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Pediatrix Medical Group Reports Second Quarter Results

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Pediatrix Medical Group (NYSE: MD) reported a loss of $1.84 per share for Q2 2024, with Adjusted EPS of $0.34. Key results include:

- Net revenue: $504 million
- Net loss: $153 million
- Adjusted EBITDA: $58 million

The company saw 2.8% same-unit revenue growth, improved payor mix, and stable patient volumes. Pediatrix is implementing portfolio management plans, exiting most office-based practices except maternal-fetal medicine. The company expects these changes to have a $30 million favorable impact on Adjusted EBITDA. Pediatrix maintains its 2024 Adjusted EBITDA outlook of $200-$220 million.

Pediatrix Medical Group (NYSE: MD) ha riportato una perdita di $1.84 per azione per il Q2 2024, con un EPS aggiustato di $0.34. I risultati chiave includono:

- Ricavi netti: $504 milioni
- Perdita netta: $153 milioni
- EBITDA aggiustato: $58 milioni

L'azienda ha registrato una crescita dei ricavi dello 2.8% nello stesso unità, un mix di pagatori migliorato e volumi di pazienti stabili. Pediatrix sta attuando piani di gestione del portafoglio, uscendo dalla maggior parte delle pratiche ambulatoriali ad eccezione della medicina materno-fetale. L'azienda prevede che queste modifiche avranno un impatto favorevole di $30 milioni sull'EBITDA aggiustato. Pediatrix mantiene le sue previsioni per l'EBITDA aggiustato del 2024 tra $200-$220 milioni.

Pediatrix Medical Group (NYSE: MD) reportó una pérdida de $1.84 por acción en el Q2 2024, con un EPS ajustado de $0.34. Los resultados clave incluyen:

- Ingresos netos: $504 millones
- Pérdida neta: $153 millones
- EBITDA ajustado: $58 millones

La compañía vio un crecimiento del 2.8% en los ingresos de unidades comparables, una mejor combinación de pagadores y volúmenes de pacientes estables. Pediatrix está implementando planes de gestión de cartera, saliendo de la mayoría de las prácticas ambulatorias, excepto la medicina materno-fetal. La empresa espera que estos cambios tengan un impacto favorable de $30 millones en el EBITDA ajustado. Pediatrix mantiene su pronóstico de EBITDA ajustado para 2024 de $200-$220 millones.

Pediatrix Medical Group (NYSE: MD)는 2024년 2분기에 주당 $1.84의 손실을 보고하였고, 조정 EPS는 $0.34입니다. 주요 결과는 다음과 같습니다:

- 순수익: $504백만
- 순손실: $153백만
- 조정된 EBITDA: $58백만

회사는 동일 단위 수익이 2.8% 증가했으며, 지불자 믹스가 개선되고 환자 수가 안정적이었습니다. Pediatrix는 대다수의 외래 진료에서 물러나고 모자 의학을 제외한 포트폴리오 관리 계획을 시행하고 있습니다. 회사는 이러한 변화가 $30백만의 긍정적인 영향을 조정된 EBITDA에 미칠 것으로 예상합니다. Pediatrix는 2024년 조정 EBITDA 전망을 $200-$220백만으로 유지하고 있습니다.

Pediatrix Medical Group (NYSE: MD) a rapporté une perte de 1,84 $ par action pour le 2e trimestre 2024, avec un EPS ajusté de 0,34 $. Les résultats clés incluent :

- Chiffre d'affaires net : 504 millions $
- Perte nette : 153 millions $
- EBITDA ajusté : 58 millions $

L'entreprise a connu une croissance des revenus de 2,8 % en unités comparables, un meilleur mix de payeurs et des volumes de patients stables. Pediatrix met en œuvre des plans de gestion de portefeuille, se retirant de la plupart des pratiques ambulatoires sauf la médecine materno-fœtale. L'entreprise s'attend à ce que ces changements aient un impact favorable de 30 millions $ sur l'EBITDA ajusté. Pediatrix maintient sa prévision d'EBITDA ajusté pour 2024 entre 200 et 220 millions $.

