MEDNAX Reports 2009 Third Quarter EPS of $1.03

http://www.businesswire.com/news/home/20091102005285/en

FORT LAUDERDALE, Fla.--(Business Wire)--
MEDNAX, Inc. (NYSE:MD) today reported record results from operations for the
three months and nine months ended September 30, 2009, that reflect
contributions from acquisitions, same-unit revenue growth and operating
efficiencies.

For the 2009 third quarter, MEDNAX reported quarterly record results for:

* Revenue, which was $331.3 million, an increase of 24 percent over the
prior-year;
* Operating income of $78.3 million, which grew by 26 percent as operating
margin increased to 23.7 percent;
* Net income from continuing operations of $48.1 million, an increase of 29
percent;
* Net income per share from continuing operations of $1.03, which grew by 27
percent; and
* Record quarterly cash flow from operations of $106.7 million.

"We continue to see the benefits of our business model, which successfully
balances the growth opportunities that come from our ability to attract
physicians to our national medical group practice model and achieve efficiencies
under our management programs," said Roger J. Medel, M.D., Chief Executive
Officer of MEDNAX. "We remain excited about the long-term growth prospects for
our organization, both within our historical subspecialties and our emerging
anesthesia specialty. At the same time, we are making better use of our
administrative infrastructure to improve operating results across all of our
physician services."

For the three months ended September 30, 2009, MEDNAX`s net patient service
revenue of $331.3 million increased by 24 percent from $267.2 million reported
for the 2008 third quarter.

Revenue increased largely due to acquisitions completed during the past 12
months, including an anesthesiology group practice acquired at the end of the
2008 third quarter.

Same-unit revenue increased by 7.4 percent, and consisted of patient volume
growth across all of the Company`s physician specialties and subspecialties of
4.8 percent and growth of 2.6 percent related to reimbursement factors.

At neonatal intensive care units staffed by MEDNAX`s Pediatrix Medical Group,
patient volume increased by 4.0 percent, on a same-unit basis, for the 2009
third quarter when compared with the prior-year period.

MEDNAX`s same-unit revenue growth related to reimbursement factors for the 2009
third quarter continues to benefit from improved reimbursement for services
covered under third-party commercial payor programs. This was offset by an
increase in the percentage of its services reimbursed under government programs
during the 2009 third quarter, compared with the prior-year period. On a
sequential basis, the percentage of MEDNAX`s services reimbursed under
government programs for the 2009 third quarter was approximately 2 percentage
points higher than for the 2009 second quarter.

Income from operations for the 2009 third quarter grew by 26 percent, to $78.3
million, from $62.2 million for the comparable 2008 period. Operating margin of
23.7 percent for the 2009 third quarter improved by 37 basis points from the
prior-year period, due largely to revenue growth leading to operating
efficiencies in both practice and administrative services. As a percent of
revenue, general and administrative expenses declined by 15 basis points, to
11.36 percent for the 2009 third quarter when compared with the prior-year
period.

MEDNAX`s tax rate was 38.45 percent for the 2009 third quarter, down from 39.25
for the 2008 third quarter as a result of lower reserve requirements related to
the expiration of the statute of limitations on certain items.

MEDNAX`s net income from continuing operations for the 2009 third quarter of
$48.1 million increased by 29 percent from $37.4 million for the 2008 third
quarter, principally as a result of revenue growth, operating efficiencies,
reduced interest expense and a lower tax rate. MEDNAX earned $1.03 per share
based on a weighted average 46.7 million shares outstanding for the 2009 third
quarter, up 27 percent from 81 cents per share, based on a weighted average 46.2
million shares outstanding for the 2008 third quarter.

For the nine months ended September 30, 2009, MEDNAX`s net patient service
revenue was $955.0 million, up 24 percent from $770.5 million for the first nine
months of 2008. Operating income grew by 19 percent to $209.7 million for the
nine months ended September 30, 2009, from $176.7 million for the comparable
2008 period. Both income from continuing operations and net income were $125.4
million through nine months of 2009, or $2.71 per share based on a weighted
average 46.3 million shares outstanding. This compares with income from
continuing operations of $107.7 million, or $2.26 per share based on a weighted
average 47.6 million shares outstanding, through nine months of 2008. Net income
through nine months of 2008 was $130.2 million, or $2.74 per share, which
includes income from discontinued operations, net of income taxes, of $22.5
million related to the sale of the Company`s metabolic screening laboratory.

At September 30, 2009, MEDNAX had cash and cash equivalents of $20.9 million.
The Company had an outstanding balance of $85.5 million on its $350 million
revolving credit facility.

MEDNAX`s cash flow from operations for the 2009 third quarter was $106.7 million
and the Company continued to use its cash to reduce debt levels and complete
acquisitions. During the 2009 third quarter, MEDNAX reduced amounts outstanding
on its revolving credit facility by $66.5 million. In addition, the Company
invested $41.1 million of its cash to fund its acquisitions, including two group
practices, a neonatal group in Nashville, Tennessee and a multi-state pediatric
subspecialty group based in Las Vegas, Nevada, and to make contingent purchase
price payments for previous acquisitions.

