pediatrix(MD) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenue for the three months ended March 31, 2025, was $458.4 million, a decrease of$36.7 million, or 7.4%, compared to $495.1 million for the same period in 2024[73] - Same-unit net revenue increased by$26.1 million, or 6.2%, driven by a $19.4 million increase from net reimbursement-related factors and a$6.7 million increase related to patient service volumes[73] - Adjusted EBITDA for the three months ended March 31, 2025, was $49.2 million, compared to$37.2 million for the same period in 2024, reflecting an increase of $11.9 million[72] - Adjusted EPS for the three months ended March 31, 2025, was$0.33, compared to $0.20 for the same period in 2024, representing a 65$16.2 million, or 102.0%, to $32.1 million for the three months ended March 31, 2025, compared to$15.9 million for the same period in 2024[79] - Operating margin improved to 8.4% for the three months ended March 31, 2025, up from 4.9% for the same period in 2024[80] - Net income rose to $20.7 million for the three months ended March 31, 2025, compared to$4.0 million for the same period in 2024[83] - Adjusted EBITDA increased to $49.2 million for the three months ended March 31, 2025, from$37.2 million for the same period in 2024[83] Expenses - Practice salaries and benefits decreased by $32.1 million, or 8.7$337.0 million for the three months ended March 31, 2025, compared to $369.1 million for the same period in 2024[74] - General and administrative expenses were$58.6 million for the three months ended March 31, 2025, a decrease of $1.6 million compared to$60.2 million for the same period in 2024[76] - Transformational and restructuring related expenses were $6.6 million for the three months ended March 31, 2025, compared to$8.5 million for the same period in 2024[78] - Total non-operating expenses decreased to $4.0 million for the three months ended March 31, 2025, from$8.1 million for the same period in 2024[81] Cash Flow and Liquidity - Cash used in operating activities decreased to $116.1 million for the three months ended March 31, 2025, from$122.6 million for the same period in 2024[87] - As of March 31, 2025, the company had $99.0 million in cash and cash equivalents, down from$229.9 million at December 31, 2024[85] - The outstanding principal balance on the Amended Credit Agreement was $210.9 million as of March 31, 2025[96] - A 1$2.1 million per year based on the outstanding balance of the Amended Credit Agreement[104] Operational Metrics - The percentage of patient service revenue reimbursed under government-sponsored healthcare programs decreased during the three months ended March 31, 2025, compared to the same period in 2024[61] - Days sales outstanding (DSO) improved to 47.6 days at March 31, 2025, down from 52.2 days at March 31, 2024[89] Strategic Changes - The company completed the exit of its pediatric office-based practices as of December 31, 2024, to focus on hospital-based and maternal-fetal medicine services[62] - The company anticipates potential impacts from changes in government-sponsored healthcare programs and the expiration of COVID-19 related emergency declarations[67]