Full Press Release Details
Earns $1.32 Per Share for 2012 Third Quarter
Third Quarter Earnings Guidance
Fourth Quarter EPS of $1.27 to $1.32
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--November 1, 2012--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 September 30, 2012.
For the 2012 third quarter compared to the prior year period, MEDNAX
Revenue growth of 16 percent to $473.1 million;
Net income growth of 13 percent to $65.9 million; and
Cash flow from operations of $134.7 million.
"Our strong 2012 third quarter results underscore our continuing ability
to effectively grow through the significant contributions we're
generating from our ongoing acquisition program," said Roger J. Medel,
M.D., Chief Executive Officer of MEDNAX. "These operating results
demonstrate our financial strength, including our solid balance sheet
and cash flow from operations, which gives us confidence as we pursue
anesthesia as our future growth platform and continue to grow our
operations across all our physician specialties. We are managing a very
full and deep acquisition pipeline across anesthesia, as well as all of
our physician specialties."
For the three months ended September 30, 2012, MEDNAX's net patient
service revenue increased by 16.1 percent, to $473.1 million, from
$407.7 million for the comparable prior-year period.
MEDNAX's revenue growth attributable to contributions from recently
acquired practices was 13.6 percent, while same-unit revenue grew by 2.5
percent when compared to the 2011 third quarter.
Same-unit growth attributable to patient volume grew by 1.9 percent for
the 2012 third quarter when compared to the prior-year period, and
includes growth in our hospital-based neonatal and other pediatric
physician services, primarily newborn nursery services, as well as
anesthesia services, partially offset by declines in our office-based
pediatric cardiology and maternal-fetal services. For the 2012 third
quarter, same-unit neonatal intensive care unit (NICU) patient days
increased by 3.7 percent when compared to the prior-year period.
Same-unit growth from net reimbursement-related factors was 0.6 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, the flow through of
revenue from modest price increases, and an increase in the
administrative fees received from our hospital partners due to the
expansion of our services as a result of internal growth initiatives,
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 80 basis points toward a higher percentage of services
reimbursed under government programs for the 2012 third quarter when
compared with the prior-year period.
For the 2012 third quarter, operating income was $107.4 million, up 13
percent from $95.0 million for the prior-year period. Operating margin
decreased to 22.7 percent for the 2012 third quarter, from 23.3 percent
for the prior-year period, primarily as a result of an increase in
operating expenses during the 2012 third quarter as compared to the 2011
third quarter and the variability in margins due to the mix of practices
acquired since July 2011.
General and administrative expenses were 10.2 percent of revenue for the
2012 third quarter, an improvement of 36 basis points from 10.6 percent
for the prior-year period.
MEDNAX generated net income of $65.9 million for the 2012 third quarter,
or $1.32 per share based on a weighted average 49.8 million shares
outstanding. This compares with net income of $58.2 million, or $1.19
per share for the 2011 third quarter, based on a weighted average 48.9
million shares outstanding.
For the nine months ended September 30, 2012, MEDNAX has generated
revenue of $1.35 billion, up 13.7 percent from $1.18 billion for the
prior-year period. Operating income for the first nine months of 2012
grew by 8.6 percent to $286.5 million, up from $263.9 million for the
first nine months of 2011. MEDNAX earned net income of $174.8 million,
or $3.53 per share through September 30, 2012, based on a weighted
average 49.6 million shares outstanding, which compares to net income of
$159.6 million, or $3.28 per share based on a weighted average 48.7
million shares outstanding for the first nine months of 2011.
At September 30, 2012, MEDNAX had cash and cash equivalents of $66.1
million and net accounts receivable were $250.5 million.
During the 2012 third quarter, MEDNAX generated cash flow from
operations of $134.7 million. For the nine months ended September 30,
2012, MEDNAX generated cash flow from operations of $219.7 million.
MEDNAX also used $137.5 million of its cash during the 2012 third
quarter to fund two anesthesiology and one pediatric cardiology group
practice acquisitions and to make contingent purchase price payments for
previously completed acquisitions. The anesthesiology group practices
are located in Knoxville, Tennessee, and Leesburg, Virginia, while the
pediatric cardiology practice is located in Austin, Texas.
A total of 10 physician group practices have been acquired through
September 30, 2012, with five physician group practices becoming part of
American Anesthesiology and five group practices becoming part of
Pediatrix Medical Group.
2012 Fourth Quarter Outlook
For the 2012 fourth quarter, MEDNAX expects earnings will be in a range
of $1.27 to $1.32 per share. This range assumes that total same-unit
revenue for the three months ended December 31, 2012 will grow by 2.0
percent to 4.0 percent from the prior-year period. This same-unit growth
forecast is expected to be divided between approximately one-half
patient volume growth across all MEDNAX physician specialties and
one-half net reimbursement growth, including improvements from
commercial contract rates as well as variability in the mix of services
reimbursed under commercial and government payor programs.
Earnings conference call
MEDNAX, Inc., will host an investor conference call to discuss the