Reissuing release dated April 26, 2006 to correct ticker symbol for
searching purposes. The release reads: SYMBION, INC. ANNOUNCES
FIRST QUARTER RESULTS Symbion, Inc. (NASDAQ/NM:SMBI): Highlights
for First Quarter 2006: -- Revenues increased 17%; -- Earnings per
diluted share were $0.21, after a $0.03 impact related to non-cash
stock option compensation expense, compared with $0.20 for the
first quarter of 2005; and -- The Company announces acquisition of
2 facilities. Symbion, Inc. (NASDAQ/NM:SMBI), an owner and operator
of short stay surgery centers, announced today results for the
first quarter ended March 31, 2006. For the first quarter ended
March 31, 2006, revenues increased 17% to $72.8 million compared
with $62.2 million for the first quarter ended March 31, 2005. Net
income for the first quarter of 2006 increased 5% to $4.6 million
compared with $4.4 million for the first quarter of 2005. Net
income of $4.6 million is after the impact of $644,000 of non-cash
stock option compensation expense recorded in accordance with the
Company's adoption of Statement of Financial Accounting Standards
("SFAS") No. 123(R), "Share-Based Payment." The Company adopted
SFAS No. 123(R) on January 1, 2006, therefore no expense was
recorded during 2005 related to the Company's non-cash stock option
compensation. Earnings per diluted share for the first quarter of
2006 increased $0.01 to $0.21, after the impact of $0.03 per
diluted share related to the Company's non-cash stock option
compensation, compared with $0.20 for the first quarter of 2005. In
addition, the first quarter results also reflect a gain of $0.01
per diluted share related to a litigation settlement and insurance
proceeds related to the hurricanes that affected the Company during
the third quarter of 2005. EBITDA increased 12% to $12.7 million
for the first quarter of 2006, after $1.1 million related to the
Company's non-cash stock option compensation expense, compared with
$11.3 million for the first quarter of 2005. Same store net patient
service revenues for the first quarter of 2006 increased 5%
compared with the same period in 2005. At March 31, 2006, the
Company's outstanding indebtedness was $110.0 million with a ratio
of debt to total capitalization of 29%. Commenting on the first
quarter results, Richard E. Francis, Jr., chairman and chief
executive officer of Symbion, said, "The first quarter results met
our expectations and put us on target to achieve our earnings per
share targets for full year 2006. We continue to integrate recent
acquisitions into our system, and we are focused on adding new
services that will drive organic growth. We are excited about 2006
and believe that the Company is on track for another outstanding
year." The Company confirmed its guidance for 2006 of revenues in
the range of $300 million to $305 million and updated its earnings
per diluted share guidance to a range of $0.88 to $0.91 after
reflecting the estimated expense of $0.11 per diluted share from
the Company's implementation on January 1, 2006, of SFAS No.
123(R). The Company continues to anticipate same store net patient
service revenue growth of 5% to 8% over 2005. The Company's
guidance does not include the impact from 2006 acquisitions. On
March 1, 2006, the Company acquired a majority interest and
consolidating position in Cypress Surgery Center, LLC, a
multi-specialty ambulatory surgery center located in Wichita,
Kansas. Cypress Surgery Center, with six operating rooms and two
special procedure rooms, began operations in July 2000. On April 1,
2006, the Company acquired a majority interest and consolidating
position in The Center for Special Surgery, LLC, a multi-specialty
ambulatory surgery center located in Greenville, South Carolina.
The Center for Special Surgery, LLC began operations in September
2002 and includes two operating rooms and one minor procedure room.
