MEDNAX Reports Fourth Quarter GAAP EPS of $0.84; Adjusted EPS of $1.00
For the 2016 fourth quarter,
- Revenue growth of 12.0 percent to
$831 million ; - Net income of
$78 million ; - EBITDA of
$168 million ; and - EPS of
$0.84 and Adjusted EPS of$1.00 .
“The fourth quarter of 2016 continued a period of significant strategic development for our Company,” said
Operating Results
MEDNAX’s net revenue for the three months ended
MEDNAX’s revenue growth attributable to recent acquisitions was 11.3 percent, while overall same-unit revenue increased by 0.7 percent when compared to the prior year period.
Same-unit revenue growth from net reimbursement-related factors was 0.8 percent for the 2016 fourth quarter as compared to the prior-year period, driven by improvements in managed care contracting, partially offset by the impact of changes in the percentage of services reimbursed under government programs and a decrease in
Same-unit growth attributable to patient volume was negative 0.1 percent for the 2016 fourth quarter as compared to the prior-year period. Volume growth in anesthesiology, radiology and other pediatric services was offset by declines in neonatology services and slight declines in maternal-fetal medicine and cardiology services. For the 2016 fourth quarter, same-unit neonatal intensive care unit (NICU) patient days decreased by 1.8 percent compared to the prior-year period.
For the 2016 fourth quarter, general and administrative expenses were
Earnings before interest, taxes, depreciation and amortization expense (EBITDA), a non-GAAP measure, for the 2016 fourth quarter was
Depreciation and amortization expense was
Interest expense was
For the fourth quarter of 2016,
For the 12 months ended
During the fourth quarter of 2016,
At
Since the end of the fourth quarter,
2017 First Quarter Outlook
For the 2017 first quarter,
Additionally, for the 2017 first quarter,
This outlook assumes that total same-unit revenue growth for the three months ended
MEDNAX’s results from operations in the 2017 first quarter, when compared on a sequential basis to the 2016 fourth quarter, will be affected by annual seasonality. These factors include a significant increase in expenses associated with the
Non-GAAP Measures
A reconciliation of EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and 12 months ended
Earnings Conference Call
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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Consolidated Statements of Income | |||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
|
|||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net revenue | $ | 830,770 | $ | 741,740 | $ | 3,183,159 | $ | 2,779,996 | |||||||||||||
Operating expenses: | |||||||||||||||||||||
Practice salaries and benefits | 532,952 | 461,074 | 2,031,220 | 1,753,505 | |||||||||||||||||
Practice supplies and other operating expenses | 32,737 | 26,164 | 118,416 | 98,480 | |||||||||||||||||
General and administrative expenses | 97,049 | 85,393 | 372,572 | 305,915 | |||||||||||||||||
Depreciation and amortization | 25,254 | 18,149 | 89,264 | 64,228 | |||||||||||||||||
Total operating expenses | 687,992 | 590,780 | 2,611,472 | 2,222,128 | |||||||||||||||||
Income from operations | 142,778 | 150,960 | 571,687 | 557,868 | |||||||||||||||||
Investment income and other income | 770 | 751 | 2,019 | 1,844 | |||||||||||||||||
Interest expense | (16,356 | ) | (8,493 | ) | (63,092 | ) | (23,110 | ) | |||||||||||||
Equity in earnings of unconsolidated affiliate | 806 | 777 | 3,185 | 3,127 | |||||||||||||||||
Total non-operating expenses | (14,780 | ) | (6,965 | ) | (57,888 | ) | (18,139 | ) | |||||||||||||
Income before income taxes | 127,998 | 143,995 | 513,799 | 539,729 | |||||||||||||||||
