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Mednax Q4 Profit Tops Estimate; Sees Q1 EPS Below View - Quick Facts

Mednax Inc.'s (MD) fourth-quarter net income was $66.1 million or $1.32 per share, up from $58.4 million or $1.19 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.30 per share for the quarter. Analysts' estimates typically exclude special items.

For the 2012 fourth quarter, operating income was $103.0 million, up 12.6 percent from $91.5 million for the prior-year period. Operating margin decreased to 21.9 percent for the 2012 fourth quarter, from 22.6 percent for the prior-year period, primarily as a result of variability in margins due to the mix of practices acquired since October 2011 along with an increase in operating expenses during the 2012 fourth quarter as compared to the 2011 fourth quarter.

Net patient service revenue for the quarter rose to $471.33 million from $404.90 million in the year ago quarter. Thirteen analysts had consensus revenue estimate of $473.70 million for the quarter. The company's revenue growth attributable to contributions from recently acquired practices was 13.3 percent, while overall same-unit revenue grew by 3.1 percent when compared to the 2011 fourth quarter.

For the 2013 first quarter, the company expects earnings will be in a range of $1.05 to $1.10 per share. This outlook assumes that total same-unit revenue growth for the quarter will grow by 1.0 percent to 3.0 percent from the prior-year period. Analysts expect the company to report earnings of $1.15 per share for the first-quarter.

The company expects to invest approximately $400 million to complete practice acquisitions across all MEDNAX physician specialties throughout all of 2013, the majority of which is expected to be invested in its American Anesthesiology division, and the remainder in its Pediatrix Medical Group division.

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