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MEDNAX's (MD) Earnings Beat Estimates in Q2, Improve Y/Y
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MEDNAX, Inc. (MD - Free Report) reported second-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 33 centsby 24.2%. Moreover, the bottom line improved 28.1% year over year.
The quarter witnessed strong patient volume trends in the quarter under review.
The company generated revenues of $473 million, which beat the Zacks Consensus Estimate by 3.7% on the back of solid patient volumes. The top line fell 7.1% from the year-ago period’s level.
Same-unit revenues were up 13.4% year over year owing to net acquisition activity while same-unit revenues attributable to patient volume were up 9.5%.
General and administrative expenses increased 17.4% year over year to $71 million due to higher costs related to information-technology initiatives, reductions in salary expense, etc.
Total operating expenses rose 11% year over year to $422 million due to higher practice salaries and benefits, practise supplies and other operating expenses, and general and administrative expenses.
Interest expense of the company declined 40.3% on the back of its redemption of $750-million outstanding principle amount of 5.25% senior notes due 2023.
In the quarter under review, adjusted EBITDA totalled $65.5 million, up 17.6% year over year.
Business Update
The company completed the sale of a secondary corporate office building in the second quarter.
Financial Update (as of Jun 30, 2021)
The company had cash and cash equivalents of $338.1 million, which decreased 70% from the level as of Dec 31, 2020.
The company’s total debt, net of $998 million, was down 42.7% from the level at 2020 end while total assets worth $2.55 billion dropped 23.7% from the last-year end.
Cash flow used in operating activities was $70.4 million in the quarter under review compared with $97.5 million in second-quarter 2020.
The company left the second quarter with no outstanding borrowings under its $1.2-billion revolving credit facility.
Among other players from the medical space that have reported second-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat estimates.
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MEDNAX's (MD) Earnings Beat Estimates in Q2, Improve Y/Y
MEDNAX, Inc. (MD - Free Report) reported second-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 33 centsby 24.2%. Moreover, the bottom line improved 28.1% year over year.
The quarter witnessed strong patient volume trends in the quarter under review.
MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote
Quarterly Details
The company generated revenues of $473 million, which beat the Zacks Consensus Estimate by 3.7% on the back of solid patient volumes. The top line fell 7.1% from the year-ago period’s level.
Same-unit revenues were up 13.4% year over year owing to net acquisition activity while same-unit revenues attributable to patient volume were up 9.5%.
General and administrative expenses increased 17.4% year over year to $71 million due to higher costs related to information-technology initiatives, reductions in salary expense, etc.
Total operating expenses rose 11% year over year to $422 million due to higher practice salaries and benefits, practise supplies and other operating expenses, and general and administrative expenses.
Interest expense of the company declined 40.3% on the back of its redemption of $750-million outstanding principle amount of 5.25% senior notes due 2023.
In the quarter under review, adjusted EBITDA totalled $65.5 million, up 17.6% year over year.
Business Update
The company completed the sale of a secondary corporate office building in the second quarter.
Financial Update (as of Jun 30, 2021)
The company had cash and cash equivalents of $338.1 million, which decreased 70% from the level as of Dec 31, 2020.
The company’s total debt, net of $998 million, was down 42.7% from the level at 2020 end while total assets worth $2.55 billion dropped 23.7% from the last-year end.
Cash flow used in operating activities was $70.4 million in the quarter under review compared with $97.5 million in second-quarter 2020.
The company left the second quarter with no outstanding borrowings under its $1.2-billion revolving credit facility.
Zacks Rank
MEDNAX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Among other players from the medical space that have reported second-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat estimates.