Symbion (NASDAQ:SMBI)
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Symbion, Inc. (NASDAQ:SMBI), an owner and operator of short stay surgery
facilities, announced today results for the third quarter and nine
months ended September 30, 2006.
For the third quarter ended September 30, 2006, revenues increased 12%
to $73.8 million compared with $65.8 million for the third quarter ended
September 30, 2005. Net income for the third quarter of 2006 decreased
to $3.8 million compared with $4.2 million for the third quarter of
2005. Net income of $3.8 million includes the impact of $527,000 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.”
Income per diluted share from continuing operations for the third
quarter of 2006 remained constant at $0.19, including the impact of
$0.02 per diluted share related to the Company’s
non-cash stock option compensation expense, compared with income per
diluted share from continuing operations of $0.19 for the third quarter
of 2005. 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. EBITDA increased 4% to $12.1 million
for the third quarter of 2006, including $857,000 related to the Company’s
non-cash stock option compensation expense, compared with $11.6 million
for the third quarter of 2005. Same store net patient service revenues
for the third quarter of 2006 increased 9% compared with the same period
in 2005. At September 30, 2006, the Company’s
outstanding indebtedness was $116.5 million with a ratio of debt to
total capitalization of 29%.
For the nine months ended September 30, 2006, revenues increased 17% to
$223.7 million compared with $191.1 million for the similar period in
2005. Net income for the year-to-date period in 2006 increased 7% to
$14.3 million compared with $13.4 million for the same period in 2005.
Net income of $14.3 million includes the impact of $1.8 million of
non-cash stock option compensation expense. Income per diluted share
from continuing operations for the nine months ended September 30, 2006,
increased 10% to $0.67, including the impact of $0.08 per diluted share
related to the Company’s non-cash stock
option compensation expense, compared with $0.61 from continuing
operations for the nine months ended September 30, 2005. The $0.67
income per diluted share from continuing operations includes $0.04
related to non-recurring gains recorded during the first and second
quarters and $0.01 related to an adjustment to depreciation expense
based on a change in depreciation estimates at certain of the Company’s
newly acquired surgery centers during the second quarter. EBITDA
increased 13% to $39.3 million for the nine-month period in 2006,
including $3.0 million related to the Company’s
non-cash stock option compensation expense, compared with $34.7 million
for the same period in 2005. Same store net patient service revenue for
the year-to-date period in 2006 increased 7% compared with the same
period in 2005.
Commenting on the third quarter results, Richard E. Francis, Jr.,
chairman and chief executive officer of Symbion, said, “Obviously,
the third quarter was a challenging one. Revenue was impacted by lower
volumes in the quarter and lower than expected net revenue per case.
This variance was driven primarily by certain managed care pressures,
which combined with case mix changes with lower net revenue per case and
higher supply costs to negatively affect our earnings. Given our third
quarter results, we are adjusting our previously announced income per
diluted share guidance for 2006 to a range of $0.83 to $0.86 from
continuing operations, excluding one-time, non-recurring items as
discussed above. We are also adjusting our revenue guidance for 2006 to
a range of $300.0 million to $305.0 million.”
Mr. Francis continued, “We have analyzed the
third quarter extensively in an effort to address these issues, leading
to what we believe will be both immediate and long-term positive results.”
The Company also announced the acquisition of a majority interest in the
Animas Surgical Hospital, LLC, a multispecialty surgical hospital in
Durango, Colorado, and the acquisition of a minority interest in a de
novo multispecialty surgery center under construction in Novi,
Michigan. Also, during the quarter, the Company initiated the
disposition of one marginally profitable center, which was completed in
October and has been classified as discontinued operations throughout
this release.
Mr. Francis commented, “We are very pleased
to announce these successful development results for Symbion. We regard
the acquisition of Animas Surgical Hospital to be consistent with our
mission as a short stay surgical provider and view it as an important
step in our growth and strategic direction. We expect this acquisition
to not only provide significant 2007 revenue expansion, but also
position the Company quite well for what we expect to be an attractive
market for future development opportunities. The Novi, Michigan, de
novo represents a unique opportunity for the Company. This
multispecialty ASC, scheduled for a mid-2007 opening, has 29 physician
partners and is expected to have four operating suites and three special
procedure rooms.”
