MEDNAX, Inc (MD) has reported 15.77 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $78.08 million, or $0.84 a share in the quarter, compared with $92.70 million, or $0.99 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $93.55 million, or $1 a share compared with $105.31 million or $1.13 a share, a year ago. Revenue during the quarter grew 12 percent to $830.77 million from $741.74 million in the previous year period. Total expenses were 82.81 percent of quarterly revenues, up from 79.65 percent for the same period last year. That has resulted in a contraction of 317 basis points in operating margin to 17.19 percent.
Operating income for the quarter was $142.78 million, compared with $150.96 million in the previous year period.
“The fourth quarter of 2016 continued a period of significant strategic development for our Company,” said Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. “Our results were impacted by same-unit neonatology patient volumes and the timing of acquisitions. However, our activity to date in 2017 reflects a robust acquisition pipeline, including our first addition of an on-site radiology practice. Additionally, our recruiting progress in teleradiology, combined with the further integration of Cardon Outreach into our management-services sales efforts, has created opportunities for additional organic growth initiatives in the future. Entering 2017, we believe we are well positioned to improve upon our recent growth and provide broad-based service capabilities to our partners, driven by our commitment to great patient care, clinical research, education and quality.”
For the first-quarter, Mednax expects revenue to grow in the range of 1 percent to 3 percent. The company projects diluted earnings per share to be in the range of $0.69 to $0.73 for the first-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.86 to $0.90 for the first-quarter.
Debt increases substantially
Mednax has witnessed an increase in total debt over the last one year. It stood at $1,705.68 million as on Dec. 31, 2016, up 33.81 percent or $430.98 million from $1,274.70 million on Dec. 31, 2015. Total debt was 31.95 percent of total assets as on Dec. 31, 2016, compared with 28.03 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.52 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 8.73 for the quarter from 17.77 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
