P3 Health Partners Announces Fourth Quarter and Full Year 2024 Results
P3 Health Partners (NASDAQ: PIII) reported its Q4 and full-year 2024 financial results, showing mixed performance. Full-year revenue reached $1.50 billion, up 18% year-over-year, with capitated revenue increasing 18% to $1.48 billion.
The company's at-risk membership grew 14% to 123,800 members. However, financial metrics showed significant challenges: Full-year net loss widened to $310.4 million from $186.4 million, while medical margin decreased 37% to $85.5 million. Q4 2024 results included total revenue of $370.7 million (up 7%) but showed a gross profit loss of $39.5 million.
CEO Aric Coffman highlighted the company's fundamentally strong business model and identified $130M+ in programmatic opportunities to improve financial sustainability.
P3 Health Partners (NASDAQ: PIII) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. Il fatturato annuale ha raggiunto 1,50 miliardi di dollari, con un incremento del 18% rispetto all'anno precedente, con un aumento del fatturato capitato del 18% a 1,48 miliardi di dollari.
Il numero di membri a rischio dell'azienda è cresciuto del 14%, raggiungendo 123.800 membri. Tuttavia, i parametri finanziari hanno mostrato sfide significative: la perdita netta annuale è aumentata a 310,4 milioni di dollari rispetto ai 186,4 milioni di dollari dell'anno precedente, mentre il margine medico è diminuito del 37% a 85,5 milioni di dollari. I risultati del quarto trimestre 2024 hanno incluso un fatturato totale di 370,7 milioni di dollari (in aumento del 7%), ma hanno mostrato una perdita di profitto lordo di 39,5 milioni di dollari.
Il CEO Aric Coffman ha evidenziato il modello di business fondamentalmente solido dell'azienda e ha identificato oltre 130 milioni di dollari in opportunità programmatiche per migliorare la sostenibilità finanziaria.
P3 Health Partners (NASDAQ: PIII) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto. Los ingresos anuales alcanzaron 1.50 mil millones de dólares, un aumento del 18% en comparación con el año anterior, con ingresos capitados que aumentaron un 18% a 1.48 mil millones de dólares.
La membresía en riesgo de la empresa creció un 14% hasta 123,800 miembros. Sin embargo, los indicadores financieros mostraron desafíos significativos: la pérdida neta anual se amplió a 310.4 millones de dólares desde 186.4 millones de dólares, mientras que el margen médico disminuyó un 37% a 85.5 millones de dólares. Los resultados del cuarto trimestre de 2024 incluyeron ingresos totales de 370.7 millones de dólares (un aumento del 7%), pero mostraron una pérdida de utilidad bruta de 39.5 millones de dólares.
El CEO Aric Coffman destacó el modelo de negocio fundamentalmente sólido de la empresa e identificó más de 130 millones de dólares en oportunidades programáticas para mejorar la sostenibilidad financiera.
P3 Health Partners (NASDAQ: PIII)는 2024년 4분기 및 전체 연도 재무 결과를 발표하며 혼합된 성과를 보였습니다. 연간 수익은 15억 달러에 도달했으며, 전년 대비 18% 증가했으며, 자본 수익도 18% 증가하여 14억 8천만 달러에 달했습니다.
회사의 위험 회원 수는 14% 증가하여 123,800명이 되었습니다. 그러나 재무 지표는 상당한 도전 과제를 나타냈습니다: 연간 순손실은 1억 310.4만 달러로 증가했으며, 이는 1억 186.4만 달러에서 증가한 수치입니다. 의료 마진은 37% 감소하여 8천 5백 5십만 달러에 이르렀습니다. 2024년 4분기 결과는 총 수익 3억 7천 7백만 달러(7% 증가)를 포함했지만, 3천 9백 5십만 달러의 총 이익 손실을 보였습니다.
CEO 아릭 코프만은 회사의 기본적으로 강한 비즈니스 모델을 강조하며 재정 지속 가능성을 개선하기 위한 1억 3천만 달러 이상의 프로그램 기회를 확인했습니다.
