Surgery Partners, Inc. · NASDAQ:SGRY

Surgery Partners — 37th Annual J.P. Morgan Healthcare Conference (January 2019)

14 slides from Surgery Partners's conference presentation, January 2019

  1. Slide 1: Corporate Presentation

    Corporate Presentation January 2019

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer Forward-Looking Statements Statements contained in this presentation, including the question and answer portion of the presentation, other than statements of historical fact, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as

  3. Slide 3: Leading Independent Surgical Facility Operator

    Leading Independent Surgical Facility Operator $230-$235 million 32 States ADJUSTED EBITDA GUIDANCE FOR FY’18 109 ASCs 18 Surgical Hospitals 4,000 Affiliated Physicians 600,000+ Annual Patients 3

  4. Slide 4: Diversified Mix, Focused on High Value-Add Specialties, Supported by an Aging Population

    Diversified Mix, Focused on High Value-Add Specialties, Supported by an Aging Population Surgery Partners Case Mix Other(2)  Strength with high acuity patients Musculoskeletal(1) 15% 35%  Leading musculoskeletal platform GI 22%  Expansive network of surgical capabilities 28%  Leading trend to lo

  5. Slide 5: Leading Musculoskeletal Platform is Key to Future Growth

    Leading Musculoskeletal Platform is Key to Future Growth 2x $7 billion 100 million Increase in hip revision Annual Medicare spend on Adults in the U.S. with procedures projected by 2026 total joint procedures(1) chronic pain(2)  Leading national musculoskeletal surgical facilities operator  Reduce

  6. Slide 6: Well Positioned to Capture Incremental Share in a Fragmented Market

    Well Positioned to Capture Incremental Share in a Fragmented Market Number of ASCs in the U.S. ’06-’16A CAGR 4,608 5,591 Total: +2% 64% 58% Independents +1% 14% Other Hospitals +1% 16% 20% 28% National Operators +5% 2006 2016 6 Source: Definitive Healthcare

  7. Slide 7: Strong, Vertically Integrated Management Team…

    Strong, Vertically Integrated Management Team… Angela Justice, PhD Carollee Brinkman EVP & Chief Human Resources National Group President Officer 22 Years Healthcare Experience 16 Years Healthcare Experience 13 Years with Surgery Partners 01 Year with Surgery Partners Wayne DeVeydt Chief Executive O

  8. Slide 8: … That has Built a Solid Foundation to Capture Growth

    … That has Built a Solid Foundation to Capture Growth Where We Were Where We Are Solid, but un-pruned assets Streamlined, surgical facility assets Great platform, but fragmented Holistic infrastructure Lack of strategic clarity Focused management and vision FROM: A collection of great assets, TO: …

  9. Slide 9: Three Primary Initiatives to Drive Profitability and Scale

    Three Primary Initiatives to Drive Profitability and Scale  Data-driven strategic assessment of opportunities and challenges across portfolio Pruning the  Divested or shut-down underperforming sites Asset Base  Instilled a purpose-driven culture based on transparency, execution, and accountabilit

  10. Slide 10: Financial Update

    Financial Update

  11. Slide 11: Q3 2018 Performance Review

    Q3 2018 Performance Review  Q3 2018 total net revenues of $443.9 million increased 44.9% from $306.3 million for the third quarter of 2017  Surgical cases increased 13.9% from Q3 2017 to 127,199 cases Q3 Financial  Same-facility revenues increased 11.4% from the same period last year Performance

  12. Slide 12: Attractive Financial Profile

    Attractive Financial Profile Net Revenue Adjusted EBITDA(1) ($Millions) ($Millions) $1,766.4 $1,341.2 $225.4 $1,145.4 $179.3 $164.3 2016 2017 9/30/18 LTM 2016 2017 9/30/18 LTM Case Volume Net Revenue per Case 519,821 $3,398 468,443 $2,863 $2,672 428,742 2016 2017 9/30/18 LTM 2016 2017 9/30/18 LTM (1

  13. Slide 13: Three Pillars of Profit Growth

    Three Pillars of Profit Growth Organic Fit For Growth M&A Corporate and Seeking to 2% to 3% Volume organizational execute in high- 2% to 3% Rate synergies to drive growth specialties Revenue Cycle margin at attractive Management improvement values 4-6% CAGR 3-5% CAGR 3-5% CAGR +10-16% CAGR Long Term

  14. Slide 14: Reconciliation to Adjusted EBITDA

    Reconciliation to Adjusted EBITDA 2016 2017 3Q 2017 3Q 2018 LTM 9/30/18 Income (Loss) Before Income Taxes $ 92.2 $ 82.3 $ (19.2) $ 7.8 $ 95.2 Minus: Net Income Attributable to Non-Controlling Interests 75.6 81.7 15.3 23.0 102.5 Plus: Depreciation and amortization 39.5 51.9 10.9 17.0 67.7 Interest ex

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