Pediatrix Medical Group (NYSE: MD) berichtete über einen Verlust von $1.84 pro Aktie für das 2. Quartal 2024, mit bereinigtem EPS von $0.34. Wichtige Ergebnisse umfassen:

- Nettoumsatz: $504 Millionen
- Nettoverlust: $153 Millionen
- Bereinigtes EBITDA: $58 Millionen

Das Unternehmen verzeichnete ein Umsatzwachstum von 2.8% bei gleichen Einheiten, eine verbesserte Zahlungsmix und stabile Patientenanfragen. Pediatrix implementiert Portfoliomanagementpläne und zieht sich aus den meisten ambulanten Praxen mit Ausnahme der Mutter-Kind-Medizin zurück. Das Unternehmen erwartet, dass diese Änderungen einen positive Wirkung von $30 Millionen auf das bereinigte EBITDA haben werden. Pediatrix hält an seiner Prognose für das bereinigte EBITDA 2024 von $200-$220 Millionen fest.

Positive
  • 2.8% increase in same-unit revenue
  • Improved payor mix with 230 basis points increase in commercial and non-government payors
  • Stable patient volumes with 0.4% increase in same-unit revenue attributable to patient volume
  • Expected $30 million favorable impact on Adjusted EBITDA from portfolio management plans
  • Reduction in general and administrative expenses due to net staffing reductions
Negative
  • Reported loss of $1.84 per share for Q2 2024
  • Net loss of $153 million for the quarter
  • Decline in Adjusted EBITDA from $59.1 million in Q2 2023 to $57.9 million in Q2 2024
  • Non-cash impairment loss of $192.9 million related to goodwill and long-lived assets
  • Decrease in cash and cash equivalents from $73.3 million on December 31, 2023, to $19.4 million on June 30, 2024

Insights

Pediatrix's Q2 2024 results present a mixed picture. The company reported a loss of $1.84 per share, but Adjusted EPS of $0.34. Revenue increased slightly to $504 million, with same-unit revenue growth of 2.8%. The net loss of $153 million is concerning, largely due to a $192.9 million non-cash impairment loss.

Positively, the company saw improved payor mix and operating efficiencies. The 2.4% increase in same-unit revenue from reimbursement factors is encouraging. However, patient volume growth was minimal at 0.4%.

The ongoing portfolio management plan, including exiting office-based practices, could improve profitability. The expected $30 million annual boost to Adjusted EBITDA from this plan could be significant for future performance.

Pediatrix's strategic shift towards hospital-based care and maternal-fetal medicine is noteworthy. This focus aligns with industry trends favoring specialized, high-acuity services. The decision to exit almost all office-based practices (except maternal-fetal medicine) and the primary/urgent care service line is a significant transformation.

The stable NICU days (-0.8% for Q2, +0.9% YTD) suggest resilience in their core neonatology services. The improved payor mix, with a 230 basis point increase in commercial and non-government payors, is a positive indicator for future revenue stability.

The transition in leadership, particularly the CFO change and the creation of a Chief Administrative Officer role, signals a commitment to navigating this strategic shift effectively. However, investors should monitor how these changes impact operational execution in the short term.

Pediatrix's Q2 results and strategic shifts reflect broader healthcare market trends. The focus on hospital-based services and maternal-fetal medicine aligns with the industry's move towards specialized, high-value care. This could position Pediatrix favorably in a competitive landscape.

The improved payor mix is particularly significant, indicating better negotiating power or a shift in patient demographics. This could lead to more stable, potentially higher revenues per patient.

The company's portfolio management plan, while disruptive in the short term, appears to be a proactive response to market pressures. Exiting lower-margin services to focus on core competencies is a strategy we're seeing across the healthcare sector. The projected $30 million boost to Adjusted EBITDA suggests this move could significantly improve Pediatrix's financial health and market position in the long run.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported a loss of $1.84 per share for the three months ended June 30, 2024. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.34.

For the 2024 second quarter, Pediatrix reported the following results:

  • Net revenue of $504 million;
  • Net loss of $153 million; and
  • Adjusted EBITDA of $58 million.

