Workflow
MD Gains 11% Since Q4 Earnings Release, Unveils '25 View
MDpediatrix(MD) ZACKS·2025-02-24 19:11

Core Insights - Pediatrix Medical Group, Inc. (MD) reported a significant increase in share price by 10.6% following the release of its fourth-quarter 2024 results, driven by strong same-unit revenue growth, improved payor mix, and higher hospital contract administrative fees [1][2] - The company achieved adjusted earnings per share (EPS) of 51 cents, exceeding the Zacks Consensus Estimate by 37.8%, and marking a year-over-year increase of 59.4% [2][5] - Net revenues reached 502.4million,reflectinga1.2502.4 million, reflecting a 1.2% year-over-year increase and surpassing the consensus estimate by 3.4% [2][3] Financial Performance - Same-unit revenues improved by 8.7% year over year, significantly beating the Zacks Consensus Estimate and the company's own estimate of 4.3% [3] - The growth in same-unit revenues was attributed to a 2.8% increase in patient volume and a 5.9% rise from net reimbursement-related factors [3] - Total operating expenses decreased by 23.8% year over year to 463.1 million, primarily due to lower practice salaries and benefits [4] Income and Cash Flow - The net income for the quarter was 30.5million,asubstantialrecoveryfromalossof30.5 million, a substantial recovery from a loss of 124.3 million in the prior-year quarter [5] - Adjusted EBITDA rose by 35.2% year over year to 68.7million,exceedingthecompany′sestimateof68.7 million, exceeding the company's estimate of 53.8 million [5] - Operating cash flow surged by 50.4% from the previous year to 206.6million[7]BalanceSheetandShareholderEquity−AsofDecember31,2024,thecompanyhadcashandcashequivalentsof206.6 million [7] Balance Sheet and Shareholder Equity - As of December 31, 2024, the company had cash and cash equivalents of 229.9 million, more than tripling from the end of 2023 [6] - Total assets decreased by 3% to 2.2billion,whiletotaldebt,includingfinanceleases,fellby2.52.2 billion, while total debt, including finance leases, fell by 2.5% to 617.7 million [6] - Total shareholders' equity decreased by 9.9% from the end of 2023 to 764.9million[7]ShareRepurchaseProgram−PediatrixMedicalrepurchasedcommonsharesworth764.9 million [7] Share Repurchase Program - Pediatrix Medical repurchased common shares worth 1.7 million in 2024, with a remaining capacity of 2.9millionunderits2.9 million under its 500 million repurchase program [8] 2025 Outlook - Management projects adjusted EBITDA for 2025 to be between 215millionand215 million and 235 million, indicating a slight increase from the 2024 figure [10] - Estimated net income for 2025 is projected to be between 98.3millionand98.3 million and 112.9 million, a significant recovery from a loss of 99.1millionin2024[10]−Interestexpensesareexpectedtodeclineby7.199.1 million in 2024 [10] - Interest expenses are expected to decline by 7.1% to 37.9 million in 2025 [10]