MEDNAX Inc. (MD - Free Report) recently announced the acquisition of a private physician group practice – Associated Anesthesiologists – in Reno, Nevada. Although the details of the transaction have been kept under wraps, the acquisition was executed in cash and is expected to prove immediately accretive to earnings.
Associated Anesthesiologists is the largest anesthesia practice in northern Nevada, which provides anesthesia care across many subspecialty areas, including orthopedic, obstetric, pediatric and cardiac and critical care.
The practice employs 56 anesthesiologists (49 full-time and 7 part-time) who serve Renown Regional Medical Center, an 808 bed facility and the only children’s hospital and emergency room. Additionally, it provides services to Nevada Medical Center, Carson Valley Medical Center and various ambulatory surgical centers throughout the region.
This deal will expand MEDNAX’s presence across Nevada. Apart from pediatric and other multiple specialty services, the acquisition will allow the company to provide anesthesia services in the state.
Buyout Synergies
MEDNAX continues to benefit from its strategy of executing frequent acquisitions. In the second quarter of 2016, the company closed three buyouts. Management noted that almost 86% of the quarter’s revenue growth (14.1% year over year) came from the recent acquisitions.
After the second quarter, MEDNAX completed the acquisition of Revenue Cycle Management (RCM) provider Cardon Outreach for $400 million. The company also acquired a pediatric cardiology practice in Virginia
To date in 2016, the company has acquired nine physician practice including Associated Anesthesiologists.
Q2 Results
Revenues increased 14.1% year over year to $772 million, primarily driven by higher contributions from acquisitions. Same-unit revenues increased 2% in the reported quarter and EBITDA rose 7.4% to $168 million.
Adjusted earnings (including stock based compensation) were 98 cents, up 1% from the year-ago quarter.
For the third quarter, MEDNAX expects earnings in the range of $1.09 to $1.13 per share. EBITDA is forecasted to increase in the range of 7%--11%. Same-unit revenue growth is estimated in the band of 1%--3%.
Some notable medical companies are Natus Medical Inc. , Heska Corporation and Masimo Corporation (MASI - Free Report) .
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MEDNAX Inc. (MD - Free Report) recently announced the acquisition of a private physician group practice – Associated Anesthesiologists – in Reno, Nevada. Although the details of the transaction have been kept under wraps, the acquisition was executed in cash and is expected to prove immediately accretive to earnings.
Associated Anesthesiologists is the largest anesthesia practice in northern Nevada, which provides anesthesia care across many subspecialty areas, including orthopedic, obstetric, pediatric and cardiac and critical care.
The practice employs 56 anesthesiologists (49 full-time and 7 part-time) who serve Renown Regional Medical Center, an 808 bed facility and the only children’s hospital and emergency room. Additionally, it provides services to Nevada Medical Center, Carson Valley Medical Center and various ambulatory surgical centers throughout the region.
This deal will expand MEDNAX’s presence across Nevada. Apart from pediatric and other multiple specialty services, the acquisition will allow the company to provide anesthesia services in the state.
Buyout Synergies
MEDNAX continues to benefit from its strategy of executing frequent acquisitions. In the second quarter of 2016, the company closed three buyouts. Management noted that almost 86% of the quarter’s revenue growth (14.1% year over year) came from the recent acquisitions.
After the second quarter, MEDNAX completed the acquisition of Revenue Cycle Management (RCM) provider Cardon Outreach for $400 million. The company also acquired a pediatric cardiology practice in Virginia
To date in 2016, the company has acquired nine physician practice including Associated Anesthesiologists.
Q2 Results
Revenues increased 14.1% year over year to $772 million, primarily driven by higher contributions from acquisitions. Same-unit revenues increased 2% in the reported quarter and EBITDA rose 7.4% to $168 million.
Adjusted earnings (including stock based compensation) were 98 cents, up 1% from the year-ago quarter.
For the third quarter, MEDNAX expects earnings in the range of $1.09 to $1.13 per share. EBITDA is forecasted to increase in the range of 7%--11%. Same-unit revenue growth is estimated in the band of 1%--3%.
Some notable medical companies are Natus Medical Inc. , Heska Corporation and Masimo Corporation (MASI - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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