Symbion (NASDAQ:SMBI)
Historical Stock Chart
From Jun 2019 to Jun 2024
Reissuing release dated April 26, 2006 to correct ticker
symbol for searching purposes.
The release reads:
SYMBION, INC. ANNOUNCES FIRST QUARTER RESULTS
Symbion, Inc. (NASDAQ/NM:SMBI):
Highlights for First Quarter 2006:
-- Revenues increased 17%;
-- Earnings per diluted share were $0.21, after a $0.03 impact
related to non-cash stock option compensation expense,
compared with $0.20 for the first quarter of 2005; and
-- The Company announces acquisition of 2 facilities.
Symbion, Inc. (NASDAQ/NM:SMBI), an owner and operator of short
stay surgery centers, announced today results for the first quarter
ended March 31, 2006.
For the first quarter ended March 31, 2006, revenues increased 17%
to $72.8 million compared with $62.2 million for the first quarter
ended March 31, 2005. Net income for the first quarter of 2006
increased 5% to $4.6 million compared with $4.4 million for the first
quarter of 2005. Net income of $4.6 million is after the impact of
$644,000 of non-cash stock option compensation expense recorded in
accordance with the Company's adoption of Statement of Financial
Accounting Standards ("SFAS") No. 123(R), "Share-Based Payment." The
Company adopted SFAS No. 123(R) on January 1, 2006, therefore no
expense was recorded during 2005 related to the Company's non-cash
stock option compensation. Earnings per diluted share for the first
quarter of 2006 increased $0.01 to $0.21, after the impact of $0.03
per diluted share related to the Company's non-cash stock option
compensation, compared with $0.20 for the first quarter of 2005. In
addition, the first quarter results also reflect a gain of $0.01 per
diluted share related to a litigation settlement and insurance
proceeds related to the hurricanes that affected the Company during
the third quarter of 2005. EBITDA increased 12% to $12.7 million for
the first quarter of 2006, after $1.1 million related to the Company's
non-cash stock option compensation expense, compared with $11.3
million for the first quarter of 2005.
Same store net patient service revenues for the first quarter of
2006 increased 5% compared with the same period in 2005. At March 31,
2006, the Company's outstanding indebtedness was $110.0 million with a
ratio of debt to total capitalization of 29%.
Commenting on the first quarter results, Richard E. Francis, Jr.,
chairman and chief executive officer of Symbion, said, "The first
quarter results met our expectations and put us on target to achieve
our earnings per share targets for full year 2006. We continue to
integrate recent acquisitions into our system, and we are focused on
adding new services that will drive organic growth. We are excited
about 2006 and believe that the Company is on track for another
outstanding year."
The Company confirmed its guidance for 2006 of revenues in the
range of $300 million to $305 million and updated its earnings per
diluted share guidance to a range of $0.88 to $0.91 after reflecting
the estimated expense of $0.11 per diluted share from the Company's
implementation on January 1, 2006, of SFAS No. 123(R). The Company
continues to anticipate same store net patient service revenue growth
of 5% to 8% over 2005. The Company's guidance does not include the
impact from 2006 acquisitions.
On March 1, 2006, the Company acquired a majority interest and
consolidating position in Cypress Surgery Center, LLC, a
multi-specialty ambulatory surgery center located in Wichita, Kansas.
Cypress Surgery Center, with six operating rooms and two special
procedure rooms, began operations in July 2000. On April 1, 2006, the
Company acquired a majority interest and consolidating position in The
Center for Special Surgery, LLC, a multi-specialty ambulatory surgery
center located in Greenville, South Carolina. The Center for Special
Surgery, LLC began operations in September 2002 and includes two
operating rooms and one minor procedure room.
In closing, Mr. Francis added, "We continue to evaluate potential
acquisitions and de novo opportunities in what we consider to be a
very active pipeline. There are ample opportunities to allow us to be
very selective and achieve our 2006 development goals of three to four
acquisitions and three to four de novos. We are very pleased with our
development progress in 2006."
The live broadcast of Symbion's first quarter 2006 conference call
will begin at 10:00 a.m. Eastern Time on April 27, 2006. An online
replay of the call will be available for 30 days following the
conclusion of the live broadcast. A link for these events can be found
on the Company's website at www.symbion.com or at www.earnings.com.
As of April 26, 2006, the Company owned and operated a network of
62 short stay surgery centers in 23 states, including the Company's
April 1, 2006, acquisition of the surgery center located in
Greenville, South Carolina. Symbion, Inc., is headquartered in
Nashville, Tennessee. The Company's surgery centers provide
non-emergency surgical procedures across many specialties.
