AmSurg revenue up 5%: 7 Q2 financial report highlights
1.. Revenues rose to $281.1 million, up 5 percent from $267.1 million in the second quarter of 2013. Net earnings attributable to common shareholders were $19 million, or $0.59 per diluted share, up from $18.4 million, or $0.58 per diluted share, in the same period last year.
2. For the first six months of the year, revenues were $544.2 million, up 4 percent from $525.3 million in same period last year. Net earnings from continuing operations attributable to common shareholders were $36.5 million, or $1.13 per diluted share, compared to $36.2 million, or $1.13 per diluted share, in the first half of 2013.
3. "AmSurg's financial results met our expectations for the second quarter. We benefitted from a 1 percent increase in same-center revenue, despite having one less business day in the quarter compared with the second quarter last year. Average revenue per procedure increased 4 percent on a comparable quarter basis, primarily due to changing procedure mix," said AmSurg CEO and president Christopher Holden in the report.
4. During the second quarter, AmSurg deconsolidated three surgery centers and contributed their controlling interests in the centers to create two joint ventures with two health systems. The company also acquired a surgery center to end the quarter with a total of 243 centers. AmSurg has an additional six surgery centers under letter of intent and a de novo ASC under development, expected to open next year.
5. The company completed the $2.35 billion Sheridan Healthcare acquisition on July 16. "Through this transaction, we have effectively doubled the company's size, strengthened our geographic, payer and revenue diversity and accelerated expected revenue growth, greatly enlarged our addressable market, created a strongly differentiated competitive market position and substantially enhanced our organic and acquisition growth opportunities," said Mr. Holden in the report.
6. In light of the Sheridan acquisition the company revised its financial and operating guidance for 2014. AmSurg will record the transaction fees related to the acquisition in the third quarter, which will result in a net loss for that quarter. Revenues are now expected to fall between $1.61 billion and $1.63 billion.
7. AmSurg expects a favorable outlook on 2015. "In July, CMS announced proposed 2015 ASC reimbursement rates. We estimate these rates will positively impact our 2015 revenue by approximately $7 million," said Mr. Holden in the report.
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