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MEDNAX's (MD) Q3 Earnings Beat Estimates, Revenues Up Y/Y

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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.

MEDNAX, Inc. Price, Consensus and EPS Surprise

MEDNAX, Inc. Price, Consensus and EPS Surprise

MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote

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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