This press release contains forward-looking statements based on
management's current expectations and projections about future events
and trends that they believe may affect the Company's financial
condition, results of operations, business strategy and financial
needs. The words "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "may," "plan," "will" and similar expressions are
generally intended to identify forward-looking statements. These
statements, including those regarding the Company's growth and
continued success, have been included in reliance on the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These statements involve risks, uncertainties and other factors that
may cause actual results to differ from the expectations expressed in
the statements. Many of these factors are beyond the ability of the
Company to control or predict. These factors include, without
limitation: (i) the Company's dependence on payments from third-party
payors, including government health care programs and managed care
organizations; (ii) the Company's ability to acquire and develop
additional surgery centers on favorable terms; (iii) numerous business
risks in acquiring and developing additional surgery centers,
including potential difficulties in operating and integrating such
surgery centers; (iv) efforts to regulate the construction,
acquisition or expansion of health care facilities; (v) the risk that
the Company's revenues and profitability could be adversely affected
if it fails to attract and maintain good relationships with the
physicians who use its facilities; (vi) the Company's ability to
comply with applicable laws and regulations, including health care
regulations, corporate governance laws and financial reporting
standards; (vii) risks related to the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 and future legislation,
which could restrict the Company's ability to operate its facilities
licensed as hospitals and could adversely impact its reimbursement
revenues; (viii) the risk of changes to physician self-referral laws
that may require the Company to restructure some of its relationships,
which could result in a significant loss of revenues and divert other
resources; (ix) the Company's significant indebtedness; (x) the
intense competition for physicians, strategic relationships,
acquisitions and managed care contracts, which may result in a decline
in the Company's revenues, profitability and market share; (xi) the
geographic concentration of the Company's operations, which makes the
Company particularly sensitive to regulatory, economic and other
conditions in certain states; (xii) the Company's dependence on its
senior management; (xiii) the Company's ability to enhance operating
efficiencies at its surgery centers; and (xiv) other risks and
uncertainties detailed from time to time in the Company's filings with
the Securities and Exchange Commission. In light of the significant
uncertainties inherent in the forward-looking statements contained in
this press release, you should not place undue reliance on them. The
Company undertakes no obligation to update any forward-looking
statements or to make any other forward-looking statements, whether as
a result of new information, future events or otherwise.
-0-
*T
SYMBION, INC.
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
------------------
2006 2005
-------- --------
Revenues $72,769 $62,179
Operating expenses:
Salaries and benefits, after $79
and $0, respectively, of non-cash
stock based compensation expense 19,506 16,008
Supplies 13,926 11,453
Professional and medical fees 3,364 3,319
Rent and lease expense 4,717 3,830
Other operating expenses 4,920 4,588
-------- --------
Cost of revenues 46,433 39,198
General and administrative expense,
after $1,013 and $0, respectively,
of non-cash stock based
compensation expense 6,538 5,402
Depreciation and amortization 3,745 3,146
Provision for doubtful accounts 643 714
Income on equity investments (245) (284)
Impairment and loss on disposal
of long-lived assets 39 109
Gain on sale of long-lived assets -- (241)
Proceeds from insurance settlement (410) --
Proceeds from litigation settlement (588) --
-------- --------
Total operating expenses 56,155 48,044
-------- --------
Operating income 16,614 14,135
Minority interests in income
of consolidated subsidiaries (7,675) (5,969)
Interest expense, net (1,497) (1,034)
-------- --------
Income before income taxes 7,442 7,132
Provision for income taxes 2,865 2,746
-------- --------
Net income $4,577 $4,386
======== ========
Net income per share:
Basic $0.21 $0.21
======== ========
Diluted $0.21 $0.20
======== ========
Weighted average number of common shares
outstanding and common equivalent shares:
Basic 21,461 21,119
Diluted 22,135 21,775
SYMBION, INC.
Condensed Consolidated Balance Sheets
(dollars in thousands)
March 31, Dec. 31,
2006 2005
-------- --------
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $27,040 $28,434
Accounts receivable, less
allowance for doubtful accounts 33,432 32,487
Inventories 7,802 7,572
Prepaid expenses and other current assets 9,264 8,002
-------- --------
Total current assets 77,538 76,495
Property and equipment, net of
accumulated depreciation 74,169 73,410
Goodwill 280,714 268,312
Other intangible assets, net 576 650
Investments in and advances to affiliates 13,829 13,770
Other assets 4,280 3,741
-------- --------
Total assets $451,106 $436,378
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,997 $6,727
Accrued payroll and benefits 6,493 8,680
Other accrued expenses 12,314 10,957
Current maturities of long-term debt 1,306 1,347
-------- --------
Total current liabilities 25,110 27,711
Long-term debt, less current maturities 108,687 101,969
Other liabilities 20,665 17,845
Minority interests 30,082 28,795
Total stockholders' equity 266,562 260,058
-------- --------
Total liabilities and stockholders' equity $451,106 $436,378
======== ========
SYMBION, INC.
