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Mednax's (MD) Q4 Earnings Surpass Estimates, Increase Y/Y

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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, Inc. Price, Consensus and EPS Surprise 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.