Surgery Partners, Inc. (NASDAQ:SGRY) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET
Company Participants
Dave Doherty - Chief Financial Officer
Wayne DeVeydt - Executive Chairman
Eric Evans - Chief Executive Officer
Conference Call Participants
Brian Tanquilut - Jefferies
Kevin Fischbeck - Bank of America
Lisa Gill - JP Morgan
Ben Hendrix - RBC Capital
Operator
Greetings, and welcome to the Surgery Partners, Inc. Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Dave Doherty. Doherty, you may begin.
Dave Doherty
Good morning, and welcome to Surgery Partners third quarter 2022 earnings call. I’m Dave Doherty, the company’s CFO. Joining me today is our Executive Chairman, Wayne DeVeydt; and our CEO, Eric Evans.
During this call, we will make forward-looking statements. Risk factors that may impact those statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we file with the SEC. The company does not undertake any duty to update such forward-looking statements.
Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these measures can be found in this morning’s press release posted on our website at surgerypartners.com and in our most recent quarterly report on Form 10-Q, when filed.
With that, I'll turn the call over to Wayne. Wayne?
Wayne DeVeydt
Thank you, Dave. Good morning, and thank you all for joining us today. This morning, we're pleased to report third quarter 2022 adjusted EBITDA of 96.2 million, a 26% increase as compared to the prior year quarter. Net revenue grew 11% to 621 million from a combination of case growth and an increase in net revenue per case from higher acuity procedures and rate improvements, as well as our continued execution on deploying capital for high value acquisitions.
As we've experienced in prior quarters, we've managed the rate of supply cost inflation and premium labor cost pressures at levels consistent with our historical trend. The combination of our top line growth and focus on controllable cost allowed us to report an adjusted EBITDA margin of 15.5%, a 180 basis points above the prior year and 150 basis points above our second quarter margin.