Surgery Partners, Inc. (NASDAQ:SGRY) Q3 2023 Earnings Call Transcript November 7, 2023 8:30 AM ET

Company Participants

Dave Doherty - CFO

Wayne DeVeydt - Executive Chairman

Eric Evans - CEO

Conference Call Participants

Kevin Fischbeck - Bank of America

Jason Cassorla - Citi

Whit Mayo - Leerink Partners

Brian Tanquilut - Jefferies

Sarah James - Cantor Fitzgerald

Ann Hynes - Mizuho Securities

Bill Sutherland - Benchmark Company

Ben Hendrix - RBC Capital Markets

Operator

Good morning, ladies and gentlemen, and welcome to Surgery Partners' Third Quarter of 2023 Earnings Call. Currently, 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. It is now my pleasure to hand you over to Chief Financial Officer, Dave Doherty. Please go ahead, sir.

Dave Doherty

Good morning. My name is Dave Doherty, CFO of Surgery Partners, and I'm here with our CEO, Eric Evans, and our Executive Chairman, Wayne DeVeydt. Thank you for joining us for our third quarter 2023 earnings announcement.

During our call, we will make forward-looking statements. There are risk factors that could cause future results to be materially different from these statements. These risk factors are described in this morning's press release and the reports we file with the SEC, each of which are available on our website at surgerypartners.com. The company does not undertake any duty to update these forward-looking statements. In addition, we will reference certain financial measures that are considered non-GAAP, which we believe can be useful in evaluating our performance. The presentation of this information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. These measures are reconciled to the most applicable GAAP measure in this morning's press release. 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. We are pleased to report another quarter of consistent growth in revenue and adjusted EBITDA, exceeding our prior guidance. Including our non-consolidating facilities, we performed over 172,000 surgical cases this quarter. When adjusted for divested facilities and factoring in one less business day, this was nearly 6% more than 2022. Other than the impact of Hurricane Idalia, which marginally impacted our Florida and Georgia facilities mid-quarter, we did not experience any pressure from external factors, as we continue to produce steady, predictable growth in our key growth areas. This strong case growth combined with increased acuity and contributions from recent acquisitions, generated $674.1 million of net revenue and $105.5 million of adjusted EBITDA, resulting in a 15.7% margin.