Core Insights - Pediatrix Medical Group, Inc. has authorized a $250 million share repurchase program, supported by strong cash generation with $245 million in operating cash flow over the past 12 months, reflecting an 18.4% year-over-year increase [1][10] Financial Performance - In the first half of 2025, Pediatrix repurchased $1.8 million in common stock and had $1.1 million remaining under its previous buyback program initiated in 2018, providing management with increased flexibility to enhance shareholder value [2] - As of the end of Q2 2025, Pediatrix had $224.7 million in cash and cash equivalents, a slight decrease of 2.3% from the end of 2024, while total debt was $607.5 million, down 1.6% from December levels, with a long-term debt-to-capital ratio of 42.2%, below the industry average of 43.7% [3] - Profitability improved due to the divestiture of lower-margin, non-core assets, resulting in a return on capital of 10.6%, significantly above the industry average of 7.4% [4] Operational Momentum - The company is experiencing operational momentum with higher patient volumes, improved acuity, favorable collections, and reduced operating expenses, leading to an increased adjusted EBITDA guidance for 2025 to a range of $245-$255 million from the previous $220-$240 million [5] Market Position and Valuation - Pediatrix Medical's shares have increased by 21.9% year-to-date, outperforming the broader industry [9] - The company trades at a forward price-to-earnings ratio of 9.54X, which is below the industry average of 15.08X, and holds a Value Score of A [11] - The Zacks Consensus Estimate for Pediatrix Medical's 2025 earnings indicates a 14.6% year-over-year increase, followed by a 3.2% growth in the subsequent year [12]

Core Insights - Midland Exploration Inc. has initiated an exploration program to investigate copper-gold-molybdenum-silver occurrences at its Saruman project, located in the Eeyou Istchee James Bay region of Quebec [4][6] - The Saruman project consists of 121 claims covering an area of 64 square kilometers and was acquired in November 2023 [4][8] - Strong copper anomalies were identified in a high-density lake sediment geochemistry survey, with significant concentrations found in a 5 by 3-kilometer area [6][10] Exploration Details - Reconnaissance work in summer 2024 revealed anomalous values of 0.32% Cu, 0.35 g/t Au, 0.39% Mo, and 13.8 g/t Ag in grab sample L880271 [6][10] - The mineralization observed includes disseminated, veinlet, and fracture-filling chalcopyrite, pyrite, and molybdenite in tonalites [6][10] - The current mineralization does not fully explain the extent of the lake sediment copper anomalies, suggesting a potentially larger Cu-Au-Mo-Ag system may be present [7][10] Geological Context - The Saruman project is situated in the Opatica geological Subprovince, specifically within the Theodat Complex, which remains poorly understood [8] - No previous exploration has been reported in the project area, indicating a relatively unexplored region with significant potential [8][10] Quality Control and Methodology - Exploration programs are designed and interpreted by Qualified Persons following industry best practices, including quality assurance and control measures [10][11] - Statistical processing of lake sediment data was conducted by the Ministère des Ressources Naturelles et des Forêts du Québec (MRNF), identifying multiple copper anomalies above the 97th and 99.5th percentiles [9][10]

Core Viewpoint - The article discusses the momentum investing strategy, highlighting the potential of Pediatrix Medical Group (MD) as a strong momentum pick based on its recent performance and earnings outlook. Company Performance - Pediatrix Medical Group has a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [3][4] - Over the past week, MD shares increased by 11.93%, while the Zacks Medical Services industry rose by 1.6% [6] - In the last month, MD's price change was 27.6%, significantly outperforming the industry's 1.42% [6] - Over the past quarter, MD shares have risen by 18.29%, and over the last year, they have gained 54.08%, compared to the S&P 500's increases of 9.33% and 17.71% respectively [7] Trading Volume - The average 20-day trading volume for MD is 848,917 shares, indicating a bullish sign as the stock is rising with above-average volume [8] Earnings Outlook - In the past two months, four earnings estimates for MD have been revised upwards, with no downward revisions, boosting the consensus estimate from $1.61 to $1.73 [10] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, Pediatrix Medical Group is positioned as a promising investment opportunity [12]

