Amsurg 8K Results of Operations and Financial Condition | AMSG 22 Apr 14

	Exhibit 99
Press Release

	Contact:	Claire M. Gulmi
		Executive Vice President and
		Chief Financial Officer
		(615) 665-1283

AMSURG REPORTS FIRST-QUARTER 2014 RESULTS

¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾

UPDATES 2014 FINANCIAL GUIDANCE

NASHVILLE, Tenn. ─ (April 22, 2014) ─ Christopher A. Holden, President and Chief Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the quarter ended March 31, 2014. Revenues were $263.1 million for the quarter, an increase of 2% from $258.2 million for the first quarter of 2013. Net earnings from continuing operations attributable to AmSurg common shareholders were $17.5 million, or $0.55 per diluted share, for the first quarter of 2014 compared with $17.8 million, or $0.56 per diluted share, for the first quarter last year. Results for each of the first quarters of 2014 and 2013 included an after-tax gain related to the deconsolidation of a surgery center that AmSurg contributed to newly formed joint ventures with separate hospital system partners. The after-tax gain was $550,000, or $0.02 per diluted share, for the first quarter of 2014 and $1.3 million, or $0.04 per diluted share, for the first quarter of 2013. Excluding these gains, net earnings from continuing operations per diluted share attributable to AmSurg common shareholders for the first quarter of 2014 were $0.53 compared with $0.52 for the first quarter of 2013.

Mr. Holden remarked, “AmSurg’s results for the first quarter of 2014, which reflected a 2% decline in same-center revenues, were affected materially more by severe winter weather throughout the quarter than we anticipated in the guidance we established in late February. At that time, we estimated that we would lose 4,000 to 5,000 procedures during the quarter, although we now estimate that our total of lost procedures for the quarter was in excess of 8,000, due to the continuing severe weather in March. The inclement weather that occurred across the country impacted over 38% of our centers, resulting in center closures, cancelled procedures and delays in re-establishing normal daily procedure volume. We believe these lost procedures accounted for the 2% decline in same-center revenues for the quarter.

“The 2% growth in revenue we produced for the quarter primarily reflected the positive impact from the six centers acquired in 2013, as well as a 2.4% increase in revenue per procedure. For the first quarter of 2014, we acquired one center in early January, and we divested one center. We also contributed our controlling interest in one center to our second joint venture created with a new hospital system partner. We completed the first quarter of 2014 with seven letters of intent and had one de novo center under development, which we expect to open in 2015. With a robust pipeline of additional potential transactions, in addition to our letters of intent, we continue to expect to meet our center acquisition guidance for 2014.

“For the first quarter, AmSurg’s net operating cash flows, excluding distributions to noncontrolling interests, were $26.6 million. Our net capital expenditures were $12.0 million for the first quarter, and we reduced long-term debt with our free cash flow. At the end of the first quarter of 2014, we had $47.1 million in cash and cash equivalents and our availability under our

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AMSG Reports First-Quarter Results

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April 22, 2014

revolving credit facility was $237.5 million. Our ratio of total debt to trailing 12 months EBITDA as calculated under our credit agreement improved to 2.95 at the end of the first quarter of 2014 from 3.01 at the end of 2013 and 3.15 at March 31, 2013.

“We are today revising our financial and operating guidance for 2014 and establishing guidance for the second quarter of 2014. The revisions to our financial guidance for the full year are primarily being made to incorporate the impact of our first-quarter results. Our guidance is as follows:

· Revenues in a range of $1.12 billion to $1.13 billion.

· Same-center revenue increase of 1% to 2%.

· Center acquisitions that generate annualized operating income in a range of $25 million to $29 million.

· Net cash flow provided by operating activities, less distributions to noncontrolling interests, in a range of $150 million to $160 million.

· Net earnings from continuing operations per diluted share attributable to common shareholders in a range of $2.41 to $2.45, excluding the deconsolidation gain.

· For the second quarter of 2014, net earnings from continuing operations per diluted share attributable to common shareholders in a range of $0.61 to $0.64.”

The information contained in the preceding paragraphs, including information regarding the Company’s acquisition plans and financial results for future periods, is forward-looking information. Forward-looking information involves known and unknown risks and uncertainties as described below. There can be no assurance that AmSurg will be successful in acquiring the surgery centers described above and the attainment of the financial targets set forth in this press release is dependent on the assumptions described above. The Company’s actual results and performance could differ materially from those expressed or implied by the forward-looking information contained in this press release.

