MEDNAX Announces Agreement to Acquire Cardon Outreach
Significantly Expands Management Services Capabilities and Scale
Founded in 1996, Cardon Outreach provides services and technology solutions focused on helping hospitals and healthcare systems lower costs, reduce operating and capital expenses, recover revenue, and increase productivity. The company provides specialized eligibility assistance, accounts receivable recovery services, third-party liability, workers’ compensation, social security disability, denials management and appeals, and patient financing/early out programs to more than 800 hospitals and other healthcare facilities in 46 states.
“We believe the addition of Cardon Outreach significantly advances the
strategic development of our management services capability,” said
“Cardon Outreach is a clear market leader of revenue cycle management
Based on current estimates, Cardon is expected to generate 2016
annualized earnings before interest, taxes, depreciation and
amortization (EBITDA), a non-GAAP measure, of
The acquisition is expected to be immediately accretive to earnings.
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to close within the next 30 days.
ABOUT CARDON OUTREACH
Cardon Outreach is a leading, national provider of revenue cycle management services for more than 20 years. The company delivers solutions that work to more than 800 hospitals and other healthcare facilities through its integrated service lines, single technology platform and patient-centered advocacy. Cardon’s clients rely on the strength of its people, processes and technology to optimize the performance of their revenue cycle, while their patients receive improved access to healthcare.
This press release includes a non-GAAP financial measure. Earnings before interest, taxes and depreciation and amortization (“EBITDA”) consists of net income before interest expense, income taxes and depreciation and amortization. The Company believes EBITDA provides investors with useful supplemental information to compare and understand its underlying business trends and performance across reporting periods on a consistent basis. This measure should be considered a supplement to, and not a substitute for, financial performance measures determined in accordance with GAAP. In addition, since non-GAAP measures are not determined in accordance with GAAP, they are susceptible to varying calculations and may not be comparable to other similarly titled measures of other companies.
For a reconciliation of the expected EBITDA related to this acquisition to the most directly comparable GAAP measure, refer to the tables below (in millions).
Certain statements and information in this press release may be
deemed to contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements may
include, but are not limited to, statements relating to our objectives,
plans and strategies, and all statements, other than statements of
historical facts, that address activities, events or developments that
we intend, expect, project, believe or anticipate will or may occur in
the future. These statements are often characterized by terminology such
as “believe”, “hope”, “may”, “anticipate”, “should”, “intend”, “plan”,
“will”, “expect”, “estimate”, “project”, “positioned”, “strategy” and
similar expressions, and are based on assumptions and assessments made
by MEDNAX’s management in light of their experience and their perception
of historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Any forward-looking
statements in this press release are made as of the date hereof, and
2016 Annualized Reconciliation of Net Income to EBITDA for Cardon Outreach (1)
|Income tax provision||4.3|
|Depreciation and amortization||15.6|
(1) The operating results from Cardon Outreach will only impact MEDNAX, Inc. from the date of closing.
Charles Lynch, 954-384-0175, x 5692
Vice President, Strategy and Investor Relations