Pediatrix Revises Earnings Guidance Reflecting Lower NICU Patient Volume

Main Category: Pediatrics / Children's Health
Article Date: 29 May 2008 - 13:00 PST

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Pediatrix Medical Group, Inc., (NYSE:PDX) announced that it is revising its earnings guidance for the three months ended June 30, 2008, and for the full year based on lower neonatal intensive care unit patient volume.

During the Company's 2008 first quarter earnings call, Pediatrix mentioned that same-unit NICU volume for April 2008 was below 2007 levels. Through the first six weeks of the 2008 second quarter Pediatrix's same-unit NICU volume declined by approximately 2 percent when compared to the same period of 2007.

Pediatrix now expects to earn 77 cents to 80 cents for the 2008 second quarter if NICU patient volume remains at current levels for the rest of the period.

In addition, at this time Pediatrix does not expect to meet its previously issued earnings guidance for the 12 months ended December 31, 2008, as a result of lower NICU patient volume during 2008 to date. Pediatrix's earnings guidance is based on assumptions for same-unit growth from patient volume and reimbursement, as well as contributions from acquisitions. Pediatrix's ability to achieve its previously issued earnings guidance for the 2008 third and fourth quarters will be based on NICU patient volume growth reverting to historical levels of 3 to 5 percent. Pediatrix expects that it will update its guidance for the second half of 2008 when it issues its 2008 second quarter results and that it will discuss guidance during the related quarterly earnings conference call.

Separately, Pediatrix's Board of Directors has authorized the Company to repurchase up to $100 million of its common stock through open market transactions.

The share repurchase program is effective immediately and permits the Company to make open market purchases from time-to-time based on price, general market and economic conditions as well as trading restrictions.

About Pediatrix

Pediatrix Medical Group, Inc. is the nation's leading provider of neonatal, maternal-fetal and pediatric physician subspecialty services and recently expanded to include anesthesiology services. Pediatrix physicians and advanced practitioners are reshaping the delivery of care within the maternal-fetal, neonatal intensive care and pediatric cardiology subspecialties, using evidence-based tools, continuous quality initiatives and clinical research to enhance patient outcomes and provide high-quality, cost-effective care. Founded in 1979, its neonatal physicians provide services at more than 250 neonatal intensive care units, and in many markets they collaborate with affiliated maternal-fetal medicine, pediatric cardiology physician subspecialists and pediatric intensivists to provide a clinical care continuum. Combined, Pediatrix and its affiliated professional corporations employ more than 1,100 physicians in 32 states and Puerto Rico. Pediatrix is also the nation's largest provider of newborn hearing screens. Additional information is available at http://www.pediatrix.com.

Certain statements and information in this press release may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as "believe", "hope", "may", "anticipate", "should", "intend", "plan", "will", "expect", "estimate", "project", "positioned", "strategy" and similar expressions, and are based on assumptions and assessments made by Pediatrix's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and Pediatrix undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in Pediatrix's most recent Annual Report on Form 10-K, including the section entitled "Risk Factors".

Pediatrix Medical Group, Inc.