In closing, Mr. Francis added, "We continue to evaluate potential
acquisitions and de novo opportunities in what we consider to be a
very active pipeline. There are ample opportunities to allow us to
be very selective and achieve our 2006 development goals of three
to four acquisitions and three to four de novos. We are very
pleased with our development progress in 2006." The live broadcast
of Symbion's first quarter 2006 conference call will begin at 10:00
a.m. Eastern Time on April 27, 2006. An online replay of the call
will be available for 30 days following the conclusion of the live
broadcast. A link for these events can be found on the Company's
website at www.symbion.com or at www.earnings.com. As of April 26,
2006, the Company owned and operated a network of 62 short stay
surgery centers in 23 states, including the Company's April 1,
2006, acquisition of the surgery center located in Greenville,
South Carolina. Symbion, Inc., is headquartered in Nashville,
Tennessee. The Company's surgery centers provide non-emergency
surgical procedures across many specialties. This press release
contains forward-looking statements based on management's current
expectations and projections about future events and trends that
they believe may affect the Company's financial condition, results
of operations, business strategy and financial needs. The words
"anticipate," "believe," "continue," "estimate," "expect,"
"intend," "may," "plan," "will" and similar expressions are
generally intended to identify forward-looking statements. These
statements, including those regarding the Company's growth and
continued success, have been included in reliance on the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements involve risks, uncertainties and other
factors that may cause actual results to differ from the
expectations expressed in the statements. Many of these factors are
beyond the ability of the Company to control or predict. These
factors include, without limitation: (i) the Company's dependence
on payments from third-party payors, including government health
care programs and managed care organizations; (ii) the Company's
ability to acquire and develop additional surgery centers on
favorable terms; (iii) numerous business risks in acquiring and
developing additional surgery centers, including potential
difficulties in operating and integrating such surgery centers;
(iv) efforts to regulate the construction, acquisition or expansion
of health care facilities; (v) the risk that the Company's revenues
and profitability could be adversely affected if it fails to
attract and maintain good relationships with the physicians who use
its facilities; (vi) the Company's ability to comply with
applicable laws and regulations, including health care regulations,
corporate governance laws and financial reporting standards; (vii)
risks related to the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 and future legislation, which could
restrict the Company's ability to operate its facilities licensed
as hospitals and could adversely impact its reimbursement revenues;
(viii) the risk of changes to physician self-referral laws that may
require the Company to restructure some of its relationships, which
could result in a significant loss of revenues and divert other
resources; (ix) the Company's significant indebtedness; (x) the
intense competition for physicians, strategic relationships,
acquisitions and managed care contracts, which may result in a
decline in the Company's revenues, profitability and market share;
(xi) the geographic concentration of the Company's operations,
which makes the Company particularly sensitive to regulatory,
economic and other conditions in certain states; (xii) the
Company's dependence on its senior management; (xiii) the Company's
ability to enhance operating efficiencies at its surgery centers;
and (xiv) other risks and uncertainties detailed from time to time
in the Company's filings with the Securities and Exchange
Commission. In light of the significant uncertainties inherent in
the forward-looking statements contained in this press release, you
should not place undue reliance on them. The Company undertakes no
obligation to update any forward-looking statements or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise. -0- *T SYMBION, INC.
Unaudited Condensed Consolidated Statement of Operations (in
thousands, except per share amounts) Three Months Ended March 31,
------------------ 2006 2005 -------- -------- Revenues $72,769
$62,179 Operating expenses: Salaries and benefits, after $79 and
$0, respectively, of non-cash stock based compensation expense
19,506 16,008 Supplies 13,926 11,453 Professional and medical fees
3,364 3,319 Rent and lease expense 4,717 3,830 Other operating
expenses 4,920 4,588 -------- -------- Cost of revenues 46,433
39,198 General and administrative expense, after $1,013 and $0,
respectively, of non-cash stock based compensation expense 6,538
5,402 Depreciation and amortization 3,745 3,146 Provision for
doubtful accounts 643 714 Income on equity investments (245) (284)
Impairment and loss on disposal of long-lived assets 39 109 Gain on
sale of long-lived assets -- (241) Proceeds from insurance
settlement (410) -- Proceeds from litigation settlement (588) --
-------- -------- Total operating expenses 56,155 48,044 --------
-------- Operating income 16,614 14,135 Minority interests in
income of consolidated subsidiaries (7,675) (5,969) Interest
expense, net (1,497) (1,034) -------- -------- Income before income
taxes 7,442 7,132 Provision for income taxes 2,865 2,746 --------
-------- Net income $4,577 $4,386 ======== ======== Net income per
share: Basic $0.21 $0.21 ======== ======== Diluted $0.21 $0.20
======== ======== Weighted average number of common shares
outstanding and common equivalent shares: Basic 21,461 21,119
Diluted 22,135 21,775 SYMBION, INC. Condensed Consolidated Balance
Sheets (dollars in thousands) March 31, Dec. 31, 2006 2005 --------
