David Kretschmer appointed Chief Strategy
and Transformation Officer; Executive
with more than 35 years of financial and corporate strategy
experience
Surgery Partners, Inc. (NASDAQ:SGRY) (the “Company”), a leading
healthcare services company, today announced that R. David
Kretschmer has been appointed Chief Strategy and Transformation
Officer. In the near term, Mr. Kretschmer will also serve as
interim Chief Financial Officer following the departure of Teresa
Sparks, who is stepping down to pursue other opportunities after a
combined 20 years of distinguished service to the Company and
legacy company Symbion, Inc. Surgery Partners also announced it has
retained leading executive search firm Russell Reynolds to support
the search for a permanent CFO candidate.
Chief Executive Officer Wayne DeVeydt stated, “2018 will be a
transformative year for our company, and we are excited to add
David to our leadership team. David brings unique experience,
perspective, and motivation to Surgery Partners, along with a
strong financial background and a history of generating superior
results. His ability to lead and inspire top performing teams makes
him the right person for the role, and we’re confident that he will
help drive our near-term financial operations as we seek a
long-term replacement. This announcement is yet another significant
milestone as we continue to build out our executive leadership and
strengthen our organization.”
Mr. Kretschmer joins Surgery Partners from Anthem, Inc., where
he most recently served as Senior Vice President of Treasury and
Corporate Strategy. From 1991 to 2018, Mr. Kretschmer held many
responsibilities, including treasury and corporate finance
activities, enterprise risk management, corporate strategy and
development, cash collections and disbursements, and management of
Anthem’s $24 billion investment portfolio. Prior to his time at
Anthem, David held a variety of financial management and corporate
finance roles. Mr. Kretschmer will begin his new roles at Surgery
Partners on February 12, 2018.
Mr. Kretschmer said, “I am honored to have the opportunity to
join one of the largest and fastest-growing companies in the
surgical services space. Surgery Partners has one of the most
talented teams in the business, supporting their strong
relationships with patients, providers, and the communities in
which they operate. I look forward to leading the Company’s finance
organization in the near-term while also working with the rest of
the leadership team to further develop and execute a long-term
strategy that drives growth and value across all of our various
stakeholders during this important time for the organization.”
Before joining Surgery Partners, Ms. Sparks worked at legacy
company Symbion, Inc. from 1996 until 2014. She will help support
the transition of the finance and investor relations functions as a
consultant for 6 months while the Company identifies a permanent
CFO.
“The entire Board thanks Teresa for her dedicated service to
Surgery Partners, and we appreciate her many contributions to our
financial success during her time with the Company, including her
integral role in the acquisition of NSH and integration of Symbion.
We are a stronger company today thanks to the leadership and energy
Teresa has devoted to driving our vision forward. We wish her the
very best in her future endeavors,” DeVeydt said.
Surgery Partners also announced that it has reaffirmed guidance
at the upper half of the range for 2017 revenue (of $1.30 billion
to $1.33 billion) and Adjusted EBITDA ($178 million to $185
million), which includes the normalization for the impact of
hurricanes and the reserve adjustment described in our updated
guidance included in our most recent earnings release furnished
with the SEC on Form 8-K on November 9, 2017. The Company plans to
release its fourth quarter 2017 financial results on March 1, 2018.
It will host a conference call and live web cast at 8:30 a.m.
(Eastern Time) to discuss the results and provide a business
update.
About Surgery Partners, Inc.
Headquartered in Brentwood, Tennessee, Surgery Partners is a
leading healthcare services company with a differentiated
outpatient delivery model focused on providing high quality, cost
effective solutions for surgical and related ancillary care in
support of both patients and physicians. Founded in 2004, Surgery
Partners is one of the largest and fastest growing surgical
services businesses in the country, with more than 180 locations in
32 states, including ambulatory surgery centers, surgical
hospitals, a diagnostic laboratory, multi-specialty physician
practices and urgent care facilities. For additional information,
visit www.surgerypartners.com.
Non-GAAP Financial
Measures
When we use the term “Adjusted EBITDA,” it is referring to
income before income taxes minus (a) net income attributable to
non-controlling interests plus (b) depreciation and amortization,
(c) interest expense, net, (d) non-cash stock compensation expense,
(e) contingent acquisition compensation expense, (f) merger
transaction, integration and practice acquisition costs, minus (g)
gain on litigation settlement, plus (h) loss on disposal or
impairment of long-lived assets and (i) loss on debt refinancing.
We use Adjusted EBITDA as a measure of financial performance.
Adjusted EBITDA is a key measure used by management to assess
operating performance, make business decisions and allocate
resources. Non-controlling interests represent the interests of
third parties, such as physicians, and in some cases, healthcare
systems that own an interest in surgical facilities that we
consolidate for financial reporting purposes. We believe that it is
helpful to investors to present Adjusted EBITDA as defined above
because it excludes the portion of net income attributable to these
third-party interests and clarifies for investors our portion of
Adjusted EBITDA generated by its surgical facilities and other
operations.
The Company is unable to present a quantitative reconciliation
of Adjusted EBITDA to net income for the periods presented because
management cannot reasonably predict with sufficient reliability
all of the necessary components of net income for the periods
presented. The Company has excluded the items reflected in the
definition of Adjusted EBITDA above from its projected Adjusted
EBITDA for fiscal 2017 and is likely to exclude these items from
Adjusted EBITDA in the future and may also exclude other similar
items, the effect of which is uncertain but may be significant in
amount. The determination of the amounts that are excluded
from non-GAAP financial measures is a matter of management judgment
and depends upon, among other factors, the nature of the underlying
expense or income amounts.
Adjusted EBITDA is not a measurement of financial performance
under GAAP, and should not be considered in isolation or as a
substitute for net income, operating income or any other measure
calculated in accordance with generally accepted accounting
principles. The items excluded from Adjusted EBITDA are significant
components in understanding and evaluating our financial
performance. We believe such adjustments are appropriate, as the
magnitude and frequency of such items can vary significantly and
are not related to the assessment of normal operating performance.
Our calculation of Adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies.
Forward-Looking Statements
This press release contains forward-looking statements,
including those regarding growth and our anticipated operating
results for 2017 and other similar statements. These statements can
be identified by the use of words such as “believes,”
“anticipates,” “expects,” “intends,” “plans,” “continues,”
“estimates,” “predicts,” “projects,” “forecasts,” and similar
expressions. All forward looking statements are based on
current expectations and beliefs as of the date of this release and
are subject to risks, uncertainties and assumptions that could
cause actual results to differ materially from those discussed in,
or implied by, the forward-looking statements, including but not
limited to, the risks identified and discussed from time to time in
the Company’s reports filed with the SEC, including the Company’s
Quarterly Reports on Form 10-Q for the quarterly periods ended
September 30, 2017 and June 30, 2017, filed on
November 9, 2017 and August 9, 2017, respectively. Except as
required by law, the Company undertakes no obligation to revise or
update publicly any forward-looking statements to reflect events or
circumstances after the date of this report, or to reflect the
occurrence of unanticipated events or circumstances. In
addition, the financial information for the fiscal year ended
December 31, 2017 is unaudited and subject to quarter-end and
year-end adjustments in connection with the completion of our
customary financial closing procedures. Such changes could be
material.
Investors:
FTI Consulting(615) 234-8940IR@surgerypartners.com
Media:
FTI Consulting(212)
850-5681surgerypartners@fticonsulting.com
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