Surgery Partners Reports Third Quarter 2024 Financial Results
Surgery Partners, Inc. (NASDAQ: SGRY), a leading owner and operator of short-stay surgical facilities, announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates | Surprise |
|---|---|---|---|---|---|
| Total Revenue | $770.4 million | $674.1 million | +14.3% | $769.76 million | +$0.64 million |
| Adjusted EBITDA | $128.6 million | $105.5 million | +21.9% | - | - |
| Adjusted EBITDA Margin | 16.7% | - | +100 bps | - | - |
Interpretation: Surgery Partners delivered a strong quarter with a notable revenue increase of 14.3% year-over-year, slightly beating consensus estimates. The Adjusted EBITDA showed robust growth of 21.9%, reflecting solid operational performance and cost management.
Operational Highlights:
- Cash and cash equivalents were $221.8 million at the end of the quarter.
- Revolver capacity stood at $595.8 million.
- Same-facility revenues increased by 4.2%, with cases rising by 3.7%.
- Affected by Hurricane Helene in collections, impacting quarterly cash flow.
Comments from Company Officers:
Executive Chairman Wayne DeVeydt highlighted strong growth in Adjusted EBITDA and revenue, aligning with long-term growth strategies. CEO Eric Evans emphasized the strength in surgical case volume, particularly in higher acuity areas and from recent acquisitions. CFO Dave Doherty mentioned the company’s substantial liquidity position and strategic actions to mitigate refinancing and interest rate risks, supporting future growth.
Forward Guidance:
The company reaffirmed its full-year 2024 revenue and Adjusted EBITDA guidance, projecting totals greater than $3.075 billion and $508 million, respectively.
Stock Price Movement:
Following the earnings release, Surgery Partners’ stock experienced a 3.52% increase.
In summary, Surgery Partners reported a strong financial performance for the third quarter of 2024, with growth in key financial metrics aligning well with market expectations and internal guidance. Despite challenges from Hurricane Helene, the company remains well-positioned with a solid growth strategy and liquidity capacity.
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