Reports Diluted EPS of $0.80 and Adjusted
Diluted EPS of $1.10
AMSURG Corp. (NASDAQ: AMSG) today announced financial results
for the second quarter and six months ended June 30, 2016. The
Company’s results for the quarter, compared with the second quarter
of 2015, included:
- Net revenues of $758.5 million, up 18%
from $642.0 million for the second quarter of 2015;
- An increase of 39% in net earnings
attributable to AMSURG common shareholders to $43.8 million;
- A 23% increase in net earnings
attributable to AMSURG common shareholders to $0.80 per diluted
share;
- An increase of 27% in adjusted net
earnings to $63.1 million;
- 13% growth in adjusted net earnings to
$1.10 per diluted share, on a 12% increase in diluted shares
outstanding, if converted, primarily due the Company’s December
2015 public offering of common stock; and
- Adjusted EBITDA of $149.2 million, up
17%.
See page 6 for a reconciliation of all GAAP and non-GAAP
financial results.
“We are pleased with AMSURG’s operating and financial
performance for the second quarter, highlighted by our significant
profitable growth,” commented Christopher A. Holden, President and
Chief Executive Officer of AMSURG. “Our net revenues again
reflected meaningful organic growth, with a 4.2% increase in same
center revenues for our Ambulatory Services division and a 5.5%
increase in same contract revenue for our Physician Services
division. We also continued to expand and strengthen our market
presence for both divisions and positioned AMSURG for future growth
through the completion of nine acquisitions during the quarter.
Finally, we executed a definitive agreement for a transformative
merger with Envision Healthcare. On completion, this merger will
create a national provider of a broad continuum of clinical network
solutions, including multiple outsourced physician specialties,
such as emergency, hospitalist, anesthesia, radiology and
children’s services, as well as solutions for ambulatory surgery,
post-acute care and medical transportation. We continue to expect
to complete the merger by the end of 2016, subject to regulatory
approvals, approval by Envision and AMSURG shareholders and the
satisfaction or waiver of other customary closing conditions.
“During the second quarter, Ambulatory Services acquired four
ambulatory surgery centers. Physician Services completed five
acquisitions during the second quarter, three of which were closed
on June 30, 2016. The Physician Services transactions were
comprised of a radiology practice and four anesthesia practices,
including a multi-state anesthesia practice focused on serving
ASCs. The transactions expanded Physician Services’ presence in
existing markets and established the division’s initial presence in
Illinois. We continue to evaluate additional potential acquisitions
in our strong pipeline, including opportunities for Ambulatory
Services and across all our Physician Services specialties. In the
first half of 2016, we deployed nearly $300 million of capital for
acquisitions, which we expect to increase to approximately $400
million for the full year. Subsequent to the end of the second
quarter, Ambulatory Services has completed the acquisition of three
additional ASCs.
“During the second quarter, the timing of our acquisitions was
later than anticipated, which affected the quarter’s revenue and
will affect our full-year revenue performance. In addition, our
Physician Services new contract signings are on target to meet or
exceed our expectations for the year, however, the start dates for
these new contracts are later in the year than assumed when
preparing our revenue guidance. While the timing of the new
contract starts will affect revenue growth for 2016, it will have
little impact on net earnings.”
Ambulatory Services
Net revenues for the second quarter of 2016 were $319.7 million,
a 2.8% increase from $311.0 million for the second quarter of 2015.
The growth in net revenue was impacted by the deconsolidation of
nine ASCs during the 12 months ended June 30, 2016, which
contributed incremental revenues of $18.4 million for the second
quarter of 2015. The 4.2% increase in same center revenues for the
second quarter of 2016 compared with the second quarter of 2015 was
comprised of a 3.3% increase in procedures and a 0.9% increase in
net revenue per procedure. Adjusted EBITDA was $61.7 million for
the second quarter, up 2.4% from $60.3 million for the second
quarter last year.
