Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

InnovAge Announces Financial Results for the Fiscal Second Quarter Ended December 31, 2023

DENVER, Feb. 06, 2024 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal second quarter ended December 31, 2023.

“Our second quarter results were consistent with our expectations and highlight the ongoing performance improvement across the business,” said Patrick Blair, President, and CEO. “We remain focused on unlocking both near-term and long-term value, enhancing our competitive differentiation as an operator and improving our financial performance.”

Financial Results

 Three Months Ended December 31, Six Months Ended December 31,
  2023   2022   2023   2022 
in thousands, except percentages and per share amounts     
Total revenues$188,898  $167,456  $371,382  $338,674 
Loss Before Income Taxes (3,728)  (13,459)  (14,464)  (30,630)
Net Loss (3,821)  (10,547)  (14,783)  (24,247)
Net Loss margin(2.0)% (6.3)% (4.0)% (7.2)%
        
Net Loss Attributable to InnovAge Holding Corp. (3,447)  (9,793)  (13,751)  (22,866)
Net Loss per share - basic and diluted$(0.03) $(0.07) $(0.10) $(0.17)
        
Center-level Contribution Margin(1)$33,613  $22,573   61,490   43,997 
Adjusted EBITDA(1)$7,771  $(1,954) $9,997  $(5,768)
Adjusted EBITDA margin(1) 4.1% (1.2)%  2.7% (1.7)%
        

Fiscal Second Quarter 2024 Financial Performance

  • Total revenue of $188.9 million, increased approximately 12.8% compared to $167.5 million in the second quarter of fiscal year 2023
  • Loss Before Income Taxes of $3.7 million, compared to a loss before income taxes of $13.5 million in the second quarter of fiscal year 2023
  • Loss Before Income Taxes as a percent of revenue of 2.0% decreased 6.0 percentage points compared to Loss Before Income Tax as a percent of revenue of 8.0% in in the second quarter of fiscal year 2023
  • Center-level Contribution Margin(1) of $33.6 million, increased 48.9% compared to $22.6 million in the second quarter of fiscal year 2023
  • Center-level Contribution Margin(1) as a percent of revenue of 17.8%, increased 4.3 percentage points compared to 13.5% in the second quarter of fiscal year 2023
  • Net loss of $3.8 million, compared to net loss of $10.5 million in the second quarter of fiscal year 2023
  • Net loss margin of 2.0%, a decrease of 4.3 percentage points compared to a net loss margin of 6.3% in the second quarter of fiscal year 2023
  • Net loss attributable to InnovAge Holding Corp. of $3.4 million, or a loss of $0.03 per share, compared to net loss of $9.8 million, or a loss of $0.07 per share in the second quarter of fiscal year 2023
  • Adjusted EBITDA(1) of $7.8 million, an increase of $9.7 million compared to an Adjusted EBITDA loss of $2.0 million in the second quarter of fiscal year 2023
  • Adjusted EBITDA(1) margin of 4.1%, an increase of 5.3 percentage points compared to negative 1.2% in the second quarter of fiscal year 2023
  • Census of approximately 6,780 participants compared to 6,460 participants in the second quarter of fiscal year 2023
  • Ended the second quarter of fiscal year 2024 with $54.1 million in cash and cash equivalents plus $44.7 million in short-term investments, and $83.7 million in debt on the balance sheet, representing debt under the Company’s senior secured term loan, convertible term loan and finance leases

(1) Center-level Contribution Margin and as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For a definition and reconciliation of these non-GAAP measures to the most closely comparable GAAP measures for the periods indicated, see “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures.”

Full Fiscal Year 2024 Financial Guidance

Based on information as of today, February 6, 2024, InnovAge is reiterating the following financial guidance which is now inclusive of the ConcertoCare acquisition.

 Low High
 dollars in millions
Census 6,800  7,400
Member Months(1) 79,000  83,000
    
Total revenues$725 $775
Adjusted EBITDA(2) 12  18
      

Expected results and estimates may be impacted by factors outside the Company’s control, and actual results may be materially different from this guidance. See “Forward-Looking Statements - Safe Harbor” herein.

(1) We define Member Months as the total number of participants as of period end multiplied by the number of months within a year in which each participant was enrolled in our program. Management believes this is a useful metric as it more precisely tracks the number of participants the Company serves throughout the year.

