XML 72 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
Segment Reporting
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

Prior to the Sheridan acquisition, the Company operated its centers as individual components of one operating and reportable segment. Upon completion of the Sheridan acquisition, the Company operates in two major lines of business - the operation of ambulatory surgery centers and providing multi-specialty outsourced physician services, which have been identified as its operating and reportable segments. Through the ambulatory services segment, the Company acquires, develops and operates ambulatory surgery centers in partnership with physicians. Through the physician services segment, the Company provides outsourced physician services in multiple specialties to hospitals, ambulatory surgery centers and other healthcare facilities, primarily in the areas of anesthesiology, children’s services, emergency medicine and radiology. The Company’s financial information by operating segment is prepared on an internal management reporting basis and includes allocations of corporate overhead to each segment. This financial information is used by the chief operating decision maker to allocate resources and assess the performance of the operating segments. The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision maker which is its Chief Executive Officer. The following table presents financial information for each reportable segment (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Net Revenue:
 
 
 
 
 
 
 
Ambulatory Services
$
308,983

 
$
276,419

 
$
903,884

 
$
814,207

Physician Services (1)
341,244

 
225,931

 
958,738

 
225,931

Total
$
650,227

 
$
502,350

 
$
1,862,622

 
$
1,040,138

 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
Ambulatory Services
$
55,353

 
$
47,853

 
$
162,965

 
$
145,475

Physician Services (1)
77,824

 
48,016

 
191,939

 
48,016

Total
$
133,177

 
$
95,869

 
$
354,904

 
$
193,491

 
 
 
 
 
 
 
 
Adjusted EBITDA:
$
133,177

 
$
95,869

 
$
354,904

 
$
193,491

Earnings from continuing operations attributable to noncontrolling interests
55,618

 
47,578

 
160,407

 
139,150

Interest expense, net
(30,242
)
 
(39,054
)
 
(90,671
)
 
(52,906
)
Depreciation and amortization
(24,106
)
 
(20,838
)
 
(70,536
)
 
(37,533
)
Share-based compensation
(3,727
)
 
(2,424
)
 
(11,319
)
 
(7,388
)
Net change in fair value of contingent consideration
(1,928
)
 
—

 
(8,338
)
 
—

Transaction costs
(2,107
)
 
(25,102
)
 
(5,560
)
 
(28,681
)
Debt extinguishment costs
—

 
(16,887
)
 
—

 
(16,887
)
Gain on deconsolidation
9,112

 
—

 
5,854

 
3,411

Earnings from continuing operations before income taxes
$
135,797

 
$
39,142

 
$
334,741

 
$
192,657

 
 
 
 
 
 
 
 
Acquisition and Capital Expenditures:
 
 
 
 
 
 
 
Ambulatory Services (2)
$
25,872

 
$
5,759

 
$
144,482

 
$
45,207

Physician Services (1)
25,927

 
2,339

 
136,014

 
2,339

Total
$
51,799

 
$
8,098

 
$
280,496

 
$
47,546


                           
(1) Amounts reported for the 2014 periods represent the results of operations from July 16, 2014, the acquisition date of Sheridan, through September 30, 2014.
(2) Excludes the purchase price to acquire Sheridan.