SEC Filings

10-Q
AMSURG CORP filed this Form 10-Q on 11/12/1997
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 nine month periods ended September 30,
1997 and 1996:


<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED    NINE MONTHS ENDED
                                                              SEPTEMBER 30,         SEPTEMBER 30,
                                                           ------------------    -----------------
                                                            1997      1996        1997      1996
                                                            -----     -----       -----     -----
                                                                               
<S>                                                         <C>       <C>         <C>       <C>   
       Revenues                                             100.0%    100.0%      100.0%    100.0%
       Expenses:                                                               
           Salaries and benefits                             30.5      34.6        30.5      33.1
           Other operating expenses                          35.0      33.7        35.4      32.9
           Depreciation and amortization                      8.8       8.7         8.5       8.7
           Interest                                           2.9       2.8         2.8       2.8
           Net (gain) loss on sale of assets                 (5.6)     --           3.6      --
           Distribution cost                                  3.1      --           1.1      --
                                                            -----     -----       -----     -----
                                                                               
              Total expenses                                 74.7      79.8        81.9      77.5
                                                            -----     -----       -----     -----
                                                                               
              Income before minority interest and 
                  income taxes                               25.3      20.2        18.1      22.5
       Minority interest                                     15.2      14.8        15.7      15.6
                                                            -----     -----       -----     -----
                                                                               
              Income before income taxes                     10.1       5.4         2.4       6.9
       Income taxes                                           3.7       2.2         3.1       2.7
                                                            -----     -----       -----     -----
                                                                               
              Net income (loss)                               6.4       3.2        (0.7)      4.2
       Accretion of preferred stock discount                  0.5      --           0.5      --
                                                            -----     -----       -----     -----
                                                                               
              Net income (loss) attributable to common                         
                  stockholders                                5.9%      3.2%       (1.2)%     4.2
                                                            =====     =====       =====     =====
</TABLE>

                                                                            
       Revenues were $14.6 million and $41.2 million for the three months and
nine months ended September 30, 1997, respectively, an increase of $5.8 million
and $17.1 million, or 66% and 71%, respectively, over revenues for the
comparable periods in 1996. The increase is primarily attributable to additional
centers in operation during the 1997 periods and the acquisition of a urology
physician practice on January 1, 1997. Excluding the three centers which were
disposed of as described below, same-center revenues for the three and nine
month periods ended September 30, 1997 increased by 8% and 6%, respectively.
Same-center growth resulted from increased case volume and increases in fees.
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 was $4.4 million and $12.6 million for the
three months and nine months ended September 30, 1997, respectively, an increase
of $1.4 million and $4.6 million, or 46% and 57%, respectively, over salaries
and benefits expense for the comparable periods in 1996. Other operating
expenses were $5.1 million and $14.6 million for the three months and nine
months ended September 30, 1997, respectively, an increase of $2.1 million and
$6.6 million, or 73% and 84%, 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 66% for the three
month and nine month periods ended September 30, 1997, compared with 68% and 66%
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 contracted physician
services for the urology practice acquired in January 1997.


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