(2)Adjusted EBITDA is a non-GAAP measure. See “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures” for a definition of Adjusted EBITDA and a reconciliation to net income (loss), the most closely comparable GAAP measure. The Company is unable to provide guidance for net income (loss) or a reconciliation of the Company’s Adjusted EBITDA guidance because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. The Company’s inability to do so is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities and other one-time or exceptional items.

Conference Call

The Company will host a conference call this afternoon at 5:00 PM Eastern Time.  A live audio webcast of the call will be available on the Company’s website, https://investor.innovage.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for a limited time.  To access the call by phone, please go to this link (registration link), for dialing instructions and a unique access pin.  We encourage participants to dial into the call fifteen minutes ahead of the scheduled start time.

About InnovAge

InnovAge is a market leader in managing the care of high-cost, frail, predominantly dual-eligible seniors. Our mission is to enable seniors to age independently in their own homes for as long as safely possible. Our patient-centered care model is designed to improve the quality of care our participants receive, while reducing over-utilization of high-cost care settings. InnovAge believes its healthcare model is one in which all constituencies — participants, their families, providers and government payors — “win.” As of December 31, 2023, InnovAge served approximately 6,780 participants across 18 centers in five states. https://www.innovage.com/.

Investor Contact:

Ryan Kubota
rkubota@innovage.com

Media Contact:

Lara Hazenfield
lhazenfield@innovage.com

Forward-Looking Statements - Safe Harbor
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts. Examples of forward-looking statements include, among others, statements we may make regarding quarterly or annual guidance; financial outlook, including future revenues and future earnings; our expectations to increase the number of participants we serve, to grow enrollment and capacity within existing centers, to build and/or open de novo centers, or to find targets and execute tuck-in acquisitions; our ability to control costs, mitigate the effects of elevated expenses, expand our payer capabilities, implement clinical value initiatives and strengthen enterprise functions; the potential effects of the macro-economic environment and lingering COVID-19 impacts on our business; our expectations with respect to current audit post-sanction work, legal proceedings and government investigations and actions; relationships and discussions with regulatory agencies; our ability to effectively implement remediation measures, including creating operational excellence as a provider across all our centers; reimbursement and regulatory developments; market developments; new services; integration activities; industry and market opportunity; and the effects of any of the foregoing on our future results of operations or financial conditions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on currently available information and our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. You should not place undue reliance on our forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) the viability of our growth strategy; (ii) our ability to identify and successfully complete and integrate acquisitions; (iii) our ability to attract new participants and retain existing participants and grow our revenue throughout our existing centers; (iv) the results of periodic inspections, reviews, audits, and investigations under the federal and state government programs, and our ability to sufficiently cure any new and recurring deficiencies identified by the respective federal and state government programs; (v)   the adverse impact of inspections, reviews, audits, investigations, legal proceedings, enforcement actions and litigation, including the current civil investigative demands initiated by federal and state agencies, as well as the litigation and other proceedings initiated by, or on behalf, of our stockholders; (vi) the risk that the cost of providing services will exceed our compensation under the Program of All Inclusive Care for the Elderly (“PACE”); (vii) our increased costs and expenditures in the future and our inability to execute or realize the benefits of our clinical value initiatives; (viii) the impact on our business from ongoing macroeconomic challenges, including labor shortages and inflation; (ix) the dependence of our revenues and operations upon a limited number of government payors; (x) the risk that our submissions to government payors may contain inaccurate or unsupportable information, including regarding risk adjustment scores of participants; (xi) the impact on our business of renegotiation, non-renewal or termination of capitation agreements with government payors; (xii) the difficulty to predict our future results, which could cause such results to fall below any guidance we provide; (xiii) the impact of state and federal efforts to reduce healthcare spending; (xiv) the effects of a pandemic, epidemic or outbreak of an infectious disease, such as COVID-19; (xv) our dependence on our senior management team and other key employees; (xvi) the impact of failures by our suppliers or limitations on our ability to access new technology or medical products; (xvii) the concentration of our presence in Colorado; (xviii) our ability to manage our operations effectively, execute our business plan, maintain effective levels of service and participant satisfaction and adequately address competitive challenges; (xix) our ability to compete in the healthcare industry; (xx) our ability to establish a presence in new geographic markets; (xxi) the impact of competition for physicians and other clinical personnel and related increases in our labor costs; (xxii) labor relations matters, including unionization efforts; (xxiii) the impact on our business of security breaches, loss of data or other disruptions causing the compromise of sensitive information or preventing us from accessing critical information; (xxiv) our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; (xxv) our ability to accurately estimate incurred but not reported medical expense or the risk scores of our participants; (xxvi) risks associated with our use of “open-source” software; (xxvii) the impact on our business of the termination of our leases, increases in rent or inability to renew or extend leases; (xxviii) the impact of weather and other factors beyond our control; (xxix) the effect of our relatively limited operating history as a for-profit company on investors' ability to evaluate our current business and future prospects; (xxx) our ability to adhere to complex and changing government laws and regulations in the healthcare industry, including U.S. Healthcare reform, the regulation of the corporate practice of medicine and the Health Information Technology for Economic and Clinical Health Act of 2009 (the “HITECH Act”), and their implementing regulations (collectively, “HIPAA”), the California Consumer Privacy Act (“CCPA”) and other privacy laws and regulations in the healthcare industry; (xxxi) our status as a “controlled company”; (xxxii) our ability to maintain effective internal controls over financial reporting and other enhanced requirements of being a public company; (xxxiii) our ability to maintain and enhance our reputation and brand recognition; (xxxiv) the impact on our business of disruptions in our disaster recovery systems or business continuity planning; (xxxv) impact of negative publicity regarding the managed healthcare industry; and (xxxvi) other factors disclosed in the section entitled “Risk Factors” in our Annual Report for the year ended June 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on September 12, 2023, and our subsequent filings with the SEC.

