MEDNAX, Inc. (NYSE:MD) Q1 2022 Earnings Conference Call April 28, 2022 9:00 AM ET Company Participants Charles Lynch - SVP, Finance, Strategy & IR Mark Ordan - CEO & Director Marc Richards - EVP & CFO James Swift - Chief Development Officer Conference Call Participants Tao Qiu - Stifel, Nicolaus & Company A.J. Rice - Cr??dit Suisse Nicholas Spiekhout - William Blair & Company Whit Mayo - SVB Leerink Kevin Fischbeck - Bank of America Merrill Lynch Operator Ladies and gentlemen, thank you for standing by, and ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Mednax reported a Q1 2022 net loss of **$21.2 million** driven by a **$57.0 million** debt extinguishment loss, despite **7.9%** revenue growth and significant balance sheet shifts [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$2.34 billion** as of March 31, 2022, primarily due to a significant reduction in cash for debt redemption, with total liabilities also decreasing Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,179 | $387,391 | | Total current assets | $439,777 | $840,564 | | Goodwill | $1,528,694 | $1,505,430 | | Total assets | $2,340,976 | $2,722,546 | | **Liabilities & Equity** | | | | Total current liabilities | $269,727 | $427,366 | | Long-term debt and finance lease liabilities, net | $655,930 | $1,002,258 | | Total liabilities | $1,463,900 | $1,825,854 | | Total equity | $877,076 | $896,692 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net revenue increased **7.9%** to **$482.2 million** in Q1 2022, but a **$57.0 million** debt extinguishment loss led to a **$20.9 million** loss from continuing operations Consolidated Statements of Income (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net revenue | $482,229 | $446,753 | | Income from operations | $39,108 | $26,104 | | Loss on early extinguishment of debt | $(57,016) | $(14,532) | | (Loss) income from continuing operations | $(20,945) | $5,344 | | Net (loss) income attributable to Mednax, Inc. | $(21,188) | $17,642 | | Diluted (Loss) income per share from continuing operations | $(0.25) | $0.06 | | Diluted Net (loss) income per share | $(0.25) | $0.21 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$97.5 million**, with financing activities using **$256.5 million** primarily for debt redemption, resulting in a **$380.2 million** net cash decrease Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(97,482) | $(82,188) | | Net cash used in investing activities | $(26,273) | $(10,364) | | Net cash used in financing activities | $(256,457) | $(761,661) | | **Net decrease in cash and cash equivalents** | **$(380,212)** | **$(854,213)** | | Cash and cash equivalents at end of period | $7,179 | $269,630 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail normalized COVID-19 impact, **$10.4 million** in CARES Act funds, a major debt restructuring, and a **$26.0 million** pediatric urgent care acquisition - The company's operating results were not materially impacted by COVID-19 in 2021 or Q1 2022, though uncertainty remains. Affiliated practices received **$10.4 million** in CARES Act relief funds during Q1 2022[25](index=25&type=chunk)[26](index=26&type=chunk) Net Revenue by Category (in thousands) | Category | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net patient service revenue | $406,035 | $381,063 | | Hospital contract administrative fees | $63,526 | $57,066 | | Other revenue | $12,668 | $8,624 | | **Total Net Revenue** | **$482,229** | **$446,753** | - In Q1 2022, the company acquired one pediatric urgent care practice for **$26.0 million**, recording **$23.3 million** in goodwill[39](index=39&type=chunk) - On February 11, 2022, the company issued **$400.0 million** of **5.375%** senior notes due 2030 and entered into a new credit agreement with a **$450 million** revolving credit line and a **$250 million** term loan. Proceeds were used to redeem the **$1.0 billion** **6.25%** senior notes due 2027[44](index=44&type=chunk)[46](index=46&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **7.9%** revenue growth, improved operating income, and the **$57.0 million** debt extinguishment loss, highlighting non-GAAP Adjusted EBITDA growth and sufficient liquidity post-refinancing [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net revenue increased **7.9%** to **$482.2 million** in Q1 2022, with operating income growing **49.8%** to **$39.1 million**, though non-operating expenses rose due to debt extinguishment - Same-unit net revenue increased by **$5.6 million** (**1.3%**), driven by a **$14.2 million** (**3.2%**) increase from patient service volumes, partially offset by an **$8.6 million** (**1.9%**) decrease from net reimbursement-related factors[88](index=88&type=chunk) - General and administrative expenses decreased by **$5.2 million** to **$61.3 million**, primarily due to lower professional fees and savings in revenue cycle management expenses[91](index=91&type=chunk) - The company reported a loss from continuing operations of **$20.9 million**, compared to income of **$5.4 million** in Q1 2021, driven by the **$57.0 million** loss on early debt extinguishment[97](index=97&type=chunk)[95](index=95&type=chunk) [Non-GAAP Measures](index=15&type=section&id=Non-GAAP%20Measures) Non-GAAP Adjusted EBITDA from continuing operations increased to **$50.7 million** in Q1 2022, with Adjusted EPS rising to **$0.33**, providing a clearer view of underlying performance Reconciliation of Non-GAAP Measures (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Adjusted EBITDA** | | | | (Loss) income from continuing operations | $(20,941) | $5,352 | | Adjustments (Interest, Tax, D&A, etc.) | $71,623 | $39,789 | | **Adjusted EBITDA from continuing operations** | **$50,682** | **$45,483** | | **Adjusted EPS** | | | | Diluted (Loss) income from cont. ops. per share | $(0.25) | $0.06 | | Adjustments (Amortization, Stock Comp, etc.) | $0.58 | $0.18 | | **Adjusted Diluted EPS from continuing operations** | **$0.33** | **$0.24** | [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company held **$7.2 million** in cash, having completed a major debt refinancing to issue **$400 million** in new notes and secure a new credit facility - Net cash used in financing activities of **$256.5 million** primarily consisted of the **$1.05 billion** redemption of 2027 Notes, offset by proceeds from **$400.0 million** in new 2030 Notes, a **$250.0 million** term loan, and **$149.0 million** in net borrowings on the revolving credit line[107](index=107&type=chunk) - The company recognized a loss on early extinguishment of debt of **$57.0 million** in Q1 2022 related to the debt refinancing[113](index=113&type=chunk) - Management believes that funds from operations, cash on hand, and availability under the Amended Credit Agreement are sufficient to meet obligations for at least the next 12 months[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its **$399.0 million** variable-rate debt, where a **1%** change impacts annual income by **$4.0 million** - The company is exposed to interest rate risk on its **$399.0 million** Amended Credit Agreement, which has a variable rate based on SOFR[122](index=122&type=chunk) - A hypothetical **1%** change in interest rates would result in an approximate **$4.0 million** annual impact to income before taxes[122](index=122&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2022[124](index=124&type=chunk) - No material changes in internal control over financial reporting occurred during the first quarter of 2022[125](index=125&type=chunk) [PART II - OTHER INFORMATION](index=21&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, primarily medical malpractice claims, which management does not expect to materially impact financial condition - The company is subject to audits, inquiries, and investigations from government authorities, as well as pending and threatened legal actions, primarily medical malpractice claims[128](index=128&type=chunk)[129](index=129&type=chunk) - The company self-insures a significant portion of its professional liability risk through a wholly owned captive insurance subsidiary[130](index=130&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the company's Annual Report on Form 10-K for December 31, 2021 - No material changes to risk factors were reported since the 2021 Form 10-K filing[131](index=131&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, the company repurchased **49,707** common shares for **$1.2 million** to satisfy tax withholding obligations related to restricted stock vesting - In Q1 2022, the company repurchased **49,707** shares of common stock for an aggregate of **$1.2 million**[132](index=132&type=chunk)[133](index=133&type=chunk) - The repurchases were conducted to satisfy minimum statutory withholding obligations in connection with the vesting of restricted stock[132](index=132&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including documents for new senior notes, the amended credit agreement, and Sarbanes-Oxley certifications - Key exhibits filed include the form of the **5.375%** Senior Notes due 2030, the amended and restated credit agreement, and Sarbanes-Oxley certifications[135](index=135&type=chunk)

Financial Data and Key Metrics Changes - The fourth quarter results were in line with expectations, reflecting a strong recovery from the previous year, with total births at hospitals providing NICU services up 5% and NICU days up 5.6% on a same-unit basis [5][6] - The company recorded significant funds from the CARES Act, totaling $26 million in revenue and $16.5 million in adjusted EBITDA for the quarter [8][9] - The outlook for 2022 includes expected revenue of approximately $2 billion and adjusted EBITDA of at least $270 million, with a focus on efficiency improvements [8][16] Business Line Data and Key Metrics Changes - The company achieved solid results in 2021 compared to pre-pandemic levels, with same-unit volumes growing by roughly 1% despite a 2.5% decline in the first quarter of the previous year [6][8] - The transition of revenue cycle operations to R1 is expected to yield meaningful savings, which began to be seen in Q3 of the previous year [7][9] Market Data and Key Metrics Changes - The payer mix was favorable year-over-year, reflecting a slightly favorable comparison to pre-pandemic levels [5] - The company is focused on expanding its pediatric primary and urgent care clinics, with recent acquisitions in Houston and Orlando [10][11] Company Strategy and Development Direction - The company is transitioning to operate under a unified Pediatrix brand, which is expected to strengthen existing relationships and open new opportunities [12][13] - The company is committed to environmental, social, and governance (ESG) goals, having improved its average ISS ESG quality score from over six to three [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of surprise billing legislation is currently limited due to a strong payer relationship and a diversified contract portfolio [15] - The company has not experienced significant workforce pressures or turnover, although the recruiting environment remains challenging [32] Other Important Information - The refinancing of the capital structure is expected to reduce annual debt service expenses by more than half and lower the weighted average interest rate on borrowings from 6.25% to under 4% [18][19] - The company is evaluating several markets for new clinic openings, with plans to open new clinics before the end of the year [45] Q&A Session Summary Question: Initial evidence from payers regarding surprise billing regulation - Management indicated a mix of responses from payers, with some contracts being