Surgery Partners, Inc. (NASDAQ:SGRY) Q1 2022 Earnings Conference Call May 3, 2022 8:30 AM ET

Company Participants

Dave Doherty - Chief Financial Officer

Wayne DeVeydt - Executive Chairman

Eric Evans - Chief Executive Officer

Conference Call Participants

Kevin Fischbeck - Bank of America

Brian Tanquilut - Jefferies

Lisa Gill - JPMorgan

Whit Mayo - SVB Securities

Tao Qiu - Stifel

Jason Cassorla - Citi

Ben Hendrix - RBC Capital Markets

Sarah James - Barclays

Operator

Greetings. Welcome to the Surgery Partners, Inc. First Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]

Please note this conference is being recorded. I will now turn the conference over to your host, Dave Dougherty, CFO. You may begin.

Dave Doherty

Good morning, and welcome to Surgery Partners' First 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 supporting our patients and communities. We are humbled by their efforts and commitment in living Surgery Partners' core values. On behalf of the Board of Directors and the executive management team, thank you for everything you do.

Turning to our first quarter results, we are pleased to report first quarter 2022 adjusted EBITDA of $77.1 million, a 6% increase as compared to the prior year period and a 22% increase when excluding CARES grants. In the quarter, we performed just over 142,000 surgical cases, nearly 14% more than 2021, resulting in net revenue of approximately $600 million or 16.4% higher than the comparable prior year quarter. We're especially encouraged by these results as the first quarter experienced several macro challenges including the impact of the Omicron variant and broader inflationary pressures. As we previously stated, we are not immune to such challenges but our business model continues to demonstrate its durability and resiliency.