Q1 2024 Surgery Partners Inc Earnings Call Transcript
Key Points
- Surgery Partners Inc (SGRY) reported a net revenue of approximately $717 million, a growth of 7.7% over the prior-year quarter.
- Same-facility net revenues grew by 10.2% compared to the same period last year, driven by both case and net revenue per case growth.
- Adjusted EBITDA increased to $97.5 million, up 8.2% from the previous year, with margins improving by 10 basis points to 13.6%.
- Total joint replacements surged by 54% over the first quarter of 2023, indicating strong performance in higher acuity procedures.
- Surgery Partners Inc (SGRY) successfully closed acquisitions worth approximately $200 million to $250 million in the second quarter, demonstrating robust capital deployment activities.
- The company faces ongoing challenges with inflationary pressures, particularly related to labor and supply costs, although these are beginning to abate.
- Despite robust revenue growth, the company noted approximately $36 million in revenue headwinds due to facilities divested in 2023.
- Surgery Partners Inc (SGRY) continues to navigate complexities in managed care negotiations and state-based reimbursement programs which require careful management.
- The company's reliance on high-acuity procedures, while beneficial for revenue per case, necessitates continuous investment in physician recruitment and facility upgrades.
- While the company has a robust pipeline for acquisitions, the timing and execution of these deals can be unpredictable and may affect financial performance.
Greetings. Welcome to the Surgery Partners first-quarter 2024 earnings call. (Operator Instructions) As reminder, this conference is being recorded.
I will now turn the conference over to Dave Doherty, CFO. Thank you. You may begin.
Good morning. My name is Dave Doherty, CFO of Surgery Partners. I'm joined today by Eric Evans, our CEO; and Wayne DeVeydt, our Executive Chairman.
During this call, we will make forward-looking statements. There are risk factors that could cause future results to be materially different from these statements. These risk factors are described in this morning's press release and the reports we filed with the SEC, each of which are available on our website, surgerypartners.com. The company does not undertake any duty to update these forward-looking statements.
In addition, we will reference certain financial measures that are considered non-GAAP, which we believe can be useful in evaluating our performance. The
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