AMSG Amsurg Corp.

Increases 2015 Financial Guidance

AmSurg Corp. (NASDAQ: AMSG) today announced financial results for the third quarter ended September 30, 2015. The Company’s results for the quarter included:

• Growth in net revenues of 29% to $650.2 million from $502.4 million for the third quarter of 2014;
• Net earnings from continuing operations attributable to AmSurg common shareholders of $40.4 million. Adjusted net earnings increased 53% to $53.0 million from the third quarter of 2014;
• Net earnings per diluted share from continuing operations attributable to AmSurg common shareholders of $0.83 and 49% growth in adjusted net earnings per diluted share to $1.03; and
• Adjusted EBITDA of $133.2 million, up 39% from the third quarter of 2014.

See page 6 for a reconciliation of all GAAP and non-GAAP financial results.

“AmSurg continued to perform meaningfully better than we expected during the third quarter of 2015, resulting in our raising our financial guidance for the year for the third consecutive quarter,” said Christopher A. Holden, President and Chief Executive Officer of AmSurg. “Our strong results reflected outstanding organic growth for the quarter, with an acceleration in our Ambulatory Services same-center revenues for the third consecutive quarter and double-digit growth in Physician Services same-contract revenue growth for the second consecutive quarter.

“For the third quarter of 2015, Ambulatory Services produced same-center revenue growth of 6.6%, due primarily to improved reimbursement, increased volume and improved case mix. Physician Services produced same-contract revenue growth of 10.1%, driven by increased volume, improved reimbursement and higher acuity.

“In addition, the combination of AmSurg and Sheridan continued to be catalytic to our acquisition growth strategies in the third quarter. In a time of increasing industry integration and consolidation, this combination gives AmSurg a unique and nationally scaled platform that addresses strategically imperative needs of health systems as they focus on building integrated networks. The market reception for this platform continues to exceed our expectations.

“During the third quarter, Ambulatory Services purchased two ambulatory surgery centers (ASCs) and opened a de novo ASC. The division also entered into a new joint venture with a health system in California whereby we contributed two ASCs and the health system contributed a surgical hospital. In addition, subsequent to quarter end, Ambulatory Services acquired two ASCs. As previously announced, Physician Services purchased two anesthesia practices during the third quarter, and today we announced the acquisition of Valley Anesthesia in Phoenix, Arizona, one of the largest independent anesthesiology practices in the country.”

Ambulatory Services

Net revenues for Ambulatory Services grew 12% to $309.0 million for the third quarter of 2015 from $276.4 million for the third quarter of 2014. Same-center revenue rose 6.6% for third quarter of 2015 compared with the third quarter of 2014, comprised of a 2.7% increase in procedures and a 3.9% increase in net revenue per procedure. Adjusted EBITDA was $55.4 million for the third quarter of 2015, a 16% increase from $47.9 million for the third quarter of 2014, while adjusted EBITDA margin increased 60 basis points to 17.9% from 17.3%.

At the end of the quarter, Ambulatory Services operated 253 ASCs and one surgical hospital. Ambulatory Services had five ASCs under letter of intent at the end of the third quarter and one center under development, which is expected to open in 2016.

Physician Services

For the third quarter of 2015, net revenues for Physician Services were $341.2 million. Adjusted EBITDA was $77.8 million for the quarter, and adjusted EBITDA margin was 22.8%.

Comparable-quarter revenue growth for Physician Services was 25.9%, of which 7.6% was from same-contract revenues, 2.9% from net new contract revenues and 15.4% from acquisition revenues. Same-contract growth in net revenues totaled 10.1% for the third quarter of 2015, which included a 5.0% increase in patient encounters and a 5.1% increase in net revenue per patient encounter.

Having completed the Valley Anesthesia transaction thus far in the fourth quarter, Physician Services continues to evaluate additional acquisition opportunities in its robust pipeline of potential transactions.

Liquidity

AmSurg had cash and cash equivalents of $187.4 million at the end of the third quarter. Subsequent to quarter end, the Company executed the accordion feature under its credit agreement, which increased its borrowing capacity to $500.0 million under its revolving credit facility. A portion of this credit facility was used to fund acquisitions subsequent to quarter end. The remaining availability under the Company’s revolving credit facility is $244.0 million. Net cash flows from operations, less distributions to noncontrolling interests, were $118.7 million for the third quarter. The Company’s ratio of total debt at the end of the third quarter of 2015 to trailing 12 months EBITDA as calculated under the Company’s credit agreement was 4.4.

