MEDNAX, Inc. MD reported second-quarter 2020 adjusted earnings of 32 cents per share, beating the Zacks Consensus Estimate by 113.3%. However, the bottom line plunged 64% year over year due to muted revenues.
The company’s results were negatively impacted by the COVID-19 pandemic. In fact, the coronavirus outbreak dented patient volumes as well as revenues. The impact on net revenues was maximum during April.
Quarterly Details
The company generated revenues of $509 million, which missed the Zacks Consensus Estimate by 13.9%. Also, the top line declined 41.4% from the year-ago period. This was due to major reductions in patient volumes as a result of the prevalent COVID-19 pandemic.
Same unit revenues dropped 11.7% year over year.
General and administrative expenses fell 7.7% to $77.7 million on the back of lower general and administrative expenses.
Interest expense of the company declined 9% to $28.3 million on the back of lower borrowings.
In the quarter under review, EBITDA totaled $65.2 million, down 30.8% year over year.
Financial Update
As of Jun 30, 2020, the company had cash and cash equivalents of $132.2 million, up 22.5% from the level as of Dec 31, 2019.
The company’s total debt of $1.7 billion was up 0.5% from the level at 2019 end while total assets worth $3.4 billion were down 18.3% from the level at last-year end.
Cash flow generated from operating activities was $193.4 million in the quarter under review, jumping 172% year over year.
Business Update
MEDNAX completed the sale of its anesthesiology medical group American Anesthesiology to North American Partners in Anesthesia (NAPA).
The company intends to divest MEDNAX Radiology Solutions and return to its original name, Pediatrix Medical Group, Inc. It aims to channelize its resources as a pediatrics and obstetrics organization.
Zacks Rank
MEDNAX currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, earnings of UnitedHealth Group Incorporated (NYSE:UNH) UNH, HCA Healthcare (NYSE:HCA), Inc. HCA and Universal Health (NYSE:UHS) Services, Inc. UHS beat the Zacks Consensus Estimate.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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