Full Press Release Details
Earns $1.32 Per Share for 2012 Fourth Quarter
Net Income Increases by over 10%
First Quarter 2013 EPS of $1.05 to $1.10
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--January 31, 2013--MEDNAX, Inc.
(NYSE: MD), the national medical group specializing in neonatal,
maternal-fetal, pediatric cardiology, other pediatric subspecialties and
anesthesia physician services, today reported earnings of $1.32 per
share for the three months ended December 31, 2012.
For the 2012 fourth quarter compared to the prior year period, MEDNAX
Revenue growth of 16.4 percent to $471.3 million;
Net income growth of over 13 percent to $66.1 million; and
Cash flow from operations growth of approximately 18 percent to $106
For the 2012 full year compared to the prior year period, MEDNAX
Revenue growth of 14.4 percent to $1.82 billion;
Net income growth of over 10 percent to $240.9 million; and
Cash flow from operations growth of approximately 20 percent to $326
During 2012, a total of 16 physician group practices have become part of
MEDNAX, with eight physician group practices becoming part of American
Anesthesiology and eight group practices becoming part of Pediatrix
"Our solid 2012 fourth quarter and full year results reflect our unique,
proven, and time-tested growth model of attracting, acquiring and
integrating physician group practices," said Roger J. Medel, M.D., Chief
Executive Officer of MEDNAX. "We are very encouraged by the strategic
roadmap that we have planned out for 2013, which reflects the size,
depth and breadth of our full and robust pipeline. This acquisition
pipeline is a result of the core competencies and operational strengths
that bring practices to our national group practice model, along with
the uncertainties related to the ever-changing healthcare and regulatory
For the three months ended December 31, 2012, MEDNAX's net patient
service revenue increased by 16.4 percent, to $471.3 million, from
$404.9 million for the comparable prior-year period.
MEDNAX's revenue growth attributable to contributions from recently
acquired practices was 13.3 percent, while overall same-unit revenue
grew by 3.1 percent when compared to the 2011 fourth quarter.
Same-unit growth attributable to patient volume grew by 2.2 percent for
the 2012 fourth quarter when compared to the prior-year period, driven
by growth in our hospital-based neonatal and other pediatric physician
services, primarily newborn nursery services, as well as anesthesia
services and maternal-fetal medicine services, partially offset by a
decline in our office-based pediatric cardiology services. For the 2012
fourth quarter, same-unit neonatal intensive care unit (NICU) patient
days increased by 3.0 percent when compared to the prior-year period.
Same-unit growth from net reimbursement-related factors was 0.9 percent.
This was principally due to continued modest improvements in
reimbursements received from third-party commercial payors as a result
of the Company's ongoing contract renewal processes and the flow through
of revenue from modest price increases, partially offset by a shift in
payor mix to government payors from commercial payors, year-over-year.
The percentage of services reimbursed under government programs shifted
by approximately 140 basis points toward a higher percentage of services
reimbursed under government programs for the 2012 fourth quarter when
compared with the prior-year period. On a sequential basis, same-unit
payor mix shifted by approximately 20 basis points toward a higher
percentage of services reimbursed under government-sponsored programs.
For the 2012 fourth quarter, operating income was $103.0 million, up
12.6 percent from $91.5 million for the prior-year period. Operating
margin decreased to 21.9 percent for the 2012 fourth quarter, from 22.6
percent for the prior-year period, primarily as a result of variability
in margins due to the mix of practices acquired since October 2011 along
with an increase in operating expenses during the 2012 fourth quarter as
compared to the 2011 fourth quarter.
General and administrative expenses were 10.7 percent of revenue for the
2012 fourth quarter, up slightly as compared to the prior-year period.
MEDNAX generated net income of $66.1 million for the 2012 fourth
quarter, or $1.32 per share based on a weighted average 50.1 million
shares outstanding. This compares with net income of $58.4 million, or
$1.19 per share for the 2011 fourth quarter, based on a weighted average
49.1 million shares outstanding.
For the full year ended December 31, 2012, MEDNAX generated revenue of
$1.82 billion, up 14.4 percent from $1.59 billion for the prior-year
period. Operating income for the full year 2012 grew by 9.6 percent to
$389.5 million, up from $355.4 million for the prior-year period. MEDNAX
earned net income of $240.9 million, or $4.85 per share for the full
year ended December 31, 2012, based on a weighted average 49.7 million
shares outstanding, which compares to net income of $218.0 million, or
$4.47 per share based on a weighted average 48.8 million shares
outstanding for the prior year.
At December 31, 2012, MEDNAX had cash and cash equivalents of $21.3
million and net accounts receivable were $248.1 million. The Company had
$144.0 million outstanding on its $800 million revolving credit facility
at December 31, 2012.
For the full year ended December 31, 2012, MEDNAX generated cash flow
from operations of $325.7 million, including cash flow from operations
of $106.0 million for the 2012 fourth quarter.
MEDNAX also used $451.2 million of its cash during 2012 to acquire 16
group practices and to make contingent purchase price payments for
previously completed acquisitions, of which $244.0 million was used
during the 2012 fourth quarter. The six group practices acquired during
the fourth quarter include three anesthesiology, one pediatric
hospitalist, one maternal-fetal medicine, and one pediatric surgery
2013 First Quarter Outlook
For the 2013 first quarter, MEDNAX expects earnings will be in a range
of $1.05 to $1.10 per share. This outlook assumes that total same-unit
revenue growth for the three months ended March 31, 2013 will grow by
1.0 percent to 3.0 percent from the prior-year period. This same-unit
growth forecast is expected to be divided evenly between patient volume,
assuming growth across all MEDNAX physician specialties and net
reimbursement growth, including improvements from commercial payor
contracts, offset by variability in the mix of our services reimbursed
under government payor programs. As a reminder, we have experienced