Any forward-looking statement made by the Company in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Note Regarding Use of Non-GAAP Financial Measures
In addition to reporting financial information in accordance with generally accepted accounting principles (“GAAP”), the Company is also reporting Center-level Contribution Margin, and as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. Center-level Contribution Margin and as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin are supplemental measures of operating performance monitored by management that are not defined under GAAP and that do not represent, and should not be considered as, an alternative to net income (loss) and net income (loss) margin, respectively, as determined by GAAP. We believe that Center-level Contribution Margin and as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin are appropriate measures of operating performance because the metrics eliminate the impact of revenue and expenses that do not relate to our ongoing business performance, allowing us to more effectively evaluate our core operating performance and trends from period to period. We believe that Center-level Contribution Margin and as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin help investors and analysts in comparing our results across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures, including net income (loss) and net income (loss) margin.

The Company’s management uses Center-level Contribution Margin as the measure for assessing performance of its operating segments.   In evaluating Center-level Contribution Margin on a center-by-center basis, you should be aware that we do not allocate our sales and marketing expense or corporate, general and administrative expenses across our centers. We define Center-level Contribution Margin as total revenues less external provider costs and cost of care, excluding depreciation and amortization, which includes all medical and pharmacy costs.  

In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculation of Adjusted EBITDA. Our use of the term Adjusted EBITDA varies from others in our industry. We define Adjusted EBITDA as net income (loss) adjusted for interest expense, depreciation and amortization, and provision for income tax as well as addbacks for non-recurring expenses or exceptional items, including relating to management equity compensation, executive severance and recruitment, class action litigation costs and settlement, M&A and de novo center development, business optimization, electronic medical record (EMR) implementation, and loss on minority equity interest. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of our total revenue. For a full reconciliation of Center-level Contribution Margin and Adjusted EBITDA to the most closely comparable GAAP financial measure, please see the attachment to this earnings release.

Schedule 1

InnovAge
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS) (UNAUDITED)

