Performant Financial Corporation (Nasdaq: PFMT), a leading provider of technology-enabled audit, recovery, and related analytics services in the United States, with a focus in the healthcare payment integrity industry, today reported the following financial results for its fourth quarter and full year ended December 31, 2022:
Fourth Quarter Financial Highlights
- Total revenues of $29.2 million, compared to $31.6 million in the prior year period
- Healthcare revenues of $26.0 million, compared to $25.6 million in the prior year period
- Net loss of $0.2 million or $(0.003) per diluted share, compared to a net loss of $2.6 million, or $(0.04) per diluted share, in the prior year period
- Adjusted EBITDA of $2.3 million, compared to $5.0 million in the prior year period
- Adjusted net income of $442 thousand, or $0.01 per diluted share, compared to adjusted net loss of $35 thousand or $(0.001) per diluted share, in the prior year period
Full Year 2022 Financial Highlights
- Total revenues of $109.2 million, compared to $124.4 million in the prior year period
- Healthcare revenues of $94.7 million, compared to $77.5 million in the prior year period
- Net loss of $6.5 million, or $(0.09) per diluted share, compared to net loss of $10.3 million, or $(0.17) per diluted share in the prior year period
- Adjusted EBITDA of $0.9 million, compared to $11.9 million in the prior year period
- Adjusted net loss of $5.2 million, or $(0.07) per diluted share, compared to adjusted net loss of $3.1 million, or $(0.05) per diluted share, in the prior year period
Fourth Quarter 2022 Results
Healthcare revenues in the fourth quarter of 2022 were $26.0 million, up from $25.6 million in the prior year period. Recovery revenues in the fourth quarter were $0.1 million, compared to $2.3 million in the prior year period. Revenues from Customer Care / Outsourced Services in the fourth quarter were $3.1 million, compared to $3.7 million in the prior year period.
Net loss for the fourth quarter of 2022 was $0.2 million, or $(0.003) per share on a fully diluted basis, compared to a net loss of $2.6 million, or $(0.04) per share, on a fully diluted basis in the prior year period. Adjusted EBITDA for the fourth quarter was $2.3 million compared to $5.0 million in the prior year period. Adjusted net income for the fourth quarter was $442 thousand, or $0.01 per share on a fully diluted basis, compared to adjusted net loss of $35 thousand, or $(0.001) per fully diluted share, in the prior year period.
Full Year 2022 Results
Revenues for the full year ended December 31, 2022 were $109.2 million, compared to revenues of $124.4 million in the prior year. Healthcare revenues were $94.7 million, compared to $77.5 million in the prior year. Recovery revenues were $0.2 million, compared to $33.4 million in the prior year. Revenues from Customer Care / Outsourced Services were $14.3 million compared to $13.5 million in the prior year.
Net loss for the full year ended December 31, 2022 was $6.5 million, or $(0.09) per share on a fully diluted basis, compared to net loss of $10.3 million, or $(0.17) per share on a fully diluted basis, in the prior year. Adjusted EBITDA was $0.9 million, compared to $11.9 million in the prior year. Adjusted net loss was $5.2 million, or $(0.07) per fully diluted share, compared to adjusted net loss of $3.1 million, or $(0.05) per fully diluted share in the prior year.
“2022 was a strong year, as Performant achieved numerous strategic milestones. These milestones started with the Health and Human Services, Office of the Inspector General claim audit and consultative services award, followed by the CMS RAC Region 2 award, and culminated with our successful recompete of the CMS Medicare Secondary Payer Commercial Repayment Center contract,” commented Simeon Kohl, President of Performant. “2022 was also a breakthrough year for our work in the commercial payer market, as we added 21 new implementations and made meaningful progress in our efforts to further scale our operations. We anticipate that our sales pipeline will support a similar cadence in 2023.”
As of December 31, 2022, the Company had cash, cash equivalents and restricted cash of approximately $23.5 million.
