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P3 Health Partners Inc. (NASDAQ: PIII) plans to release its financial results for Q4 and full year 2023 on March 28, 2024, reaffirming its 2024 guidance. The company observed stable utilization trends early in 2024, with strong membership growth and plans to source additional debt capital for growth.
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Insights
The reaffirmation of P3 Health Partners' guidance for 2024 signals a stable outlook for the company's financial performance, particularly in the context of their Medicare Advantage membership and revenue projections. Membership growth from 108,900 to 121,000 indicates a solid 11% increase, which is a positive indicator for future revenue streams. The planned sourcing of additional debt capital suggests a strategic move to bolster the company's financial position and support its growth ambitions. However, investors should closely monitor the terms of this debt and its impact on the company's leverage ratios.
Additionally, the projected Medical Margin PMPM (Per Member Per Month) of $165 to $175, along with the Adjusted EBITDA forecast, provides insight into the company's operational efficiency and profitability. These figures will be important benchmarks for investors to assess the company's performance against its peers in the healthcare management sector.
From an industry perspective, P3 Health Partners' focus on stable utilization trends and controlled medical costs is reflective of effective population health management strategies. The modest increase in medical costs for December followed by a normalization indicates adept handling of seasonal cost fluctuations, which is a positive sign for investors concerned about cost containment.
The growth in Medicare risk members is noteworthy, as it suggests successful market penetration and potential for increased revenue through Medicare Advantage plans. Given the competitive nature of the Medicare Advantage space, P3's ability to grow its membership base is indicative of strong operational capabilities and may provide a competitive edge.
When evaluating P3 Health Partners within the broader market context, the reaffirmation of guidance amidst uncertain economic conditions may be received positively by the market, potentially stabilizing the company's stock price. The anticipated cash balance post-financing will be a key figure for market analysts to determine the company's liquidity and short-term financial health.
It is also important to consider the potential risks associated with the increased debt load, as it could affect the company's risk profile. Market sentiment towards healthcare stocks is often influenced by such financial strategies and P3's approach will be scrutinized in light of industry norms regarding debt financing and growth funding.
HENDERSON, Nev.--(BUSINESS WIRE)--
P3 Health Partners Inc. (“P3” or the “Company”) (NASDAQ: PIII), a patient-centered and physician-led population health management company, announces that the Company plans to release its financial results for the fourth quarter and full year 2023 on March 28, 2024 and is reaffirming its 2024 guidance.
The Company expects to file its Annual Report on Form 10-K for the year ended December 31, 2023, with the SEC within the extension period provided by Rule 12b-25 of the Exchange Act of 1934, as amended, and will host a conference call to discuss full financial results and current business outlook after the close of the stock market on March 28, 2024.
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 on the Investor page of P3’s website in advance of the conference call. An archived recording of the webcast will be available on the Investor page of P3’s website for a period of 90 days following the conference call.
We are reaffirming our 2024 guidance based on stable utilization trends in early 2024 relative to prior periods. We did not observe elevated medical costs in the months of October or November but did see a modest increase for the month of December, then a return to normalized seasonally adjusted levels in January. We continue to have confidence in our current estimates of medical expenses for the full year 2024. Further, we observed strong membership growth in early 2024 to a total of approximately 121,000 Medicare risk members from 108,900 at year end 2023.
We began 2024 with approximately $40 million in cash. We are in the process of sourcing additional debt capital of approximately $25 million to meet our projected growth pipeline and for general corporate purposes, resulting in an anticipated cash balance of approximately $55 million post-financing which is expected to close late March or early April 2024.
Reaffirming full-year 2024 guidance:
Medicare Advantage Members from 125,000 to 135,000
Revenue from $1.45 billion to $1.55 billion
Medical Margin from $230 million to $250 million
Medical Margin PMPM from $165 to $175
Adjusted EBITDA from $20 million to $40 million
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 2,750 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 18 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.com/p3healthpartners.
Non-GAAP Financial Measures
In addition to the financial results prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including, Adjusted EBITDA, medical margin, and medical margin PMPM. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii) income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to exclude the effect of certain supplemental adjustments, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (iii) equity-based compensation expense and (iv) certain other items that we believe are not indicative of our core operating performances. We believe these non‐GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation revenue after medical claims expenses are deducted and medical margin PMPM is defined as medical margin divided by the number of Medicare Advantage members each month divided by the number of months in the period. 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 Company is not able to provide a quantitative reconciliation of its 2024 guidance as to 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.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will,” or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements address various matters, including the Company’s future expected growth strategy and operating performance; expectations as to medical cost utilization, financial outlook for the full-year ending December 31, 2024, and statements about our anticipated sourcing of additional debt capital and our anticipated post-financing cash balance, all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
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 ability to source additional debt capital of approximately $25 million to meet our projected growth pipeline and for general corporate purposes; 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 payers; the impact of COVID-19, including the impact of new variants of the virus, or another pandemic, epidemic or outbreak of infectious disease on our business and results of operation; increased labor costs; our ability to recruit and retain qualified team members and independent physicians; and other factors discussed in Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 31, 2023, as updated by Part II, Item 1A. “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2023 and in the Company’s other 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.
When will P3 Health Partners release its financial results for Q4 and full year 2023?
P3 Health Partners Inc. plans to release its financial results for the fourth quarter and full year 2023 on March 28, 2024.
What is the ticker symbol for P3 Health Partners Inc.?
The ticker symbol for P3 Health Partners Inc. is PIII.
What is P3 Health Partners Inc.'s 2024 guidance based on?
P3 Health Partners Inc.'s 2024 guidance is based on stable utilization trends early in 2024, with strong membership growth and plans to source additional debt capital for growth.
What is the expected cash balance for P3 Health Partners Inc. post-financing in late March or early April 2024?
The expected cash balance for P3 Health Partners Inc. post-financing is approximately $55 million.
What are the key financial metrics reaffirmed in P3 Health Partners Inc.'s full-year 2024 guidance?
The key financial metrics reaffirmed in P3 Health Partners Inc.'s full-year 2024 guidance include Medicare Advantage Members from 125,000 to 135,000, Revenue from $1.45 billion to $1.55 billion, Medical Margin from $230 million to $250 million, Medical Margin PMPM from $165 to $175, and Adjusted EBITDA from $20 million to $40 million.