 December 31,
2023
 June 30,
2023
Assets   
Current Assets   
Cash and cash equivalents$54,081  $127,249 
Short-term investments 44,690   46,213 
Restricted cash 15   16 
Accounts receivable, net of allowance ($5,134 – December 31, 2023 and $4,161 – June 30, 2023) 43,456   24,344 
Prepaid expenses 14,460   17,145 
Income tax receivable 262   262 
Total current assets 156,964   215,229 
Noncurrent Assets   
Property and equipment, net 195,623   192,188 
Operating lease assets 26,477   21,210 
Investments 3,611   5,493 
Deposits and other 5,154   3,823 
Goodwill 141,565   124,217 
Other intangible assets, net 4,868   5,198 
Total noncurrent assets 377,298   352,129 
Total assets$534,262  $567,358 
Liabilities and Stockholders' Equity   
Current Liabilities   
Accounts payable and accrued expenses$52,372  $54,935 
Reported and estimated claims 47,247   42,999 
Due to Medicaid and Medicare 10,264   9,142 
Income tax payable 1,212   1,212 
Current portion of long-term debt 3,795   3,795 
Current portion of finance lease obligations 4,526   4,722 
Current portion of operating lease obligations 3,716   3,530 
Deferred revenue    28,115 
Total current liabilities 123,132   148,450 
Noncurrent Liabilities   
Deferred tax liability, net 6,555   6,236 
Finance lease obligations 11,311   13,114 
Operating lease obligations 25,943   18,828 
Other noncurrent liabilities 1,187   1,086 
Long-term debt, net of debt issuance costs 63,162   64,844 
Total liabilities 231,290   252,558 
Commitments and Contingencies   
Redeemable Noncontrolling Interests 11,831   12,708 
Stockholders’ Equity   
Common stock, $0.001 par value; 500,000,000 authorized as of December 31, 2023 and June 30, 2023; 135,893,070 and 135,639,845 issued shares as of December 31, 2023 and June 30, 2023, respectively 136   136 
Additional paid-in capital 335,062   332,107 
Retained deficit (49,695)  (35,944)
Total InnovAge Holding Corp. 285,503   296,299 
Noncontrolling interests 5,638   5,793 
Total stockholders’ equity 291,141   302,092 
Total liabilities and stockholders’ equity$534,262  $567,358 


Schedule 2

InnovAge
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS) (UNAUDITED)

 Three Months Ended December 31, Six Months Ended December 31,
  2023   2022   2023   2022 
Revenues       
Capitation revenue$188,561  $167,140  $370,734  $338,071 
Other service revenue 337   316   648   603 
Total revenues 188,898   167,456   371,382   338,674 
Expenses       
External provider costs 100,964   93,507   200,322   189,744 
Cost of care, excluding depreciation and amortization 54,321   51,376   109,570   104,933 
Sales and marketing 5,859   3,774   11,237   8,187 
Corporate, general and administrative 25,249   28,817   54,197   58,999 
Depreciation and amortization 4,290   3,662   8,559   7,095 
Total expenses 190,683   181,136   383,885   368,958 
Operating Loss (1,785)  (13,680)  (12,503)  (30,284)
        
Other Income (Expense)       
Interest expense, net (935)  (223)  (1,596)  (826)
Other income 874   444   1,517   480 
Other expense (1,882)     (1,882)   
Total other expense (1,943)  221   (1,961)  (346)
Loss Before Income Taxes (3,728)  (13,459)  (14,464)  (30,630)
Provision (Benefit) for Income Taxes 93   (2,912)  319   (6,383)
Net Loss (3,821)  (10,547)  (14,783)  (24,247)
Less: net loss attributable to noncontrolling interests (374)  (754)  (1,032)  (1,381)
Net Loss Attributable to InnovAge Holding Corp.$(3,447) $(9,793) $(13,751) $(22,866)
        
Weighted-average number of common shares outstanding - basic 135,887,613   135,578,888   135,839,007   135,572,503 
Weighted-average number of common shares outstanding - diluted 135,887,613   135,578,888   135,839,007   135,572,503 
        
Net loss per share - basic$(0.03) $(0.07) $(0.10) $(0.17)
Net loss per share - diluted$(0.03) $(0.07) $(0.10) $(0.17)


Schedule 3

InnovAge
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)

