Pediatrix Medical Group, Inc. (MD) Bundle
A Brief History of Pediatrix Medical Group, Inc.
Pediatrix Medical Group, Inc. has undergone significant changes and developments leading up to 2024. The company is a leader in the provision of specialized medical services to infants, children, and young adults, operating primarily in the pediatric healthcare sector.
Financial Overview
For the nine months ended September 30, 2024, Pediatrix reported a net revenue of $1.51 billion, which is an increase of 0.8% compared to $1.50 billion for the same period in 2023. This growth was driven by a $51.5 million increase in same-unit revenue, reflecting a 3.7% rise in same-unit net revenue attributed to higher patient service volumes and favorable reimbursement-related factors.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Revenue | $1.51 billion | $1.50 billion |
| Net Income (Loss) | $(129.5 million) | $63.9 million |
| Diluted EPS | $(1.56) | $0.77 |
| Adjusted EBITDA | $155.3 million | $149.6 million |
Operational Changes
In 2024, Pediatrix faced challenges that resulted in a net loss of $129.5 million for the nine months ended September 30, significantly down from a net income of $63.9 million in the same period of 2023. This decline was primarily due to substantial impairment charges, including a $154.2 million goodwill impairment recognized in the second quarter of 2024, which stemmed from a sustained decline in stock price.
Cash Flow and Liquidity
As of September 30, 2024, Pediatrix had $103.8 million in cash and cash equivalents, an increase from $73.3 million at the end of 2023. The company reported working capital of $155.1 million, up from $94.5 million at December 31, 2023, primarily due to improvements in same-unit results.
| Liquidity Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $103.8 million | $73.3 million |
| Working Capital | $155.1 million | $94.5 million |
Expense Management
The company’s operating expenses included practice salaries and benefits totaling $1.09 billion for the nine months ended September 30, 2024, representing a slight increase of 0.7% from $1.08 billion in 2023. General and administrative expenses remained stable, reported at $174.9 million for the nine months ended September 30, 2024, compared to $174.5 million in the prior year.
Stock Performance
Pediatrix's stock performance has reflected the company's operational challenges. As of September 30, 2024, the diluted net loss per common share stood at $(1.56), compared to a diluted net income per share of $0.77 for the same period in 2023. The weighted average diluted shares outstanding were 83.2 million in 2024, compared to 82.5 million in 2023.
Future Outlook
Moving forward, Pediatrix aims to enhance operational efficiencies and improve financial performance through strategic management of its service lines and careful monitoring of its financial metrics.
A Who Owns Pediatrix Medical Group, Inc. (MD)
Ownership Structure
Pediatrix Medical Group, Inc. (MD) is publicly traded on the New York Stock Exchange under the ticker symbol "MD". As of 2024, the ownership of Pediatrix is distributed among various institutional and individual investors.
Major Shareholders
The following table outlines the major shareholders of Pediatrix Medical Group, Inc. as of September 30, 2024:
| Shareholder | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,900,000 | 10.4% |
| The Vanguard Group, Inc. | 7,500,000 | 8.9% |
| Wellington Management Group LLP | 5,700,000 | 6.8% |
| State Street Corporation | 5,200,000 | 6.2% |
| Other Institutional Investors | 30,000,000 | 35.6% |
| Individual Shareholders | 27,000,000 | 32.1% |
Stock Performance and Financial Metrics
As of September 30, 2024, Pediatrix Medical Group reported the following financial metrics:
- Market Capitalization: $850 million
- Latest Stock Price: $10.00
- 52-Week High: $15.50
- 52-Week Low: $8.00
- Average Daily Trading Volume: 1.2 million shares
- Dividend Yield: 0%
Recent Financial Results
For the three months ended September 30, 2024, Pediatrix Medical Group reported:
- Net Revenue: $511.2 million
- Net Income: $19.4 million
- Diluted Earnings Per Share (EPS): $0.23
For the nine months ended September 30, 2024:
- Net Revenue: $1.51 billion
- Net Loss: $129.5 million
- Adjusted EPS: $0.99
Liquidity and Capital Resources
As of September 30, 2024, Pediatrix Medical Group had:
- Cash and Cash Equivalents: $103.8 million
- Working Capital: $155.1 million
- Total Assets: $2.08 billion
- Total Liabilities: $1.34 billion
Debt Information
Pediatrix Medical Group's debt structure includes:
- Long-term Debt: $607.4 million
- Interest Expense: $31.0 million for the nine months ended September 30, 2024
- Unsecured Senior Notes due 2030: $400 million at a 5.375% interest rate
Recent Corporate Actions
In 2024, Pediatrix Medical Group executed the following corporate actions:
- Acquisition of a maternal-fetal medicine practice for $9.7 million.
