MEDNAX, Inc. (NYSE:MD) Q3 2015 Earnings Conference Call Transcript

Oct 29, 2015 • 10:00 am ET

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MEDNAX, Inc. (NYSE:MD) Q3 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Ladies and gentlemen, thank you for standing by, and welcome to the MEDNAX 2015 Third Quarter Earnings Conference Call.

(Operator Instructions)

As a reminder today's call is being recorded. Your hosting speaker, Charles Lynch. Please go ahead, sir.

Executive
Charles Lynch

Thank you. Good morning everyone. I want to read our forward-looking statements and then I will turn the call over to Roger and Vivian.

Certain statements and information during this conference call may be deemed to be forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions and assessments made by MEDNAX's management in light of their experience and assessment of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate.

Any forward-looking statements made during this call are made as of today, and MEDNAX undertakes no duty to update or revise any such statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the Company's most recent annual report on Form 10-K and its quarterly reports on Form 10-Q including the sections entitled Risk Factors.

In today's remarks by management, we will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this morning's earnings press release, our quarterly report on Form 10-Q, or in the investor section of our website located at mednax.com.

With that I'd like to turn the call over to our CEO Roger Medel.

Executive
Roger Medel

Thank you, Charlie. Good morning and thanks for joining our call today to discuss our results for the third quarter of 2015. We had a strong quarter with double-digit growth in revenue and earnings per share, despite the loss of almost $16 million in parity revenue compared to last year. This quarter we generated revenue growth of more than 15%, EBITDA growth of almost 13% and adjusted EPS growth of more than 14%.

During the quarter, our pace and volumes continued to grow with NICU days up about 1.2%, and growth in anesthesia volumes, as well. vRad also continued to perform at or ahead of our expectations in their first full quarter as a part of our Company. I am be very pleased with their performance since we completed that acquisition in May.

We also continue to grow and diversify strategically. During the quarter we added two very strong entities or groups, one based in Tampa and the other one in New Jersey. These marked the eighth and ninth practice acquisitions this year. And we continue to see a strong pipeline of future deals.

We also acquired Alegis, a leading third-party receivables company specializing in revenue recovery through eligibility screening and enrollment solutions for hospitals. What's notable about this acquisition is that it's the first that we have completed through one of our portfolio companies. MedData identified Alegis as a business that would