Core Insights - The rising share of commercial births in Florida is a significant growth driver for the company, expected to support margin growth [1] - The company is restructuring its portfolio by exiting affiliated office-based practices, aiming for an annual adjusted EBITDA improvement of approximately $30 million, with some benefits realized in 2024 and the remainder in 2025 [1] - The management forecasts adjusted EBITDA for 2024 to be between $205 million and $215 million, indicating a 4.8% improvement from 2023 [2] - The company is actively pursuing inorganic growth through M&A opportunities, having acquired a maternal-fetal medicine practice for $9.7 million in Q1 [3] - Stable same-facility patient volume growth is expected to continue, along with a 5.3% increase in hospital contract administrative fees in the first nine months of 2024 [4] Financial Performance - The consensus estimate for 2024 adjusted earnings per share is $1.35, reflecting a 7.1% year-over-year growth, with revenue growth estimated at 0.1% [5] - The stock is currently trading at a discount, with a forward P/E ratio of 9.28X compared to the industry average of 13.98X, indicating undervaluation [8] - Over the past six months, the stock has surged 80.9%, outperforming the industry and key peers [10] Long-term Outlook - The company has strong long-term potential due to its focus on maternal-fetal medicine, stable patient volume growth, and projected EBITDA improvements from restructuring [13] - The completed transition to a hybrid RCM structure and active M&A activity further position the company for continued growth [13]

Core Insights - Midland Exploration Inc. and Rio Tinto Exploration Canada Inc. have announced the results from the 2024 drilling campaign at the Galinée project, focusing on lithium mineralization [7][8] - The drilling campaign aimed to test multiple lithium showings, including Iceberg, White Stripes, Surge, Snow Fox, and White Lightning, with a total of 28 drill holes completed [7][8] - The project is located approximately 5 kilometers east of the Adina lithium deposit, which has a mineral resource estimate of 77.8 million tonnes at 1.15% Li2O [7][8] Drilling Results - The best results from the 2024 drilling campaign include: - 1.03% Li2O over 32.87 meters (TLIB0026) - 1.46% Li2O over 27.34 meters (TLIB0018) - 1.58% Li2O over 35.05 meters (TLIB0022 RC) - 0.76% Li2O over 38.73 meters (TLIB0020) [8][12] - A total of 21 diamond drill holes and 7 reverse circulation drill holes were completed, totaling 6,284.86 meters [8][12] - At least seven spodumene pegmatite bodies were identified, which remain open for further testing [8][12] Future Plans - Drilling is planned to resume in March 2025, with a budget of USD 3.59 million allocated for further exploration [14] - Early metallurgical tests are being evaluated on select core sections to determine lithium mineralogy and grain size [14] Geological Context - The Galinée project is situated in a favorable geological setting, with a major structure likely controlling the emplacement of pegmatites [14] - The Iceberg lithium showing was discovered along a contact zone that extends over more than 7 kilometers [14] Quality Control Measures - RTEC's sampling protocols include the use of blanks, duplicates, and standards to ensure data integrity [14]

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Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards, contrasting with the traditional strategy of buying low and selling high. This approach can lead to significant gains but carries risks if stocks lose momentum after becoming overvalued [1]. Group 1: Momentum Investing Strategy - Momentum investing involves buying high and selling higher, aiming for quick profits from fast-moving stocks [1]. - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1]. Group 2: Bargain Stocks with Momentum - A safer investment strategy is to target bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [2]. - The 'Fast-Paced Momentum at a Bargain' screen helps investors find fast-moving stocks that remain attractively priced [2]. Group 3: Pediatrix Medical Group (MD) Analysis - Pediatrix Medical Group (MD) has shown a four-week price change of 33.7%, indicating strong investor interest [3]. - Over the past 12 weeks, MD's stock has gained 55.7%, demonstrating its ability to deliver positive returns over a longer timeframe [4]. - MD has a beta of 1.55, suggesting it moves 55% more than the market in either direction, indicating fast-paced momentum [4]. Group 4: Valuation and Earnings Estimates - MD has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5]. - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [6]. - MD is trading at a Price-to-Sales ratio of 0.69, indicating it is relatively cheap, as investors pay only 69 cents for each dollar of sales [6]. Group 5: Additional Investment Opportunities - Besides MD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7]. - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8].

