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 June 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 Group, Inc. (Exact name of registrant as specified in its charter) Florida 26-3667538 (State or other ...

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, 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 Group, Inc. (Exact name of registrant as specified in its charter) Florida 26-3667538 (State or othe ...

Pediatrix Medical Group, Inc. (NYSE:MD) Q4 2022 Earnings Conference Call February 17, 2023 9:00 AM ET Company Participants Charles Lynch ??? Senior Vice President, Finance and Strategy Mark Ordan ??? Executive Chair Jim Swift ??? Chief Executive Officer Marc Richards ??? Chief Financial Officer Conference Call Participants Jack Senft ??? William Blair AJ Rice ??? Credit Suisse Pito Chickering ??? Deutsche Bank Whit Mayo ??? SVB Securities Kevin Fischbeck ??? Bank of America Rishi Parekh ??? JPMorgan Tao Qi ...

Debt and Financial Capacity - Total indebtedness as of December 31, 2022, was $644.6 million, with $400.0 million at fixed interest rates and $244.6 million at variable rates[219] - The company has $446.0 million of additional borrowing capacity under its revolving line of credit, which is subject to a variable interest rate[219] - As of December 31, 2022, the company had an outstanding principal balance of $244.6 million on its Amended Credit Agreement, with a 1% change in interest rates potentially impacting income before taxes by $2.4 million annually[364] Revenue and Reimbursement Risks - A significant portion of net revenue is derived from reimbursements from third-party payors, with potential risks of uncollectible and delayed reimbursements impacting financial condition[215] - The company may face challenges in collecting reimbursements due to administrative issues and potential audits by payors, affecting revenue and cash flows[217] - Adverse economic conditions could impact the timeliness and amounts received from third-party and government payors, affecting short-term liquidity needs[218] Legal and Compliance Risks - The company faces litigation risks, including potential claims for breach of contract and negligence, which could adversely affect business and financial results[214] - The company may incur significant legal fees to enforce non-competition covenants with affiliated physicians, which could affect business operations[227] - The company is subject to litigation and sanctions for non-compliance with privacy laws, which could result in significant fines and reputational harm[238] - The company may incur significant costs due to compliance with new privacy legislation and regulations, which could affect its financial condition and business practices[237] Competition and Market Position - The healthcare industry is highly competitive, with ongoing consolidation that may strengthen competitors and impact the company's ability to secure contracts with hospitals[241] - The company may face increased competition from healthcare-focused private equity firms and other healthcare service providers, which could adversely affect its market position[242] Operational and Technological Challenges - The healthcare professional shortage is impacting recruitment efforts, leading to increased competition and potential higher compensation expenses[225] - The implementation of new technology and processes may disrupt operations and affect financial reporting and cash flows[232] - The company is investing significantly in cloud-based ERP solutions, which may require additional human and financial resources, potentially leading to delays and increased costs[232] - The company faces risks if hospitals restrict the use of its information management systems, which could disrupt billing, reimbursement, and research operations[233] Cybersecurity and Privacy Concerns - Cybersecurity risks have increased, with potential breaches leading to financial loss and damage to reputation[230] - Compliance with federal and state privacy laws, including HIPAA, may increase costs and limit the company's ability to collect and use personal information, potentially impacting business operations[234] - The company must navigate complex and diverse standards related to personal information, which could impose significant costs and limit service offerings[236] - If estimated reserves for professional liability losses are inadequate, the company may need to increase reserves, impacting net earnings[213]

Pediatrix Medical Group, Inc. (NYSE:MD) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET Corporate Participants Charles Lynch - Investor Relations Mark Ordan - Chief Executive Officer Marc Richards - Chief Financial Officer James Swift - Chief Operating Officer Conference Call Participants Pito Chickering - Deutsche Bank Whit Mayo - SVB Securities Tao Qiu - Stifel Kevin Fischbeck - Bank of America Brian Tanquilut - Jefferies AJ Rice - Credit Suisse Operator Ladies and gentlemen, thank you for st ...

