MedAvail Reports First Quarter 2022 Financial Results
MedAvail Holdings, Inc. (MDVL) reported a 126% increase in total revenue to $9.1 million for Q1 2022. The company achieved a 14% rise in cumulative MedCenter deployments and a 29% increase in dispensing deployments. However, Pharmacy Technology revenue saw a 56% decline to $0.3 million. Despite robust sales growth, net operating loss widened to $12.8 million from $9.7 million. The company secured approximately $40 million in gross proceeds from a private placement, with an additional $10 million expected.
- Total revenue increased 126% to $9.1 million.
- Retail Pharmacy Services revenue rose 159% to $8.8 million.
- Achieved a 14% increase in total net cumulative MedCenter deployments.
- Secured approximately $40 million in gross proceeds from a private placement.
- Pharmacy Technology revenue decreased 56% to $0.3 million.
- Net operating loss increased to $12.8 million from $9.7 million.
- Adjusted EBITDA loss widened to $11.8 million from $8.9 million.
“I am proud of our team’s strong start to the year. We delivered robust sales growth in the first quarter and achieved a milestone in our Pharmacy Technology business with the completion of our integration with Epic,” said
Recent Operational Highlights
-
Ended first quarter of 2022 with 92 MedCenter total net cumulative deployments, a
14% increase from the end of the fourth quarter of 2021-
Ended first quarter of 2022 with 88 MedCenter total net dispensing deployments, a
29% increase from the end of the fourth quarter of 2021
-
Ended first quarter of 2022 with 88 MedCenter total net dispensing deployments, a
-
Achieved milestone with Epic integration and the availability of the MedCenter platform in the
Epic App Orchard Gallery - Completed rewrite of MedDispense software intended to enable greater flexibility and faster deployment of MedCenters
-
Expanded partnership with
IMA Medical Group to open SpotRx locations across the IMA network inFlorida , including 17 additional and five de novo IMA medical centers -
Broadened partnership with Oak Street Health to add SpotRx locations in four de novo sites in
Arizona -
Expanded partnership with Cano Health to open SpotRx locations in nine additional sites in
Florida -
Important enhancement of leadership team with accomplished executives who bring directly relevant track records of success with the appointments of
Steven Hess to Executive Vice President, General Manager of SpotRx;Bob McClune to Senior Vice President of Data and Analytics; andMatt Broome to Executive Vice President, Technology
First Quarter 2022 and Recent Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended
-
Total revenue increased
126% to$9.1 million -
Total revenue by segment
-
Retail Pharmacy Services revenue increased
159% to$8.8 million -
Pharmacy Technology revenue decreased
56% to$0.3 million
-
Retail Pharmacy Services revenue increased
-
Net operating loss was
compared to$12.8 million $9.7 million -
Adjusted EBITDA loss of
compared to$11.8 million $8.9 million -
The Company completed its first closing of a private placement for the sale of common stock, together with the issuance of warrants to purchase common stock. The first closing of this private placement was on
April 4, 2022 , that yielded gross proceeds of approximately . The second closing is expected to subsequently follow on$40 million July 1, 2022 , following the satisfaction or waiver of the conditions to closing, and yield approximately in gross proceeds. If all warrants that are sold and issued following the completion of these closings are fully exercised, the Company would receive additional gross proceeds of approximately$10 million .$29 million
Conference Call
MedAvail will host a conference call at
Definition of Key Metrics
Dispensing Deployments
We define dispensing deployments as sites that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks.
Net Cumulative Deployments
Net cumulative deployments includes dispensing deployments and installed not yet dispensing deployments, but excludes decommissioned clinics, pilots and demo sites.
About MedAvail
Non-GAAP Financial Measures
MedAvail refers to certain financial measures that are not recognized under
Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth and profitability; customer demand and expansion plans; margin improvement; improvements in deployment efficiency and speed; anticipated proceeds from private offerings; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to risks discussed under the heading "Risk Factors" in MedAvail’s Annual Report on Form 10-K, filed with the
SOURCE
MEDAVAIL HOLDINGS, INC. Consolidated Condensed Statements of Operations (in thousands, except share and per share data) (Unaudited) |
|||||||
|
Three Months Ended |
||||||
|
2022 |
|
2021 (1) |
||||
Revenue: |
|
|
|
||||
Pharmacy and hardware revenue |
$ |
9,014 |
|
|
$ |
3,781 |
|
Service revenue |
|
100 |
|
|
|
246 |
|
Total revenue |
|
9,114 |
|
|
|
4,027 |
|
Cost of products sold and services: |
|
|
|
||||
Pharmacy and hardware cost of products sold |
|
8,563 |
|
|
|
3,526 |
|
Service costs |
|
50 |
|
|
|
181 |
|
Total cost of products sold and services |
|
8,613 |
|
|
|
3,707 |
|
Operating expenses: |
|
|
|
||||
Pharmacy operations |
|
3,929 |
|
|
|
2,593 |
|
General and administrative |
|
6,535 |
|
|
|
5,676 |
|
Selling and marketing |
|
2,313 |
|
|
|
1,534 |
|
Research and development |
|
493 |
|
|
|
168 |
|
Merger expenses |
|
— |
|
|
|
— |
|
Total operating expense |
|
13,270 |
|
|
|
9,971 |
|
Operating loss |
|
(12,769 |
) |
|
|
(9,651 |
) |
Other gain (loss), net |
|
— |
|
|
|
161 |
|
Interest income |
|
1 |
|
|
|
40 |
|
Interest expense |
|
(254 |
) |
|
|
(2 |
) |
Loss before income taxes |
|
(13,022 |
) |
|
|
(9,452 |
) |
Income tax expense |
|
— |
|
|
|
— |
|
Net loss |
$ |
(13,022 |
) |
|
$ |
(9,452 |
) |
(1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow.
MEDAVAIL HOLDINGS, INC. Operating Expense Reclassifications (in thousands) (Unaudited) |
|||||||||
|
Three Months Ended |
|
|
||||||
|
Current presentation |
|
As previously reported |
|
Change |
||||
Pharmacy operations |
$ |
2,593 |
|
$ |
1,911 |
|
$ |
682 |
|
General and administrative |
|
5,676 |
|
|
6,515 |
|
|
(839 |
) |
Selling and marketing |
|
1,534 |
|
|
1,377 |
|
|
157 |
|
|
$ |
9,803 |
|
$ |
9,803 |
|
$ |
— |
|
MEDAVAIL HOLDINGS, INC. Consolidated Condensed Balance Sheets (in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
5,274 |
|
|
$ |
19,689 |
|
Restricted cash |
|
676 |
|
|
|
400 |
|
Accounts receivable (net of allowance for doubtful accounts of |
|
1,748 |
|
|
|
1,189 |
|
Inventories |
|
5,088 |
|
|
|
3,916 |
|
Prepaid expenses and other current assets |
|
3,105 |
|
|
|
2,191 |
|
Total current assets |
|
15,891 |
|
|
|
27,385 |
|
Property, plant and equipment, net |
|
6,175 |
|
|
|
5,692 |
|
Intangible assets, net |
|
2,765 |
|
|
|
2,300 |
|
Right-of-use assets |
|
2,628 |
|
|
|
2,538 |
|
Other assets |
|
233 |
|
|
|
228 |
|
Total assets |
$ |
27,692 |
|
|
$ |
38,143 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
8,527 |
|
|
$ |
6,740 |
|
Short-term debt |
|
— |
|
|
|
— |
|
Deferred revenue |
|
107 |
|
|
|
83 |
|
Current portion of lease obligations |
|
733 |
|
|
|
682 |
|
Total current liabilities |
|
9,367 |
|
|
|
7,505 |
|
Long-term debt, net |
|
9,608 |
|
|
|
9,538 |
|
Long-term portion of lease obligations |
|
2,102 |
|
|
|
2,027 |
|
Other liabilities |
|
— |
|
|
|
— |
|
Total liabilities |
|
21,077 |
|
|
|
19,070 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' deficit: |
|
|
|
||||
Common shares ( |
|
33 |
|
|
|
33 |
|
Warrants |
|
1,373 |
|
|
|
1,373 |
|
Additional paid-in-capital |
|
217,249 |
|
|
|
216,685 |
|
Accumulated other comprehensive loss |
|
(6,928 |
) |
|
|
(6,928 |
) |
Accumulated deficit |
|
(205,112 |
) |
|
|
(192,090 |
) |
Total stockholders' equity |
|
6,615 |
|
|
|
19,073 |
|
Total liabilities and stockholders' equity |
$ |
27,692 |
|
|
$ |
38,143 |
|
MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (in thousands) (Unaudited) |
||||||||
|
|
|
Pharmacy
|
|
Total |
|||
Three Months Ended |
|
|
|
|
|
|||
Revenue: |
|
|
|
|
|
|||
Pharmacy and hardware revenue: |
|
|
|
|
|
|||
Retail pharmacy revenue |
$ |
8,849 |
|
$ |
— |
|
$ |
8,849 |
Hardware |
|
— |
|
|
56 |
|
|
56 |
Subscription |
|
— |
|
|
109 |
|
|
109 |
Total pharmacy and hardware revenue |
|
8,849 |
|
|
165 |
|
|
9,014 |
Service revenue: |
|
|
|
|
|
|||
Software integration |
|
— |
|
|
— |
|
|
— |
Software |
|
— |
|
|
48 |
|
|
48 |
Maintenance and support |
|
— |
|
|
32 |
|
|
32 |
Installation |
|
— |
|
|
6 |
|
|
6 |
Professional services and other |
|
— |
|
|
14 |
|
|
14 |
Total service revenue |
|
— |
|
|
100 |
|
|
100 |
Total revenue |
|
8,849 |
|
|
265 |
|
|
9,114 |
Cost of products sold and services |
|
8,482 |
|
|
131 |
|
|
8,613 |
Segment gross profit |
$ |
367 |
|
$ |
134 |
|
|
501 |
|
|
|
Pharmacy
|
|
Total |
|||
Three Months Ended |
|
|
|
|
|
|||
Revenue: |
|
|
|
|
|
|||
Pharmacy and hardware revenue: |
|
|
|
|
|
|||
Retail pharmacy revenue |
$ |
3,418 |
|
$ |
— |
|
$ |
3,418 |
Hardware |
|
— |
|
|
241 |
|
|
241 |
Subscription |
|
— |
|
|
122 |
|
|
122 |
Total pharmacy and hardware revenue |
|
3,418 |
|
|
363 |
|
|
3,781 |
Service revenue: |
|
|
|
|
|
|||
Software integration |
|
— |
|
|
— |
|
|
— |
Software |
|
— |
|
|
33 |
|
|
33 |
Maintenance and support |
|
— |
|
|
31 |
|
|
31 |
Installation |
|
— |
|
|
16 |
|
|
16 |
Professional services and other |
|
— |
|
|
166 |
|
|
166 |
Total service revenue |
|
— |
|
|
246 |
|
|
246 |
Total revenue |
|
3,418 |
|
|
609 |
|
|
4,027 |
Cost of products sold and services |
|
3,329 |
|
|
378 |
|
|
3,707 |
Segment gross profit |
$ |
89 |
|
$ |
231 |
|
|
320 |
Non-GAAP Financial Measures
To supplement our consolidated condensed financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for non-recurring revenue from stock-based compensation expense.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
MEDAVAIL HOLDINGS, INC. Unaudited Reconciliation of GAAP to Non-GAAP Measures (in thousands) |
|||||||
|
Three Months Ended |
||||||
|
2022 |
|
2021 (1) |
||||
Net loss |
$ |
(13,022 |
) |
|
$ |
(9,452 |
) |
Adjustments to calculate EBITDA: |
|
|
|
||||
Interest income |
|
(1 |
) |
|
|
(40 |
) |
Interest expense |
|
254 |
|
|
|
2 |
|
Income tax expense |
|
— |
|
|
|
— |
|
Depreciation and amortization (1) |
|
432 |
|
|
|
340 |
|
EBITDA |
$ |
(12,337 |
) |
|
$ |
(9,150 |
) |
Adjustments as follows: |
|
|
|
||||
Share-based compensation expense |
|
564 |
|
|
|
260 |
|
Adjusted EBITDA |
$ |
(11,773 |
) |
|
$ |
(8,890 |
) |
(1) Excludes
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512006020/en/
Investor Relations
ir@medavail.com
Source:
FAQ
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