Ambulatory Services operated 258 ASCs and one surgical hospital
at June 30, 2016. In addition to acquiring four ASCs during the
quarter, Ambulatory Services disposed of two ASCs and
deconsolidated one ASC, which was contributed to a new joint
venture with a hospital. The division had four ASCs under letter of
intent at the end of the second quarter of 2016, three of which
have now been purchased, and one ASC was under development, which
is expected to open in the third quarter of 2016.
Physician Services
Net revenues for Physician Services increased 33% to $438.8
million from $331.0 million for the second quarter of 2015.
Adjusted EBITDA was $87.5 million for the quarter, up 29% from
$67.7 million for the second quarter of 2015, and adjusted EBITDA
margin was 19.9% compared with 20.4%.
The comparable-quarter growth in Physician Services revenues was
comprised of an increase of 4.5% in same-contract revenues, 0.6% in
net new contract revenues and 27.5% in acquisition revenues.
Same-contract growth in net revenues totaled 5.5% for the second
quarter of 2016, which included a 5.1% increase in patient
encounters per day and a 0.4% increase in net revenue per patient
encounter.
Liquidity
At June 30, 2016, AMSURG had cash and cash equivalents of $74.1
million and availability under its $500 million revolving credit
facility of $100 million. Net cash flows from operations, less
distributions to noncontrolling interests, were $54.5 million for
the second quarter. The Company’s ratio of total debt at the end of
the second quarter to trailing 12 months EBITDA as calculated under
the Company’s credit agreement was 4.2.
Merger Update
AMSURG expects that the preliminary joint proxy
statement/prospectus related to its previously announced merger
with Envision Healthcare Holdings, Inc. (NYSE: EVHC) will be filed
with the U.S. Securities and Exchange Commission on Thursday,
August 4, 2016, by the new registrant “New Amethyst Corp.”
Guidance
AMSURG today adjusted its 2016 financial guidance for net
revenues as a result of the revised timing of acquisitions and new
contract signings in 2016. The Company also provided financial
guidance for the third quarter of 2016. The Company’s financial and
operating guidance is as follows:
- Revenues of $3.05 billion to $3.09
billion for 2016, compared with $3.09 billion to $3.13 billion
previously;
- A same-center revenue increase of 4% to
6% for Ambulatory Services for 2016 and same-contract revenue
growth of 4% to 6% in Physician Services;
- Adjusted EBITDA of $592 million to $601
million for 2016;
- Adjusted EPS of $4.28 to $4.35 for
2016; and
- For the third quarter of 2016, adjusted
EPS of $1.10 to $1.13.
Non-GAAP Adjusted EBITDA guidance for the full year of 2016
excludes interest expense, income taxes, depreciation,
amortization, share-based compensation, transaction costs, changes
in contingent purchase price consideration, gain or loss on
deconsolidations and discontinued operations. Non-GAAP Adjusted EPS
guidance for the third quarter and full year of 2016 exclude
acquisition-related transaction costs, acquisition-related
amortization expense, gains and losses on future deconsolidation
transactions and share-based compensation expense, net of the tax
impact thereon. The exact amount of such exclusions are not
currently determinable but may be significant and may vary
significantly from period to period (see page 6 for a
reconciliation of all GAAP and non-GAAP financial results).
Conference Call
AMSURG Corp. will hold a conference call to discuss this release
today, August 2, 2016, 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 “Investors” 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 and continue for 30 days.