The live broadcast of Symbion’s third quarter
2006 conference call will begin at 10:00 a.m. Eastern Time on October
26, 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.
Symbion, Inc., headquartered in Nashville, Tennessee, owns and operates
a network of 61 short stay surgery facilities in 23 states. The Company’s
facilities 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 management believes 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 pending or future heightened regulation of specialty
hospitals 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 to
control costs as the volume of cases performed at the Company’s
facilities changes; (xiv) efforts by certain states to reduce payments
from workers’ compensation payors for
services provided to injured workers; (xv) risks associated with the
practice of some of the Company’s centers in
billing for services “out-of-network”,
including the risk that out-of-network payments by some third-party
payors may be reduced or eliminated; and (xvi) 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.
SYMBION, INC.
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
Revenues
$73,803
$65,782
$223,688
$191,051
Operating expenses:
Salaries and benefits, includes non-cash stock option compensation
expense
19,947
17,486
59,554
48,800
Supplies
14,738
11,857
43,771
34,755
Professional and medical fees
4,454
3,458
12,110
10,078
Rent and lease expense
4,809
4,402
14,239
12,136
Other operating expenses
5,534
4,412
15,860
13,813
Cost of revenues
49,482
41,615
145,534
119,582
General and administrative expense, includes non-cash stock option
compensation expense
5,018
5,069
18,062
16,377
Depreciation and amortization
3,587
3,315
10,157
9,488
Provision for doubtful accounts
1,438
1,350
2,891
3,134
Income on equity investments
(511)
(233)
(1,483)
(842)
Impairment and loss on disposal of long-lived assets
137
664
705
1,520
Gain on sale of long-lived assets
(81)
(758)
(1,733)
(1,785)
Proceeds from insurance settlement
-
-
(410)
-
Proceeds from litigation settlement
-
-
(588)
-
Total operating expenses
59,070
51,022
173,135
147,474
Operating income
14,733
14,760
50,553
43,577
Minority interests in income of consolidated subsidiaries
(6,211)
(6,462)
(21,437)
(18,347)
Interest expense, net
(1,790)
(1,442)
(5,110)
(3,362)
Income from continuing operations before income taxes
6,732
6,856
24,006
21,868
Provision for income taxes
2,589
2,640
9,238
8,419
Income from continuing operations
4,143
4,216
14,768
13,449
Loss from discontinued operations, net of tax
(328)
(34)
(474)
(1)
Net income
$3,815
$4,182
$14,294
$13,448
Income per share - continuing operations:
Basic
$0.19
$0.20
$0.69
$0.63
Diluted
$0.19
$0.19
$0.67
$0.61
Net income per share:
Basic
$0.18
$0.20
$0.66
$0.63
Diluted
$0.17
$0.19
$0.65
$0.61
Weighted average number of common shares outstanding and common
equivalent shares:
Basic
21,582
21,321
21,517
21,237
Diluted
21,969
22,075
21,944
21,929
SYMBION, INC.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
Sept. 30,
Dec. 31,
2006
2005
ASSETS
Current assets:
Cash and cash equivalents
$ 30,058
$ 28,394
Accounts receivable, less allowance for doubtful accounts
34,072
32,391
Inventories
7,963
7,484
Prepaid expenses and other current assets
11,752
7,959
Current assets of discontinued operations
-
267
Total current assets
83,845
76,495
Property and equipment, net of accumulated depreciation
76,085
72,798
Goodwill
293,897
268,312
Other intangible assets, net
-
650
Investments in and advances to affiliates
13,769
13,770
Other assets
3,203
3,740
Long-term assets of discontinued operations
-
613
Total assets
$ 470,799
$ 436,378
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 4,545
$ 6,577
Accrued payroll and benefits
7,003
8,623
Other accrued expenses
12,061
10,846
Current maturities of long-term debt
1,298
1,347
Current liabilities of discontinued operations
-
318
Total current liabilities
24,907
27,711
Long-term debt, less current maturities
115,188
101,969
Other liabilities
19,852
17,845
Long-term liabilities of discontinued operations
-
(39)
Minority interests
31,125
28,834
Total stockholders' equity
279,727
260,058
Total liabilities and stockholders' equity
$ 470,799
$ 436,378
SYMBION, INC.
