Financial Data and Key Metrics Changes - The second quarter operating results exceeded expectations, driven by same unit revenue growth and operating efficiencies [4] - Adjusted EBITDA for the full year 2024 is maintained at between $200 million and $220 million [6][10] - Operating cash flow generated in the second quarter was $109 million, compared to $93 million in the prior year [13] - Net debt position declined to roughly $600 million, maintaining leverage at or below 3x based on adjusted EBITDA outlook [14] Business Line Data and Key Metrics Changes - NICU days declined slightly, while hospital-based volume growth was driven by subspecialties such as newborn nursery and pediatric intensive care [4] - Maternal fetal medicine volume growth was strong, but pediatric urgent care experienced volume declines [5] - The company plans to exit almost all office-based practices except maternal fetal medicine during 2024, which is expected to generate approximately $30 million in annualized adjusted EBITDA [6][8] Market Data and Key Metrics Changes - The revenue profile post-restructuring will consist of approximately 80% hospital-based services and 20% office space [9] - The payer mix improved, with a greater mix of non-governmental payers versus Medicaid, although the $3 million settlement did not significantly impact this improvement [18] Company Strategy and Development Direction - The company is undergoing a broad-based portfolio restructuring plan aimed at focusing on service lines with solid financial underpinnings [6][10] - The restructuring includes exiting a significant number of office-based practices, which is expected to enhance operational efficiencies and margin profiles [6][8] - The company remains committed to investments in clinical research and education, foundational to its mission [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating plans in motion, which are expected to enable the company to continue its mission effectively [12] - The company anticipates that the full impact of restructuring activities will be realized in 2025, with consistent performance expected in the third and fourth quarters of 2024 [22][27] - Management views the payer contracting landscape as stable, with normal course renewals continuing [19] Other Important Information - Kasandra Rossi has been appointed as Executive Vice President, Chief Financial Officer, and Treasurer effective October 1 [11] - The company recorded long-lived asset impairments and losses on disposals related to the portfolio restructuring, all of which were non-cash expenses [13] Q&A Session Summary Question: Restructuring costs increase - Management confirmed that restructuring costs have increased to about $40 million due to the addition of more practices to be exited [16] Question: Impact of office-based practice exits - The bulk of office exits are slated for the third and fourth quarters, with the full impact expected in 2025 [22] Question: Pricing growth momentum - Management indicated that payer mix played a slightly greater role in overall same unit pricing compared to contract and admin fees [30] Question: Growth perspective post-restructuring - The company is focused on stabilizing margins and moving towards growth, particularly in 2025, with unique opportunities in the 80:20 mix of services [34] Question: Discussions with managed Medicaid - Medicaid managed care represents a significant portion of the governmental mix, largely classified as pass-through from state Medicaid schedules [37]

Core Viewpoint - Pediatrix Medical Group reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, but down from $0.39 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2]. Financial Performance - The company posted revenues of $504.3 million for the quarter ended June 2024, which was a 0.24% miss compared to the Zacks Consensus Estimate, and an increase from $500.58 million year-over-year [2]. - Over the last four quarters, Pediatrix Medical Group has surpassed consensus EPS estimates two times, but has not beaten revenue estimates during the same period [2]. Stock Performance - Shares of Pediatrix Medical Group have declined approximately 18.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [3]. - The current Zacks Rank for the stock is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $508.49 million, and for the current fiscal year, it is $1.22 on revenues of $2.01 billion [7]. - The trend of estimate revisions for Pediatrix Medical Group is mixed, which could change following the recent earnings report [6]. Industry Context - The Medical Services industry, to which Pediatrix Medical Group belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8].

Pediatrix Medical Group, Inc. (MD) reported first-quarter 2024 adjusted earnings per share (EPS) of 20 cents, which outpaced the Zacks Consensus Estimate by 11.1%.  However, the bottom line declined 13% year over year.Net revenues inched up 0.8% year over year to $495.1 million on the back of growth in same-unit revenues. Yet, the top line fell short of the consensus mark by a whisker.The quarterly results gained on the back of higher patient volumes and improved hospital contract administrative fees. Howev ...