Guidance

AmSurg today has raised its financial and operating guidance for 2015 and established its financial guidance for the fourth quarter of the year. The Company’s guidance is as follows:

• Revenues in a range of $2.52 billion to $2.54 billion, up from a range of $2.50 billion to $2.52 billion;
• A same-center revenue increase of 4% to 5% for Ambulatory Services, compared with the prior range of 3% to 4%; affirms guidance for same-contract revenue growth of 8% to 10% in Physician Services;
• Adjusted EBITDA of $486 million to $490 million, up from a range of $474 million to $480 million;
• Adjusted EPS in a range of $3.66 to $3.69, up from a range of $3.52 to $3.59; and
• For the fourth quarter of 2015, adjusted EPS in a range of $1.03 to $1.06.

Non-GAAP Adjusted EBITDA guidance for the full year of 2015 excludes interest expense, income taxes, depreciation, amortization, share-based compensation, transaction costs, changes in contingent purchase price consideration, gain or loss on deconsolidations and discontinued operations. Non-GAAP Adjusted EPS guidance for the fourth quarter and full year of 2015 exclude acquisition-related transaction costs, acquisition-related amortization expense, gains and losses on future deconsolidation transactions and share-based compensation expense, net of the tax impact thereon. The exact amount of such exclusions are not currently determinable but may be significant and may vary significantly from period to period (see page 6 for a reconciliation of all GAAP and non-GAAP financial results).

Conference Call

AmSurg Corp. will hold a conference call to discuss this release Tuesday, November 3, 2015, at 5:00 p.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com and clicking “Investors” at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call and continue for 30 days.

Safe Harbor

This press release contains forward-looking statements, including the Company’s financial and operating guidance for the fourth quarter and full year of 2015. These statements, which have been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by important factors, including, but not limited to, the following risks: we may face challenges managing our Physician Services Division as a new business and may not realize anticipated benefits; we may become subject to investigations by federal and state entities and unpredictable impacts of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010; we may not be able to successfully maintain effective internal controls over financial reporting; we may not be able to implement our business strategy, manage the growth in our business, and integrate acquired businesses; our substantial indebtedness and restrictions in our debt instruments could adversely affect our business or our ability to implement our growth strategy, or limit our ability to react to changes in the economy or our industry; we may not generate sufficient cash to service our indebtedness, including any future indebtedness; regulatory changes may obligate us to buy out interests of physicians who are minority owners of our surgery centers; we may not be able to successfully maintain our information systems and processes, implement new systems and processes, and maintain the security of those systems and processes; we may fail to effectively and timely transition to the ICD-10 coding system; we may be subject to litigation and investigations and liability claims for damages and other expenses not covered by insurance; we may be required to write-off a portion of our intangible assets; payments from third-party payors, including government healthcare programs, may decrease or not increase as our costs increase; there may be adverse developments affecting the medical practices of our physician partners; we may not be able to maintain favorable relations with our physician partners; we may not be able to grow our ambulatory services revenue by increasing procedure volume while maintaining operating margins and profitability at our existing surgery centers; we may not be able to compete for physician partners, managed care contracts, patients and strategic relationships; adverse weather and other factors beyond our control may affect our business; our legal responsibility to minority owners of our surgery centers may conflict with our interests and prevent us from acting solely in our best interests; we may be adversely impacted by changes in patient volume and patient mix; several client relationships generate a significant portion of our physician services revenues; our physician services contracts may be cancelled or not renewed or we may not be able to enter into additional contracts under terms acceptable to us; reimbursement rates, revenue and profit margin under our fee-for-service physician services payor contracts may decrease; we may not be able to timely or accurately bill for services; laws and regulations that regulate payments for medical services made by government healthcare programs could cause our revenues to decrease; we may not be able to enroll our physician services providers in the Medicare and Medicaid programs on a timely basis; our strategic partnerships with healthcare providers may not be successful; our segments of the market for medical services have a high level of competition; we may not be able to successfully recruit and retain physicians, nurses and other clinical providers; we may not be able to accurately assess the costs we will incur under new contracts; our margins may be negatively impacted by cross-selling to existing clients or selling bundled services to new clients; we may not be able to enforce non-compete agreements with our physicians and other clinical employees in some jurisdictions; there may be unfavorable changes in regulatory, economic and other conditions in the states where we operate; legislative or regulatory action may make our captive insurance company arrangement less feasible or otherwise reduce our profitability; our reserves with respect to our losses covered under our insurance programs may not be sufficient; and the other risk factors are described in AmSurg’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as updated by other filings with the Securities and Exchange Commission. Consequently, actual results, performance or developments may differ materially from the forward-looking statements included above. AmSurg disclaims any intent or obligation to update these forward-looking statements.