Core Insights - Pediatrix Medical Group, Inc. (MD) shares increased by 12.1% following the release of its second-quarter 2025 results, driven by higher patient volumes, improved patient acuity, favorable collections, and a significant reduction in operating expenses, although net revenues declined due to practice dispositions [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 were reported at 53 cents, exceeding the Zacks Consensus Estimate by 26.2% and reflecting a year-over-year increase of 55.9% [2][9]. - Net revenues fell by 7% year over year to $468.8 million, but still surpassed the consensus estimate by 0.4% [2]. - Same-unit revenues grew by 6.4% year over year, significantly above the growth estimate of 1.1%, with patient volume contributing a 2.9% increase [3]. - Total operating expenses decreased by 38.2% year over year to $409 million, lower than the estimated $414.9 million, primarily due to reductions in practice salaries, benefits, and other operating costs [4]. Cost Management - Practice salaries and benefits amounted to $323.5 million, down 9.6% year over year, influenced by practice dispositions [5]. - Interest expenses decreased by 11.4% year over year to $9.1 million, also below the estimate of $9.5 million [5]. Profitability Metrics - Net income for the quarter was $39.3 million, a significant recovery from a loss of $153 million in the prior-year quarter [5]. - Adjusted EBITDA rose by 26.6% year over year to $73.2 million, exceeding the estimate of $59.4 million [5][9]. Balance Sheet Overview - As of June 30, 2025, cash and cash equivalents stood at $224.7 million, a slight decrease of 2.3% from the end of 2024 [6]. - Total assets were reported at $2.1 billion, down 2.4% from the previous year-end [6]. - Total debt, including finance leases, was $607.5 million, a reduction of 1.6% from December 31, 2024 [6]. Shareholder Returns - The company repurchased common shares worth $1.8 million in the first half of 2025, with a remaining capacity of $1.1 million under its $500 million repurchase program [10]. Future Guidance - Management revised the 2025 adjusted EBITDA guidance to a range of $245-$255 million, up from the previous estimate of $220-$240 million [11]. - Net income is now projected to be between $126.02 million and $133.32 million, an increase from the earlier guidance of $106.21-$120.81 million [11].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of over $73 million for Q2 2025, exceeding expectations, driven by same unit revenue growth of over 6% [4][5] - Consolidated revenue decreased by just over 7%, primarily due to non-same unit activity declining by about $63 million, offset by strong same unit growth [6][7] - The full year adjusted EBITDA range has been raised and narrowed to $245 million to $255 million, reflecting improved cash position and balance sheet [5][10] Business Line Data and Key Metrics Changes - Same unit pricing increased by 3.5%, driven by increased patient acuity, strong RCM cash collections, and an increase in contract administrative fees [6][7] - Same unit patient service volumes increased by approximately 3%, with NICU days up over 6% and modest increases in maternal fetal medicine services [7][8] - G&A expenses decreased to $5.3 million from $8.8 million in the prior year, reflecting staffing reductions and decreases in other expense categories [8] Market Data and Key Metrics Changes - Payer mix remained stable compared to the prior year and on a consecutive quarter basis [6] - Accounts receivable DSO improved to 46.4 days, down over three days year over year, indicating better cash collections [9] Company Strategy and Development Direction - The company aims to be the best partner to hospitals and the employer of choice for clinicians, focusing on quality of care and operational excellence [11][12] - The addition of a new team member is expected to enhance quality efforts and identify financial and operational opportunities [14] - The company is prepared to manage through legislative changes affecting Medicaid, particularly in non-expansion states where 60% of its volume resides [15][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating headwinds in the healthcare environment, emphasizing the importance of a strong balance sheet [11][17] - The company is optimistic about its ability to manage through the impacts of the Neonatal Care Transparency Act and other legislative changes [15][30] - Future guidance reflects a cautious view on hospital landscape but expects stable margins moving forward [50][51] Other Important Information - The company generated $138 million in operating cash flow in Q2, up from $109 million in the prior year, driven by higher earnings [8] - The company ended the quarter with cash of $225 million and net debt of just over $380 million, reflecting a net leverage of just above 1.5 times [9] Q&A Session Summary Question: Can you talk about the hospital admin fees and their growth? - Hospital admin fees contributed about a third of the pricing growth in Q2, with negotiations showing success despite challenges [20][21] Question: What is the flow-through of admin fee increases to doctor compensation versus corporate? - The flow-through is estimated to be in the 30% to 40% range and is expected to be immediate [23][24] Question: What is driving the strong NICU growth this quarter? - The growth is attributed to multiple factors, including increased acuity and overall strong performance across services [27] Question: How will the Medicaid impact from the big beautiful bill affect the company? - The impact is unclear, but management is hopeful that the focus on pregnant women and children will shield them from cuts [30][33] Question: Can you elaborate on the buyback strategy and its pace? - The company is focused on maintaining a strong balance sheet and is open to share buybacks if deemed beneficial [38][41] Question: What is the update on IDR and arbitration with payers? - The process has been favorable, with the company remaining predominantly in-network and successfully negotiating with payers [44] Question: What is the outlook on revenue and margins for the rest of the year? - The company expects stable margins but acknowledges tougher comps as the year progresses [50][51]

Core Viewpoint - Pediatrix Medical Group reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing an increase from $0.34 per share a year ago, representing an earnings surprise of +26.19% [1][2] Financial Performance - The company posted revenues of $468.84 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%, but down from $504.3 million year-over-year [2] - Over the last four quarters, Pediatrix Medical Group has consistently surpassed consensus EPS estimates [2] Stock Performance - Shares of Pediatrix Medical Group have declined approximately 6.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $478.3 million, and for the current fiscal year, it is $1.65 on revenues of $1.88 billion [7] - The trend of estimate revisions for Pediatrix Medical Group was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Medical Services industry, to which Pediatrix Medical Group belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for H1 2025 show a shift to profitability, driven by the absence of prior-year impairment charges, with improved cash flow from operations [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased to $2.10 billion, while total liabilities significantly reduced, increasing shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,102,100** | **$2,152,700** | **($50,600)** | | Total Current Assets | $613,050 | $639,607 | ($26,557) | | Goodwill | $1,242,606 | $1,242,606 | $0 | | **Total Liabilities** | **$1,268,347** | **$1,387,762** | **($119,415)** | | Total Current Liabilities | $341,043 | $434,110 | ($93,067) | | Long-term debt, net | $583,863 | $597,119 | ($13,256) | | **Total Shareholders' Equity** | **$833,753** | **$764,938** | **$68,815** | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q2 2025 net income of $39.3 million marks a significant turnaround from a prior-year loss, primarily due to the absence of impairment charges, despite a 7.0% revenue decrease Q2 Performance Comparison (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $468,844 | $504,296 | -7.0% | | Income (Loss) from Operations | $59,867 | ($157,723) | N/A | | Net Income (Loss) | $39,260 | ($153,025) | N/A | | Diluted EPS | $0.46 | ($1.84) | N/A | Six-Month Performance Comparison (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $927,203 | $999,397 | -7.2% | | Income (Loss) from Operations | $91,968 | ($141,831) | N/A | | Net Income (Loss) | $59,997 | ($148,990) | N/A | | Diluted EPS | $0.70 | ($1.79) | N/A | - The significant improvement in net income for both the three and six-month periods in 2025 is largely attributable to the absence of the **$154.2 million goodwill impairment**, **$27.8 million long-lived asset impairment**, and **$10.9 million loss on disposal of businesses** recorded in 2024[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash from operations turned positive at $19.7 million, a substantial improvement from the prior year's usage, reflecting better earnings and working capital Six-Month Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,704 | ($18,275) | | Net