Mr. Holden concluded, “Our outlook for the last nine months of 2014 has not meaningfully changed, despite a challenging first quarter. While our guidance continues to incorporate the impact of fewer acquisitions in 2013 than planned, we also expect to benefit in the remainder of 2014 from having cycled the negative quarterly impact of sequestration.

“In addition, we continue to expect our growth to be supported by the industry’s favorable dynamics, including strong demographic trends, better access to healthcare and increasing demand for high quality care in the most cost effective venue. As the owner and operator of the largest number of ambulatory surgery centers (ASCs) in the country, we believe we are well-positioned to meet our long-term growth objectives.”

AmSurg Corp. will hold a conference call to discuss this release tomorrow, April 23, 2014, at 9:00 a.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com and clicking “Investors” at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call and continue for 30 days.

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AMSG Reports First-Quarter Results

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April 22, 2014

This press release contains forward-looking statements. These statements, which have been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by important factors, including, but not limited to, the following risks: the risk that payments from third-party payors, including government healthcare programs, may decrease or not increase as costs increase; the Company’s ability to acquire and develop additional surgery centers on favorable terms; the Company’s ability to compete for physician partners, managed care contracts, patients and strategic relationships; adverse developments affecting the medical practices of the Company’s physician partners; the Company’s ability to maintain favorable relations with the Company’s physician partners; the Company’s ability to grow revenues by increasing procedure volume while maintaining operating margins and profitability at the Company’s existing centers; the Company’s ability to manage the growth in its business and integrate acquired businesses; the Company’s ability to obtain sufficient capital resources to complete acquisitions and develop new surgery centers; the Company’s ability to generate sufficient cash to service all of its indebtedness; adverse weather and other factors beyond the Company’s control that may affect the Company’s surgery centers; the Company’s failure to comply with applicable laws and regulations; the Company’s failure to effectively and timely transition to the ICD-10 coding system; the risk of changes in legislation, regulations or regulatory interpretations that may negatively affect the Company; the risk of becoming subject to federal and state investigation; the risk from an unpredictable impact of the Health Reform Law; the risk of regulatory changes that may obligate the Company to buy out interests of physicians who are minority owners of its surgery centers; potential liabilities associated with the Company’s status as a general partner of limited partnerships; liabilities for claims brought against the Company’s facilities; the Company’s legal responsibility to minority owners of its surgery centers, which may conflict with its interests and prevent it from acting solely in its best interests; potential write-offs of the impaired portion of intangible assets; and potential liabilities relating to the tax deductibility of goodwill; and other risk factors described in AmSurg’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and other filings with the Securities and Exchange Commission. Consequently, actual results, performance or developments may differ materially from the forward-looking statements included above. AmSurg disclaims any intent or obligation to update these forward-looking statements.

AmSurg Corp. acquires, develops and operates ambulatory surgery centers in partnership with physician practice groups throughout the United States. At March 31, 2014, AmSurg owned and operated 242 centers.

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AMSG Reports First-Quarter Results

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data

(In thousands, except earnings per share)

			For the Three Months
			Ended March 31,
Statement of Earnings Data:			2014		2013
Revenues			$	263,107	$	258,189
Operating expenses:
	Salaries and benefits			83,194		80,958
	Supply cost			38,720		37,213
	Other operating expenses			55,269		52,727
	Depreciation and amortization			8,374		8,008
		Total operating expenses		185,557		178,906
Gain on deconsolidation				2,045		2,237
Equity in earnings of unconsolidated affiliates				764		402
		Operating income		80,359		81,922
Interest expense				6,963		7,542
	Earnings from continuing operations before income taxes			73,396		74,380
Income tax expense				13,057		12,269
	Net earnings from continuing operations			60,339		62,111
Discontinued operations:
	Earnings from operations of discontinued interests in surgery centers, net of income tax			137		162
	Loss on disposal of discontinued interests in surgery centers, net of income tax			(362)		-
		Net (loss) earnings from discontinued operations		(225)		162
	Net earnings and comprehensive income			60,114		62,273
Less net earnings and comprehensive income attributable to noncontrolling interests:
	Net earnings from continuing operations			42,835		44,361
	Net earnings from discontinued operations			84		101
		Total net earnings and comprehensive income attributable to noncontrolling interests		42,919		44,462
		Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,195	$	17,811
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax		$	17,504	$	17,750
	Discontinued operations, net of income tax			(309)		61
		Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,195	$	17,811
Earnings per share-basic:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.55	$	0.57
	Net loss from discontinued operations attributable to AmSurg Corp. common shareholders			(0.01)		-
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.54	$	0.57
Earnings per share-diluted:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.55	$	0.56
	Net loss from discontinued operations attributable to AmSurg Corp. common shareholders			(0.01)		-
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.54	$	0.56
Weighted average number of shares and share equivalents outstanding:
	Basic			31,716		31,217
	Diluted			32,120		31,881

