EX-99 2 g88742exv99.txt EX-99 PRESS RELEASE EXHIBIT 99 PRESS RELEASE AMSURG REPORTS 23% GROWTH IN NET EARNINGS PER DILUTED SHARE FROM CONTINUING OPERATIONS TO $0.27 --------------- FIRST-QUARTER SAME-CENTER REVENUES INCREASE 7% NASHVILLE, Tenn. (April 27, 2004) - Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq: AMSG), today announced financial results for the first quarter of 2004. Revenues were $81,736,000 for the quarter, which ended March 31, 2004, up 18% from $69,551,000 for the first quarter of 2003. Net earnings from continuing operations increased 21% to $8,277,000 for the latest quarter from $6,817,000 for the comparable quarter in 2003, and net earnings, which include the operations and the previously reported first-quarter gain on disposal of three surgery centers, rose 37% to $9,620,000 from $7,003,000. Earnings per diluted share from continuing operations increased 23% to $0.27 for the first quarter of 2004 from $0.22 for the first quarter last year, and earnings per diluted share rose 41% to $0.31 from $0.22. Prior-period financial data in this release has been restated to conform to the current-year presentation, which now reflects operating results from continuing and discontinued operations, as well as a 3-for-2 stock split effected in March 2004. Mr. McDonald commented, "AmSurg produced substantial profitable growth for the first quarter of 2004, primarily due to a continued increase in the number of procedures performed for the quarter. Consistent with past results, we attribute our procedure growth for the quarter both to the expansion of the number of our centers in operation, which increased to 116 at the end of the first quarter from 107 at the same time in 2003, and to increased market share for our existing centers, as reflected by 7% growth in same-center revenues compared with the first quarter last year. For 25 consecutive quarters, the Company has now produced record revenues and net earnings, as well as increased same-center revenues. "During the first quarter, AmSurg opened one de novo center and acquired two additional centers. In addition, we completed the first quarter with 11 centers under development, six of which are expected to open in 2004 and five of which are scheduled to open in the first quarter of 2005. We also had six centers under letter of intent at the end of the quarter, including one de novo center and five potential center acquisitions. We have already completed one of the five acquisitions, a large endoscopy center acquired in early April, and we are awaiting Certificate of Need approval to purchase the other four centers in a single transaction. We continue to expect the determination of the Certificate of Need to occur in the third quarter. -MORE- AMSG Reports First-Quarter Results Page 2 April 27, 2004 Based on the Company's first-quarter results and its outlook for the remainder of the year, AmSurg today reaffirmed guidance for 2004 revenues in a range of $350 million to $370 million and earnings per diluted share from continuing operations in a range of $1.16 to $1.19. This guidance does not include the gain of $0.04 per diluted share related to the disposition of the three centers in the first quarter, discussed above. This guidance also assumes the net addition of 12 to 15 de novo or acquired centers during 2004, including the disposition of three existing centers during the first quarter, as well as growth in same-center revenues for 2004 of 4% to 7%. The information contained in the preceding paragraph 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 concluded, "AmSurg's first-quarter results provide further support for our continuing confidence in the Company's strong long-term growth prospects. We operate a proven business model that has produced a long-term record of consistent and significant profitable growth. We are the undisputed market leader in the single specialty segment of the growing ambulatory surgery center industry. Our value proposition of high quality, low cost healthcare that produces high patient and physician satisfaction continues to resonate in our industry. We have ample opportunity to grow through the opening of de novo or acquired centers, and we have the financial resources to implement our current growth strategies. In summary, we believe AmSurg is well positioned to produce further profitable growth and increased shareholder value. AmSurg Corp. will hold a conference call to discuss this release today at 5:00 p.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com and clicking Investor Relations or by going to www.streetevents.com at least 15 minutes early to register, download, 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 27, 2004. This press release contains forward-looking statements. These statements, which have been included in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act 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 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 -MORE- AMSG Reports First-Quarter Results Page 3 April 27, 2004 start-up losses of its development centers; the ability of its physician partners to recruit additional physicians to their practices; its ability to maintain favorable relations with its physician partners; changes in the medical staff at its centers; changes in the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures for ambulatory surgery centers by the Centers for Medicare & Medicaid Services; the risk of legislative or regulatory changes that would establish uniform rates for outpatient surgical services, regardless of setting; risks associated with the Company's status as a general partner of limited partnerships; the Company's ability to maintain its technological capabilities in compliance with regulatory requirements; risks associated with the valuation and tax deductibility of goodwill; the risk of legislative or regulatory changes that would prohibit physician ownership in ambulatory surgery centers; and the Company's ability to obtain the necessary financing to fund the purchase of its 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, 2004, AmSurg owned a majority interest in 116 centers and had 