P3 Health Partners Announces Second Quarter 2024 Results
P3 Health Partners (NASDAQ: PIII) released its financial results for Q2 2024, ending June 30. The company reported total revenue of $379.2 million, marking a 15% increase from $329.1 million in Q2 2023. Capitated revenue also saw a 15% rise to $374.3 million. However, gross profit declined to $14 million from $26.8 million last year, and profit per member per month (PMPM) dropped to $36 from $86. The medical margin decreased to $41.1 million from $50.5 million, while net loss widened to $28.8 million compared to $27.6 million. Adjusted EBITDA showed a loss of $8.8 million vs. a gain of $0.2 million last year. For fiscal 2024, P3 projects total revenue between $1.45 billion and $1.55 billion, a medical margin of $230-250 million, and adjusted EBITDA between $20-40 million.
P3 Health Partners (NASDAQ: PIII) ha pubblicato i suoi risultati finanziari per il secondo trimestre del 2024, chiuso il 30 giugno. L'azienda ha riportato un fatturato totale di $379,2 milioni, segnando un aumento del 15% rispetto ai $329,1 milioni del Q2 2023. Anche il fatturato capitato ha visto un incremento del 15%, arrivando a $374,3 milioni. Tuttavia, il profitto lordo è sceso a $14 milioni rispetto ai $26,8 milioni dell'anno scorso e il profitto per membro al mese (PMPM) è diminuito a $36 dai $86. Il margine medico è diminuito a $41,1 milioni rispetto ai $50,5 milioni, mentre la perdita netta si è ampliata a $28,8 milioni rispetto ai $27,6 milioni. L'EBITDA rettificato ha mostrato una perdita di $8,8 milioni rispetto a un guadagno di $0,2 milioni dell'anno precedente. Per l'anno fiscale 2024, P3 prevede un fatturato totale tra $1,45 miliardi e $1,55 miliardi, un margine medico di $230-250 milioni e un EBITDA rettificato compreso tra $20-40 milioni.
P3 Health Partners (NASDAQ: PIII) ha publicado sus resultados financieros para el segundo trimestre de 2024, que finalizó el 30 de junio. La compañía informó de un ingreso total de $379.2 millones, lo que representa un incremento del 15% en comparación con los $329.1 millones del segundo trimestre de 2023. Los ingresos capitados también aumentaron un 15%, alcanzando los $374.3 millones. Sin embargo, el beneficio bruto disminuyó a $14 millones desde los $26.8 millones del año pasado y el beneficio por miembro por mes (PMPM) cayó a $36 desde los $86. El margen médico disminuyó a $41.1 millones desde los $50.5 millones, mientras que la pérdida neta se amplió a $28.8 millones en comparación con los $27.6 millones. El EBITDA ajustado mostró una pérdida de $8.8 millones frente a una ganancia de $0.2 millones el año pasado. Para el año fiscal 2024, P3 proyecta un ingreso total entre $1.45 mil millones y $1.55 mil millones, un margen médico de $230-250 millones y un EBITDA ajustado entre $20-40 millones.
P3 헬스 파트너스(NASDAQ: PIII)는 2024년 2분기, 즉 6월 30일 종료된 재무 결과를 발표했습니다. 이 회사는 총 수익이 3억 7920만 달러로, 2023년 2분기의 3억 2910만 달러 대비 15% 증가했다고 보고했습니다. 자금 수익도 15% 증가하여 3억 7430만 달러에 달했습니다. 그러나 총 이익은 지난해 2천 680만 달러에서 1천 400만 달러로 감소했으며, 회원당 월 이익(PMPM)은 86달러에서 36달러로 떨어졌습니다. 의료 마진은 5천 50만 달러에서 4천 110만 달러로 줄어들었고, 순손실은 2천 880만 달러로 확대되어 지난해 2천 760만 달러와 비교되었습니다. 조정 EBITDA는 지난해 20만 달러의 이익에서 880만 달러의 손실을 기록했습니다. 2024 회계연도에 대해 P3는 총 수익이 14억 5천만 달러에서 15억 5천만 달러 사이, 의료 마진이 2억 3천만에서 2억 5천만 달러, 조정 EBITDA가 2천만에서 4천만 달러 사이가 될 것으로 예상하고 있습니다.