Through nine months of 2009, MEDNAX has generated $168.5 million in cash flow
from operations. The Company has invested $103.4 million this year to fund
acquisitions, including eight physician group practices, as well as to make
contingent purchase price payments for previous acquisitions.

Outlook

MEDNAX expects earnings per share for the 2009 fourth quarter to be in a range
of 95 cents to $1.01. This outlook anticipates a range for same-unit NICU
patient volume of 1 percent lower to as much as 1 percent higher for the 2009
fourth quarter when compared with the 2008 fourth quarter, and that the
percentage of services reimbursed under government programs for the 2009 fourth
quarter will range from as much as 2 percentage points higher to unchanged when
compared with the 2009 third quarter.

Earnings conference call

MEDNAX will host an investor conference call at 10 a.m. (EST) today to discuss
the quarterly results and near-term outlook. The conference call Webcast may be
accessed from the Company`s Website, www.mednax.com. A telephone replay of the
conference call will be available from noon (EST) today through midnight (EST)
November 16, 2009, by dialing 800-475-6701, access code 117158. The replay will
also be available at www.mednax.com.

ABOUT MEDNAX

MEDNAX, Inc., is a national medical group that comprises the nation`s leading
provider of neonatal, maternal-fetal and pediatric physician subspecialty
services as well as anesthesia services. Physicians and advanced practitioners
practicing as part of MEDNAX are reshaping the delivery of care within their
specialties and subspecialties, using evidence-based tools, continuous quality
initiatives and clinical research to enhance patient outcomes and provide
high-quality, cost-effective care. Pediatrix Medical Group, a unit of MEDNAX,
was founded in 1979 and now includes neonatal physicians who provide services at
more than 250 neonatal intensive care units, who collaborate with affiliated
maternal-fetal medicine, pediatric cardiology and pediatric intensivist
physician subspecialists to provide a clinical care continuum. Pediatrix is also
the nation`s largest provider of newborn hearing screens. In 2007, the Company
expanded into anesthesia services. Today, American Anesthesiology includes more
than 450 anesthesiologists and advanced practitioners. MEDNAX, through its
affiliated professional corporations, employs more than 1,400 physicians in 33
states and Puerto Rico. Additional information is available at www.mednax.com.

Certain statements and information in this press release may be deemed to
contain forward-looking statements which 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 MEDNAX undertakes no duty to update or
revise any such statements, whether as a result of new information, future
events or otherwise. Forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties. Important factors that
couldcause actual results, developments, and business decisions to differ
materially from forward-looking statements are described in MEDNAX`s most recent
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the
sections entitled "Risk Factors", as well as MEDNAX`s current reports on Form
8-K,filed with the Securities and Exchange Commission.

MEDNAX, Inc.
Consolidated Statements of Income
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(in thousands, except for per share data)

Net patient service revenue $ 331,276 $ 267,185 $ 954,976 $ 770,462

Operating expenses:
Practice salaries and benefits 198,229 159,799 583,993 461,855
Practice supplies and operating expenses 13,100 11,145 38,539 31,388
General and administrative expenses 37,648 30,749 110,593 91,521
Depreciation and amortization 3,956 3,296 12,106 9,051

Total operating expenses 252,933 204,989 745,231 593,815

Income from operations 78,343 62,196 209,745 176,647

Investment income 430 487 1,300 2,445
Interest expense (570 ) (1,126 ) (2,405 ) (1,846 )

Income from continuing operations before taxes 78,203 61,557 208,640 177,246

Income tax provision (30,069 ) (24,161 ) (83,237 ) (69,549 )

Income from continuing operations 48,134 37,396 125,403 107,697

Income from discontinued operations, net of
income taxes - - - 22,519

Net income $ 48,134 $ 37,396 $ 125,403 $ 130,216

Per common and common equivalent share data (diluted):

Net income from continuing operations $ 1.03 $ 0.81 $ 2.71 $ 2.26

Net income from discontinued operations $ - $ - $ - $ 0.48

Net income $ 1.03 $ 0.81 $ 2.71 $ 2.74

Weighted average shares used in computing net income per common and common equivalent share (diluted) 46,664 46,178 46,279 47,584

Balance Sheet Highlights
(Unaudited)

As of As of
Sep. 30, 2009 Dec. 31, 2008
(in thousands)
Assets:
Cash and cash equivalents $ 20,865 $ 14,346
Short-term investments 7,159 20,764
Accounts receivable, net 164,023 162,395
Other current assets 96,599 87,396
Other assets, property and equipment 1,363,528 1,211,973
Total assets $ 1,652,174 $ 1,496,874

Liabilities and shareholder's equity:
Accounts payable & accrued expenses $ 333,497 $ 302,584
Total debt 86,014 140,114
Other liabilities 115,830 89,038
Total liabilities 535,341 531,736
Shareholders' equity 1,116,833 965,138
Total liabilities and shareholders' equity $ 1,652,174 $ 1,496,874

MEDNAX, Inc.
Bob Kneeley, Director, Investor Relations
954-384-0175, x-5300
bob_kneeley@mednax.com

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