MEDNAX Reports 2012 First Quarter EPS of 98 Cents FORT LAUDERDALE, Fla.--(BUSINESS WIRE)

Reports 2012 First Quarter EPS of 98 Cents

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 3, 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 98 cents per

share for the three months ended March 31, 2012.

"Our most recent results reflect an organization that continues to grow,

while at the same time, they represent a Company that continues to

execute on a durable and proven growth strategy that attracts physicians

and delivers ongoing value," said Roger J. Medel, M.D., Chief Executive

Officer of MEDNAX. "We are encouraged by the continued interest of

physician groups that want to practice as part of our national medical

group, and are excited about the progress we're making to expand our

national anesthesia group practice, as well as our ability to grow

through acquisitions across each of our physician specialties."

MEDNAX's net patient service revenue for the three months ended March

31, 2012, increased by 10.6 percent, to $422.6 million, from $382.3

million for the comparable prior-year period, largely driven by

contributions from acquisitions completed since January 2011.

Overall same-unit revenue growth for the 2012 first quarter was 2.4

percent. Same-unit growth attributable to patient volume grew by 1.8

percent for the 2012 first quarter when compared to the prior-year

period, driven by growth across all our specialties. For the 2012 first

quarter, same-unit neonatal intensive care unit (NICU) patient days

increased by 1.2 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, 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,

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 90 basis points toward a higher percentage of services reimbursed

under government programs for the 2012 first quarter, when compared with

the prior-year period. On a sequential basis, same-unit payor mix

remained unchanged as compared to the 2011 fourth quarter.

Operating income for the 2012 first quarter was $79.4 million, up 4.8

percent from $75.7 million for the prior-year period. Operating margin

decreased to 18.8 percent for the 2012 first quarter, from 19.8 percent

for the prior-year period, primarily as a result of the variability in

margins due to the mix of practices acquired since January 2011 and a

slight increase in operating expenses during the 2012 first quarter as

compared to the 2011 first quarter. For the 2012 first quarter, general

and administrative expenses increased by 12.1 percent to $46.9 million,

as compared to $41.8 million the prior-year period.

MEDNAX generated net income of $48.4 million for the 2012 first quarter,

or 98 cents per share based on a weighted average 49.4 million shares

outstanding. This compares with net income of $45.5 million, or 94 cents

per share for the 2011 first quarter, based on a weighted average 48.4

million shares outstanding.

MEDNAX had cash and cash equivalents of $22.4 million at March 31, 2012,

and net accounts receivable were $236.7 million. At the end of the 2012

first quarter, the Company had $83.5 million outstanding on its $500

million revolving credit facility.

During the 2012 first quarter, MEDNAX used $32.1 million of its cash to

fund operations, which compares with $14.5 million of cash used to fund

operations for the 2011 first quarter. MEDNAX typically uses cash during

the first quarter of each year as it pays incentive compensation,

principally to physicians, and employee benefit plan matching

contributions that had accrued during the prior year.

MEDNAX also used $28.5 million of its cash during the 2012 first quarter

to fund four physician group practice acquisitions and to make

contingent purchase price payments for previously completed

acquisitions. During the 2012 first quarter, MEDNAX acquired one

neonatology practice, one maternal-fetal medicine practice, and one

pediatric critical care practice, all located in Sacramento, California,

as well as a pediatric cardiology practice based in Orange, California.

Since the end of the 2012 first quarter, MEDNAX has announced the

acquisition of one anesthesia physician group practice in Burlington,

2012 Second Quarter Outlook

For the 2012 second quarter, MEDNAX expects earnings will be in a range

of $1.15 to $1.21 per share. This outlook assumes that total same-unit

revenue for the three months ended June 30, 2012 will grow by 1.5

percent to 3.5 percent from the prior-year period. This same-unit growth

forecast is expected to be divided between one-third patient volume

growth across all MEDNAX physician specialties and two-thirds 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

quarterly results at 10 a.m., E.D.T. 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 E.D.T. May 17, 2012 by dialing

1.800.475.6701, access code 243657. 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