P3 Health Partners (NASDAQ: PIII) a publié ses résultats financiers pour le deuxième trimestre de 2024, se terminant le 30 juin. La société a rapporté un revenu total de 379,2 millions de dollars, marquant une augmentation de 15% par rapport à 329,1 millions de dollars au T2 2023. Les revenus par capitation ont également connu une hausse de 15%, atteignant 374,3 millions de dollars. Cependant, le bénéfice brut a chuté à 14 millions de dollars contre 26,8 millions de dollars l'année précédente, et le bénéfice par membre par mois (PMPM) est tombé à 36 dollars contre 86 dollars. Le marge médicale a diminué à 41,1 millions de dollars contre 50,5 millions de dollars, tandis que la perte nette s'est creusée à 28,8 millions de dollars par rapport à 27,6 millions de dollars. L'EBITDA ajusté a montré une perte de 8,8 millions de dollars contre un gain de 0,2 million de dollars l'année dernière. Pour l'exercice 2024, P3 prévoit un revenu total compris entre 1,45 milliard et 1,55 milliard de dollars, une marge médicale de 230 à 250 millions de dollars, et un EBITDA ajusté entre 20 et 40 millions de dollars.
P3 Health Partners (NASDAQ: PIII) hat seine Finanzzahlen für das 2. Quartal 2024, das am 30. Juni endete, veröffentlicht. Das Unternehmen berichtete von einem Gesamtumsatz von 379,2 Millionen Dollar, was einen Anstieg von 15% im Vergleich zu 329,1 Millionen Dollar im 2. Quartal 2023 darstellt. Auch die kapitale Einnahmen stiegen um 15% auf 374,3 Millionen Dollar. Der Bruttogewinn ging jedoch auf 14 Millionen Dollar von 26,8 Millionen Dollar im Vorjahr zurück, und der Gewinn pro Mitglied pro Monat (PMPM) sank auf 36 Dollar von 86 Dollar. Der medizinische Gewinn verringerte sich auf 41,1 Millionen Dollar von 50,5 Millionen Dollar, während der Nettoverlust auf 28,8 Millionen Dollar im Vergleich zu 27,6 Millionen Dollar anstieg. Das bereinigte EBITDA zeigte einen Verlust von 8,8 Millionen Dollar gegenüber einem Gewinn von 0,2 Millionen Dollar im Vorjahr. Für das Geschäftsjahr 2024 prognostiziert P3 einen Gesamtumsatz zwischen 1,45 Milliarden und 1,55 Milliarden Dollar, einen medizinischen Gewinn von 230 bis 250 Millionen Dollar und ein bereinigtes EBITDA zwischen 20 und 40 Millionen Dollar.
- Total revenue increased by 15% to $379.2 million.
- Capitated revenue rose by 15% to $374.3 million.
- Projected total revenue for fiscal 2024 is between $1.45 billion and $1.55 billion.
- Projected medical margin for fiscal 2024 is between $230 million and $250 million.
- Projected adjusted EBITDA for fiscal 2024 is between $20 million and $40 million.
- Gross profit declined to $14 million from $26.8 million.
- Gross profit PMPM dropped from $86 to $36.
- Medical margin decreased to $41.1 million from $50.5 million.
- Net loss increased to $28.8 million from $27.6 million.
- Adjusted EBITDA showed a loss of $8.8 million compared to a gain of $0.2 million.
Management to Host Conference Call and Webcast August 7, 2024 at 4:30 PM ET
“In the second quarter, we experienced continued growth in our top line while simultaneously enhancing our balance sheet through a successful capital raise,” said Aric Coffman, CEO of P3. “Building on P3’s key strengths, I have identified several initiatives during my first 90 days as CEO that will further enhance our capabilities and help achieve sustainable profitability.”
