Pediatrix Medical Group Reports Third Quarter Results
For the 2024 third quarter, Pediatrix reported the following results:
-
Net revenue of
$511 million ; -
Net income of
$19 million ; and -
Adjusted EBITDA of
$60 million .
“Our third quarter operating results modestly exceeded our expectations, driven primarily by strength in same-unit revenue,” said
Operating Results– Three Months Ended
Pediatrix’s net revenue for the three months ended
Same-unit revenue from net reimbursement-related factors increased by 3.4 percent for the 2024 third 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 250 basis points compared to the prior year period.
Same-unit revenue attributable to patient volume increased by 1.8 percent for the 2024 third 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 nine months ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
Hospital-based patient services |
|
1.6% |
|
1.7% |
Office-based patient services |
|
3.8% |
|
2.5% |
|
|
|
|
|
Neonatology services (within hospital-based services): |
|
|
|
|
Neonatal intensive care unit (NICU) days |
|
0.4% |
|
0.8% |
For the 2024 third quarter, practice salaries and benefits expense was
For the 2024 third quarter, general and administrative expenses were
For 2024 third quarter, transformational and restructuring related expenses totaled
Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, transformational and restructuring related expenses, and loss on disposal of businesses, was
Depreciation and amortization expense was
Interest expense was
Pediatrix generated net income of
For the third quarter of 2024, Pediatrix reported Adjusted EPS of
Operating Results – Nine Months Ended
For the nine months ended
Financial Position and Cash Flow – Continuing Operations
Pediatrix had cash and cash equivalents of
For the third quarter of 2024, Pediatrix generated cash from continuing operations of
At
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, and 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
The Company continues to expect to complete these exits prior to the end of 2024.
2024 Outlook
Pediatrix anticipates that its 2024 Adjusted EBITDA, as defined above, will be in a range of
Non-GAAP Measures
A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and nine months ended
Earnings Conference Call
Pediatrix will host an investor conference call to discuss the quarterly results at
ABOUT
Pediatrix®
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
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Three Months Ended
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Nine Months Ended
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||||||||||||
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2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net revenue |
|
$ |
511,158 |
|
|
$ |
506,612 |
|
|
$ |
1,510,555 |
|
|
$ |
1,498,197 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Practice salaries and benefits |
|
|
364,888 |
|
|
|
368,404 |
|
|
|
1,091,834 |
|
|
|
1,084,671 |
|
Practice supplies and other operating expenses |
|
|
29,449 |
|
|
|
31,319 |
|
|
|
92,903 |
|
|
|
93,128 |
|
General and administrative expenses |
|
|
58,121 |
|
|
|
57,406 |
|
|
|
174,884 |
|
|
|
174,478 |
|
Depreciation and amortization |
|
|
6,254 |
|
|
|
9,211 |
|
|
|
25,353 |
|
|
|
27,109 |
|
Transformational and restructuring related expenses |
|
|
18,560 |
|
|
|
— |
|