Business Commentary
“We are quite pleased with our operational results for 2022, particularly in consideration of the transition we have completed into a healthcare driven company over the past few years,” added Rohit Ramchandani, Senior Vice President of Finance and Strategy at Performant. “Looking ahead to 2023, we are excited to keep building upon the momentum of our historical and current pipeline of implementations, whilst investing into speed to revenue and margin expansion opportunities. We are introducing full year 2023 healthcare revenue guidance to be in the range of $105M to $110M. In terms of EBITDA, we anticipate full year 2023 EBITDA in the range of $2 - $5 million, which is inclusive of $10M to $14M of expected investment spend, consistent with our investment in growth initiatives and improving our operational efficiencies.”
Amendment to Credit Agreement
The Company recently completed an amendment to its existing Credit Agreement with MUFG Union Bank, N.A. in response to certain macroeconomic factors and the Company’s current growth initiatives. The details of this amendment will be contained in the Company’s Form 10-K for the year ended December 31, 2022 to be filed with the Securities and Exchange Commission expected to be filed on or before March 16, 2022.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, to supplement our consolidated financial statements, the Company presents adjusted EBITDA, adjusted net income (loss), and adjusted net income (loss) per diluted share. These measures are not in accordance with accounting principles generally accepted in the United States of America (US GAAP) and accordingly reconciliations of adjusted EBITDA and adjusted net income (loss) to net income (loss) determined in accordance with US GAAP are included in the “Reconciliation of Non-GAAP Results” table at the end of this press release. We have included adjusted EBITDA and adjusted net income (loss) in this press release because they are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends and to prepare and approve our annual budget. Accordingly, we believe that adjusted EBITDA and adjusted net income (loss) provide useful information to investors and analysts in understanding and evaluating our operating results in the same manner as our management and board of directors. Our use of adjusted EBITDA and adjusted net income (loss) has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under US GAAP. In particular, many of the adjustments to our US GAAP financial measures reflect the exclusion of items, specifically interest, tax and depreciation and amortization expenses, equity-based compensation expense and certain other non-operating expenses, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be calculated differently from similarly titled non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.
Earnings Conference Call
The Company will hold a conference call to discuss its fourth quarter and full year 2022 results today at 5:00 p.m. Eastern. A live webcast of the call may be accessed on the Investor Relations section of the Company’s website at investors.performantcorp.com. The conference call is also available by dialing 877-704-4453 (domestic) or 201-389-0920 (international).
A replay of the call will be available on the Company's website or by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13736959. The telephonic replay will be available approximately three hours after the call, through March 22, 2023.
About Performant Healthcare Solutions
Performant provides technology-enabled audit, recovery, and analytics services in the United States to the healthcare industry. Performant works with healthcare payers through claims auditing and eligibility-based (also known as coordination-of-benefits, or COB) services to identify improper payments. The Company engages clients in both government and commercial markets. The Company also has a call center which serves clients with complex consumer engagement needs. Clients of the Company typically operate in complex and highly regulated environments and contract for their payment integrity needs in order to reduce losses on improper healthcare payments.
To learn more, please visit http://www.performanthealth.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's outlook for revenues, net income (loss), and adjusted EBITDA in 2023 and beyond. These forward-looking statements are based on current expectations, estimates, assumptions, and projections that are subject to change and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s ability to generate revenue following long implementation periods associated with new customer contracts; client relationships and the Company’s ability to maintain such client relationships; downturns in domestic or global economic conditions and other macroeconomic factors; the Company’s ability to generate sufficient cash flows to fund our ongoing operations and other liquidity needs; the Company’s ability to hire and retain employees with specialized skills that are required for its healthcare business; anticipated trends and challenges in our business and competition in the markets in which the Company operates; the impact of COVID-19 on the Company’s business and operations, opportunities and expectations for the markets in which the Company operates; the Company’s indebtedness and compliance, or failure to comply, with restrictive covenants in the Company’s credit agreement; opportunities and expectations for growth in the various markets in which the Company operates; anticipated trends and challenges in the Company’s business and competition in the markets in which it operates; the adaptability of the Company’s technology platform to new markets and processes; the Company’s ability to invest in and utilize our data and analytics capabilities to expand its capabilities; the Company’s growth strategy of expanding in existing markets and considering strategic alliances or acquisitions; the Company’s ability to meet liquidity and working capital needs; expectations regarding future expenses; expected future financial performance; and the Company’s ability to comply with and adapt to industry regulations and compliance demands.
