MEDNAX, Inc. (NYSE:MD) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 09:00 am ET

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MEDNAX, Inc. (NYSE:MD) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the MEDNAX 2019 Third Quarter Earnings Conference Call. [Operator Instructions]. There will be an opportunity for your questions and instructions will be given at that time. [Operator Instructions]. I'll turn the call now over to Mr. Charles Lynch, Vice President of Strategy & IR. Please go ahead.

Executive
Charles W. Lynch

Thank you. Good morning everyone. Welcome to our third quarter earnings call. I'll briefly read through our disclosure statements then turn the call over to Roger and Stephen. 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 our CEO Dr. Roger Medel.

Executive
Roger J. Medel

Thank you Charlie. Good morning and thanks for joining our call to discuss our results for the third quarter of 2019. Our adjusted EBITDA and adjusted EPS were in line with our guidance ranges for the quarter. We saw strong body growth across our hospital base, neonatology and other pediatric services in anesthesia and in radiology, labor costs, trends remain a key focus for us. And while the environment remains challenging costs transfer the quarter were also in line with our internal expectations. Increases in nonlabor expenses offset some of the top line strength we experienced but our overall operating results were in line. Across our organization we remain intensely focused on our transformational activities whether they relate to clinical and nonclinical cost trends information technology or process improvements.

During the quarter, we continue to to expand the scope About investments and activity and Stephen will provide more detail of what we have done and our expectations. Additionally, following the organizational changes I details last quarter, the leadership of each of our core service lines are moving forward aggressively with their offer operating plants. As you know, our women and Children's Medical Group consists of pediatric center staffers, or hospital and office space medical groups. Within pediatrics patient volumes benefited