Convey Announces Advisory Services Management Update

Rhea-AI Summary

Convey Holding Parent, Inc. (NYSE: CNVY) announced a management change on June 28, 2021, with Arjun Aggarwal transitioning to an advisory role and joining Rubicon Founders as an Operating Partner. Kyle Stern will lead the Advisory Services segment. CEO Stephen Farrell emphasized their commitment to increasing shareholder returns, targeting over 15% annual revenue growth and over 20% Adjusted EBITDA growth. The company reported $59.6 million in Adjusted EBITDA and a net loss of $0.5 million for the twelve months ending March 31, 2021, alongside a significant stock purchase by management.

Positive

• Achieved $59.6 million in Adjusted EBITDA for the twelve months ended March 31, 2021.
• Targeting long-term revenue growth of over 15% annually.
• Aiming for long-term Adjusted EBITDA growth exceeding 20% annually.
• Management purchased over $1.9 million in stock, signaling confidence.

Negative

• Reported a net loss of $0.5 million from continuing operations for the twelve months ended March 31, 2021.

FORT LAUDERDALE, Fla., June 28, 2021 /PRNewswire/ -- Convey Holding Parent, Inc. (NYSE: CNVY) ("Convey"), a leading healthcare technology and services company, today announced that Arjun Aggarwal is moving into an advisory role for Convey and joining Rubicon Founders ("Rubicon") as an Operating Partner. Arjun was previously the co-head of Convey's Advisory Services segment alongside Kyle Stern, who will become sole head of the Advisory Services segment and lead over 130 full time advisors for Medicare Advantage plans.

Stephen Farrell, CEO of Convey, commented, "I am excited to continue our relationship with Arjun as an advisor, investor and industry partner to Convey." We are grateful for his contributions and look forward to working closely with him and Rubicon going forward."

Rubicon was founded by Adam Boehler, former Director of the Center for Medicare and Medicaid Innovation at the Centers for Medicare and Medicaid Services.

Adam Boehler commented, "Rubicon is focused on building and growing transformational healthcare companies and wants entrepreneurial partners like Convey to provide technology and advice. I am looking forward to partnering with Arjun and to continue to develop our relationship with Convey."

Arjun Aggarwal said, "I look forward to driving future success as I continue my partnership with Convey in both my advisory and Rubicon roles."

Mr. Farrell continued, "We are focused on driving shareholder returns by increasing revenue, earnings, and cash flow from operations. We achieved $59.6 million of Adjusted EBITDA and $0.5 million net loss from continuing operations in the twelve months ended March 31, 2021, and are targeting long-term revenue growth in excess of 15% annually and long-term Adjusted EBITDA growth in excess of 20% annually. As a sign of senior management's commitment and confidence, we purchased over $1.9 million in stock on June 18, 2021."

About Convey

Convey is a specialized healthcare technology and services company that is committed to providing clients with healthcare-specific, compliant member support solutions utilizing technology, engagement, and analytics. Convey's administrative solutions for government-sponsored health plans help to optimize member interactions, ensure compliance, and support end-to-end Medicare processes. By combining its purpose-built technology platforms with dedicated and flexible business process solutions, Convey creates better business results and better healthcare consumer experiences on behalf of business customers and partners. Convey's clients include some of the nation's leading health insurance plans and pharmacy benefit management firms. Convey's healthcare-focused teams help millions of Americans navigate the complex Medicare Advantage and Part D landscape.

Non-GAAP Financial Measure

The non-GAAP financial measure shown in this press release excludes various items detailed further below.

We define EBITDA as net loss from continuing operations adjusted for depreciation and amortization, net interest expense and income tax provision. We define Adjusted EBITDA as EBITDA further adjusted for certain items of a significant or unusual nature, including change in fair value of contingent consideration, cost of COVID-19, non-cash stock compensation expense, transaction related costs and certain other costs.

A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is included below. Adjusted EBITDA is not calculated in accordance with, and is not an alternative for, comparable financial measures calculated in accordance with GAAP, and our calculation of Adjusted EBITDA may differ from similar non-GAAP financial measures used by other companies. Management believes that the presentation of non-GAAP results, when shown in conjunction with corresponding GAAP measures, provides useful information to management and investors regarding financial and business trends related to Convey's operating results.

Reconciliation to Adjusted EBITDA

	For the twelve months ended March 31, 2021
	(In Millions)
Net loss from continuing operations	(0.5)
Depreciation and amortization	28.6
Interest expense, net	20.1
Income tax provision	(1.6)
EBITDA, excluding discontinuing operations	$               46.6
Other Adjustments
Change in fair value of contingent consideration	(10.8)
Cost of COVID-19	10.5
Non-cash stock compensation expense	4.4
Transaction related costs	4.9
HealthScape and Pareto acquisition bonus	1.7
Other*	2.3
Adjusted EBITDA	$               59.6

* Other includes other individual immaterial adjustments related to legal fees associated with obtaining the incremental loans, contract termination costs assessed upon the early termination of a facility lease, severance costs incurred as a result of eliminating certain positions, management fees, and professional fees for assistance in the implementation of ASC 606.

Forward-Looking Statements

This press release contains forward-looking statements. Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth and strategies, are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan" and other words and terms of similar meaning. Any such statements, other than statements of historical fact, are based on management's current expectations, estimates, projections, beliefs and assumptions about Convey, and its industry. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Convey's control, difficult to predict and could cause actual results to differ materially from those expected or forecasted in such forward-looking statements. Such statements speak only as of the time when made, and Convey undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Media Contact

Tom Pelegrin
Senior Vice President & Chief Revenue Officer
investorrelations@conveyhs.com

 

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SOURCE Convey Health Solutions

FAQ

What management changes did Convey announce on June 28, 2021?

Convey announced that Arjun Aggarwal is moving to an advisory role and joining Rubicon Founders as an Operating Partner, while Kyle Stern will become the sole head of the Advisory Services segment.

What were Convey's Adjusted EBITDA figures for the fiscal year ending March 31, 2021?

Convey reported an Adjusted EBITDA of $59.6 million for the twelve months ended March 31, 2021.

What are Convey's long-term growth targets?

Convey is targeting long-term revenue growth in excess of 15% annually and long-term Adjusted EBITDA growth exceeding 20% annually.

Did Convey report any net losses in their financial results?

Yes, Convey reported a net loss of $0.5 million from continuing operations for the twelve months ending March 31, 2021.

What is the significance of the stock purchase by Convey's management?

Management purchased over $1.9 million in stock, indicating their confidence in the company's future performance and commitment to shareholder returns.