Earnings Summary Pediatrix Medical Group Inc Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Earnings Summary: Pediatrix Medical Group, Inc. Reports Q2 2024 Financial Results
Pediatrix Medical Group, Inc. (NYSE:MD), a leading provider of physician services, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Q1 2024 | QoQ Change |
|---|---|---|---|---|---|---|
| Revenue | $504M | $500.6M | +0.7% | $505.49M | $495.4M | +1.73% |
| Net Income (Loss) | -$153M | $28.3M | -640.6% | N/A | -$12M | -1175% |
| EPS (GAAP) | -$1.84 | $0.34 | -640.6% | N/A | -$0.14 | -1214.29% |
| Adjusted EPS (Non-GAAP) | $0.34 | $0.39 | -12.8% | $0.31 | $0.20 | +70% |
| Adjusted EBITDA | $58M | $59.1M | -1.86% | N/A | $37.2M | +55.91% |
Pediatrix's Q2 2024 revenue of $504 million slightly missed the consensus estimate of $505.49 million but showed a modest year-over-year increase. The company reported a significant net loss of $153 million, or $1.84 per share, compared to net income of $28.3 million in the same quarter last year. However, on a non-GAAP basis, the Adjusted EPS was $0.34, exceeding consensus estimates of $0.31.
Revenue Performance by Segment
| Revenue Segment | Q2 2024 | YoY Change |
|---|---|---|
| Same-Unit Revenue | +2.8% | N/A |
| Net Reimbursement-Related Factors | +2.4% | N/A |
| Patient Volume | +0.4% | N/A |
Improved payor mix and increased reimbursement-related factors helped drive same-unit revenue growth by 2.8%, partially offsetting the impacts of practice dispositions.
Operational Data
| Operational Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Practice Salaries & Benefits Expense | $357.8M | $354.0M |
| G&A Expense | $56.6M | $58.0M |
| Transformational & Restructuring Expenses | $13.6M | N/A |
| Depreciation & Amortization Expense | $8.8M | $8.9M |
| Interest Expense | $10.3M | $11.2M |
| Cash from Operating Activities | $109.3M | $92.6M |
| Capital Expenditures | $7.0M | N/A |
| Total Debt Outstanding | $622M | N/A |
Corporate Comments
"Our second quarter operating results exceeded our expectations and reflected stable patient volumes, improved payor mix, and operating efficiencies," stated James D. Swift, M.D., CEO of Pediatrix Medical Group. He highlighted the ongoing portfolio management plans expected to be completed by the end of 2024, which aim to strengthen the company's financial position.
Dividends and Share Repurchase Program
There was no information provided regarding dividends or a share repurchase program.
Forward Guidance
Pediatrix anticipates its 2024 Adjusted EBITDA will range between $200 million to $220 million.
Stock Price Movement
After the earnings release, Pediatrix saw its stock price decrease by 4.63%.
Conclusion
Pediatrix Medical Group, Inc. reported mixed financial results for Q2 2024, with a slight increase in revenue but a significant net loss. While Adjusted EPS outperformed expectations, the company faces challenges, evident in the decrease in stock price. Key strategic initiatives and forward guidance indicate potential future performance improvements.
