EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Claire M. Gulmi
- --------------------- Executive Vice President and
Chief Financial Officer
(615) 665-1283
AMSURG REPORTS FIRST-QUARTER NET EARNINGS PER DILUTED SHARE OF
$0.29, OR $0.34 EXCLUDING EFFECT OF FAS 123R
----------------------
PRODUCES SAME-CENTER REVENUE GROWTH OF 8%
NASHVILLE, Tenn. (April 25, 2006) - Ken P. McDonald, President and Chief
Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial
results for the first quarter ended March 31, 2006. For the first quarter,
revenues increased 25% to a new quarterly record of $113,634,000 from
$91,263,000 for the first quarter of 2005. Net earnings from continuing
operations were $8,725,000, or $0.29 per diluted share, for the first quarter of
2006, including expense of $0.05 per diluted share for FAS 123R, which was
adopted in January 2006. The impact of FAS 123R was greater than originally
anticipated for the quarter, but is expected to remain within the established
guidance of $0.14 per diluted share for full-year 2006. Net earnings from
continuing operations for the first quarter of 2005 were $8,751,000, or $0.29
per diluted share. Earnings per diluted share, excluding the impact of FAS 123R,
would have increased 17% to $0.34 for the latest quarter from $0.29 for the
first quarter last year.
THREE MONTHS ENDED
MARCH 31,
----------------------------
2006 2005
---------- -----------
Earnings per diluted share, excluding
impact of FAS 123R(1) $ 0.34 $ 0.29(2)
Share-based payment expense (0.05) (0.03)(3)
---------- ----------
Earnings per diluted share $ 0.29(2) $ 0.26
========== ===========
(1) Earnings per diluted share excluding impact of FAS 123R is not a
measurement determined in accordance with accounting principles generally
accepted in the United States. AmSurg believes its calculation of earnings
per diluted share excluding impact of FAS 123R in this press release is a
useful measure of the Company's ongoing performance because it provides
comparability to periods prior to the adoption of FAS 123R and disclosures
of its operations on the same basis as that used by management. Earnings
per diluted share excluding impact of FAS 123R should not be considered as
a measure of financial performance under accounting principles generally
accepted in the United States, and the item excluded from it is a
significant component in understanding and assessing financial performance.
(2) Earnings per diluted share, GAAP basis.
(3) Pro forma share-based payment expense, as if the Company adopted FAS 123R
on January 1, 2005.
Mr. McDonald remarked, "We are pleased with AmSurg's performance for
the first quarter, especially with the procedure-driven 8% increase in
same-center revenues. We anticipated a strong first-quarter performance because
of significant same-center revenue growth
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AMSG Reports First-Quarter Results
Page 2
April 25, 2006
expected in three large de novo centers that had minimal volume for the first
quarter of 2005 and the observation of the Easter holiday during the second
quarter of 2006 compared with the first quarter of 2005. We are encouraged by
our same-center revenue performance for the first quarter, but because our
annual expectations included a strong first quarter, we are maintaining our
established same-center guidance for 2006 of 3% to 4%.
"Our 25% growth in revenues for the first quarter also reflected the
expansion of our base of centers in operation to 153 at the end of the quarter
from 132 at the same time in 2005. We opened one de novo center during the first
quarter and completed the acquisition of three additional centers. At the end of
the first quarter, we had four de novo centers under development, one of which
is scheduled to open during 2006, three centers awaiting CON approval and two
centers under letter of intent. Based on our first-quarter opening activity and
our significant pipeline of potential center acquisitions, we remain confident
of achieving our targeted range of 12 to 15 center openings for 2006."
"Based on AmSurg's first-quarter performance and its outlook on the
operating environment for the remainder of 2006, the Company today affirms its
established guidance for full-year 2006 as follows:
o Revenues in a range of $445 million to $465 million.
o Same-center revenue growth of 3% to 4%.
o The addition of 12 to 15 new centers for the year, including one
more de novo center and seven to ten additional center
acquisitions.
o Net earnings per diluted share as follows:
TWELVE MONTHS THREE MONTHS
----------------------------- ---------------
ENDING Ended ENDING
DEC. 31, 2006 Dec. 31, JUN. 30, 2006
(GUIDANCE) 2005 (GUIDANCE)
-------------- ---------- ---------------
Earnings per diluted share, excluding
impact of FAS 123R $ 1.36 -- 1.39 $ 1.21(1) $ 0.34 -- 0.35
Share-based payment expense (0.14) (0.11)(2) (0.03)
-------------- ---------- ---------------
Earnings per diluted share $ 1.22 -- 1.25(1) $ 1.10 $ 0.31 -- 0.32(1)
============== ========== ===============
(1) Earnings per diluted share, GAAP basis.
(2) Pro forma share-based payment expense, as if the Company
had adopted FAS 123R in 2005.
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. McDonald concluded, "Our first-quarter operating and financial
performance provided AmSurg a solid start to achieving our objectives for 2006.
We are continuing to focus on strengthening our same-center revenue growth. Our
determination to succeed is supported by
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AMSG Reports First-Quarter Results
Page 3
April 25, 2006
our market leading position, highly experienced operating teams, substantial
operating cash flow, solid financial position and compelling long-term industry
dynamics."
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 July 24, 2006.
