Pediatrix Elects Two Independent Board Members; Authorizes Additional $50 Million Share Repurchase
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Nov. 22, 2002--Pediatrix Medical Group, Inc. (NYSE:PDX) has added two new independent Directors who will bring additional financial and operations experience to the nation's largest group of neonatal and maternal-fetal medicine specialists.
Pediatrix's Board of Directors also authorized the Company to repurchase up to $50 million of its common stock on the open market.
The Pediatrix Board of Directors has elected Kevin C. Clark and Paul G. Gabos to its Board.
Mr. Clark, 42, is founder and Chief Executive Officer of Onward Healthcare, Inc., a national healthcare staffing company that was launched with financial partner Welsh Carson Anderson & Stowe. Mr. Clark also serves as a member of the Board of Pinnacor, Inc. (Nasdaq:PCOR), a provider of business and financial information and analytical applications. In 1986 he co-founded Cross Country Healthcare, Inc., currently called Cross Country, Inc., (Nasdaq:CCRN), and served as its Chairman and Chief Executive Officer through 1994.
Mr. Gabos, 37, is Chief Financial Officer of Lincare Holdings, Inc., (Nasdaq:LNCR), a post he has held since June 1997. He joined Lincare in 1993. Mr. Gabos also worked for Coopers & Lybrand and for Dean Witter Reynolds Inc.
M. Douglas Cunningham, M.D., and Ian M. Ratner, M.D., have resigned their positions as Directors of Pediatrix. Dr. Cunningham, 63, has served as a member of Pediatrix's Board of Directors since 1996, and will remain as Vice President, Special Projects. Dr. Ratner, 50, was a founder of Magella Healthcare Corporation, which Pediatrix acquired in May 2001. He was elected to Pediatrix's Board of Directors at that time. Dr. Ratner is a practicing neonatologist with Pediatrix in Dallas.
"The addition of Kevin Clark and Paul Gabos brings the fresh perspectives that come from accomplished, seasoned business executives who have a track record of building and managing successful organizations," said Roger J. Medel, M.D., Chairman of the Board of Pediatrix Medical Group, Inc. "These appointments continue a process of enhanced corporate governance at Pediatrix that includes a greater number of independent Directors. We are grateful for the significant contributions that Drs. Cunningham and Ratner have made to our Board, and we look forward to their continued contributions as employees of our national group practice.
"Separately, our Board of Directors believes that our management team should have the authority to repurchase shares of Pediatrix common stock from time to time through open market purchases, based upon market conditions," Dr. Medel continued. "We remain dedicated to our growth-through-acquisition strategy, and have sufficient capital resources to simultaneously repurchase shares and achieve all of our stated corporate growth objectives, including accelerating the pace of the acquisition of established physician group practices."
At October 31, 2002, Pediatrix had cash and cash equivalents of more than $55 million. It has less than $3 million in debt and an unused line of credit of $100 million. Cash flow from operations during 2002 is expected to exceed $90 million.
Pediatrix's Board of Directors has authorized two $50 million stock repurchase programs this year. During the 2002 third quarter, Pediatrix announced and completed a stock repurchase program, using $50 million of its cash to purchase approximately 1.7 million shares.
Any purchases under Pediatrix's stock repurchase program may be made in the open market or through privately-negotiated transactions, subject to market conditions and trading restrictions. These purchases may be commenced or suspended at any time without prior notice.
Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 190 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 625 physicians in 30 states and Puerto Rico. Additional information is available on the Internet: 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, 2001, 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.
|CONTACT:||Pediatrix Medical Group, Inc., Fort Lauderdale|
|Bob Kneeley, 954/384-0175 x-5300|