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Pediatrix (MD) Q4 Earnings miss on High Operating Expenses
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Pediatrix Medical Group Inc. (MD - Free Report) reported fourth-quarter 2022 adjusted earnings of 47 cents per share, which missed the Zacks Consensus Estimate by 4.1%. Also, the bottom line declined from 52 cents per share a year ago.
MD’s net revenues of $513.8 million rose 3.1% year over year. The top line beat the consensus mark by 2.4%.
Pediatrix’s weak quarterly earnings reflected higher operating expenses due to wage inflation, higher headcount and poor performance by the revenue cycle management vendor. However, the negatives were partially offset by strong patient volumes, lower overhead costs and a stable payor mix.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Overall same-unit revenues rose 0.9% year over year in the quarter under review thanks to revenue growth backed by net acquisition activity. Same-unit revenues attributable to patient volume inched up 4.1% year over year on the back of solid growth across all services.
Total operating expenses increased 10.9% year over year to $477.8 million due to a 14.8% escalation in practice supplies and other operating expenses, a 10.2% uptick in practice salaries and benefits and a 16.6% rise in depreciation and amortization expenses. The figure came higher than our estimate of $442.5 million.
General and administrative expenses of $51.1 million dropped 13.4% year over year in the fourth quarter, courtesy of cost savings resulting from net staffing reductions, a decline in incentive compensation expense and lower revenue cycle management expenses.
Interest expense plunged 39.8% year over year to $10 million, attributable to a declining debt level and reduced interest rates from the refinancing transactions of Pediatrix closed in the first quarter of 2022.
Adjusted EBITDA of $66.5 million tumbled 17.9% year over year in the quarter under review but surpassed our estimate of $65.7 million.
Financial Update (as of Dec 31, 2022)
Pediatrix exited 2022 with cash and cash equivalents of $9.8 million, which declined nearly 40-fold from the 2021-end figure as the company used cash to redeem its 6.25% senior notes and pay-related fees and expenses.
Total assets of nearly $2,347 million decreased from $2,722 million at 2021-end.
Net debt, including finance leases, amounted to $645 million, down from $1,004 million at 2021-end.
Total equity of $891.6 million slipped from $896.7 million at 2021-end.
In 2022, net cash provided by operating activities more than doubled the past year’s figure of $76.7 million to $166 million.
Pediatrix repaid substantially all their borrowings on the revolving credit facility bringing down the leverage to 2.6.
Preliminary 2023 View
For 2023, management anticipates adjusted EBITDA within $235-$245 million compared with $241 million in 2022. Also, it expects depreciation and amortization expense to be $38 million while interest expense will likely be in the range of $40-42.2 million.
Medical sector players that have reported fourth-quarter results so far areElevance Health Inc. (ELV - Free Report) ,HCA Healthcare, Inc. (HCA - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) . Let’s see how they have performed.
Elevance Health’s fourth-quarter 2022 earnings of $5.23 per share beat the Zacks Consensus Estimate of $5.20 by 0.6%. Additionally, the bottom line advanced 1.8% year over year. ELV’s operating revenues improved 10.1% year over year to $39,667 million in the quarter under review. The top line missed the consensus mark by a whisker. Medical membership of Elevance Health as of Dec 31, 2022, totaled 47.5 million, which rose 4.8% year over year in the fourth quarter. Premiums of $33,646 million rose 9.4% year over year.
HCA Healthcare reported fourth-quarter 2022 adjusted earnings of $4.64 per share, missing the Zacks Consensus Estimate by 3.1%. However, the bottom line advanced 5% year over year. Revenues of HCA improved 2.9% year over year to $15.5 billion in the fourth quarter and missed the consensus mark by a whisker. Same-facility equivalent admissions rose 5.4% year over year in the fourth quarter, and same-facility admissions grew 2.9% year over year.
AMN Healthcare Services reported fourth-quarter 2022 adjusted earnings of $2.48 per share, beating the Zacks Consensus Estimate by 14.3%. However, the bottom line declined 15.9% year over year. The top line surpassed the Zacks Consensus Estimate by 5.8% but declined 17.4% year over year.
