BRENTWOOD, Tenn. - Surgery Partners, Inc. (NASDAQ:SGRY), a prominent operator of short-stay surgical facilities, reported a robust first quarter for 2024, with earnings and revenue surpassing analyst expectations.
The company announced a first-quarter EPS of $0.10, which is $0.02 higher than the analyst consensus of $0.08. Revenue also exceeded forecasts, reaching $717.4 million against an anticipated $700.01 million.
The company's revenue saw a 7.7% increase compared to the same quarter last year, indicating a strong year-over-year (YoY) growth. This performance was bolstered by a 10.2% rise in same-facility revenues, driven by an 8.8% increase in revenue per case and a 1.3% uptick in same-facility cases. Adjusted EBITDA for the quarter climbed to $97.5 million, a growth of 8.2% YoY, with the margin improving to 13.6%.
In light of these results, Surgery Partners has raised its full-year 2024 guidance, projecting revenues to be at least $3.05 billion and Adjusted EBITDA to reach at least $505 million. This updated guidance surpasses the analyst consensus, which had forecasted $3.007 billion in revenue for the fiscal year.
The company's Executive Chairman, Wayne DeVeydt, attributed the strong quarter to the company's commitment to clinical quality, operational execution, and strategic initiatives, including physician recruiting and acquisitions. CEO Eric Evans expressed confidence in the company's continued growth, citing recent acquisitions and a robust pipeline as key factors.
Surgery Partners' financial position remains solid, with $185.2 million in cash and cash equivalents and $607.3 million of available borrowing capacity under its revolving credit facility as of March 31, 2024. The company has successfully enhanced its balance sheet through capital market transactions, refinancing its term loan, increasing its revolver, and entering into forward-starting interest rate caps to hedge against future interest rate exposure.
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