Financial Position - Total indebtedness as of December 31, 2020, was $1.75 billion, with $0.75 billion repaid in January 2021[221] - The company has $900 million of additional borrowing capacity under its revolving line of credit, which is subject to a variable interest rate[221] - The company has no outstanding borrowings on its Credit Agreement as of December 31, 2020, indicating a strong liquidity position[375] - The company is subject to market risk from interest rate changes, managing this risk through a combination of fixed and variable rate debt[375] - The carrying value of the Company's long-term debt was $1.7 billion as of December 31, 2020, with senior notes totaling $1.75 billion and a total carrying value of $1.731 billion after issuance costs[498] - The estimated fair value of the Company's 2023 Notes was $756.2 million and the 2027 Notes was $1.07 billion as of December 31, 2020[499] Revenue and Expenses - Total revenue for 2020 was $1,733,951, a decrease of 2.6% from $1,779,759 in 2019[398] - Operating expenses increased to $1,635,819 in 2020, up from $1,608,003 in 2019, reflecting a rise of 1.3%[398] - The company reported a net loss of $796,488 for 2020, compared to a net loss of $1,497,702 in 2019, indicating an improvement[398] - Cash and cash equivalents significantly increased to $1,123,843 in 2020 from $107,870 in 2019, representing a growth of 940%[398] - Total assets decreased to $3,347,948 in 2020, down from $4,145,901 in 2019, a decline of 19.2%[398] - Total liabilities slightly decreased to $2,600,231 in 2020 from $2,646,905 in 2019, a reduction of 1.8%[398] - Shareholders' equity dropped to $747,717 in 2020, down from $1,498,996 in 2019, a decrease of 50%[398] - The company incurred transformational and restructuring related expenses of $73,801 in 2020, compared to $60,890 in 2019, an increase of 21.5%[398] Cash Flow - Net cash provided by operating activities for continuing operations was $153,888, an increase from $74,091 in 2019[404] - Total net cash provided by operating activities decreased to $204,620 from $357,711 in 2019[404] - The company reported a net cash used in financing activities of $4,158, a decrease from $393,070 in 2019[404] Operational Challenges - A significant portion of cash flow from operations will be required to service interest and principal payments on debt, limiting availability for operations and expansion[224] - The company faces risks related to litigation, including potential claims for breach of contract and negligence, which could adversely affect financial condition and results of operations[217] - The company is dependent on third-party payors for a significant portion of net revenue, with risks of uncollectible and delayed reimbursements impacting cash flows[218] - Recruitment and retention of qualified physicians and clinicians are critical, with potential increases in compensation expenses due to market demand[228] - Information systems are essential for operations, and disruptions could lead to billing errors and increased administrative expenses[232] - Cybersecurity risks have increased, with potential breaches leading to financial loss and damage to reputation[235] - The company may face challenges in collecting reimbursements due to administrative issues and disputes with payors, affecting revenue and cash flows[219] - Legal fees associated with litigation could adversely impact financial condition and results of operations[217] Compliance and Regulatory Risks - The company faces risks related to compliance with federal and state privacy laws, which could increase costs and limit service offerings[240] - The company may face litigation and sanctions if alleged non-compliance with laws related to personal health information occurs[242] - The company anticipates potential changes to privacy legislation that could impact operations and compliance costs[241] Acquisitions and Divestitures - The company completed the acquisition of a pediatric subspecialty practice for $2.1 million in 2020, expanding its national network of physician practices[464] - The company divested its anesthesiology services medical group in May 2020, impacting its operating results significantly[421] - The Company divested its radiology services medical group in December 2020, with results reported as discontinued operations for the years ended December 31, 2020, 2019, and 2018[422] - The divestiture of the radiology services medical group resulted in a cash payment of $885 million, with a loss from discontinued operations of $63.8 million in 2020[471][475] - The anesthesiology services medical group was sold for $50 million, with an estimated total loss on sale of $663.7 million recorded in 2020[476][477] Stock and Compensation - The Company grants stock-based awards under its Amended and Restated 2008 Incentive Compensation Plan, measuring the cost based on grant-date fair value[450] - The Company recognized $21.1 million in stock-based compensation expense for the year ended December 31, 2020, down from $33.4 million in 2019[518] - The total stock-based compensation cost related to non-vested restricted and deferred stock remaining to be recognized as compensation expense over a weighted-average period of 1.8 years was $11.6 million as of December 31, 2020[519] - The total stock-based compensation related to non-vested stock options remaining to be recognized as compensation expense over a weighted average period of approximately 2.6 years was $4.3 million[523] Taxation - The Company reported a total income tax provision of $16.7 million for the year ended December 31, 2020, compared to $16.6 million in 2019[501] - The effective tax rate for continuing operations increased to 234.0% for the year ended December 31, 2020, primarily due to a significant reduction in pre-tax income[502] - The Company's net deferred tax liabilities were $7.3 million as of December 31, 2020, compared to net deferred tax assets of $30.2 million at the end of 2019[505] - The liability for uncertain tax positions decreased to $6.2 million as of December 31, 2020, from $7.4 million in 2019[508] Market Conditions - The healthcare industry is highly competitive, with potential consolidation strengthening competitors, which may adversely affect the company's financial condition and operations[243] - The company's payor mix for 2020 included 68% from contracted managed care, 27% from government, and 4% from other third parties[458] - Net patient service revenue for 2020 was $1,481,331,000, a decline from $1,567,624,000 in 2019, contributing to total net revenue of $1,733,951,000, down from $1,779,759,000[458]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of just under $73 million for Q3 2020, an increase from $69 million in the same quarter last year [27] - Same unit volumes declined by 4.3%, showing a partial recovery from a 9% decline in Q2 2020 [16][17] - The company received over $14 million in CARES funding during the quarter, contributing to a 3.9% same unit pricing growth [21] Business Line Data and Key Metrics Changes - In hospital-based practices, NICU days were down 3.9%, while volumes in related services were down more significantly [18] - Office-based practices, including Maternal Fetal Medicine and pediatric cardiology, saw volumes decline by approximately 5%, a recovery from a 17% decline in Q2 [20] - Pediatric cardiology remained one of the most impacted service lines, while MFM volumes rebounded sharply [20] Market Data and Key Metrics Changes - The overall volume trend in October appeared similar to Q3, with patient volumes down by mid-single digits compared to last year [17] - Births declined by just under 1% on a two-year stacked basis, consistent with historical trends [20] Company Strategy and Development Direction - The company is focusing on its core areas, particularly women's and children's health, and aims to grow organically and through new partnerships [41][42] - A recent partnership with Memorial Healthcare System to lead neonatology services across three hospitals was highlighted as a significant achievement [42] - The management emphasized the importance of operational efficiency and data analytics to improve financial control and decision-making [39][49][118] Management's Comments on Operating Environment and Future Outlook - Management does not foresee a major drop in birth rates and is actively managing operations to maximize efficiency [34][72] - The company aims to achieve a steady state EBITDA run rate of $270 million in 2021, assuming no major ongoing effects from COVID-19 [35][92] - Management expressed confidence in the ability to grow without straying from core areas, citing strong relationships with hospital systems [41][66] Other Important Information - The company incurred $34 million in transformational and restructuring expenses for the quarter, with expectations to reduce these costs in Q4 2020 [26] - Adjusted EBITDA for Q3 2020 included an $8 million contribution from CARES funds, with uncertainty regarding additional funding in Q4 [28][30] Q&A Session Summary Question: Insights on maternal fetal patient volume trends - Management indicated that current trends suggest a return to baseline volumes, but predicting beyond that is challenging [60] Question: Capital deployment strategy post-radiology sale - Management highlighted growth opportunities in core areas and expressed a shareholder-friendly approach to capital allocation, including potential buybacks [61][63] Question: Growth rate expectations and strategies - Management refrained from providing specific growth numbers but expressed confidence in achieving solid organic and new growth [65][66] Question: Clarification on NICU volume growth and same-store revenue - Management clarified that while NICU volumes are growing, overall same-store revenue remains slightly down due to pandemic impacts [72][73] Question: Adjustments needed for enterprise value calculations - Management confirmed no significant adjustments are needed outside of the radiology proceeds and CARES Act funds received [90][91] Question: Payer mix and its impact - Management reported no significant changes in payer mix, maintaining a stable trend over the past several years [124][125] Question: Cost-cutting measures and future realizations - Management indicated that significant non-payroll expense reductions are expected to be realized in the upcoming quarters [128]

