Surgical Care Affiliates 1Q Financial Results: 5 Key Points

Surgical Care Affiliates released its 2014 first quarter financial results.

Here are five key takeaways.

1. SCA's total net operating revenues, excluding facilities in which the company does not own a controlling interest, increased 2.1 percent from $192 million to $196 million. System-wide net operating revenues, including all facilities in which SCA has an ownership, increased 8.7 percent. "We continue to have success in our efforts to develop new ambulatory surgery centers with our existing health system partners. We have also had continued success in adding additional health system and physician partners and look forward to the growth that we expect to result from these new relationships," said SCA President and CEO Andrew Hayek, according to the report.

 2. The company's cash flow from operating activities increased 7.8 percent from the first quarter of 2013 to $44.4 million. Operating cash flow less distributions to non-controlling interests leaped 28.6 percent from $15.4 million in the first quarter of 2013 to $19.9 million.

3. SCA reported net income of $0.2 million, compared to a net loss of $1.4 million for the first quarter of 2013. EBITDA less NCI decreased 4.4 percent from $34.5 million to $32.9 million, attributable to unusual winter weather that resulted in the closure of several SCA centers for multiple days. Adjusted net income increased 28.5 percent from $11.8 million to $15.2 million.

4. For the first quarter of 2014, system-wide net patient revenue per case grew 5.4 percent. The growth is attributed to acquisitions, changes in payer contracts and case volume, according to the report. Same site system-wide net patient revenue decreased 0.1 percent and same site system-wide case volume decreased 1.6 percent. Both decreases can be traced back to the harsh winter weather seen throughout the quarter, according to the report.

5. Despite the harsh weather of the first quarter, SCA expects its previous guidance to remain the same, which places EBITDA less NCI in the range of $154 million to $158 million. "We believe we are well positioned to continue our growth as we pursue our strategies with our partners around the country," said Mr. Hayek, in the report. As of March 31, SCA operated 175 surgical facilities.

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