More information on potential factors that could affect the Company's financial condition and operating results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's annual report on Form 10-K for the year ended December 31, 2022 and subsequently filed reports on Forms 10-Q and 8-K. The forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements to conform these statements to actual results or revised expectations.
PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands, except per share amounts) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
Assets |
December 31, 2022 |
|
December 31, 2021 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
23,384 |
|
|
$ |
17,347 |
|
Restricted cash |
|
81 |
|
|
|
2,203 |
|
Trade accounts receivable, net of allowance for doubtful accounts |
|
15,794 |
|
|
|
20,808 |
|
Contract assets |
|
11,460 |
|
|
|
8,113 |
|
Prepaid expenses and other current assets |
|
3,665 |
|
|
|
3,077 |
|
Income tax receivable |
|
3,123 |
|
|
|
3,159 |
|
Total current assets |
|
57,507 |
|
|
|
54,707 |
|
Property, equipment, and leasehold improvements, net |
|
10,897 |
|
|
|
15,708 |
|
Goodwill |
|
47,372 |
|
|
|
47,372 |
|
Right-of-use assets |
|
2,057 |
|
|
|
3,235 |
|
Other assets |
|
1,000 |
|
|
|
963 |
|
Total assets |
$ |
118,833 |
|
|
$ |
121,985 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of notes payable, net of unamortized debt issuance costs of $17 and $11, respectively |
$ |
983 |
|
|
$ |
489 |
|
Accrued salaries and benefits |
|
6,938 |
|
|
|
8,476 |
|
Accounts payable |
|
1,262 |
|
|
|
1,124 |
|
Other current liabilities |
|
2,252 |
|
|
|
3,732 |
|
Contract liabilities |
|
438 |
|
|
|
634 |
|
Estimated liability for appeals and disputes |
|
1,106 |
|
|
|
1,190 |
|
Lease liabilities |
|
1,228 |
|
|
|
1,862 |
|
Total current liabilities |
|
14,207 |
|
|
|
17,507 |
|
Notes payable, net of current portion and unamortized debt issuance costs of $316 and $416, respectively |
|
18,184 |
|
|
|
19,084 |
|
Lease liabilities |
|
1,076 |
|
|
|
1,803 |
|
Other liabilities |
|
881 |
|
|
|
1,168 |
|
Total liabilities |
|
34,348 |
|
|
|
39,562 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, $0.0001 par value. Authorized, 500,000 shares at December 31, 2022 and 2021, respectively; issued and outstanding, 75,505 and 69,281 shares at December 31, 2022 and 2021, respectively |
|
7 |
|
|
|
7 |
|
Additional paid-in capital |
|
142,261 |
|
|
|
133,662 |
|
Accumulated deficit |
|
(57,783 |
) |
|
|
(51,246 |
) |
Total stockholders’ equity |
|
84,485 |
|
|
|
82,423 |
|
Total liabilities and stockholders’ equity |
$ |
118,833 |
|
|
$ |
121,985 |
|
PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues |
$ |
29,242 |
|
|
$ |
31,579 |
|
|
$ |
109,184 |
|
|
$ |
124,393 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Salaries and benefits |
|
22,211 |
|
|
|
20,369 |
|
|
|
85,312 |
|
|
|
87,440 |
|
Other operating expenses |
|
6,827 |
|
|
|
8,373 |
|
|
|
30,772 |
|
|
|
38,269 |
|