About AmSurg

AmSurg’s Ambulatory Services Division acquires, develops and operates ambulatory surgery centers in partnership with physicians throughout the U.S. AmSurg’s Physician Services Division, Sheridan, provides outsourced physician services in multiple specialties to hospitals, ASCs and other healthcare facilities throughout the U.S., primarily in the areas of anesthesiology, children’s services, emergency medicine and radiology. Through these businesses as of September 30, 2015, AmSurg owned and operated 253 ASCs and one surgical hospital in 34 states and provided physician services to more than 360 healthcare facilities in 27 states. AmSurg has partnerships with, or employs, over 5,000 physicians in 38 states and the District of Columbia.

 

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data

(In thousands, except earnings per share)

      Three Months Ended

September 30,

    Nine Months Ended

September 30,

Statement of Operations Data:

2015     2014 2015     2014 Revenues $ 712,719 $ 555,543 $ 2,058,649 $ 1,093,331 Provision for uncollectibles (62,492 ) (53,193 ) (196,027 ) (53,193 ) Net revenue 650,227 502,350 1,862,622 1,040,138 Operating expenses: Salaries and benefits 327,532 240,337 950,107 406,539 Supply cost 45,638 41,886 134,012 120,564 Other operating expenses 98,852 81,262 294,424 191,243 Transaction costs 2,107 25,102 5,560 28,681 Depreciation and amortization 24,106   20,838   70,536   37,533   Total operating expenses 498,235 409,425 1,454,639 784,560 Net gain on deconsolidations 9,112 — 5,854 3,411 Equity in earnings of unconsolidated affiliates 4,935   2,158   11,575   3,461   Operating income 166,039 95,083 425,412 262,450 Interest expense, net 30,242 39,054 90,671 52,906 Debt extinguishment costs —   16,887   —   16,887   Earnings from continuing operations before income taxes 135,797 39,142 334,741 192,657 Income tax expense 37,518   22   76,960   25,802   Net earnings from continuing operations 98,279 39,120 257,781 166,855 Net loss from discontinued operations —   (1,697 ) —   (1,146 ) Net earnings 98,279 37,423 257,781 165,709 Less net earnings attributable to noncontrolling interests 55,618   47,257   160,407   139,387   Net earnings (loss) attributable to AmSurg Corp. shareholders 42,661 (9,834 ) 97,374 26,322 Preferred stock dividends (2,264 ) (2,239 ) (6,792 ) (2,239 ) Net earnings (loss) attributable to AmSurg Corp.

common shareholders

$ 40,397   $ (12,073 ) $ 90,582   $ 24,083     Amounts attributable to AmSurg Corp. common shareholders: Earnings (loss) from continuing operations, net of income tax $ 40,397 $ (10,697 ) $ 90,582 $ 25,466 Loss from discontinued operations, net of income tax —   (1,376 ) —   (1,383 ) Net earnings (loss) attributable to AmSurg Corp. common shareholders $ 40,397   $ (12,073 ) $ 90,582   $ 24,083   Basic earnings (loss) per share attributable to AmSurg Corp. common shareholders: Net earnings (loss) from continuing operations $ 0.85 $ (0.23 ) $ 1.90 $ 0.70 Net loss from discontinued operations —   (0.03 ) —   (0.04 ) Net earnings (loss) $ 0.85   $ (0.26 ) $ 1.90   $ 0.66   Diluted earnings (loss) per share attributable to AmSurg Corp. common shareholders: Net earnings (loss) from continuing operations $ 0.83 $ (0.23 ) $ 1.89 $ 0.69 Net loss from discontinued operations —   (0.03 ) —   (0.04 ) Net earnings (loss) $ 0.83   $ (0.26 ) $ 1.89   $ 0.65   Weighted average number of shares and share equivalents outstanding: Basic 47,707 46,320 47,652 36,620 Diluted 51,275 46,320 48,050 37,026    

AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands, except earnings per share)

     

Three Months EndedSeptember 30,

   

Nine Months EndedSeptember 30,

2015     2014 2015     2014 Reconciliation of net earnings (loss) to Adjusted net earnings (1): Net earnings (loss) attributable to AmSurg Corp. shareholders $ 42,661 $ (9,834 ) $ 97,374 $ 26,322 Loss from discontinued operations — 1,877 — 1,893 Amortization of purchased intangibles 12,681 9,969 37,593 9,969 Share-based compensation 3,727 2,424 11,319 7,388 Transaction costs 2,107 25,102 5,560 28,681 Net gain on deconsolidations (9,112 ) — (5,854 ) (3,411 ) Net change in fair value of contingent consideration 1,928 — 8,338 — Debt extinguishment costs — 16,887 — 16,887 Deferred financing write-off —   12,763   —   12,763   Total pre-tax adjustments 11,331 69,022 56,956 74,170 Tax effect (less $3.7 million charge to income tax expense for change in valuation allowance for 2015) 946   24,574   19,669   25,968   Total adjustments, net 10,385   44,448   37,287   48,202   Adjusted net earnings $ 53,046   $ 34,614   $ 134,661   $ 74,524     Basic shares outstanding 47,707 46,320 47,652 36,620 Effect of dilutive securities, options and non-vested shares 3,568     3,904   3,534   1,572   Diluted shares outstanding, if converted 51,275     50,224   51,186   38,192     Adjusted earnings per share $ 1.03   $ 0.69   $ 2.63   $ 1.95     Reconciliation of net earnings (loss) to Adjusted EBITDA (2): Net earnings (loss) attributable to AmSurg Corp. shareholders $ 42,661 $ (9,834 ) $ 97,374 $ 26,322 Loss from discontinued operations — 1,376 — 1,383 Interest expense, net 30,242 39,054 90,671 52,906 Income tax expense 37,518 22 76,960 25,802 Depreciation and amortization 24,106   20,838   70,536   37,533   EBITDA 134,527 51,456 335,541 143,946 Adjustments: Share-based compensation 3,727 2,424 11,319 7,388 Transaction costs 2,107 25,102 5,560 28,681 Net gain on deconsolidations (9,112 ) — (5,854 ) (3,411 ) Net change in fair value of contingent consideration 1,928 — 8,338 — Debt extinguishment costs —   16,887   —   16,887   Total adjustments (1,350 ) 44,413   19,363   49,545   Adjusted EBITDA $ 133,177   $ 95,869   $ 354,904   $ 193,491     Segment Information: Ambulatory Services Adjusted EBITDA $ 55,353 $ 47,853 $ 162,965 $ 145,475 Physician Services Adjusted EBITDA 77,824   48,016   191,939   48,016   Adjusted EBITDA $ 133,177   $ 95,869   $ 354,904   $ 193,491     Net Revenue by Segment: Ambulatory Services $ 308,983 $ 276,419 $ 903,884 $ 814,207 Physician Services 341,244   225,931   958,738   225,931   Total net revenue $ 650,227   $ 502,350   $ 1,862,622   $ 1,040,138    

See footnotes on page 10

    AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(Dollars in thousands)

 

Operating Data- Ambulatory Services:

                Three Months Ended

September 30,

Nine Months Ended

September 30,

2015 2014 2015 2014 Procedures performed during the period at consolidated centers 434,720 410,048 1,280,541 1,211,065 Centers in operation at end of period (consolidated) 240 233 240 233 Centers in operation at end of period (unconsolidated) 13 9 13 9 Average number of continuing centers in operation (consolidated) 239 233 237 233 New centers added during the period 3 4 6 6 Centers discontinued during the period — 4 — 5 Centers under development at end of period 1 1 1 1 Centers under letter of intent at end of period 5 8 5 8 Average revenue per consolidated center $ 1,295 $ 1,188 $ 3,810 $ 3,497 Same center revenues increase 6.6 % 1.7 % 5.5 % 0.6 % Surgical hospitals in operation at end of period (unconsolidated) 1 — 1 —    

Operating Data- Physician Services:

Three MonthsEndedSeptember 30, 2015

Nine MonthsEndedSeptember 30,2015

Contribution to Net Revenue Growth: Same contract 7.6 % 7.9 % New contract 2.9 2.3 Acquired contract and other 15.4   11.4   Total net revenue growth 25.9 % 21.6 %   Same contract revenue growth 10.1 % 10.4 %     AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)

        September 30, December 31,

Balance Sheet Data:

2015 2014 Assets Current assets: Cash and cash equivalents $ 187,422 $ 208,079 Restricted cash and marketable securities 11,789 10,219 Accounts receivable, net of allowance of $144,893 and $113,357, respectively 276,237 233,053 Supplies inventory 20,887 19,974 Prepaid and other current assets 91,651   115,362 Total current assets 587,986 586,687 Property and equipment, net 190,399 180,448 Investments in unconsolidated affiliates 112,877 75,475 Goodwill 3,589,317 3,381,149 Intangible assets, net 1,282,567 1,273,879 Other assets 24,074   25,886 Total assets $ 5,787,220   $ 5,523,524 Liabilities and Equity Current liabilities: Current portion of long-term debt $ 19,982 $ 18,826 Accounts payable 30,750 29,585 Accrued salaries and benefits 186,923 140,044 Accrued interest 17,846 29,644 Other accrued liabilities 130,563   67,986 Total current liabilities 386,064 286,085 Long-term debt 2,230,296 2,232,186 Deferred income taxes 645,711 633,480 Other long-term liabilities 90,671 89,443 Commitments and contingencies Noncontrolling interests – redeemable 185,261 184,099 Equity: Preferred stock, no par value, 5,000 shares authorized, 1,725 shares issued and outstanding 166,632 166,632 Common stock, no par value, 120,000 shares authorized, 48,455 and 48,113 shares issued and outstanding, respectively 897,007 885,393 Retained earnings 718,104   627,522 Total AmSurg Corp. equity 1,781,743 1,679,547 Noncontrolling interests – non-redeemable 467,474   418,684 Total equity 2,249,217   2,098,231 Total liabilities and equity $ 5,787,220   $ 5,523,524     AMSURG CORP.

Unaudited Selected Consolidated Financial and Operating Data, continued

(In thousands)

     

Three Months EndedSeptember 30,

   

Nine Months EndedSeptember 30,

Statement of Cash Flow Data:

