MEDNAX, Inc. (MD - Free Report) reported third-quarter 2021 adjusted earnings of 46 cents per share, which outpaced the Zacks Consensus Estimate by 9.5%. The bottom line improved 24.3% year over year.
The company’s results gained momentum on the back of improved revenues, rise in patient volume and reduced operating expenses.
Quarterly Update
The company’s revenues rose 7% year over year to $493 million in the third quarter, courtesy of higher patient volumes. The top line beat the consensus mark by 2.2%.
Same-unit revenues advanced 5.9% year over year benefited by net acquisition activity. Meanwhile, same-unit revenues attributable to patient volume improved 6.5% year over year.
Total operating expenses dipped 1.4% year over year to $434.2 million in the quarter under review due to lower transformational and restructuring related expenses.
General and administrative expenses of $66.9 million inched up 0.9% year over year due to increased costs associated with information-technology initiatives and various COVID-19 mitigation efforts resulting in temporary lowering of salary expense during the prior-year quarter.
The company’s interest expense slumped 35.5% year over year to $17.6 million as a result of this year’s redemption of its 5.25% senior notes with an outstanding principle amount of $750 million due 2023.
In the third quarter, adjusted EBITDA of $73.4 million inched up 0.8% year over year.
Financial Update (as of Sep 30, 2021)
The company exited the third quarter with cash and cash equivalents of $357.9 million, which plunged to more than three-fold from the 2020-end level.
Total assets of $2.6 billion decreased 21% from the figure at 2020-end.
The company’s total debt amounted to $1 billion, which plunged 42.4% from the figure as of Dec 31, 2020.
Cash flow generated from operating activities totaled $67.2 million in the third quarter, which declined 47.1% year over year.
The quarter also saw MEDNAX permanently trimming its revolving credit facility size from $1.2 billion to $600 million. The company had no outstanding borrowings under its $600 million revolving credit facility at the third-quarter end.
Zacks Rank
MEDNAX currently carries 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
Of the medical sector players that reported third-quarter results so far, the bottom lines of HCA Healthcare, Inc. (HCA - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) have beat the Zacks Consensus Estimate.
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MEDNAX, Inc. (MD - Free Report) reported third-quarter 2021 adjusted earnings of 46 cents per share, which outpaced the Zacks Consensus Estimate by 9.5%. The bottom line improved 24.3% year over year.
The company’s results gained momentum on the back of improved revenues, rise in patient volume and reduced operating expenses.
Quarterly Update
The company’s revenues rose 7% year over year to $493 million in the third quarter, courtesy of higher patient volumes. The top line beat the consensus mark by 2.2%.
Same-unit revenues advanced 5.9% year over year benefited by net acquisition activity. Meanwhile, same-unit revenues attributable to patient volume improved 6.5% year over year.
Total operating expenses dipped 1.4% year over year to $434.2 million in the quarter under review due to lower transformational and restructuring related expenses.
General and administrative expenses of $66.9 million inched up 0.9% year over year due to increased costs associated with information-technology initiatives and various COVID-19 mitigation efforts resulting in temporary lowering of salary expense during the prior-year quarter.
The company’s interest expense slumped 35.5% year over year to $17.6 million as a result of this year’s redemption of its 5.25% senior notes with an outstanding principle amount of $750 million due 2023.
In the third quarter, adjusted EBITDA of $73.4 million inched up 0.8% year over year.
Financial Update (as of Sep 30, 2021)
The company exited the third quarter with cash and cash equivalents of $357.9 million, which plunged to more than three-fold from the 2020-end level.
Total assets of $2.6 billion decreased 21% from the figure at 2020-end.
The company’s total debt amounted to $1 billion, which plunged 42.4% from the figure as of Dec 31, 2020.
Cash flow generated from operating activities totaled $67.2 million in the third quarter, which declined 47.1% year over year.
The quarter also saw MEDNAX permanently trimming its revolving credit facility size from $1.2 billion to $600 million. The company had no outstanding borrowings under its $600 million revolving credit facility at the third-quarter end.
Zacks Rank
MEDNAX currently carries 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
Of the medical sector players that reported third-quarter results so far, the bottom lines of HCA Healthcare, Inc. (HCA - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) have beat the Zacks Consensus Estimate.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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