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AMSG Reports First-Quarter Results

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(Dollars in thousands)

			For the Three Months
			Ended March 31,
Operating Data:			2014		2013
Continuing centers in operation at end of period (consolidated)				238		233
Continuing centers in operation at end of period (unconsolidated)				4		4
Average number of continuing centers in operation (consolidated)				239		234
New centers added during the period				1		1
Centers discontinued during the period				1		-
Centers under development/not opened at end of period				1		-
Centers under letter of intent at end of period				7		4
Average revenue per consolidated center			$	1,102	$	1,104
Same center revenues decrease				(2%)		(2%)
Procedures performed during the period at consolidated centers				389,987		391,703
Income tax expense attributable to noncontrolling interests			$	168	$	186

Reconciliation of net earnings to EBITDA (1):
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	17,504	$	17,750
	Add: income tax expense			13,057		12,269
	Add: interest expense, net			6,963		7,542
	Add: depreciation and amortization			8,374		8,008
		EBITDA	$	45,898	$	45,569

(1) EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity. EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to EBITDA as defined.

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)


			March 31,		December 31,
Balance Sheet Data:			2014		2013
Assets
Current assets:
	Cash and cash equivalents		$	47,116	$	50,840
	Accounts receivable, net of allowance of $31,720 and $27,862, respectively			106,209		105,072
	Supplies inventory			18,433		18,414
	Deferred income taxes			1,026		3,097
	Prepaid and other current assets			37,151		33,602
		Total current assets		209,935		211,025
Property and equipment, net				169,006		169,895
Investments in unconsolidated affiliates and other				19,484		16,392
Goodwill				1,764,623		1,758,970
Intangible assets, net				21,093		21,662
		Total assets	$	2,184,141	$	2,177,944

Liabilities and Equity
Current liabilities:
	Current portion of long-term debt		$	20,285	$	20,844
	Accounts payable			25,359		27,501
	Accrued salaries and benefits			26,218		32,294
	Other accrued liabilities			12,387		9,231
		Total current liabilities		84,249		89,870
Long-term debt				564,937		583,298
Deferred income taxes				185,882		176,020
Other long-term liabilities				25,753		25,503
Commitments and contingencies
Noncontrolling interests – redeemable				177,683		177,697
Preferred stock, no par value, 5,000 shares authorized, no shares issued or outstanding				-		-
Equity:
	Common stock, no par value, 70,000 shares authorized, 32,505 and 32,353 shares outstanding, respectively			186,894		185,873
	Retained earnings			595,519		578,324
		Total AmSurg Corp. equity		782,413		764,197
		Noncontrolling interests – non-redeemable		363,224		361,359
		Total equity		1,145,637		1,125,556
		Total liabilities and equity	$	2,184,141	$	2,177,944

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AMSG Reports First-Quarter Results

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)

					For the Three Months
					Ended March 31,
Statement of Cash Flow Data:					2014		2013
Cash flows from operating activities:
	Net earnings				$	60,114	$	62,273
	Adjustments to reconcile net earnings to net cash flows provided by operating activities:
		Depreciation and amortization				8,374		8,008
		Net loss on sale of long-lived assets				604		-
		Gain on deconsolidation				(2,045)		(2,237)
		Share-based compensation				2,458		2,050
		Excess tax benefit from share-based compensation				(1,727)		(288)
		Deferred income taxes				11,933		12,929
		Equity in earnings of unconsolidated affiliates				(764)		(402)
		Increases (decreases) in cash and cash equivalents, net of effects of acquisitions and dispositions, due to changes in:
			Accounts receivable, net			(1,651)		(1,705)
			Supplies inventory			(245)		(201)
			Prepaid and other current assets			(3,638)		17
			Accounts payable			(3,578)		(3,040)
			Accrued expenses and other liabilities			(606)		(4,101)
			Other, net			590		562
				Net cash flows provided by operating activities		69,819		73,865
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions					(5,038)		(252)
	Acquisition of property and equipment					(7,038)		(6,110)
	Proceeds from sale of interests in surgery centers					1,111		-
	Other					(418)		-
				Net cash flows used in investing activities		(11,383)		(6,362)
Cash flows from financing activities:
	Proceeds from long-term borrowings					31,945		30,870
	Repayment on long-term borrowings					(50,853)		(48,211)
	Distributions to noncontrolling interests					(43,194)		(43,914)
	Proceeds from issuance of common stock upon exercise of stock options					488		5,691
	Repurchase of common stock					(2,857)		(16,758)
	Capital contributions and ownership transactions by noncontrolling interests					584		559
	Excess tax benefit from share-based compensation					1,727		288
	Financing cost incurred					-		(13)
				Net cash flows used in financing activities		(62,160)		(71,488)
Net decrease in cash and cash equivalents						(3,724)		(3,985)
Cash and cash equivalents, beginning of period						50,840		46,398
Cash and cash equivalents, end of period					$	47,116	$	42,413

