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MEDNAX, Inc. (MD - Free Report) reported first-quarter 2021 adjusted earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 15 cents by a whopping 60% on the back of lower costs. However, the bottom line plunged 25% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely impact the company’s patient volumes and revenues, which in turn, dragged its results.
The company generated revenues of $447 million, which beat the Zacks Consensus Estimate by 2.5%. The top line, however, slumped 47.2% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues were up 2.5% year over year.
General and administrative expenses decreased 1.3% year over year to $66.5 million on the back of stock-based compensation and salary decreases from net staffing reductions.
Total operating expenses dipped 2.3% year over year to $420.6 million on the back of lower practise supplies and other operating expenses, lower general and administrative expenses, and to a large extent, lower transformational and restructuring-related expenses.
Interest expense of the company declined 36.2% on the back of its redemption of $750-million outstanding principle amount of 5.25% senior notes due 2023.
In the quarter under review, adjusted EBITDA totalled $45.5 million, up 37.5% year over year.
Financial Update
As of Mar 31, 2021, the company had cash and cash equivalents of $270 million, which decreased 76% from the level as of Dec 31, 2020.
The company’s total debt, net of $1 billion, was down 42.7% from the level at 2020 end while total assets worth $2.4 billion dropped 25.8% from the last-year end.
Cash flow used in operating activities was $98.9 million in the quarter under review, compared with $153 million in first-quarter 2020.
Of the medical sector players that have reported first-quarter results so far, the bottom-line results of Community Health Systems, Inc. (CYH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corp. (THC - Free Report) beat their respective Zacks Consensus Estimate.
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MEDNAX's (MD) Q1 Earnings Surpass Estimates, Decline Y/Y
MEDNAX, Inc. (MD - Free Report) reported first-quarter 2021 adjusted earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 15 cents by a whopping 60% on the back of lower costs. However, the bottom line plunged 25% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely impact the company’s patient volumes and revenues, which in turn, dragged its results.
MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote
Quarterly Details
The company generated revenues of $447 million, which beat the Zacks Consensus Estimate by 2.5%. The top line, however, slumped 47.2% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues were up 2.5% year over year.
General and administrative expenses decreased 1.3% year over year to $66.5 million on the back of stock-based compensation and salary decreases from net staffing reductions.
Total operating expenses dipped 2.3% year over year to $420.6 million on the back of lower practise supplies and other operating expenses, lower general and administrative expenses, and to a large extent, lower transformational and restructuring-related expenses.
Interest expense of the company declined 36.2% on the back of its redemption of $750-million outstanding principle amount of 5.25% senior notes due 2023.
In the quarter under review, adjusted EBITDA totalled $45.5 million, up 37.5% year over year.
Financial Update
As of Mar 31, 2021, the company had cash and cash equivalents of $270 million, which decreased 76% from the level as of Dec 31, 2020.
The company’s total debt, net of $1 billion, was down 42.7% from the level at 2020 end while total assets worth $2.4 billion dropped 25.8% from the last-year end.
Cash flow used in operating activities was $98.9 million in the quarter under review, compared with $153 million in first-quarter 2020.
Zacks Rank
MEDNAX currently carries a Zacks Rank #4 (Sell).
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 have reported first-quarter results so far, the bottom-line results of Community Health Systems, Inc. (CYH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corp. (THC - Free Report) beat their respective Zacks Consensus Estimate.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>