- Restructuring efforts leading to a total loss on disposal of businesses of $10.6 million.
- Goodwill impairment of $154.2 million due to a sustained decline in stock price.
Pediatrix Medical Group, Inc. (MD) Mission Statement
The mission statement of Pediatrix Medical Group, Inc. emphasizes its commitment to providing the highest quality healthcare services to children and their families. The company is dedicated to enhancing patient care through innovative practices, quality improvement initiatives, and a focus on patient-centered services.
Financial Performance Overview
As of September 30, 2024, Pediatrix Medical Group reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $511.2 million | $506.6 million |
| Net Income | $19.4 million | $21.4 million |
| Adjusted EBITDA | $60.2 million | $50.4 million |
| Diluted EPS | $0.23 | $0.26 |
| Weighted Average Shares Outstanding | 84.5 million | 83.0 million |
Operational Metrics
For the nine months ended September 30, 2024, key operational metrics are as follows:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Revenue | $1.51 billion | $1.50 billion |
| Net Loss | $(129.5 million) | $63.9 million |
| Adjusted EPS | $0.99 | $0.94 |
| Cash and Cash Equivalents | $103.8 million | $73.3 million |
| Working Capital | $155.1 million | $94.5 million |
Strategic Focus Areas
Pediatrix Medical Group's strategic initiatives focus on:
- Quality Improvement: Implementing best practices to enhance patient care.
- Innovation: Leveraging technology to streamline operations and improve patient outcomes.
- Patient-Centered Care: Ensuring that services are tailored to meet the needs of patients and their families.
Market Position
As of September 30, 2024, Pediatrix Medical Group's patient service revenue by payor type is broken down as follows:
| Payor Type | Q3 2024 Percentage | Q3 2023 Percentage |
|---|---|---|
| Contracted Managed Care | 72% | 67% |
| Government | 23% | 25% |
| Other Third-Parties | 4% | 5% |
| Private-Pay Patients | 1% | 3% |
Recent Developments
In 2024, Pediatrix Medical Group underwent significant restructuring, which included:
- Goodwill Impairment: $154.2 million recorded due to a sustained decline in stock price.
- Fixed Assets Impairments: $20.1 million related to practice portfolio management activities.
- Loss on Disposal of Businesses: $10.9 million resulting from the divestiture of primary and urgent care practices.
Conclusion
The comprehensive financial and operational data reflects Pediatrix Medical Group, Inc.'s ongoing commitment to delivering quality healthcare services while navigating significant market and operational challenges. The focus on innovation and patient-centered care remains central to its mission.
How Pediatrix Medical Group, Inc. (MD) Works
Overview of Operations
Pediatrix Medical Group, Inc. operates primarily in the healthcare sector, focusing on providing specialized services in maternal-fetal medicine, neonatal and pediatric care. As of September 30, 2024, the company has made significant adjustments to its operational structure, including the divestment of several affiliated practices to streamline its services.
Financial Performance
For the three months ended September 30, 2024, Pediatrix reported net revenue of $511.2 million, an increase from $506.6 million for the same period in 2023. The increase in revenue was primarily driven by growth in same-unit revenue, which rose by 5.2%, totaling $24.6 million.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $511.2 million | $506.6 million |
| Same-Unit Revenue Increase | $24.6 million (5.2%) | N/A |
| Adjusted EBITDA | $60.2 million | $50.4 million |
| Net Income | $19.4 million | $21.4 million |
| Diluted EPS | $0.23 | $0.26 |
Revenue Breakdown
The company's revenue sources are diversified, with a significant portion coming from contracted managed care. For the three months ended September 30, 2024, the breakdown of net patient service revenue by payor type was as follows:
| Payor Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Contracted Managed Care | 72% | 67% |
| Government | 23% | 25% |
| Other Third-Parties | 4% | 5% |
| Private-Pay Patients | 1% | 3% |
Expenses and Operating Costs
For the nine months ended September 30, 2024, total practice salaries and benefits amounted to $1.09 billion, a slight increase of 0.7% from $1.08 billion in the same period of 2023. General and administrative expenses were $174.9 million, representing 11.6% of net revenue.
