Write-down forces Mednax into big Q2 net loss

Write-down forces Mednax into big Q2 net loss
By AuntMinnie.com staff writers

July 30, 2020 -- National medical group Mednax posted a massive $672.4 million net loss for the second quarter, primarily due to a noncash loss related to the sale of the company's American Anesthesiology business.

Despite the loss, Mednax numbers from continuing operations were better than Wall Street expectations as the company reported procedure volume returning to 85%-90% of normal after hitting a low in the depths of the COVID-19 pandemic. Mednax said it continues to seek a company to purchase its radiology business.

For the quarter (end-June 30), Mednax reported revenue from continuing operations (not including American Anesthesiology) of $509.2 million, down 9.3% compared with revenue of $561.2 million in the second quarter of 2019. Net income from continuing operations was $7.6 million, compared with a profit of $20 million in the corresponding quarter of the previous year.

Mednax said its operations were significantly impacted by the COVID-19 outbreak, with the biggest decline in volume occurring in April and recovery beginning in May. Volume in radiology services fell by approximately 29% in the second quarter, with volume in the month of April declining by approximately 50% but recovering to approximately 85% to 90% of pre-COVID levels by the end of the second quarter.

Mednax remains "actively engaged" in the effort to divest Mednax Radiology Solutions, an intention the company announced in June.

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