Divestitures and Strategic Focus - MEDNAX divested its anesthesiology services medical group for a cash payment of $50.0 million on May 6, 2020, with a potential contingent interest valued between $0 to $250 million [88]. - The company entered into an agreement to divest its radiology services medical group for $885.0 million cash on September 9, 2020, as part of its strategy to refocus on pediatrics and obstetrics [89]. Financial Performance and Revenue - Net revenue for the three months ended September 30, 2020, was $460.6 million, a 1.3% increase from $454.9 million in the same period of 2019 [113]. - Same-unit net revenue declined by $1.7 million, or 0.4%, due to a decrease in patient service volumes by $19.2 million, or 4.3%, partially offset by a $17.5 million, or 3.9%, increase from net reimbursement-related factors [113]. - Net revenue attributable to continuing operations was $1.32 billion for the nine months ended September 30, 2020, with a slight decrease of $3.8 million, or 0.3%, primarily due to COVID-19 impacts [126]. - Same-unit net revenue declined by $25.3 million, or 1.9%, with a decrease of $60.3 million, or 4.6%, related to patient service volumes [126]. - Loss from continuing operations was $14.1 million for the nine months ended September 30, 2020, compared to income of $32.3 million for the same period in 2019 [136]. Operational Adjustments and Cost Management - MEDNAX experienced a significant decline in elective surgeries and radiological studies due to COVID-19, but volumes began to normalize in May 2020 and substantially recovered in June 2020 [81]. - The company implemented salary reductions of up to 50% for executive officers and enacted furloughs for non-clinical employees to preserve financial flexibility during the pandemic [82]. - MEDNAX's transformation and restructuring initiatives aim to improve operational efficiency and reduce general and administrative expenses, although the scope was reduced due to COVID-19 [92]. - Practice salaries and benefits increased by $8.6 million, or 2.9%, to $309.9 million for the three months ended September 30, 2020 [114]. - General and administrative expenses rose to $66.3 million, an increase of $3.0 million, with expenses as a percentage of net revenue at 14.4% compared to 13.9% in the prior year [116]. COVID-19 Impact and Response - During the nine months ended September 30, 2020, MEDNAX's affiliated physician practices received approximately $20.0 million in relief payments under the CARES Act [86]. - The percentage of patient service revenue reimbursed under government-sponsored healthcare programs increased compared to the same period in 2019, indicating a shift towards lower reimbursement rates [91]. - The company anticipates that COVID-19 will continue to materially impact its financial results, but the ultimate impact remains uncertain [85]. - MEDNAX expanded its telehealth offerings through a national multi-specialty virtual clinic to support clinicians and patients during COVID-19 [84]. Future Outlook and Financial Projections - The company anticipates a higher rate of growth in clinician compensation expense, which could adversely affect financial performance [114]. - The company expects to continue operationalizing provisions of the Medicare Access and CHIP Reauthorization Act (MACRA) and assess any further changes to the law [101]. - The company anticipates that funds generated from operations, along with current cash and available funds under the Credit Agreement, will be sufficient to meet working capital requirements and contractual obligations for at least the next 12 months [154]. Debt and Liquidity - As of September 30, 2020, cash and cash equivalents attributable to continuing operations were $294.5 million, an increase from $107.9 million at December 31, 2019 [140]. - The company has $750.0 million in 5.25% senior unsecured notes due 2023, accruing interest of $39.4 million per annum, and $1.0 billion in 6.25% senior unsecured notes due 2027, accruing interest of $62.5 million per annum [150]. - The company maintains a minimum availability under the Credit Agreement of $300.0 million through the third quarter of 2021 [147]. - The Credit Agreement includes a $1.2 billion unsecured revolving credit facility, maturing on March 28, 2024, with interest rates based on the company's consolidated leverage ratio [148]. - The company recorded a total liability related to professional liability risks of $297.8 million as of September 30, 2020, with $55.5 million classified as a current liability [153].