renewed at higher rates while others are waiting to see how the situation develops [24] Question: Impact of supply chain issues - Management stated that they are not assuming any impact from surprise billing in their numbers, but expect modifications to the IFR based on feedback received [29] Question: Workforce pressures and inflation - Management reported no material workforce pressures so far, although they acknowledge the tough recruiting environment [32] Question: Update on Brave Care acquisition integration - Integration of Brave Care's technology into existing platforms is ongoing and expected to enhance patient experience in clinics [34] Question: Accounts receivable increase and CMS guidance on newborn screenings - Management explained that the increase in accounts receivable was expected due to the transition of the RCM function, and the impact from CMS changes on newborn screenings was noted but not significant to overall revenue [38][40] Question: G&A guidance and savings opportunities - Management discussed ongoing efforts to streamline operations and the potential for future savings from the RCM outsourcing initiative [42][43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K | FLORIDA | 26-3667538 | | --- | --- | | (State or other jurisdiction | (I.R.S. Employer | | of incorporation or organization) | Identification No.) | | 1301 Concord Terrace, Sunrise, Florida | 33323 | (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (954) 384-0175 Securities registered pursuant to Section 12(b) of the Act: ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-12111 Mednax, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of Incorporation ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $473 million, exceeding internal expectations, with adjusted EBITDA of $66 million [10][48] - Adjusted EBITDA for 2021 is now expected to be above $240 million, an increase from the previous expectation of at least $220 million [10][49] - Operating cash flow for the second quarter was strong at $70 million, with cash at the end of the quarter at $338 million, up from $270 million at the end of the first quarter [48] Business Line Data and Key Metrics Changes - Total patient volumes increased by 1.3% compared to the second quarter of 2019, with hospital-based services up by 10 basis points and office-based services up by 5.2% [9][10] - Pediatric intensive care unit volumes were up 11.5% compared to the second quarter of 2019, while pediatric surgery volumes increased by 8% and maternal fetal medicine volumes rose by 9% [29][30] Market Data and Key Metrics Changes - The payer mix remained favorable year-over-year for the second consecutive quarter, with non-government volume up about 35 basis points [9][73] - Government reimbursement as a percentage of revenue decreased to 24% in Q2 2021 from 27% in 2020, indicating a shift in payer mix [78] Company Strategy and Development Direction - The company is focusing on building momentum in its core services and enhancing patient access, which has already added approximately $2 million to the top line in Q2 [12][13] - There is a strategic emphasis on expanding into children's primary and urgent care, with plans for new clinic openings and investments in this area [18] - The company is also making significant progress in improving operational efficiency through restructuring and technology upgrades, including transitioning revenue cycle management to R1 [42][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA above $270 million in 2022, driven by ongoing growth initiatives and efficiency improvements [21][49] - The rise in COVID-19 cases due to the Delta variant poses risks, but management remains optimistic about the recovery and growth trajectory [11][12] Other Important Information - The company completed several acquisitions, including child neurology consultants, to enhance its specialty services [16] - A significant data center consolidation and the implementation of an Oracle ERP solution were completed, which are expected to improve operational efficiency [45] Q&A Session Summary Question: NICU days increased more than birth numbers - Management explained that the NICU admission rate had reverted to trend after being below trend in 2020, leading to the observed differential [53][54] Question: Impact of vaccine approvals for under 12 population - Management indicated that while primary care pediatricians are involved in vaccinations, the overall impact on the company may not be significant [55] Question: Acquisition strategy and expansion into other specialties - Management confirmed a broad strategy to provide women's and children's health services, including subspecialties beyond traditional areas [56][57] Question: G&A efficiency opportunities - Management highlighted ongoing efforts to improve efficiency and reduce G&A costs through focused operations and restructuring [60][62] Question: Impact of managed care changes in Texas - Management acknowledged the challenges but expressed optimism about returning to network status with payers [68][69] Question: Sustainability of payer mix changes - Management noted that the current payer mix reflects a return to historical trends, but it is uncertain if this will stabilize at the new levels [78][79] Question: EBITDA margin expansion expectations - Management explained that recent investments in technology and infrastructure have impacted margins, but they expect improvements as these initiatives take effect [81][84] Question: Long-term EBITDA growth outlook - Management expressed optimism about future growth, indicating that they expect to exceed $270 million in adjusted EBITDA and continue to grow beyond that [99][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-12111 Mednax, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of Incorporation or or ...