Supplemental Operating Data
(dollars in thousands, except per case and per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
Same store statistics (1):
Cases
57,909
53,930
172,664
163,543
Cases percentage growth
7.4%
N/A
5.6%
N/A
Net patient service revenue per case
$ 1,191
$ 1,177
$ 1,193
$ 1,173
Net patient service revenue per case percentage growth
1.2%
N/A
1.7%
N/A
Number of same store surgery centers
46
N/A
43
N/A
Consolidated statistics - continuing operations:
Cases
57,985
51,945
173,959
152,959
Cases percentage growth
11.6%
N/A
13.7%
N/A
Net patient service revenue per case
$ 1,208
$ 1,206
$ 1,217
$ 1,188
Net patient service revenue per case percentage growth
0.2%
N/A
2.4%
N/A
Number of surgery centers operated as of end of period (2)
61
58
61
58
Number of states in which the Company operates surgery centers
23
22
23
22
Revenues - continuing operations:
Net patient service revenues
$ 70,040
$ 62,623
$ 211,701
$ 181,726
Physician service revenues
1,117
1,091
3,377
3,235
Other service revenues
2,646
2,068
8,610
6,090
Total revenues
$ 73,803
$ 65,782
$ 223,688
$ 191,051
Cash flow information - continuing operations:
Net cash provided by operating activities
$ 4,846
$ 11,324
$ 20,898
$ 27,217
Net cash used in investing activities
(2,315)
(49,115)
(34,841)
(61,805)
Net cash provided by (used in) financing activities
(5,914)
39,555
15,222
38,204
Other information:
EBITDA, (3) includes non-cash stock option compensation expense
$ 12,109
$ 11,613
$ 39,273
$ 34,718
(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 each of the
respective periods shown. The Company has also included the
results of a surgery center in which it owns an interest that
opened during the first quarter of 2006 within the market served
by another surgery center in which the Company owns an interest.
The Company has not included the surgery center that is reported
as a discontinued operation. The definition of same store
facilities includes non-consolidated centers and allows for
comparability to other companies in the industry.
SYMBION, INC.
Supplemental Operating Data (Continued)
(2) This data includes nine surgery
centers that the Company managed but in which it did not have an
ownership interest.
(3) The following table reconciles EBITDA
to net cash provided by operating activities –
continuing operations:
Three Months Ended
Nine Months Ended
(in thousands)
September 30,
September 30,
2006
2005
2006
2005
EBITDA
$ 12,109
$ 11,613
$ 39,273
$ 34,718
Depreciation and amortization
(3,587)
(3,315)
(10,157)
(9,488)
Interest expense, net
(1,790)
(1,442)
(5,110)
(3,362)
Income taxes
(2,589)
(2,640)
(9,238)
(8,419)
Loss on discontinued operations, net of taxes
(328)
(34)
(474)
(1)
Net income
3,815
4,182
14,294
13,448
Depreciation and amortization
3,587
3,315
10,157
9,488
Non-cash compensation expense
890
-
3,064
-
Non-cash gains and losses
56
(94)
(1,028)
(265)
Minority interests in income
of consolidated subsidiaries
6,211
6,462
21,437
18,347
Income taxes
2,589
2,640
9,238
8,419
Distributions to minority partners
(6,306)
(5,689)
(19,096)
(15,645)
Income on equity investments
(511)
(233)
(1,483)
(842)
Provision for doubtful accounts
1,438
1,350
2,891
3,134
Changes in operating assets and liabilities, net of effects of
acquisitions and dispositions:
Accounts receivable
(311)
998
(2,994)
(1,159)
Other assets and liabilities
(6,612)
(1,607)
(15,582)
(7,708)
Net cash provided by operating activities - continuing operations
$ 4,846
$ 11,324
$ 20,898
$ 27,217
Symbion, Inc. (NASDAQ:SMBI), an owner and operator of short stay
surgery facilities, announced today results for the third quarter and
nine months ended September 30, 2006.
