Surgery Partners Inc (SGRY) Reports 8.6% Revenue Growth in Q3 2023
Surgery Partners Inc (NASDAQ:SGRY) reported an 8.6% increase in Q3 2023 revenues to $674.1 million.
Adjusted EBITDA grew by 9.7% to $105.5 million, with the margin improving year-over-year to 15.7%.
The company reported a net loss of $4.9 million for the quarter.
Full year Adjusted EBITDA guidance has been raised to a range of $436 million to $440 million.
On November 7, 2023, Surgery Partners Inc (NASDAQ:SGRY), a leading operator of surgical facilities, announced its financial results for the third quarter ended September 30, 2023. The company reported revenues of $674.1 million, representing an 8.6% growth compared to the same period last year. Despite the increase in revenues, the company reported a net loss attributable to Surgery Partners of $4.9 million.
Financial Highlights
Adjusted EBITDA for the quarter was $105.5 million, marking a 9.7% growth from the previous year. The Adjusted EBITDA margin also improved year-over-year to 15.7%. Equity earnings in unconsolidated affiliates increased by 45.8% to $3.5 million. The company also reported that revenues from facilities not consolidated increased by a significant 71.2% to $159.6 million. The Adjusted EBITDA contribution from unconsolidated affiliates was $10.2 million, 29.1% higher than in 2022.
Wayne DeVeydt, Executive Chairman of Surgery Partners, commented on the results,
We are pleased to report another quarter of double-digit same facility growth across our portfolio, driven by the consistent execution of our operating model, which resulted in revenue and Adjusted EBITDA that exceeded our expectations."
Year-to-Date Performance
For the year-to-date period of 2023, Surgery Partners Inc (NASDAQ:SGRY) reported a 9.6% increase in revenues to $2,007.9 million from $1,832.2 million for the 2022 period. The companys net loss attributable to Surgery Partners, Inc. and Adjusted EBITDA was $10.9 million and $295.8 million, respectively, compared to $31.2 million and $259.4 million, respectively, for the same period last year.
Outlook for 2023
The company has raised its projected 2023 Adjusted EBITDA to a range of $436 million to $440 million and anticipates revenue at approximately $2.75 billion.
Financial Position
As of September 30, 2023, Surgery Partners had cash and cash equivalents of $236.0 million, and $544.9 million of borrowing capacity under its revolving credit facility. The companys ratio of total net debt to EBITDA, as calculated under the companys credit agreement, was approximately 4.1x at the end of the third quarter of 2023.
Investors interested in further details can access the full earnings report on the company's website or join the conference call scheduled for November 7, 2023, at 8:30 a.m. (Eastern Time).
Explore the complete 8-K earnings release (here) from Surgery Partners Inc for further details.
This article first appeared on GuruFocus.