Safe Harbor
This press release contains forward-looking statements,
including the Company’s financial and operating guidance for the
first quarter and full year of 2016. 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 important factors, including, but not limited
to, the following risks: we may face challenges managing our
Physician Services Division as a new business and may not realize
anticipated benefits; we may become subject to investigations by
federal and state entities and unpredictable impacts of the Patient
Protection and Affordable Care Act, as amended by the Health Care
and Education Reconciliation Act of 2010; there may be governmental
or commercial health changes designed to reduce the number of
surgical procedures; we may fail to comply with applicable laws and
regulations including the federal Anti-Kickback statue and similar
state laws; we may not be able to successfully maintain effective
internal controls over financial reporting; we may not be able to
implement our business strategy, manage the growth in our business,
and integrate acquired businesses; the attention of management may
be diverted by the process of making new acquisitions; the risks
associated with our ability to consummate the business combination
with Envision and the timing of the closing of the business
combination; the ability to successfully integrate our and
Envision’s operations and employees; the ability to realize the
anticipated benefits and synergies of the business combination with
Envision; the potential impact of the announcement of the business
combination or consummation of the transaction on relationships,
including with our employees, customers and competitors; our
substantial indebtedness and restrictions in our debt instruments
could adversely affect our business or our ability to implement our
growth strategy, or limit our ability to react to changes in the
economy or our industry; we may not generate sufficient cash to
service our indebtedness, including any future indebtedness;
restricted covenants in our indenture documents may restrict our
business strategies or could result in an acceleration of our debt;
regulatory changes may obligate us to buy out interests of
physicians who are minority owners of our surgery centers; we may
not be able to successfully maintain our information systems and
processes, implement new systems and processes, and maintain the
security of those systems and processes; we may fail to effectively
and timely transition to the ICD-10 coding system; we may fail to
effectively manage and implement security measures protecting our
information technology systems to protect confidential data; our
disaster recovery systems or management continuity plans may be
disrupted; we may face shortages or quality control issues of
products, equipment, and medical supplies that could adversely
affect our operations and profitability; enforcement authorities
may conclude that our market share in any particular market is too
concentrated or our clients’ commercial payor contract negotiating
practices are illegal; we may be subject to litigation and
investigations and liability claims for damages and other expenses
not covered by insurance; we may be required to write-off a portion
of our intangible assets; payments from third-party payors,
including government healthcare programs, may decrease or not
increase as our costs increase; there may be adverse developments
affecting the medical practices of our physician partners; we may
not be able to maintain favorable relations with our physician
partners; our physician partners may fail to perform on their pro
rata share of any indebtedness or lease agreements; we may not be
able to grow our ambulatory services revenue by increasing
procedure volume while maintaining operating margins and
profitability at our existing surgery centers; we may not be able
to compete for physician partners, managed care contracts, patients
and strategic relationships; adverse weather and other factors
beyond our control may affect our business; our legal
responsibility to minority owners of our surgery centers may
conflict with our interests and prevent us from acting solely in
our best interests; we may be adversely impacted by changes in
patient volume and patient mix; several client relationships
generate a significant portion of our physician services revenues;
our physician services contracts may be cancelled or not renewed or
we may not be able to enter into additional contracts under terms
acceptable to us; reimbursement rates, revenue and profit margin
under our fee-for-service physician services payor contracts may
decrease; we may not be able to timely or accurately bill for
services; laws and regulations that regulate payments for medical
services made by government healthcare programs could cause our
revenues to decrease; we may not be able to enroll our physician
services providers in the Medicare and Medicaid programs on a
timely basis; our strategic partnerships with healthcare providers
may not be successful; our segments of the market for medical
services have a high level of competition; we may not be able to
successfully recruit and retain physicians, nurses and other
clinical providers; we may not be able to accurately assess the
costs we will incur under new contracts; our margins may be
negatively impacted by cross-selling to existing clients or selling
bundled services to new clients; we may not be able to enforce
non-compete agreements with our physicians and other clinical
employees in some jurisdictions; there may be unfavorable changes
in regulatory, economic and other conditions in the states where we
operate; legislative or regulatory action may make our captive
insurance company arrangement less feasible or otherwise reduce our
profitability; our reserves with respect to our losses covered
under our insurance programs may not be sufficient; and the other
risk factors are described in AMSURG’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2015, as updated by other
filings with the Securities and Exchange Commission. Consequently,
actual results, performance or developments may differ materially
from the forward-looking statements included above. AMSURG
disclaims any intent or obligation to update these forward-looking
statements.
