MEDNAX, Inc. (NYSE:MD) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET

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MEDNAX, Inc. (NYSE:MD) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the MEDNAX 2018 Fourth Quarter Earnings Conference Call. All participants are in listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Charles Lynch. Please go ahead.

Executive
Charles W. Lynch

Thanks, operator, and good morning, everyone. I'm going to quickly read our forward-looking statements and then I'll turn the call over to Roger Medel. 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 Annual Report on Form 10-K and in the Investors section of our website located at mednax.com.

With that, I'll turn the call over to Roger Medel, our CEO.

Executive
Roger J. Medel

Thank you, Charlie. Good morning and thanks for joining our call. I am happy to report that our EBITDA and EPS results were within the ranges that we provided previously, as well same unit revenue growth improved compared to the third quarter with volume increases across all of our service lines, except for neonatology. Finally, we also met the 2018 targets that we established for our corporate and operating initiatives. And during the fourth quarter, we also completed a $250 million share repurchase program.

Looking across our service lines, our women and children services were affected by continuing softness in birth volumes, with total deliveries at the hospitals where we cover the neonatal ICU declining modestly for the quarter. Our other specialties within this service line, including maternal-fetal medicine and pediatric cardiology saw modest volume growth while newborn nursery growth was strong. This has been a focus area for us, as I have discussed in the past, and we will continue to pursue growth opportunities in this area.

Our payor mix was also favorable compared to the prior year, which is similar to what we saw during the third quarter. In anesthesia, our results were largely in line with our own expectations. Volume growth was modestly positive