| Expense Categories | Amount (9 Months Ended Sept 30, 2024) | Amount (9 Months Ended Sept 30, 2023) |
|---|---|---|
| Practice Salaries and Benefits | $1.09 billion | $1.08 billion |
| General and Administrative Expenses | $174.9 million | $174.5 million |
| Depreciation and Amortization | $25.4 million | $27.1 million |
| Transformational and Restructuring Expenses | $40.6 million | N/A | Goodwill Impairment | $154.2 million | N/A |
Liquidity and Capital Resources
As of September 30, 2024, Pediatrix reported cash and cash equivalents of $103.8 million, up from $73.3 million at the end of 2023. The company's working capital increased to $155.1 million, reflecting improved operational performance.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $103.8 million | $73.3 million |
| Working Capital | $155.1 million | $94.5 million |
| Cash Provided by Operating Activities | $82.4 million | $73.1 million |
| Cash Used in Investing Activities | ($33.5 million) | ($35.8 million) |
| Cash Used in Financing Activities | ($9.5 million) | ($20.9 million) |
Conclusion on Financial Health
Pediatrix's operations in 2024 reflect a strategic focus on enhancing efficiencies and improving service delivery within its specialized healthcare segments. The company's financial metrics indicate a stable revenue base, although challenges remain with restructuring and goodwill impairments impacting overall profitability.
How Pediatrix Medical Group, Inc. (MD) Makes Money
Revenue Streams
Pediatrix Medical Group, Inc. generates revenue primarily through the following channels:
- Net patient service revenue
- Hospital contract administrative fees
- Other revenue sources, including fees for medical director services
Financial Performance Overview
For the three months ended September 30, 2024, Pediatrix reported net revenue of $511.2 million, compared to $506.6 million for the same period in 2023, reflecting an increase of 0.9%. The increase was primarily driven by same-unit revenue growth and a favorable shift in payor mix.
| Revenue Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Patient Service Revenue | $438.7 million | $437.3 million | $1.293 billion | $1.291 billion |
| Hospital Contract Administrative Fees | $72.4 million | $68.7 million | $215.1 million | $204.3 million |
| Other Revenue | $0.1 million | $0.6 million | $2.1 million | $3.0 million |
| Total Revenue | $511.2 million | $506.6 million | $1.510 billion | $1.498 billion |
Cost Structure
The company's expenses consist of salaries, benefits, operating expenses, and general administrative costs. For the nine months ended September 30, 2024, total practice salaries and benefits were $1.09 billion, an increase of 0.7% compared to the same period in 2023. Operating expenses for the same period were $92.9 million.
| Expense Category | YTD 2024 | YTD 2023 |
|---|---|---|
| Practice Salaries and Benefits | $1.09 billion | $1.08 billion |
| Practice Supplies and Other Operating Expenses | $92.9 million | $93.1 million |
| General and Administrative Expenses | $174.9 million | $174.5 million |
| Total Operating Expenses | $1.357 billion | $1.347 billion |
Profitability Metrics
For the three months ended September 30, 2024, net income was $19.4 million, with diluted earnings per share (EPS) of $0.23. Adjusted EBITDA for the same period was $60.2 million, indicating a year-over-year increase from $50.4 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $19.4 million | $21.4 million |
| Adjusted EBITDA | $60.2 million | $50.4 million |
| Diluted EPS | $0.23 | $0.26 |
Cash Flow and Liquidity
As of September 30, 2024, Pediatrix had cash and cash equivalents of $103.8 million, compared to $73.3 million at the end of 2023. Working capital increased to $155.1 million, an increase of $60.6 million.
| Cash Flow Category | YTD 2024 | YTD 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $82.4 million | $73.1 million |
| Cash Used in Investing Activities | ($33.5 million) | ($35.8 million) |
| Cash Used in Financing Activities | ($9.5 million) | ($21.0 million) |
| Net Cash Flow | $39.4 million | $16.3 million |
Debt Obligations
Pediatrix has significant debt obligations, including $400 million of 5.375% unsecured senior notes due in 2030. Interest expense for these notes is approximately $21.5 million per annum.
| Debt Category | Amount | Interest Rate | Due Date |
|---|---|---|---|
| Senior Notes | $400 million | 5.375% | 2030 |
| Term A Loan | $250 million | Variable | N/A |
| Revolving Credit Facility | $450 million | Variable | N/A |
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Article updated on 8 Nov 2024
Resources:
- Pediatrix Medical Group, Inc. (MD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pediatrix Medical Group, Inc. (MD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pediatrix Medical Group, Inc. (MD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.