MEDNAX, INC. (MD, Financial) filed Quarterly Report for the period ended 2009-09-30.
Mednax Inc. formerly Pediatrix Medical Group Inc. is a healthcare services company that focuses on physician services for newborn maternal-fetal pediatric subspecialty and anesthesia care. The company through its subsidiaries provides these services in the United States and Puerto Rico. In addition MEDNAX engages in clinical research monitoring clinical outcomes and implementing clinical initiatives. Mednax, Inc. has a market cap of $2.41 billion; its shares were traded at around $51.92 with a P/E ratio of 15.78 and P/S ratio of 2.25.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $6.9 million, or 22.4%, to $37.6 million for the three months ended September 30, 2009, as compared to $30.7 million for the same period in 2008. This increase of $6.9 million is attributable to $5.0 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $1.9 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.4% for the three months ended September 30, 2009, as compared to 11.5% for the same period in 2008.
Our net patient service revenue increased $184.5 million, or 24.0%, to $955.0 million for the nine months ended September 30, 2009, as compared to $770.5 million for the same period in 2008. Of this $184.5 million increase, $145.5 million, or 78.9%, was attributable to revenue generated from acquisitions completed after December 31, 2007. Same-unit net patient service revenue increased $39.0 million, or 5.2%, for the nine months ended September 30, 2009. The change in same-unit net patient service revenue
was the result of increased revenue of $29.0 million from higher patient service volumes across our subspecialties and $10.0 million related to pricing and reimbursement factors. Increased revenue of $29.0 million from higher patient service volumes includes $11.0 million from a 2.3% increase in neonatal intensive care unit patient days and $18.0 million from volume growth in maternal fetal, pediatric cardiology, anesthesiology and other services, including hearing screens and newborn nursery services. Excluding the additional calendar day in February for the 2008 leap year, the increase in neonatal intensive care unit patient days was 2.7%. The net increase in revenue of $10.0 million related to pricing and reimbursement factors is primarily due to improved managed care contracting and the flow through of revenue from price increases, partially offset by a decrease in revenue caused by an increase in the percentage of our patients being enrolled in government-sponsored programs. Payments received from government-sponsored programs are substantially less than payments received from commercial insurance payors for equivalent services. Same units are those units at which we provided services for the entire current period and the entire comparable period.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $19.1 million, or 20.8%, to $110.6 million for the nine months ended September 30, 2009, as compared to $91.5 million for the same period in 2008. This increase of $19.1 million is attributable to $12.2 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company, and $6.9 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.6% for the nine months ended September 30, 2009, as compared to 11.9% for the same period in 2008.
Our $350 million Line of Credit is guaranteed by substantially all of our subsidiaries and includes a $50 million limit on the issuance of letters of credit and a $25 million limit on the issuance of swingline loans. In addition, our Line of Credit may be increased to $400 million subject to the satisfaction of specified conditions. At our option, our Line of Credit (other than swingline loans) bears interest at (1) the alternate base rate, which is defined as the higher of (i) the Federal Funds Rate plus one half of 1% and (ii) the Wachovia Bank, N.A prime rate or (2) the LIBOR rate, plus, in either case, an applicable margin rate of up to 1.5% based on our consolidated leverage ratio. Swingline loans bear interest at the alternate base rate plus the applicable margin. Our Line of Credit matures on September 3, 2013. We are subject to certain covenants and restrictions specified in our Line of Credit, including covenants that require us to maintain a minimum fixed charge coverage ratio and to not exceed a specified consolidated leverage ratio, to comply with laws, and restrict us from paying dividends and making certain other distributions, as specified therein. Failure to comply with these covenants would constitute an event of default under our Line of Credit, notwithstanding our ability to meet our debt service obligations. Our Line of Credit includes various customary remedies for the lenders following an event of default. Wachovia Bank, N.A., an affiliate of Wells Fargo & Company, as administrative agent, Bank of America, N.A., as syndication agent, and U.S. Bank, N.A., as documentation agent, have aggregate commitments of $205 million under our Line of Credit, and the remaining commitments of $145 million are held by seven other lenders.
Read the The complete ReportMD is in the portfolios of David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
Mednax Inc. formerly Pediatrix Medical Group Inc. is a healthcare services company that focuses on physician services for newborn maternal-fetal pediatric subspecialty and anesthesia care. The company through its subsidiaries provides these services in the United States and Puerto Rico. In addition MEDNAX engages in clinical research monitoring clinical outcomes and implementing clinical initiatives. Mednax, Inc. has a market cap of $2.41 billion; its shares were traded at around $51.92 with a P/E ratio of 15.78 and P/S ratio of 2.25.