Income tax provision | 49,919 | 51,581 | 189,203 | 204,038 | |||||||||||||||||
Net income | 78,079 | 92,414 | 324,596 | 335,691 | |||||||||||||||||
Net loss attributable to noncontrolling interests |
─ |
288 |
318 |
629 |
|||||||||||||||||
Net income attributable to |
$ |
78,079 |
$ |
92,702 |
$ |
324,914 |
$ |
336,320 | |||||||||||||
Net income attributable to |
$ |
0.84 |
$ |
0.99 |
$ |
3.49 |
$ |
3.58 |
|||||||||||||
Weighted average diluted shares outstanding |
93,347 |
93,536 |
93,109 |
93,960 |
|||||||||||||||||
|
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Reconciliation of Net Income Attributable to |
|||||||||||||||||
(in thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
|
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income attributable to |
$ | 78,079 | $ | 92,702 | $ | 324,914 | $ | 336,320 | |||||||||
Interest expense, net(1) | 14,780 | 6,965 | 57,888 | 18,139 | |||||||||||||
Income tax provision | 49,919 | 51,581 | 189,203 | 204,038 | |||||||||||||
Depreciation and amortization | 25,254 | 18,149 | 89,264 | 64,228 | |||||||||||||
EBITDA | $ | 168,032 | $ | 169,397 | $ | 661,269 | $ | 622,725 |
(1) Interest expense, net is composed of interest expense, investment and other income and equity in earnings of unconsolidated affiliate. |
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Reconciliation of Diluted Net Income per Share Attributable to |
|||||||||||||||||||
to Adjusted Diluted Net Income per Share Attributable to |
|||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
Weighted average dilutive shares outstanding | 93,347 | 93,536 | |||||||||||||||||
Net income and diluted net income per share attributable to |
$ | 78,079 | $ | 0.84 | $ | 92,702 | $ | 0.99 | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization (net of tax of |
10,520 | 0.11 | 7,360 | 0.08 | |||||||||||||||
Stock-based compensation (net of tax of |
4,947 | 0.05 | 5,248 | 0.06 | |||||||||||||||
Adjusted net income and diluted EPS |
$ |
93,546 |
$ |
1.00 |
$ |
105,310 |
$ |
1.13 |
|||||||||||
Twelve Months Ended |
|||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
Weighted average dilutive shares outstanding | 93,109 | 93,960 | |||||||||||||||||
Net income and diluted net income per share attributable to |
$ | 324,914 | $ | 3.49 | $ | 336,320 | $ | 3.58 | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization (net of tax of |
36,873 | 0.39 | 26,170 | 0.28 | |||||||||||||||
Stock-based compensation (net of tax of |
20,784 | 0.22 | 19,997 | 0.21 | |||||||||||||||
Income tax benefit related to settlement | (10,646 | ) | (0.11 | ) | — | — | |||||||||||||
Adjusted net income and diluted EPS |
$ |
371,925 |
$ |
3.99 |
$ |
382,487 |
$ |
4.07 |
|||||||||||
Balance Sheet Highlights | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
As of | As of | |||||||
|
|
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Assets: | ||||||||
Cash and cash equivalents | $ | 55,698 | $ | 51,572 | ||||
Short-term investments | 11,286 | 8,853 | ||||||
Accounts receivable, net | 495,276 | 444,737 | ||||||
Other current assets | 24,868 | 22,607 | ||||||
Intangible assets, net | 668,529 | 424,219 | ||||||
|
4,083,743 | 3,595,226 | ||||||
Total assets | $ | 5,339,400 | $ | 4,547,214 | ||||
Liabilities and equity: | ||||||||
Accounts payable and accrued expenses | $ | 407,938 | $ | 395,807 | ||||
Total debt | 1,705,682 | 1,274,703 | ||||||
Other liabilities | 465,013 | 438,858 | ||||||
Total liabilities | 2,578,633 | 2,109,368 | ||||||
Total equity | 2,760,767 | 2,437,846 | ||||||
Total liabilities and equity | $ | 5,339,400 | $ | 4,547,214 |
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Vice President, Strategy and Investor Relations
[email protected]
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