For the third quarter ended September 30, 2006, revenues increased
12% to $73.8 million compared with $65.8 million for the third quarter
ended September 30, 2005. Net income for the third quarter of 2006
decreased to $3.8 million compared with $4.2 million for the third
quarter of 2005. Net income of $3.8 million includes the impact of
$527,000 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."
Income per diluted share from continuing operations for the third
quarter of 2006 remained constant at $0.19, including the impact of
$0.02 per diluted share related to the Company's non-cash stock option
compensation expense, compared with income per diluted share from
continuing operations of $0.19 for the third quarter of 2005. 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. EBITDA increased 4% to $12.1 million for
the third quarter of 2006, including $857,000 related to the Company's
non-cash stock option compensation expense, compared with $11.6
million for the third quarter of 2005. Same store net patient service
revenues for the third quarter of 2006 increased 9% compared with the
same period in 2005. At September 30, 2006, the Company's outstanding
indebtedness was $116.5 million with a ratio of debt to total
capitalization of 29%.
For the nine months ended September 30, 2006, revenues increased
17% to $223.7 million compared with $191.1 million for the similar
period in 2005. Net income for the year-to-date period in 2006
increased 7% to $14.3 million compared with $13.4 million for the same
period in 2005. Net income of $14.3 million includes the impact of
$1.8 million of non-cash stock option compensation expense. Income per
diluted share from continuing operations for the nine months ended
September 30, 2006, increased 10% to $0.67, including the impact of
$0.08 per diluted share related to the Company's non-cash stock option
compensation expense, compared with $0.61 from continuing operations
for the nine months ended September 30, 2005. The $0.67 income per
diluted share from continuing operations includes $0.04 related to
non-recurring gains recorded during the first and second quarters and
$0.01 related to an adjustment to depreciation expense based on a
change in depreciation estimates at certain of the Company's newly
acquired surgery centers during the second quarter. EBITDA increased
13% to $39.3 million for the nine-month period in 2006, including $3.0
million related to the Company's non-cash stock option compensation
expense, compared with $34.7 million for the same period in 2005. Same
store net patient service revenue for the year-to-date period in 2006
increased 7% compared with the same period in 2005.
Commenting on the third quarter results, Richard E. Francis, Jr.,
chairman and chief executive officer of Symbion, said, "Obviously, the
third quarter was a challenging one. Revenue was impacted by lower
volumes in the quarter and lower than expected net revenue per case.
This variance was driven primarily by certain managed care pressures,
which combined with case mix changes with lower net revenue per case
and higher supply costs to negatively affect our earnings. Given our
third quarter results, we are adjusting our previously announced
income per diluted share guidance for 2006 to a range of $0.83 to
$0.86 from continuing operations, excluding one-time, non-recurring
items as discussed above. We are also adjusting our revenue guidance
for 2006 to a range of $300.0 million to $305.0 million."
Mr. Francis continued, "We have analyzed the third quarter
extensively in an effort to address these issues, leading to what we
believe will be both immediate and long-term positive results."
The Company also announced the acquisition of a majority interest
in the Animas Surgical Hospital, LLC, a multispecialty surgical
hospital in Durango, Colorado, and the acquisition of a minority
interest in a de novo multispecialty surgery center under construction
in Novi, Michigan. Also, during the quarter, the Company initiated the
disposition of one marginally profitable center, which was completed
in October and has been classified as discontinued operations
throughout this release.
Mr. Francis commented, "We are very pleased to announce these
successful development results for Symbion. We regard the acquisition
of Animas Surgical Hospital to be consistent with our mission as a
short stay surgical provider and view it as an important step in our
growth and strategic direction. We expect this acquisition to not only
provide significant 2007 revenue expansion, but also position the
Company quite well for what we expect to be an attractive market for
future development opportunities. The Novi, Michigan, de novo
represents a unique opportunity for the Company. This multispecialty
ASC, scheduled for a mid-2007 opening, has 29 physician partners and
is expected to have four operating suites and three special procedure
rooms."