|
|
40,619 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
154,243 |
|
|
|
— |
|
Fixed assets impairments |
|
|
— |
|
|
|
— |
|
|
|
20,112 |
|
|
|
— |
|
Intangible assets impairments |
|
|
— |
|
|
|
— |
|
|
|
7,679 |
|
|
|
— |
|
Loss on disposal of businesses |
|
|
59 |
|
|
|
— |
|
|
|
10,932 |
|
|
|
— |
|
Total operating expenses |
|
|
477,331 |
|
|
|
466,340 |
|
|
|
1,618,559 |
|
|
|
1,379,386 |
|
Income (loss) from operations |
|
|
33,827 |
|
|
|
40,272 |
|
|
|
(108,004 |
) |
|
|
118,811 |
|
Investment and other income |
|
|
1,089 |
|
|
|
273 |
|
|
|
2,941 |
|
|
|
2,096 |
|
Interest expense |
|
|
(10,126 |
) |
|
|
(10,374 |
) |
|
|
(31,033 |
) |
|
|
(31,994 |
) |
Equity in earnings of unconsolidated affiliate |
|
|
445 |
|
|
|
661 |
|
|
|
1,427 |
|
|
|
1,578 |
|
Total non-operating expenses |
|
|
(8,592 |
) |
|
|
(9,440 |
) |
|
|
(26,665 |
) |
|
|
(28,320 |
) |
Income (loss) before income taxes |
|
|
25,235 |
|
|
|
30,832 |
|
|
|
(134,669 |
) |
|
|
90,491 |
|
Income tax (provision) benefit |
|
|
(5,794 |
) |
|
|
(9,441 |
) |
|
|
5,120 |
|
|
|
(26,612 |
) |
Net income (loss) |
|
$ |
19,441 |
|
|
$ |
21,391 |
|
|
$ |
(129,549 |
) |
|
$ |
63,879 |
|
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gain on investments, net of tax of |
|
|
1,745 |
|
|
|
1 |
|
|
|
2,005 |
|
|
|
218 |
|
Total comprehensive income (loss) |
|
$ |
21,186 |
|
|
$ |
21,392 |
|
|
$ |
(127,544 |
) |
|
$ |
64,097 |
|
Per common and common equivalent share data (diluted): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss): |
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
(1.56 |
) |
|
$ |
0.77 |
|
Weighted average common shares |
|
|
84,523 |
|
|
|
82,950 |
|
|
|
83,223 |
|
|
|
82,492 |
|
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) |
|
$ |
19,441 |
|
|
$ |
21,391 |
|
|
$ |
(129,549 |
) |
|
$ |
63,879 |
|
Interest expense |
|
|
10,126 |
|
|
|
10,374 |
|
|
|
31,033 |
|
|
|
31,994 |
|
Income tax provision (benefit) |
|
|
5,794 |
|
|
|
9,441 |
|
|
|
(5,120 |
) |
|
|
26,612 |
|
Depreciation and amortization expense |
|
|
6,254 |
|
|
|
9,211 |
|
|
|
25,353 |
|
|
|
27,109 |
|
Transformational and restructuring related expenses |
|
|
18,560 |
|
|
|
— |
|
|
|
40,619 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
154,243 |
|
|
|
— |
|
Fixed assets impairments |
|
|
— |
|
|
|
— |
|
|
|
20,112 |
|
|
|
— |
|
Intangible assets impairments |
|
|
— |
|
|
|
— |
|
|
|
7,679 |
|
|
|
— |
|
Loss on disposal of businesses |
|
|
59 |
|
|
|
— |
|
|
|
10,932 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
60,234 |
|
|
$ |
50,417 |
|
|
$ |
155,302 |
|
|
$ |
149,594 |
|
|
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|
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|
|
Three Months Ended
|
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
Weighted average diluted shares outstanding |
|
84,523 |
|
|
82,950 |
|
||||||||||
Net income and diluted net income per share |
|
$ |
19,441 |
|
|
$ |
0.23 |
|
|
$ |
21,391 |
|
|
$ |
0.26 |
|
Adjustments (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization (net of tax of |
|
|
1,338 |
|
|
|
0.02 |
|
|
|
1,493 |
|
|
|
0.02 |
|
Stock-based compensation (net of tax of |
|
|
1,969 |
|
|
|
0.02 |
|
|
|
2,373 |
|
|
|
0.03 |
|
Transformational and restructuring expenses (net of tax of |
|
|
13,920 |
|
|
|
0.16 |
|
|
|
— |
|
|
|
— |
|
Tax effects of goodwill impairment |
|
|
(6,135 |
) |
|
|