Second Quarter 2024 Financial Results
-
Total revenue was
, an increase of$379.2 million 15% compared to in the second quarter of the prior year$329.1 million -
Capitated revenue was
, an increase of$374.3 million 15% compared to in the second quarter of the prior year$325.6 million -
Gross profit was
, as compared to$14.0 million in the prior year. Gross profit PMPM was$26.8 million , compared to$36 PMPM in the prior year$86 -
Medical margin1 was
compared to$41.1 million in the prior year. Medical margin PMPM1 was$50.5 million , compared to a medical margin PMPM of$107 in the prior year$161 -
Net loss was
compared to a net loss of$28.8 million in the second quarter of the prior year. Net loss PMPM was$27.6 million compared to a net loss PMPM of$75 in the prior year$88 -
Adjusted EBITDA loss1 was
compared to Adjusted EBITDA of$8.8 million in the second quarter of the prior year. Adjusted EBITDA loss PMPM1 was$0.2 million , compared to Adjusted EBITDA PMPM of$23 in the second quarter of the prior year$1
Fiscal 2024 Guidance |
|||||||
|
|||||||
|
|
Year Ended December 31, 2024 |
|||||
|
|
Low |
High |
||||
At-Risk Members(2) |
|
|
125,000 |
|
|
135,000 |
|
Total Revenues (in millions) |
|
$ |
1,450 |
|
$ |
1,550 |
|
Medical Margin(1)(3) (in millions) |
|
$ |
230 |
|
$ |
250 |
|
Medical Margin(3) PMPM |
|
$ |
165 |
|
$ |
175 |
|
Adjusted EBITDA(3) (in millions) |
|
$ |
20 |
|
$ |
40 |
|
(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 (loss), 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), gross profit (loss) or gross profit (loss) PMPM 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 2024 outlook statements represent 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 August 7, 2024 at 4:30 PM ET
Title & Webcast |
|
|
Date & Time |
|
August 7, 2024, 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 2,900 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 LinkedIn and Facebook.
Non-GAAP Financial Measures
In addition to the financial results prepared in accordance with accounting principles generally accepted in the
Medical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end of this press release present a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA PMPM to net income (loss) PMPM, medical margin to gross profit, and medical margin PMPM to gross profit PMPM, which are the most directly comparable financial measures calculated in accordance with GAAP.
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; our ability to establish and maintain effective internal controls and the impact of the material weaknesses we have identified; our ability to maintain the listing of our securities on The Nasdaq Stock Market, LLC; increased labor costs; 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, 2023, filed with the SEC on March 28, 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 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash |
$ |
73,086 |
|
|
$ |
36,320 |
|
Restricted cash |
|
5,116 |
|
|
|
4,614 |
|
Health plan receivable, net of allowance for credit losses of |
|
153,259 |
|
|
|
118,497 |
|
Clinic fees, insurance and other receivable |
|
2,165 |
|
|
|
2,973 |
|
Prepaid expenses and other current assets |
|
8,478 |
|
|
|
3,613 |
|
TOTAL CURRENT ASSETS |
|
242,104 |
|
|
|
166,017 |
|
Property and equipment, net |
|
7,537 |
|
|
|
8,686 |
|
Intangible assets, net |
|
624,673 |
|
|
|
666,733 |
|
Other long-term assets |
|
18,445 |
|
|
|
19,531 |
|
TOTAL ASSETS (1) |
$ |
892,759 |
|
|
$ |
860,967 |
|
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
7,989 |
|
|
$ |
8,663 |
|
Accrued expenses and other current liabilities |
|
39,900 |
|
|
|
36,884 |
|
Accrued payroll |
|
3,744 |
|
|
|
3,506 |
|
Health plan settlements payable |
|
22,851 |
|
|
|
34,992 |
|
Claims payable |
|
233,761 |
|
|
|
178,009 |
|
Premium deficiency reserve |
|
11,273 |
|
|
|
13,670 |
|
Accrued interest |
|
31,905 |
|
|
|
23,648 |
|
Short-term debt |
|
831 |
|
|
|
— |
|
TOTAL CURRENT LIABILITIES |
|
352,254 |
|
|
|
299,372 |
|
Operating lease liability |
|
12,192 |
|
|
|
13,622 |
|
Warrant liabilities |
|
25,455 |
|
|
|
1,085 |
|
Contingent consideration |
|
4,907 |
|
|
|
4,907 |
|
Long-term debt, net |
|
133,124 |
|
|
|
108,319 |
|
TOTAL LIABILITIES (1) |
|
527,932 |
|
|
|
427,305 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
MEZZANINE EQUITY: |
|
|
|
||||
Redeemable non-controlling interest |
|
197,987 |
|
|
|
291,532 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Class A common stock, |
|
16 |
|
|
|
12 |
|
Class V common stock, |
|
20 |
|
|
|
20 |
|
Additional paid in capital |
|
564,868 |
|
|
|
509,442 |
|
Accumulated deficit |
|
(398,064 |
) |
|
|
(367,344 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
166,840 |
|
|
|
142,130 |
|
TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
$ |
892,759 |
|
|
$ |
860,967 |
|
____________________ |
||
(1) |
The Company’s condensed consolidated balance sheets include the assets and liabilities of its consolidated variable interest entities (“VIEs”). As discussed in Note 13 “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 condensed 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
OPERATING REVENUE: |
|
|
|
|
|
|
|
||||||||
Capitated revenue |
$ |
374,306 |
|
|
$ |
325,616 |
|
|
$ |
758,440 |
|
|
$ |
624,320 |
|
Other patient service revenue |
|
4,851 |
|
|
|
3,470 |
|
|
|
9,205 |
|
|
|
6,843 |
|
TOTAL OPERATING REVENUE |
|
379,157 |
|
|
|
329,086 |
|
|
|
767,645 |
|
|
|
631,163 |
|
OPERATING EXPENSE: |
|
|
|
|
|
|
|
||||||||
Medical expense |
|
365,171 |
|
|
|
302,271 |
|
|
|
747,228 |
|
|
|
587,841 |
|
Premium deficiency reserve |
|
(3,397 |
) |
|
|
(2,012 |
) |
|
|
(2,397 |
) |
|
|
3,128 |
|
Corporate, general and administrative expense |
|
26,610 |
|
|
|
27,223 |
|
|
|
54,011 |
|
|
|
64,866 |
|
Sales and marketing expense |
|
414 |
|
|
|
857 |
|
|
|
736 |
|
|
|
1,858 |
|
Depreciation and amortization |
|
21,693 |
|
|
|
21,780 |
|
|
|
43,232 |
|
|
|
43,320 |
|
TOTAL OPERATING EXPENSE |
|
410,491 |
|
|
|
350,119 |
|
|
|
842,810 |
|
|
|
701,013 |
|
OPERATING LOSS |
|
(31,334 |
) |
|
|
(21,033 |
) |
|
|
(75,165 |
) |
|
|
(69,850 |
) |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(5,436 |
) |
|
|
(3,851 |
) |
|
|
(9,692 |
) |
|
|
(7,937 |
) |
Mark-to-market of stock warrants |
|
8,673 |
|
|
|
(1,731 |
) |
|
|
8,889 |
|
|
|
(1,082 |
) |
Other |
|
291 |
|
|
|
(741 |
) |
|
|
628 |
|
|
|
(645 |
) |
TOTAL OTHER EXPENSE |
|
3,528 |
|
|
|
(6,323 |
) |
|
|
(175 |
) |
|
|
(9,664 |
) |
LOSS BEFORE INCOME TAXES |
|
(27,806 |
) |
|
|
(27,356 |
) |
|
|
(75,340 |
) |
|
|
(79,514 |
) |
PROVISION FOR INCOME TAXES |
|
(968 |
) |
|
|
(226 |
) |
|
|
(3,040 |
) |
|
|
(516 |
) |
NET LOSS |
|
(28,774 |
) |
|
|
(27,582 |
) |
|
|
(78,380 |
) |
|
|
(80,030 |
) |
LESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NON-CONTROLLING INTEREST |
|
(16,754 |
) |
|
|
(17,766 |
) |
|
|
(47,660 |
) |
|
|
(61,015 |
) |
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST |
$ |
(12,020 |
) |
|
$ |
(9,816 |
) |
|
$ |
(30,720 |
) |
|
$ |
(19,015 |
) |
|
|
|
|
|
|
|
|
||||||||
NET LOSS PER SHARE (Note 9): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.09 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.25 |
) |
Diluted |
$ |
(0.15 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Note 9): |
|
|
|
|
|
|
|
||||||||
Basic |
|
136,601 |
|
|
|
107,454 |
|
|
|
127,806 |
|
|
|
74,699 |
|
Diluted |
|
141,083 |
|
|
|
107,454 |
|
|
|
130,047 |
|
|
|
276,028 |
|
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(78,380 |
) |
|
$ |
(80,030 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
43,232 |
|
|
|
43,320 |
|
Equity-based compensation |
|
3,073 |
|
|
|
2,008 |
|
Amortization of original issue discount and debt issuance costs |
|
(91 |
) |
|
|
340 |
|
Accretion of contingent consideration |
|
— |
|
|
|
113 |
|
Mark-to-market adjustment of stock warrants |
|
(8,889 |
) |
|
|
1,082 |
|
Premium deficiency reserve |
|
(2,397 |
) |
|
|
3,128 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Health plan receivable |
|
(34,762 |
) |
|
|
(30,540 |
) |
Clinic fees, insurance, and other receivable |
|
775 |
|
|
|
5,563 |
|
Prepaid expenses and other current assets |
|
(4,865 |
) |
|
|
139 |
|
Other long-term assets |
|
60 |
|
|
|
(1,289 |
) |
Accounts payable, accrued expenses, and other current liabilities |
|
30 |
|
|
|
1,924 |
|
Accrued payroll |
|
238 |
|
|
|
(3,086 |
) |
Health plan settlements payable |
|
(12,141 |
) |
|
|
(6,730 |
) |
Claims payable |
|
55,752 |
|
|
|
7,321 |
|
Accrued interest |
|
8,257 |
|
|
|
4,625 |
|
Operating lease liability |
|
(164 |
) |
|
|
(452 |
) |
Net cash used in operating activities |
|
(30,272 |
) |
|
|
(52,564 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
— |
|
|
|
(1,652 |
) |
Net cash used in investing activities |
|
— |
|
|
|
(1,652 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from long-term debt, net of original issue discount |
|
25,000 |
|
|
|
14,102 |
|
Payment of debt issuance costs |
|
— |
|
|
|
(173 |
) |
Proceeds from private placement offering, net of offering costs paid |
|
42,234 |
|
|
|
87,329 |
|
Proceeds from at-the-market sales, net of offering costs paid |
|
33 |
|
|
|
— |
|
Deferred offering costs paid |
|
(455 |
) |
|
|
— |
|
Payment of tax withholdings upon settlement of restricted stock unit awards |
|
(103 |
) |
|
|
— |
|
Repayment of short-term and long-term debt |
|
(1,040 |
) |
|
|
— |
|
Proceeds from short-term debt |
|
1,871 |
|
|
|
— |
|
Net cash provided by financing activities |
|
67,540 |
|
|
|
101,258 |
|
Net change in cash and restricted cash |
|
37,268 |
|
|
|
47,042 |
|
Cash and restricted cash, beginning of period |
|
40,934 |
|
|
|
18,457 |
|
Cash and restricted cash, end of period |
$ |
78,202 |
|
|
$ |
65,499 |
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (LOSS) (in thousands, except PMPM) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||||||
June 30, 2024 |
|
June 30, 2023 |
|
March 31, 2024 |
|
2024 |
|
2023 |
|||||||||||
Net loss |
$ |
(28,774 |
) |
|
$ |
(27,582 |
) |
|
$ |
(49,606 |
) |
|
$ |
(78,380 |
) |
|
$ |
(80,030 |
) |
Interest expense, net |
|
5,436 |
|
|
|
3,851 |
|
|
|
4,256 |
|
|
|
9,692 |
|
|
|
7,937 |
|
Depreciation and amortization |
|
21,693 |
|
|
|
21,780 |
|
|
|
21,539 |
|
|
|
43,232 |
|
|
|
43,320 |
|
Provision for income taxes |
|
968 |
|
|
|
226 |
|
|
|
2,072 |
|
|
|
3,040 |
|
|
|
516 |
|
Mark-to-market of stock warrants |
|
(8,673 |
) |
|
|
1,731 |
|
|
|
(216 |
) |
|
|
(8,889 |
) |
|
|
1,082 |
|
Premium deficiency reserve |
|
(3,397 |
) |
|
|
(2,012 |
) |
|
|
1,000 |
|
|
|
(2,397 |
) |
|
|
3,128 |
|
Equity-based compensation |
|
1,624 |
|
|
|
1,031 |
|
|
|
1,449 |
|
|
|
3,073 |
|
|
|
2,008 |
|
Other(1) |
|
2,276 |
|
|
|
1,192 |
|
|
|
(264 |
) |
|
|
2,012 |
|
|
|
3,053 |
|
Transaction and other related costs(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70 |
|
Adjusted EBITDA (loss) |
$ |
(8,847 |
) |
|
$ |
217 |
|
|
$ |
(19,770 |
) |
|
$ |
(28,617 |
) |
|
$ |
(18,916 |
) |
Adjusted EBITDA (loss) PMPM |
$ |
(23 |
) |
|
$ |
1 |
|
|
$ |
(52 |
) |
|
$ |
(38 |
) |
|
$ |
(31 |
) |
_____________________________________________ |
||
(1) |
Other during the three and six months ended June 30, 2024 consisted of (i) interest income offset by (ii) severance and related expense in connection with our chief executive officer transition, and (iii) valuation allowance on our notes receivable. Other during the three and six months ended June 30, 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 six months ended June 30, 2023 consisted of legal fees incurred related to acquisition-related litigation. |
MEDICAL MARGIN (in thousands, except PMPM) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
March 31, 2024 |
|
2024 |
|
2023 |
||||||||||
Capitated revenue |
$ |
374,306 |
|
|
$ |
325,616 |
|
|
$ |
384,134 |
|
|
$ |
758,440 |
|
|
$ |
624,320 |
|
Less: medical claims expense |
|
(333,217 |
) |
|
|
(275,121 |
) |
|
|
(347,582 |
) |
|
|
(680,799 |
) |
|
|
(534,579 |
) |
Medical margin |
$ |
41,089 |
|
|
$ |
50,495 |
|
|
$ |
36,552 |
|
|
$ |
77,641 |
|
|
$ |
89,741 |
|
Medical margin PMPM |
$ |
107 |
|
|
$ |
161 |
|
|
$ |
96 |
|
|
$ |
102 |
|
|
$ |
145 |
|
RECONCILIATION OF GROSS PROFIT TO MEDICAL MARGIN (in thousands) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||||||
June 30, 2024 |
|
June 30, 2023 |
|
March 31, 2024 |
|
2024 |
|
2023 |
|||||||||||
Gross profit |
$ |
13,986 |
|
|
$ |
26,815 |
|
|
$ |
6,431 |
|
|
$ |
20,417 |
|
|
$ |
43,322 |
|
Other patient service revenue |
|
(4,851 |
) |
|
|
(3,470 |
) |
|
|
(4,354 |
) |
|
|
(9,205 |
) |
|
|
(6,843 |
) |
Other medical expense |
|
31,954 |
|
|
|
27,150 |
|
|
|
34,475 |
|
|
|
66,429 |
|
|
|
53,262 |
|
Medical margin |
$ |
41,089 |
|
|
$ |
50,495 |
|
|
$ |
36,552 |
|
|
$ |
77,641 |
|
|
$ |
89,741 |
|
RECONCILIATION OF TOTAL OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE (in thousands) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Total operating expense |
$ |
410,491 |
|
|
$ |
350,119 |
|
|
$ |
842,810 |
|
|
$ |
701,013 |
|
Medical expense |
|
(365,171 |
) |
|
|
(302,271 |
) |
|
|
(747,228 |
) |
|
|
(587,841 |
) |
Depreciation and amortization |
|
(21,693 |
) |
|
|
(21,780 |
) |
|
|
(43,232 |
) |
|
|
(43,320 |
) |
Premium deficiency reserve |
|
3,397 |
|
|
|
2,012 |
|
|
|
2,397 |
|
|
|
(3,128 |
) |
Equity-based compensation |
|
(1,624 |
) |
|
|
(1,031 |
) |
|
|
(3,073 |
) |
|
|
(2,008 |
) |
Other |
|
(2,541 |
) |
|
|
(446 |
) |
|
|
(2,593 |
) |
|
|
(2,397 |
) |
Transaction and other related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(70 |
) |
Adjusted operating expense |
$ |
22,859 |
|
|
$ |
26,603 |
|
|
$ |
49,081 |
|
|
$ |
62,249 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807864847/en/
Ryan Halsted
Investor Relations
Gilmartin Group
ir@p3hp.org
Source: P3 Health Partners Inc.
FAQ
What were P3 Health Partners' Q2 2024 revenue numbers?
How much did P3 Health Partners' gross profit decline in Q2 2024?
What was P3 Health Partners' net loss in Q2 2024?
What is the fiscal 2024 revenue guidance for P3 Health Partners?
How did P3 Health Partners' Adjusted EBITDA perform in Q2 2024?