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Pediatrix (MD) Q4 Earnings miss on High Operating Expenses
Pediatrix Medical Group Inc. (MD - Free Report) reported fourth-quarter 2022 adjusted earnings of 47 cents per share, which missed the Zacks Consensus Estimate by 4.1%. Also, the bottom line declined from 52 cents per share a year ago.
MD’s net revenues of $513.8 million rose 3.1% year over year. The top line beat the consensus mark by 2.4%.
Pediatrix’s weak quarterly earnings reflected higher operating expenses due to wage inflation, higher headcount and poor performance by the revenue cycle management vendor. However, the negatives were partially offset by strong patient volumes, lower overhead costs and a stable payor mix.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote
Q4 Update
Overall same-unit revenues rose 0.9% year over year in the quarter under review thanks to revenue growth backed by net acquisition activity. Same-unit revenues attributable to patient volume inched up 4.1% year over year on the back of solid growth across all services.
Total operating expenses increased 10.9% year over year to $477.8 million due to a 14.8% escalation in practice supplies and other operating expenses, a 10.2% uptick in practice salaries and benefits and a 16.6% rise in depreciation and amortization expenses. The figure came higher than our estimate of $442.5 million.
General and administrative expenses of $51.1 million dropped 13.4% year over year in the fourth quarter, courtesy of cost savings resulting from net staffing reductions, a decline in incentive compensation expense and lower revenue cycle management expenses.
Interest expense plunged 39.8% year over year to $10 million, attributable to a declining debt level and reduced interest rates from the refinancing transactions of Pediatrix closed in the first quarter of 2022.
Adjusted EBITDA of $66.5 million tumbled 17.9% year over year in the quarter under review but surpassed our estimate of $65.7 million.
Financial Update (as of Dec 31, 2022)
Pediatrix exited 2022 with cash and cash equivalents of $9.8 million, which declined nearly 40-fold from the 2021-end figure as the company used cash to redeem its 6.25% senior notes and pay-related fees and expenses.
Total assets of nearly $2,347 million decreased from $2,722 million at 2021-end.
Net debt, including finance leases, amounted to $645 million, down from $1,004 million at 2021-end.
Total equity of $891.6 million slipped from $896.7 million at 2021-end.
In 2022, net cash provided by operating activities more than doubled the past year’s figure of $76.7 million to $166 million.
Pediatrix repaid substantially all their borrowings on the revolving credit facility bringing down the leverage to 2.6.
Preliminary 2023 View
For 2023, management anticipates adjusted EBITDA within $235-$245 million compared with $241 million in 2022. Also, it expects depreciation and amortization expense to be $38 million while interest expense will likely be in the range of $40-42.2 million.
Zacks Rank
Pediatrix currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Medical sector players that have reported fourth-quarter results so far areElevance Health Inc. (ELV - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) . Let’s see how they have performed.
Elevance Health’s fourth-quarter 2022 earnings of $5.23 per share beat the Zacks Consensus Estimate of $5.20 by 0.6%. Additionally, the bottom line advanced 1.8% year over year. ELV’s operating revenues improved 10.1% year over year to $39,667 million in the quarter under review. The top line missed the consensus mark by a whisker. Medical membership of Elevance Health as of Dec 31, 2022, totaled 47.5 million, which rose 4.8% year over year in the fourth quarter. Premiums of $33,646 million rose 9.4% year over year.
HCA Healthcare reported fourth-quarter 2022 adjusted earnings of $4.64 per share, missing the Zacks Consensus Estimate by 3.1%. However, the bottom line advanced 5% year over year. Revenues of HCA improved 2.9% year over year to $15.5 billion in the fourth quarter and missed the consensus mark by a whisker. Same-facility equivalent admissions rose 5.4% year over year in the fourth quarter, and same-facility admissions grew 2.9% year over year.
AMN Healthcare Services reported fourth-quarter 2022 adjusted earnings of $2.48 per share, beating the Zacks Consensus Estimate by 14.3%. However, the bottom line declined 15.9% year over year. The top line surpassed the Zacks Consensus Estimate by 5.8% but declined 17.4% year over year.