MEDNAX, Inc. (MD) has reported 19.45 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $54.69 million, or $0.59 a share in the quarter, compared with $67.90 million, or $0.73 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $69.99 million, or $0.75 a share compared with $81.34 million or $0.87 a share, a year ago. Revenue during the quarter grew 11.02 percent to $835.60 million from $752.62 million in the previous year period. Total expenses were 87.31 percent of quarterly revenues, up from 83.49 percent for the same period last year. That has resulted in a contraction of 382 basis points in operating margin to 12.69 percent.
Operating income for the quarter was $106.04 million, compared with $124.23 million in the previous year period.
"Our operating results for the first quarter of 2017 reflected challenges related to changes in payor mix, birth volumes and compensation expenses for non-physician clinicians,” said Roger J. Medel, M.D., chief executive officer of MEDNAX. "As a leading health solutions provider, we believe we are well-positioned to manage through these challenges, while continuing to execute on our strategic development and growth as an organization. Most important, we remain committed to being the provider of choice to our partners, based on our ongoing investments in great patient care, clinical research, education, and quality."
The company expects diluted earnings per share to be in the range of $0.68 to $0.72 for the second-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.85 to $0.89 for the second-quarter.
Working capital turns negativeWorking capital of MEDNAX, Inc. has turned negative to $1,596.23 million on Mar. 31, 2017 from positive $238.69 million on Mar. 31, 2016. Current ratio was at 0.26 as on Mar. 31, 2017, down from 1.76 on Mar. 31, 2016. Days sales outstanding went down to 50 days for the quarter compared with 55 days for the same period last year.
Debt increases substantially
MEDNAX, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,902.35 million as on Mar. 31, 2017, up 31.86 percent or $459.65 million from $1,442.70 million on Mar. 31, 2016. Total debt was 35.07 percent of total assets as on Mar. 31, 2017, compared with 31.12 percent on Mar. 31, 2016. Debt to equity ratio was at 0.69 as on Mar. 31, 2017, up from 0.59 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 5.97 for the quarter from 8.59 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