“Our second quarter operating results exceeded our expectations and reflected stable patient volumes, improved payor mix, and operating efficiencies,” said James D. Swift, M.D., Chief Executive Officer of Pediatrix Medical Group. “Our previously discussed portfolio management plans are well underway and we expect to complete these plans by the end of 2024. We believe that these operating plans, our strengthening financial position, and our focus on hospital-based care and maternal-fetal medicine will benefit all of our stakeholders.”

Operating Results–Three Months Ended June 30, 2024

Pediatrix’s net revenue for the three months ended June 30, 2024 was $504.3 million, compared to $500.6 million for the prior-year period. This increase reflected growth in same-unit revenue of 2.8 percent, partially offset by the impact of non-same unit activity, primarily practice dispositions.

Same-unit revenue from net reimbursement-related factors increased by 2.4 percent for the 2024 second quarter as compared to the prior-year period. This increase primarily reflects improved payor mix and modest improvements in hospital contract administrative fees. The percentage of services reimbursed by commercial and other non-government payors increased by approximately 230 basis points compared to the prior year period.

Same-unit revenue attributable to patient volume increased by 0.4 percent for the 2024 second quarter as compared to the prior-year period. Shown below are year-over-year percentage changes in certain same-unit volume statistics for the three and six months ended June 30, 2024. (Note: figures in the below table reflect contributions only to net patient service revenue and exclude other contributions to total same-unit revenue, including contract and administrative fees.)

 

 

Three Months Ended
June 30, 2024

 

Six Months Ended
June 30, 2024

 

 

 

 

 

Hospital-based patient services

 

1.0%

 

1.7%

Office-based patient services

 

(1.2)%

 

0.7%

 

 

 

 

 

Neonatology services (within hospital-based services):

 

 

 

 

 

Neonatal intensive care unit (NICU) days

 

(0.8)%

 

0.9%

For the 2024 second quarter, practice salaries and benefits expense was $357.8 million, compared to $354.0 million for the prior-year period. This comparison primarily reflects increases in same-unit clinical compensation costs, partially offset by the impact of non-same unit activity, primarily practice dispositions.

For the 2024 second quarter, general and administrative expenses were $56.6 million, as compared to $58.0 million for the prior-year period. This decline primarily reflects net staffing reductions that more than offset increased internal staffing as part of the Company’s ongoing development of its hybrid revenue cycle management structure.

For 2024 second quarter, transformational and restructuring related expenses totaled $13.6 million. These expenses related primarily to practice dispositions and revenue cycle management transition activities.

Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, transformational and restructuring related expenses, and loss on disposal of businesses and impairment losses, was $57.9 million for the 2024 second quarter, compared to $59.1 million for the prior-year period.

Depreciation and amortization expense was $8.8 million for the second quarter of 2024, compared to $8.9 million for the prior-year period.

Interest expense was $10.3 million for the second quarter of 2024, compared to $11.2 million for the second quarter of 2023, reflecting lower outstanding borrowings.

During the second quarter of 2024, the Company recorded an aggregate non-cash impairment loss of $192.9 million related to goodwill and long-lived assets related to the Company’s portfolio management plan.

Pediatrix generated a net loss of $153.0 million, or $1.84 per diluted share, for the 2024 second quarter, based on a weighted average 83.3 million shares outstanding. This compares with net income of $28.3 million, or $0.34 per diluted share, for the 2023 second quarter, based on a weighted average 82.7 million shares outstanding.

For the second quarter of 2024, Pediatrix reported Adjusted EPS of $0.34, compared to $0.39 for the second quarter of 2023. For these periods, Adjusted EPS is defined as diluted income per common and common equivalent share excluding non-cash amortization expense, stock-based compensation expense, transformational and restructuring related expenses, loss on disposal of businesses and impairment losses, and discrete tax events.

Operating Results – Six Months Ended June 30, 2024

For the six months ended June 30, 2024, Pediatrix generated revenue of $999.4 million, compared to $991.6 million for the prior-year period. Pediatrix generated a net loss of $149.0 million, or $1.79 per share, for the six months ended June 30, 2024, based on a weighted average 83.1 million shares outstanding, which compares to income of $42.5 million, or $0.52 per share, based on a weighted average 82.4 million shares outstanding for the first six months of 2023. Adjusted EBITDA for the six months ended June 30, 2024 was $95.1 million, compared to $99.2 million for the prior year. For the six months ended June 30, 2024, Pediatrix reported Adjusted EPS of $0.54, compared to $0.62 in the same period of 2023.