Pediatrix Medical Group, Inc. (MD) shares have jumped 30.5% since it reported strong third-quarter results on Nov. 1, 2024. The company benefited from growth in same-unit revenues and improved hospital contract administrative fees. However, the upside was partly offset by an increased expense level. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. MD reported third-quarter 2024 adjusted earnings per share (EPS) of 44 cents, which outpaced the Zacks Consensus Estimate by 18.9%. Also, ...

Financial Data and Key Metrics Changes - The third quarter operating results were modestly ahead of expectations, primarily driven by same unit revenue growth, with patient volumes stable to positive across all core service lines compared to the previous year [7][8] - Consolidated revenue growth was just under 1%, reflecting strong same unit growth offset by portfolio restructuring activity, which impacted revenue by over $20 million during the quarter [20][21] - Operating cash flow generated was $96 million, compared to $81 million in the prior year, indicating improved cash generation [24] - The company ended the quarter with cash just over $100 million, reducing net debt to $515 million from $600 million at the end of the previous quarter [25][26] - Adjusted EBITDA outlook for the full year was narrowed to a range of $205 million to $215 million [27] Business Line Data and Key Metrics Changes - On the hospital-based side, NICU days rose modestly, reflecting slightly positive total births, with positive comparisons across newborn nursery, pediatric intensive care, and pediatric hospitalist services [8] - Maternal-fetal medicine volume growth remained strong, consistent with trends throughout 2024 [8] Market Data and Key Metrics Changes - The payer mix provided a tailwind to the top line, although this moderated toward the end of the quarter [7] - The company experienced a four-quarter reset in payer mix, with expectations for stabilization in the coming quarters [33] Company Strategy and Development Direction - The company is focused on completing its portfolio restructuring plan by the end of the fourth quarter, exiting businesses totaling $200 million in revenue, with an expected annualized improvement in adjusted EBITDA of approximately $30 million [12][14] - The strategy includes solidifying margin profiles and creating meaningful operating efficiencies, while continuing investments in clinical research and education [14] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 has been a period of significant change, but goals remain unchanged to focus on service lines with solid financial underpinnings [14] - The transition to a hybrid revenue cycle management structure was completed without meaningful disruptions, and the focus will now shift to driving improved performance [11][24] Other Important Information - The company successfully navigated brief office closures due to Hurricanes Helene and Milton without material disruptions to hospital-based services [9][10] - The company is currently investing cash in attractive time deposit accounts at interest rates similar to debt service costs [26] Q&A Session Summary Question: Staffing levels for RCM transition - Management confirmed that staffing levels are appropriate moving forward, with a current headcount in the mid-130s [28] Question: Future expectations for payer mix and contract administration fees - Management indicated that the payer mix has stabilized and will need to be monitored, while contract administration fees have improved due to renegotiations [29][31][33] Question: Revenue run rate and EBITDA contribution from restructuring - Management expects to reach the $200 million revenue run rate by the end of the year, with a third of the expected $30 million EBITDA contribution from restructuring anticipated in 2024 [40][41] Question: Future cash flow and M&A opportunities - Management expressed optimism about the pipeline for acquisitions and indicated flexibility in capital deployment strategies moving forward [49][53]

Company Performance - Pediatrix Medical Group reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and up from $0.32 per share a year ago, representing an earnings surprise of 18.92% [1] - The company posted revenues of $511.16 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.21%, compared to $506.61 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates just once [2] Stock Performance - Pediatrix Medical Group shares have increased approximately 32.5% since the beginning of the year, outperforming the S&P 500's gain of 19.6% [3] - The current status of estimate revisions for the company is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $488.38 million, and for the current fiscal year, it is $1.28 on revenues of $1.99 billion [7] - The outlook for the Medical Services industry, where Pediatrix operates, is currently in the bottom 39% of Zacks industries, which may impact the stock's performance [8]