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AMSG Reports First-Quarter Results

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands, except earnings per share)

Presented below is certain statement of earnings and operating data for 2013, which have been restated in order to present additional discontinued operations.

									For the Year
			For the Three Months						Ended
			June 30,		Sept. 30,		Dec. 31,		Dec. 31,
Statement of Earnings Data:			2013		2013		2013		2013
Revenues			$	267,102	$	266,755	$	283,435	$	1,075,481
Operating expenses:
	Salaries and benefits			81,085		84,382		85,820		332,245
	Supply cost			38,989		38,035		42,398		156,635
	Other operating expenses			53,925		55,978		59,182		221,812
	Depreciation and amortization			8,125		8,342		8,463		32,938
		Total operating expenses		182,124		186,737		195,863		743,630
Gain on deconsolidation				-		-		-		2,237
Equity in earnings of unconsolidated affiliates				696		1,095		958		3,151
		Operating income		85,674		81,113		88,530		337,239
Interest expense				7,512		7,295		7,186		29,535
		Earnings from continuing operations before income taxes		78,162		73,818		81,344		307,704
Income tax expense				12,710		11,392		13,215		49,586
		Net earnings from continuing operations		65,452		62,426		68,129		258,118
		Net earnings (loss) from discontinued operations		384		(159)		3,039		3,426
		Net earnings		65,836		62,267		71,168		261,544
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations			47,035		45,423		48,898		185,717
	Net earnings from discontinued operations			238		73		2,712		3,124
		Total net earnings attributable to noncontrolling interests		47,273		45,496		51,610		188,841
		Net earnings attributable to AmSurg Corp. common shareholders	$	18,563	$	16,771	$	19,558	$	72,703
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax		$	18,417	$	17,003	$	19,231	$	72,401
	Discontinued operations, net of income tax			146		(232)		327		302
		Net earnings attributable to AmSurg Corp. common shareholders	$	18,563	$	16,771	$	19,558	$	72,703
Earnings per share-basic:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.59	$	0.54	$	0.61	$	2.31
	Net (loss) earnings from discontinued operations attributable to AmSurg Corp. common shareholders			-		(0.01)		0.01		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.59	$	0.53	$	0.62	$	2.32
Earnings per share-diluted:
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	0.58	$	0.53	$	0.60	$	2.27
	Net (loss) earnings from discontinued operations attributable to AmSurg Corp. common shareholders			-		(0.01)		0.01		0.01
		Net earnings attributable to AmSurg Corp. common shareholders	$	0.58	$	0.52	$	0.61	$	2.28
Weighted average number of shares and share equivalents outstanding:
	Basic			31,208		31,376		31,549		31,338
	Diluted			31,862		31,991		32,082		31,954

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AMSG Reports First-Quarter Results

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April 22, 2014

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(Dollars in thousands)

Presented below is certain statement of earnings and operating data for 2013, which have been restated in order to present additional discontinued operations.

									For the Year
			For the Three Months						Ended
			June 30,		Sept. 30,		Dec. 31,		Dec. 31,
Operating Data:			2013		2013		2013		2013
Procedures				415,786		406,809		427,919		1,642,217
Reconciliation of net earnings to EBITDA (1):
	Net earnings from continuing operations attributable to AmSurg Corp. common shareholders		$	18,417	$	17,003	$	19,231	$	72,401
	Add: income tax expense			12,710		11,392		13,215		49,586
	Add: interest expense, net			7,512		7,295		7,186		29,535
	Add: depreciation and amortization			8,125		8,342		8,463		32,938
		EBITDA	$	46,764	$	44,032	$	48,095	$	184,460

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Amsurg (AMSG) Inactive 8-KResults of Operations and Financial Condition