AmSurg raises profit target

Nashville-based AmSurg Corp. (AMSG) has raised its revenue and earnings per share projections for the year thanks to a positive

Nashville-based AmSurg Corp. (AMSG) has raised its revenue and earnings per share projections for the year thanks to a positive third quarter reported today by the ambulatory surgery center company. AmSurg predicts its revenues will grow 21 – 22 percent to $245 million - $248 million for the year, while earnings per share will rise 47 percent to $1.15 per share (17 cents of which is due to the adoption of FAS 142).

The company posted a 23 percent increase in revenue to $63.3 million and a 58 percent share in net earnings and earnings per share to $6.2 million, or 30 cents a share. Same-store revenue was up 13 percent for the quarter.

In a press release issued today, Chief Executive Ken McDonald said the company’s cash flow was more than two times earnings per share for the first nine months of 2002.

AmSurg finished the quarter with 101 centers in operation, seven under development, two waiting Certificate of Need approval and eight under letter of intent. It reaffirmed its goal to add 12 – 15 new centers through de novo development or acquisition through 2003.

The company also reaffirmed its guidance growth for 2003 of 22 – 25 percent growth in earnings per diluted share.

Its stock was down 2.4% in late afternoon trading to $30.51 on lower than average volume of 152,419.