P3 Health Partners (NASDAQ: PIII) a annoncé ses résultats financiers du quatrième trimestre et de l'année complète 2024, montrant une performance mitigée. Le chiffre d'affaires annuel a atteint 1,50 milliard de dollars, en hausse de 18 % par rapport à l'année précédente, avec des revenus capités augmentant de 18 % pour atteindre 1,48 milliard de dollars.
Le nombre de membres à risque de l'entreprise a augmenté de 14 % pour atteindre 123 800 membres. Cependant, les indicateurs financiers ont montré des défis significatifs : la perte nette annuelle s'est creusée à 310,4 millions de dollars contre 186,4 millions de dollars, tandis que la marge médicale a diminué de 37 % pour atteindre 85,5 millions de dollars. Les résultats du quatrième trimestre 2024 ont inclus un chiffre d'affaires total de 370,7 millions de dollars (en hausse de 7 %), mais ont montré une perte de bénéfice brut de 39,5 millions de dollars.
Le PDG Aric Coffman a souligné le modèle commercial fondamentalement solide de l'entreprise et a identifié plus de 130 millions de dollars d'opportunités programmatiques pour améliorer la durabilité financière.
P3 Health Partners (NASDAQ: PIII) hat seine Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der Jahresumsatz erreichte 1,50 Milliarden Dollar, was einem Anstieg von 18% im Vergleich zum Vorjahr entspricht, während die kapitierte Einnahmen um 18% auf 1,48 Milliarden Dollar stiegen.
Die Mitgliederzahl mit Risiko des Unternehmens wuchs um 14% auf 123.800 Mitglieder. Allerdings zeigten die finanziellen Kennzahlen erhebliche Herausforderungen: Der Nettoverlust für das gesamte Jahr weitete sich auf 310,4 Millionen Dollar aus, verglichen mit 186,4 Millionen Dollar im Vorjahr, während die medizinische Marge um 37% auf 85,5 Millionen Dollar sank. Die Ergebnisse des vierten Quartals 2024 beinhalteten einen Gesamtumsatz von 370,7 Millionen Dollar (ein Anstieg von 7%), zeigten jedoch einen Bruttogewinnverlust von 39,5 Millionen Dollar.
CEO Aric Coffman hob das grundsätzlich starke Geschäftsmodell des Unternehmens hervor und identifizierte über 130 Millionen Dollar an programmatischen Chancen zur Verbesserung der finanziellen Nachhaltigkeit.
- Revenue grew 18% YoY to $1.50 billion
- At-risk membership increased 14% to 123,800
- $130M+ identified in programmatic opportunities for financial improvement
- Net loss widened to $310.4 million from $186.4 million YoY
- Medical margin decreased 37% to $85.5 million
- Q4 gross profit loss of $39.5 million vs $20.8 million loss prior year
- Adjusted EBITDA loss increased to $167.2 million from $85.5 million
Insights
P3 Health Partners' Q4 and full-year 2024 results reveal concerning financial deterioration despite revenue growth. Revenue increased
The company's losses have dramatically deepened, with full-year net loss increasing to
The widening gap between revenue growth and profitability indicates fundamental issues with the company's value-based care model. Despite management's optimistic references to
These results raise serious questions about P3's path to profitability in the competitive value-based care market. While management affirmed 2025 guidance, the company must demonstrate substantial operational improvements to reverse its negative financial trajectory.
