SRG - According to this PR, they expect to do .19 to .22 cents per share in earnings this year. They were also declared the 8th fastest growing company in Houston. Price is now at a bottom.
SurgiCare Reports Record First Quarter Revenues and Earnings
Company Increases Fiscal 2002 Guidance from Previous Levels
HOUSTON, May 14 /PRNewswire-FirstCall/ -- SurgiCare, Inc. (Amex: SRG - News), a Houston-based Ambulatory Surgical Center (ASC) company, reported record revenues and earnings for its first quarter ended March 31, 2002. The Company reported revenues of approximately $3.3 million, an increase of 3% versus the first quarter of 2001. The Company also posted earnings of $428,041 or $0.03 per diluted share, an increase of 17% versus $367,063 or $0.02 per diluted share for a comparable period last year. This is the first quarter where the Company had the same number of ASC's in operation as the comparable period a year earlier. SurgiCare reported its average revenue per procedure was $2,609, which represents an 11% increase from the same period in 2001.
"The results from this quarter clearly demonstrated the success of our business model," said Dr. David Blumfield, SurgiCare's Chairman and Co-Chief Executive Officer. "Our strategy is not only to partner with our physicians, but to improve operations by centralizing many of the back-office functions. We are now more confident than ever before that we can acquire, integrate and drive efficiencies out of these ASC's as we expand nationally. We believe that we will continue to organically increase revenues and earnings, while expanding nationally."
SurgiCare announced on April 11, 2002 that it has commitments that will allow it to acquire a 56% interest in the San Jacinto Surgery Center, L.P., located in San Jacinto, Texas. The acquisition will increase SurgiCare's ownership interest in the 24 doctor Surgery Center to 66% and will enable it to consolidate the revenues and earnings from the Center in its financial statements. The transaction is expected to close in the second quarter.
The company also announced that it had entered into a Letter of Intent to acquire closely-held Aspen Healthcare, Inc., a national health care consulting, development and management firm specializing in ambulatory surgery center joint-venture development, management and ownership. Aspen currently has ten ASC's under management contracts in nine states and has an additional eight under development in five states with management contracts. The company has four projects under development without management contracts. Aspen also has two consulting agreements with large hospital systems. Its clients under management had in excess of $47 million in net patient revenues last year. The transaction is expected to close in the second quarter.
Guidance
The company today increased its second quarter and 2002 fiscal year guidance. The company expects to report revenue for its second quarter of $3.5 million and earnings per share of $0.03. It announced today that it performed the highest volume of surgical procedures in April of any month since its inception. The company anticipates annual revenue of $19.7 to $21.7 million and earnings per diluted share of $0.19 to $0.22. The first quarter has historically been the slowest quarter for SurgiCare and the sector.
"Last year we made the necessary investments in infrastructure to support our national expansion," said Charles S. Cohen, SurgiCare's Co-Chief Executive Officer and Chief Operating Officer. "This has made it possible for us to pursue acquisitions such as Aspen Healthcare, which is likely to save us millions of dollars and several years in entering new markets throughout the country. We were not able to pursue such a transaction until we were confident that we had developed the systems to support this growth. Our results this quarter and the strong start to our second quarter demonstrate that we can increase revenues at existing ASC's while reducing costs. These economies of scale will only improve as we acquire more Centers."
The Company's will host a conference call and webcast at 4:30 p.m. ET. On the call Dr. David Blumfield, Chairman and Co-Chief Executive Officer and Charles S. Cohen, Co-Chief Executive Officer and other members of the executive management team will discuss the first quarter results and will be available to answer questions. Investors can also e-mail questions in advance of the call to Matt Henderson, CEOcast, Inc. at mhenderson@ceocast.com. The telephone number for the conference call is (800) 450-0788. The passcode for the call is SurgiCare. The conference call will be open to the public. Investors may also listen to the call via the Internet at 65.197.1.5 and then enter Conference ID 638606 and password SurgiCare or it will be available at http;//www.surgicareinc.com.
Surgicare, Inc.
Condensed and Consolidated
Statements of Operations
Three Months Ended
March 31,
2002 2001
Revenues 3,263,990 3,168,317
Operating Expenses
Direct surgical costs 369,710 584,166
Salaries, benefits and other
employee costs 319,221 338,544
General and
administrative expenses 1,111,594 960,618
Depreciation and
amortization 148,894 252,018
Total operating
expenses 1,949,419 2,135,346
Operating Income 1,314,571 1,032,971
Interest expense, net (224,083) (167,303)
Other 37,252 38,710
Income before minority
interest 1,127,740 904,378
Minority interest in earnings of
limited partnership (425,632) (302,319)
Income before income taxes 702,108 602,059
Income tax expense 274,067 234,996
Net Income available for common
stockholders 428,041 367,063
Basic earnings per share 0.03 0.02
Diluted earnings per share 0.03 0.02
About SurgiCare, Inc.
SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures that do not require hospitalization after the surgery. The ASCs are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. SurgiCare has assembled a team of highly qualified industry professionals that are equipped to effectively manage multiple ASCs, essentially cutting operational costs and increasing profit margins. For more information on SurgiCare, please visit the company's Website at surgicareinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains "forward-looking" information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SurgiCare, Inc. (the Company) to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's Annual Reports and other filings with the Securities and Exchange Commission. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof. |