About AMSURG
AMSURG’s Ambulatory Services Division acquires, develops and
operates ambulatory surgery centers in partnership with physicians
throughout the U.S. AMSURG’s Physician Services Division, Sheridan,
provides outsourced physician services in multiple specialties to
hospitals, ASCs and other healthcare facilities throughout the
U.S., primarily in the areas of anesthesiology, children’s
services, emergency medicine and radiology. Through these
businesses as of June 30, 2016, AMSURG owned and operated 258 ASCs
and one surgical hospital in 34 states and the District of Columbia
and provided physician services to more than 530 healthcare
facilities in 32 states. AMSURG has partnerships with, or employs,
over 6,000 physicians and other healthcare professionals in 40
states and the District of Columbia.
AMSURG CORP. Unaudited Selected Consolidated
Financial and Operating Data (In thousands, except earnings
per share) Three Months Ended June 30,
Six Months Ended June 30,
Statement of
Earnings Data:
2016 2015 2016 2015
Revenues $ 859,832 $ 707,733 $ 1,678,118 $ 1,345,930 Provision for
uncollectibles (101,333 ) (65,783 ) (194,941 ) (133,535 ) Net
revenue 758,499 641,950 1,483,177 1,212,395 Operating expenses:
Salaries and benefits 404,011 320,396 813,850 622,575 Supply cost
49,703 45,790 96,666 88,374 Other operating expenses 111,145
105,002 218,827 195,572 Transaction costs 5,135 1,982 6,525 3,453
Depreciation and amortization 30,054 23,612 59,126
46,430 Total operating expenses 600,048 496,782
1,194,994 956,404 Net gain (loss) on disposals and deconsolidations
2,595 (3,035 ) 2,595 (3,258 ) Equity in earnings of unconsolidated
affiliates 7,351 3,989 13,930 6,640
Operating income 168,397 146,122 304,708 259,373 Interest expense,
net 31,913 30,182 62,723 60,429
Earnings before income taxes 136,484 115,940 241,985 198,944 Income
tax expense 33,365 25,193 54,162 39,442
Net earnings 103,119 90,747 187,823 159,502 Less net earnings
attributable to noncontrolling interests 57,050 57,072
110,891 104,789 Net earnings attributable to
AmSurg Corp. shareholders 46,069 33,675 76,932 54,713 Preferred
stock dividends (2,264 ) (2,264 ) (4,528 ) (4,528 ) Net earnings
attributable to AmSurg Corp. common shareholders $ 43,805 $
31,411 $ 72,404 $ 50,185 Net earnings
per share attributable to common shareholders: Basic $ 0.82 $ 0.66
$ 1.35 $ 1.05 Diluted $ 0.80 $ 0.65 $ 1.34 $ 1.05 Weighted average
number of shares and share equivalents outstanding: Basic 53,739
47,678 53,702 47,625 Diluted 57,327 48,099 57,229 48,002
AMSURG CORP. Unaudited Selected Consolidated
Financial and Operating Data, continued (In thousands,
except earnings per share) Three Months Ended
June 30, Six Months Ended June 30, 2016
2015 2016 2015 Reconciliation
of net earnings to Adjusted net earnings (1): Net
earnings attributable to AmSurg Corp. shareholders $ 46,069 $
33,675 $ 76,932 $ 54,713 Amortization of purchased intangibles
18,189 12,490 35,884 24,912 Share-based compensation 7,900 3,883
15,068 7,592 Transaction costs 5,135 1,982 6,525 3,453 Net (gain)
loss on disposals and deconsolidations (2,595 ) 3,035 (2,595 )
3,258 Net change in fair value of contingent consideration (2,598 )
6,410 (2,598 ) 6,410 Total pre-tax adjustments 26,031 27,800
52,284 45,625 Tax effect 8,952 11,593 19,453
18,723 Total adjustments, net 17,079 16,207 32,831
26,902
Adjusted net earnings $ 63,148 $ 49,882
$ 109,763 $ 81,615 Basic shares outstanding
53,739 47,678 53,702 47,625 Effect of dilutive securities, options
and non-vested shares 3,588 3,550 3,527 3,518
Diluted shares outstanding, if converted 57,327 51,228
57,229 51,143
Adjusted earnings per
share $ 1.10 $ 0.97 $ 1.92 $ 1.60
Reconciliation of net earnings to Adjusted EBITDA
(2): Net earnings attributable to AmSurg Corp.
