Surgery Partners, Inc. (SGRY) Bundle
A Brief History of Surgery Partners, Inc. (SGRY)
Foundation and Early Years
Foundation and Early Years
Surgery Partners, Inc. was founded in 2004 in Brentwood, Tennessee. The company was established to provide comprehensive surgical services and has grown rapidly since its inception.
Initial Public Offering (IPO)
The company went public on November 3, 2017, with an initial offering price of $18 per share. The IPO raised approximately $200 million, offering investors a chance to participate in the growing healthcare sector.
Acquisition Strategies
Surgery Partners has pursued a strategy of growth through acquisitions. In 2018, the company acquired LCA-Vision Inc., expanding its business in the eye care market. The acquisition was valued at approximately $37 million.
Financial Performance
As of the fiscal year 2022, Surgery Partners reported revenue of $1.36 billion, reflecting a growth rate of 22% compared to the previous year. This revenue growth has primarily been driven by increased surgical volumes and strategic acquisitions.
Market Position
As of 2023, Surgery Partners operates more than 180 outpatient surgical facilities and is recognized as one of the leading operators in the ambulatory surgical center (ASC) sector.
Recent Developments
In Q2 2023, Surgery Partners reported an adjusted EBITDA of $185 million, showcasing a significant operational performance. The company’s focus on enhancing operational efficiency and patient care is evident in its financial results.
Strategic Partnerships
Throughout its history, Surgery Partners has formed strategic partnerships with various healthcare providers to enhance service delivery. One notable partnership includes collaboration with local hospitals to improve surgical outcomes and patient experiences.
Financial Highlights
| Year | Revenue (in millions) | Adjusted EBITDA (in millions) | Net Income (in millions) |
|---|---|---|---|
| 2020 | $924 | $92 | ($48) |
| 2021 | $1,107 | $145 | ($21) |
| 2022 | $1,360 | $177 | $9 |
| 2023 (Q2) | $750 | $185 | $15 |
Stock Performance
As of October 2023, Surgery Partners’ stock price is approximately $23.45, having experienced fluctuations typical in the healthcare sector. The company has a market capitalization of around $2 billion.
Future Outlook
Surgery Partners aims to expand its footprint in the ASC market through targeted acquisitions and continued improvement in surgical services. The company’s goal is to achieve a revenue target of $2 billion by 2025.
A Who Owns Surgery Partners, Inc. (SGRY)
Ownership Structure
Surgery Partners, Inc. (SGRY) has a diverse ownership structure, comprising institutional investors, retail investors, and insiders.
Institutional Ownership
As of the latest available data, approximately 98% of Surgery Partners' shares are held by institutional investors. Below is a detailed table of the top institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares | Type of Investment |
|---|---|---|---|
| BlackRock, Inc. | 4,250,000 | 12.5% | Equity |
| The Vanguard Group, Inc. | 3,800,000 | 11.3% | Equity |
| Wellington Management Group LLP | 3,500,000 | 10.5% | Equity |
| J.P. Morgan Asset Management | 3,200,000 | 9.5% | Equity |
| Goldman Sachs Group, Inc. | 2,900,000 | 8.6% | Equity |
Insider Ownership
Insider ownership can provide insight into the confidence that management has in the company. As per the latest reports, insiders hold a total of approximately 5% of the outstanding shares. The following table outlines key insiders and their holdings:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Wayne DeVeydt | CEO | 500,000 | 1.5% |
| David G. Johnson | CFO | 300,000 | 0.9% |
| Mark R. Renteria | COO | 250,000 | 0.75% |
| Mary T. Paxton | Director | 200,000 | 0.6% |
Retail Shareholders
Retail investors make up a smaller portion of the ownership, with approximately 2% of shares held by individual investors. This segment includes a mix of both small and larger retail investors.
Recent Financial Performance
As of the last reported quarter, Surgery Partners, Inc. demonstrated significant financial metrics:
- Revenue: $1.2 billion
- Net Income: $100 million
- Earnings Per Share (EPS): $1.50
- Market Capitalization: $3.6 billion
Stock Performance
As of October 2023, the stock price of Surgery Partners, Inc. (SGRY) is approximately $27 per share. The stock has seen a performance change of +15% over the past year.
Surgery Partners, Inc. (SGRY) Mission Statement
Company Overview
Surgery Partners, Inc. is a leading operator of surgical facilities in the United States. The company focuses on providing high-quality surgical care across a range of specialties, including orthopedics, gastroenterology, and otolaryngology. Surgery Partners aims to enhance patient outcomes through its comprehensive approach to surgical services.
Mission Statement
The mission of Surgery Partners, Inc. is to deliver the highest quality surgical care by providing a convenient, patient-centric environment, ensuring that every patient receives personalized attention and support throughout their surgical experience.
Core Values
- Integrity: Commitment to ethical practices and transparency.
- Excellence: Striving for the highest standards in surgical care.
- Innovation: Embracing new technologies and methodologies to enhance patient care.
- Collaboration: Working together with healthcare providers to improve patient outcomes.
- Compassion: Fostering a caring environment for patients and families.
Strategic Objectives
- Expand surgical facility footprint to increase access to care.
- Enhance the scope of services offered to include more specialties.
- Invest in advanced technology and training for surgical teams.
- Improve patient satisfaction scores through feedback and quality initiatives.
- Focus on cost management to maintain affordability for patients.
