MEDNAX® Third Quarter Profits Beat Estimates, Revenues Up Y / Y


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MEDNAX, Inc. MARYLAND reported adjusted earnings of 46 cents per share in the third quarter of 2021, beating Zacks’ consensus estimate by 9.5%. Net income improved 24.3% year-on-year.

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The company’s results accelerated thanks to improved revenues, increased patient volumes and reduced operating expenses.

Quarterly update

The company’s revenue grew 7% year-over-year to $ 493 million in the third quarter, thanks to higher patient volumes. The top line broke the consensus mark by 2.2%.

Comparable unit revenues grew 5.9% year-over-year, driven by net acquisition activity. Meanwhile, same-unit revenue attributable to patient volume improved 6.5% year-over-year.

Total operating expenses were down 1.4% year-on-year to $ 434.2 million in the quarter under review due to lower expenses related to transformation and restructuring.

General and administrative expenses of $ 66.9 million increased 0.9% year-over-year due to higher costs associated with information technology initiatives and various corporate efforts. mitigation of COVID-19 resulting in a temporary decline in salary expenses in the quarter of the previous year.

The company’s interest expense fell 35.5% year-over-year to $ 17.6 million following the redemption this year of its 5.25% senior bonds with a principal amount outstanding of $ 750 million due 2023.

In the third quarter, adjusted EBITDA of $ 73.4 million increased 0.8% year-over-year.

Financial update (as of September 30, 2021)

The company ended the third quarter with cash and cash equivalents of $ 357.9 million, which more than tripled from the end of 2020 level.

Total assets of $ 2.6 billion were down 21% from the figure at the end of 2020.

The company’s total debt stood at $ 1 billion, a drop of 42.4% from December 31, 2020.

Cash flow from operating activities totaled $ 67.2 million in the third quarter, down 47.1% year over year.

The quarter also saw MEDNAX permanently reduce the size of its revolving credit facility from $ 1.2 billion to $ 600 million. The company had no outstanding borrowings under its $ 600 million revolving credit facility at the end of the third quarter.

Zack Rank

MEDNAX currently wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Fort Buy) stocks here.

Other press releases from the medical sector

Among the players in the medical sector who have released third quarter results so far, the results of HCA Health, Inc. HCA, Tenet Healthcare Company THC and Molina Health, Inc. Ministry of Health beat Zacks’ consensus estimate.

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