2015     2014 2015     2014 Cash flows from operating activities: Net earnings $ 98,279 $ 37,423 $ 257,781 $ 165,709 Adjustments to reconcile net earnings to net cash flows provided by operating activities: Depreciation and amortization 24,106 20,838 70,536 37,533 Amortization of deferred loan costs 2,083 14,649 6,238 15,645 Provision for uncollectibles 68,032 58,944 212,546 69,715 Net loss on sale of long-lived assets — 1,857 — 2,468 Net gain on deconsolidations (9,112 ) — (5,854 ) (3,411 ) Share-based compensation 3,727 2,424 11,319 7,388 Excess tax benefit from share-based compensation (246 ) (198 ) (3,779 ) (2,288 ) Deferred income taxes 4,610 13,516 7,309 31,388 Equity in earnings of unconsolidated affiliates (4,935 ) (2,158 ) (11,575 ) (3,461 ) Debt extinguishment costs — 4,536 — 4,536 Net change in fair value of contingent consideration 1,928 — 8,338 — Increases (decreases) in cash and cash equivalents, net of acquisitions and dispositions: Accounts receivable (75,409 ) (49,008 ) (232,465 ) (65,758 ) Supplies inventory (423 ) 75 (533 ) 68 Prepaid and other current assets 6,152 (22,104 ) 36,479 (24,414 ) Accounts payable 3,012 (7,610 ) 2,316 (10,007 ) Accrued expenses and other liabilities 52,112 47,599 64,760 48,368 Other, net 1,891   1,687   3,786   2,572   Net cash flows provided by operating activities 175,807 122,470 427,202 276,051 Cash flows from investing activities: Acquisitions and related expenses (37,458 ) (2,114,211 ) (233,490 ) (2,138,648 ) Acquisition of property and equipment (14,341 ) (8,098 ) (47,006 ) (23,109 ) Proceeds from sale of interests in surgery centers — 2,877 — 4,969 Purchases of marketable securities (498 ) (3,486 ) (1,743 ) (3,486 ) Maturities of marketable securities 1,245 — 4,233 — Other (1,987 ) 4,527   (3,974 ) 2,082   Net cash flows used in investing activities (53,039 ) (2,118,391 ) (281,980 ) (2,158,192 ) Cash flows from financing activities: Proceeds from long-term borrowings 2,402 1,972,153 10,197 2,046,399 Repayment on long-term borrowings (5,449 ) (300,717 ) (15,737 ) (403,043 ) Distributions to noncontrolling interests (57,111 ) (47,433 ) (158,144 ) (139,443 ) Proceeds from preferred stock offering — 172,500 — 172,500 Cash dividends for preferred shares (2,264 ) (2,239 ) (6,792 ) (2,239 ) Proceeds from common stock offering — 439,875 — 439,875 Proceeds from issuance of common stock upon exercise of stock options 276 504 2,356 2,150 Repurchase of common stock — (33 ) (3,684 ) (2,890 ) Excess tax benefit from share-based compensation 246 198 3,779 2,288 Payments of equity issuance costs — (24,366 ) — (24,366 ) Financing cost incurred (1 ) (65,673 ) (294 ) (65,673 ) Other 266   322   2,440   (176 ) Net cash flows provided by (used in) financing activities (61,635 ) 2,145,091   (165,879 ) 2,025,382   Net increase (decrease) in cash and cash equivalents 61,133 149,170 (20,657 ) 143,241 Cash and cash equivalents, beginning of period 126,289   44,911   208,079   50,840   Cash and cash equivalents, end of period $ 187,422   $ 194,081   $ 187,422   $ 194,081    

AMSURG CORP.

Footnotes to Reconciliations of Non-GAAP Measures to GAAP Measures

  (1) We believe the calculation of adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders provides a better measure of our ongoing performance and provides better comparability to prior periods because it excludes discontinued operations, the gains or loss from deconsolidations, which are non-cash in nature, transaction costs, including associated debt extinguishment costs and deferred financing write-off, and acquisition-related amortization expense (the majority of which relate to the Sheridan Transaction and which are of a nature and significance not generally associated with our historical individual center acquisition activity), changes in contingent purchase price consideration and share-based compensation expense. Adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders should not be considered as a measure of financial performance under accounting principles generally accepted in the United States, and the items excluded from it is a significant component in understanding and assessing financial performance. Because adjusted net earnings from continuing operations per diluted share attributable to AmSurg Corp. common shareholders is not a measurement determined in accordance with accounting principles generally accepted in the United States and is thus susceptible to varying calculations, it may not be comparable as presented to other similarly titled measures of other companies. For purposes of calculating adjusted earnings per share, we utilize the if-converted method to determine the number of diluted shares outstanding. In periods where utilizing the if-converted method is anti-dilutive, the mandatory convertible preferred stock will not be included in the calculation of diluted shares outstanding.   (2) We define Adjusted EBITDA of AmSurg as earnings before interest expense, net, income taxes, depreciation, amortization, share-based compensation, transaction costs, changes in contingent purchase price consideration, gain or loss on deconsolidations and discontinued operations. Adjusted EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA is an analytical indicator used by management and the health care industry to evaluate company performance, allocate resources and measure leverage and debt service capacity. Adjusted EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies. Net earnings from continuing operations attributable to AmSurg Corp. common shareholders is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most comparable to Adjusted EBITDA as defined.  

View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006822/en/

AmSurg Corp.Claire M. Gulmi, 615-665-1283Executive Vice President andChief Financial Officer