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Mednax, Inc. (MD - Free Report) reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9%. The bottom line improved 127.3% year over year.
MD’s results gained momentum from improved revenues and a rise in patient volume.
Mednax’s revenues rose 3% year over year to $499 million in the fourth quarter, courtesy of higher patient volumes. The top line beat the consensus mark by 19.6%.
Same-unit revenues increased 17.6% year over year, benefited by net acquisition activity. Same-unit revenues attributable to patient volume improved 6.3% year over year.
Total operating expenses increased 12% year over year to $430.5 million in the quarter under review due to higher practise salaries and benefits, practise supplies and operating expenses plus general and administrative expenses.
General and administrative expenses of $59 million increased 7.9% year over year.Mednax’s interest expense slumped 39.2% year over year to $16.6 million as a result of redemption of its 5.25% senior notes with an outstanding principle amount of $750 million due 2023.
In the fourth quarter, adjusted EBITDA of $81 million increased 39% year over year.
2022 Outlook
On a preliminary basis, MD expects its 2022 Adjusted EBITDA to be at least $270 million.
Financial Update (as of Dec 31, 2021)
MD exited the fourth quarter of 2021 with cash and cash equivalents of $387 million, which plunged from the 2020-end level of $1.12 billion.
Total assets of $2.72 billion decreased 20.7% from the figure at 2020 end.
Mednax’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 $75 million in the fourth quarter, which declined 8.8% year over year.
The quarter also saw that Mednax has no outstanding borrowings under its revolving credit facility size of $600 million.
Ful-Year Update
Revenues for the year increased 10.4% year over year to $1.91 billion. Adjusted EBITDA for 2021 also improved 20.7% from the 2020 reported figure. For the year ended Dec 31, 2021, MD reported an Adjusted EPS of $1.63, up 71.6% year over year.
Among other players from the medical space that have reported fourth- quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) beat respective estimates, while HCA Healthcare, Inc. (HCA - Free Report) missed the same.
UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%. THC’s results gained from reduced expenses and operational excellence.
HCA Healthcare's fourth-quarter 2021 adjusted earnings of $4.42 per share missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 7% year over year on higher revenues.
HCA witnessed solid patient volumes in the quarter.
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Mednax's (MD) Q4 Earnings Surpass Estimates, Increase Y/Y
Mednax, Inc. (MD - Free Report) reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9%. The bottom line improved 127.3% year over year.
MD’s results gained momentum from improved revenues and a rise in patient volume.
MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote
Quarterly Update
Mednax’s revenues rose 3% year over year to $499 million in the fourth quarter, courtesy of higher patient volumes. The top line beat the consensus mark by 19.6%.
Same-unit revenues increased 17.6% year over year, benefited by net acquisition activity. Same-unit revenues attributable to patient volume improved 6.3% year over year.
Total operating expenses increased 12% year over year to $430.5 million in the quarter under review due to higher practise salaries and benefits, practise supplies and operating expenses plus general and administrative expenses.
General and administrative expenses of $59 million increased 7.9% year over year.Mednax’s interest expense slumped 39.2% year over year to $16.6 million as a result of redemption of its 5.25% senior notes with an outstanding principle amount of $750 million due 2023.
In the fourth quarter, adjusted EBITDA of $81 million increased 39% year over year.
2022 Outlook
On a preliminary basis, MD expects its 2022 Adjusted EBITDA to be at least $270 million.
Financial Update (as of Dec 31, 2021)
MD exited the fourth quarter of 2021 with cash and cash equivalents of $387 million, which plunged from the 2020-end level of $1.12 billion.
Total assets of $2.72 billion decreased 20.7% from the figure at 2020 end.
Mednax’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 $75 million in the fourth quarter, which declined 8.8% year over year.
The quarter also saw that Mednax has no outstanding borrowings under its revolving credit facility size of $600 million.
Ful-Year Update
Revenues for the year increased 10.4% year over year to $1.91 billion. Adjusted EBITDA for 2021 also improved 20.7% from the 2020 reported figure. For the year ended Dec 31, 2021, MD reported an Adjusted EPS of $1.63, up 71.6% year over year.
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
Among other players from the medical space that have reported fourth-
quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) beat respective estimates, while HCA Healthcare, Inc. (HCA - Free Report) missed the same.
UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%. THC’s results gained from reduced expenses and operational excellence.
HCA Healthcare's fourth-quarter 2021 adjusted earnings of $4.42 per share missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 7% year over year on higher revenues.
HCA witnessed solid patient volumes in the quarter.