Financial Data and Key Metrics Changes - The first quarter results exceeded expectations, driven by same unit revenue growth of over 6% and adjusted EBITDA of just over $49 million, significantly above expectations [3][4] - Consolidated revenue decreased by just over 7%, primarily due to non-same unit activity declining by about $63 million, partially offset by strong same unit growth [9] - Adjusted EBITDA outlook for full year 2025 was raised from a range of $215 million to $235 million to a range of $220 million to $240 million [4][13] Business Line Data and Key Metrics Changes - NICU days increased by 2%, with modest growth in maternal fetal medicine [3] - Same unit pricing was up over 4.6%, driven by favorable payer mix shifts and modest improvement in contract administrative fees [9] - Practice level operating expenses reflected the impact of cost management initiatives, with salary growth decelerating significantly year over year [10] Market Data and Key Metrics Changes - The company ended the quarter with cash of $99 million and net debt of $512 million, reflecting net leverage of just over 2.2 times using the midpoint of the updated adjusted EBITDA outlook for 2025 [12] - Accounts receivable DSO was just under 48 days, flat compared to the previous quarter but down over four days year over year [12] Company Strategy and Development Direction - The company is focused on reinvigorating relationships with hospital and health system partners and aims to be the employer of choice for clinicians [5][6] - The strategic focus is on core areas such as neonatology and maternal fetal medicine, with an emphasis on being a reliable partner for hospitals [36][46] - The company is actively engaged in recruiting and retaining talent to bolster its core operations [6] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the operating environment, citing uncertainty in healthcare and the economy [4][20] - The first quarter results exceeded expectations, but management maintains a conservative stance due to ongoing uncertainties [17][20] Other Important Information - The company is comfortable with its current portfolio and does not foresee any sweeping changes, although it continues to look for optimization opportunities [45] - Interest income from cash balances contributed to strong performance in the investments and other income line [50] Q&A Session Summary Question: Updated thoughts on guidance considering first quarter performance - Management stated that initial guidance was conservative due to uncertainty, but the first quarter performance warranted an increase in the outlook [17] Question: Concerns regarding economic factors affecting family expansion decisions - Management indicated that there are many swirling changes in the economy, but no specific concerns were highlighted [19][20] Question: Dynamics of hospital subsidies and their impact on business - Subsidies have always been part of the business, and relationships with hospitals remain strong [25][26] Question: Seasonality expectations for 2025 - Management does not foresee any changes in seasonality for 2025 [29] Question: Concerns regarding collections and aging receivables - Management expressed no concerns regarding DSO or accounts receivable, indicating that collections are improving [31] Question: Update on divestitures and acquisition market - Management is comfortable with the current portfolio and sees favorable conditions for acquisitions [46][47]