 For the Six Months Ended
December 31,
  2023   2022 
Operating Activities   
Net loss$(14,783) $(24,247)
Adjustments to reconcile net loss to net cash used in operating activities   
Gain on disposal of assets (21)  (53)
Provision for uncollectible accounts 2,881   2,244 
Depreciation and amortization 8,559   7,095 
Operating lease rentals 2,346   2,335 
Amortization of deferred financing costs 215   215 
Stock-based compensation 3,589   2,278 
Loss on minority equity interest investment 1,882    
Deferred income taxes 319   (6,381)
Other 9   (424)
Changes in operating assets and liabilities   
Accounts receivable, net (21,430)  (4,980)
Prepaid expenses 3,014   1,631 
Income tax receivable    3,027 
Deposits and other (1,396)  (533)
Accounts payable and accrued expenses (2,245)  (544)
Reported and estimated claims 4,137   (3,339)
Due to Medicaid and Medicare 1,122   1,946 
Operating lease liabilities (2,362)  (2,260)
Deferred revenue (28,115)   
Net cash used by operating activities (42,279)  (21,990)
Investing Activities   
Purchases of property and equipment (4,157)  (14,632)
Purchases of short-term investments (1,179)  (45,000)
Proceeds from sale of short-term investments 3,000    
Acquisition of business (23,916)   
Net cash used in investing activities (26,252)  (59,632)
Financing Activities   
Payments for finance lease obligations (2,107)  (1,452)
Principal payments on long-term debt (1,897)  (1,895)
Taxes paid related to net share settlements of stock-based compensation awards (634)   
Net cash used in financing activities (4,638)  (3,347)
    
DECREASE IN CASH, CASH EQUIVALENTS & RESTRICTED CASH (73,169)  (84,969)
CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD 127,265   184,446 
CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD$54,096  $99,477 
    
Supplemental Cash Flows Information   
Interest paid$1,254  $1,726 
Income taxes paid$  $13 
Property and equipment included in accounts payable$470  $53 
Property and equipment purchased under finance leases$113  $1,541 


Schedule 4

InnovAge
RECONCILIATION OF GAAP AND NON-GAAP MEASURES
(IN THOUSANDS) (UNAUDITED)

Adjusted EBITDA

 Three months ended December 31, Six months ended December 31,
  2023   2022   2023   2022 
      
Net loss$(3,821) $(10,547) $(14,783) $(24,247)
Interest expense, net 935   223   1,596   826 
Depreciation and amortization 4,290   3,662   8,559   7,095 
Provision (benefit) for income tax 93   (2,912)  319   (6,383)
Stock-based compensation 1,766   1,212   3,589   2,512 
Litigation costs and settlement(a) 198   1,282   1,905   1,238 
M&A and de novo center development(b) 284   336   693   622 
Business optimization(c) 774   2,846   2,933   10,035 
EMR implementation(d) 1,370   1,944   3,304   2,534 
Loss on minority equity interest(e)$1,882  $  $1,882  $ 
Adjusted EBITDA$7,771  $(1,954) $9,997  $(5,768)
        
Net loss margin(2.0)% (6.3)% (4.0)% (7.2)%
Adjusted EBITDA margin 4.1% (1.2)%  2.7% (1.7)%


_____________________________
(a)Reflects charges/(credits) related to litigation by stockholders, litigation related to de novo center development, and civil investigative demands. Refer to Note 9, "Commitments and Contingencies" to our condensed consolidated financial statements for more information regarding litigation by stockholders and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy.
(b)Reflects charges related to M&A transaction and integrations, and de novo center developments.
(c)Reflects charges related to business optimization initiatives. Such charges related to one-time investments in projects designed to enhance our technology and compliance systems, improve and support the efficiency and effectiveness of our operations, and third party support to address efforts to remediate deficiencies in audits. For the three months ended December 31, 2023 this includes (i) $0.3 million of costs associated with third party consultants as we implement our core provider initiatives, assess our risk-bearing payor capabilities, and strengthen our enterprise capabilities (ii) $0.3 million of costs related to severance and other organizational costs and (iii) $0.2 million related to other non-recurring charges. For the three months ended December 31, 2022 this includes (i) $0.5 million related to consultants and contractors performing audit and other related services at sanctioned centers, (ii) $0.8 million of costs associated with third party consultants as we implement our core provider initiatives, assess our risk-bearing capabilities, and strengthen our enterprise capabilities and (iii) $0.1 million for related to other non-recurring projects aimed at reducing costs and improving efficiencies. For the six months ended December 31, 2023 this includes (i) $2.1 million of costs associated with third party consultants as we implement our core provider initiatives, assess our risk-bearing payor capabilities, and strengthen our enterprise capabilities (ii) $0.3 million of costs related to severance and other organizational costs and (iii) $0.5 million related to charges for technology improvements, environmental, sustainability, and governance reporting, and other non-recurring charges. For the six months ended December 31, 2022 this includes (i) $1.2 million related to consultants and contractors performing audit and other related services at sanctioned centers, (ii) $5.1 million of costs associated with third party consultants as we implement our core provider initiatives, assess our risk-bearing payor capabilities, and strengthen our enterprise capabilities, and (iii) $0.7 million related to other non-recurring projects aimed at reducing costs and improving efficiencies.
(d)Reflects non-recurring expenses relating to the implementation of a new EMR vendor.
(e)Reflects impairment charges related to our minority equity interest in Jetdoc, Inc.
  