Revenue increased
Affirming 2025 guidance
Management to Host Conference Call and Webcast [March 27, 2025] at 4:30 PM ET
“Our business model remains fundamentally strong as we continue to deliver member and top-line growth, quality outcomes, and provider retention,” said Aric Coffman, CEO of P3. “With the
Fourth Quarter 2024 Financial Results
-
Total revenue was
, an increase of$370.7 million 7% compared to in the fourth quarter of the prior year$346.9 million -
Capitated revenue was
, an increase of$367.5 million 7% compared to in the fourth quarter of the prior year$342.8 million -
Gross profit was a loss of
, as compared to negative$39.5 million in the fourth quarter of the prior year. Gross profit PMPM was a loss of$20.8 million , as compared to a loss of$103 in the fourth quarter of the prior year$65 -
Medical margin(1) was
compared to$7.3 million in the prior year. Medical margin PMPM(1) was$9.1 million compared to a medical margin PMPM of$19 in the prior year$28 -
Net loss was
compared to a net loss of$129.1 million in the fourth quarter of the prior year. Net loss PMPM was$69.1 million compared to a net loss PMPM of$335 in the prior year$220 -
Adjusted EBITDA loss(1) was
compared to$67.6 million in the fourth quarter of the prior year. Adjusted EBITDA loss PMPM(1) was$44.3 million compared to Adjusted EBITDA loss PMPM of$175 in the fourth quarter of the prior year$138
Full-Year 2024 Financial Results
-
At-risk membership of 123,800, an increase of approximately
14% compared to 108,900 in the prior year(2) -
Total revenue was
, an increase of$1.50 billion 18% compared to in the prior year$1.27 billion -
Capitated revenue was
, an increase of$1.48 billion 18% compared to in the prior year$1.25 billion -
Gross profit was a loss of
, as compared to positive$58.9 million in the prior year. Gross profit PMPM was a loss of$31.6 million , compared to a positive$52 PMPM in the prior year$25 -
Medical margin(1) was
, an decrease of$85.5 million 37% compared to in the prior year. Medical margin PMPM(1) was$135.1 million , a decrease of$75 48% compared to a medical margin PMPM of in the prior year$108 -
Net loss was
compared to a net loss of$310.4 million in the prior year$186.4 million -
Adjusted EBITDA loss(1) was
compared to an Adjusted EBITDA loss(1) of$167.2 million in the prior year. Adjusted EBITDA loss PMPM(1) was$85.5 million compared to Adjusted EBITDA loss PMPM(1) of$147 in the prior year$68
|
Fiscal 2025 Guidance |
||
|
Year Ended December 31, 2025 |
||
|
Low |
High |
|
At-risk Members |
|
109,000 |
119,000 |
Total Revenues (in millions) |
|
|
|
Medical Margin(1)(3) (in millions) |
|
|
|
Medical Margin(3) PMPM |
|
|
|
Adjusted EBITDA(3) (in millions) |
|
|
|
(1) |
Adjusted EBITDA, Adjusted EBITDA per member, per month (“PMPM”), medical margin, and medical margin PMPM are non-GAAP financial measures. For reconciliations of these measures to the most directly comparable GAAP measures, if applicable, and more information regarding the Company’s use of non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures.” |
|
(2) |
See “Key Performance Metrics” for additional information on how the Company defines “at-risk members.” |
|
(3) |
The Company is not able to provide a quantitative reconciliation of guidance for Adjusted EBITDA, medical margin and medical margin PMPM to net income (loss), gross profit and gross profit PMPM, the most directly comparable GAAP measures, respectively, and has not provided forward-looking guidance for net income (loss), because of the uncertainty around certain items that may impact net income (loss), gross profit (loss) or gross profit (loss) PMPM that are not within our control or cannot be reasonably predicted without unreasonable effort. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” below. |
The foregoing 2025 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the “Cautionary Note Regarding Forward-Looking Statements” included in this release. Management does not assume any obligation to update these estimates.
Management to Host Conference Call and Webcast on [March 27, 2025] at 4:30 PM ET
Title & Webcast |
P3 Health Fourth Quarter and Full Year 2024 Earnings Conference Call |
Date & Time |
March 27, 2025, 4:30pm Eastern Time |
Conference Call Details |
Toll-Free 1-833-316-0546 (US) International 1-412-317-0692 Ask to be joined into the P3 Health Partners call |
The conference call will also be webcast live in the “Events & Presentations” section of the Investor page of the P3 website (ir.p3hp.org). The Company’s press release will be available at ir.p3hp.org website in advance of the conference call. An archived recording of the webcast will be available at ir.p3hp.org for a period of 90 days following the conference call. |
About P3 Health Partners (NASDAQ: PIII):
P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 3,100 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 27 counties across five states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit www.p3hp.org and follow us on @p3healthpartners and Facebook.com/p3healthpartners.
Non-GAAP Financial Measures
In addition to the financial results prepared in accordance with accounting principles generally accepted in the
Key Performance Metrics
In addition to our GAAP and non-GAAP financial information, the Company also monitors “at-risk members” to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management’s assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of fluctuations in risk adjustments; our ability to establish and maintain effective internal controls and the impact of material weaknesses we have identified; our ability to maintain the listing of our securities on Nasdaq; increased labor costs and medical expense; our ability to recruit and retain qualified team members and independent physicians; and the factors described under Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on [March 27, 2024], and in our subsequent filings with the SEC.
All information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release.
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) |
||||||
December 31, 2024 |
December 31, 2023 |
|||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash |
$ |
38,816 |
|
$ |
36,320 |
|
Restricted cash |
|
5,286 |
|
|
4,614 |
|
Health plan receivable, net of allowance for credit losses of |
|
121,266 |
|
|
118,497 |
|
Clinic fees, insurance and other receivable |
|
3,947 |
|
|
2,973 |
|
Prepaid expenses and other current assets |
|
14,422 |
|
|
3,613 |
|
Assets held for sale |
|
403 |
|
|
— |
|
TOTAL CURRENT ASSETS |
|
184,140 |
|
|
166,017 |
|
Property and equipment, net |
|
5,734 |
|
|
8,686 |
|
Intangible assets, net |
|
574,350 |
|
|
666,733 |
|
Other long-term assets |
|
19,196 |
|
|
19,531 |
|
TOTAL ASSETS (1) |
||||||
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
|
|
||||
CURRENT LIABILITIES: |
||||||
Accounts payable |
$ |
8,442 |
|
$ |
8,663 |
|
Accrued expenses and other current liabilities |
|
29,416 |
|
|
36,884 |
|
Accrued payroll |
|
2,722 |
|
|
3,506 |
|
Health plan settlements payable |
|
55,565 |
|
|
34,992 |
|
Claims payable |
|
255,089 |
|
|
178,009 |
|
Premium deficiency reserve |
|
67,368 |
|
|
13,670 |
|
Accrued interest |
|
