AmSurg blames storms, economy for flat 1st-qtr profit, cuts guidance for full year

AmSurg posts flat 1Q profit, cuts 2010 guidance

NASHVILLE, Tenn. — Outpatient surgery center operator AmSurg Corp. on Thursday said severe snowstorms and the weak economy kept its profit flat in the first quarter.

The company also cut its guidance for the year, sending shares down in aftermarket trading.

For the three months ended March 31, net income attributable to common shareholders was $12.7 million, or 42 cents per share, compared with $12.6 million, or 40 cents per share, in the 2009 first quarter.

Fewer shares outstanding in the recent quarter had the effect of increasing earnings per share.

The latest quarter’s results included a negative impact of a penny per share from the revision of the Medicare payment system.

Revenue rose nearly 6 percent to $172.5 million from $163.4 million.

Analysts polled by Thomson Reuters, on average, expected profit of 42 cents per share on revenue of $176.6 million.

Operating expenses rose 9 percent to $118.3 million from $108.5 million last year. The company had more centers in operation during the period and performed more procedures.

However, President and CEO Christopher A. Holden said storms in many of the company’s markets and the difficult economic environment hurt the number of procedures performed in centers that were open at least a year.

AmSurg now expects to post a profit from continuing operations between $1.69 and $1.75 per share for the year, down from a prior estimate of $1.77 to $1.80 per share. Revenue is expected to fall between $715 million and $735 million, below its previously forecast range between $720 million to $750 million, AmSurg said.

Wall Street expected full-year profit of $1.78 per share on revenue of $735.2 million.

AmSurg also issued second-quarter guidance for profit between 41 cents and 44 cents per share. Analysts expect profit of 46 cents per share, on average.

Shares of AmSurg fell 38 cents to close at $22.87.