Full Press Release Details
Earns $1.15 Per Share for 2011 Second Quarter
Third Quarter EPS of $1.15 to $1.20
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--August 2, 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 $1.15
for the three months ended June 30, 2011.
MEDNAX's results from operations for the 2011 second quarter include
revenue growth of 12.7 percent and operating income growth of 13.4
percent compared to the prior-year period.
"We continue to generate strong financial results that are the product
of the deliberate management of our national medical group," said Roger
J. Medel, M.D., Chief Executive Officer of MEDNAX. "Our second quarter
results also demonstrate the effectiveness of our model of successfully
integrating acquired physician groups into our clinical and
administrative infrastructure."
For the three months ended June 30, 2011, MEDNAX generated net patient
service revenue of $393.4 million up 12.7 percent from $349.1 million
for the comparable prior-year period.
MEDNAX's revenue growth attributable to contributions from recently
acquired practices was 10 percent, while same-unit revenue grew by 2.7
percent for the 2011 second quarter when compared to the 2010 second
Same-unit revenue growth from reimbursement-related factors was 1.8
percent for the 2011 second quarter, and was due principally to
increased payments received from third-party commercial payors as a
result of the Company's ongoing contract renewal processes. The
percentage of services reimbursed under government programs increased
slightly, 20 basis points, during the 2011 second quarter when compared
to the prior-year period.
Same-unit patient volume grew by 0.9 percent for the 2011 second quarter
when compared to the prior-year period and includes volume growth from
pediatric cardiology, anesthesia, neonatal and other pediatric physician
services, offset by a slight decline in patient volume for the Company's
maternal-fetal medicine services. For the 2011 second quarter, same-unit
neonatal intensive care unit patient days increased by 0.4 percent when
compared to the prior-year period.
Operating income for the 2011 second quarter was $93.1 million, up 13.4
percent from $82.1 million for the prior-year period while operating
margin improved by 15 basis points, to 23.7 percent, on a year-over-year
comparison. MEDNAX's operating income growth continues to exceed revenue
growth as the Company successfully integrates newly acquired physician
group practices into its established operations infrastructure. For the
2011 second quarter general and administrative expenses declined by 37
basis points as a percent of revenue, to 10.9 percent when compared to
the prior-year period.
MEDNAX's net income grew by 13.3 percent for the 2011 second quarter, to
$55.9 million from $49.4 million for the prior-year period. Earnings per
share was $1.15 for the three months ended June 30, 2011, based on a
weighted average 48.7 million shares outstanding, which compares with
earnings per share of $1.04, based on a weighted average 47.5 million
shares outstanding for the 2010 second quarter.
Through the first half of 2011, MEDNAX has generated revenue of $775.7
million, up 13.7 percent from $682.0 million for the prior-year period.
Operating income for the six months ended June 30, 2011, grew by 15.9
percent to $168.8 million, up from $145.7 million for the first half of
2010. MEDNAX earned net income of $101.4 million, or $2.09 per share
through June 30, 2011, based on a weighted average 48.5 million shares
outstanding, which compares to net income of $87.6 million, or $1.85 per
share based on a weighted average 47.4 million shares outstanding for
the first half of 2010.
At June 30, 2011, MEDNAX had cash and cash equivalents of $24.0 million
and net accounts receivable were $194.0 million. The Company had $66.0
million outstanding on its $350 million revolving credit facility at
During the 2011 second quarter, MEDNAX generated cash flow from
operations of $95.3 million.
2011 Third Quarter Outlook
For the 2011 third quarter, MEDNAX expects that earnings will be in a
range of $1.15 to $1.20 per share. This outlook assumes that total
same-unit revenue for the three months ended September 30, 2011, will
grow by 2 percent to 4 percent from the prior-year period. This
same-unit growth forecast is expected to be evenly divided between
patient volume growth across all MEDNAX physician specialties, and net
reimbursement growth, including the mix of services reimbursed under
commercial and government payor programs and improvements from
commercial contract rates.
The outlook for the 2011 third quarter includes contributions from
acquisitions completed through August 1, 2011.
Earnings conference call
MEDNAX, Inc., will host an investor conference call to discuss the
quarterly results at 10 a.m., Eastern Time today. The conference call
Webcast may be accessed from the Company's Website, www.mednax.com.
A telephone replay of the conference call will be available from noon
Eastern Time today through midnight Eastern Time August 16, 2011, by
dialing 800-475-6701, access code 209457. The replay will also be
available at www.mednax.com.
MEDNAX, Inc., is a national medical group that comprises the nation's
leading provider of neonatal, maternal-fetal and pediatric physician
subspecialty services as well as anesthesia services. Physicians and
advanced practitioners practicing as part of MEDNAX are reshaping the
delivery of care within their specialties and subspecialties, using
evidence-based tools, continuous quality initiatives and clinical
research to enhance patient outcomes and provide high-quality,
cost-effective care. Pediatrix Medical Group, a unit of MEDNAX, was
founded in 1979 and now includes neonatal physicians who provide
services at more than 300 neonatal intensive care units, who collaborate
with affiliated maternal-fetal medicine, pediatric cardiology and
pediatric critical care physician subspecialists to provide a clinical
care continuum. Pediatrix is also the nation's largest provider of
newborn hearing screens. In 2007, the Company expanded into anesthesia
services. Today, American Anesthesiology includes more than 750