Financial Position and Cash Flow – Continuing Operations

Pediatrix had cash and cash equivalents of $19.4 million at June 30, 2024, compared to $73.3 million on December 31, 2023, and net accounts receivable were $274.2 million.

For the second quarter of 2024, Pediatrix generated cash from continuing operations of $109.3 million, compared to $92.6 million during the second quarter of 2023. During the second quarter of 2024, the Company used $7.0 million to fund capital expenditures.

At June 30, 2024, Pediatrix had total debt outstanding of $622 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $222 million in borrowings under its Term A Loan. At June 30, 2024, the Company had no outstanding borrowings under its $450 million revolving line of credit.

Portfolio Management Update

As previously disclosed, during the second quarter of 2024, Pediatrix formalized its practice portfolio management plans, resulting in a decision to exit almost all of its affiliated office-based practices, other than maternal-fetal medicine. The Company expects to complete these exits prior to the end of 2024. In addition, Pediatrix previously disclosed its intent to exit its primary and urgent care service line. During and subsequent to the end of the 2024 second quarter, the Company completed the exit of its primary and urgent care service line through two separate transactions.

In aggregate, the office-based practices that the Company intends to exit and the primary and urgent care clinics that have been divested contributed net revenue of approximately $200 million in 2023. As previously disclosed, Pediatrix expects that the annualized favorable impact to Adjusted EBITDA resulting from its portfolio management plans to be approximately $30 million.

Leadership Transitions

Chief Financial Officer Transition

Pediatrix announced today that its board of directors has appointed Ms. Kasandra Rossi, who currently serves as the Company’s Senior Vice President, Financial Reporting and Assistant Treasurer, to succeed Mr. C. Marc Richards as Executive Vice President, Chief Financial Officer and Treasurer of the Company. The transition will be effective on or about October 1, 2024, following the anticipated completion of the next phase of the Company’s previously announced transition of its outsourced enterprise revenue cycle management services and the advancement of the Company’s planned portfolio management activities.

Chief Administrative Officer Appointment

The Company also announced today that its board of directors has appointed Ms. Mary Ann E. Moore to serve as the Company’s Chief Administrative Officer, in addition to her existing roles as the Company’s Executive Vice President, General Counsel and Secretary, effective as of August 1, 2024.

In addition, Pediatrix announced that Curtis B. Pickert, M.D. has transitioned from his role as the Company’s Executive Vice President, Chief Operating Officer and will now serve as Pediatrix’s Executive Vice President, Chief Physician Executive, effective as of August 1, 2024.

2024 Outlook

As previously disclosed, Pediatrix anticipates that its 2024 Adjusted EBITDA, as defined below, will be in a range of $200 million to $220 million.

Non-GAAP Measures

A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and six months ended June 30, 2024 and 2023 is provided in the financial tables of this press release.

Earnings Conference Call

Pediatrix will host an investor conference call to discuss the quarterly results at 9 a.m., ET today. The conference call Webcast may be accessed from the Company’s Website, www.pediatrix.com. A telephone replay of the conference call will be available from 12:45 p.m. ET today through midnight ET August 20, 2024 by dialing 1-866-207-1041, access code 7909485. The replay will also be available at www.pediatrix.com.

ABOUT PEDIATRIX MEDICAL GROUP

Pediatrix® Medical Group, Inc. (NYSE:MD) is a leading provider of physician services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices. Specialties include obstetrics, maternal-fetal medicine and neonatology complemented by multiple pediatric subspecialties. The group’s high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through more than 5,000 affiliated physicians and other clinicians. To learn more about Pediatrix, visit www.pediatrix.com or follow us on Facebook, Instagram, LinkedIn, Twitter and the Pediatrix blog. Investment information can be found at www.pediatrix.com/investors.

