Full Press Release Details
Earns $1.12 Per Share for 2010 Fourth Quarter
2011 First Quarter EPS Growth of 9 to 15 Percent
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--February 3, 2011--MEDNAX, Inc.
(NYSE: MD), the national medical group specializing in neonatal,
maternal-fetal, pediatric cardiology, other pediatric subspecialty and
anesthesia physician services today reported earnings per share of $1.12
for the three months ended December 31, 2010, that were driven by the
Company's successful acquisition efforts throughout the year.
MEDNAX's results from operations for the 2010 fourth quarter include
revenue growth of 10.6 percent and operating income growth of 10.9
percent compared to the prior-year period, when excluding the impact of
a favorable legal settlement in the 2009 fourth quarter.
During 2010, MEDNAX invested $343.0 million to complete 15 physician
group practice acquisitions, including two anesthesia practices acquired
during the 2010 fourth quarter, as well as to make contingent purchase
price payments for previously completed acquisitions.
"We enjoyed a record year adding physician groups and we continue to
achieve strong results from operations as we execute our strategy of
building our network across all of our physician specialties," said
Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. "We
are successfully integrating these recently acquired practices into our
Pediatrix Medical Group and American Anesthesiology national group
practices, identifying ways to improve the operations of these
practices. We continue to attract physician groups that are interested
in practicing as part of our national group because we bring the
administrative support and clinical quality tools that allow physicians
to focus on improving patient care."
MEDNAX believes that comparisons of its results from operations for the
three months and 12 months ended December 31, 2010, to the 2009 periods
are more meaningful if GAAP results are presented on a non-GAAP basis by
adjusting the following items:
Increasing general and administrative expenses for the three months
and 12 months ended December 31, 2009, by $1.8 million to exclude
proceeds related to the favorable settlement of a legal issue; and
Increasing the income tax provision by $10.9 million for the 12 months
ended December 31, 2010, to exclude the impact from the favorable
resolution of certain tax matters.
For the three months ended December 31, 2010, MEDNAX generated net
patient service revenue of $368.5 million, up 10.6 percent from $333.3
million for the comparable prior-year period.
MEDNAX's revenue growth was driven by contributions from acquisitions
completed since October 2009.
Same-unit revenue growth for the 2010 fourth quarter increased slightly,
by two-tenths of one percent from the prior-year period, with patient
volume growth of 1.6 percent that was offset by a 1.4 percent decline
due to reimbursement-related factors, net, that resulted from a shift
toward more of the Company's services reimbursed under lower-paying
government programs.
Same-unit revenue growth from patient volume for the 2010 fourth quarter
included growth from the Company's neonatal, anesthesia and pediatric
cardiology physician services, offset by lower patient volume at
maternal-fetal medicine practices. The number of neonatal intensive care
unit (NICU) patient days increased by 1.5 percent on a same-unit basis
for the 2010 fourth quarter, when compared to the prior-year period.
The percentage of patient services reimbursed under government programs
increased by 140 basis points, on a same-unit basis, for the 2010 fourth
quarter, when compared with the prior-year period. On a sequential
basis, same-unit payor mix shifted by 80 basis points toward a higher
percentage reimbursed under government programs.
Operating income for the 2010 fourth quarter was $85.9 million, up 10.9
percent from $77.4 million, non-GAAP, for the prior-year period. GAAP
operating income for the 2009 fourth quarter was $79.2 million. General
and administrative expenses were 10.7 percent of revenue for the 2010
fourth quarter, an improvement of 78 basis points from 11.5 percent,
non-GAAP, for the comparable 2009 period. General and administrative
expenses were 11.0 percent of revenue for the 2009 fourth quarter on a
Operating margin improved to 23.3 percent for the 2010 fourth quarter,
from 23.2 percent, non-GAAP, for the prior-year period, as a result of
revenue growth associated with the Company's acquisition efforts, offset
by a lower rate of same-unit revenue growth. Operating margin for the
2009 fourth quarter was 23.8 percent on a GAAP basis.
MEDNAX generated net income of $53.8 million for the 2010 fourth
quarter, or $1.12 per share based on a weighted average 48.0 million
shares outstanding. This compares with net income of $49.3 million, or
$1.05 per share on a non-GAAP basis, based on a weighted average 47.1
million shares outstanding for the 2009 fourth quarter. GAAP net income
for the 2009 fourth quarter was $50.4 million, or $1.07 per share.
For the 12 months ended December 31, 2010, MEDNAX reported revenue of
$1.4 billion, up 8.8 percent from $1.3 billion for the comparable
prior-year period. Operating income for 2010 was $312.9 million, up 9.0
percent, from $287.2 million, non-GAAP, for the prior year. GAAP
operating income for 2009 was $288.9 million.
MEDNAX's net income for 2010 was $191.8 million, or $4.03 per share,
non-GAAP, based on a weighted average 47.6 million shares outstanding,
which compares with $174.7 million, or $3.76 per share, non-GAAP, based
on a weighted average 46.5 million shares outstanding for 2009. GAAP net
income was $202.7 million or $4.26 per share for 2010, and $175.8
million, or $3.78 per share for 2009.
At December 31, 2010, MEDNAX had cash and cash equivalents of $26.3
million and net accounts receivable were $181.4 million. The Company had
$146.5 million outstanding on its $350 million revolving credit facility
at December 31, 2010.
For 2010, MEDNAX generated cash flow from operations of $240.6 million,
which included cash flow from operations of $85.1 million for the 2010
MEDNAX used $343.0 million of its cash and amounts available under its
revolving credit facility to complete 15 physician group practice
acquisitions and to make contingent purchase price payments for
previously completed acquisitions.
2011 First Quarter Outlook
MEDNAX expects earnings for the three months ending March 31, 2011, will