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• Revenue Growth: 13.5% increase to $3.1 billion for the full year 2024.

• Adjusted EBITDA Growth: 16% increase to $508.2 million for the full year 2024.

• Margin Expansion: 30 basis points improvement to 16.3% for 2024.

• Same-Facility Revenue Growth: 8% for the full year 2024.

• Surgical Cases: 657,000 cases performed in 2024, an 8.4% increase from 2023.

• Orthopedic Cases: 11% increase in 2024, with total joint procedures growing 50%.

• De Novo Facilities: 8 opened in 2024, with 12 more in the pipeline for 2025.

• Acquisitions: 7 surgical facilities added in 2024, with $400 million capital deployed.

• Cash and Liquidity: $270 million in cash and over $770 million in total liquidity at year-end 2024.

• Debt: $2.2 billion in outstanding corporate debt with no maturities until 2030.

• 2025 Revenue Guidance: $3.3 billion to $3.45 billion.

• 2025 Adjusted EBITDA Guidance: $555 million to $565 million.

• Warning! GuruFocus has detected 4 Warning Signs with SGRY.

Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Surgery Partners Inc (NASDAQ:SGRY) reported a full year adjusted EBITDA growth of 16% and net revenue growth of 13.5%, marking the first time the company recorded revenue over $3 billion and adjusted EBITDA over $0.5 billion.

• The company experienced strong organic growth with same-facility revenue growth of 8%, driven by both case volume and rate improvements.

• Surgery Partners Inc (NASDAQ:SGRY) added 14 surgical robots in 2024, enhancing their capability to perform complex and higher acuity procedures, particularly in orthopedics.

• The company successfully recruited over 750 new physicians in 2024, with a focus on orthopedic specialists, which is expected to significantly impact growth in 2025.

• Surgery Partners Inc (NASDAQ:SGRY) opened eight de novo facilities in 2024 and has 12 more in the pipeline, indicating a strong commitment to expanding their operational footprint.

Negative Points

• The company incurred higher than typical transaction and integration costs in 2024 due to an increased number of acquisitions and de novo investments.

• Operating cash flows in 2024 were lower than originally estimated due to increased variable costs associated with acquisitions, incremental interest costs, and restructuring expenses.

• Surgery Partners Inc (NASDAQ:SGRY) faces potential legislative risks related to site neutrality policies, although they estimate the worst-case scenario would impact only 1% of their net revenue.

• The company reported a change in the valuation allowance for deferred tax assets of $100 million, which could be misinterpreted as a negative financial indicator.

• Despite strong revenue growth, the company did not see significant operating leverage in the fourth quarter, with EBITDA in line with expectations despite a revenue beat.