MEDNAX, INC. (MD, Financial) filed Quarterly Report for the period ended 2010-06-30.
Mednax, Inc. has a market cap of $2.23 billion; its shares were traded at around $47.3 with a P/E ratio of 12.5 and P/S ratio of 1.7. Mednax, Inc. had an annual average earning growth of 18.6% over the past 10 years. GuruFocus rated Mednax, Inc. the business predictability rank of 5-star.MD is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, David Dreman of Dreman Value Management, Columbia Wanger of Columbia Wanger Asset Management, Richard Pzena of Pzena Investment Management LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Practice supplies and other operating expenses increased $1.3 million, or 9.9%, to $14.1 million for the three months ended June 30, 2010, as compared to $12.8 million for the same period in 2009. The increase was attributable to practice supply and other costs of $0.7 million related to hospital-based acquisitions, rent, medical supply and other costs of $0.5 million related to our office-based acquisitions, and $0.1 million in practice supply and other costs at our existing units.
Our net patient service revenue increased $58.3 million, or 9.4%, to $682.0 million for the six months ended June 30, 2010, as compared to $623.7 million for the same period in 2009. Of this $58.3 million increase, $44.3 million, or 76.0%, was attributable to revenue generated from acquisitions completed after December 31, 2008. Same-unit net patient service revenue increased $14.0 million, or 2.3%, for the six months ended June 30, 2010. The change in same-unit net patient service revenue was the net result of increased revenue of approximately $16.4 million, or 2.7%, related to pricing and reimbursement factors partially offset by a net decrease of $2.4 million, or 0.4%, from lower overall patient service volumes across our specialties. The net increase in revenue of $16.4 million related to pricing and reimbursement factors was primarily due to improved managed care contracting and the flow through of revenue from modest 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. The net decrease in revenue of $2.4 million from lower patient service volumes includes a decrease of $1.4 million from a 0.4% decline in neonatal intensive care unit patient days, a decrease of $2.0 million from volume declines in our maternal-fetal medicine subspecialty, and a slight decline in other services, partially offset by increases of $1.2 million from volume growth in pediatric cardiology and anesthesiology. Same units are those units at which we provided services for the entire current period and the entire comparable period.
Practice supplies and other operating expenses increased $1.8 million, or 6.8%, to $27.2 million for the six months ended June 30, 2010, as compared to $25.4 million for the same period in 2009. The increase was attributable to practice supply and other costs of $1.3 million related to hospital-based acquisitions, rent, medical supply and other costs of $0.7 million related to our office-based acquisitions, partially offset by a decrease of $0.2 million in practice supply and other costs at our existing units.
As of June 30, 2010, we had $26.1 million of cash and cash equivalents on hand as compared to $26.5 million at December 31, 2009. In addition, we had working capital of $13.5 million at June 30, 2010, an increase of $67.5 million from a working capital deficit of $54.0 million at December 31, 2009. This net increase in working capital is primarily due to year-to-date earnings, proceeds from the issuance of common stock under our stock incentive and stock purchase plans and borrowings under our Line of Credit, partially offset by the use of funds for practice acquisition payments.
During the six months ended June 30, 2010, our net cash provided from financing activities of $16.4 million consisted primarily of net borrowings under our Line of Credit of $8.0 million and proceeds from the exercise of employee stock options and the issuance of common stock under our stock purchase plans of $8.0 million, partially offset by a $1.6 million payment of a contingent consideration liability. Under the current accounting guidance for business combinations, payments of contingent consideration liabilities related to acquisitions completed after January 1, 2009 are presented as cash flows from financing activities. Payments of contingent consideration liabilities related to acquisitions completed prior to January 1, 2009 are presented as cash flows from investing activities.
