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]

Core Viewpoint - Midland Exploration Inc. has initiated a prospecting campaign in the Didgeridoo area of its wholly owned Willbob-Kan gold project, which is considered highly favorable for gold exploration [3][4]. Group 1: Prospecting Campaign - The prospecting campaign will take place in July 2025 in the Didgeridoo claim bloc, which has not been worked since follow-up activities on discoveries made in July 2019 [4]. - The Didgeridoo Zone is located approximately 15 km southeast of the main gold showings in the Kan area, which is fully owned by Midland [6]. Group 2: Historical Results - Channel sampling in the Didgeridoo Zone in 2019 yielded significant gold results, including an interval grading 2.30 g/t Au over 8.95 meters, with a higher grade of 3.56 g/t Au over 3.15 meters [5][7]. - Other notable results from the Didgeridoo Zone include channel samples grading up to 9.8 g/t Au over 13.2 meters and 8.71 g/t Au over 7.0 meters from different showings [8]. Group 3: Geological Features - The Didgeridoo Zone features a 5 to 10-meter-wide shear zone with abundant fault-filling quartz-calcite veins, observed in gabbros and quartz diorites [6]. - Visible gold occurrences have been noted within the zone, which has been stripped over approximately 100 meters in length and remains open at both ends [6]. Group 4: Quality Control Measures - A strict quality assurance and quality control (QA/QC) program was implemented during the last prospecting program, including the insertion of mineralized standards and blank samples for every batch of 20 samples [10].

Core Viewpoint - Midland Exploration Inc. is advancing its summer 2025 exploration program in collaboration with SOQUEM Inc., focusing on the Labrador Trough in Nunavik with a joint budget of $1 million, continuing efforts since 2021 [2][21]. Exploration Focus - The exploration will target the central part of the Labrador Trough, particularly the Nachicapau and Dunphy South projects, which are considered prospective for economic copper mineralization [3][9]. - Fieldwork is set to commence on June 23, 2025, including rock and soil geochemical sampling and an OreVision® spectral induced polarization survey [3][7]. Project Highlights - The Dunphy South project has shown promising results with copper grades up to 3.73% Cu discovered in 2024, and further sampling campaigns are planned to assess the extent of mineralization [7][10]. - The Nachicapau project has revealed significant mineralization with grades reaching 39.90% Cu and 308.00 g/t Ag in grab samples, indicating a rich hydrothermal system [16][13]. Future Plans - In 2025, Midland and SOQUEM will focus on defining the extent of copper showings in the Dunphy South project and continue exploration in the Nachicapau project to identify new mineralized areas [9][12]. - An OreVision® survey covering 40 km is scheduled for July 2025 to identify deeper targets that may indicate economic mineralization [17][18]. Strategic Alliance - The Strategic Alliance between Midland and SOQUEM aims to explore the mineral potential of the Labrador Trough, with a commitment of up to $5 million over four years, including $2 million in the first two years [21][22]. - The collaboration is designed to leverage both companies' expertise in exploring the underexplored regions of Quebec [21][22].

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Core Viewpoint - Midland Exploration Inc. has initiated a significant copper-nickel exploration program in Nunavik, following the discovery of new mineralized showings from 2020 to 2024 [1][5]. Group 1: Exploration Program Details - The 2025 exploration program is part of a strategic alliance with BHP Group Limited, focusing on newly identified crustal-scale structures favorable for copper-nickel mineralization [2][3]. - The program will include an airborne HeliTEM® time-domain electromagnetic survey, covering approximately 6,600 line-kilometers, set to begin in June 2025 [8][15]. Group 2: Recent Discoveries and Surveys - New Cu-Ni-Co showings were identified from 2022 to 2024, with significant findings including the Target 22 showing, which returned grades of 0.81% Ni, 0.22% Cu, and 0.19% Co [5][6]. - A lake-bottom sediment survey conducted in July 2023 collected 1,383 samples, detecting several copper-nickel anomalies, leading to the discovery of a new mineralized intrusion [7][15]. Group 3: Historical Context and Methodology - The exploration targets mafic troctolite/olivine gabbro intrusive rocks, similar to those at Voisey's Bay, which have seen less historical exploration in Quebec [5]. - Regional magnetotelluric (MT) surveys completed in 2022 identified a major crustal-scale structure, interpreted as a high-priority target for copper-nickel exploration [6][15].

Core Viewpoint - Pediatrix Medical Group, Inc. is well-positioned for growth due to its focus on high-quality, evidence-based healthcare, achieving a year-to-date gain of 5.6% compared to a 6.4% decline in the industry average [1] Company Overview - Pediatrix Medical has a market capitalization of $1.2 billion and is based in Sunrise, FL, providing various physician services in the U.S. and Puerto Rico, including neonatal care for premature or complicated births [2] - The company's forward P/E ratio stands at 8.72, which is lower than the industry average of 13.87 [2] Financial Performance and Estimates - The Zacks Consensus Estimate for Pediatrix Medical's 2025 earnings is $1.56 per share, reflecting a 3.3% year-over-year increase, with revenue estimates at $1.9 billion [3] - The company has consistently exceeded earnings estimates over the past four quarters, with an average surprise of 24.6% [3] Growth Drivers - Growth is supported by strong same-unit revenue growth of 6.2% year-over-year in Q1 2025, improved payor mix, and increased hospital contract administrative fees [4] - Recent agreements to take over operations of multiple NICU, MFM, and OB hospitals will enhance its hospital system portfolio [5] Operating Expenses and Projections - The adjusted EBITDA projection for 2025 has been increased to a range of $220 million to $240 million, while total operating expenses decreased by 11% year-over-year to $426.3 million in Q1 2025 [6] - The model suggests operating expenses could decline by nearly 17.8% year-over-year in 2025 due to reduced practice salaries and other costs [6] Share Buyback Activity - In Q1 2025, the company repurchased common shares worth $1.6 million, with $1.3 million remaining authorized for repurchase as of March 31, 2025 [7] Investment Outlook - Pediatrix Medical is viewed as a compelling investment opportunity, supported by consistent earnings surprises, strategic acquisitions, and a focus on specialized care, making it suitable for investors seeking value and stability in the healthcare sector [10]