Pediatrix Board Authorizes $50 Million Share Repurchase, Wins Contract to Provide Neonatal Care in Corpus Christi, TX
FORT LAUDERDALE, Fla., Apr 21, 2003 (BUSINESS WIRE) -- The Board of Directors of Pediatrix Medical Group, Inc. (NYSE:PDX) has authorized the Company to repurchase up to an additional $50 million of its common stock. The share repurchase program is effective immediately.
Pediatrix may repurchase shares of its common stock from time to time through open market purchases, based upon market conditions.
At December 31, 2002, Pediatrix had cash and cash equivalents of more than $73 million. During the 2003 first quarter, Pediatrix spent $50 million to repurchase approximately 1.6 million shares. Pediatrix also completed a $50 million share repurchase program in the 2002 third quarter, buying 1.7 million shares. Pediatrix has less than $2.5 million in debt and an unused line of credit of $100 million. Cash flow from operations during 2003 is expected to exceed $100 million.
Separately, Pediatrix also announced that it was awarded a contract to manage the neonatal intensive care unit at Driscoll Children's Hospital in Corpus Christi, TX, effective June 1, 2003. Historical annual patient volume of that unit exceeds 13,000 NICU patient days. In addition, Pediatrix will direct the neonatology education that is part of the Pediatric Residency program at Driscoll. This program, which is affiliated with Texas A&M University, averages 42 pediatric residents and is one of the largest pediatric residency programs in South Texas.
Pediatrix will provide 24 hour-a-day, seven-day-a-week in-house physician coverage of the NICU at Driscoll, allowing the children's hospital to provide the best model for care for the children of South Texas.
"Driscoll evaluated all of its options with an eye toward advancing the quality of care that we provide to the children of South Texas, and this new relationship with Pediatrix provides that opportunity," said Rick Merrill, Chief Executive Officer of Driscoll Children's Hospital. "The combination of Pediatrix's national expertise in the field of neonatology, and 24/7 in-house coverage in the NICU will benefit sick babies and their families throughout South Texas."
"This contract was awarded to Pediatrix based upon our focus on quality of patient care," said Roger J. Medel, M.D., Chairman of the Board and Chief Executive Officer of Pediatrix. "This hospital sought a physician group that shares its vision for better outcomes and clinical excellence through education and research."
Pediatrix also announced that it completed the acquisition of a pediatric cardiology physician group practice based in West Palm Beach, FL, that was effective January 1, 2003. The three physicians serve patients from an area that stretches from Florida's Palm Beach County north to Indian River County. This group practice complements Pediatrix's existing pediatric cardiology physician group that serves the nearby Fort Lauderdale/Broward County metropolitan area.
Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 200 NICUs and through Obstetrix its perinatal physicians provide services in many markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 620 physicians in 30 states and Puerto Rico. Additional information is available on the Internet: http://www.pediatrix.com.
Matters discussed in this release may include forward-looking statements within the meaning of the securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Pediatrix intends, expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions and assessments made by Pediatrix'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 relevant. Any forward-looking statement is not a guarantee of future performance and is subject to various risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statement. Such risks and uncertainties include, among others: pending and future billing and other investigations by government authorities; Pediatrix's ability to comply with laws and regulations applicable to the healthcare industry; limitations of, reductions in or retroactive adjustments to reimbursement amounts or rates by government-sponsored healthcare programs; whether physicians appropriately record the services they provide; Pediatrix's ability to find suitable acquisition candidates and to successfully integrate future or recent acquisitions; laws protecting the privacy of patient healthcare information; federal and state healthcare reform or changes in government-sponsored healthcare programs; Pediatrix's ability to successfully recruit and retain qualified physicians; malpractice and other lawsuits; the value of Pediatrix's intangible assets, such as goodwill; Pediatrix's ability to manage growth; fluctuations in quarterly results; and competition in the healthcare industry.
Pediatrix more fully describes these and other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2002, filed with the Securities and Exchange Commission. Any forward-looking statements in this press release are made as of the date hereof based on management's current beliefs and expectations and Pediatrix has no obligation to update and revise any such statements, whether as a result of new developments, information or otherwise.
Pediatrix Medical Group, Inc., Fort Lauderdale
Bob Kneeley, 954/384-0175, x-5300