FORT LAUDERDALE, Fla. - Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of specialized health care for women, children, and babies, announced today that it has met its adjusted earnings per share (EPS) estimates for the first quarter of 2024, but revenue fell slightly short of expectations.
The company reported an adjusted EPS of $0.20, which was in line with the analyst consensus. However, revenue for the quarter was reported at $495 million, below the analyst estimate of $500.5 million.
The company's first-quarter revenue saw a modest increase from the same quarter last year, which was $491 million, marking a growth of approximately 0.8%. Pediatrix's Chief Executive Officer, James D. Swift, M.D., commented on the results, stating, "Our first quarter operating results were in line with our expectations. Our key priorities for 2024 are sharply focused on operating efficiency and stabilization of our margin profile." He expressed confidence that the company's operating plans and strong financial position will benefit all stakeholders.
Despite the slight revenue shortfall, Pediatrix's net income for the first quarter stood at $4 million, a decrease from the $14.2 million reported in the first quarter of the previous year. The company also saw an increase in operating expenses, with practice salaries and benefits rising to $369.1 million from $362.2 million in the prior-year period.
Looking ahead, Pediatrix anticipates its 2024 adjusted EBITDA to be in the range of $200 million to $220 million. This guidance reflects the company's focus on improving operating efficiency and maintaining a stable margin profile.
As of March 31, 2024, Pediatrix had cash and cash equivalents of $8 million, a significant decrease from $73.3 million on December 31, 2023. The company used $122.6 million in cash to fund continuing operations during the first quarter, which is typically a period of higher cash use due to payments of incentive compensation and employee benefit plan matching contributions accrued in the prior year.
Pediatrix's total debt stood at $705 million, composed of various notes and borrowings under its credit facilities. The company remains focused on delivering specialized and critical care services through its affiliated physicians and clinicians across 37 states.
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