Amsurg (AMSG) 8-K Amsurg Announces Second-quarter Net Earnings from Continuing

Exhibit 99

AMSG Reports Second-Quarter Results
Page 2
July 22, 2008

Press Release

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

AMSURG ANNOUNCES SECOND-QUARTER NET EARNINGS FROM CONTINUING

OPERATIONS OF $0.39 PER DILUTED SHARE

NASHVILLE, Tenn. — (July 22, 2008) — Christopher A. Holden, President and Chief Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the second quarter and six months ended June 30, 2008. Revenues increased 18% to a record $152,105,000 for the quarter from $128,406,000 for the second quarter of 2007. Net earnings from continuing operations rose 18% to $12,548,000 from $10,634,000. Net earnings from continuing operations per diluted share were $0.39 for the second quarter of 2008, an increase of 15% from $0.34 for the second quarter of 2007.

     Revenue for the first six months of 2008 was $299,210,000, up 19% from $252,097,000 for the first half of 2007. Net earnings from continuing operations increased 19% to $24,294,000 from $20,397,000. Net earnings from continuing operations per diluted share grew 15% to $0.76 for the first six months of 2008 from $0.66 for the comparable period in 2007.

     Mr. Holden commented, “With solid second-quarter results that met our expectations, AmSurg remains well on-track to achieve its financial and operating objectives for 2008. We are pleased to note that, even with the impact of the Medicare rule revising the payment system for ASCs, which reduced net earnings from continuing operations during the quarter by approximately $0.01 per diluted share, we were able to maintain a strong EBITDA margin of 18.9%.

     “Our second-quarter revenue growth reflected a 19% increase in procedures compared with the second quarter of 2007. We produced most of this increase through the addition of 19 acquired or de novo centers since the second quarter last year. Procedure growth accounted for a 3% increase in same-center revenue for the second quarter. During the quarter, we acquired two centers that had been under letter of intent at the end of the first quarter, classified one center as held for sale and disposed of two centers, bringing the total of continuing centers in operation to 176 at the end of the quarter. We also added a center under development and completed the quarter with three centers under development, one of which is expected to open in 2008. We entered into four new letters of intent during the quarter for three center acquisitions and a de novo center, giving us a total of five centers under letter of intent at the quarter’s end, and we had one center awaiting certificate of need certification.

     “The center classified as held for sale will be sold to a hospital and is expected to close in the third quarter. We also disposed of two non-operational centers. The net loss associated with the operations and dispositions of these centers was $0.04 per share and is reflected in discontinued operations.

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AMSG Reports Second-Quarter Results
Page 2
July 22, 2008

     “AmSurg’s cash flow from operations for the second quarter was $20.3 million, which funded all of our acquisition and maintenance capital expenditures during the period. Cash and cash equivalents increased to $24,319,000 at June 30, 2008, from $24,116,000 at the end of the first quarter of 2008, while long-term debt decreased to $198,620,000 from $200,219,000. We remain well positioned to execute our center acquisition strategy, with debt to total capital of 32% at the end of the second quarter and a ratio of total debt to trailing 12 months EBITDA of 1.9. We also have approximately $115 million in availability under our revolving credit facility.

     Based on AmSurg’s financial performance for the first six months of 2008, as well as its outlook for the remainder of the year, the Company today affirmed its established guidance for 2008 and provided its guidance for the third quarter of the year as follows:

• Revenues in a range of $600 million to $620 million for 2008.

• Same-center revenue growth of 3% to 4% for the full year, which includes a negative impact of one percentage point from the effect of the Medicare rule revising the payment system for ASCs, which was effective January 1, 2008.

• The addition of 12 to 15 centers for the year, including the opening of one de novo center.

• An estimated effective income tax rate for the year of 39.8%.

• Net earnings per diluted share for 2008 in a range of $1.53 to $1.55, including a negative $0.05 impact from the effect of the revised Medicare payment system.

• Net earnings per diluted share for the third quarter of 2008 in a range of $0.38 to $0.39 per diluted share.

     The information contained in the preceding paragraphs is forward-looking information, and the attainment of these targets is dependent not only on AmSurg’s achievement of its assumptions discussed above, but also on the risks and uncertainties listed below that could cause actual results, performance or developments to differ materially from those expressed or implied by this forward-looking information.