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, 2005, and other
filings with the Securities and Exchange Commission, including the following
risks: the risk that payments from third-party payors may decrease or not
increase as the Company's costs increase; changes in the rate setting
methodology, payment rates, payment policies and the list of covered surgical
procedures for ambulatory surgery centers by the Centers for Medicare and
Medicaid Services; the Company's ability to maintain favorable relations with
its physician partners; the Company's ability to identify suitable acquisition
and development candidates and negotiate and close transactions in a timely
manner and on favorable terms; the Company's ability to grow revenues at its
existing centers; risks associated with weather and other factors that may
affect the Company's surgery centers located in Florida; the Company's ability
to manage the growth in its business; the Company's ability to obtain the
necessary financing or capital on terms satisfactory to it to execute its
expansion strategy; the Company's ability to compete for physician partners,
managed care contracts, patients and strategic relationships; the Company's
ability to obtain and retain appropriate licensing approvals for its existing
centers and centers currently under development and to comply with applicable
laws; the risk of changes in legislation, regulations or regulatory
interpretations that may negatively affect the Company; the risk of legislative
or regulatory changes that would prohibit physician ownership in ambulatory
surgery centers; risks associated with the Company's status as a general partner
of limited partnerships; the Company's ability to obtain the necessary financing
to fund the purchase of its physician partners' minority interests in the event
of a regulatory change that would require such a purchase; and risks associated
with the valuation and 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. develops, acquires and manages physician practice-based
ambulatory surgery centers in partnership with surgical and other group
practices. At March 31, 2006, AmSurg owned a majority interest in 153 centers
and had four centers under development and three centers awaiting CON approval.
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AMSG Reports First-Quarter Results
Page 4
April 25, 2006
AMSURG CORP.
UNAUDITED SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS
ENDED MARCH 31,
-------------------------
STATEMENT OF EARNINGS DATA: 2006 2005
- --------------------------- --------- ---------
Revenues $113,634 $ 91,263
Operating expenses:
Salaries and benefits 34,865 25,663
Supply cost 12,995 9,918
Other operating expenses 21,818 18,181
Depreciation and amortization 4,175 3,571
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Total operating expenses 73,853 57,333
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Operating income 39,781 33,930
Minority interest 23,729 18,709
Interest expense, net 1,702 828
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Earnings from continuing operations before income taxes 14,350 14,393
Income tax expense 5,625 5,642
-------- ---------
Net earnings from continuing operations 8,725 8,751
Discontinued operations:
Loss from operations of discontinued interests in surgery centers, net of income tax -- (99)
-------- ---------
Net earnings $ 8,725 $ 8,652
======== =========
Basic earnings per common share:
Net earnings from continuing operations $ 0.29 $ 0.30
Net earnings $ 0.29 $ 0.29
Diluted earnings per common share:
Net earnings from continuing operations $ 0.29 $ 0.29
Net earnings $ 0.29 $ 0.29
Weighted average number of shares and share equivalents (000's):
Basic 29,693 29,451
Diluted 30,219 30,024
OPERATING DATA:
- ---------------
Continuing centers in operation at end of period 153 132
Centers under development/not opened at end of period 4 7
Development centers awaiting CON approval at end of period 3 --
Centers under letter of intent 2 2
Average number of centers in operation 150 128
Average revenue per center $ 757 $ 712
Same center revenues increase 8% 3%
Procedures performed during the period 212,510 170,427
Cash flows provided by operating activities $ 21,341 $ 18,327
Cash flows used by investing activities $(25,484) $ (21,822)
Cash flows provided by financing activities $ 4,366 $ 5,161
Reconciliation of net earnings to EBITDA and adjusted EBITDA (1):
Net earnings from continuing operations $ 8,725 $ 8,751
Add: income tax expense 5,625 5,642
Add: interest expense, net 1,702 828
Add: depreciation and amortization 4,175 3,571
-------- ---------
EBITDA 20,227 18,792
Add: share-based compensation 2,574 --
-------- ---------
Adjusted EBITDA $ 22,801 $ 18,792
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AMSG Reports First-Quarter Results
Page 5
April 25, 2006
AMSURG CORP.
UNAUDITED SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA
(IN THOUSANDS)
MARCH 31, DEC. 31,
BALANCE SHEET DATA: 2006 2005
- ------------------- -------- --------
Cash and cash equivalents $ 20,719 $ 20,496
Accounts receivable, net 50,103 46,387
Working capital 66,371 61,072
Total assets 557,034 527,816
Long-term debt and other long-term liabilities 138,878 125,712
Minority interest 51,987 47,271
Shareholders' equity 306,129 294,618
(1) EBITDA is defined as earnings before interest, income taxes and
depreciation and amortization. Adjusted EBITDA is defined as earnings
before interest, income taxes, depreciation and amortization and
share-based compensation expense. EBITDA and adjusted EBITDA should not be
considered a measure of financial performance under generally accepted
accounting principles. Items excluded from EBITDA and adjusted EBITDA are
significant components in understanding and assessing financial
performance. EBITDA and adjusted EBITDA are analytical indicators used by
management and the health care industry to evaluate company performance,
allocate resources and measure leverage and debt service capacity. EBITDA
and adjusted EBITDA should not be considered in isolation or as
alternatives 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 and adjusted EBITDA are not
measurements determined in accordance with generally accepted accounting
principles and are thus susceptible to varying calculations, EBITDA and
adjusted 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 and adjusted EBITDA as defined.
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