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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not limited to, statements relating to the Company’s 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. 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 the Company’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 the Company 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 the Company’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well the Company’s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the impact of the Company’s practice portfolio management plans and whether the Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the impact of the Company’s termination of its then third-party revenue cycle management provider and transition to a hybrid revenue cycle management model with one or more new third-party service providers, including any transition costs associated therewith; the impact of surprise billing legislation; the effects of economic conditions on the Company’s business; the effects of the Affordable Care Act and potential healthcare reform; the Company’s relationships with government-sponsored or funded healthcare programs, including Medicare and Medicaid, and with managed care organizations and commercial health insurance payors; the Company’s ability to comply with the terms of its debt financing arrangements; the impact of the COVID-19 pandemic on the Company and its financial condition and results of operations; the impact of the divestiture of the Company’s anesthesiology and radiology medical groups; the impact of management transitions; the timing and contribution of future acquisitions or organic growth initiatives; the effects of share repurchases; and the effects of the Company’s transformation initiatives, including its reorientation on, and growth strategy for, its pediatrics and obstetrics business.

Pediatrix Medical Group, Inc.

Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net revenue

 

$

504,296

 

 

$

500,577

 

 

$

999,397

 

 

$

991,585

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Practice salaries and benefits

 

 

357,808

 

 

 

354,032

 

 

 

726,946

 

 

 

716,267

 

Practice supplies and other operating expenses

 

 

32,369

 

 

 

31,089

 

 

 

63,454

 

 

 

61,809

 

General and administrative expenses

 

 

56,565

 

 

 

58,013

 

 

 

116,763

 

 

 

117,072

 

Depreciation and amortization

 

 

8,791

 

 

 

8,945

 

 

 

19,099

 

 

 

17,898

 

Transformational and restructuring related expenses

 

 

13,579

 

 

 

 

 

 

22,059

 

 

 

 

Goodwill impairment

 

 

154,243

 

 

 

 

 

 

154,243

 

 

 

 

Fixed assets impairments

 

 

20,112

 

 

 

 

 

 

20,112

 

 

 

 

Intangible assets impairments

 

 

7,679

 

 

 

 

 

 

7,679

 

 

 

 

Loss on disposal of businesses

 

 

10,873

 

 

 

 

 

 

10,873

 

 

 

 

Total operating expenses

 

 

662,019

 

 

 

452,079

 

 

 

1,141,228

 

 

 

913,046

 

(Loss) income from operations

 

 

(157,723

)

 

 

48,498

 

 

 

(141,831

)

 

 

78,539

 

Investment and other (loss) income

 

 

(161

)

 

 

1,189

 

 

 

1,852

 

 

 

1,823

 

Interest expense

 

 

(10,308

)

 

 

(11,230

)

 

 

(20,907

)

 

 

(21,620

)

Equity in earnings of unconsolidated affiliate

 

 

464

 

 

 

490

 

 

 

982

 

 

 

917

 

Total non-operating expenses

 

 

(10,005

)

 

 

(9,551

)

 

 

(18,073

)

 

 

(18,880

)

(Loss) income before income taxes

 

 

(167,728

)

 

 

38,947

 

 

 

(159,904

)

 

 

59,659

 

Income tax benefit (provision)

 

 

14,703

 

 

 

(10,665

)

 

 

10,914

 

 

 

(17,171

)

Net (loss) income

 

$

(153,025

)

 

$

28,282

 

 

$

(148,990

)

 

$

42,488

 

Other comprehensive (loss) income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gain (loss) on investments, net of tax of $66, $126, $86 and $353

 

 

200

 

 

 

(387

)

 

 

260

 

 

 

217

 

Total comprehensive (loss) income

 

$

(152,825

)

 

$

27,895

 

 

$

(148,730

)

 

$

42,705

 

Per common and common equivalent share data (diluted):

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income:

 

$

(1.84

)

 

$

0.34

 

 

$

(1.79

)

 

$

0.52

 

Weighted average common shares

 

 

83,332

 

 

 

82,664

 

 

 

83,074

 

 

 

82,377

 

Pediatrix Medical Group, Inc.