     Mr. Holden concluded, “We are encouraged by AmSurg’s steady operating and financial performance in an uncertain economic environment. The consistency of our continuing centers in operation, our robust pipeline of potential new centers and our strong financial position support our confidence in achieving our guidance for 2008.

     “We also remain fully engaged in a number of initiatives designed to improve our business model and, thereby, enhance our continuing ability to be the strategic partner of choice for physicians. As we progress on these initiatives in the quarters ahead, we expect to increase the value proposition we provide our physician partners, our center patients and our shareholders.”

     AmSurg Corp. will hold a conference call to discuss this release today at 5:00 p.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 “Investor Relations” or by going to www.earnings.com 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 through the end of business on October 20, 2008.

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AMSG Reports Second-Quarter Results
Page 2
July 22, 2008

     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 the important factors, among others, set forth in AmSurg’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and other filings with the Securities and Exchange Commission, including the following risks: the risk that payments from third-party payors, including government healthcare programs, may decrease or not increase as the Company’s costs increase; the Company’s ability to maintain favorable relations with its physician partners; the Company’s ability to acquire and develop additional surgery centers on favorable terms; the Company’s ability to grow revenues by increasing procedure volume while maintaining its operating margins and profitability at its existing centers; the Company’s ability to manage the growth in its business; the Company’s ability to obtain sufficient capital resources to complete acquisitions and develop new surgery centers; the Company’s ability to compete for physician partners, managed care contracts, patients and strategic relationships; risks associated with weather and other factors that may affect the Company’s surgery centers; uncertainties associated with judicial, regulatory and legislative developments in New Jersey; the Company’s failure to comply with applicable laws and regulations; 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 of regulatory changes that may obligate the Company to buy out interests of physicians who are minority owners of its surgery centers; risks associated with the Company’s status as a general partner of limited partnerships; 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; risks associated with the write-off of the impaired portion of intangible assets; and risks associated with the tax deductibility of goodwill. 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 June 30, 2008, AmSurg owned a majority interest in 176 continuing centers in operation and had three centers under development.

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AMSG Reports Second-Quarter Results
Page 4
July 22, 2008

AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands, except per share amounts)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2008			2007			2008			2007
Statement of Earnings Data:
Revenues	$	152,105		$	128,406		$	299,210		$	252,097
Operating expenses:
Salaries and benefits		43,999			37,231			86,893			74,622
Supply cost		17,786			14,566			34,798			28,533
Other operating expenses		30,759			27,229			61,213			51,404
Depreciation and amortization		5,303			4,589			10,533			9,131
Total operating expenses		97,847			83,615			193,437			163,690
Operating income		54,258			44,791			105,773			88,407
Minority interest		30,879			25,638			59,992			50,599
Interest expense, net		2,509			2,160			5,311			4,609
Earnings from continuing operations before income taxes		20,870			16,993			40,470			33,199
Income tax expense		8,322			6,359			16,176			12,802
Net earnings from continuing operations		12,548			10,634			24,294			20,397
Discontinued operations:
(Loss) earnings from operations of discontinued interests in surgery centers, net of income tax expense		(115	)		411			(155	)		925
(Loss) gain on disposal of discontinued interests in surgery centers, net of income tax (benefit) expense		(1,189	)		147			(1,189	)		147
Net (loss) earnings from discontinued operations		(1,304	)		558			(1,344	)		1,072
Net earnings	$	11,244		$	11,192		$	22,950		$	21,469
Basic earnings per common share:
Net earnings from continuing operations	$	0.40		$	0.35		$	0.77		$	0.67
Net earnings	$	0.36		$	0.37		$	0.73		$	0.71
Diluted earnings per common share:
Net earnings from continuing operations	$	0.39		$	0.34		$	0.76		$	0.66
Net earnings	$	0.35		$	0.36		$	0.72		$	0.70
Weighted average number of shares and share equivalents (000’s):
Basic		31,479			30,541			31,388			30,294
Diluted		31,962			31,085			31,876			30,795
Operating Data:
Continuing centers in operation at end of period		176			157			176			157
Centers under development/not opened at end of period		3			4			3			4
Development centers awaiting CON approval at end of period		1			—			1			—
Centers under letter of intent		5			8			5			8
Average number of centers in operation		175			159			175			159
Average revenue per center	$	869		$	806		$	1,715		$	1,586
Same center revenues increase		3	%		3	%		3	%		3	%
Procedures performed during the period		282,205			236,234			552,808			463,826
Reconciliation of net earnings to EBITDA (1):
Net earnings from continuing operations	$	12,548		$	10,634		$	24,294		$	20,397
Add: income tax expense		8,322			6,359			16,176			12,802
Add: interest expense, net		2,509			2,160			5,311			4,609
Add: depreciation and amortization		5,303			4,589			10,533			9,131
EBITDA	$	28,682		$	23,742		$	56,314		$	46,939