11 centers under development. Contact: Claire M. Gulmi Senior Vice President and Chief Financial Officer (615) 665-1283 -MORE- AMSG Reports First-Quarter Results Page 4 April 27, 2004 AMSURG CORP. UNAUDITED SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS ENDED MARCH 31, ------------------------- 2004 2003 --------- --------- STATEMENT OF EARNINGS DATA: Revenues $ 81,736 $ 69,551 Operating expenses: Salaries and benefits 21,888 18,249 Supply cost 9,258 8,091 Other operating expenses 15,831 14,686 Depreciation and amortization 3,233 2,655 --------- --------- Total operating expenses 50,210 43,681 --------- --------- Operating income 31,526 25,870 Minority interest 17,304 14,214 Interest expense, net 428 297 --------- --------- Earnings from continuing operations before income taxes 13,794 11,359 Income tax expense 5,517 4,542 --------- --------- Net earnings from continuing operations 8,277 6,817 Discontinued operations: Earnings from operations of discontinued interests in surgery centers, net of income taxes 102 186 Gain on disposal of discontinued interests in surgery centers, net of income taxes 1,241 -- --------- --------- Earnings from discontinued operations 1,343 186 --------- --------- Net earnings $ 9,620 $ 7,003 ========= ========= Basic earnings per common share: Net earnings from continuing operations $ 0.27 $ 0.22 Net earnings $ 0.32 $ 0.23 Diluted earnings per common share: Net earnings from continuing operations $ 0.27 $ 0.22 Net earnings $ 0.31 $ 0.22 Weighted average number of shares and share equivalents (000's): Basic 30,158 30,832 Diluted 30,832 31,158 OPERATING DATA: Centers in operation at end of period 116 107 Centers under development/not opened at end of period 11 11 Development centers awaiting CON approval at end of period -- -- Centers under letter of intent 6 4 Average number of centers in operation 116 106 Average revenue per center $ 706 $ 668 Same center revenues increase 7% 9% Procedures performed during the period 150,350 129,884 Cash flows provided by operating activities $ 15,090 $ 10,591 Cash flows used by investing activities $ (12,435) $ (12,418) Cash flows provided by (used in) financing activities $ (1,535) $ 1,696 Reconciliation of net earnings to EBITDA (1): Net earnings from continuing operations $ 8,277 $ 6,817 Add: income tax expense 5,517 4,542 Add: interest expense, net 428 297 Add: depreciation and amortization 3,233 2,655 --------- --------- EBITDA $ 17,455 $ 14,311 ========= =========
-MORE- AMSG Reports First-Quarter Results Page 5 April 27, 2004 AMSURG CORP. UNAUDITED SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (IN THOUSANDS)
MARCH 31, DECEMBER 31, 2004 2003 --------- ----------- BALANCE SHEET DATA: Cash and cash equivalents $ 15,378 $ 14,258 Accounts receivable, net 38,867 36,172 Working capital 47,432 46,009 Total assets 370,590 356,189 Long-term debt 50,543 53,137 Minority interest 39,649 36,796 Shareholders' equity 244,012 232,898
------------------------------ Presented below is certain statement of earnings and operating data for 2003, which has been restated in order to conform to the current year presentation, which now reflects operating results from continuing and discontinued operations, as well as a 3-for-2 stock split effected in March 2004:
FOR THE FOR THE THREE MONTHS ENDED YEAR ----------------------------------------------- ENDED MARCH 31, JUNE 30, SEPT. 30, DEC. 31, DEC. 31, 2003 2003 2003 2003 2003 -------- -------- -------- -------- -------- STATEMENT OF EARNINGS DATA: Revenues $ 69,551 $ 72,784 $ 74,049 $ 78,867 $295,251 Operating expenses: Salaries and benefits 18,249 19,149 20,179 20,122 77,699 Supply cost 8,091 8,428 8,346 9,542 34,407 Other operating expenses 14,686 14,942 14,810 16,236 60,674 Depreciation and amortization 2,655 2,972 2,800 2,915 11,342 -------- -------- -------- -------- -------- Total operating expenses 43,681 45,491 46,135 48,815 184,122 -------- -------- -------- -------- -------- Operating income 25,870 27,293 27,914 30,052 111,129 Minority interest 14,214 14,934 15,254 16,280 60,682 Interest expense, net 297 432 405 400 1,534 -------- -------- -------- -------- -------- Earnings from continuing operations before income taxes 11,359 11,927 12,255 13,372 48,913 Income tax expense 4,542 4,771 4,902 5,349 19,564 -------- -------- -------- -------- -------- Net earnings from continuing operations 6,817 7,156 7,353 8,023 29,349 Discontinued operations: Earnings from operations of discontinued interests in surgery centers, net of income taxes 186 181 178 232 777 -------- -------- -------- -------- -------- Net earnings $ 7,003 $ 7,337 $ 7,531 $ 8,255 $ 30,126 ======== ======== ======== ======== ======== Basic earnings per common share: Net earnings from continuing operations $ 0.22 $ 0.24 $ 0.25 $ 0.27 $ 0.97 Net earnings $ 0.23 $ 0.25 $ 0.25 $ 0.27 $ 1.00 Diluted earnings per common share: Net earnings from continuing operations $ 0.22 $ 0.24 $ 0.24 $ 0.26 $ 0.96 Net earnings $ 0.22 $ 0.24 $ 0.25 $ 0.27 $ 0.98 Weighted average number of shares and share equivalents (000's): Basic 30,832 29,772 29,877 30,075 30,139 Diluted 31,158 30,246 30,451 30,809 30,666
-MORE- AMSG Reports First-Quarter Results Page 6 April 27, 2004 AMSURG CORP. UNAUDITED SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (IN THOUSANDS)
FOR THE FOR THE THREE MONTHS ENDED YEAR -------------------------------------------- ENDED MARCH 31, JUNE 30, SEPT. 30, DEC. 31, DEC. 31, 2003 2003 2003 2003 2003 -------- ------- --------- -------- ------- OPERATING DATA: Reconciliation of net earnings to EBITDA (1): Net earnings from continuing operations $ 6,817 $ 7,156 $ 7,353 $ 8,023 $29,349 Add: income tax expense 4,542 4,771 4,902 5,349 19,564 Add: interest expense, net 297 432 405 400 1,534 Add: depreciation and amortization 2,655 2,972 2,800 2,915 11,342 ------- ------- ------- ------- ------- EBITDA $14,311 $15,331 $15,460 $16,687 $61,789 ======= ======= ======= ======= =======
(1) EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity. EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. Net earnings from continuing operations is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA, as defined.