cash used in investing activities | ($14,618) | ($29,130) | | Net cash used in financing activities | ($10,294) | ($6,451) | | **Net decrease in cash and cash equivalents** | **($5,208)** | **($53,856)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue recognition, debt structure, and significant prior-year impairment charges related to the company's strategic exit from office-based practices - In 2024, the company exited almost all of its affiliated office-based practices, including its primary and urgent care service line, to refocus its operations[20](index=20&type=chunk) Net Revenue by Category (in thousands) | Category | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net patient service revenue | $397,410 | $432,847 | $786,788 | $854,678 | | Hospital contract administrative fees | $68,224 | $70,913 | $133,408 | $142,716 | | Other revenue | $3,210 | $536 | $7,007 | $2,003 | | **Total** | **$468,844** | **$504,296** | **$927,203** | **$999,397** | - In Q2 2024, the company recognized a non-cash **goodwill impairment charge of $154.2 million**, fixed asset impairments of **$20.1 million**, intangible asset impairments of **$7.7 million**, and a **loss on disposal of businesses of $10.9 million**[34](index=34&type=chunk)[35](index=35&type=chunk) - As of June 30, 2025, the company had outstanding debt consisting of **$400.0 million in 5.375% senior notes due 2030** and a **$206.3 million balance on its Term A Loan**. The revolving credit line of **$450.0 million was fully available**[37](index=37&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025 revenue decline to practice dispositions, offset by same-unit growth, leading to improved operating margins and strong liquidity [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q2 2025 net revenue decreased 7.0% due to dispositions, but same-unit revenue grew 6.4%, leading to a swing to operating profit and increased Adjusted EBITDA and EPS - For Q2 2025, the **$35.5 million (7.0%) decrease in net revenue** was primarily due to practice dispositions, which was partially offset by a **$27.9 million (6.4%) increase in same-unit revenue**[75](index=75&type=chunk) - Same-unit revenue growth in Q2 2025 was driven by a **$15.0 million (3.5%) increase from net reimbursement-related factors** (like patient acuity and collections) and a **$12.9 million (2.9%) increase from patient service volumes**[75](index=75&type=chunk) Non-GAAP Performance Reconciliation (Q2) | Metric (in millions, except EPS) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $39.3 | ($153.0) | | **Adjusted EBITDA** | **$73.2** | **$57.9** | | Diluted EPS | $0.46 | ($1.84) | | **Adjusted EPS** | **$0.53** | **$0.34** | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $224.7 million in cash and a fully available $450.0 million credit line, alongside improved working capital and DSO - The company's liquidity position at June 30, 2025 included **$224.7 million in cash and cash equivalents** and full availability of its **$450.0 million Revolving Credit Line**[102](index=102&type=chunk)[113](index=113&type=chunk) - **Days Sales Outstanding (DSO) improved to 46.4 days** at June 30, 2025, down from 47.6 days at December 31, 2024, and 49.5 days at June 30, 2024, primarily due to improved cash collections[106](index=106&type=chunk) - Total outstanding debt principal at June 30, 2025, was **$606.3 million**, composed of the **$400.0 million 2030 Notes** and the **$206.3 million Term A Loan**[113](index=113&type=chunk)[114](index=114&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its $206.3 million variable-rate Term A Loan, with a 1% rate change impacting pre-tax income by $2.1 million annually - The company is exposed to interest rate risk on its **$206.3 million outstanding balance of the Term A Loan**. A **1% change in interest rates** would result in an annual impact of approximately **$2.1 million to pre-tax income**[120](index=120&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[122](index=122&type=chunk) - No material changes to internal control over financial reporting occurred during the second quarter of 2025[123](index=123&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, primarily medical malpractice claims, which management does not expect to have a material adverse effect - The company is involved in routine legal proceedings, mostly related to medical malpractice claims, and does not expect them to have a material adverse effect on its financial condition[126](index=126&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K were reported - No material changes to risk factors were reported since the company's 2024 Form 