Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Segment Revenue and Operating Income

The following tables present financial information for each reportable segment (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
Surgical Facility Services	$	478.6	$	431.1	$	1,262.8	$	1,250.9
Ancillary Services	16.7		20.0		46.9		60.3
Optical Services	0.8		0.9		2.1		3.0
Total	$	496.1	$	452.0	$	1,311.8	$	1,314.2

Adjusted EBITDA:
Surgical Facility Services	$	82.5	$	77.1	$	229.7	$	223.9
Ancillary Services	(0.6)		0.9		(3.9)		3.5
Optical Services	0.4		0.4		1.0		1.3
All other	(21.2)		(16.2)		(61.0)		(54.5)
Total	$	61.1	$	62.2	$	165.8	$	174.2

Reconciliation of Adjusted EBITDA:
(Loss) income before income taxes	$	(33.0)	$	13.3	$	(61.1)	$	27.6

Net income attributable to non-controlling interests	(27.3)		(26.6)		(75.0)		(78.1)
Depreciation and amortization	24.1		18.4		69.3		56.3
Interest expense, net	51.5		45.7		147.8		134.1
Equity-based compensation expense	3.0		2.7		9.9		7.6
Transaction, integration and acquisition costs (1)	7.5		5.3		30.2		16.8
Impairment charges	33.5		—		33.5		—
Loss (gain) on disposals and deconsolidations, net	0.7		0.6		7.1		(7.0)
Litigation settlement and other litigation costs (2)	1.1		2.8		4.9		2.8
Gain on escrow release (3)	—		—		(0.8)		—
Loss on debt extinguishment	—		—		—		11.7
Tax receivable agreement expense	—		—		—		2.4
Adjusted EBITDA	61.1		62.2		165.8		174.2
Less: Impact of grant funds (4)	5.4		—		(21.9)		—
Adjusted EBITDA excluding grant funds	$	66.5	$	62.2	$	143.9	$	174.2

(1)This amount includes transaction and integration costs of $5.4 million and $3.4 million for the three months ended September 30, 2020 and 2019, respectively. This amount further includes other acquisition costs and start-up costs related to a de novo surgical hospital of $2.1 million and $1.9 million for the three months ended September 30, 2020 and 2019, respectively.

This amount includes transaction and integration costs of $15.8 million and $11.6 million for the nine months ended September 30, 2020 and 2019, respectively. This amount further includes other acquisition costs and start-up costs related to a de novo surgical hospital of $14.4 million and $5.2 million for the nine months ended September 30, 2020 and 2019, respectively.

(2)This amount includes other litigation costs of $1.1 million and $2.8 million for the three months ended September 30, 2020 and 2019, respectively.

This amount includes litigation settlement costs of $1.2 million for the nine months ended September 30, 2020, with no comparable settlement costs in the same 2019 period. This amount further includes other litigation costs of $3.7 million and $2.8 million for the nine months ended September 30, 2020 and 2019, respectively.

(3)Included in other income in the condensed consolidated statement of operations for the nine months ended September 30, 2020, with no comparable gain in the same 2019 period.

(4)Represents the impact of grant funds recognized, net of amounts attributable to non-controlling interests.

Reconciliation of Assets from Segment to Consolidated


	September 30, 2020		December 31, 2019
Assets:
Surgical Facility Services	$	4,745.0	$	4,580.4
Ancillary Services	34.8		69.6
Optical Services	14.2		17.7
All other	518.9		351.2
Total assets	$	5,312.9	$	5,018.9

Schedule of Financial Information by Reportable Segment


	Nine Months Ended September 30,
	2020		2019
Cash purchases of property and equipment:
Surgical Facility Services	$	24.1	$	42.8
Ancillary Services	0.3		0.5

All other	3.4		6.9
Total cash purchases of property and equipment	$	27.8	$	50.2