The following is a summary of the Surgery Partners, Inc. (SGRY) Q3 2024 Earnings Call Transcript:
Financial Performance:
Surgery Partners reported Q3 net revenue of $770 million, a 14% increase year-over-year.
Adjusted EBITDA grew 22% to $128.6 million, with margins expanding by 100 basis points to 16.7%.
Full-year net revenue and adjusted EBITDA projections are anticipated to exceed $3.075 billion and $508 million respectively, representing at least 13% and 16% growth year-over-year.
Business Progress:
Continued focus on expanding high-acuity procedures, particularly total joint replacements in ASCs, which saw a 53% increase this quarter and a 5-year CAGR of over 80%.
Recruitment of over 230 new physicians in Q3, bringing the year's total to over 640.
Strategic acquisitions include two multi-specialty orthopedic focused ASCs in Chicago, partnering with Duly Health.
Significant investments in de novo development to enhance surgical capacity and capabilities.
Opportunities:
Ongoing shift of high-acuity procedures to ASC settings presents significant growth potential, particularly in orthopedics, cardiology, and spine services.
Risks:
Surgical scheduling and facility operations were temporarily impacted by Hurricanes Helene and Milton, affecting revenue and case volumes in affected regions.
Potential fluctuations in volume and rate due to economic or market conditions.
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