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 September 30, 2022 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 of Incorporation or organization) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Pediatrix Medical Group, Inc. (NYSE:MD) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Corporate Participants Charles Lynch - Investor Relations Mark Ordan - Chief Executive Officer Marc Richards - Chief Financial Officer Conference Call Participants Tao Qiu - Stifel Brian Tanquilut - Jefferies Kevin Fischbeck - Bank of America Pito Chickering - Deutsche Bank Whit Mayo - SVB Securities Ryan Daniels - William Blair AJ Rice - Credit Suisse Operator Ladies and gentlemen, thank you for standing by, ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Financial statements show decreased cash and assets from debt refinancing, and lower net income due to debt extinguishment - On July 1, 2022, the company changed its corporate name from "Mednax, Inc." to **Pediatrix Medical Group, Inc.** to reflect its core focus on care for women, babies, and children[19](index=19&type=chunk) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$2.37 billion** from **$2.72 billion**, driven by reduced cash for debt refinancing Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14,088 | $387,391 | | Total current assets | $459,301 | $840,564 | | Goodwill | $1,532,092 | $1,505,430 | | Total assets | $2,369,616 | $2,722,546 | | **Liabilities & Equity** | | | | Total current liabilities | $329,415 | $427,366 | | Line of credit | $153,500 | $0 | | Long-term debt and finance lease liabilities, net | $639,754 | $1,002,258 | | Total liabilities | $1,524,186 | $1,825,854 | | Total equity | $845,430 | $896,692 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net revenue increased in Q2 and H1 2022, but net income sharply decreased due to a **$57.0 million** debt extinguishment loss Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $486,033 | $472,959 | $968,262 | $919,712 | | Income from operations | $50,155 | $50,016 | $89,263 | $76,120 | | Loss on early extinguishment of debt | $0 | $0 | $(57,016) | $(14,532) | | Net income attributable to Pediatrix | $27,136 | $35,011 | $5,948 | $52,653 | | Diluted EPS | $0.32 | $0.41 | $0.07 | $0.61 | [Consolidated Statements of Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity decreased to **$845.4 million** from **$896.7 million**, primarily due to common stock repurchases - The company repurchased **3.3 million shares** of its common stock for **$64.4 million** during the second quarter of 2022[13](index=13&type=chunk) - Retained deficit improved from **$(155.4) million** at year-end 2021 to **$(149.5) million** at June 30, 2022, reflecting the net income generated during the period[8](index=8&type=chunk)[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$15.1 million**, with a **$373.3 million** net decrease in cash due to debt redemption Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,075) | $(28,601) | | Net cash (used in) provided by investing activities | $(39,625) | $3,725 | | Net cash used in financing activities | $(318,603) | $(760,810) | | **Net decrease in cash and cash equivalents** | **$(373,303)** | **$(785,686)** | | Cash and cash equivalents at end of period | $14,088 | $338,157 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies and financial activities, including **$31.3 million** in acquisitions and a major debt restructuring - The company completed the acquisition of one multi-location pediatric urgent care practice and one pediatric gastroenterology and gynecology practice for total consideration of **$31.3 million**, recording **$26.7 million** in goodwill[36](index=36&type=chunk) - In February 2022, the company issued **$400.0 million** of 5.375% senior notes due 2030 and amended its credit agreement to include a **$450 million** revolving credit line and a new **$250 million** term loan, with proceeds used to redeem the **$1.0 billion** 6.25% senior notes due 2027[42](index=42&type=chunk)[44](index=44&type=chunk) - During the six months ended June 30, 2022, the company repurchased **3.3 million shares** of its common stock for **$65.6 million**[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth from acquisitions, same-unit declines, and debt refinancing impacts - The company's operating results have not been materially impacted by COVID-19 or its variants in 2021 or thus far in 2022, though uncertainty remains[66](index=66&type=chunk) - The company is monitoring the impact of the "No Surprises Act," effective January 1, 2022, which could limit amounts recovered for out-of-network services and affect payor contract negotiations[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) Reconciliation