10-K[128](index=128&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased 14,631 shares of common stock for $0.2 million to satisfy tax withholding obligations related to restricted stock vesting - In Q2 2025, the company withheld **14,631 shares of common stock** to satisfy tax withholding obligations from vesting restricted stock[129](index=129&type=chunk)[130](index=130&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) Mr. Don Gregory Neeb was appointed Chief Investment and Strategy Officer, effective August 1, 2025, with a compensation package including salary, retention award, and equity - The Board of Directors appointed Mr. Don Gregory Neeb as the company's Chief Investment and Strategy Officer, effective August 1, 2025[132](index=132&type=chunk) - Mr. Neeb's compensation package includes a **$550,000 annual salary**, a **$1 million one-time cash retention award**, a **target bonus of 125% of salary**, and substantial performance-based equity awards[134](index=134&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the new Chief Investment and Strategy Officer's employment agreement and required certifications - The exhibits filed with the report include the employment agreement for Don Gregory Neeb and required certifications under the Sarbanes-Oxley Act[139](index=139&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Pediatrix%20Medical%20Group%20Reports%20Second%20Quarter%20Results) Pediatrix Medical Group reports strong Q2 2025 results, exceeding forecasts and raising full-year Adjusted EBITDA outlook [Q2 2025 Performance Overview](index=1&type=section&id=1.1%20Q2%202025%20Performance%20Overview) Pediatrix Medical Group reported strong second-quarter results for 2025, exceeding forecasts with a net income of $39 million and Adjusted EBITDA of $73 million | Metric | Q2 2025 | | :----- | :------ | | Net Revenue | $469 million | | Net Income | $39 million | | Adjusted EBITDA | $73 million | | Diluted EPS | $0.46 | | Adjusted EPS | $0.53 | [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Mark S. Ordan highlighted that strong neonatology patient volumes, stable payor mix, and careful operations management contributed to exceeding Q2 forecasts, leading to an upward revision of the full-year 2025 Adjusted EBITDA outlook - Operating results exceeded forecast due to strong neonatology patient volumes, stable payor mix, and careful operations management[2](index=2&type=chunk) - Full year 2025 Adjusted EBITDA outlook raised from a range of **$220 million to $240 million** to a range of **$245 million to $255 million**[2](index=2&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202025) This section details Pediatrix Medical Group's financial performance for the three and six months ended June 30, 2025, highlighting revenue drivers, expense changes, and profitability metrics [Three Months Ended June 30, 2025](index=1&type=section&id=2.1%20Three%20Months%20Ended%20June%2030%2C%202025) For Q2 2025, net revenue decreased year-over-year primarily due to practice dispositions, but same-unit net revenue grew by 6.4%, driven by higher patient acuity, improved collections, increased administrative fees, and patient volume | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change | | :-------------------------------- | :----------------- | :----------------- | :----- | | Net Revenue | $468.8 | $504.3 | -$35.5 | | Practice salaries and benefits | $323.5 | $357.8 | -$34.3 | | General and administrative expenses | $55.7 | $56.6 | -$0.9 | | Transformational & restructuring expenses | $3.8 | $13.6 | -$9.8 | | Depreciation and amortization | $5.3 | $8.8 | -$3.5 | | Interest expense | $9.1 | $10.3 | -$1.2 | | Net Income (Loss) | $39.3 | -$153.0 | +$192.3 | | Adjusted EBITDA | $73.2 | $57.9 | +$15.3 | | Diluted EPS | $0.46 | -$1.84 | +$2.30 | | Adjusted EPS | $0.53 | $0.34 | +$0.19 | - Net revenue decrease primarily due to non-same unit activity (practice dispositions), partially offset by **6.4% growth in same-unit net revenue**[2](index=2&type=chunk)[4](index=4&type=chunk) - Same-unit revenue growth driven by: **3.5% from net reimbursement-related factors** (higher patient acuity, improved collections, increased administrative fees) and **2.9% from patient volume**[5](index=5&type=chunk)[6](index=6&type=chunk) | Same-Unit Volume Statistics (YoY % Change) | Three Months Ended June 30, 2025 | | :---------------------------------------- | :------------------------------- | | Hospital-based patient services | 3.9% | | Office-based patient services | 1.9% | | Neonatal intensive care unit (NICU) days | 6.0% | - Practice salaries and benefits decreased due to practice disposition