-------- (Unaudited) (Audited) ASSETS Current assets: Cash and cash
equivalents $27,040 $28,434 Accounts receivable, less allowance for
doubtful accounts 33,432 32,487 Inventories 7,802 7,572 Prepaid
expenses and other current assets 9,264 8,002 -------- --------
Total current assets 77,538 76,495 Property and equipment, net of
accumulated depreciation 74,169 73,410 Goodwill 280,714 268,312
Other intangible assets, net 576 650 Investments in and advances to
affiliates 13,829 13,770 Other assets 4,280 3,741 -------- --------
Total assets $451,106 $436,378 ======== ======== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,997
$6,727 Accrued payroll and benefits 6,493 8,680 Other accrued
expenses 12,314 10,957 Current maturities of long-term debt 1,306
1,347 -------- -------- Total current liabilities 25,110 27,711
Long-term debt, less current maturities 108,687 101,969 Other
liabilities 20,665 17,845 Minority interests 30,082 28,795 Total
stockholders' equity 266,562 260,058 -------- -------- Total
liabilities and stockholders' equity $451,106 $436,378 ========
======== SYMBION, INC. Supplemental Operating Data (dollars in
thousands, except per case and per share data) Three Months Ended
March 31, ------------------ 2006 2005 -------- -------- Same store
statistics (1): Cases 56,780 54,985 Cases percentage growth 3.3%
N/A Net patient service revenue per case $1,193 $1,169 Net patient
service revenue per case percentage growth 2.1% N/A Number of same
store surgery centers 44 N/A Consolidated Statistics: Cases 56,456
50,413 Cases percentage growth 12.0% N/A Net patient service
revenue per case $1,219 $1,171 Net patient service revenue per case
percentage growth 4.0% N/A Number of surgery centers operated as of
end of period (2) 61 56 Number of states in which the Company
operates surgery centers 22 21 Revenues: Net patient service
revenues $68,811 $59,057 Physician service revenues 1,140 1,044
Other service revenues 2,818 2,078 -------- -------- Total revenues
$72,769 $62,179 ======== ======== Cash flow information: Net cash
provided by operating activities $6,734 $6,708 Net cash used in
investing activities (15,050) (8,439) Net cash provided by
financing activities 6,922 2,134 Other information: EBITDA,(3)
after $1,092 and $0, respectively, of non-cash stock compensation
expense $12,684 $11,312 (1) For purposes of this release, the
Company defines same store facilities as those centers that the
Company owned an interest in and managed throughout both of the
respective periods shown or those centers opened in a market in
which the Company already has a presence. Same store facilities
include centers that the Company does not consolidate for financial
reporting purposes. (2) The data for 2006 and 2005 includes nine
surgery centers that the Company managed but in which it did not
have an ownership interest. (3) When the Company uses the term
"EBITDA", it is referring to net income plus (a) income tax
expense, (b) interest expense, net and (c) depreciation and
amortization. The Company's calculation of EBITDA is after minority
interests expense. Minority interests expense represents the
interests of third parties, such as physicians, hospitals and other
health care providers, that own interests in surgery centers that
we consolidate for financial reporting purposes. The Company's
operating strategy involves sharing ownership of its surgery
centers with physicians, physician groups and hospitals, and these
third parties own an interest in all but one of the Company's
centers. The Company believes that it is helpful to investors to
present EBITDA as defined above because it excludes the portion of
net income attributable to these third-party interests. The Company
uses EBITDA as a measure of liquidity. The Company has included it
because the Company believes that it provides investors with
additional information about the Company's ability to incur and
service debt and make capital expenditures. The Company also uses
EBITDA, with some variation in the calculation, to determine
compliance with some of the covenants under the Company's senior
credit facility, as well as to determine the interest rate and
commitment fee payable under the senior credit facility. EBITDA is
not a measurement of financial performance or liquidity under
generally accepted accounting principles. It should not be
considered in isolation or as a substitute for net income,
operating income, cash flows from operating, investing or financing
activities, or any other measure calculated in accordance with
generally accepted accounting principles. The items excluded from
EBITDA are significant components in understanding and evaluating
financial performance and liquidity. The Company's calculation of
EBITDA is not comparable to the EBITDA measure the Company has used
in certain prior periods but is consistent with the measure EBITDA
less minority interests previously reported. The Company's
calculation of EBITDA may not be comparable to similarly titled
measures reported by other companies. The following table
reconciles EBITDA to net cash provided by operating activities:
Three Months Ended (in thousands) March 31, ------------------ 2006
2005 -------- -------- EBITDA $12,684 $11,312 Depreciation and
amortization (3,745) (3,146) Interest expense, net (1,497) (1,034)
Income taxes (2,865) (2,746) -------- -------- Net income 4,577
4,386 Depreciation and amortization 3,745 3,146 Non-cash
compensation expense 1,092 -- Non-cash gains and losses (711) (132)
Minority interests in income of consolidated subsidiaries 7,675
5,969 Income taxes 2,865 2,746 Distributions to minority partners
(6,072) (4,734) Income on equity investments (245) (284) Provision
for doubtful accounts 643 714 Changes in operating assets and
liabilities, net of effects of acquisitions and dispositions:
Accounts receivable (661) (415) Other assets and liabilities
(6,174) (4,688) -------- -------- Net cash provided by operating
activities $6,734 $6,708 ======== ======== *T
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