Financial Data and Key Metrics Changes - The company reaffirmed its full-year 2024 outlook for adjusted EBITDA between $200 million and $220 million, indicating a focus on stabilizing margins compared to 2023 [3] - In Q1 2024, the company reported a cash flow usage of $123 million, compared to $101 million in Q1 2023, largely due to accounts receivable [62] Business Line Data and Key Metrics Changes - Maternal-fetal medicine volumes increased by approximately 3% in Q1 2024, while primary and urgent care volumes declined [16][57] - NICU days were up about 2.5% in Q1 2024, indicating stable demand in hospital-based services [26][57] Market Data and Key Metrics Changes - The company experienced a decline in non-same unit revenue for the quarter, down about $6.8 million, primarily due to ongoing disposition activities [28] - The accounts receivable DSO rose roughly a day and a half from the end of 2023, reflecting slight impacts from a healthcare incident and the RCM transition process [40] Company Strategy and Development Direction - The company has made a strategic decision to exit its primary and urgent care clinic platform, which includes about two dozen clinics in Florida, Texas, and Colorado, to focus on margin stabilization [6][39] - The company is undergoing an accelerated portfolio restructuring plan to exit underperforming office-based practices, aiming to improve profitability [39][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the restructuring activities will enhance operational efficiency and support for practices, with significant impacts expected in the second half of the year [60][65] - The company anticipates that the financial impact of restructuring will be felt more in the second half of 2024, with Q2 expected to contribute 24% to 25% of the full-year adjusted EBITDA outlook [65][68] Other Important Information - The transition to a hybrid RCM model is progressing well, with a contract finalized with Guidehouse, and about one-third of affiliated practices transitioned as of now [13][64] - The company is focused on maintaining G&A expenses at levels comparable to or lower than 2023 as a percentage of revenue, despite internal additions to the RCM team [59] Q&A Session Summary Question: Outlook on volume and rate side of the business - Management indicated that the financial impacts from restructuring will affect results in the second half of the year, but it is premature to comment on 2025 growth [14][39] Question: Size of revenue impact from practice dispositions - Management confirmed that the practices being exited have negative EBITDA contributions, and the revenue impact will be tracked as the year progresses [52][23] Question: Growth algorithm for pediatrics post-restructuring - The focus will be on core services, with recent acquisitions in maternal-fetal medicine indicating a strategy for both organic and inorganic growth [32][39]

Pediatrix Medical Group (MD) reported $495.1 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.8%. EPS of $0.20 for the same period compares to $0.23 a year ago.The reported revenue represents a surprise of -0.23% over the Zacks Consensus Estimate of $496.25 million. With the consensus EPS estimate being $0.18, the EPS surprise was +11.11%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (State or other jurisdiction of Incorporation or organization) 1301 Concord Terrace Sunrise, Florida 33323 (Address of principal executive offices) (Zip Code) Florida 26-3667538 (I.R.S. Employer Identification No.) (954) 384-0175 (Registrant's telephone number, including area code) OR ☐ TRANSI ...

FOR MORE INFORMATION: Charles Lynch Senior Vice President, Finance and Strategy 954-384-0175, x 5692 charles.lynch@pediatrix.com FOR IMMEDIATE RELEASE Pediatrix Medical Group Reports First Quarter Results FORT LAUDERDALE, Fla., May 7, 2024 - Pediatrix Medical Group, Inc. (NYSE: MD), the nation's leading provider of highly specialized health care for women, children and babies, today reported earnings of $0.05 per share for the three months ended March 31, 2024. On a non-GAAP basis, Pediatrix reported Adjust ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period from to Commission file number 001-12111 Pediatrix Medical Group, Inc. (Exact name of registrant as specified in its charter) FLORIDA 26-3667538 (State or other jurisdiction (I.R.S. Employer of ...

Financial Data and Key Metrics Changes - The adjusted EBITDA for the quarter was approximately $15 million below internal forecasts, primarily due to practice-level operating expenses and soft patient volumes [3][34] - The full-year adjusted EBITDA outlook has been updated to a range of $200 million to $210 million, reflecting expectations for similar contributions in the fourth quarter as reported in the third quarter [4] Business Line Data and Key Metrics Changes - Year-over-year expense growth at the practice level was evenly split between salaries and incentive compensation, with underlying salary growth accelerating by roughly 100 basis points compared to the second quarter [54] Market Data and Key Metrics Changes - Same-unit pricing growth reflected year-over-year recovery in revenue collection rates and payor mix against a challenging quarter in 2022 [27] Company Strategy and Development Direction - The company plans to make structural changes in ambulatory practices to enhance earnings potential, addressing variances in financial performance across individual practices [22] - A decision has been made to transition to a new vendor for revenue cycle management services, aiming to combine internal teams with external efficiencies [24][60] - The focus will be on capital allocation priorities to build on core services, positioning the company favorably in the physician service industry [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing results due to soft patient volumes and persistent cost inflation, emphasizing the belief that current operating results do not reflect the company's full earnings potential [34] - The company is committed to addressing cost trends and making necessary changes to service line footprints to stabilize gross margins [36] Other Important Information - The company generated over $81 million in operating cash flow and repaid $40 million in revolver borrowings during the third quarter, ending the period with $21 million in cash [28] Q&A Session Summary Question: How are you addressing practice-level expenses? - Management is exploring levers such as adjusting clinician wage rates and seeking subsidies from hospitals to manage practice-level expenses [29][44] Question: What are the learnings from the previous RCM transition? - The management highlighted the importance of a hybrid model, combining internal teams for front-end functions with external vendors for back-end efficiencies [60] Question: What drove the headwind in non-same-store revenue? - The company noted that the review of the portfolio and footprint contributed to the net negative in non-same-unit revenue [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 1301 Concord Terrace Sunrise, Florida 33323 (Address of principal executive offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-12111 Pediatrix Medical ...