The live broadcast of Symbion's third quarter 2006 conference call
will begin at 10:00 a.m. Eastern Time on October 26, 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.
Symbion, Inc., headquartered in Nashville, Tennessee, owns and
operates a network of 61 short stay surgery facilities in 23 states.
The Company's facilities 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 management believes 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 pending or future heightened
regulation of specialty hospitals 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 to control costs as the volume of cases performed
at the Company's facilities changes; (xiv) efforts by certain states
to reduce payments from workers' compensation payors for services
provided to injured workers; (xv) risks associated with the practice
of some of the Company's centers in billing for services
"out-of-network", including the risk that out-of-network payments by
some third-party payors may be reduced or eliminated; and (xvi) 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 Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Revenues $73,803 $65,782 $223,688 $191,051
Operating expenses:
Salaries and benefits,
includes non-cash stock
option compensation expense 19,947 17,486 59,554 48,800
Supplies 14,738 11,857 43,771 34,755
Professional and medical
fees 4,454 3,458 12,110 10,078
Rent and lease expense 4,809 4,402 14,239 12,136
Other operating expenses 5,534 4,412 15,860 13,813
--------- -------- --------- ---------
Cost of revenues 49,482 41,615 145,534 119,582
General and administrative
expense, includes non-cash
stock option compensation
expense 5,018 5,069 18,062 16,377
Depreciation and
amortization 3,587 3,315 10,157 9,488
Provision for doubtful
accounts 1,438 1,350 2,891 3,134
Income on equity investments (511) (233) (1,483) (842)
Impairment and loss on
disposal of long-lived
assets 137 664 705 1,520
Gain on sale of long-lived
assets (81) (758) (1,733) (1,785)
Proceeds from insurance
settlement - - (410) -
Proceeds from litigation
settlement - - (588) -
--------- -------- --------- ---------
Total operating expenses 59,070 51,022 173,135 147,474
--------- -------- --------- ---------
Operating income 14,733 14,760 50,553 43,577
Minority interests in income
of consolidated
subsidiaries (6,211) (6,462) (21,437) (18,347)
Interest expense, net (1,790) (1,442) (5,110) (3,362)
--------- -------- --------- ---------
Income from continuing
operations before income taxes 6,732 6,856 24,006 21,868
Provision for income taxes 2,589 2,640 9,238 8,419
--------- -------- --------- ---------
Income from continuing
operations 4,143 4,216 14,768 13,449
Loss from discontinued
operations, net of tax (328) (34) (474) (1)
--------- -------- --------- ---------
Net income $3,815 $4,182 $14,294 $13,448
========= ======== ========= =========
Income per share - continuing
operations:
Basic $0.19 $0.20 $0.69 $0.63
========= ======== ========= =========
Diluted $0.19 $0.19 $0.67 $0.61
========= ======== ========= =========
Net income per share:
Basic $0.18 $0.20 $0.66 $0.63
========= ======== ========= =========
Diluted $0.17 $0.19 $0.65 $0.61
========= ======== ========= =========
Weighted average number of
common shares outstanding and
common equivalent shares:
Basic 21,582 21,321 21,517 21,237
Diluted 21,969 22,075 21,944 21,929
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SYMBION, INC.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
Sept. 30, Dec. 31,
2006 2005
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $30,058 $28,394
Accounts receivable, less allowance for
doubtful accounts 34,072 32,391
Inventories 7,963 7,484
Prepaid expenses and other current assets 11,752 7,959
Current assets of discontinued operations - 267
--------- ---------
Total current assets 83,845 76,495
Property and equipment, net of accumulated
depreciation 76,085 72,798
Goodwill 293,897 268,312
Other intangible assets, net - 650
Investments in and advances to affiliates 13,769 13,770
Other assets 3,203 3,740
Long-term assets of discontinued operations - 613
--------- ---------
Total assets $470,799 $436,378
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,545 $6,577
Accrued payroll and benefits 7,003 8,623
Other accrued expenses 12,061 10,846
Current maturities of long-term debt 1,298 1,347
Current liabilities of discontinued operations - 318
--------- ---------
Total current liabilities 24,907 27,711
Long-term debt, less current maturities 115,188 101,969
Other liabilities 19,852 17,845
Long-term liabilities of discontinued operations - (39)
Minority interests 31,125 28,834
Total stockholders' equity 279,727 260,058
--------- ---------
Total liabilities and stockholders' equity $470,799 $436,378
========= =========
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SYMBION, INC.