12,460 |
|
|
23,648 |
|
Current portion of long-term debt |
|
65,000 |
|
|
— |
|
Short-term debt |
|
— |
|
|
— |
|
Liabilities held for sale |
|
353 |
|
|
— |
|
TOTAL CURRENT LIABILITIES |
|
496,415 |
|
|
299,372 |
|
Operating lease liability |
|
11,339 |
|
|
13,622 |
|
Warrant liabilities |
|
10,312 |
|
|
1,085 |
|
Contingent consideration |
|
— |
|
|
4,907 |
|
Long-term debt, net |
|
89,824 |
|
|
108,319 |
|
Other Long-Term Liabilities |
|
26,001 |
|
|
— |
|
TOTAL LIABILITIES (1) |
|
633,891 |
|
|
427,305 |
|
COMMITMENTS AND CONTINGENCIES (Note 13) |
|
|
||||
MEZZANINE EQUITY: |
|
|
||||
Redeemable non-controlling interest |
|
73,593 |
|
|
291,532 |
|
STOCKHOLDERS’ EQUITY: |
|
|
||||
Class A common stock, |
|
16 |
|
|
12 |
|
Class V common stock, |
|
20 |
|
|
20 |
|
Additional paid in capital |
|
579,093 |
|
|
509,442 |
|
Accumulated deficit |
|
(503,193 |
) |
|
(367,344 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
75,936 |
|
|
142,130 |
|
TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | $ |
783,420 |
$ |
860,967 |
(1) |
The Company’s consolidated balance sheets include the assets and liabilities of its consolidated variable interest entities (“VIEs”). As discussed in Note 20 “Variable Interest Entities,” P3 LLC is itself a VIE. P3 LLC represents substantially all the assets and liabilities of the Company. As a result, the language and amounts below refer only to VIEs held at the P3 LLC level. The consolidated balance sheets include total assets that can be used only to settle obligations of P3 LLC’s consolidated VIEs totaling |
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
OPERATING REVENUE: | |||||||||||||||
Capitated revenue |
$ |
367,456 |
|
$ |
342,836 |
|
$ |
1,483,602 |
|
$ |
1,252,309 |
|
|||
Other patient service revenue |
|
3,230 |
|
|
4,025 |
|
|
16,853 |
|
|
14,066 |
|
|||
TOTAL OPERATING REVENUE |
|
370,686 |
|
|
346,861 |
|
|
1,500,455 |
|
|
1,266,375 |
|
|||
OPERATING EXPENSE: |
|
|
|
|
|||||||||||
Medical expense |
|
410,224 |
|
|
367,679 |
|
|
1,559,372 |
|
|
1,234,740 |
|
|||
Premium deficiency reserve |
|
37,927 |
|
|
(3,344 |
) |
|
53,698 |
|
|
(12,705 |
) |
|||
Corporate, general and administrative expense |
|
31,366 |
|
|
24,431 |
|
|
112,596 |
|
|
122,362 |
|
|||
Sales and marketing expense |
|
461 |
|
|
721 |
|
|
1,331 |
|
|
3,233 |
|
|||
Depreciation and amortization |
|
21,153 |
|
|
21,634 |
|
|
86,058 |
|
|
86,675 |
|
|||
Impairment of Assets Held for Sale |
|
8,058 |
|
|
— |
|
|
8,058 |
|
|
— |
|
|||
TOTAL OPERATING EXPENSE |
|
509,189 |
|
|
411,121 |
|
|
1,821,113 |
|
|
1,434,305 |
|
|||
OPERATING LOSS |
|
(138,503 |
) |
|
(64,260 |
) |
|
(320,658 |
) |
|
(167,930 |
) |
|||
OTHER INCOME (EXPENSE): |
|
|
|
|
|||||||||||
Interest expense, net |
|
(6,834 |
) |
|
(4,046 |
) |
|
(22,173 |
) |
|
(15,985 |
) |
|||
Mark-to-market of stock warrants |
|
7,488 |
|
|
760 |
|
|
22,114 |
|
|
433 |
|
|||
Other |
|
384 |
|
|
206 |
|
|
1,457 |
|
|
(249 |
) |
|||
Gain on asset sale, net |
|
13,269 |
|
|
— |
|
|
13,269 |
|
|
— |
|
|||
TOTAL OTHER (EXPENSE) INCOME |
|
14,307 |
|
|
(3,080 |
) |
|
14,667 |
|
|
(15,801 |
) |
|||
LOSS BEFORE INCOME TAXES |
|
(124,196 |
) |
|
(67,340 |
) |
|
(305,991 |
) |
|
(183,731 |
) |
|||
PROVISION FOR INCOME TAXES |
|
(4,952 |
) |
|
(1,767 |
) |
|
(4,387 |
) |
|
(2,695 |
) |
|||
NET LOSS |
(129,148 |
) |
(69,107 |
) |
(310,378 |
) |
(186,426 |
) |
|||||||
LESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NON- |
|
(70,531 |
) |
|
(43,645 |
) |
|
(174,529 |
) |
|
(128,653 |
) |
|||
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST |
$ |
(58,617 |
) |
$ |
(25,462 |
) |
$ |
(135,849 |
) |
$ |
(57,773 |
) |
|||
|
|
|
|
|
|||||||||||
NET LOSS PER SHARE (Note 16): |
|
|
|
|
|||||||||||
Basic |
|
(0.36 |
) |
|
(0.22 |
) |
|
(0.94 |
) |
|
(0.61 |
) |
|||
Diluted |
|
(0.36 |
) |
|
(0.22 |
) |
|
(1.08 |
) |
|
(0.63 |
) |
|||
|
|
|
|
|
|||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Note 16): |
|
|
|
|
|||||||||||
Basic |
|
162,634 |
|
|
115,303 |
|
|
145,175 |
|
|
94,889 |
|
|||
Diluted |
|
162,634 |
|
|
115,303 |
|
|
146,998 |
|
|
294,590 |
|
P3 HEALTH PARTNERS INC. and SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
Year Ended December 31, |
|||||||
2024 |
|
2023 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||
Net loss |
$ |
(310,378 |
) |
$ |
(186,426 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|||||
Depreciation and amortization |
|
86,058 |
|
|
86,675 |
|
|
Equity-based compensation |
|
5,752 |
|
|
5,979 |
|
|
Amortization of original issue discount and debt issuance costs |
|
87 |
|
|
472 |
|
|
Accretion of contingent consideration |
|
— |
|
|
113 |
|
|
Gain on write off of contingent consideration |
|
(4,907 |
) |
|
— |
|
|
Gain on asset sale |
|
(13,269 |
) |
|
— |
|
|
Impairment of assets held for sale |
|
8,058 |
|
|
— |
|
|
Mark-to-market adjustment of stock warrants |
|
(22,114 |
) |
|
(433 |
) |
|
Premium deficiency reserve |
|
53,698 |
|
|
(12,705 |
) |
|
Changes in operating assets and liabilities: |
|
|
|||||
Health plan receivable |
|
(2,769 |
) |
|
(46,555 |
) |
|
Clinic fees, insurance, and other receivable |
|
(990 |
) |
|
4,560 |
|
|
Prepaid expenses and other current assets |
|
(10,834 |
) |
|
(1,243 |
) |
|
Other long-term assets |
|
(43 |
) |
|
(58 |
) |
|
Accounts payable, accrued expenses, and other current liabilities |
|
(8,101 |
) |
|
15,988 |
|
|
Accrued payroll |
|
(784 |
) |
|
282 |
|
|
Health plan settlements payable |
|
20,573 |
|
|
21,384 |
|
|
Claims payable |
|
77,080 |
|
|
26,802 |
|
|
Accrued interest |
|
7,895 |
|
|
9,587 |
|
|
Other long-term liabilities |
|
5,897 |
|
|
— |
|
|
Deferred income taxes |
|
(1,090 |
) |
|
— |
|
|
Operating lease liability |
|
53 |
|
|
(450 |
) |
|
Net cash used in operating activities |
|
(110,128 |
) |
|
(76,028 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|||||
Purchases of property and equipment |
|
— |
|
|
(1,827 |
) |
|
Proceeds from asset sale |
|
14,525 |
|
|
— |
|
|
Net cash provided by (used in) investing activities |
|
14,525 |
|
|
(1,827 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|||||
Proceeds from long-term debt, net of original issue discount |
|
88,057 |
|
|
14,101 |
|
|
Payment of debt issuance costs |
|
(103 |
) |
|
(173 |
) |
|
Proceeds from liability-classified warrants and private placement offering, net of offering costs paid |
|
40,496 |
|
|
86,595 |
|
|
Proceeds from at-the-market sales, net of offering costs paid |