to Adjusted EBITDA (in thousands) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Income from continuing operations | $30,701 | $30,533 | $9,760 | $35,885 | | **Adjusted EBITDA from continuing operations** | **$65,555** | **$65,533** | **$116,237** | **$111,016** | Reconciliation to Adjusted EPS | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS from continuing operations | $0.36 | $0.36 | $0.11 | $0.42 | | **Adjusted Diluted EPS from continuing operations** | **$0.47** | **$0.41** | **$0.79** | **$0.65** | [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net revenue increased in Q2 and H1 2022 from acquisitions, despite same-unit declines, with operating income improving due to lower G&A - **Q2 2022 vs Q2 2021:** - Net revenue increased by **$13.0 million (2.8%)**, primarily from acquisitions - Same-unit net revenue decreased by **$6.1 million (1.3%)**, driven by a **$8.6 million** decrease from reimbursement factors, partially offset by a **$2.5 million** increase from volume[88](index=88&type=chunk) - **H1 2022 vs H1 2021:** - Net revenue increased by **$48.6 million (5.3%)**, primarily from acquisitions - Same-unit net revenue decreased by **$2.8 million (0.3%)**, driven by a **$20.4 million** decrease from reimbursement factors, partially offset by a **$17.6 million** increase from volume[103](index=103&type=chunk)[104](index=104&type=chunk) - General and administrative expenses decreased by **$9.8 million** in Q2 and **$15.0 million** in H1 2022 compared to the prior year, primarily due to lower professional fees and net savings in revenue cycle management expenses[91](index=91&type=chunk)[107](index=107&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity decreased significantly due to debt refinancing, including new notes and credit agreements, resulting in a **$57.0 million** loss - Working capital decreased by **$283.3 million** from Dec 31, 2021, to **$129.9 million** at June 30, 2022, primarily due to the use of cash for the redemption of the 2027 Notes[118](index=118&type=chunk) - Days sales outstanding (DSO) for continuing operations increased to **58.2 days** at June 30, 2022, from **55.2 days** at December 31, 2021, due to the timing of cash collections[122](index=122&type=chunk) - At June 30, 2022, the company had an outstanding principal balance of **$400.4 million** on its Amended Credit Agreement (**$153.5 million** revolver, **$246.9 million** term loan) and **$400.0 million** on its 2030 Notes[131](index=131&type=chunk)[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its **$400.4 million** variable-rate debt - The company is exposed to interest rate risk on its Amended Credit Agreement, which had a **$400.4 million** balance at June 30, 2022[139](index=139&type=chunk) - A **1%** change in interest rates would result in an approximate annual impact of **$4.0 million** to income before taxes[139](index=139&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2022, with no material changes in internal control - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2022[141](index=141&type=chunk) - No changes occurred during Q2 2022 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[142](index=142&type=chunk) [PART II - OTHER INFORMATION](index=23&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company faces ordinary course legal actions, primarily medical malpractice claims, with risk largely self-insured - The company faces legal actions and government inquiries in the ordinary course of business, with most claims related to medical malpractice[145](index=145&type=chunk)[146](index=146&type=chunk) - A significant portion of professional liability risk is self-insured through a wholly owned captive insurance subsidiary[147](index=147&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the company's 2021 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2021 Form 10-K[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company repurchased **3.3 million shares** of common stock for approximately **$64.4 million** Share Repurchases for Q2 2022 | Period | Total Number Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 – April 30, 2022 | — | $ — | | May 1 – May 31, 2022 | 637,000 | $19.04 | | June 1 – June 30, 2022 | 2,637,802 | $19.79 | | **Total** | **3,274,802** | **$19.65** | [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) A new employment agreement for EVP and COO James D. Swift, M.D. was executed, detailing salary, bonus, and severance terms - A new employment agreement for EVP and COO James D. Swift, M.D. was executed on August 1, 2022[153](index=153&type=chunk) - Key terms include a **$450,000** base salary, a **100%** target bonus, and specified severance benefits[153](index=153&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amended articles, employment agreements, and certifications [Signatures](index=26&type=section&id=SIGNATURES)