Reconciliation of Net (Loss) Income to Adjusted EBITDA

(in thousands)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net (loss) income

 

$

(153,025

)

 

$

28,282

 

 

$

(148,990

)

 

$

42,488

 

Interest expense

 

 

10,308

 

 

 

11,230

 

 

 

20,907

 

 

 

21,620

 

Income tax (benefit) provision

 

 

(14,703

)

 

 

10,665

 

 

 

(10,914

)

 

 

17,171

 

Depreciation and amortization expense

 

 

8,791

 

 

 

8,945

 

 

 

19,099

 

 

 

17,898

 

Transformational and restructuring related expenses

 

 

13,579

 

 

 

 

 

 

22,059

 

 

 

 

Goodwill impairment

 

 

154,243

 

 

 

 

 

 

154,243

 

 

 

 

Fixed assets impairments

 

 

20,112

 

 

 

 

 

 

20,112

 

 

 

 

Intangible assets impairments

 

 

7,679

 

 

 

 

 

 

7,679

 

 

 

 

Loss on disposal of businesses

 

 

10,873

 

 

 

 

 

 

10,873

 

 

 

 

Adjusted EBITDA

 

$

57,857

 

 

$

59,122

 

 

$

95,068

 

 

$

99,177

 

Pediatrix Medical Group, Inc.

Reconciliation of Diluted Net Income per Share

to Adjusted (Loss) Income per Diluted Share (“Adjusted EPS”)

(in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

 

2024

 

 

2023

 

Weighted average diluted shares outstanding

 

83,332

 

 

82,664

 

Net (loss) income and diluted net (loss) income per share

 

$

(153,025

)

 

$

(1.84

)

 

$

28,282

 

 

$

0.34

 

Adjustments (1):

 

 

 

 

 

 

 

 

 

 

 

 

Amortization (net of tax of $533 and $512)

 

 

1,599

 

 

 

0.02

 

 

 

1,533

 

 

 

0.02

 

Stock-based compensation (net of tax of $500 and $782)

 

 

1,501

 

 

 

0.02

 

 

 

2,344

 

 

 

0.03

 

Transformational and restructuring expenses (net of tax of $3,395)

 

 

10,184

 

 

 

0.12

 

 

 

 

 

 

 

Goodwill impairment (net of tax of $15,490)

 

 

138,753

 

 

 

1.67

 

 

 

 

 

 

 

Fixed assets impairments (net of tax of $5,028)

 

 

15,084

 

 

 

0.18

 

 

 

 

 

 

 

Intangible assets impairments (net of tax of $1,920)

 

 

5,759

 

 

 

0.07

 

 

 

 

 

 

 

Loss on disposal of businesses (net of tax of $2,718)

 

 

8,155

 

 

 

0.10

 

 

 

 

 

 

 

Net impact from discrete tax events

 

 

328

 

 

 

 

 

 

150

 

 

 

 

Adjusted income and diluted EPS

 

$

28,338

 

 

$

0.34

 

 

$

32,309

 

 

$

0.39

 

 

(1) A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended June 30, 2024 and 2023, other than for goodwill impairment for the relevant period. Tax effects for the goodwill impairment approximate 10% due to a portion of the expense being non-deductible.

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

Weighted average diluted shares outstanding

 

83,074

 

 

82,377

 

Net (loss) income and diluted net (loss) income per share

 

$

(148,990

)

 

$

(1.79

)

 

$

42,488

 

 

$

0.52

 

Adjustments (1):

 

 

 

 

 

 

 

 

 

 

 

 

Amortization (net of tax of $1,396 and $1,010)

 

 

4,188

 

 

 

0.05

 

 

 

3,029

 

 

 

0.04

 

Stock-based compensation (net of tax of $1,215 and $1,534)

 

 

3,647

 

 

 

0.04

 

 

 

4,601

 

 

 

0.06

 

Transformational and restructuring expenses (net of tax of $5,515)

 

 

16,544

 

 

 

0.20

 

 

 

 

 

 

 

Goodwill impairment (net of tax of $15,490)

 

 

138,753

 

 

 

1.67

 

 

 

 

 

 

 

Fixed assets impairments (net of tax of $5,028)

 

