Full Press Release Details
2011 First Quarter EPS Grows by 16 Percent to 94 Cents
Second Quarter EPS of $1.11 to $1.17
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 3, 2011--MEDNAX, Inc. (NYSE:
MD) today reported earnings per share of 94 cents for the three months
ended March 31, 2011, that were driven by strong revenue growth from
both acquisitions and same-unit revenue, that led to operating margin
For the 2011 first quarter, compared to the prior-year period, MEDNAX
Revenue growth of 15 percent to $382.3 million;
Operating income growth of 19 percent to $75.7 million;
Operating margin expansion of 72 basis points to 19.8 percent;
Net income growth of 19 percent to $45.5 million; and
Earnings per share growth of 16 percent to 94 cents.
"Our results for the 2011 first quarter reflect the significant
contributions we're generating from our ongoing acquisition program, as
well as better than expected same-unit revenue growth for the period,"
said Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. "We
continue to achieve solid operating margin improvements as we grow our
presence across all of our physician specialties and subspecialties, and
integrate newly acquired practices into our national group model."
MEDNAX's net patient service revenue for the 2011 first quarter grew by
15 percent to $382.3 million from $332.9 million for the comparable 2010
period. Revenue growth included contributions from acquisitions
completed during the previous 12 months, as well as a 3.7 percent
increase in same-unit revenue.
Same-unit revenue growth from net reimbursement-related factors was 2.2
percent, and was driven principally by improved reimbursement from
third-party commercial payors, as well as a shift in the mix of the
Company's services reimbursed under commercial-payor programs, from
government programs, during the period. Same-unit payor mix for the 2011
first quarter improved by 120 basis points from the prior-year period.
Same-unit revenue growth attributable to patient volume increased by 1.5
percent, and included strong volume growth from the Company's
anesthesia, neonatal and pediatric cardiology practices. The number of
neonatal intensive care unit (NICU) patient days increased by 0.7
percent on a same-unit basis for the 2011 first quarter, compared to the
MEDNAX had income from operations of $75.7 million for the 2011 first
quarter, a 19 percent improvement from $63.6 million for the prior-year
Operating margin improved to 19.8 percent for the 2011 first quarter, up
72 basis points from 19.1 percent for the prior-year period. Operating
margin improvement was a result of the Company's revenue growth from
acquisitions, as well as same-unit revenue growth and continued
effective management of administrative expenses.
General and administrative expenses grew by 10 percent for the 2011
first quarter from the prior-year period, and continue to grow at a rate
considerably lower than revenue growth. General and administrative
expenses were 10.9 percent of revenue for the 2011 period, a 51
basis-point improvement from the prior year.
Net income for the three months ended March 31, 2011, was $45.5 million,
up 19 percent from $38.3 million for the prior-year period.
MEDNAX's earnings per share for the 2011 first quarter increased by 16
percent to 94 cents, based on a weighted average 48.4 million shares
outstanding, from 81 cents, based on a weighted average 47.3 million
shares outstanding for the 2010 first quarter.
MEDNAX had cash and cash equivalents of $15.0 million at March 31, 2011,
and net accounts receivable were $188.2 million. At the end of the 2011
first quarter, the Company had $176.5 million outstanding on its $350
million revolving credit facility.
During the 2011 first quarter, MEDNAX used $14.5 million of its cash to
fund operations, which compares with $41.6 million of cash used to fund
operations for the 2010 first quarter. MEDNAX typically uses cash 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.
MEDNAX also used $10.1 million of its cash during the 2011 first quarter
to fund three physician group practice acquisitions and to make
contingent purchase price payments for previously completed
acquisitions. During the 2011 first quarter, MEDNAX acquired a
maternal-fetal medicine practice and a pediatric after-hours clinic,
both in San Antonio, Texas, as well as a pediatric cardiology practice
based in Miami, Florida.
MEDNAX expects earnings for the 2011 second quarter to be in a range of
$1.11 to $1.17 per share. MEDNAX's forecast earnings per share range
assumes that total same-unit revenue for the three months ended June 30,
2011, will be between 1 percent and 3.5 percent higher than for the
The forecast anticipates that same-unit growth will be evenly divided
between volume growth and net reimbursement growth.
The same-unit revenue growth range assumes combined volume growth across
all MEDNAX physician specialties, as well as variability related to
reimbursement factors, including the mix of services reimbursed under
commercial and government payors and improvements from commercial
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 17, 2011, by dialing 800-475-6701,
access code 198466. 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