SEC Filings

10-Q
AMSURG CORP filed this Form 10-Q on 08/14/1997
Entire Document
 
<PAGE>   9

RESULTS OF OPERATIONS

The following table shows certain statement of operations items expressed as a
percentage of revenues for the three and six month periods ended June 30, 1997
and 1996:


<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED       SIX MONTHS ENDED
                                                                          JUNE 30,               JUNE 30,
                                                                    ------------------       ----------------
                                                                    1997         1996        1997        1996
                                                                    ----         ----        ----        ----
       <S>                                                          <C>         <C>          <C>         <C>
       Revenues                                                     100.0%      100.0%       100.0%      100.0%
       Expenses:
           Salaries and benefits                                     29.6        33.1         30.5        32.3
           Other operating expenses                                  35.8        33.2         35.6        32.3
           Depreciation and amortization                              8.2         8.1          8.4         8.7
           Interest                                                   2.8         2.6          2.7         2.8
           Impairment loss                                            -           -            8.7         -
                                                                     ----        ----         ----        ----

              Total expenses                                         76.4        77.0         85.9        76.1
                                                                     ----        ----         ----        ----

              Income before minority interest and income taxes       23.6        23.0         14.1        23.9
       Minority interest                                             16.4        15.5         15.9        16.1
                                                                     ----        ----         ----        ----

              Income (loss) before income taxes                       7.2         7.5         (1.8)        7.8
       Income taxes                                                   2.9         3.0          2.8         3.1
                                                                     ----        ----         ----        ----

              Net income (loss)                                       4.3         4.5         (4.6)        4.7
       Accretion of preferred stock discount                           .5         -             .5         -
                                                                     ----        ----         ----        ----

              Net income (loss) attributable to common
                  stockholders                                        3.8%        4.5%       (5.1)%       4.7%
                                                                     ====        ====         ====        ====
</TABLE>


       Revenues were $14.0 million and $26.6 million for the three months and
six months ended June 30, 1997, respectively, an increase of $5.8 million and
$11.3 million, or 72% and 74%, respectively, over revenues for the comparable
periods in 1996. Excluding the two centers which are owned by the partnership in
which the impairment loss as described below was recorded, same-center revenues
for the three and six month periods ended June 30, 1997 increased by 5% and 6%,
respectively. Same-center growth resulted from increased case volume and
increases in fees. The remaining increase in revenues was the result of
additional centers in operation since January 1, 1996 and the acquisition of a
urology physician practice on January 1, 1997. The Company anticipates further
revenue growth during the remainder of 1997 as a result of additional start-up
and acquisition centers placed in operation and from same-center revenue growth.

       Salaries and benefits expense were $4.1 million and $8.1 million for the
three months and six months ended June 30, 1997, respectively, an increase of
$1.4 million and $3.2 million, or 54% and 64%, respectively, over salaries and
benefits expense for the comparable periods in 1996. Other operating expenses
were $5.0 million and $9.5 million for the three months and six months ended
June 30, 1997, respectively, an increase of $2.3 million and $4.5 million, or
85% and 91%, respectively, over other operating expenses for the comparable
periods in 1996. These increases resulted primarily from additional centers in
operation, the acquisition of the interest in the urology physician practice and
from an increase in corporate staff primarily to support growth in the number of
centers in operation and anticipated future growth. Salaries and benefits
expense and other operating expenses in the aggregate as a percentage of
revenues remained comparable at approximately 65% and 66% for the three month
and six month periods ended June 30, 1997, respectively, compared with 66% and
65% for the comparable periods during fiscal 1996. However, salaries and
benefits expense as a percentage of revenues decreased during the 1997 periods
while other operating expenses as a percentage of revenues increased
proportionately during the 1997 periods compared to the 1996 periods due to the
inclusion of contracted physician services within other operating expenses for
the urology practice acquired in January 1997.



                                        9