(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 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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AMSG Reports Second-Quarter Results
Page 5
July 22, 2008

AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands)

	June 30,			Dec. 31,
	2008			2007
Balance Sheet Data:
Assets
Current assets:
Cash and cash equivalents	$	24,319		$	29,953
Accounts receivable, net of allowance of $9,328 and $8,310 respectively		64,960			61,284
Supplies inventory		7,441			6,882
Deferred income taxes		1,559			1,354
Prepaid and other current assets		17,391			18,509
Current assets held for sale		163			—
Total current assets		115,833			117,982
Long-term receivables and deposits		348			1,653
Property and equipment, net		102,499			104,874
Intangible assets, net		577,612			557,125
Long-term assets held for sale		2,613			—
Total assets	$	798,905		$	781,634
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	4,993		$	5,781
Accounts payable		10,263			12,703
Accrued salaries and benefits		13,090			12,415
Other accrued liabilities		2,847			2,291
Current income taxes payable		—			1,000
Current liabilities held for sale		616			—
Total current liabilities		31,809			34,190
Long-term debt		198,620			216,822
Deferred income taxes		48,223			41,990
Other long-term liabilities		14,522			15,401
Long-term liabilities held for sale		184			—
Minority interest		65,453			62,006
Shareholders’ equity:
Common stock, no par value 70,000,000 shares authorized, 31,516,921 and 31,202,629 shares outstanding, respectively		181,039			172,536
Deferred compensation		(6,544	)		(3,916	)
Retained earnings		266,992			244,042
Accumulated other comprehensive loss, net of income taxes		(1,393	)		(1,437	)
Total shareholders’ equity		440,094			411,225
Total liabilities and shareholders’ equity	$	798,905		$	781,634

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AMSG Reports Second-Quarter Results
Page 6
July 22, 2008

AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(Dollars in thousands)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2008			2007			2008			2007
Statement of Cash Flow Data:
Cash flows from operating activities:
Net earnings	$	11,244		$	11,192		$	22,950		$	21,469
Adjustments to reconcile net earnings to net cash flows provided by operating activities:
Minority interest		30,879			25,638			59,992			50,599
Distributions to minority partners		(29,918	)		(26,773	)		(56,857	)		(49,352	)
Depreciation and amortization		5,303			4,589			10,533			9,131
Net loss on sale and impairment of long-lived assets		861			1,066			861			1,066
Share-based compensation		1,342			1,194			2,408			2,272
Excess tax benefit from share-based compensation		(207	)		(1,044	)		(478	)		(1,924	)
Deferred income taxes		3,418			1,679			5,932			3,410
Increase (decrease) in cash and cash equivalents, net of effects of acquisition and dispositions, due to changes in:
Accounts receivable, net		(540	)		(1,892	)		(2,899	)		(4,193	)
Supplies inventory		(42	)		30			(174	)		208
Prepaid and other current assets		837			1,697			1,100			627
Accounts payable		(10	)		149			(1,803	)		(2,381	)
Accrued expenses and other liabilities		(2,794	)		(3,628	)		188			1,596
Other, net		(50	)		485			65			940
Net cash flows provided by operating activities		20,323			14,382			41,818			33,468
Cash flows from investing activities:
Acquisition of interest in surgery centers		(15,700	)		(6,654	)		(23,597	)		(48,867	)
Acquisition of property and equipment		(4,903	)		(6,053	)		(9,438	)		(10,202	)
Proceeds from sale of surgery center		—			1,659			—			1,659
Decrease in long-term receivables		625			640			1,250			1,071
Net cash flows used in investing activities		(19,978	)		(10,408	)		(31,785	)		(56,339	)
Cash flows form financing activities:
Proceeds from long-term borrowings		24,200			11,568			35,156			55,269
Repayment on long-term borrowings		(26,623	)		(25,076	)		(54,829	)		(44,609	)
Proceeds from issuance of common stock upon exercise of stock options		1,850			4,705			2,989			8,608
Proceeds from capital contributions by minority partners		227			—			548			32
Excess tax benefit from share-based compensation		207			1,044			478			1,924
Financing cost incurred		(3	)		(1	)		(9	)		(6	)
Net cash flows (used in) provided by financing activities		(142	)		(7,760	)		(15,667	)		21,218
Net increase (decrease) in cash and cash equivalents		203			(3,786	)		(5,634	)		(1,653	)
Cash and cash equivalents, beginning of period		24,116			22,216			29,953			20,083
Cash and cash equivalents, end of period	$	24,319		$	18,430		$	24,319		$	18,430

