Q2 2024 Pediatrix Medical Group Inc Earnings Call Transcript
Key Points
- Second quarter operating results exceeded expectations driven by same unit revenue growth and operating efficiencies.
- Revenue benefited from a strong payer mix, with stable patient volumes overall.
- Recognized revenue related to a one-time settlement with a payer, favorably impacting adjusted EBITDA by approximately $3 million.
- Maintaining full-year 2024 outlook for adjusted EBITDA of between $200 million and $220 million.
- Generated $109 million in operating cash flow in the second quarter, compared to $93 million in the prior year.
- NICU days declined slightly, indicating a potential area of concern in patient volumes.
- Volume declines in pediatric urgent care offset strong growth in maternal fetal medicine.
- Portfolio restructuring plan involves exiting a significant number of office-based practices, which could disrupt services.
- Increased restructuring costs from $25 million to $40 million due to additional practice exits.
- Full impact of restructuring and cost benefits will not be realized until 2025, indicating a period of transition and uncertainty.
Ladies and gentlemen, thank you for standing by. Welcome to the Pediatrix Medical Group 2024 second-quarter earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. I'd now like to turn the conference over to Charles Lynch. Please go ahead.
Thank you, operator, and good morning, everyone. I'm going to quickly read our forward-looking statements before we begin the call.
Certain statements and information during this conference call may be deemed to be forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions and assessments made by Pediatrix management in light of their experience and assessment of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.
Any forward-looking statements made during this call are made as of today and
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