 Three months ended
September 30,
  2023 
  
Net loss$(10,962)
Interest expense, net 661 
Depreciation and amortization 4,269 
Provision (benefit) for income tax 226 
Stock-based compensation 1,823 
Litigation costs and settlement(a) 1,707 
M&A and de novo center development(b) 409 
Business optimization(c) 2,159 
EMR implementation(d) 1,934 
Adjusted EBITDA$2,226 
  
Net income (loss) margin 6.0%
Adjusted EBITDA margin 1.2%


_____________________________
(a)Reflects charges/(credits) related to litigation by stockholders, litigation related to de novo center development, and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy.
(b)Reflects charges related to M&A transaction and integrations, and de novo center developments.
(c)Reflects charges related to business optimization initiatives. Such charges related to one-time investments in projects designed to enhance our technology and compliance systems, improve and support the efficiency and effectiveness of our operations, and third party support to address efforts to remediate deficiencies in audits. For the three months ended September 30, 2023 this includes (i) $1.8 million of costs associated with third party consultants as we implement our core provider initiatives, assess our risk-bearing payor capabilities, and strengthen our enterprise capabilities and (ii) $0.4 million related to other non-recurring projects aimed at reducing costs and improving efficiencies.
(d)Reflects non-recurring expenses relating to the implementation of a new EMR vendor.
  

Center-Level Contribution Margin

    
 Three Months Ended December 31, 2023 Three Months Ended December 31, 2022
(In thousands)PACE All other Totals PACE All other(a) Totals
Capitation revenue$188,561  $  $188,561  $167,140  $  $167,140 
Other service revenue 68   269   337   99   217   316 
Total revenues 188,629   269   188,898   167,239   217   167,456 
External provider costs 100,964      100,964   93,507      93,507 
Cost of care, excluding depreciation and amortization 54,171   150   54,321   51,184   192   51,376 
Center-Level Contribution Margin 33,494   119   33,613   22,548   25   22,573 
Overhead costs(b) 31,108      31,108   32,532   59   32,591 
Depreciation and amortization 4,178   112   4,290   3,555   107   3,662 
Interest expense, net 890   45   935   177   46   223 
Other income (874)     (874)  (444)     (444)
Other expense 1,882      1,882          
Loss Before Income Taxes$(3,690) $(38) $(3,728) $(13,272) $(187) $(13,459)
Loss Before Income Taxes as a % of revenue    (2.0)%     (8.0)%
Center- Level Contribution Margin as a % of revenue     17.8%      13.5%


  
 Three Months Ended September 30, 2023
(In thousands)PACE All other(a) Totals
Capitation revenue$182,173  $  $182,173 
Other service revenue 86   226   312 
Total revenues 182,259   226   182,485 
External provider costs 99,358      99,358 
Cost of care, excluding depreciation and amortization 55,097   153   55,250 
Center-Level Contribution Margin 27,804   73   27,877 
Overhead costs(b) 34,317   9   34,326 
Depreciation and amortization 4,157   112   4,269 
Interest expense, net 616   45   661 
Other income (643)     (643)
Other expense        
Loss Before Income Taxes$(10,643) $(93) $(10,736)
Loss Before Income Taxes as a % of revenue    (5.9)%
Center- Level Contribution Margin as a % of revenue     15.3%


_____________________________
(a)Center-level Contribution Margin from segments below the quantitative thresholds are primarily attributable to the Senior Housing operating segment of the Company. This segment has never met any of the quantitative thresholds for determining reportable segments.
(b)Overhead consists of the Sales and marketing and Corporate, general and administrative financial statement line items.

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.