Financial Overview
As of Q2 2023, Surgery Partners reported revenues of approximately $1.01 billion, an increase compared to the previous year. The net income for the same period was reported at $25.4 million. The company's EBITDA was approximately $170 million.
Performance Metrics
| Metric | Q2 2023 | Q2 2022 | Change (%) |
|---|---|---|---|
| Revenue | $1.01 billion | $917 million | +10.1% |
| Net Income | $25.4 million | $22 million | +15.5% |
| EBITDA | $170 million | $150 million | +13.3% |
| Number of Facilities | 128 | 115 | +11.3% |
Market Position
Surgery Partners operates a network of over 128 surgical facilities across the United States, including freestanding surgical centers and hospital partnerships. The company is ranked among the top five independent surgical facility operators in the country.
Patient-Centric Initiatives
The company prioritizes patient experience by implementing a variety of initiatives such as:
- Streamlined scheduling systems for ease of access.
- Comprehensive pre- and post-operative care programs.
- Patient education resources to empower informed decisions.
- Feedback mechanisms to continuously improve service delivery.
Future Outlook
Looking ahead, Surgery Partners plans to continue its expansion strategy, projecting a revenue growth rate of around 8-10% annually through organic growth and acquisitions. The company aims to enhance operational efficiencies and invest in technologies that support improved surgical outcomes.
How Surgery Partners, Inc. (SGRY) Works
Business Model
Business Model
Surgery Partners, Inc. operates as a leading provider of surgical services in the United States. The company's business model focuses on developing, acquiring, and managing surgical facilities, including ambulatory surgical centers (ASCs) and surgical hospitals.
Key Financials
As of Q2 2023, Surgery Partners reported the following financial data:
| Metric | Value |
|---|---|
| Revenue | $1.22 billion |
| Net Income | $45.5 million |
| Adjusted EBITDA | $225 million |
| Operating Cash Flow | $116 million |
| Total Assets | $3.2 billion |
| Total Liabilities | $2.1 billion |
Service Offerings
SGRY provides a variety of surgical services across multiple specialties:
- Orthopedic Surgery
- Gastroenterology
- Ophthalmology
- General Surgery
- Pain Management
Facility Operations
The company operates over 130 surgical facilities across 27 states. Key operations include:
- Independently owned ASCs
- Joint ventures with hospitals
- Management services for surgical facilities
Growth Strategy
Surgery Partners focuses on growth through:
- Strategic acquisitions of ASCs
- Partnerships with healthcare systems
- Expansion into new markets
Market Position
As of 2023, Surgery Partners holds a significant market share in the ASC sector:
| Market Share | Percentage |
|---|---|
| Ambulatory Surgical Centers | 15% |
| Overall Surgical Services | 5% |
Workforce
Surgery Partners employs approximately 6,500 staff members, including surgeons, nurses, and administrative personnel. The company places a strong emphasis on:
- Training and development
- Employee engagement
- Quality patient care
Financial Performance Metrics
Key performance indicators for Surgery Partners as of the latest reporting period include:
| Performance Metric | Value |
|---|---|
| Gross Margin | 38.5% |
| Operating Margin | 10.5% |
| Net Profit Margin | 3.7% |
| Debt to Equity Ratio | 1.5 |
Partnership and Collaboration
Surgery Partners engages in collaborations with various healthcare providers for:
- Resource sharing
- Enhanced patient outcomes
- Cost-efficient practices
How Surgery Partners, Inc. (SGRY) Makes Money
Revenue Streams
Revenue Streams
Surgery Partners, Inc. generates revenue through several key segments:
- Facility Fees
- Physician Services
- Ancillary Services
- Management Services
Facility Fees
The primary source of revenue for Surgery Partners comes from facility fees charged for the use of their ambulatory surgery centers (ASCs). According to their Q2 2023 financial report, they recorded facility revenue of $380 million, representing a 25% increase compared to the same quarter in the previous year.
Physician Services
Physician services, including professional fees for surgical procedures, contribute significantly to the overall income of the company. In Q2 2023, physician services accounted for approximately 35% of total revenues, totaling $260 million.
Ancillary Services
Ancillary services include various support services such as imaging, pathology, and laboratory services. Surgery Partners reported ancillary service revenues of $120 million in the second quarter of 2023, an increase of 15% year-over-year.
Management Services
The company also offers management services, assisting healthcare providers with running their surgical centers more efficiently. This segment generated revenue of $50 million in Q2 2023, marking a 10% growth from the previous year.
Operational Metrics
Understanding operational metrics is crucial to assessing financial health. Key metrics include:
| Metric | Q2 2023 | Q2 2022 | Year-over-Year Growth |
|---|---|---|---|
| Total Revenue | $1.08 billion | $840 million | 29% |
| EBITDA | $250 million | $190 million | 31% |
| Net Income | $80 million | $60 million | 33% |
Patient Volume and Growth
Patient volume is critical for revenue generation. In Q2 2023, Surgery Partners reported a total of 150,000 surgical procedures performed, a rise of 20% from the previous year.
Payor Mix
The payor mix also influences revenue, with a split between private insurance, Medicare, and Medicaid. As of Q2 2023:
| Payor Type | Percentage |
|---|---|
| Private Insurance | 60% |
| Medicare | 30% |
| Medicaid | 10% |
Future Outlook
Forecasts for Surgery Partners’ future financial performance suggest continued growth. Analysts project a revenue increase to approximately $4.5 billion by 2025, with an estimated EBITDA margin of 25%.
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