Supplemental Operating Data
(dollars in thousands, except per case and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Same store statistics (1):
Cases 57,909 53,930 172,664 163,543
Cases percentage growth 7.4% N/A 5.6% N/A
Net patient service revenue per
case $1,191 $1,177 $1,193 $1,173
Net patient service revenue per
case percentage growth 1.2% N/A 1.7% N/A
Number of same store surgery
centers 46 N/A 43 N/A
Consolidated statistics -
continuing operations:
Cases 57,985 51,945 173,959 152,959
Cases percentage growth 11.6% N/A 13.7% N/A
Net patient service revenue per
case $1,208 $1,206 $1,217 $1,188
Net patient service revenue per
case percentage growth 0.2% N/A 2.4% N/A
Number of surgery centers
operated as of end of period
(2) 61 58 61 58
Number of states in which the
Company operates surgery
centers 23 22 23 22
Revenues - continuing
operations:
Net patient service revenues $70,040 $62,623 $211,701 $181,726
Physician service revenues 1,117 1,091 3,377 3,235
Other service revenues 2,646 2,068 8,610 6,090
--------- -------- --------- ---------
Total revenues $73,803 $65,782 $223,688 $191,051
========= ======== ========= =========
Cash flow information -
continuing operations:
Net cash provided by operating
activities $4,846 $11,324 $20,898 $27,217
Net cash used in investing
activities (2,315) (49,115) (34,841) (61,805)
Net cash provided by (used in)
financing activities (5,914) 39,555 15,222 38,204
Other information:
EBITDA, (3) includes non-cash
stock option compensation
expense $12,109 $11,613 $39,273 $34,718
(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 each of the respective periods shown. The Company
has also included the results of a surgery center in which it owns an
interest that opened during the first quarter of 2006 within the
market served by another surgery center in which the Company owns an
interest. The Company has not included the surgery center that is
reported as a discontinued operation. The definition of same store
facilities includes non-consolidated centers and allows for
comparability to other companies in the industry.
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SYMBION, INC.
Supplemental Operating Data (Continued)
(2) This data includes nine surgery centers that the Company managed
but in which it did not have an ownership interest.
(3) The following table reconciles EBITDA to net cash provided by
operating activities - continuing operations:
Three Months Ended Nine Months Ended
(in thousands) September 30, September 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------
EBITDA $12,109 $11,613 $39,273 $34,718
Depreciation and amortization (3,587) (3,315) (10,157) (9,488)
Interest expense, net (1,790) (1,442) (5,110) (3,362)
Income taxes (2,589) (2,640) (9,238) (8,419)
Loss on discontinued operations,
net of taxes (328) (34) (474) (1)
--------- -------- -------- --------
Net income 3,815 4,182 14,294 13,448
Depreciation and amortization 3,587 3,315 10,157 9,488
Non-cash compensation expense 890 - 3,064 -
Non-cash gains and losses 56 (94) (1,028) (265)
Minority interests in income
of consolidated
subsidiaries 6,211 6,462 21,437 18,347
Income taxes 2,589 2,640 9,238 8,419
Distributions to minority
partners (6,306) (5,689) (19,096) (15,645)
Income on equity investments (511) (233) (1,483) (842)
Provision for doubtful accounts 1,438 1,350 2,891 3,134
Changes in operating assets and
liabilities, net of effects of
acquisitions and dispositions:
Accounts receivable (311) 998 (2,994) (1,159)
Other assets and
liabilities (6,612) (1,607) (15,582) (7,708)
--------- -------- -------- --------
Net cash provided by operating
activities - continuing
operations $4,846 $11,324 $20,898 $27,217
========= ======== ======== ========
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