At round $16, Surgical procedure Companions shares are value about 40 p.c lower than what private-equity agency Bain Capital provided to pay in January for the roughly 60 p.c of Surgical procedure Companions it doesn’t already personal. Bain acquired about 54 p.c of Surgical procedure Companions in 2017 however the latter’s board stated in June it had declined the investor’s supply to completely purchase Surgical procedure Companions.
Within the three months that ended Sept. 30, Surgical procedure Companions produced a internet revenue of $25.3 million on revenues of almost $822 million. These figures had been up from $6.4 million and $770 million, respectively, in the identical interval of final 12 months. Identical-facility revenues for the quarter had been up 6.3 p.c 12 months over 12 months, which pushed that metric to five.4 p.c year-to-date—implying that fourth-quarter progress can be beneath 4 p.c.
Nonetheless, Evans informed analysts he has confidence in Surgical procedure Companions’ longer-term prospects—amongst different issues, he pointed to his group engaged on greater than $300 million value of potential acquisitions—in addition to the position of ASCs within the broader healthcare system.
“I wish to be very clear: We’re going to have quantity and fee progress within the fourth quarter,” Evans stated. “However we have now a really detailed look into this as we head into the fourth quarter. It’s an enormous quarter for us and we’re simply reacting to a pattern that’s not fairly as sturdy as we’d usually count on.”