shareholders $ 46,069 $ 33,675 $ 76,932 $ 54,713 Interest expense,
net 31,913 30,182 62,723 60,429 Income tax expense 33,365 25,193
54,162 39,442 Depreciation and amortization 30,054 23,612
59,126 46,430
EBITDA 141,401 112,662 252,943
201,014 Adjustments: Share-based compensation 7,900 3,883 15,068
7,592 Transaction costs 5,135 1,982 6,525 3,453 Net (gain) loss on
disposals and deconsolidations (2,595 ) 3,035 (2,595 ) 3,258 Net
change in fair value of contingent consideration (2,598 ) 6,410
(2,598 ) 6,410 Total adjustments 7,842 15,310
16,400 20,713
Adjusted EBITDA $ 149,243 $
127,972 $ 269,343 $ 221,727
Segment
Information: Ambulatory Services Adjusted EBITDA $ 61,746 $
60,304 $ 115,372 $ 107,612 Physician Services Adjusted EBITDA
87,497 67,668 153,971 114,115
Adjusted
EBITDA $ 149,243 $ 127,972 $ 269,343 $
221,727
Net Revenue by Segment: Ambulatory Services $
319,747 $ 310,991 $ 626,881 $ 594,901 Physician Services 438,752
330,959 856,296 617,494
Total net
revenue $ 758,499 $ 641,950 $ 1,483,177 $
1,212,395
See footnotes on page 10
AMSURG CORP. Unaudited Selected
Consolidated Financial and Operating Data, continued
Operating Data-
Ambulatory Services:
Three Months Ended June 30,
Six Months Ended June 30, 2016 2015
2016 2015 Procedures performed during the period at
consolidated centers 436,940 441,302 853,524 845,821 Centers in
operation, end of period (consolidated) 236 239 236 239 Centers in
operation, end of period (unconsolidated) 22 11 22 11 Average
number of continuing centers in operation (consolidated) 237 238
236 237 New centers added, during period 4 2 4 4 Centers merged
into existing centers, during period — — 1 — Centers discontinued,
during period 2 — 2 — Centers under development, end of period 1 2
1 2 Centers under letter of intent, end of period 4 6 4 6 Average
revenue per consolidated center (in thousands) $ 1,352 $ 1,308 $
2,655
$
2,515
Same center revenues increase (consolidated) 4.2 % 5.1 % 6.6 % 4.4
% Surgical hospitals in operation, end of period (unconsolidated) 1
— 1 —
Operating Data-
Physician Services:
Three Months Ended June 30, Six Months Ended June 30,
2016 2015 2016 2015 Contribution to
Net Revenue Growth: Same contract 4.5 % 10.9 % 7.0 %
8.1
%
New contract 0.6 1.6 0.9
2.0
Acquired contract and other 27.5 11.8
30.8
9.3
Total net revenue growth 32.6 % 24.3 %
38.7 %
19.4
%
Same contract revenue growth 5.5 % 14.3 % 8.4 %
10.5
%
AMSURG CORP. Unaudited Selected
Consolidated Financial and Operating Data, continued (In
thousands) June 30, December
31,
Balance Sheet
Data:
2016 2015 Assets Current assets: Cash and cash
equivalents $ 74,105 $ 106,660 Restricted cash and marketable
securities 12,794 13,506 Accounts receivable, net of allowance of
$208,780 and $167,411, respectively 375,352 337,330 Supplies
inventory 21,980 21,406 Prepaid and other current assets 74,565
75,771 Total current assets 558,796 554,673 Property and
equipment, net 204,922 189,168 Investments in unconsolidated
affiliates 179,056 169,170 Goodwill 4,175,008 3,970,210 Intangible
assets, net 1,679,275 1,594,637 Other assets 46,263 21,450
Total assets $ 6,843,320 $ 6,499,308
Liabilities and
Equity Current liabilities: Current portion of long-term debt $
20,772 $ 20,377 Accounts payable 30,721 32,561 Accrued salaries and
benefits 186,908 202,537 Accrued interest 30,400 30,480 Other
accrued liabilities 92,571 119,237 Total current liabilities
361,372 405,192 Long-term debt 2,581,043 2,357,956 Deferred income