(0.07 |
) |
|
|
— |
|
|
|
— |
|
Loss on disposal of businesses (net of tax of |
|
|
44 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net impact from discrete tax events |
|
|
6,452 |
|
|
|
0.08 |
|
|
|
1,114 |
|
|
|
0.01 |
|
Adjusted income and diluted EPS |
|
$ |
37,029 |
|
|
$ |
0.44 |
|
|
$ |
26,371 |
|
|
$ |
0.32 |
|
(1) |
A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended |
|
|
Nine Months Ended
|
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
Weighted average diluted shares outstanding |
|
83,223 |
|
82,492 |
||||||||||||
Net (loss) income and diluted net (loss) income per share |
|
$ |
(129,549 |
) |
|
$ |
(1.56 |
) |
|
$ |
63,879 |
|
|
$ |
0.77 |
|
Adjustments (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization (net of tax of |
|
|
5,526 |
|
|
|
0.07 |
|
|
|
4,522 |
|
|
|
0.06 |
|
Stock-based compensation (net of tax of |
|
|
5,616 |
|
|
|
0.07 |
|
|
|
6,974 |
|
|
|
0.09 |
|
Transformational and restructuring expenses (net of tax of |
|
|
30,464 |
|
|
|
0.37 |
|
|
|
— |
|
|
|
— |
|
|
|
|
132,618 |
|
|
|
1.59 |
|
|
|
— |
|
|
|
— |
|
Fixed assets impairments (net of tax of |
|
|
15,084 |
|
|
|
0.18 |
|
|
|
— |
|
|
|
— |
|
Intangible assets impairments (net of tax of |
|
|
5,759 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
— |
|
Loss on disposal of businesses (net of tax of |
|
|
8,199 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
— |
|
Net impact from discrete tax events |
|
|
8,456 |
|
|
|
0.10 |
|
|
|
1,984 |
|
|
|
0.02 |
|
Adjusted income and diluted EPS |
|
$ |
82,173 |
|
|
$ |
0.99 |
|
|
$ |
77,359 |
|
|
$ |
0.94 |
|
(1) |
A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the nine months ended |
|
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|
|
As of
|
|
As of
|
||||
Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
103,831 |
|
|
$ |
73,258 |
|
Investments |
|
|
116,621 |
|
|
|
104,485 |
|
Accounts receivable, net |
|
|
286,897 |
|
|
|
272,313 |
|
Other current assets |
|
|
20,866 |
|
|
|
33,398 |
|
Intangible assets, net |
|
|
13,183 |
|
|
|
21,240 |
|
Operating and finance lease right-of-use assets |
|
|
56,566 |
|
|
|
70,294 |
|
|
|
|
1,478,909 |
|
|
|
1,644,822 |
|
Total assets |
|
$ |
2,076,873 |
|
|
$ |
2,219,810 |
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
333,493 |
|
|
$ |
350,798 |
|
Total debt, including finance leases, net |
|
|
626,721 |
|
|
|
633,334 |
|
Operating lease liabilities |
|
|
56,932 |
|
|
|
68,314 |
|
Other liabilities |
|
|
327,235 |
|
|
|
318,303 |
|
Total liabilities |
|
|
1,344,381 |
|
|
|
1,370,749 |
|
Total shareholders' equity |
|
|
732,492 |
|
|
|
849,061 |
|
Total liabilities and shareholders' equity |
|
$ |
2,076,873 |
|
|
$ |
2,219,810 |
|
|
||||||||
|
|
Year Ended
|
||||||
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(110,315 |
) |
|
$ |
(103,015 |
) |
Interest expense |
|
|
40,559 |
|
|
|
40,559 |
|
Income tax provision |
|
|
1,990 |
|
|
|
4,690 |
|
Depreciation and amortization expense |
|
|
31,800 |
|
|
|
31,800 |
|
Transformational and restructuring related expenses |
|
|
48,000 |
|
|
|
48,000 |
|
|
|
|
182,034 |
|
|
|
182,034 |
|
Loss on disposal of businesses |
|
|
10,932 |
|
|
|
10,932 |
|
Adjusted EBITDA |
|
$ |
205,000 |
|
|
$ |
215,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241101131596/en/
Senior Vice President, Finance and Strategy
954-384-0175, x 5692
charles.lynch@pediatrix.com
Source: