Welcome to our dedicated page for Cano Health news (Ticker: CANO), a resource for investors and traders seeking the latest updates and insights on Cano Health stock.
Cano Health, Inc. (NYSE: CANO) is a high-touch, technology-powered healthcare company that provides personalized, value-based primary care to approximately 310,000 members across the United States and Puerto Rico. Founded in 2009 and headquartered in Miami, Florida, Cano Health focuses on transforming healthcare by improving the health, wellness, and quality of life for its patients through primary care medical centers and affiliated providers.
Recently, Cano Health has made significant strides in refining its operational footprint. On September 26, 2023, the company announced the sale of assets associated with its senior-focused primary care centers in Texas and Nevada to CenterWell Senior Primary Care for approximately $66.7 million. This transaction is part of Cano Health's strategy to streamline operations, focusing on improving performance in its core Florida market. The proceeds from this sale have strengthened the company's balance sheet, allowing it to remain in compliance with its debt covenants and enhance its liquidity to $109 million.
In addition, Cano Health appointed Eladio Gil as Interim Chief Financial Officer on September 29, 2023. Gil's extensive experience in healthcare finance is expected to drive further operational efficiencies and financial stability. On November 2, 2023, the company completed a 1-for-100 reverse stock split to regain compliance with NYSE listing requirements and make its stock more attractive to investors.
As of November 9, 2023, the company reported third-quarter 2023 financial results showing a 23% increase in capitated revenue year-over-year, despite higher third-party medical costs. Cano Health continues to exit non-core markets, such as California, New Mexico, and Puerto Rico, aiming to focus resources on its core Florida operations.
On February 4, 2024, Cano Health entered a Restructuring Support Agreement (RSA) with lenders holding a significant portion of its debt. This agreement included filing for prearranged voluntary Chapter 11 proceedings to facilitate debt reduction and operational restructuring. Supported by $150 million in new debtor-in-possession financing, the company expects to emerge from Chapter 11 with a stronger financial position by Q3 2024.
With its ongoing Transformation Plan, Cano Health aims to achieve approximately $290 million in annualized cost reductions by the end of 2024. Through this plan, the company seeks to enhance patient engagement, restructure contracts, and improve the efficiency and quality of care delivery.
Cano Health has faced serious shareholder concerns regarding management practices and governance following the resignation of major shareholders from its board. The group, which owns 36% of Cano's shares, criticized CEO Dr. Marlow Hernandez for his capital allocation and strategic decisions that have led to an -83% shareholder return over the past year and a staggering -92.5% since going public in 2021. They highlighted reckless spending of approximately $535 million from its initial capital and most of $1 billion in debt capital in misguided acquisitions. The letter calls for urgent governance changes and the need for a new leadership team focused on enhancing shareholder value, particularly by refocusing on the high-potential Florida Medicare Advantage market.
Cano Health announced the appointment of Mark Kent as Chief Strategy Officer, aiming to enhance operations and drive profitable growth. Kent will oversee strategy development and improve efficiency across various administrative functions, leading to consolidated operations. His extensive experience in primary care, including founding healthcare startups and executive roles, positions him to advance Cano Health's mission to deliver high-quality primary care. Cano Health serves approximately 310,000 members through value-based healthcare across multiple states and Puerto Rico.
Cano Health, Inc. (NYSE: CANO) addressed the resignation of three board directors, expressing disappointment over their focus on short-term performance. The company emphasized its commitment to improving operational execution and financial strength, despite acknowledging recent disappointing share price performance. Cano Health aims to enhance cost discipline and achieve positive free cash flow while maintaining its mission of providing value-based primary care. The management insists on healthy board discussions to drive shareholder value and has a solid track record in lowering hospital admissions and medical costs, serving approximately 310,000 members.
Barry Sternlicht has resigned from the Board of Directors of Cano Health (NYSE: CANO), effective immediately. He cited a lack of progress in the company’s profitability and a troubling management approach as reasons for his departure. Despite investing $50 million in the company and supporting its mission, Sternlicht expressed concern over what he perceives as poor governance and management decisions leading to a significant decline in stock value—over 90% since debut. Sternlicht also indicated that he cannot align with the board's support for CEO Marlow Hernandez, believing it harms shareholder interests.
Cano Health reported significant financial results for Q4 and full year 2022, marking total revenue of $680.4 million in Q4, up 38% year-over-year, and $2.74 billion for the full year, representing a 70% increase.
Despite the revenue growth, Cano Health faced a net loss of $301.7 million in Q4, influenced by a $323 million non-cash goodwill impairment. Adjusted EBITDA improved to $35.7 million in Q4 from $11.1 million previously.
The company anticipates a membership increase to 375,000-385,000 and revenue guidance of $3.10-$3.25 billion for 2023 while adjusting its medical cost ratio expectations to 81%-82%.
Cano Health, Inc. (NYSE: CANO) announced the closing of a $150 million senior secured term loan on February 24, 2023, maturing November 23, 2027. The loan has an interest rate of 14% for the first two years, thereafter dropping to 13%. The lenders include Diameter Capital Partners and Rubicon Founders, who received warrants for 29.5 million shares of Class A common stock. For Q4 2022, Cano Health estimated total revenue at $680 million and a net loss of $(302) million, including a $323 million non-cash goodwill impairment. Membership rose to approximately 310,000.
Cano Health, a value-based primary care provider, will announce its financial results for Q4 and full year 2022 on March 1, 2023, after market close. A conference call will be held at 5:00 PM ET to discuss these results. Investors can join the call by dialing (888) 660-6359 for U.S. participants or (929) 203-0867 for international participants, using conference ID 8371699. Additionally, Cano Health executives will attend the Cowen 43rd Annual Health Care Conference in Boston on March 6, 2023, featuring a fireside chat at 9:50 AM ET. The presentation will be available for live streaming on the Cano Health Investor Relations website.
Cano Health, as of November 9, 2022, reported its financial results for Q3 2022. Total membership reached 294,596, including 168,346 Medicare members, reflecting a 40% year-over-year increase. Total revenue was $665.0 million, up 33% year-over-year. Despite these gains, the company reported a net loss of $(112.0) million, largely due to a $65.7 million fair value adjustment on warrant liabilities. Adjusted EBITDA surged 211% to $42.5 million. Updated guidance for full-year 2022 projects total revenue between $2.70 billion and $2.75 billion, lower than prior estimates.
Cano Health, Inc. (NYSE: CANO) will host a conference call on November 9, 2022, at 5:00 PM ET to discuss its third quarter 2022 financial results. The earnings report will be released prior to the call. Interested parties can join the live call by dialing (888) 660-6359 for U.S. participants or (929) 203-0867 for international participants, using conference ID 8371699. A replay will be available on the company's investor relations website for 30 days following the call.
Cano Health Inc. (NYSE: CANO), a value-based primary care provider, will participate in the Morgan Stanley 20th Annual Global Healthcare Conference on September 13, 2022. The event will feature a fireside chat with Dr. Marlow Hernandez, CEO, and Brian Koppy, CFO at 4:05 p.m. ET. A live webcast will be available on Cano's Investor Relations website and will be archived for later viewing. Cano Health serves over 280,000 members across nine states and Puerto Rico, focusing on personalized, high-touch care.
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