MEDNAX Previews 2017 First Quarter Results
For the 2017 first quarter, the Company’s expected results compared to its previously reported anticipated outlook were impacted by the following factors:
-
Lower same-unit revenue driven by a shift to government payors and
lower neonatology volumes which had a combined unfavorable impact of
$0.11 per share; and -
Higher practice compensation expense, primarily for non-physician
clinicians which had an unfavorable impact of
$0.02 per share.
-
Net revenue of
$836 million , compared to$753 million ; -
Net income of
$55 million , compared to$68 million ; -
EBITDA of
$132 million , compared to$144 million ; -
Earnings per share of
$0.59 , compared to$0.73 ; and -
Adjusted EPS of
$0.75 , compared to$0.87 .
For the first quarter, same-unit revenue is expected to decline by 0.9
percent when compared to the prior year period. Compared to the
Company’s expected range of same-unit growth within its previously
reported first-quarter outlook of one percent to three percent, this
decline in same-unit revenue is expected to impact Adjusted EPS by
Same-unit revenue from net reimbursement-related factors is expected to decline by 0.6 percent for the first quarter of 2017, compared to the first quarter of 2016, driven by a 90 basis point payor mix shift to government payors that impacted same-unit pricing negatively by 150 basis points. Within MEDNAX’s primary clinical specialties, on a same-unit basis, payor mix for anesthesiology services is expected to shift by 190 basis points to government payors compared to the prior year period, while payor mix for neonatology services is expected to be relatively unchanged.
Same-unit revenue attributable to patient volume is expected to decline
by 0.3 percent for the first quarter of 2017, compared to the first
quarter of 2016. For the 2017 first quarter, same-unit neonatal
intensive care unit (NICU) patient days are expected to decline 2.1
percent compared to the prior year period (1.0 percent when adjusted for
one fewer day in 2017), reflecting a decline in total births at the
hospitals where
In addition, higher than expected practice salaries and benefits
expense, primarily for non-physician clinicians, is expected to impact
the Company’s Adjusted EPS unfavorably by
Non-GAAP Measures
A reconciliation of expected EBITDA and expected Adjusted EPS for the
three months ended
Earnings Conference Call
The investor conference call will be webcast and can be accessed at MEDNAX’s website, www.mednax.com/investors.
ABOUT
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
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MEDNAX, INC. Reconciliation of Expected Net Income Attributable to MEDNAX, Inc. to Expected EBITDA (in thousands) (Unaudited) |
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Three Months Ended
March 31, |
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|
2017 | 2016 | ||||||
| Net income attributable to MEDNAX, Inc. | $ | 54,691 | $ | 67,899 | ||||
| Interest expense, net(1) | 16,379 | 13,051 | ||||||
| Income tax provision | 34,967 | 43,411 | ||||||
| Depreciation and amortization | 25,614 | 19,584 | ||||||
| EBITDA | $ | 131,651 | $ | 143,945 | ||||
(1) Interest expense, net is composed of interest expense, investment and other income and equity in earnings of unconsolidated affiliate.
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MEDNAX, INC. Reconciliation of Expected Diluted Net Income per Share Attributable to MEDNAX, Inc. to Expected Adjusted Diluted Net Income per Share Attributable to MEDNAX, Inc. (“Adjusted EPS”) (in thousands, except per share data) (Unaudited) |
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Three Months Ended
March 31, |
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| 2017 | 2016 | ||||||||||||||
| Weighted average dilutive shares outstanding | 93,143 | 93,091 | |||||||||||||
|
Net income and diluted net income per share attributable
to MEDNAX, Inc. |
$ | 54,691 | $ | 0.59 | $ | 67,899 | $ | 0.73 | |||||||
| Adjustments: | |||||||||||||||
| Amortization (net of tax of $6,843 and $5,118) | 10,704 | 0.11 | 8,005 | 0.08 | |||||||||||
| Stock-based compensation (net of tax of $2,939 and $3,476) | 4,597 | 0.05 | 5,437 | 0.06 | |||||||||||
| Adjusted net income and diluted EPS |
$ |
69,992 |
$ |
0.75 |
$ |
81,341 |
$ |
0.87 |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170420005517/en/
Source:
MEDNAX, Inc.
Charles Lynch, 954-384-0175, x 5692
Vice
President, Strategy and Investor Relations
charles_lynch@mednax.com