The lowered outlook led investors to cut Surgery Partners’ market capitalization by a quarter. At the end of the regular trading session Nov. 10, the company’s stock (Ticker:
SGRY) stood at $16.03, their lowest level since mid-2020. At that price, the company’s market value is about $2 billion.
At around $16, Surgery Partners shares are worth about 40 percent less than what private-equity firm Bain Capital offered to pay in January for the roughly 60 percent of Surgery Partners it doesn’t already own. Bain acquired about 54 percent of Surgery Partners in 2017 but the latter’s board said in June it had declined the investor’s offer to fully acquire Surgery Partners.
In the three months that ended Sept. 30, Surgery Partners produced a net profit of $25.3 million on revenues of nearly $822 million. Those figures were up from $6.4 million and $770 million, respectively, in the same period of last year. Same-facility revenues for the quarter were up 6.3 percent year over year, which pushed that metric to 5.4 percent year-to-date—implying that fourth-quarter growth will be below 4 percent.
Still, Evans told analysts he has confidence in Surgery Partners’ longer-term prospects—among other things, he pointed to his team working on more than $300 million worth of possible acquisitions—as well as the role of ASCs in the broader healthcare system.
“I want to be very clear: We’re going to have volume and rate growth in the fourth quarter,” Evans said. “But we have a very detailed look into this as we head into the fourth quarter. It’s a huge quarter for us and we are just reacting to a trend that’s not quite as strong as we would normally expect.”