MEDNAX, Inc. (NYSE:MD) Q1 2022 Earnings Conference Call April 28, 2022 9:00 AM ET Company Participants Charles Lynch - SVP, Finance, Strategy & IR Mark Ordan - CEO & Director Marc Richards - EVP & CFO James Swift - Chief Development Officer Conference Call Participants Tao Qiu - Stifel, Nicolaus & Company A.J. Rice - Cr??dit Suisse Nicholas Spiekhout - William Blair & Company Whit Mayo - SVB Leerink Kevin Fischbeck - Bank of America Merrill Lynch Operator Ladies and gentlemen, thank you for standing by, and ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Mednax reported a Q1 2022 net loss of **$21.2 million** driven by a **$57.0 million** debt extinguishment loss, despite **7.9%** revenue growth and significant balance sheet shifts [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$2.34 billion** as of March 31, 2022, primarily due to a significant reduction in cash for debt redemption, with total liabilities also decreasing Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,179 | $387,391 | | Total current assets | $439,777 | $840,564 | | Goodwill | $1,528,694 | $1,505,430 | | Total assets | $2,340,976 | $2,722,546 | | **Liabilities & Equity** | | | | Total current liabilities | $269,727 | $427,366 | | Long-term debt and finance lease liabilities, net | $655,930 | $1,002,258 | | Total liabilities | $1,463,900 | $1,825,854 | | Total equity | $877,076 | $896,692 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net revenue increased **7.9%** to **$482.2 million** in Q1 2022, but a **$57.0 million** debt extinguishment loss led to a **$20.9 million** loss from continuing operations Consolidated Statements of Income (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net revenue | $482,229 | $446,753 | | Income from operations | $39,108 | $26,104 | | Loss on early extinguishment of debt | $(57,016) | $(14,532) | | (Loss) income from continuing operations | $(20,945) | $5,344 | | Net (loss) income attributable to Mednax, Inc. | $(21,188) | $17,642 | | Diluted (Loss) income per share from continuing operations | $(0.25) | $0.06 | | Diluted Net (loss) income per share | $(0.25) | $0.21 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$97.5 million**, with financing activities using **$256.5 million** primarily for debt redemption, resulting in a **$380.2 million** net cash decrease Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(97,482) | $(82,188) | | Net cash used in investing activities | $(26,273) | $(10,364) | | Net cash used in financing activities | $(256,457) | $(761,661) | | **Net decrease in cash and cash equivalents** | **$(380,212)** | **$(854,213)** | | Cash and cash equivalents at end of period | $7,179 | $269,630 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail normalized COVID-19 impact, **$10.4 million** in CARES Act funds, a major debt restructuring, and a **$26.0 million** pediatric urgent care acquisition - The company's operating results were not materially impacted by COVID-19 in 2021 or Q1 2022, though uncertainty remains. Affiliated practices received **$10.4 million** in CARES Act relief funds during Q1 2022[25](index=25&type=chunk)[26](index=26&type=chunk) Net Revenue by Category (in thousands) | Category | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net patient service revenue | $406,035 | $381,063 | | Hospital contract administrative fees | $63,526 | $57,066 | | Other revenue | $12,668 | $8,624 | | **Total Net Revenue** | **$482,229** | **$446,753** | - In Q1 2022, the company acquired one pediatric urgent care practice for **$26.0 million**, recording **$23.3 million** in goodwill[39](index=39&type=chunk) - On February 11, 2022, the company issued **$400.0 million** of **5.375%** senior notes due 2030 and entered into a new credit agreement with a **$450 million** revolving credit line and a **$250 million** term loan. Proceeds were used to redeem the **$1.0 billion** **6.25%** senior notes due 2027[44](index=44&type=chunk)[46](index=46&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **7.9%** revenue growth, improved operating income, and the **$57.0 million** debt extinguishment loss, highlighting non-GAAP Adjusted EBITDA growth and sufficient liquidity post-refinancing [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net revenue increased **7.9%** to **$482.2 million** in Q1 2022, with operating income growing **49.8%** to **$39.1 million**, though non-operating expenses rose due to debt extinguishment - Same-unit net revenue increased by **$5.6 