activity, partially offset by increases in same-unit clinical compensation costs[6](index=6&type=chunk) - General and administrative expenses declined due to net staffing reductions and decreases in professional services and legal fees, partially offset by incentive compensation increases[7](index=7&type=chunk) - Transformational and restructuring related expenses significantly decreased from **$13.6 million in Q2 2024 to $3.8 million in Q2 2025**[8](index=8&type=chunk) - Prior year (Q2 2024) included a non-cash impairment loss of **$182.0 million** related to goodwill and long-lived assets, and losses on disposal of businesses of **$10.9 million**[9](index=9&type=chunk) [Six Months Ended June 30, 2025](index=3&type=section&id=Operating%20Results%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025) For the first half of 2025, Pediatrix reported a net income of $60.0 million, a significant turnaround from a net loss in the prior year, with Adjusted EBITDA also seeing substantial growth | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change | | :-------------------------------- | :----------------- | :----------------- | :----- | | Net Revenue | $927.2 | $999.4 | -$72.2 | | Net Income (Loss) | $60.0 | -$149.0 | +$209.0 | | Adjusted EBITDA | $122.4 | $95.1 | +$27.3 | | Diluted EPS | $0.70 | -$1.79 | +$2.49 | | Adjusted EPS | $0.87 | $0.54 | +$0.33 | [Financial Position & Cash Flow](index=3&type=section&id=Financial%20Position%20and%20Cash%20Flow%20%E2%80%93%20Continuing%20Operations) This section provides an overview of Pediatrix Medical Group's financial health, including cash position, accounts receivable, debt levels, and cash flow from operations [Financial Position and Cash Flow Highlights](index=3&type=section&id=3.1%20Financial%20Position%20and%20Cash%20Flow%20Highlights) Pediatrix maintained a strong cash position with $224.7 million in cash and cash equivalents at June 30, 2025, generated significantly more cash from continuing operations, and reduced its total debt | Metric | As of June 30, 2025 (Millions) | As of Dec 31, 2024 (Millions) | | :-------------------------------- | :----------------------------- | :---------------------------- | | Cash and cash equivalents | $224.7 | $229.9 | | Net accounts receivable | $239.0 | $259.99 | | Total debt outstanding | $606.0 | $617.664 (Total debt, including finance leases, net) | | Cash from continuing operations (Q2) | $138.1 | $109.3 | | Capital expenditures (Q2) | $4.5 | N/A | - Total debt outstanding at June 30, 2025, was **$606 million**, consisting of **$400 million** in 5.375% Senior Notes due 2030 and **$206 million** in borrowings under its Term A Loan. The Company had no outstanding borrowings under its **$450 million** revolving line of credit[16](index=16&type=chunk) [Updated 2025 Outlook](index=3&type=section&id=Updated%202025%20Outlook) This section presents Pediatrix Medical Group's revised financial projections for the full year 2025, specifically regarding Adjusted EBITDA [2025 Adjusted EBITDA Outlook](index=3&type=section&id=4.1%202025%20Adjusted%20EBITDA%20Outlook) Due to strong second-quarter performance, Pediatrix has raised its full-year 2025 Adjusted EBITDA outlook - Full year 2025 Adjusted EBITDA outlook raised from a range of **$220 million to $240 million** to a new range of **$245 million to $255 million**[2](index=2&type=chunk)[18](index=18&type=chunk) | Metric | Original 2025 Outlook (Millions) | Updated 2025 Outlook (Millions) | | :---------------- | :------------------------------- | :------------------------------ | | Adjusted EBITDA | $220 - $240 | $245 - $255 | [Company Overview](index=4&type=section&id=ABOUT%20PEDIATRIX%20MEDICAL%20GROUP) This section provides a brief description of Pediatrix Medical Group, its core services, and its operational scope within the healthcare industry [Company Description and Services](index=4&type=section&id=5.1%20Company%20Description%20and%20Services) Pediatrix Medical Group is a leading provider of physician services, offering coordinated, compassionate, and clinically excellent care to women, babies, and children, specializing in various subspecialties through approximately 4,400 affiliated clinicians - Pediatrix Medical Group (NYSE: MD) is a leading provider of physician services, focusing on women, babies, and children[21](index=21&type=chunk) - Specialties include obstetrics, maternal-fetal medicine, neonatology, and multiple pediatric subspecialties[21](index=21&type=chunk) - Provides services through approximately **4,400 affiliated physicians** and other clinicians in hospital and office-based practices[21](index=21&type=chunk) - Founded in 1979 