taxes 743,447 699,498 Other long-term liabilities 119,478 96,183
Commitments and contingencies Noncontrolling interests – redeemable
177,845 175,732 Equity: Preferred stock, no par value, 5,000 shares
authorized, 1,725 shares issued and outstanding 166,632 166,632
Common stock, no par value, 120,000 shares authorized, 54,816 and
54,294 shares issued and outstanding, respectively 1,356,829
1,345,418 Retained earnings 853,817 781,413 Total AmSurg
Corp. equity 2,377,278 2,293,463 Noncontrolling interests –
non-redeemable 482,857 471,284 Total equity 2,860,135
2,764,747 Total liabilities and equity $ 6,843,320 $
6,499,308
AMSURG CORP. Unaudited Selected
Consolidated Financial and Operating Data, continued (In
thousands) Three Months Ended June 30,
Six Months Ended June 30,
Statement of Cash
Flow Data:
2016 2015 2016 2015
Cash flows from operating activities: Net earnings $ 103,119
$ 90,747 $ 187,823 $ 159,502 Adjustments to reconcile net earnings
to net cash flows provided by operating activities: Depreciation
and amortization 30,054 23,612 59,126 46,430 Amortization of
deferred loan costs 2,139 2,081 4,279 4,155 Provision for
uncollectibles 107,606 70,515 207,046 144,514 Net (gain) loss on
disposals and deconsolidations (2,595 ) 3,035 (2,595 ) 3,258
Share-based compensation 7,900 3,883 15,068 7,592 Excess tax
benefit from share-based compensation (129 ) (216 ) (3,734 ) (3,533
) Deferred income taxes 14,385 (635 ) 20,987 2,699 Equity in
earnings of unconsolidated affiliates (7,351 ) (3,989 ) (13,930 )
(6,640 ) Net change in fair value of contingent consideration
(2,598 ) 6,410 (2,598 ) 6,410 Increases (decreases) in cash and
cash equivalents, net of acquisitions and dispositions: Accounts
receivable (113,851 ) (82,842 ) (228,374 ) (157,056 ) Supplies
inventory (234 ) (80 ) (412 ) (110 ) Prepaid and other current
assets (15,321 ) 16,485 (23,744 ) 30,327 Accounts payable 2,761
1,830 (3,347 ) (696 ) Accrued expenses and other liabilities
(17,148 ) 20,534 (28,204 ) 12,648 Other, net 4,595 1,198
7,714 1,895 Net cash flows provided by
operating activities 113,332 152,568 195,105 251,395
Cash flows
from investing activities: Acquisitions and related expenses
(278,123 ) (69,454 ) (281,113 ) (196,032 ) Acquisition of property
and equipment (21,927 ) (17,882 ) (37,618 ) (32,665 ) Proceeds from
sale of interests in surgery centers 25 — 25 — Purchases of
marketable securities (498 ) (1,245 ) (498 ) (1,245 ) Maturities of
marketable securities 498 2,988 2,738 2,988 Other (7,240 ) (1,767 )
(8,749 ) (1,987 ) Net cash flows used in investing activities
(307,265 ) (87,360 ) (325,215 ) (228,941 )
Cash flows from
financing activities: Proceeds from long-term borrowings and
revolving credit facility 300,954 5,568 317,151 7,795 Repayment on
long-term borrowings and revolving credit facility (58,431 ) (5,075
) (98,763 ) (10,288 ) Distributions to noncontrolling interests
(58,788 ) (53,831 ) (115,589 ) (101,033 ) Proceeds from issuance of
common stock upon exercise of stock options 174 334 450 2,080
Repurchase of common stock — — (5,688 ) (3,684 ) Other (1,754 )
(2,071 ) (6 ) 886 Net cash flows provided by (used in)
financing activities 182,155 (55,075 ) 97,555
(104,244 ) Net increase (decrease) in cash and cash equivalents
(11,778 ) 10,133 (32,555 ) (81,790 ) Cash and cash equivalents,
beginning of period 85,883 116,156 106,660
208,079 Cash and cash equivalents, end of period $ 74,105