Total operating expenses |
|
29,038 |
|
|
|
28,742 |
|
|
|
116,084 |
|
|
|
125,709 |
|
Income (loss) from operations |
|
204 |
|
|
|
2,837 |
|
|
|
(6,900 |
) |
|
|
(1,316 |
) |
(Loss) gain on sale of certain recovery contracts |
|
— |
|
|
|
(25 |
) |
|
|
382 |
|
|
|
2,403 |
|
Gain on sale of land and buildings |
|
— |
|
|
|
— |
|
|
|
1,120 |
|
|
|
— |
|
Interest expense |
|
(359 |
) |
|
|
(5,447 |
) |
|
|
(1,007 |
) |
|
|
(11,313 |
) |
Loss before provision for income taxes |
|
(155 |
) |
|
|
(2,635 |
) |
|
|
(6,405 |
) |
|
|
(10,226 |
) |
Provision for income taxes |
|
80 |
|
|
|
1 |
|
|
|
132 |
|
|
|
62 |
|
Net loss |
$ |
(235 |
) |
|
$ |
(2,636 |
) |
|
$ |
(6,537 |
) |
|
$ |
(10,288 |
) |
Net income (loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
— |
|
|
$ |
(0.04 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.17 |
) |
Diluted |
$ |
— |
|
|
$ |
(0.04 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.17 |
) |
Weighted average shares |
|
|
|
|
|
|
|
||||||||
Basic |
|
74,291 |
|
|
|
69,210 |
|
|
|
72,937 |
|
|
|
60,461 |
|
Diluted |
|
74,291 |
|
|
|
69,210 |
|
|
|
72,937 |
|
|
|
60,461 |
|
PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Twelve Months Ended |
||||||
|
December 31, |
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(6,537 |
) |
|
$ |
(10,288 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Loss on disposal of assets and impairment of long-lived assets |
|
41 |
|
|
|
722 |
|
Depreciation and amortization |
|
4,524 |
|
|
|
5,188 |
|
Right-of-use assets amortization |
|
1,178 |
|
|
|
1,808 |
|
Stock-based compensation |
|
3,036 |
|
|
|
2,640 |
|
Interest expense from debt issuance costs |
|
95 |
|
|
|
3,586 |
|
Loss on debt extinguishment |
|
— |
|
|
|
3,371 |
|
Gain on sale of certain recovery contracts |
|
(382 |
) |
|
|
(2,403 |
) |
Gain on sale of land and buildings |
|
(1,120 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade accounts receivable |
|
5,014 |
|
|
|
1,665 |
|
Contract assets |
|
(3,347 |
) |
|
|
(3,647 |
) |
Prepaid expenses and other current assets |
|
(588 |
) |
|
|
707 |
|
Income tax receivable |
|
36 |
|
|
|
1,599 |
|
Other assets |
|
(37 |
) |
|
|
127 |
|
Accrued salaries and benefits |
|
(1,538 |
) |
|
|
(323 |
) |
Accounts payable |
|
138 |
|
|
|
717 |
|
Contract liabilities and other current liabilities |
|
(1,660 |
) |
|
|
(292 |
) |
Estimated liability for appeals and disputes |
|
(84 |
) |
|
|
176 |
|
Lease liabilities |
|
(1,361 |
) |
|
|
(2,104 |
) |
Other liabilities |
|
(285 |
) |
|
|
(2,333 |
) |
Net cash (used in) provided by operating activities |
|
(2,877 |
) |
|
|
916 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property, equipment, and leasehold improvements |
|
(3,585 |
) |
|
|
(3,416 |
) |
Proceeds from sale of certain recovery contracts |
|
382 |
|
|
|
3,146 |
|
Proceeds from sales of property, equipment, and leasehold improvements |
|
4,934 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
1,731 |
|
|
|
