Healthcare services company Surgery Partners Inc. (SGRY:NASDAQ), which operates and provides services to ambulatory surgery centers, surgical hospitals and a broad range of non-emergency surgical facilities, today announced financial results for the third quarter of 2021 ended September 30, 2021.
The company's Executive Chairman Wayne DeVeydt, commented, "Our business continued to perform exceptionally well during the third quarter of 2021 despite the resurgence of COVID-19 in many of the markets we serve. Throughout the pandemic, we have been able to demonstrate the value of our high quality, short-stay surgical facilities to all constituents of the healthcare system, including patients, physicians and payors."
Surgery Partners CEO Eric Evans, remarked, "We saw surgical case volume returning to pre-pandemic levels in the third quarter of 2021, with same-facility revenue growth of 8.3% driven by 6.2% volume growth…As higher acuity procedures continue to transition out of traditional acute care settings, we are well-positioned to capture our fair share of this growing opportunity. Year to date, we experienced a 108% increase in total joint procedures performed in our facilities as compared to the prior year period."
The firm's CFO Tom Cowhey, added, "To date, we have deployed over $130 million on acquisition activity, including the purchase of three ASCs in early August at very attractive multiples and a buy-up at one of our existing surgical hospitals that closed this week…With approximately $225 million of potential single-site acquisitions under LOI and many deals in the due diligence phase, we are confident that we will exceed our capital deployment goals for 2021."
The company reported that revenues in Q3/21 increased by 12.7% to $559.2 million, compared to $496.1 million in Q3/20.
The firm added that during the latest quarter, days adjusted same-facility revenues rose by 8.3% versus the same period in the prior year and that during this same time, the firm saw a 6.2% increase in the number of same-facility cases with a corresponding 2.0% increase in revenue per case.
The company reported that for Q3/21 it posted a net loss attributable to common stockholders of $22.9 million, compared to a net loss of $71.6 million in Q3/20. The firm indicated additionally that during Q3/21 adjusted EBITDA was $76.4 million, versus $61.1 million in Q3/20.
Surgery Partners reported that for the first nine months of FY/21, revenues increased by 23.1% to $1,614.9 million, compared to the same period last year. The firm noted that year-to-date, adjusted same-facility revenues increased by 21.0%, compared to the first nine months of FY/20.
The company offered some forward guidance and said that it expects FY/21 revenues will grow by 19-21% versus FY/20 revenues. The firm added that it projects that FY/21 adjusted EBITDA will be between $325 million and $330 million.
Surgery Partners advised that as of September 30, 2021, it had cash and cash equivalents of $330.4 million on its balance and another $163.0 million available on its credit line if needed.
The company advised that on April 1, 2021, it made a final payment in the amount of $30.7 million finalizing a legal case with U.S. Dept. of Justice regarding the April 2020 settlement involving a Florida toxicology lab and pain management medical practice. The firm noted that in Q3/20 it ceased all business operations at the lab.
Surgery Partners is healthcare services company based in Brentwood, Tenn., that provides high-quality, cost-effective surgical facility services, ancillary facility services and optical services. The company claims that "it is one of the largest and fastest growing surgical services businesses in the country, with more than 180 locations in 31 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities." The firm's network, which includes more than 4,000 affiliated physicians and over 7,000 employees, yearly serves about 600,000 patients.
Surgery Partners started the day with a market cap of around $3.4 billion with approximately 82.48 million shares outstanding and a short interest of about 1.9%. SGRY shares opened 15% higher today at $47.37 (+$6.32, +15.40%) over yesterday's $41.05 closing price. The stock has traded today between $45.425 and $48.88 per share and is currently trading at $48.29 (+$7.24, +17.64%).
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