AmSurg reports 3% Q2 revenue increase to $328M, KKR acquisition expected to close in Q4: 5 key notes

Envision reported net revenue at $2.07 billion for the second quarter of 2018 — its first quarterly report since KKR agreed to acquire the company.

KKR and Envision entered into an acquisition agreement June 10, and the transaction is expected to close during the fourth quarter. The FTC has already approved the transaction. Here are five things to know about Envision's second quarter financial report:

1. While posting $2.07 billion in net revenue, Envision also reported $1.84 billion in net loss attributed to common shareholders. The net loss included non-cash impairment charges that affected the physician services' segment goodwill, and the goodwill adjustment resulted from Envision's agreement to be acquired at $46 per share plus the assumption or repayment of all outstanding debt by KKR.

2. AmSurg, the company's ambulatory services business, posted $328 million in net revenue, a 3 percent increase over the same period last year.

3. The same-center revenue growth for AmSurg was 2.9 percent, including a volume growth of 1.5 percent and rate growth of 1.4 percent.

4. AmSurg's adjusted EBITDA for the second quarter was $64.3 million, a 6.1 percent increase over the previous year. The adjusted EBITDA margin was 19.6 percent, which was a 60-basis point improvement from the previous year.

5. During the second quarter, Envision acquired two physician group practices and completed two ambulatory services transactions. The physician services line reported $1.74 billion in net revenue for the second quarter, a 7.1 percent increase over the previous year.

 

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