(270 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayment of notes payable |
|
(500 |
) |
|
|
(60,863 |
) |
Debt issuance costs paid |
|
(2 |
) |
|
|
(581 |
) |
Taxes paid related to net share settlement of stock awards |
|
— |
|
|
|
(633 |
) |
Proceeds from exercise of warrants |
|
5,563 |
|
|
|
— |
|
Proceeds from exercise of stock options |
|
— |
|
|
|
41 |
|
Borrowings from notes payable |
|
— |
|
|
|
20,000 |
|
Proceeds from public offering, net of costs |
|
— |
|
|
|
42,644 |
|
Net cash provided by (used in) financing activities |
|
5,061 |
|
|
|
608 |
|
Net increase in cash, cash equivalents and restricted cash |
|
3,915 |
|
|
|
1,254 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
19,550 |
|
|
|
18,296 |
|
Cash, cash equivalents and restricted cash at end of year |
$ |
23,465 |
|
|
$ |
19,550 |
|
|
|
|
|
||||
Reconciliation of the consolidated statements of cash flows to the consolidated balance sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
23,384 |
|
|
$ |
17,347 |
|
Restricted cash |
|
81 |
|
|
|
2,203 |
|
Total cash, cash equivalents and restricted cash at end of period |
$ |
23,465 |
|
|
$ |
19,550 |
|
Non-cash financing activities: |
|
|
|
||||
Recognition of earnout shares issued |
$ |
— |
|
|
$ |
801 |
|
Recognition of warrants issued in debt financing |
$ |
— |
|
|
$ |
5,237 |
|
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid (received) for income taxes |
$ |
250 |
|
|
$ |
(589 |
) |
Cash paid for interest |
$ |
702 |
|
|
$ |
4,310 |
|
PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||||||||||||
Reconciliation of Non-GAAP Results |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(235 |
) |
|
$ |
(2,636 |
) |
|
$ |
(6,537 |
) |
|
$ |
(10,288 |
) |
Provision for income taxes |
|
80 |
|
|
|
1 |
|
|
|
132 |
|
|
|
62 |
|
Interest expense (1) |
|
359 |
|
|
|
5,447 |
|
|
|
1,007 |
|
|
|
11,313 |
|
Stock based compensation |
|
824 |
|
|
|
677 |
|
|
|
3,036 |
|
|
|
2,640 |
|
Depreciation and amortization |
|
1,169 |
|
|
|
1,305 |
|
|
|
4,524 |
|
|
|
5,188 |
|
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
636 |
|
Severance expenses (4) |
|
85 |
|
|
|
284 |
|
|
|
274 |
|
|
|
2,160 |
|
Non-core operating expenses (5) |
|
1 |
|
|
|
(95 |
) |
|
|
10 |
|
|
|
2,588 |
|
Gain on sale of certain recovery contracts (6) |
|
— |
|
|
|
25 |
|
|
|
(382 |
) |
|
|
(2,403 |
) |
Gain on sale of land and buildings (7) |
|
— |
|
|
|
— |
|
|
|
(1,120 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
2,283 |
|
|
$ |
5,008 |
|
|
$ |
944 |
|
|
$ |
11,896 |
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Reconciliation of Adjusted Net Income (Loss): |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(235 |
) |
|
$ |
(2,636 |
) |
|
$ |
(6,537 |
) |
|
$ |
(10,288 |
) |
Stock based compensation |
|
824 |
|
|
|
677 |
|
|
|
3,036 |
|
|
|
2,640 |
|
Amortization of intangibles assets (2) |
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
705 |
|
Amortization of debt issuance costs (3) |
|
24 |
|
|
|
1,133 |
|
|