Highlight of Business Operations:
Our net patient service revenue increased $64.1 million, or 24.0%, to $331.3 million for the three months ended September 30, 2009, as compared to $267.2 million for the same period in 2008. Of this $64.1 million increase, $44.9 million, or 70.0%, was attributable to revenue generated from acquisitions completed after June 30, 2008. Same-unit net patient service revenue increased $19.2 million, or 7.4%, for the three months ended September 30, 2009. The change in same-unit net patient service revenue was the result of increased revenue of $12.5 million from higher patient service volumes across our specialties and $6.7 million related to pricing and reimbursement factors. Increased revenue of $12.5 million from higher patient service volumes includes $6.4 millionGeneral and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $6.9 million, or 22.4%, to $37.6 million for the three months ended September 30, 2009, as compared to $30.7 million for the same period in 2008. This increase of $6.9 million is attributable to $5.0 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $1.9 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.4% for the three months ended September 30, 2009, as compared to 11.5% for the same period in 2008.
Our net patient service revenue increased $184.5 million, or 24.0%, to $955.0 million for the nine months ended September 30, 2009, as compared to $770.5 million for the same period in 2008. Of this $184.5 million increase, $145.5 million, or 78.9%, was attributable to revenue generated from acquisitions completed after December 31, 2007. Same-unit net patient service revenue increased $39.0 million, or 5.2%, for the nine months ended September 30, 2009. The change in same-unit net patient service revenue
was the result of increased revenue of $29.0 million from higher patient service volumes across our subspecialties and $10.0 million related to pricing and reimbursement factors. Increased revenue of $29.0 million from higher patient service volumes includes $11.0 million from a 2.3% increase in neonatal intensive care unit patient days and $18.0 million from volume growth in maternal fetal, pediatric cardiology, anesthesiology and other services, including hearing screens and newborn nursery services. Excluding the additional calendar day in February for the 2008 leap year, the increase in neonatal intensive care unit patient days was 2.7%. The net increase in revenue of $10.0 million related to pricing and reimbursement factors is primarily due to improved managed care contracting and the flow through of revenue from price increases, partially offset by a decrease in revenue caused by an increase in the percentage of our patients being enrolled in government-sponsored programs. Payments received from government-sponsored programs are substantially less than payments received from commercial insurance payors for equivalent services. Same units are those units at which we provided services for the entire current period and the entire comparable period.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $19.1 million, or 20.8%, to $110.6 million for the nine months ended September 30, 2009, as compared to $91.5 million for the same period in 2008. This increase of $19.1 million is attributable to $12.2 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company, and $6.9 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.6% for the nine months ended September 30, 2009, as compared to 11.9% for the same period in 2008.
Our $350 million Line of Credit is guaranteed by substantially all of our subsidiaries and includes a $50 million limit on the issuance of letters of credit and a $25 million limit on the issuance of swingline loans. In addition, our Line of Credit may be increased to $400 million subject to the satisfaction of specified conditions. At our option, our Line of Credit (other than swingline loans) bears interest at (1) the alternate base rate, which is defined as the higher of (i) the Federal Funds Rate plus one half of 1% and (ii) the Wachovia Bank, N.A prime rate or (2) the LIBOR rate, plus, in either case, an applicable margin rate of up to 1.5% based on our consolidated leverage ratio. Swingline loans bear interest at the alternate base rate plus the applicable margin. Our Line of Credit matures on September 3, 2013. We are subject to certain covenants and restrictions specified in our Line of Credit, including covenants that require us to maintain a minimum fixed charge coverage ratio and to not exceed a specified consolidated leverage ratio, to comply with laws, and restrict us from paying dividends and making certain other distributions, as specified therein. Failure to comply with these covenants would constitute an event of default under our Line of Credit, notwithstanding our ability to meet our debt service obligations. Our Line of Credit includes various customary remedies for the lenders following an event of default. Wachovia Bank, N.A., an affiliate of Wells Fargo & Company, as administrative agent, Bank of America, N.A., as syndication agent, and U.S. Bank, N.A., as documentation agent, have aggregate commitments of $205 million under our Line of Credit, and the remaining commitments of $145 million are held by seven other lenders.
Read the The complete ReportMD is in the portfolios of David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
