Surgery Partners posts $28.6M loss on Q2 — 7 insights

Despite $445.4 million in second-quarter 2019 revenues, Surgery Partners posted a net loss of $28.6 million for the quarter.

Seven things to know:

1. Revenues increased 2 percent to $445.4 million for the quarter, up from $436.6 million from the same time last year. Half-year revenues hit $862.2 million, up from $847.9 million in 2018.

2. The company's net losses increased from this time last year from $27.4 million to $28.6 million. For the half year, the company posted a net loss of $57.2 million, which is more than the $52.7 million net loss the company posted for the same period in 2018.

3. Revenue per case increased in the second quarter from $3,316 in 2018 to $3,344 in 2019. For the first six months of the year, revenue per case increased from $3,306 in 2018 to $3,346 in 2019.

4. Same-facility cases also increased from 138,710 cases in the second quarter of 2018 to 141,421 cases for the same period of 2019.

5. The company's adjusted EBITDA was $61.2 million for the second quarter of 2019, up from $55.4 million in 2018. For the year to date, EBITDA was $112 million in 2019, up from $102.5 million in 2018.

6. Surgery Partners has 128 facilities through the second quarter, up from 124 in the same time last year. The company increased its number of consolidated surgical facilities by one in 2019, bringing the total to 107.

7. Surgery Partners guidance on the year stayed the same. The company believes it will be able to grow revenues at a low single-digit percentage rate in 2019, with adjusted EBITDA growing at a double-digit growth rate.

CEO Wayne DeVeydt and CFO Tom Cowhey remained confident in the company's future. Mr. Cowhey said: "We believe the first half of 2019 demonstrates the power of our model, our strategic initiatives and our potential. We are pleased to see continued same facility growth in both volumes and rate, with strong margin improvement as our initiatives take hold."

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