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AMSG Reports Second-Quarter Results
Page 7
July 22, 2008

AMSURG CORP.
Unaudited Selected Consolidated Financial and Operating Data
(In thousands)

Presented below is certain statement of earnings and operating data for the three months ended March 31, 2008 and fiscal year 2007, which have been restated in order to present additional discontinued operations.

	Three												Year
	Months Ended			Three Months Ended									Ended
	March 31,			March 31,		June 30,		Sept. 30,			Dec. 31,		Dec. 31,
	2008			2007		2007		2007			2007		2007
Statement of Earnings Data:
Revenues	$	147,105		$	123,691	$	128,406	$	129,295		$	143,006	$	524,398
Operating expenses:
Salaries and benefits		42,894			37,391		37,231		38,218			41,360		154,200
Supply cost		17,012			13,967		14,566		15,076			16,681		60,290
Other operating expenses		30,454			24,175		27,229		26,165			29,747		107,316
Depreciation and amortization		5,230			4,542		4,589		4,735			5,257		19,123
Total operating expenses		95,590			80,075		83,615		84,194			93,045		340,929
Operating income		51,515			43,616		44,791		45,101			49,961		183,469
Minority interest		29,113			24,961		25,638		25,687			27,999		104,285
Interest expense, net		2,802			2,449		2,160		2,179			2,869		9,657
Earnings from continuing operations before income taxes		19,600			16,206		16,993		17,235			19,093		69,527
Income tax expense		7,854			6,443		6,359		6,689			7,554		27,045
Net earnings from continuing operations		11,746			9,763		10,634		10,546			11,539		42,482
Discontinued operations:
(Loss) earnings from operations of discontinued interest in surgery centers, net of income taxes		(40	)		514		411		149			289		1,363
Gain (loss) on disposal of discontinued interest in surgery centers, net of income tax expense (benefit)		—			—		147		(705	)		888		330
Net earnings (loss) from discontinued operations		(40	)		514		558		(556	)		1,177		1,693
Net earnings	$	11,706		$	10,277	$	11,192	$	9,990		$	12,716	$	44,175
Basic earnings per common share:
Net earnings from continuing operations	$	0.38		$	0.32	$	0.35	$	0.34		$	0.37	$	1.39
Net earnings	$	0.37		$	0.34	$	0.37	$	0.32		$	0.41	$	1.44
Diluted earnings per common share:
Net earnings from continuing operations	$	0.37		$	0.32	$	0.34	$	0.34		$	0.36	$	1.37
Net earnings	$	0.37		$	0.34	$	0.36	$	0.32		$	0.40	$	1.42
Weighted average number of shares and share equivalents (000’s):
Basic		31,298			30,046		30,541		30,778			31,110		30,619
Diluted		31,790			30,505		31,085		31,175			31,644		31,102
Operating Data:
Procedures		270,603			227,592		236,234		241,688			261,864		967,378
Reconciliation of net earnings to EBITDA (1):
Net earnings from continuing operations	$	11,746		$	9,763	$	10,634	$	10,546		$	11,539	$	42,482
Add: income tax expense		7,854			6,443		6,359		6,689			7,554		27,045
Add: interest expense, net		2,802			2,449		2,160		2,179			2,869		9,657
Add: depreciation and amortization		5,230			4,542		4,589		4,735			5,257		19,123
EBITDA	$	27,632		$	23,197	$	23,742	$	24,149		$	27,219	$	98,307

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