Pediatrix Reports EPS of 40 Cents for 2001 Third Quarter; Continued Improvement in Operating Cash Flows, Days Sales Outstanding
Pediatrix Reports EPS of 40 Cents for 2001 Third Quarter; Continued Improvement in Operating Cash Flows, Days Sales Outstanding
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 31, 2001--Pediatrix Medical Group, Inc., (NYSE:PDX) continued to demonstrate improvements in its fundamental operations, based upon financial results released today for the three months and nine months ended September 30, 2001.
Net patient service revenue was $102.8 million for the three months ended September 30, 2001, an increase of 60 percent from $64.3 million for the comparable period of 2000. Net income for the 2001 third quarter was $10.3 million, which compares with $3.8 million for the comparable period of 2000. On a per share basis, Pediatrix earned 40 cents, based on a weighted average 25.7 million shares outstanding for the three months ended September 30, 2001, compared with earnings per share of 24 cents based on a weighted average 16.2 million shares outstanding for the comparable period of 2000.
The improvement in Pediatrix's net patient service revenue, net income and earnings per share are the result of several factors, including the inclusion of Magella Healthcare Corporation, which was merged into Pediatrix effective May 15, 2001, as well as continued acquisitions and same unit revenue growth of 7 percent.
For the three months ended September 30, 2001, Pediatrix had record cash flow from operations of $30 million, or nearly three times the cash flow from operations of $10.8 million for the comparable period of 2000. For the three months ended September 30, 2001, days sales outstanding were reduced to 62, compared with 106 for the same period of 2000.
For the nine months ended September 30, 2001, Pediatrix reported net patient service revenue of $249.8 million, an increase of 40 percent from net revenue of $178.9 million for the nine months ended September 30, 2000.
Through nine months in 2001, net income was $20.3 million, compared with $6.9 million for the same period of 2000. On a per share basis, net income for the nine months of 2001 was 96 cents, based on a weighted average 21.3 million shares outstanding, compared with earnings per share of 43 cents, based on a weighted average 15.9 million shares outstanding for the nine months ended September 30, 2000. Results for 2000 include the impact of a second-quarter pre-tax charge of $6.5 million against accounts receivable.
Cash flow from operations for the nine months ended September 30, 2001, was $58.6 million, which compares with $21.3 million in operating cash flow for the comparable period of 2000.
During the 2001 third quarter, Pediatrix expanded its operations by acquiring two physician groups. Pediatrix entered the Atlanta metropolitan market when it acquired a physician group practice that had annual volume of 10,000 neonatal intensive care unit (NICU) patient days. In addition, Pediatrix expanded its position in the Dallas metropolitan area by acquiring a physician group that cares for babies admitted to the newborn nursery at a Dallas area hospital. Annual volume is approximately 6,000 newborn nursery patient days. The physicians practice at a hospital where Pediatrix also manages the NICU, and where maternal-fetal medicine specialists employed by a professional corporation affiliated with Pediatrix provide patient care.
Earlier this month, Pediatrix was awarded a contract to provide neonatal physician services at a hospital based in Yuma, Arizona. Annual patient volume at the NICU at this hospital is estimated at in excess of 3,500 patient days.
Investor Conference Call
Pediatrix Medical Group, Inc., will host an investor conference call to discuss the quarterly results at 11 a.m. (EST) today. Future performance of the Company may be discussed. The conference call will be available through simultaneous webcast at http:\\www.vcall.com. ΒΆ A telephone replay of the conference call will also be available from 2:30 p.m. (EST) today through midnight (EST) November 7, 2001 by dialing (800) 475-6701, access code: 607071. The replay will also be available at http://www.vcall.com.
About Pediatrix
Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 185 NICUs and through Obstetrix its perinatal physicians provide services in 16 markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 575 physicians in 27 states and Puerto Rico. Additional information is available on the Internet: http://www.pediatrix.com.
Except for historical information, matters discussed in this release include forward-looking statements that involve risks and uncertainties including, but not limited to, business, financial and integration risks. In addition, Pediatrix details other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2000, filed with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from those projected or anticipated in the forward-looking statements.
Pediatrix Medical Group, Inc.
Consolidated Statements of Operations
(Unaudited)
Three months Nine months
ended ended
September 30, September 30,
2001 2000 2001 2000(1)
---- ---- ---- -----
(in thousands, except for per share data)
Net patient
service revenue $ 102,784 $ 64,272 $ 249,841 $ 178,859
--------- -------- --------- ---------
Cost of services:
Salaries and
benefits 66,533 45,420 169,759 132,961
Supplies and
other operating
expenses 10,159 7,002 25,836 19,400
Depreciation and
amortization 6,344 3,478 15,025 10,249
-------- ------- -------- -------
Total cost of
services 83,036 55,900 210,620 162,610
-------- ------- -------- -------
Income from
operations 19,748 8,372 39,221 16,249
-------- ------- -------- -------
Investment income 100 58 246 212
Interest expense (795) (951) (2,108) (2,953)
-------- ------- -------- -------
Income before
income taxes 19,053 7,479 37,359 13,508
Income tax
provision (8,734) (3,650) (17,079) (6,592)
-------- ------- -------- -------
Net income $ 10,319 $ 3,829 $ 20,280 $ 6,916
======== ======= ======== ========
Per share data:
Net income per
common and common
equivalent share
(diluted) $ 0.40 $ 0.24 $ 0.96 $ 0.43
Weighted average
shares used in
computing net
income per common
and common
equivalent share
(diluted) 25,745 16,187 21,268 15,926
(1)These results include the impact of a second-quarter pre-tax charge
against accounts receivable of $6.5 million.
Balance Sheet Highlights
As of As of
Sept. 30, 2001 Dec. 31, 2000
-------------- -------------
(in thousands)
Assets:
Cash & cash equivalents $ 3,536 $ 3,075
Accounts receivable, net 69,278 69,133
Other current assets 5,187 1,667
Other assets, property
and equipment
468,976 250,859
------- -------
Total assets $ 546,977 $ 324,734
========= =========
Liabilities and
stockholders' equity:
Accounts payable &
accrued expenses $ 55,083 $ 29,878
Total debt 15,268 23,500
Other liabilities 17,673 29,456
------ ------
Total liabilities 88,024 82,834
Stockholders' equity 458,953 241,900
------- -------
Total liabilities and
stockholders' equity $ 546,977 $ 324,734
========= =========
--30--eg/mi*
CONTACT: Pediatrix Medical Group, Fort Lauderdale
Bob Kneeley, 954/384-0175, ext. 5300
bob_kneeley@pediatrix.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: MEDICAL EARNINGS CONFERENCE CALLS