Financial Data and Key Metrics Changes - The company's net revenue grew by $5.5 million or just over 1% year-over-year, with same unit revenue increasing by 2.5% year-over-year [37] - Adjusted EBITDA for Q1 2021 was $45 million, which is still below the first quarter of 2019, reflecting an 18% decline compared to Q1 2019 [16][17] - The company expects 2021 adjusted EBITDA to be at or above $220 million, with a focus on recovering to pre-pandemic levels [15][70] Business Line Data and Key Metrics Changes - Patient volumes improved throughout Q1, with same unit growth in March across all service lines except for PeekYou and pediatric hospitalist services [39] - NICU days for the quarter were down slightly more than total births at hospitals where NICU coverage is provided, indicating a modest year-over-year decline in average length of stay [40] - Same unit volumes declined approximately 3% compared to the same period in 2019, with hospital-based volume down more than office-based volume [41] Market Data and Key Metrics Changes - The payor mix improved by 110 basis points compared to 2020, contributing roughly $5 million in revenue or over 1% to pricing growth for the quarter [42] - The company recorded about $8 million in revenue from the Provider Relief Fund during the quarter, which positively impacted overall revenue [37] Company Strategy and Development Direction - The company aims to reinforce its position as a leading provider of women's and children's healthcare, focusing on patient care and operational efficiency [20] - Plans include expanding pediatric primary and urgent care services to enhance patient access and strengthen community relationships [30][31] - A marketing campaign has been launched to increase brand awareness and trust in the company's services [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing volatility in operating results and the uncertain nature of recovery from COVID-19 impacts [18][19] - The company is optimistic about achieving a run rate of $270 million in adjusted EBITDA post-COVID, driven by operational improvements and strategic initiatives [19] - Management emphasized the importance of taking great care of patients as a core principle guiding the company's operations [21] Other Important Information - The company ended the quarter with $270 million in cash and net debt of $730 million, indicating a leverage ratio just over 3x [47] - G&A expenses were down nearly $1 million year-over-year, despite incurring costs related to transitional services provided to buyers of anesthesia and radiology medical groups [44] Q&A Session Summary Question: Understanding volume recovery for the rest of the year - Management noted that while there has been upward volatility in volumes, it is too early to make bullish predictions about recovery trends [52][54] Question: Impact of TSA on guidance - Management indicated that there will be residual costs from winding down TSA services, which may not be one-for-one with revenue collection [58] Question: Commercial mix improvement - Management stated that the payor mix is returning to expected levels after an anomaly in the fourth quarter [64] Question: Update on deal pipeline and acquisitions - Management confirmed a strong pipeline for both organic growth and acquisitions, particularly in pediatrics and obstetrics [67] Question: Guidance for Q2 EBITDA - Management provided a consensus estimate for Q2 EBITDA around $50 million to $55 million, emphasizing caution due to ongoing volatility [70][100]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-12111 Mednax, Inc. (Exact name of registrant as specified in its charter) Florida 26-3667538 (State or other jurisdictio ...

MEDNAX, Inc. (NYSE:MD) Q4 2020 Earnings Conference Call February 18, 2021 9:00 AM ET Company Participants Charles Lynch ??? Senior Vice President, Finance and Strategy Mark Ordan ??? Chief Executive Officer Marc Richards ??? Chief Financial Officer Mack Hinson ??? President-Pediatrix and Obstetrix Medical Group Conference Call Participants Rob Moon ??? Credit Suisse Ralph Giacobbe ??? Citi Kevin Fischbeck ??? Bank of America Pito Chickering ??? Deutsche Bank Nick Spiekhout ??? William Blair Whit Mayo ??? UB ...