as a single neonatology practice, emphasizing high-quality, evidence-based care supported by investments in research, education, quality-improvement, and safety initiatives[21](index=21&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Certain%20statements%20and%20information%20in%20this%20press%20release%20may%20be%20deemed%20to%20contain%20forward-looking%20statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements, emphasizing factors that could cause actual results to differ materially from projections [Disclaimer and Risk Factors](index=4&type=section&id=6.1%20Disclaimer%20and%20Risk%20Factors) This section serves as a disclaimer, indicating that the press release contains forward-looking statements subject to risks and uncertainties, advising readers that actual results may differ materially from projections due to various factors detailed in SEC filings - Press release contains forward-looking statements, which are not guarantees of future performance and are subject to risks and uncertainties[22](index=22&type=chunk) - Important factors that could cause actual results to differ include: impact of practice portfolio management, revenue cycle management transition, surprise billing legislation, economic conditions, healthcare reform, relationships with payors, debt compliance, management transitions, and transformation initiatives[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Tables & Reconciliations](index=6&type=section&id=Pediatrix%20Medical%20Group%2C%20Inc.%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section provides detailed financial statements and reconciliations, including consolidated statements of income, Adjusted EBITDA, Adjusted EPS, balance sheet highlights, and forward-looking Adjusted EBITDA [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=7.1%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This table presents the unaudited consolidated statements of income and comprehensive income for the three and six months ended June 30, 2025, and 2024, detailing net revenue, operating expenses, income/loss from operations, non-operating items, and net income/loss per share | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net revenue | $468,844 | $504,296 | $927,203 | $999,397 | | Total operating expenses | $408,977 | $662,019 | $835,235 | $1,141,228 | | Income (loss) from operations | $59,867 | $(157,723) | $91,968 | $(141,831) | | Net income (loss) | $39,260 | $(153,025) | $59,997 | $(148,990) | | Diluted Net income (loss) per share | $0.46 | $(1.84) | $0.70 | $(1.79) | | Weighted average common shares | 85,529 | 83,332 | 85,517 | 83,074 | [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=7&type=section&id=7.2%20Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This table provides a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, highlighting adjustments for interest, taxes, depreciation, amortization, transformational expenses, impairment losses, and loss on disposal of businesses | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income (loss) | $39,260 | $(153,025) | $59,997 | $(148,990) | | Interest expense | $9,130 | $10,308 | $18,284 | $20,907 | | Income tax provision (benefit) | $15,709 | $(14,703) | $23,062 | $(10,914) | | Depreciation and amortization expense | $5,313 | $8,791 | $10,645 | $19,099 | | Transformational and restructuring related expenses | $3,834 | $13,579 | $10,439 | $22,059 | | Impairment losses | — | $182,034 | — | $182,034 | | Loss on disposal of businesses | — | $10,873 | — | $10,873 | | Adjusted EBITDA | $73,246 | $57,857 | $122,427 | $95,068 | [Reconciliation of Diluted Net Income (Loss) per Share to Adjusted EPS](index=8&type=section&id=7.3%20Reconciliation%20of%20Diluted%20Net%20Income%20%28Loss%29%20per%20Share%20to%20Adjusted%20Income%20per%20Diluted%20Share%20%28%22Adjusted%20EPS%22%29) This table reconciles GAAP diluted net income (loss) per share to non-GAAP Adjusted EPS for the three and six months ended June 30, 2025, and 2024, detailing adjustments for amortization, stock-based compensation, transformational expenses, impairment losses, loss on disposal of businesses, and discrete tax events | Metric (per share data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Diluted net income (loss) per share | $0.46 | $(1.84) | $0.70 | $(1.79) | | Amortization (net of tax) | $0.01 | $0.02 | $0.03 | $0.05 | | Stock-based compensation (net of tax) | $0.02 | $0.02 | $0.04 | $0.04 | | Transformational and restructuring expenses (net of tax) | $0.03 | $0.12 | $0.09 | $0.20 | | Impairment losses (net of tax) | — | $1.92 | — | $1.92 | | Loss on disposal of businesses (net of tax) | — | $0.10 | — | $0.10 | | Net impact from discrete tax events | $0.01 | — | $0.01 | $0.02 | | Adjusted EPS | $0.53 | $0.34 | $0.87 | $0.54 | [Balance Sheet Highlights](index=9&type=section&id=7.4%20Balance%20Sheet%20Highlights) This table provides key balance sheet figures as of June 30, 2025, and December 31, 2024, including assets like cash, investments, and accounts receivable, and liabilities such as accounts payable and total debt, along with total shareholders' equity | Metric (in thousands) | As of June 30, 2025 | As of Dec 31, 2024 | | :-------------------------------- | :------------------ | :----------------- | | Cash and cash equivalents | $224,732 | $229,940 | | Accounts receivable, net | $238,992 | $259,990 | | Total assets | $2,102,100 | $2,152,700 | | Accounts payable and accrued expenses | $303,360 | $398,690 | | Total debt, including finance leases, net | $607,548 | $617,664 | | Total liabilities | $1,268,347 | $1,387,762 | | Total shareholders' equity | $833,753 | $764,938 | [Reconciliation of Net Income to Forward-Looking Adjusted EBITDA](index=10&type=section&id=7.5%20Reconciliation%20of%20Net%20Income%20to%20Forward-Looking%20Adjusted%20EBITDA) This table provides a reconciliation of projected net income to the forward-looking Adjusted EBITDA range for the year ended December 31, 2025, outlining the adjustments for interest expense, income tax provision, depreciation and amortization, and transformational and restructuring related expenses | Metric (in thousands) | Year Ended Dec 31, 2025 (Low) | Year Ended Dec 31, 2025 (High) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Net income | $126,020 | $133,320 | | Interest expense | $36,700 | $36,700 | | Income tax provision | $46,610 | $49,310 | | Depreciation and amortization expense | $22,870 | $22,870 | | Transformational and restructuring related expenses | $12,800 | $12,800 | | Adjusted EBITDA | $245,000 | $255,000 |

Core Points - Midland Exploration Inc. has successfully closed a private placement, raising gross proceeds of $5,058,750 from the sale of 10,650,000 flow-through shares at a price of $0.475 per share [1] - Centerra Gold Inc. has become a strategic investor, acquiring approximately 9.9% of Midland's issued and outstanding common shares [2] - The total gross proceeds from the private placements amount to $6,108,750, with a total of 107,450,577 common shares now issued and outstanding [3] Use of Proceeds - The proceeds from the offering will be allocated to Canadian exploration expenses that qualify as flow-through mining expenditures, to be incurred by December 31, 2026 [4] - The corporation expects to recover refundable tax credits of 22.5% on eligible exploration expenditures related to its gold projects over the next 18 months [5] Investor Rights and Agreements - Midland has entered into an Investor Rights Agreement with Centerra, granting Centerra certain rights to maintain its ownership percentage in future share issuances [6] Regulatory Compliance - The offering is subject to final approval from the TSX Venture Exchange, and all securities issued are subject to a hold period of four months plus one day from the closing date [7]

Core Points - Midland Exploration Inc. has arranged a non-brokered private placement for gross proceeds of $5,058,750 from the sale of 10,650,000 flow-through shares at a price of $0.475 per share [1] - Concurrently, Midland plans to complete an additional private placement for approximately $1,050,000 from the sale of 3,181,818 common shares at a price of $0.33 per share [2] - Centerra Gold Inc. is expected to participate as a strategic investor, acquiring 9.9% of Midland's issued and outstanding common shares upon closing [3] Financial Details - The gross proceeds from the flow-through shares will be used for Canadian exploration expenses that qualify as flow-through mining expenditures, to be incurred by December 31, 2026 [4] - Refundable tax credits of 22.5% are anticipated on qualifying expenditures incurred by Midland on its gold projects [5] Offering Conditions - The offering is expected to close on or about July 25, 2025, subject to TSX Venture Exchange approval and execution of an Investor Rights Agreement with Centerra [6] - Under the Investor Rights Agreement, Centerra will have rights to participate in future share issuances to maintain its interest in Midland [6] Company Background - Midland targets mineral potential in Quebec, focusing on discovering new world-class deposits of gold and critical metals [8] - The company collaborates with reputable partners such as BHP Canada Inc., Rio Tinto Exploration Canada Inc., and Agnico Eagle Mines Limited [8]