MedAvail Reports Fourth Quarter and Full-Year 2022 Financial Results
MedAvail Holdings, Inc. (Nasdaq: MDVL) reported its financial results for the year ending December 31, 2022. The company witnessed a nearly 95% revenue increase, exceeding $43 million. To enhance profitability, MedAvail restructured by selling a majority of its SpotRx pharmacy assets to CVS, aiming to reduce operating expenses by $35-37 million this year and cut annual cash usage by 65%. The focus will shift to its MedCenter pharmacy technology, with plans to establish 25 new dispensing MedCenters by the end of 2023, targeting over 100% growth in technology revenue expected to reach $3 million. The company completed a $16 million private placement to strengthen its balance sheet and is optimistic about future profitability.
- Full-year revenue exceeded $43 million, a 95% increase over 2022.
- Completion of a $16 million private placement enhances financial stability.
- Expecting technology revenue of approximately $3 million for 2023, over 100% growth from 2022.
- Restructured and sold a majority of SpotRx assets, indicating a shift away from pharmacy services.
PHOENIX, April 13, 2023 (GLOBE NEWSWIRE) -- MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”), an innovative pharmacy technology company, today reported financial results for the three months and full-year ended December 31, 2022.
“Since assuming the role of CEO in January 2022, I have been impressed by the many growth opportunities addressable by both our pharmacy services and pharmacy technology solutions,” said Mark Doerr, Chief Executive Officer of MedAvail. “However, I believe it is in the best interest of our company to balance topline growth with an alternative path that targets accelerated profitability. As such, we made the difficult decision earlier this year to restructure and sell a majority of our SpotRx pharmacy services assets to CVS. This action will reduce our operating expense run rate by
“As we progress through 2023, we will be focused exclusively on our MedCenter pharmacy technology business as a lean and nimble organization capable of responding quickly to new opportunities as they emerge, primarily within the primary care and urgent care channels where we currently have a majority of our dispensing MedCenters. Longer term, we see opportunities in additional channels and states where we think automated prescription dispensing can play an important role in the future pharmacy landscape.”
“With our recently completed financing, we have a strengthened balance sheet that we believe will support our pharmacy technology growth initiatives, intended to allow us to progress toward profitability without the need for an additional equity capital raise. I am optimistic for what we can achieve as a company this year, and I believe we have created a foundation from which to drive strong, profitable growth over the long-term, to the benefit of our partners, patients and shareholders.”
Recent Highlights
- Completed a successful
$16 million private placement in March 2023. - Announced a strategic restructuring which included the sale of certain assets of the company’s SpotRx pharmacy services business to CVS.
- Post the restructuring, the company currently operates 32 net cumulative dispensing MedCenters in our continuing technology focused business.
Fourth Quarter and Full-year 2022 Highlights
- Full year revenue exceeded
$43 million , approximately a95% increase over 2022. - Achieved a significant milestone with the successful completion of the Epic Willow integration and the availability of the MedCenter platform in the Epic App Orchard Gallery.
- Completed a successful
$50 million private placement by July 2022. - Completed a rewrite of the MedDispense software intended to enable greater flexibility and faster deployment of MedCenters.
Financial Outlook
MedAvail expects stand-alone technology revenue for 2023 to be approximately
MedAvail further expects full-year 2023 gross margins to be in excess of
In addition, the company expects to place an additional 25 net new dispensing MedCenters, which would result in 57 cumulative net dispensing MedCenters generating revenue by the end of 2023.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, April 13, 2023, to discuss its fourth quarter and full-year 2022 financial results. The conference call can be accessed live by dialing (877) 704-4453 for domestic callers or (201) 389-0920 for international callers and referring to Conference ID: 13737951. A webcast of the conference call can be accessed at https://investors.medavail.com. The webcast will be archived and available for replay for at least 90 days after the event.
About MedAvail
MedAvail Holdings, Inc. (NASDAQ: MDVL) is a pharmacy technology company, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com.
Non-GAAP Financial Measures
MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures.
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; preliminary estimates of selected financial results, potential future revenue and cost savings projections and expectations for growth and profitability; restructuring and reorganization targets, customer demand and expansion plans; margin, utilization and cost reduction improvements; customer partnerships and potential financing transactions. 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 our ability to successfully achieve the benefits of a pharmacy technology only business and the efficiencies related to a restructuring and reorganization, and risks relating to our ability to successfully consummate potential strategic, financing and restructuring transactions, as well as other risks discussed under the heading "Risk Factors" in MedAvail’s recent Annual Report on Form 10-K and MedAvail’s Quarterly Reports on Form 10-Q, and other filings MedAvail makes with the Securities and Exchange Commission (“SEC”) in the future. Any preliminary estimates regarding selected 2022 financial results are further subject to the completion of management’s and the audit committee’s final reviews and MedAvail’s other financial closing procedures and are therefore subject to change. You should not place undue reliance on such preliminary information and estimates because they may prove to be materially inaccurate. While we believe that such preliminary information and estimates are based on reasonable assumptions, actual results may vary, and such variations may be material. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements.
Contacts:
Investor Relations
Steven Halper/Caroline Paul
Managing Directors, LifeSci Advisors
ir@medavail.com
SOURCE MedAvail Holdings, Inc.
| MEDAVAIL HOLDINGS, INC. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Pharmacy and hardware revenue | $ | 11,258 | $ | 6,954 | $ | 42,468 | $ | 21,119 | ||||||||
| Service revenue | 92 | 326 | 641 | 1,010 | ||||||||||||
| Total revenue | 11,350 | 7,280 | 43,109 | 22,129 | ||||||||||||
| Cost of products sold and services: | ||||||||||||||||
| Pharmacy and hardware cost of products sold | 11,432 | 7,562 | 40,259 | 21,306 | ||||||||||||
| Service costs | 44 | 80 | 265 | 506 | ||||||||||||
| Total cost of products sold and services | 11,476 | 7,642 | 40,524 | 21,812 | ||||||||||||
| Operating expense: | ||||||||||||||||
| Pharmacy operations | 3,937 | 4,068 | 15,907 | 13,496 | ||||||||||||
| General and administrative | 4,770 | 5,544 | 23,499 | 22,277 | ||||||||||||
| Selling and marketing | 1,748 | 2,148 | 8,486 | 7,204 | ||||||||||||
| Research and development | 163 | 248 | 1,115 | 849 | ||||||||||||
| Total operating expense | 10,618 | 12,008 | 49,007 | 43,826 | ||||||||||||
| Operating loss | (10,744 | ) | (12,370 | ) | (46,422 | ) | (43,509 | ) | ||||||||
| Other gain (loss), net | - | - | - | 206 | ||||||||||||
| Interest income | 1 | 5 | 2 | 79 | ||||||||||||
| Interest expense | (327 | ) | (261 | ) | (1,172 | ) | (589 | ) | ||||||||
| Loss before income taxes | (11,070 | ) | (12,626 | ) | (47,592 | ) | (43,813 | ) | ||||||||
| Income tax expense | - | - | (24 | ) | (2 | ) | ||||||||||
| Net loss and comprehensive loss | $ | (11,070 | ) | $ | (12,626 | ) | $ | (47,616 | ) | $ | (43,815 | ) | ||||
| Net loss per share - basic and diluted | $ | (0.14 | ) | $ | (0.38 | ) | $ | (0.72 | ) | $ | (1.34 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 80,105,540 | 32,851,997 | 65,776,384 | 32,656,325 | ||||||||||||
| MEDAVAIL HOLDINGS, INC. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| (Unaudited) | ||||||||
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,444 | $ | 19,689 | ||||
| Restricted cash | 676 | 400 | ||||||
| Accounts receivable (net of allowance for doubtful accounts of | 2,209 | 1,189 | ||||||
| Inventories | 6,937 | 3,916 | ||||||
| Prepaid expenses and other current assets | 2,663 | 2,191 | ||||||
| Total current assets | 23,929 | 27,385 | ||||||
| Property, plant and equipment, net | 6,455 | 5,692 | ||||||
| Intangible assets, net | 465 | 2,300 | ||||||
| Right-of-use assets | 2,085 | 2,538 | ||||||
| Other assets | 198 | 228 | ||||||
| Total assets | $ | 33,132 | $ | 38,143 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,675 | $ | 2,477 | ||||
| Accrued liabilities | 1,193 | 1,530 | ||||||
| Accrued payroll and benefits | 2,213 | 2,733 | ||||||
| Deferred revenue | 152 | 83 | ||||||
| Current portion of lease obligations | 708 | 682 | ||||||
| Total current liabilities | 5,941 | 7,505 | ||||||
| Long-term debt, net | 4,798 | 9,538 | ||||||
| Long-term portion of lease obligations | 1,569 | 2,027 | ||||||
| Total liabilities | 12,308 | 19,070 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common shares ( | 81 | 33 | ||||||
| Warrants | 11,148 | 1,373 | ||||||
| Additional paid-in-capital | 256,229 | 216,685 | ||||||
| Accumulated other comprehensive loss | (6,928 | ) | (6,928 | ) | ||||
| Accumulated deficit | (239,706 | ) | (192,090 | ) | ||||
| Total shareholders’ equity | 20,824 | 19,073 | ||||||
| Total liabilities and shareholders’ equity | $ | 33,132 | $ | 38,143 | ||||
| MEDAVAIL HOLDINGS, INC. | ||||||||||||
| Supplemental Financial Information - Segments | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Retail Pharmacy Services | Pharmacy Technology | Total | ||||||||||
| Three Months Ended December 31, 2022 | ||||||||||||
| Revenue: | ||||||||||||
| Pharmacy and hardware revenue: | ||||||||||||
| Retail pharmacy revenue | $ | 11,095 | $ | — | $ | 11,095 | ||||||
| Hardware | — | 61 | 61 | |||||||||
| Subscription | — | 102 | 102 | |||||||||
| Total pharmacy and hardware revenue | 11,095 | 163 | 11,258 | |||||||||
| Service revenue: | ||||||||||||
| Software integration | — | — | — | |||||||||
| Software | — | (17 | ) | (17 | ) | |||||||
| Maintenance and support | — | 43 | 43 | |||||||||
| Installation | — | 55 | 55 | |||||||||
| Professional services and other | — | 11 | 11 | |||||||||
| Total service revenue | — | 92 | 92 | |||||||||
| Total revenue | 11,095 | 255 | 11,350 | |||||||||
| Cost of products sold and services | 11,343 | 133 | 11,476 | |||||||||
| Segment gross profit | $ | (248 | ) | $ | 122 | $ | (126 | ) | ||||
| Retail Pharmacy Services | Pharmacy Technology | Total | ||||||||||
| Three Months Ended December 31, 2021 | ||||||||||||
| Revenue: | ||||||||||||
| Pharmacy and hardware revenue: | ||||||||||||
| Retail pharmacy revenue | $ | 6,846 | $ | — | $ | 6,846 | ||||||
| Hardware | — | — | — | |||||||||
| Subscription | — | 108 | 108 | |||||||||
| Total pharmacy and hardware revenue | 6,846 | 108 | 6,954 | |||||||||
| Service revenue: | ||||||||||||
| Software integration | — | — | — | |||||||||
| Software | — | 134 | 134 | |||||||||
| Maintenance and support | — | 47 | 47 | |||||||||
| Installation | — | — | — | |||||||||
| Professional services and other | — | 145 | 145 | |||||||||
| Total service revenue | — | 326 | 326 | |||||||||
| Total revenue | 6,846 | 434 | 7,280 | |||||||||
| Cost of products sold and services | 6,901 | 741 | 7,642 | |||||||||
| Segment gross profit | $ | (55 | ) | $ | (307 | ) | $ | (362 | ) | |||
| MEDAVAIL HOLDINGS, INC. | |||||||||
| Supplemental Financial Information - Segments | |||||||||
| (in thousands) | |||||||||
| (Unaudited) | |||||||||
| Retail Pharmacy Services | Pharmacy Technology | Total | |||||||
| Year Ended December 31, 2022 | |||||||||
| Revenue: | |||||||||
| Pharmacy and hardware revenue: | |||||||||
| Retail pharmacy revenue | $ | 41,747 | $ | - | $ | 41,747 | |||
| Hardware | - | 297 | 297 | ||||||
| Subscription | - | 424 | 424 | ||||||
| Total pharmacy and hardware revenue | 41,747 | 721 | 42,468 | ||||||
| Service revenue: | |||||||||
| Software | - | 210 | 210 | ||||||
| Maintenance and support | - | 170 | 170 | ||||||
| Installation | - | 132 | 132 | ||||||
| Professional services and other | - | 129 | 129 | ||||||
| Total service revenue | - | 641 | 641 | ||||||
| Total revenue | 41,747 | 1,362 | 43,109 | ||||||
| Cost of products sold and services | 39,803 | 721 | 40,524 | ||||||
| Segment gross profit | $ | 1,944 | $ | 641 | $ | 2,585 | |||
| Retail Pharmacy Services | Pharmacy Technology | Total | |||||||
| Year Ended December 31, 2021 | |||||||||
| Revenue: | |||||||||
| Pharmacy and hardware revenue: | |||||||||
| Retail pharmacy revenue | $ | 20,203 | $ | - | $ | 20,203 | |||
| Hardware | - | 470 | 470 | ||||||
| Subscription | - | 446 | 446 | ||||||
| Total pharmacy and hardware revenue | 20,203 | 916 | 21,119 | ||||||
| Service revenue: | |||||||||
| Software | - | 259 | 259 | ||||||
| Maintenance and support | - | 161 | 161 | ||||||
| Installation | - | 39 | 39 | ||||||
| Professional services and other | - | 551 | 551 | ||||||
| Total service revenue | - | 1,010 | 1,010 | ||||||
| Total revenue | 20,203 | 1,926 | 22,129 | ||||||
| Cost of products sold and services | 20,031 | 1,781 | 21,812 | ||||||
| Segment gross profit | $ | 172 | $ | 145 | $ | 317 | |||
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 a commercial agreement, inventory adjustment, merger-related expenses, and 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 December 31, | Years Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (11,070 | ) | $ | (12,626 | ) | $ | (47,616 | ) | $ | (43,815 | ) | ||||
| Adjustments to calculate EBITDA: | ||||||||||||||||
| Interest income | (1 | ) | (5 | ) | (2 | ) | (79 | ) | ||||||||
| Interest expense | 327 | 261 | 1,172 | 589 | ||||||||||||
| Income tax expense | — | — | 24 | 2 | ||||||||||||
| Depreciation and amortization (1) | 1,465 | 569 | 3,998 | 1,827 | ||||||||||||
| EBITDA | $ | (9,279 | ) | $ | (11,801 | ) | $ | (42,424 | ) | $ | (41,476 | ) | ||||
| Adjustments as follows: | ||||||||||||||||
| Inventory cost adjustment | - | 626 | - | 626 | ||||||||||||
| Share-based compensation expense | 555 | 257 | 2,296 | 1,205 | ||||||||||||
| Adjusted EBITDA | $ | (8,724 | ) | $ | (10,918 | ) | $ | (40,128 | ) | $ | (39,645 | ) | ||||
| (1) Excludes | ||||||||||||||||
FAQ
What were MedAvail's revenue results for 2022?
What strategic decision did MedAvail make recently?
What is MedAvail's expected revenue for its technology segment in 2023?
How many new MedCenters does MedAvail plan to establish by the end of 2023?