|
95 |
|
|
|
3,586 |
|
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
636 |
|
Severance expenses (4) |
|
85 |
|
|
|
284 |
|
|
|
274 |
|
|
|
2,160 |
|
Non-core operating expenses (5) |
|
1 |
|
|
|
(95 |
) |
|
|
10 |
|
|
|
2,588 |
|
Gain on sale of certain recovery contracts (6) |
|
— |
|
|
|
25 |
|
|
|
(382 |
) |
|
|
(2,403 |
) |
Gain on sale of land and buildings (7) |
|
— |
|
|
|
— |
|
|
|
(1,120 |
) |
|
|
— |
|
Tax adjustments (8) |
|
(257 |
) |
|
|
561 |
|
|
|
(526 |
) |
|
|
(2,726 |
) |
Adjusted net loss |
$ |
442 |
|
|
$ |
(35 |
) |
|
$ |
(5,150 |
) |
|
$ |
(3,102 |
) |
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Adjusted Earnings Per Diluted Share: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(235 |
) |
|
$ |
(2,636 |
) |
|
$ |
(6,537 |
) |
|
$ |
(10,288 |
) |
Plus: Adjusted items per reconciliation of adjusted net income |
|
677 |
|
|
|
2,601 |
|
|
|
1,387 |
|
|
|
7,186 |
|
Adjusted net income (loss) |
$ |
442 |
|
|
$ |
(35 |
) |
|
$ |
(5,150 |
) |
|
$ |
(3,102 |
) |
Adjusted earnings per diluted share |
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
Diluted average shares outstanding (9) |
|
75,455 |
|
|
|
69,210 |
|
|
|
69,873 |
|
|
|
60,461 |
|
We are providing the following preliminary estimates of our financial results for the year ending December 31, 2022:
|
Twelve months ended December 31, |
|||||
|
2022 Actual |
|
2023 Estimate |
|||
Adjusted EBITDA: |
|
|
|
|||
Net loss |
$ |
(6,537 |
) |
|
$ |
(6,300) to (7,500) |
Provision for income taxes |
|
132 |
|
|
(250) to 750 |
|
Interest expense (1) |
|
1,007 |
|
|
1,000 to 2,000 |
|
Stock based compensation |
|
3,036 |
|
|
2,500 to 3,500 |
|
Depreciation and amortization |
|
4,524 |
|
|
5,000 to 6,000 |
|
Severance expenses (4) |
|
274 |
|
|
50 to 250 |
|
Non-core operating expenses (5) |
|
10 |
|
|
|
— |
Gain on sale of certain recovery contracts (6) |
|
(382 |
) |
|
|
— |
Gain on sale of land and buildings (7) |
|
(1,120 |
) |
|
|
— |
Adjusted EBITDA |
$ |
944 |
|
|
$ |
2,000 to 5,000 |
(1) |
Represents interest expense and amortization of debt issuance costs related to our Credit Agreement. |
|
(2) |
Represents amortization of intangibles related to the acquisition of Performant by an affiliate of Parthenon Capital Partners in 2004. |
|
(3) |
Represents amortization of debt issuance costs related to our Credit Agreement. |
|
(4) |
Represents severance expenses incurred in connection with a reduction in force for our non-healthcare recovery services. |
|
(5) |
Represents professional fees related to strategic corporate development activities. |
|
(6) |
Represents gain on the sale of certain non-healthcare recovery contracts in 2021 and 2022. |
|
(7) |
Represents gain on the sale of land and buildings in 2022. |
|
(8) |
Represents tax adjustments assuming a marginal tax rate of 27.5% at full profitability. |
|
(9) |