MEDNAX, Inc. (NYSE:MD) Q2 2020 Earnings Conference Call July 30, 2020 10:00 AM ET Company Participants Charles Lynch - Investor Relations Mark Ordan - Chief Executive Officer Stephen Farber - Chief Financial Officer Conference Call Participants A.J. Rice - Cr??dit Suisse Ralph Giacobbe - Citi Kevin Fischbeck - Bank of America Nick Spiekhout - William Blair Pito Chickering - Deutsche Bank Brian Tanquilut ??? Jefferies Rishi Parekh - Barclays Whit Mayo - UBS Operator Ladies and gentlemen, thank you for standi ...

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 June 30, 2020 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 jurisdiction ...

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, 2020 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 oth ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ 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 jurisdiction of inco ...

1 Bank of America Merrill Lynch 2019 Leveraged Finance Conference Charles Lynch Vice President, Strategy and Investor Relations මු Forward looking disclosure Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but ar ...

MEDNAX, Inc. (NYSE:MD) Q3 2019 Earnings Conference Call November 1, 2019 9:00 AM ET Company Participants Charles Lynch - Vice President-Strategy and Investor Relations Roger Medel - Chief Executive Officer Stephen Farber - Chief Financial Officer Conference Call Participants AJ Rice - Credit Suisse Ralph Giacobbe - Citi Chad Vanacore - Stifel Pito Chickering - Deutsche Bank Jason Plagman - Jefferies Kevin Fischbeck - Bank of America Gary Taylor - JP Morgan Whit Mayo - UBS Operator Ladies and gentlemen, than ...

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, 2019 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 organizatio ...