 

15,084

 

 

 

0.18

 

 

 

 

 

 

 

Intangible assets impairments (net of tax of $1,920)

 

 

5,759

 

 

 

0.07

 

 

 

 

 

 

 

Loss on disposal of businesses (net of tax of $2,718)

 

 

8,155

 

 

 

0.10

 

 

 

 

 

 

 

Net impact from discrete tax events

 

 

2,004

 

 

 

0.02

 

 

 

870

 

 

 

 

Adjusted income and diluted EPS

 

$

45,144

 

 

$

0.54

 

 

$

50,988

 

 

$

0.62

 

 

(1) A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the six months ended June 30, 2024 and 2023, other than for goodwill impairment for the relevant period. Tax effects for the goodwill impairment approximate 10% due to a portion of the expense being non-deductible.

Pediatrix Medical Group, Inc.

Balance Sheet Highlights

(in thousands)

(Unaudited)

 

 

 

As of
June 30, 2024

 

 

As of
December 31, 2023

 

Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,402

 

 

$

73,258

 

Investments

 

 

113,795

 

 

 

104,485

 

Accounts receivable, net

 

 

274,164

 

 

 

272,313

 

Other current assets

 

 

21,851

 

 

 

33,398

 

Intangible assets, net

 

 

10,193

 

 

 

21,240

 

Operating and finance lease right-of-use assets

 

 

65,392

 

 

 

70,294

 

Goodwill, other assets, property and equipment

 

 

1,490,554

 

 

 

1,644,822

 

Total assets

 

$

1,995,351

 

 

$

2,219,810

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

267,333

 

 

$

350,798

 

Total debt, including finance leases, net

 

 

630,370

 

 

 

633,334

 

Operating lease liabilities

 

 

67,940

 

 

 

68,314

 

Other liabilities

 

 

323,247

 

 

 

318,303

 

Total liabilities

 

 

1,288,890

 

 

 

1,370,749

 

Total shareholders' equity

 

 

706,461

 

 

 

849,061

 

Total liabilities and shareholders' equity

 

$

1,995,351

 

 

$

2,219,810

 

Pediatrix Medical Group, Inc.

Reconciliation of Net Loss to Forward-Looking Adjusted EBITDA

(in thousands)

(Unaudited)

 

 

 

Year Ended
December 31, 2024

 

 

 

 

 

 

 

 

Net loss

 

$

(112,507

)

 

$

(97,907

)

Interest expense

 

 

40,020

 

 

 

40,020

 

Income tax provision

 

 

2,580

 

 

 

7,980

 

Depreciation and amortization expense

 

 

37,000

 

 

 

37,000

 

Transformational and restructuring related expenses

 

 

40,000

 

 

 

40,000

 

Goodwill and long-lived asset impairments

 

 

182,034

 

 

 

182,034

 

Loss on disposal of businesses

 

 

10,873

 

 

 

10,873

 

Adjusted EBITDA

 

$

200,000

 

 

$

220,000

 

 

Charles Lynch

Senior Vice President, Finance and Strategy

954-384-0175, x 5692

charles.lynch@pediatrix.com

Source: Pediatrix Medical Group, Inc.

FAQ

What was Pediatrix Medical Group's (MD) revenue for Q2 2024?

Pediatrix Medical Group reported net revenue of $504.3 million for Q2 2024, compared to $500.6 million for the prior-year period.

How did Pediatrix's (MD) same-unit revenue perform in Q2 2024?

Pediatrix's same-unit revenue grew by 2.8% in Q2 2024, with a 2.4% increase from net reimbursement-related factors and a 0.4% increase attributable to patient volume.

What is Pediatrix Medical Group's (MD) Adjusted EBITDA outlook for 2024?

Pediatrix Medical Group maintains its 2024 Adjusted EBITDA outlook in the range of $200 million to $220 million.

How much debt did Pediatrix Medical Group (MD) have as of June 30, 2024?

As of June 30, 2024, Pediatrix Medical Group had total debt outstanding of $622 million, consisting of $400 million in Senior Notes and $222 million in Term A Loan borrowings.

Pediatrix Medical Group, Inc.

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