million** (**1.3%**), driven by a **$14.2 million** (**3.2%**) increase from patient service volumes, partially offset by an **$8.6 million** (**1.9%**) decrease from net reimbursement-related factors[88](index=88&type=chunk) - General and administrative expenses decreased by **$5.2 million** to **$61.3 million**, primarily due to lower professional fees and savings in revenue cycle management expenses[91](index=91&type=chunk) - The company reported a loss from continuing operations of **$20.9 million**, compared to income of **$5.4 million** in Q1 2021, driven by the **$57.0 million** loss on early debt extinguishment[97](index=97&type=chunk)[95](index=95&type=chunk) [Non-GAAP Measures](index=15&type=section&id=Non-GAAP%20Measures) Non-GAAP Adjusted EBITDA from continuing operations increased to **$50.7 million** in Q1 2022, with Adjusted EPS rising to **$0.33**, providing a clearer view of underlying performance Reconciliation of Non-GAAP Measures (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Adjusted EBITDA** | | | | (Loss) income from continuing operations | $(20,941) | $5,352 | | Adjustments (Interest, Tax, D&A, etc.) | $71,623 | $39,789 | | **Adjusted EBITDA from continuing operations** | **$50,682** | **$45,483** | | **Adjusted EPS** | | | | Diluted (Loss) income from cont. ops. per share | $(0.25) | $0.06 | | Adjustments (Amortization, Stock Comp, etc.) | $0.58 | $0.18 | | **Adjusted Diluted EPS from continuing operations** | **$0.33** | **$0.24** | [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company held **$7.2 million** in cash, having completed a major debt refinancing to issue **$400 million** in new notes and secure a new credit facility - Net cash used in financing activities of **$256.5 million** primarily consisted of the **$1.05 billion** redemption of 2027 Notes, offset by proceeds from **$400.0 million** in new 2030 Notes, a **$250.0 million** term loan, and **$149.0 million** in net borrowings on the revolving credit line[107](index=107&type=chunk) - The company recognized a loss on early extinguishment of debt of **$57.0 million** in Q1 2022 related to the debt refinancing[113](index=113&type=chunk) - Management believes that funds from operations, cash on hand, and availability under the Amended Credit Agreement are sufficient to meet obligations for at least the next 12 months[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its **$399.0 million** variable-rate debt, where a **1%** change impacts annual income by **$4.0 million** - The company is exposed to interest rate risk on its **$399.0 million** Amended Credit Agreement, which has a variable rate based on SOFR[122](index=122&type=chunk) - A hypothetical **1%** change in interest rates would result in an approximate **$4.0 million** annual impact to income before taxes[122](index=122&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2022[124](index=124&type=chunk) - No material changes in internal control over financial reporting occurred during the first quarter of 2022[125](index=125&type=chunk) [PART II - OTHER INFORMATION](index=21&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, primarily medical malpractice claims, which management does not expect to materially impact financial condition - The company is subject to audits, inquiries, and investigations from government authorities, as well as pending and threatened legal actions, primarily medical malpractice claims[128](index=128&type=chunk)[129](index=129&type=chunk) - The company self-insures a significant portion of its professional liability risk through a wholly owned captive insurance subsidiary[130](index=130&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the company's Annual Report on Form 10-K for December 31, 2021 - No material changes to risk factors were reported since the 2021 Form 10-K filing[131](index=131&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, the company repurchased **49,707** common shares for **$1.2 million** to satisfy tax withholding obligations related to restricted stock vesting - In Q1 2022, the company repurchased **49,707** shares of common stock for an aggregate of **$1.2 million**[132](index=132&type=chunk)[133](index=133&type=chunk) - The repurchases were conducted to satisfy minimum statutory withholding obligations in connection with the vesting of restricted stock[132](index=132&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including documents for new senior notes, the amended credit agreement, and Sarbanes-Oxley certifications - Key exhibits filed include the form of the **5.375%** Senior Notes due 2030, the amended and restated credit agreement, and Sarbanes-Oxley certifications[135](index=135&type=chunk)