Q2 2024 Surgery Partners Inc Earnings Call Transcript
Key Points
- Surgery Partners Inc (SGRY) reported net revenue of $762 million, representing a 14.2% growth over the prior year quarter.
- Adjusted EBITDA grew 18% to $118.3 million, with margins expanding by 50 basis points to 15.5%.
- The company saw a 46% increase in total joint replacements in their ASCs in the first half of 2024 compared to the same period in 2023.
- Over 200 new physicians started utilizing their facilities in the second quarter, with nearly half specializing in high acuity areas such as orthopedics, spine, and cardiology.
- Surgery Partners Inc (SGRY) raised its full-year net revenue and adjusted EBITDA outlook to greater than $3.075 billion and $508 million, respectively.
- Inflationary pressures related to labor and supply costs continue to be a concern, although they are abating.
- The company's ratio of total net debt-to-EBITDA increased to 3.8 times due to acquisitions completed in the second quarter.
- Professional fees increased by 10% per case, impacting margins.
- The company has a significant amount of outstanding corporate debt, totaling $2.2 billion, with no maturities until 2030.
- Free cash flow generation for the first half of the year was $22 million, requiring significant acceleration in the second half to meet annual targets.
Good day, everyone. And welcome to today's program, Surgery Partners, Incorporated second-quarter 2024 earnings call. (Operator Instructions) Please note, this call may be recorded. (Operator Instructions)
It is now my pleasure to turn the conference over to CFO, Dave Doherty.
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 file 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
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