Full Press Release Details
Reports 2009 First Quarter EPS of 74 Cents
Second Quarter EPS of 84 to 90 Cents Per Share
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 7, 2009--MEDNAX, Inc.
(NYSE:MD) today reported earnings of 74 cents per share for the 2009
first quarter that was the result of strong revenue growth from
acquisitions as well as same-unit patient volume and reimbursement
For the 2009 first quarter, compared to the prior year, MEDNAX reported:
Revenue of $303.9 million, which included same-unit revenue growth of
Operating income growth of 9 percent to $56.6 million; and
Earnings per share from continuing operations that increased by 12
percent to 74 cents.
"We continue to grow our business, despite a challenging economic
environment, because of our consistent execution of a proven strategy
that adds value principally to physicians attracted to practice as part
of our national group, but also to our patients, referring physicians,
hospital partners and third-party payors," said Roger J. Medel, M.D.,
Chief Executive Officer of MEDNAX. "We remain committed to growing our
business, and our results reflect the ongoing progress that we are
making in expanding our national group practice."
MEDNAX's net patient service revenue for the three months ended March
31, 2009, increased by 24 percent, to $303.9 million, from $245.6
million for the comparable 2008 period.
Revenue growth consisted principally of contributions from acquisitions
completed during the previous 12 months.
Same-unit revenue grew by 4.1 percent for the 2009 first quarter, when
compared to the prior-year period, and was a combination of higher
patient volume across all physician specialties, including neonatal, as
well as improved reimbursement from third-party payors.
Total patient volume increased by 2.3 percent for the 2009 first
quarter, compared to the 2008 first quarter. This increase included
higher patient volume at the Company's office-based maternal fetal and
pediatric cardiology practices and its hospital-based anesthesia and
neonatal intensive care unit (NICU) practices. During the 2009 first
quarter, compared to the 2008 period, same-unit NICU volume increased by
0.2 percent, or 1.3 percent when adjusted to exclude the leap-year
impact of an extra day in the 2008 first quarter results.
Improved reimbursement, principally from commercial payors, resulted in
same-unit revenue growth of 1.8 percent for the 2009 first quarter when
compared to the prior-year period. MEDNAX's percentage of reimbursement
from government payors for the 2009 first quarter was essentially
unchanged when compared to the 2008 first quarter though it was lower
than 2008 fourth quarter levels.
MEDNAX reported income from operations of $56.6 million for the 2009
first quarter, an increase of 9 percent from $51.9 million for the
comparable 2008 period.
General and administrative expenses continued to grow at a rate that was
slightly lower than overall revenue growth, largely as a result of
ongoing expense management by the Company.
For the 2009 first quarter, income from continuing operations and net
income were both $34.1 million, or 74 cents per share based on a
weighted average 45.9 million shares outstanding during the period.
Income from continuing operations increased by 6 percent from $32.1
million for the 2008 first quarter, and by 12 percent on a per share
basis, from 66 cents, based on a weighted average 48.9 million shares
outstanding during the comparable year period.
During the 2008 first quarter, MEDNAX completed the sale of its
metabolic screening laboratory which resulted in income from
discontinued operations of $23.7 million, or 48 cents per share. Net
income for the 2008 first quarter, which includes income from
discontinued operations, was $55.8 million, or $1.14 per share.
MEDNAX had cash and cash equivalents of $21.3 million at March 31, 2009,
and net accounts receivable were $165.2 million. At the end of the 2009
first quarter the Company had $181 million outstanding on its $350
million revolving credit facility.
During the 2009 first quarter, MEDNAX used $22.0 million of its cash to
fund operations, which compares with $27.3 million of cash used to fund
operations for the 2008 first quarter. The Company typically has
negative cash flow during the first quarter of each year as it pays
incentive bonuses, principally to physicians, and employee benefit plan
matching contributions that had accrued during the prior year.
In addition, during the 2009 first quarter MEDNAX used $11.5 million of
its cash for acquisitions and contingent purchase price payments for
previously completed acquisitions. MEDNAX completed three physician
group practice acquisitions during the period.
MEDNAX expects earnings per share for the 2009 second quarter to be in a
range from 84 to 90 cents. This outlook anticipates that same-unit NICU
patient volume for the 2009 second quarter will range from unchanged to
growth of up to 2 percent when compared with the 2008 second quarter,
and that the percentage of services reimbursed under government programs
for the 2009 second quarter will be as much as 2 percentage points
higher, to unchanged, when compared with the 2009 first quarter.
MEDNAX's 2009 second quarter earnings outlook also anticipates
contributions from practice acquisitions to be completed within its
neonatal, maternal-fetal and pediatric cardiology physician services.
MEDNAX previously announced that it expects to invest $70 to $75 million
in practice acquisitions within those physician services areas during
Earnings conference call
MEDNAX, Inc. will host an investor conference call to discuss the
quarterly results at 10 a.m., Eastern Daylight 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,
EDT, today through midnight, EDT, May 21, 2009, by dialing 800-475-6701,
access code 996444. 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,