pediatrix(US:MD)2021-05-07 18:50Financial Data and Key Metrics Changes - The company's net revenue grew by $5.5 million or just over 1% year-over-year, with same unit revenue increasing by 2.5% year-over-year [37] - Adjusted EBITDA for Q1 2021 was $45 million, which is still below the first quarter of 2019, reflecting an 18% decline compared to Q1 2019 [16][17] - The company expects 2021 adjusted EBITDA to be at or above $220 million, with a focus on recovering to pre-pandemic levels [15][70] Business Line Data and Key Metrics Changes - Patient volumes improved throughout Q1, with same unit growth in March across all service lines except for PeekYou and pediatric hospitalist services [39] - NICU days for the quarter were down slightly more than total births at hospitals where NICU coverage is provided, indicating a modest year-over-year decline in average length of stay [40] - Same unit volumes declined approximately 3% compared to the same period in 2019, with hospital-based volume down more than office-based volume [41] Market Data and Key Metrics Changes - The payor mix improved by 110 basis points compared to 2020, contributing roughly $5 million in revenue or over 1% to pricing growth for the quarter [42] - The company recorded about $8 million in revenue from the Provider Relief Fund during the quarter, which positively impacted overall revenue [37] Company Strategy and Development Direction - The company aims to reinforce its position as a leading provider of women's and children's healthcare, focusing on patient care and operational efficiency [20] - Plans include expanding pediatric primary and urgent care services to enhance patient access and strengthen community relationships [30][31] - A marketing campaign has been launched to increase brand awareness and trust in the company's services [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing volatility in operating results and the uncertain nature of recovery from COVID-19 impacts [18][19] - The company is optimistic about achieving a run rate of $270 million in adjusted EBITDA post-COVID, driven by operational improvements and strategic initiatives [19] - Management emphasized the importance of taking great care of patients as a core principle guiding the company's operations [21] Other Important Information - The company ended the quarter with $270 million in cash and net debt of $730 million, indicating a leverage ratio just over 3x [47] - G&A expenses were down nearly $1 million year-over-year, despite incurring costs related to transitional services provided to buyers of anesthesia and radiology medical groups [44] Q&A Session Summary Question: Understanding volume recovery for the rest of the year - Management noted that while there has been upward volatility in volumes, it is too early to make bullish predictions about recovery trends [52][54] Question: Impact of TSA on guidance - Management indicated that there will be residual costs from winding down TSA services, which may not be one-for-one with revenue collection [58] Question: Commercial mix improvement - Management stated that the payor mix is returning to expected levels after an anomaly in the fourth quarter [64] Question: Update on deal pipeline and acquisitions - Management confirmed a strong pipeline for both organic growth and acquisitions, particularly in pediatrics and obstetrics [67] Question: Guidance for Q2 EBITDA - Management provided a consensus estimate for Q2 EBITDA around $50 million to $55 million, emphasizing caution due to ongoing volatility [70][100]