While net loss for the three months ended December 31, 2022 was $(235), the computation of adjusted net income (loss) results in adjusted net income of $442. Therefore, the calculation of the adjusted earnings per diluted share for the three months ended December 31, 2022 includes dilutive common share equivalents of 1,164 added to the basic weighted average shares of 74,291. |
We are providing the following historical breakdown of the quarterly and annual revenue contributions under the new contribution breakdowns of the Company's healthcare revenue results for the years ended December 31, 2022, 2021, and 2020:
|
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||
|
|
March 31, 2022 |
|
June 30, 2022 |
|
September 30, 2022 |
|
December 31, 2022 |
|
December 31, 2022 |
||||||||||
|
|
(in thousands) |
||||||||||||||||||
Eligibility-based |
|
$ |
14,214 |
|
$ |
12,417 |
|
$ |
13,142 |
|
$ |
13,511 |
|
$ |
53,284 |
|||||
Claims-based |
|
|
9,150 |
|
|
|
9,339 |
|
|
|
10,377 |
|
|
|
12,516 |
|
|
|
41,382 |
|
Healthcare Total |
|
|
23,364 |
|
|
|
21,756 |
|
|
23,519 |
|
|
|
26,027 |
|
|
|
94,666 |
|
|
Recovery |
|
|
118 |
|
|
|
7 |
|
|
|
41 |
|
|
|
75 |
|
|
|
241 |
|
Customer Care / Outsourced Services |
|
|
3,601 |
|
|
|
3,918 |
|
|
|
3,618 |
|
|
|
3,140 |
|
|
|
14,277 |
|
Total |
|
$ |
27,083 |
|
|
$ |
25,681 |
|
$ |
27,178 |
|
|
$ |
29,242 |
|
|
$ |
109,184 |
|
|
|
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||
|
|
March 31, 2021 |
|
June 30, 2021 |
|
September 30, 2021 |
|
December 31, 2021 |
|
December 31, 2021 |
||||||||||
|
|
(in thousands) |
||||||||||||||||||
Eligibility-based |
|
$ |
7,911 |
|
|
$ |
11,577 |
|
|
$ |
12,727 |
|
|
$ |
16,061 |
|
|
$ |
48,276 |
|
Claims-based |
|
|
5,375 |
|
|
|
7,025 |
|
|
|
7,280 |
|
|
|
9,498 |
|
|
|
29,178 |
|
Healthcare Total |
|
|
13,286 |
|
|
|
18,602 |
|
|
|
20,007 |
|
|
|
25,559 |
|
|
|
77,454 |
|
Recovery |
|
|
14,491 |
|
|
|
11,091 |
|
|
|
5,490 |
|
|
|
2,333 |
|
|
|
33,405 |
|
Customer Care / Outsourced Services |
|
|
3,613 |
|
|
|
3,149 |
|
|
|
3,085 |
|
|
|
3,687 |
|
|
|
13,534 |
|
Total |
|
$ |
31,390 |
|
|
$ |
32,842 |
|
|
$ |
28,582 |
|
|
$ |
31,579 |
|
|
$ |
124,393 |
|
|
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||
|
|
March 31, 2020 |
|
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
December 31, 2020 |
||||||||||
|
|
(in thousands) |
||||||||||||||||||
Eligibility-based |
|
$ |
10,949 |
|
|
$ |
11,292 |
|
|
$ |
13,480 |
|
|
$ |
14,126 |
|
|
$ |
49,847 |
|
Claims-based |
|
|
6,575 |
|
|
|
3,301 |
|
|
|
4,086 |
|
|
|
4,739 |
|
|
|
18,701 |
|
Healthcare Total |
|
|
17,524 |
|
|
|
14,593 |
|
|
|
17,566 |
|
|
|
18,865 |
|
|
|
68,548 |
|
Recovery |
|
|
24,265 |
|
|
|
16,167 |
|
|
|
15,443 |
|
|
|
17,521 |
|
|
|
73,396 |
|
Customer Care / Outsourced Services |
|
|
4,099 |
|
|
|
3,025 |
|
|
|
3,219 |
|
|
|
3,650 |
|
|
|
13,993 |
|
Total |
|
$ |
45,888 |
|
|
$ |
33,785 |
|
|
$ |
36,228 |
|
|
$ |
40,036 |
|
|
$ |
155,937 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005846/en/
Contacts
Richard Zubek
Investor Relations
925-960-4988
investors@performantcorp.com
