Deerfield, Ill.-based Surgical Care Affiliates reported its third quarter results for the fiscal year 2016.
Here are 14 things to know:
Q3 financial results
1. The company's net operating revenue increased 25.2 percent to $322.8 million, up from the same period of FY 2015.
2. Net income attributable to SCA was $13.3 million, an 88 percent drop from $118.6 million during Q3 FY 2015.
3. SCA's net cash provided by operating activities was $78.2 million, marginally up from $77.4 million during Q3 FY 2015.
4. SCA had a one-time, one-cash tax valuation allowance release that totaled $106.1 million.
5. The company adjusted EBITDA less non-controlling interest increased to $47.9 million this quarter, up 13.4 percent from the same period during FY 2015.
6. Compared to Q3 last year, SCA GAAP net patient revenue rallied 2.4 percent.
7. SCA systemwide net operating revenues jumped 14.2 percent.
8. For FY 2016, SCA expects its adjusted EBITDA less NCI growth to be between 13 percent and 16 percent.
Transactions
9. The company acquired six new facilities, four of which are consolidated and two of which are nonconsolidated, during the quarter. SCA also closed one consolidated facility and sold one equity method facility.
10. Of SCA's existing facilities, seven converted from nonconsolidated to consolidated. The conversions did not impact SCA's total facility count for the third quarter.
11. SCA had a total facility count of 205 as of Nov. 1, 2016.
Strategy
12. Compared to the first nine months of FY 2015, SCA's total joint replacements have more than doubled. Thirty-seven of SCA's facilities are currently performing total joint replacements.
13. SCA continues to expand its surgical networks. The company added its ninth facility in partnership with New Jersey-based Virtua Health during Q3.
14. During Q3, SCA entered into two additional agreements with Blue Cross plans that include value-based payments tied to quality, patient experience and cost.