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Mednax, Inc. has a market cap of $2.23 billion; its shares were traded at around $47.3 with a P/E ratio of 12.5 and P/S ratio of 1.7. Mednax, Inc. had an annual average earning growth of 18.6% over the past 10 years. GuruFocus rated Mednax, Inc. the business predictability rank of 5-star.MD is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, David Dreman of Dreman Value Management, Columbia Wanger of Columbia Wanger Asset Management, Richard Pzena of Pzena Investment Management LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Our net patient service revenue increased $29.3 million, or 9.2%, to $349.1 million for the three months ended June 30, 2010, as compared to $319.8 million for the same period in 2009. Of this $29.3 million increase, $22.2 million, or 75.8%, was attributable to revenue generated from acquisitions completed after March 31, 2009. Same-unit net patient service revenue increased $7.1 million, or 2.3%, for the three months ended June 30, 2010. The change in same-unit net patient service revenue was the net result of increased revenue of approximately $8.5 million, or 2.7%, related to pricing and reimbursement factors partially offset by a net decrease of $1.4 million, or 0.4%, from lower overall patient service volumes across our specialties. The net increase in revenue of $8.5 million related to pricing and reimbursement factors was primarily due to improved managed care contracting and the flow through of revenue from modest 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. The net decrease in revenue of $1.4 million from lower patient service volumes includes a decrease of $0.3 million from a 0.1% decline in neonatal intensive care unit patient days, a decrease of $1.2 million from volume declines in our maternal-fetal medicine subspecialty, our anesthesiology specialty and other services, partially offset by an increase of $0.1 million from volume growth in our pediatric cardiology subspecialty. Same units are those units at which we provided services for the entire current period and the entire comparable period.Practice supplies and other operating expenses increased $1.3 million, or 9.9%, to $14.1 million for the three months ended June 30, 2010, as compared to $12.8 million for the same period in 2009. The increase was attributable to practice supply and other costs of $0.7 million related to hospital-based acquisitions, rent, medical supply and other costs of $0.5 million related to our office-based acquisitions, and $0.1 million in practice supply and other costs at our existing units.
Our net patient service revenue increased $58.3 million, or 9.4%, to $682.0 million for the six months ended June 30, 2010, as compared to $623.7 million for the same period in 2009. Of this $58.3 million increase, $44.3 million, or 76.0%, was attributable to revenue generated from acquisitions completed after December 31, 2008. Same-unit net patient service revenue increased $14.0 million, or 2.3%, for the six months ended June 30, 2010. The change in same-unit net patient service revenue was the net result of increased revenue of approximately $16.4 million, or 2.7%, related to pricing and reimbursement factors partially offset by a net decrease of $2.4 million, or 0.4%, from lower overall patient service volumes across our specialties. The net increase in revenue of $16.4 million related to pricing and reimbursement factors was primarily due to improved managed care contracting and the flow through of revenue from modest 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. The net decrease in revenue of $2.4 million from lower patient service volumes includes a decrease of $1.4 million from a 0.4% decline in neonatal intensive care unit patient days, a decrease of $2.0 million from volume declines in our maternal-fetal medicine subspecialty, and a slight decline in other services, partially offset by increases of $1.2 million from volume growth in pediatric cardiology and anesthesiology. Same units are those units at which we provided services for the entire current period and the entire comparable period.
Practice supplies and other operating expenses increased $1.8 million, or 6.8%, to $27.2 million for the six months ended June 30, 2010, as compared to $25.4 million for the same period in 2009. The increase was attributable to practice supply and other costs of $1.3 million related to hospital-based acquisitions, rent, medical supply and other costs of $0.7 million related to our office-based acquisitions, partially offset by a decrease of $0.2 million in practice supply and other costs at our existing units.
As of June 30, 2010, we had $26.1 million of cash and cash equivalents on hand as compared to $26.5 million at December 31, 2009. In addition, we had working capital of $13.5 million at June 30, 2010, an increase of $67.5 million from a working capital deficit of $54.0 million at December 31, 2009. This net increase in working capital is primarily due to year-to-date earnings, proceeds from the issuance of common stock under our stock incentive and stock purchase plans and borrowings under our Line of Credit, partially offset by the use of funds for practice acquisition payments.
During the six months ended June 30, 2010, our net cash provided from financing activities of $16.4 million consisted primarily of net borrowings under our Line of Credit of $8.0 million and proceeds from the exercise of employee stock options and the issuance of common stock under our stock purchase plans of $8.0 million, partially offset by a $1.6 million payment of a contingent consideration liability. Under the current accounting guidance for business combinations, payments of contingent consideration liabilities related to acquisitions completed after January 1, 2009 are presented as cash flows from financing activities. Payments of contingent consideration liabilities related to acquisitions completed prior to January 1, 2009 are presented as cash flows from investing activities.
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