On May 7, 2024, Surgery Partners Inc (SGRY, Financial), a prominent player in the healthcare services sector, announced its financial results for the first quarter ended March 31, 2024. The company reported a notable increase in revenue and adjusted EBITDA, leading to an upward revision of its full-year 2024 guidance. The detailed earnings information can be accessed through Surgery Partners Inc's 8-K filing.
Company Overview
Headquartered in Brentwood, Tennessee, Surgery Partners Inc specializes in managing a broad network of short-stay surgical facilities. The company operates over 180 locations across 33 states, encompassing ambulatory surgery centers, surgical hospitals, and multi-specialty physician practices. Surgery Partners is dedicated to delivering high-quality, cost-effective surgical and ancillary care, supporting both patients and healthcare professionals.
Financial Performance Highlights
Surgery Partners Inc's revenue for Q1 2024 reached $717.4 million, marking a 7.7% increase from $666.2 million in the same quarter the previous year. This performance notably exceeds the analyst's revenue estimate of $698.03 million. The growth was primarily driven by a 10.2% increase in same-facility revenues, reflecting an 8.8% rise in revenue per case and a 1.3% increase in same-facility cases.
Despite the revenue upswing, the company reported a net loss of $12.4 million, attributed to strategic investments and operational expenses. Adjusted EBITDA for the quarter was $97.5 million, up from $90.1 million year-over-year, with the adjusted EBITDA margin improving to 13.6%. The company's liquidity position remains strong, with $185.2 million in cash and cash equivalents and $607.3 million available under its revolving credit facility.
Strategic Developments and Market Positioning
Wayne DeVeydt, Executive Chairman of Surgery Partners, highlighted the company's robust EBITDA growth and revenue, attributing these achievements to exceptional clinical quality, operational execution, and strategic initiatives like physician recruiting and acquisitions. CEO Eric Evans emphasized the impact of recent acquisitions and the company's confidence in sustained growth, prompting an increase in the 2024 revenue and EBITDA guidance to at least $3.05 billion and $505 million, respectively.
Chief Financial Officer Dave Doherty discussed financial strategies that have bolstered the company's balance sheet, including refinancing activities and setting interest rate caps to mitigate future interest rate exposure. These moves have effectively deferred any significant debt maturities until 2030.
Operational and Financial Metrics
The detailed financial statements reveal a comprehensive view of Surgery Partners' operational success and challenges. Total operating expenses for Q1 2024 were $641.4 million, up from $619.8 million in the prior year, reflecting increased investments in staff and facilities to support expanded operations. The company's strategic focus on enhancing facility performance and optimizing case mix continues to drive its market leadership in the surgical services sector.
Conclusion
Surgery Partners Inc's first-quarter results demonstrate a solid start to 2024, underscored by revenue growth and strategic expansions. With its revised upward financial guidance and strong operational strategies, the company is well-positioned to maintain its trajectory of growth and value creation in the competitive healthcare services market.
For further details on Surgery Partners Inc's financial performance and strategic initiatives, stakeholders and interested parties are encouraged to review the full earnings report and join the upcoming conference call.
Explore the complete 8-K earnings release (here) from Surgery Partners Inc for further details.