Supplemental Operating Data
(dollars in thousands, except per case and per share data)
Three Months Ended
March 31,
------------------
2006 2005
-------- --------
Same store statistics (1):
Cases 56,780 54,985
Cases percentage growth 3.3% N/A
Net patient service revenue per case $1,193 $1,169
Net patient service revenue
per case percentage growth 2.1% N/A
Number of same store surgery centers 44 N/A
Consolidated Statistics:
Cases 56,456 50,413
Cases percentage growth 12.0% N/A
Net patient service revenue per case $1,219 $1,171
Net patient service revenue
per case percentage growth 4.0% N/A
Number of surgery centers operated
as of end of period (2) 61 56
Number of states in which the Company
operates surgery centers 22 21
Revenues:
Net patient service revenues $68,811 $59,057
Physician service revenues 1,140 1,044
Other service revenues 2,818 2,078
-------- --------
Total revenues $72,769 $62,179
======== ========
Cash flow information:
Net cash provided by operating activities $6,734 $6,708
Net cash used in investing activities (15,050) (8,439)
Net cash provided by financing activities 6,922 2,134
Other information:
EBITDA,(3) after $1,092 and $0, respectively,
of non-cash stock compensation expense $12,684 $11,312
(1) For purposes of this release, the Company defines same store
facilities as those centers that the Company owned an interest in
and managed throughout both of the respective periods shown or
those centers opened in a market in which the Company already has
a presence. Same store facilities include centers that the
Company does not consolidate for financial reporting purposes.
(2) The data for 2006 and 2005 includes nine surgery centers that the
Company managed but in which it did not have an ownership
interest.
(3) When the Company uses the term "EBITDA", it is referring to net
income plus (a) income tax expense, (b) interest expense, net and
(c) depreciation and amortization. The Company's calculation of
EBITDA is after minority interests expense. Minority interests
expense represents the interests of third parties, such as
physicians, hospitals and other health care providers, that own
interests in surgery centers that we consolidate for financial
reporting purposes. The Company's operating strategy involves
sharing ownership of its surgery centers with physicians,
physician groups and hospitals, and these third parties own an
interest in all but one of the Company's centers. The Company
believes that it is helpful to investors to present EBITDA as
defined above because it excludes the portion of net income
attributable to these third-party interests.
The Company uses EBITDA as a measure of liquidity. The Company
has included it because the Company believes that it provides
investors with additional information about the Company's ability
to incur and service debt and make capital expenditures. The
Company also uses EBITDA, with some variation in the calculation,
to determine compliance with some of the covenants under the
Company's senior credit facility, as well as to determine the
interest rate and commitment fee payable under the senior credit
facility. EBITDA is not a measurement of financial performance or
liquidity under generally accepted accounting principles. It
should not be considered in isolation or as a substitute for net
income, operating income, cash flows from operating, investing or
financing activities, or any other measure calculated in
accordance with generally accepted accounting principles. The
items excluded from EBITDA are significant components in
understanding and evaluating financial performance and liquidity.
The Company's calculation of EBITDA is not comparable to the
EBITDA measure the Company has used in certain prior periods but
is consistent with the measure EBITDA less minority interests
previously reported. The Company's calculation of EBITDA may not
be comparable to similarly titled measures reported by other
companies.
The following table reconciles EBITDA to net cash provided by
operating activities:
Three Months Ended
(in thousands) March 31,
------------------
2006 2005
-------- --------
EBITDA $12,684 $11,312
Depreciation and amortization (3,745) (3,146)
Interest expense, net (1,497) (1,034)
Income taxes (2,865) (2,746)
-------- --------
Net income 4,577 4,386
Depreciation and amortization 3,745 3,146
Non-cash compensation expense 1,092 --
Non-cash gains and losses (711) (132)
Minority interests in income
of consolidated subsidiaries 7,675 5,969
Income taxes 2,865 2,746
Distributions to minority partners (6,072) (4,734)
Income on equity investments (245) (284)
Provision for doubtful accounts 643 714
Changes in operating assets and
liabilities, net of effects of
acquisitions and dispositions:
Accounts receivable (661) (415)
Other assets and liabilities (6,174) (4,688)
-------- --------
Net cash provided by operating activities $6,734 $6,708
======== ========
*T