Oct. 22, 2009 (Business Wire) -- Christopher A. Holden, President and Chief Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the third quarter ended September 30, 2009. Revenues for the third quarter increased 11% to $167,873,000 from $150,749,000 for the third quarter of 2008. Net earnings from continuing operations attributable to AmSurg common shareholders were $13,393,000, up 6% from $12,595,000. Net earnings from continuing operations per diluted share attributable to AmSurg common shareholders increased 13% to $0.44 for the third quarter of 2009 from $0.39 for the third quarter of 2008. As expected, the results for the third quarter of 2009 included an incremental negative impact of $0.02 per diluted share from the effect of the revision of the Medicare payment system for ASCs.

Revenues for the first nine months of 2009 increased 12% to $500,141,000 from $447,050,000 for the first nine months in 2008. Net earnings from continuing operations attributable to AmSurg common shareholders rose 9% to $39,804,000 from $36,661,000. Net earnings from continuing operations per diluted share attributable to AmSurg common shareholders increased 12% to $1.29 from $1.15 for the comparable period in 2008. The results for the first nine months of 2009 included an incremental negative impact of $0.06 per diluted share from the effect of the revision of the Medicare payment system for ASCs.

Mr. Holden commented, “We are pleased with our third-quarter performance given the continued impact of the economic downturn and Medicare payment system revision. As expected, our revenues and earnings were consistent with the seasonally stronger second quarter of 2009. The addition of 19 centers in operation since the end of the third quarter of 2008 primarily accounted for our 11% procedure growth for the third quarter of 2009 from the third quarter of 2008. Same-center revenue was flat with the third quarter last year, reflecting current economic conditions. In addition, the impact of the Medicare rule revision reduced same center revenue by approximately 100 basis points.

“During the third quarter, we completed the acquisition of a small GI center. Through the first nine months of 2009, we have acquired five centers and opened one de novo center. At the quarter’s end, we had two centers under development, one of which is expected to open in the fourth quarter and one in 2010, and two centers under letter of intent, one of which we have subsequently acquired.

“Our net cash flow provided by operating activities was $61,076,000 for the third quarter of 2009 compared with $55,500,000 for the third quarter of 2008. Distributions to noncontrolling interests were $32,689,000 and $32,136,000 for the third quarters of 2009 and 2008, respectively, and are included in cash flows from financing activities.

“After third-quarter capital expenditures of $5.4 million primarily for maintenance and a center under development, we applied the majority of our available cash flow to reduce our debt by $21.8 million. As a result, our total debt to capitalization at the quarter’s end improved to 32.6% from 37.2% at the end of 2008. The ratio of total debt to trailing 12 months EBITDA also improved to 2.0 compared with 2.4 at the end of 2008.

“Consistent with our guidance, we continue to expect net cash flow provided by operating activities less distributions to noncontrolling interests in a range of $95 million to $100 million for 2009, which should be sufficient to fund the majority of our capital needs. Our cash and cash equivalents totaled $30.6 million at the end of the third quarter and our availability under our revolving credit facility, which matures in July 2011, was approximately $79.7 million.

“As we have discussed previously, our guidance for the addition of 13 to 16 centers for 2009 anticipated that the majority of our acquisitions would be completed late in the year and would have little impact on our 2009 earnings. Our pipeline of potential acquisitions is robust, and we expect to meet our guidance for center additions.

“Today, we have revised our earnings guidance by raising the low end of the previously established range. This revision reflects our earnings performance through the first nine months of 2009. We have remained cautious in establishing earnings guidance for the fourth quarter because of the continuing weak economic environment. Our financial guidance for 2009 and the fourth quarter of 2009 is as follows:

• Revenues in a range of $660 million to $680 million for 2009.
• Same-center revenue growth is expected to be flat for the full year, which includes a negative impact of one percentage point from the effect of the Medicare payment system revision.
• The addition of 13 to 16 new centers for the year.
• Net earnings from continuing operations per diluted share attributable to common shareholders for 2009 in a range of $1.70 to $1.71, including a negative $0.07 impact from the effect of the revised Medicare payment system revision, compared with the previous guidance of $1.69 to $1.71.
• Net earnings from continuing operations per diluted share attributable to common shareholders for the fourth quarter of 2009 in a range of $0.41 to $0.42 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, “AmSurg has continued to produce consistent, profitable results in the most difficult operating environment the Company has experienced. We believe the industry dynamics underlying these results combined with the strengths of our proven business model offer continuing potential for sustained long-term growth, despite the current limited visibility due to the economic environment. Simply put, ASCs provide high quality care in the most cost-effective, yet clinically appropriate, modality for an increasing number of surgical procedures. Demand for access to these procedures is growing. As one of the country’s leading ASC providers, we remain confident in our ability to manage through the current environment and to achieve our long-term growth objectives.”

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 and continue for 30 days.

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, 2008, and other filings with the Securities and Exchange Commission, including the following risks: adverse impacts on the Company’s business associated with current and future economic conditions; the risk that payments from third-party payors, including government healthcare programs, may decrease or not increase as the Company’s costs increase; adverse developments affecting the medical practices of the Company’s physician partners; 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; adverse weather and other factors that may affect the Company’s surgery centers; 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; potential liabilities associated with the Company’s status as a general partner of limited partnerships; liabilities for claims brought against our 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; risks associated with the potential write-off of the impaired portion of intangible assets; and potential liability relating to 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 September 30, 2009, AmSurg owned a majority interest in 194 continuing centers in operation and had two centers under development.