Surgery Partners Inc. (NASDAQ:SGRY) Q2 2022 Earnings Conference Call August 2, 2022 8:30 AM ET

Company Participants

Dave Doherty - Executive VP and CFO

Wayne DeVeydt - Executive Chairman

Eric Evans - Chief Executive Officer

Conference Call Participants

Brian Tanquilut - Jefferies

Jason Cassorla - Citi

Lisa Gill - JP Morgan

Bill Sutherland - The Benchmark Company

Whit Mayo - SVB Securities

Ben Hendrix - RBC Capital

Tao Qiu - Stifel

Sarah James - Barclays

Operator

Greetings, and welcome to the Surgery Partners, Inc. Second Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over CFO, Dave Doherty. Please go ahead, sir.

Dave Doherty

Good morning, and welcome to Surgery Partners second quarter 2022 earnings call. This is Dave Doherty, Chief Financial Officer. Joining me today are Wayne DeVeydt, Surgery Partners Executive Chairman; and Eric Evans, Surgery Partners Chief Executive Officer.

As a reminder, 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 our earnings release, which is 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. Before we begin the call, I would like to acknowledge and thank our colleagues and frontline caregivers for their relentless focus on providing the highest clinical care and quality to our patients and communities. You are at the core of our values as an organization, and on behalf of the Board of Directors and the Executive Management Team, thank you for everything you do.

Turning to our second quarter results. We are pleased to report second quarter 2022 adjusted EBITDA of $86.1 million, a 13% increase as compared to the prior year quarter and nearly 18% growth when excluding CARES Act grants. In the quarter, we performed just over 149,000 surgical cases, nearly 7% more than 2021, resulting in a 13% increase in net revenue. We are especially encouraged by these results as we have continued navigating the macroeconomic challenges, including the broader inflationary pressures and continuation of COVID-19 variants. As we have restated, we are not immune to such challenges, but our business model continues to demonstrate its durability and resiliency. We ended the quarter with strong momentum and are optimistic that we can continue to navigate these areas through the balance of the year.