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Biotech / Medical : Pediatrix Medical Group (PDX) -- Ignore unavailable to you. Want to Upgrade?

To: Toby Zidle who wrote (227)	3/25/1999 8:11:00 PM
From: Tom Hua	Respond to of 431

Dow Jones Newswires Pediatrix Up 75% On News '98 Results 'Fairly Stated' Dow Jones Newswires By Dinah Wisenberg Brin PHILADELPHIA (Dow Jones)--Investors drove shares of Pediatrix Medical Group Inc. (PDX) up as much as 86% Thursday on word the company's auditors found its 1998 financial results to be fairly stated, analysts said. Better-than-expected earnings also contributed to the climb, they said. Shares closed at 34, up 14 1/16, or 70.5%, on volume of 3.4 million, compared with average daily volume of 423,000. Earlier, the price reached 37 1/8. "The most important thing today was not that they met the numbers. The important thing was that KPMG, the new auditor, said their financial statements were completely appropriate, including accounts receivable," said analyst Linda M. Greub of NationsBanc Montgomery Securities LLP. "Today we learned there are no accounting problems," she said. Investors had been worried the Fort Lauderdale, Fla.-based national physician group might have to restate its previous financial results, she said. More importantly, according to Interstate/Johnson Lane analyst William J. Michalak, investors had been concerned that Pediatrix would have to write down its accounts receivable. "I think that was the real unknown fear," he said. The stock fell 48% on Feb. 12 after the company said it might have to restate previously reported earnings pending completion of a review by its new auditor, KPMG LLP, and that KPMG had requested additional analyses of its accounts receivable. It said then it had to delay reporting its fourth-quarter results indefinitely. At that time, Pediatrix also said it no longer could express confidence in analysts' estimates for 1998; it previously had said it would exceed the First Call Corp. fourth-quarter estimate of 50 cents a share. A flurry of shareholder lawsuits followed. On Thursday, Pediatrix reported fourth-quarter earnings of 51 cents a share, exceeding a revised First Call estimate of 49 cents. It also said the Securities and Exchange Commission told the company it won't have to restate results for past periods as long as it agrees to expense certain acquisition-related bonus costs in future. The stock reached a 52-week high of 65 9/16 on Feb. 1. On Feb. 19, it fell to a low of 18 1/16. Pediatrix's fundamentals remain strong, according to Greub, and Michalak said the company had an excellent quarter and year. However, Michalak added, it will take the market a while to get over its earlier loss of confidence. - Dinah Wisenberg Brin; 215-656-8285