Pediatrix Medical Group, Inc. (NYSE:MD) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET

Corporate Participants

Charles Lynch - Investor Relations

Mark Ordan - Chief Executive Officer

Marc Richards - Chief Financial Officer

James Swift - Chief Operating Officer

Conference Call Participants

Pito Chickering - Deutsche Bank

Whit Mayo - SVB Securities

Tao Qiu - Stifel

Kevin Fischbeck - Bank of America

Brian Tanquilut - Jefferies

AJ Rice - Credit Suisse

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Pediatrix Medical Group Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, your call today is being recorded.

I would now turn the conference call over to your host, Senior Vice President of Strategy and Finance, Charles Lynch. Please go ahead.

Charles Lynch

Thank you, operator, and good morning, everyone. I will quickly read through our forward-looking statements and then turn the call over to our speakers.

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 Pediatrix undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the company's most recent annual report on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, including the sections entitled Risk Factors.

In today's remarks by management, we will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this morning's earnings press release, our quarterly reports on Form 10-Q and our Annual Report on Form 10-K and on our website at www.pediatrix.com.

With that, I'll turn the call over to our CEO, Mark Ordan.

Mark Ordan

Thanks, Charlie, and good morning, everyone. Also with me today are Dr. Jim Swift, our Chief Operating Officer and Marc Richards, our Chief Financial Officer. We're of course disappointed by our third quarter results compared to our internal forecast revenue was off by approximately 22 million and adjusted EBITDA missed by approximately 19 million. Roughly half of this variance reflect muted operating results from a handful of factors primarily related to neonatology volume and payer mix. However, the largest component of the miss was directly from our outsource billing and collection processes, which unfavorably impacted revenue and adjusted EBITDA by approximately 11 million and 9 million respectively.