Andrew Mok's questions to Surgery Partners Inc (SGRY) leadership • Q3 2024
Question
Andrew Mok of Barclays sought clarification on the full-year free cash flow outlook, questioning if the prior target was still achievable given higher transaction costs. He also asked about the significant sequential decrease in G&A expenses.
Answer
Executive Chairman Wayne DeVeydt reiterated that the company is moving away from a static free cash flow metric because the dynamic nature of M&A deployment makes it less valuable. CFO David Doherty explained the sequential G&A decrease was due to a one-time $8 million stock-based compensation true-up in Q2, making the Q3 expense level in line with expectations when normalized.