Surgery Partners Inc. SGRY reported first-quarter adjusted earnings of 4 cents per share on Monday, lower than the 10 cents reported a year ago, missing the consensus of 5 cents.
Surgery Partners is a healthcare services company focused on surgical services. It has over 200 locations in 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities.
The company reported quarterly sales of $776 million, compared to $717.4 million for the first quarter of 2024, missing the consensus of $777.07 million.
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Same-facility revenues for the first quarter of 2025 increased 5.2% compared to the same period in the prior year, with a (1.2)% decrease in revenue per case and a 6.5% increase in same-facility cases.
For the first quarter of 2025, adjusted EBITDA was $103.9 million, compared to $97.5 million for the same period in 2024.
Surgery Partners had cash and cash equivalents of $229.3 million and $388.9 million of borrowing capacity under its revolving credit facility as of March 31.
Cash flows from operating activities were $6.0 million for the first quarter of 2025, compared to $40.7 million for the same period in 2024.
At the end of the first quarter of 2025, the company’s ratio of total net debt to EBITDA, as calculated under its credit agreement, was approximately 4.1x.
2025 Outlook: Surgery Partners reaffirmed its 2025 outlook.
The company expects sales of $3.30 billion-$3.45 billion versus the consensus of $3.39 billion.
The company sees adjusted EBITDA of $555 million-$565 million.
Eric Evans, CEO, stated, “Our continued focus on maximizing portfolio performance, advancing a robust M&A pipeline, and driving greater operating efficiencies, combined with a bullish outlook on surgical trends and the regulatory landscape, have us positioned to continue delivering industry-leading earnings growth in 2025 and beyond.”
Dave Doherty, CFO, says Surgery Partners has sufficient liquidity and cash generated from operations “to fund future M&A activity at levels that support our long-term growth objectives without having to access incremental capital from the debt or equity markets over the next five years.”
Surgery Partners received a non-binding proposal from Bain Capital Private Equity in January for a cash consideration of $25.75 per share.
Price Action: SGRY stock is down 2.29% at $22.16 at the last check on Monday.
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