Financial Performance - Net income for the three months ended September 30, 2024, was $19.4 million, a decrease from $21.4 million in the same period of 2023[50]. - Adjusted EBITDA increased to $60.2 million for the three months ended September 30, 2024, compared to $50.4 million for the same period in 2023, reflecting a favorable impact from same-unit results and practice disposition activity[50]. - Net revenue for the three months ended September 30, 2024, was $511.2 million, up 0.9% from $506.6 million in the same period of 2023, driven by a 5.2% increase in same-unit net revenue[50]. - The operating margin decreased to 6.6% for the three months ended September 30, 2024, down from 7.9% in the same period of 2023, primarily due to transformational and restructuring related activities[50]. - General and administrative expenses were $58.1 million for the three months ended September 30, 2024, compared to $57.4 million in the same period of 2023, with expenses as a percentage of net revenue at 11.4%[50]. - Diluted net income per share was $0.23 for the three months ended September 30, 2024, down from $0.26 in the same period of 2023[51]. - Adjusted EPS rose to $0.44 for the three months ended September 30, 2024, compared to $0.32 for the same period in 2023[51]. - Net revenue for the nine months ended September 30, 2024, was $1.51 billion, a slight increase of $12.4 million or 0.8% compared to $1.50 billion in the same period of 2023[52]. - Same-unit net revenue increased by $51.5 million, or 3.7%, driven by a $29.1 million increase from net reimbursement-related factors and a $22.4 million increase related to patient service volumes[52]. - Loss from operations was $108.0 million for the nine months ended September 30, 2024, compared to income from operations of $118.8 million for the same period in 2023, resulting in an operating margin of (7.1)%[52]. - Adjusted EBITDA increased to $155.3 million for the nine months ended September 30, 2024, compared to $149.6 million for the same period in 2023[53]. - Cash provided by operating activities was $82.4 million for the nine months ended September 30, 2024, an increase of $9.3 million from $73.1 million in the same period of 2023[56]. Impairments and Losses - For the nine months ended September 30, 2024, the company recorded fixed asset impairments of $20.1 million, intangible asset impairments of $7.7 million, and operating lease right-of-use asset impairments of $10.6 million[40]. - A non-cash goodwill impairment charge of $130.0 million was recorded due to a decline in market capitalization, resulting in a total non-cash charge of $154.2 million[42]. - The total loss on disposal of two primary and urgent care practices was $10.6 million, with the first practice divested in Q2 2024 and the second in Q3 2024[41]. - Goodwill impairment was $154.2 million for the nine months ended September 30, 2024, primarily due to a sustained stock price decline[53]. - Transformational and restructuring related expenses amounted to $18.6 million for the three months ended September 30, 2024[50]. Regulatory and Compliance Risks - The expiration of the COVID-19 national emergency may impact Medicaid coverage and access to services, increasing regulatory and compliance risks[44]. - The company is subject to the No Surprises Act, which may limit the amounts charged for out-of-network services, potentially affecting financial performance[43]. Company Strategy and Operations - The company plans to exit almost all affiliated office-based practices, with completion expected by December 31, 2024, to focus on hospital-based and maternal-fetal medicine[40]. - The company operates a national network of affiliated physicians providing services in 37 states, focusing on neonatal and maternal-fetal care[38]. - The company has incurred transformational and restructuring related expenses, which are excluded from non-GAAP financial measures[46]. Tax and Interest Rates - The effective income tax rate was 23.0% for the three months ended September 30, 2024, compared to 30.6% for the same period in 2023[50]. - The tax rate decreased to 3.8% for the nine months ended September 30, 2024, compared to 29.4% for the same period in 2023, primarily due to the non-cash goodwill impairment charge[53]. - Interest expense for the three months ended September 30, 2024, was $10.1 million, slightly down from $10.4 million in the same period of 2023[50]. - A 1% change in interest rates would impact income before taxes by approximately $2.2 million per year based on the outstanding balance of $218.8 million[64]. Cash and Liabilities - As of September 30, 2024, cash and cash equivalents were $103.8 million, up from $73.3 million at December 31, 2023[54]. - Working capital increased to $155.1 million at September 30, 2024, from $94.5 million at December 31, 2023[54]. - As of September 30, 2024, the outstanding principal balance on the Amended Credit Agreement was $218.8 million, with $450.0 million available[61]. - The company had an outstanding principal balance of $400.0 million on the 2030 Notes, accruing interest at a rate of 5.375% per annum, totaling $21.5 million payable semi-annually[61]. - Total liability related to professional liability risks was $284.2 million, with $29.0 million classified as current liability[61]. - The company anticipates that funds generated from operations, along with current cash and available funds, will be sufficient to meet working capital requirements and contractual obligations for at least the next 12 months[61].

FOR MORE INFORMATION: Charles Lynch Senior Vice President, Finance and Strategy 954-384-0175, x 5692 charles.lynch@pediatrix.com FOR IMMEDIATE RELEASE Pediatrix Medical Group Reports Third Quarter Results FORT LAUDERDALE, Fla., November 1, 2024 - Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.23 per share for the three months ended September 30, 2024. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.44. For the 2024 third quarter, ...