View printer-friendly version << Back
Pediatrix Reports 2001 Second Quarter EPS of 30 Cents, Record Cash Flow

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 8, 2001--Pediatrix Medical Group, Inc., (NYSE:PDX) the national group of newborn and maternal-fetal medicine physician specialists, today reported earnings of 30 cents per share, as well as record cash flow from operations of $20.4 million for the three months ended June 30, 2001.
    For the 2001 second quarter, net patient service revenue was $83.1 million, compared with revenue of $55.2 million during the second quarter of 2000. Second quarter 2001 net income was $6.4 million, or 30 cents per share based on a weighted average 21.3 million shares outstanding, compared to a net loss of $291,000, or 2 cents per share on a weighted average 15.8 million shares outstanding, for the comparable period of 2000.
    For the six months ended June 30, 2001, Pediatrix had net revenue of $147.1 million, up 28 percent from $114.6 million for the comparable 2000 period. Net income through the first half of 2001 was $10.0 million, or 53 cents per share on a weighted average 19 million shares outstanding, compared with net income of $3.1 million, or 20 cents per share on a weighted average 15.8 million shares outstanding for the comparable period of 2000.
    Pediatrix's results for the 2000 second quarter were impacted by a charge against net patient service revenue of $6.5 million related to accounts receivable. Excluding the impact of that charge, Pediatrix would have earned $3.4 million, or 22 cents per share, on a pro forma basis for the three months ended June 30, 2000.
    Pediatrix's 2001 second quarter results include the operations of Magella Healthcare Corporation, a newborn-maternal-fetal medicine physician group practice that merged into Pediatrix effective May 15, 2001. The transaction was accounted for as a purchase, and accordingly Magella's operations are included in Pediatrix's financial statements commencing with the effective date.
    In addition to the Magella transaction, Pediatrix completed the acquisition of two neonatal physician group practices in Central Florida, including one practice that generated patient volume of approximately 30,000 NICU patient days in 2000. Pediatrix also completed the acquisition of a maternal-fetal physician group practice that serves Seattle's Eastside communities. That acquisition complemented Pediatrix's existing presence in the Seattle-Tacoma market.

    Investor Conference Call

    Pediatrix Medical Group, Inc., will host an investor conference call at 11 a.m. EDT today to discuss the 2001 second quarter results. Future performance of the Company may be discussed. The conference call will be available through simultaneous webcast at http://www.vcall.com.
    A telephone replay of the conference call will also be available from approximately 2 p.m. (EDT) today through midnight (EDT) August 13, 2001 by dialing 800-475-6701 from within the U.S., or 320-365-3944 from international locations. The access code for the telephone replay is 594441. 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 its perinatal physicians provide services in 16 markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 570 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 ended     Six months ended
                               June 30                June 30
                               -------                -------
                          2001        2000(1)     2001        2000(1)
                          ----        ----        ----        ----
                         (in thousands, except for per share data)


Net patient service 
 revenue                $ 83,137     $ 55,178    $147,056    $114,587
                          ------       ------     -------     -------

Operating expenses:
   Salaries and benefits  56,746       44,238     103,226      87,541
   Supplies and other 
    operating expenses     8,819        6,677      15,676      12,398
   Depreciation and 
    amortization           5,103        3,435       8,681       6,771
                          ------       ------     -------     -------
     Total operating 
      expenses            70,668       54,350     127,583     106,710
                          ------       ------     -------     -------

Income from operations    12,469          828      19,473       7,877
                          ------       ------     -------     -------

Investment income             73           74         146         154
Interest expense            (788)      (1,015)     (1,313)     (2,002)
                          ------       ------     -------     -------

Income before income 
 taxes                    11,754         (113)     18,306       6,029

Income tax provision      (5,397)        (178)     (8,345)     (2,942)
                          ------       ------     -------     -------

Net income               $ 6,357       $ (291)    $ 9,961     $ 3,087
                          ======       ======     =======     =======

Per share data:
Net income per common 
 and common equivalent share
  (diluted)               $ 0.30      $ (0.02)     $ 0.53      $ 0.20

Weighted average shares 
 used in computing net
 income per common and 
 common equivalent share 
 (diluted)                21,292       15,778       19,010      15,806


(1) These results include the impact of a secondquarter pretax
charge against accounts receivable of $6.5 million.


            
                       Balance Sheet Highlights
                                      As of                As of
                                   June 30, 2001       Dec. 31, 2000
                                   -------------       -------------
                                            (in thousands)

      Assets:
      Cash & cash equivalents         $ 4,440            $  3,075
      Accounts receivable, net         71,356              69,133
      Other current assets              2,869               1,667
      Other assets, property and 
       equipment                      468,251             250,859
                                      -------             -------
      Total assets                  $ 546,916           $ 324,734 
                                      =======             ======= 
  
      Liabilities and stockholders' 
       equity:
      Accounts payable & accrued 
       expenses                      $ 45,034            $ 29,878
      Total debt                       54,943              23,500
      Other liabilities                17,617              29,456
                                       ------              ------
      Total liabilities               117,594              82,834
      Stockholders' equity            429,322             241,900
                                      -------             -------
      Total liabilities and 
       stockholders' equity         $ 546,916           $ 324,734
                                      =======             =======



    --30--jar/mi*

    CONTACT: Pediatrix Medical Group, Inc., Fort Lauderdale
             Bob Kneeley, Investor Relations, 954/384-0175, x-5300

    KEYWORD: FLORIDA
    INDUSTRY KEYWORD: MEDICAL CONFERENCE CALLS EARNINGS
    SOURCE: Pediatrix Medical Group, Inc.