$ 126,289 $ 74,105 $ 126,289
AMSURG CORP.
Footnotes to Reconciliations of
Non-GAAP Measures to GAAP Measures
(1) We believe the calculation of adjusted net earnings from
continuing operations per diluted share attributable to AmSurg
Corp. common shareholders provides a better measure of our ongoing
performance and provides better comparability to prior periods
because it excludes discontinued operations, the gains or loss from
deconsolidations, which are non-cash in nature, transaction costs,
including associated debt extinguishment costs and deferred
financing write-off, and acquisition-related amortization expense,
changes in contingent purchase price consideration and share-based
compensation expense. Adjusted net earnings from continuing
operations per diluted share attributable to AmSurg Corp. common
shareholders should not be considered as a measure of financial
performance under accounting principles generally accepted in the
United States, and the items excluded from it is a significant
component in understanding and assessing financial performance.
Because adjusted net earnings from continuing operations per
diluted share attributable to AmSurg Corp. common shareholders is
not a measurement determined in accordance with accounting
principles generally accepted in the United States and is thus
susceptible to varying calculations, it may not be comparable as
presented to other similarly titled measures of other companies.
For purposes of calculating adjusted earnings per share, we utilize
the if-converted method to determine the number of diluted shares
outstanding. In periods where utilizing the if-converted method is
anti-dilutive, the mandatory convertible preferred stock will not
be included in the calculation of diluted shares outstanding.
(2) We define Adjusted EBITDA of AmSurg as earnings before
interest expense, net, income taxes, depreciation, amortization,
share-based compensation, transaction costs, changes in contingent
purchase price consideration, gain or loss on deconsolidations and
discontinued operations. Adjusted EBITDA should not be considered a
measure of financial performance under generally accepted
accounting principles. Items excluded from Adjusted EBITDA are
significant components in understanding and assessing financial
performance. Adjusted 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. Adjusted EBITDA should not be considered in
isolation or as an alternative to net income, cash flows from
operations, investing or financing activities, or other financial
statement data presented in the consolidated financial statements
as indicators of financial performance or liquidity. Because
Adjusted EBITDA is not a measurement determined in accordance with
generally accepted accounting principles and is thus susceptible to
varying calculations, Adjusted EBITDA as presented may not be
comparable to other similarly titled measures of other companies.
Net earnings from continuing operations attributable to AmSurg
Corp. common shareholders is the financial measure calculated and
presented in accordance with generally accepted accounting
principles that is most comparable to Adjusted EBITDA as defined.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160802006867/en/
AMSURG Corp.Claire M. Gulmi, 615-665-1283Executive Vice
President and Chief Financial Officer
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