Surgery Partners, Inc. (NASDAQ:SGRY) Q4 2023 Earnings Conference Call February 26, 2024 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
Jason Cassorla - Citi
Lisa Gill - JPMorgan
Bill Sutherland - The Benchmark Company
Sarah James - Cantor Fitzgerald
Gary Taylor - TD Cowen
Ben Hendrix - RBC Capital Markets
Operator
Greetings, and welcome to the Surgery Partners Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Mr. Dave Doherty, Chief Financial Officer of Surgery Partners. Thank you. You may begin.
Dave Doherty
Good morning. My name is Dave Doherty, CFO of Surgery Partners. I'm joined today by Eric Evans, CEO, and Wayne DeVeydt, Executive Chairman.
During this 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 filed with the SEC, each of which are available on our website, 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 will turn the call over to Wayne. Wayne?
Wayne DeVeydt
Thank you, Dave. Good morning, and thank you all for joining us today.
My remarks this morning will focus on our full year 2023 results and the positive catalysts we see as we head into 2024. I'll then turn the call over to Eric to provide further insights into our operating environment, along with details for the quarter. Finally, Dave will conclude with additional color on the quarter and an updated view related to the strength of our balance sheet and full year guidance associated with calendar year 2024.
Starting with our 2023 results, we are extremely pleased with substantial progress we achieved related to our strategic initiatives and how these initiatives further catalyze our growth engine as we enter into 2024. Specifically, our growth algorithm continued to deliver mid-teens growth with full year adjusted EBITDA exceeding $438 million, representing 15% growth over the previous year. Despite the macro headwinds faced by our industry over the past four years, including the inflationary impact on labor and supply costs and the global pandemic, the company has grown adjusted EBITDA at a compound annual growth rate of over 14% per annum and expanded margins by 210 basis points. These headwinds have slowly abated throughout 2023.