|
33 |
|
|
— |
|
|
Deferred offering costs paid |
|
(507 |
) |
|
(175 |
) |
|
Payment of tax withholdings upon settlement of restricted stock unit awards |
|
(103 |
) |
|
(16 |
) |
|
Repayment of short-term and long-term debt |
|
(30,973 |
) |
|
— |
|
|
Proceeds from short-term debt |
|
1,871 |
|
|
— |
|
|
Net cash provided by financing activities |
|
98,771 |
|
|
100,332 |
|
|
Net change in cash and restricted cash |
|
3,168 |
|
|
22,477 |
|
|
Cash and restricted cash, beginning of year |
|
40,934 |
|
|
18,457 |
|
|
Cash and restricted cash, end of year |
$ |
44,102 |
|
$ |
40,934 |
|
P3 HEALTH PARTNERS INC. and SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
|||||||
(in thousands) |
|||||||
Year Ended December 31, |
|||||||
|
2024 |
|
|
2023 |
|
||
Supplemental disclosures of cash flow information: |
|||||||
Cash paid for interest |
$ |
14,191 |
|
$ |
5,813 |
|
|
Cash paid for income taxes |
$ |
5,477 |
|
$ |
567 |
|
|
Supplemental disclosures of non-cash investing and financing information: |
|||||||
Operating lease liabilities arising from obtaining new right-of-use assets |
$ |
617 |
|
$ |
7,222 |
|
|
Operating lease liabilities and right-of-use assets reduced due to lease modification or termination |
$ |
(92 |
) |
$ |
— |
|
|
Increase in accrued expenses related to debt issuance costs and original issue discount |
$ |
307 |
|
$ |
212 |
|
|
Increase in accounts payable related to private placement offering costs |
$ |
686 |
|
$ |
12 |
|
|
Increase in accounts payable related to at-the-market offering costs |
$ |
— |
|
$ |
19 |
|
|
Increase in accrued expenses related to at-the-market offering costs |
$ |
— |
|
$ |
206 |
|
|
Increase in other receivable related to at-the-market sales proceeds |
$ |
— |
|
$ |
33 |
|
|
Restricted stock unit awards issued in satisfaction of executive transaction bonuses |
$ |
— |
|
$ |
5,000 |
|
|
Remeasurement adjustment to redeemable noncontrolling interest resulting from ownership changes |
$ |
(22,831 |
) |
$ |
(117,860 |
) |
|
Fair value adjustment to redeemable noncontrolling interest |
$ |
(20,579 |
) |
$ |
20,579 |
|
|
Warrants issued in connection with new debt |
$ |
12,127 |
|
$ |
— |
|
|
Reconciliation of cash and restricted cash: |
|
||||||
Cash |
$ |
38,816 |
|
$ |
36,320 |
|
|
Restricted cash |
|
5,286 |
|
|
4,614 |
|
|
Total cash and restricted cash |
$ |
44,102 |
|
$ |
40,934 |
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA LOSS |
|||||||||||||||
(in thousands, except PMPM) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
2023 |
||||||
Net loss |
$ |
(129,148 |
) |
$ |
(69,107 |
) |
$ |
(310,378 |
) |
$ |
(186,426 |
) |
|||
Interest expense, net |
|
6,834 |
|
|
4,046 |
|
|
22,173 |
|
|
15,985 |
|
|||
Depreciation and amortization |
|
21,153 |
|
|
21,634 |
|
|
86,058 |
|
|
86,675 |
|
|||
Income tax (benefit) provision |
|
4,952 |
|
|
1,767 |
|
|
4,387 |
|
|
2,695 |
|
|||
Mark-to-market of stock warrants |
|
(7,488 |
) |
|
(760 |
) |
|
(22,114 |
) |
|
(433 |
) |
|||
Premium deficiency reserve |
|
37,927 |
|
|
(3,344 |
) |
|
53,698 |
|
|
(12,705 |
) |
|||
Equity-based compensation |
|
721 |
|
|
1,720 |
|
|
5,752 |
|
|
5,979 |
|
|||
Other(1) |
|
(2,533 |
) |
|
(212 |
) |
|
(6,775 |
) |
|
2,656 |
|
|||
Transaction and other related costs(2) |
|
— |
|
|
— |
|
|
— |
|
|
70 |
|
|||
Adjusted EBITDA loss |
$ |
(67,582 |
) |
$ |
(44,256 |
) |
$ |
(167,199 |
) |
$ |
(85,504 |
) |
|||
Adjusted EBITDA loss PMPM |
$ |
(175 |
) |
$ |
(138 |
) |
$ |
(147 |
) |
$ |
(68 |
) |
_____________________________________________ |
||
(1) |
|
Other during the year ended December 31, 2024 consisted of (i) interest income, (ii) gain recognized upon the settlement and write-off of contingent consideration related to an acquisition completed in a prior year and (iii) gain recognized on asset sale partially offset by (iv) severance and related expense in connection with our chief executive officer transition (v) loss on impairment on assets held for sale, and (vi) valuation allowance on our notes receivable. Other during the year ended December 31, 2023 consisted of (i) interest income offset by (ii) cybersecurity incident loss, (iii) restructuring and other charges, including severance and benefits paid to employees pursuant to workforce reduction plans, (iv) the disposition of our |
(2) |
|
Transaction and other related costs during the year ended December 31, 2023 consisted of legal fees incurred related to acquisition-related litigation. |
MEDICAL MARGIN |
|||||||||||||||
(in thousands, except PMPM) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Capitated revenue |
$ |
367,456 |
|
$ |
342,836 |
|
$ |
1,483,602 |
|
$ |
1,252,309 |
|
|||
Less: medical claims expense |
|
(360,178 |
) |
|
(333,761 |
) |
|
(1,398,143 |
) |
|
(1,117,258 |
) |
|||
Medical margin |
$ |
7,278 |
|
$ |
9,075 |
|
$ |
85,459 |
|
$ |
135,051 |
|
|||
Medical margin PMPM |
$ |
19 |
|
$ |
28 |
|
$ |
75 |
|
$ |
108 |
|
RECONCILIATION OF GROSS PROFIT (LOSS) TO MEDICAL MARGIN |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Gross profit (loss) |
$ |
(39,538 |
) |
$ |
(20,818 |
) |
$ |
(58,917 |
) |
$ |
31,635 |
|
|||
Other patient service revenue |
|
(3,230 |
) |
|
(4,025 |
) |
|
(16,853 |
) |
|
(14,066 |
) |
|||
Other medical expense |
|
50,046 |
|
|
33,918 |
|
|
161,229 |
|
|
117,482 |
|
|||
Medical margin |
$ |
7,278 |
|
$ |
9,075 |
|
$ |
85,459 |
|
$ |
135,051 |
|
RECONCILIATION OF TOTAL OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE |
|||||||||||||||
(in thousands) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Total operating expense |
$ |
509,189 |
|
$ |
411,121 |
|
$ |
1,821,113 |
|
$ |
1,434,305 |
|
|||
Medical expense |
|
(410,224 |
) |
|
(367,679 |
) |
|
(1,559,372 |
) |
|
(1,234,740 |
) |
|||
Depreciation and amortization |
|
(21,153 |
) |
|
(21,634 |
) |
|
(86,058 |
) |
|
(86,675 |
) |
|||
Premium deficiency reserve |
|
(37,927 |
) |
|
3,344 |
|
|
(53,698 |
) |
|
12,705 |
|
|||
Equity-based compensation |
|
(721 |
) |
|
(1,720 |
) |
|
(5,752 |
) |
|
(5,979 |
) |
|||
Other |
|
2,533 |
|
|
212 |
|
|
6,775 |
|
|
(2,656 |
) |
|||
Transaction and other related costs |
|
— |
|
|
— |
|
|
— |
|
|
(70 |
) |
|||
Adjusted operating expense |
$ |
41,697 |
|
$ |
23,644 |
|
$ |
123,008 |
|
$ |
116,890 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327770787/en/
Ryan Halsted
Investor Relations
Gilmartin Group
ir@p3hp.org
Source: P3 Health Partners Inc.