Surgery Partners net income hits $18.9M, 15 new facilities in the works

Surgery Partners reported increased net income for the second quarter of 2023 and raised its full year adjusted EBITDA guidance.

Six things to know:

1. Surgery Partners reported $667.6 million quarterly revenue, up 8.5 percent year-over year. The revenue reporting included an $8 million "cyber event" headwind. Same-facility revenue was up 8.3 percent and hit $4,302 per case.

2. Net income attributable to the company hit $18.9 million for the second quarter, compared to $18.4 million loss over the same period last year. Adjusted EBITDA was $100.2 million, up 16.4 percent for the quarter and improving by more than 100 basis points year-over-year to 15 percent.

3. Surgery Partners expects 2023 full year revenue to exceed $2.75 billion and free cash flow to hit at least $140 million. The company increased its adjusted EBITDA guidance for the full year to exceed $435 million.

4. Surgery Partners expects to open 15 new facilities in the next 18 months as its de novo investments progress. The company also partnered with Dallas-based Methodist Health System and acquired minority interest in three of the system's centers.

5. The company deployed around $60 million in capital during the second quarter and non-consolidated investments drove more than 30 percent revenue growth year-over-year. The company expects to see the growth "ramp up" in the next 18 months, according to DAve Doherty, CFO.

6. Surgery Partners had 152 surgical facilities in its portfolio as of June 30.

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