply cost 7,155 5,585
Other operating expenses 12,743 9,505
Depreciation and amortization 2,347 3,252
------------- -------------
Total operating expenses 37,539 30,398
------------- -------------
Operating income 20,751 14,741
Minority interest 11,447 8,545
Interest expense, net 350 1,721
------------- -------------
Earnings before income
taxes 8,954 4,475
Income tax expense 3,582 1,790
------------- -------------
Net earnings $ 5,372 $ 2,685
============= =============
Earnings per common share:
Basic $ 0.27 $ 0.18
Diluted $ 0.26 $ 0.17
Weighted average number of shares and share equivalents (000's):
Basic 20,140 14,750
Diluted 20,503 15,539
Operating Data:
Centers in operation at end
of period 95 87
Centers under development/not
opened at end of period 5 4
Development centers awaiting CON
approval at end of period 2 1
Centers under letter of intent 4 4
Average number of centers in
operation 95 84
Average revenue per center $ 614 $ 538
Same center revenues increase 12% 12%
Procedures performed during the
period 108,552 89,036
EBITDA after minority interest $ 11,651 $ 9,448
Operating cash flow per share $ 0.48 $ 0.36
March 31, December 31,
Balance Sheet Data: 2002 2001
------------------- ------------- -------------
Cash and cash equivalents $ 11,121 $ 11,074
Accounts receivable, net 28,950 28,069
Working capital 35,067 34,909
Total assets 241,317 241,383
Long-term debt and other long-term
obligations 4,605 12,685
Minority interest 25,281 25,047
Shareholders' equity 192,515 185,569
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion