R1 RCM Reports Fourth Quarter and Full Year 2023 Results
- Revenue for Q4 2023 was $575.1 million, up 7.8% from the same period last year.
- GAAP net income for Q4 2023 was $1.4 million, compared to a net loss of $36.6 million in Q4 2022.
- Adjusted EBITDA for Q4 2023 was $167.7 million, a 33.5% increase from the same period last year.
- FY 2023 revenue reached $2,254.2 million, up 24.8% from 2022.
- FY 2023 GAAP net income was $3.3 million, compared to a net loss of $63.3 million in 2022.
- FY 2023 Adjusted EBITDA was $614.3 million, up 45.0% from 2022.
- 2024 outlook includes revenue expectations of $2,625 to $2,675 million, GAAP operating income of $105 million to $135 million, and Adjusted EBITDA of $650 million to $670 million.
- The company aims to improve execution, advance new business pipeline, and invest in technology to enhance margins and cash flows.
- Supplemental forward-looking information for 2024 includes revenue assumptions, capital expenditures, expenses, interest expense, and depreciation and amortization expense.
- Adjusted EBITDA is used as a key metric for planning, forecasting, and performance evaluation by the company's board and management team.
- None.
Insights
The financial results reported by R1 RCM Inc. demonstrate significant growth in revenue and a robust turnaround from a net loss to a net gain year-over-year. The 7.8% increase in quarterly revenue and the 24.8% annual revenue growth signify a strong market position and successful execution of business strategies, particularly the integrations mentioned. The substantial 45.0% increase in adjusted EBITDA is indicative of improved operational efficiency and cost management. Investors should note the positive trajectory in profitability, which may signal enhanced shareholder value and potential for reinvestment in the company's growth initiatives.
Furthermore, the forecast for fiscal 2024, with projected revenues of $2,625 million to $2,675 million and adjusted EBITDA of $650 million to $670 million, suggests confidence in the company's continued growth. The emphasis on maintaining operating discipline while driving growth may appeal to investors looking for companies with prudent financial management practices. The capital expenditure projection at around 5% of revenue aligns with typical reinvestment rates for tech-driven companies, aiming to balance growth and profitability.
R1 RCM's performance is a reflection of the broader healthcare technology and revenue cycle management industry, which is experiencing growth due to increasing demand for efficient healthcare administration and cost containment. The company's strategic focus on leveraging generative AI indicates a commitment to innovation, which is essential in an industry where technology adoption can provide a competitive edge. The integration of Cloudmed and the contributions from Acclara and Providence are likely to enhance R1's service offerings and market reach.
For stakeholders, the diversification of the business and the global scale expansion mentioned by the CEO are critical factors that could mitigate risks associated with market volatility and regulatory changes. The mention of a data-driven technology platform and operational excellence as core to R1's strategy underlines the importance of analytics and process optimization in the industry, which can lead to better customer outcomes and, consequently, stronger client retention and market share growth.
R1 RCM's investment in generative AI and its impact on the financial performance and patient experience is particularly noteworthy. Generative AI, which can automate and enhance complex data processes, is becoming increasingly vital in healthcare settings for both administrative and clinical applications. R1's advancement in this area could lead to more sophisticated analytics, predictive modeling and personalized patient engagement strategies. This technological edge is likely to improve client satisfaction and operational efficiencies, potentially translating into long-term strategic advantages over competitors.
The company's focus on flexible models to meet customers' revenue cycle needs suggests adaptability in their service offerings, which is crucial as healthcare providers face varying challenges and regulatory environments. By tailoring solutions, R1 may see increased client acquisition and retention. The commitment to improving margins and cash flows as stated by the CFO also implies a strategic approach to financial health, which is essential for sustaining technology investments and driving innovation.
MURRAY, Utah, Feb. 27, 2024 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ: RCM) ("R1" or the "Company"), a leading provider of technology-driven solutions that transform the financial performance and patient experience for health systems, hospitals, and physician groups, today announced results for the three months and year ended December 31, 2023.
Fourth Quarter 2023 Results:
- Revenue of
$575.1 million , up$41.8 million or7.8% compared to the same period last year - GAAP net income of
$1.4 million , compared to a net loss of$36.6 million in the same period last year - Adjusted EBITDA of
$167.7 million , up$42.1 million or33.5% compared to the same period last year
Full Year 2023 Results:
- Revenue of
$2,254.2 million , up$447.8 million or24.8% compared to 2022 - GAAP net income of
$3.3 million , compared to net loss of$63.3 million in 2022 - Adjusted EBITDA of
$614.3 million , up$190.5 million or45.0% compared to 2022
“R1 executed on its key objectives in 2023. We established a stronger foundation for growth, stabilized key metrics for several clients and delivered approximately
Mr. Rivas added, “We enter 2024 with a more diversified business, enhanced technology initiatives and increased global scale. Our strategy is to leverage our best-in-class capabilities to deploy flexible models that meet customers where they are in their revenue cycle journey. We believe R1’s breadth of capabilities and data-driven technology platform, combined with our focus on operational excellence, positions us to drive value for our customers while delivering long-term sustainable growth and improved financial performance for our shareholders.”
2024 Outlook
For 2024, R1 expects to generate:
- Revenue of between
$2,625 million and$2,675 million - GAAP operating income of
$105 million to$135 million - Adjusted EBITDA of
$650 million to$670 million
Jennifer Williams, R1’s CFO said, “Our outlook for fiscal 2024 reflects the strength of our platform and our focus on both growth and operating discipline to deliver great value for our customers and shareholders. To further our leadership position in the industry, we will continue improving execution across our business, advancing our new business pipeline and investing in technology, while remaining committed to improving margins and cash flows.”
Supplemental Forward-Looking Information and Assumptions for Fiscal Year 2024
The Company is providing the following supplemental expectations and related assumptions regarding its fiscal year 2024 results, all of which are subject to change, to further provide transparency to investors:
- Revenue of
$2,625 t o$2,675 million assumes the following:- Net operating fees and incentive fees remain consistent with the fourth quarter 2023 run rate (excluding Providence and Acclara contributions), with expected low single digit year-over-year cash collection growth offset by customer attrition and facility divestitures.
- Modular and Other revenue assumes revenue growth in the low teens.
- We anticipate Acclara and Providence to contribute revenue of approximately
$290 t o 295 million, and$45 t o 50 million, respectively.
- Capital expenditures of approximately
5% of revenue for the fiscal year. - Other expenses for the fiscal year of approximately
$105 t o$125 million , including integration expenses in connection with the Acclara acquisition. - Interest expense in the range of
$160 t o$165 million for the fiscal year, including the impact of$575 million in additional Term B Loans and the$80 million draw on the Company’s senior revolving credit facility related to the Acclara acquisition. - Depreciation and amortization expense of
$330 t o$350 million .
Conference Call and Webcast Details
R1’s management team will host a conference call today at 8:00 a.m. Eastern Time to discuss its financial results and business outlook. To participate, please dial 888-330-2022 (646-960-0690 outside the U.S. and Canada) using conference code number 5681952. A live webcast and replay of the call will be available at the Investor Relations section of the Company’s website at ir.r1rcm.com.
Non-GAAP Financial Measures
In order to provide a more comprehensive understanding of the information used by R1’s management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP cost of services, non-GAAP selling, general and administrative expenses, and net debt. Adjusted EBITDA is defined as GAAP net income (loss) before net interest income/expense, income tax provision/benefit, depreciation and amortization expense, share-based compensation expense, CoyCo 2, L.P. (“CoyCo 2”) share-based compensation expense, and certain other items, including business acquisition costs, integration costs, technology transformation, strategic initiatives, and facility-exit charges. Non-GAAP cost of services is defined as GAAP cost of services less share-based compensation expense, CoyCo 2 share-based compensation expense, and depreciation and amortization expense attributed to cost of services. Non-GAAP selling, general and administrative expenses is defined as GAAP selling, general and administrative expenses less share-based compensation expense, CoyCo 2 share-based compensation expense, and depreciation and amortization expense attributed to selling, general and administrative expenses. Net debt is defined as debt less cash and cash equivalents, inclusive of restricted cash. Adjusted EBITDA guidance is reconciled to operating income guidance, the most closely comparable available GAAP measure.
The Company's board of directors and management team use adjusted EBITDA as (i) one of the primary methods for planning and forecasting overall expectations and for evaluating actual results against such expectations and (ii) a performance evaluation metric in determining achievement of certain executive incentive compensation programs, as well as for incentive compensation programs for employees. Non-GAAP cost of services and non-GAAP selling, general and administrative expenses are used to calculate adjusted EBITDA. Net debt is used as a supplemental measure of the Company's liquidity.
Tables 4 through 9 present a reconciliation of GAAP financial measures to non-GAAP financial measures. Non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “see,” “seek,” “target,” “would” and similar expressions or variations or negatives of these words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements include, among other things, statements about the Company’s strategy, future operations, future financial position, prospects, plans, objectives of management, ability to successfully deliver on commitments to customers, ability to deploy new business as planned, ability to successfully implement new technologies, and expected market growth. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause the Company’s actual results to differ materially from those expressed or implied in its forward-looking statements. Subsequent events and developments, including actual results or changes in the Company’s assumptions, may cause the Company’s views to change. The Company does not undertake to update its forward-looking statements except to the extent required by applicable law. Readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by these cautionary statements. The Company’s actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to, economic downturns and market conditions beyond the Company’s control, including high inflation; the quality of global financial markets; the Company’s ability to timely and successfully achieve the anticipated benefits and potential synergies of the acquisitions of Cloudmed and Acclara; the Company’s ability to retain existing customers or acquire new customers; the development of markets for the Company’s revenue cycle management offering; variability in the lead time of prospective customers; competition within the market; breaches or failures of the Company’s information security measures or unauthorized access to a customer’s data; delayed or unsuccessful implementation of the Company’s technologies or services, or unexpected implementation costs; disruptions in or damages to the Company’s global business services centers and third-party operated data centers; the volatility of the Company’s stock price; the impact of the recent restatements of the financial statements for the applicable periods on the price of the Company’s common stock, reputation and relationships with its investors, suppliers, customers, employees and other parties; the Company’s substantial indebtedness; and the factors set forth under the heading “Risk Factors” in the Company’s most recent annual report on Form 10-K, and any other periodic reports that the Company may file with the U.S. Securities and Exchange Commission.
About R1 RCM
R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.com.
Contact:
R1 RCM Inc.
Investor Relations:
Evan Smith, CFA
516-743-5184
investorrelations@r1rcm.com
Media Relations:
Yancey Casey
Amendola Communications
678-895-9401
ycasey@acmarketingpr.com
| Table 1 | ||||||||
| R1 RCM Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
| (Unaudited) | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 173.6 | $ | 110.1 | ||||
| Accounts receivable, net of | 243.3 | 235.2 | ||||||
| Accounts receivable - related party, net of | 26.1 | 25.0 | ||||||
| Current portion of contract assets, net | 94.4 | 83.9 | ||||||
| Prepaid expenses and other current assets | 95.9 | 110.3 | ||||||
| Total current assets | 633.3 | 564.5 | ||||||
| Property, equipment and software, net | 173.7 | 164.8 | ||||||
| Operating lease right-of-use assets | 62.5 | 80.5 | ||||||
| Non-current portion of contract assets, net | 37.7 | 32.0 | ||||||
| Non-current portion of deferred contract costs | 30.4 | 26.7 | ||||||
| Intangible assets, net | 1,310.7 | 1,514.5 | ||||||
| Goodwill | 2,629.4 | 2,640.3 | ||||||
| Non-current deferred tax assets | 10.9 | 10.4 | ||||||
| Other assets | 71.6 | 88.1 | ||||||
| Total assets | $ | 4,960.2 | $ | 5,121.8 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 22.7 | $ | 33.4 | ||||
| Current portion of customer liabilities | 39.8 | 57.5 | ||||||
| Current portion of customer liabilities - related party | 5.2 | 7.4 | ||||||
| Accrued compensation and benefits | 126.3 | 109.0 | ||||||
| Current portion of operating lease liabilities | 19.3 | 18.0 | ||||||
| Current portion of long-term debt | 67.0 | 53.9 | ||||||
| Accrued expenses and other current liabilities | 65.9 | 70.5 | ||||||
| Total current liabilities | 346.2 | 349.7 | ||||||
| Non-current portion of customer liabilities | 2.7 | 5.0 | ||||||
| Non-current portion of customer liabilities - related party | 11.8 | 13.7 | ||||||
| Non-current portion of operating lease liabilities | 77.8 | 94.4 | ||||||
| Long-term debt | 1,570.5 | 1,732.6 | ||||||
| Non-current deferred tax liabilities | 176.6 | 200.8 | ||||||
| Other non-current liabilities | 23.2 | 23.1 | ||||||
| Total liabilities | 2,208.8 | 2,419.3 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 4.5 | 4.4 | ||||||
| Additional paid-in capital | 3,197.4 | 3,123.3 | ||||||
| Accumulated deficit | (136.7 | ) | (140.0 | ) | ||||
| Accumulated other comprehensive loss | (5.9 | ) | (3.4 | ) | ||||
| Treasury stock | (307.9 | ) | (281.8 | ) | ||||
| Total stockholders’ equity | 2,751.4 | 2,702.5 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,960.2 | $ | 5,121.8 | ||||
| Table 2 | ||||||||||||||
| R1 RCM Inc. | ||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||
| (In millions, except share and per share data) | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net operating fees | $ | 369.1 | $ | 344.9 | $ | 1,455.9 | $ | 1,309.7 | ||||||
| Incentive fees | 23.9 | 25.9 | 108.4 | 106.8 | ||||||||||
| Modular and other | 182.1 | 162.5 | 689.9 | 389.9 | ||||||||||
| Net services revenue | 575.1 | 533.3 | 2,254.2 | 1,806.4 | ||||||||||
| Operating expenses: | ||||||||||||||
| Cost of services | 441.6 | 435.5 | 1,769.7 | 1,446.9 | ||||||||||
| Selling, general and administrative | 55.7 | 54.3 | 220.0 | 172.5 | ||||||||||
| Other expenses | 28.7 | 47.3 | 116.6 | 189.8 | ||||||||||
| Total operating expenses | 526.0 | 537.1 | 2,106.3 | 1,809.2 | ||||||||||
| Income (loss) from operations | 49.1 | (3.8 | ) | 147.9 | (2.8 | ) | ||||||||
| Net interest expense | 31.6 | 28.7 | 126.9 | 64.0 | ||||||||||
| Income (loss) before income tax provision (benefit) | 17.5 | (32.5 | ) | 21.0 | (66.8 | ) | ||||||||
| Income tax provision (benefit) | 16.1 | 4.1 | 17.7 | (3.5 | ) | |||||||||
| Net income (loss) | $ | 1.4 | $ | (36.6 | ) | $ | 3.3 | $ | (63.3 | ) | ||||
| Net income (loss) per common share: | ||||||||||||||
| Basic | $ | — | $ | (0.09 | ) | $ | 0.01 | $ | (0.18 | ) | ||||
| Diluted | $ | — | $ | (0.09 | ) | $ | 0.01 | $ | (0.18 | ) | ||||
| Weighted average shares used in calculating net income (loss) per common share: | ||||||||||||||
| Basic | 419,440,458 | 416,680,429 | 418,587,390 | 352,337,767 | ||||||||||
| Diluted | 451,499,913 | 416,680,429 | 454,094,374 | 352,337,767 | ||||||||||
| Table 3 | ||||||||
| R1 RCM Inc. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| (Unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Operating activities | ||||||||
| Net income (loss) | $ | 3.3 | $ | (63.3 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||||||||
| Depreciation and amortization | 278.3 | 172.0 | ||||||
| Amortization of debt issuance costs | 5.7 | 3.6 | ||||||
| Share-based compensation | 64.2 | 59.8 | ||||||
| CoyCo 2 share-based compensation | 7.3 | 5.1 | ||||||
| Loss/(gain) on disposal and right-of-use asset write-downs | 10.0 | 21.1 | ||||||
| Provision for credit losses | 34.6 | 11.8 | ||||||
| Deferred income taxes | (14.6 | ) | (6.8 | ) | ||||
| Non-cash lease expense | 11.5 | 14.0 | ||||||
| Other | 12.3 | 6.5 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and related party accounts receivable | (44.0 | ) | (51.8 | ) | ||||
| Contract assets | (15.2 | ) | (24.1 | ) | ||||
| Prepaid expenses and other assets | 3.9 | (40.5 | ) | |||||
| Accounts payable | (10.9 | ) | (16.0 | ) | ||||
| Accrued compensation and benefits | 17.4 | (69.5 | ) | |||||
| Operating lease liabilities | (18.0 | ) | (18.9 | ) | ||||
| Other liabilities | 17.9 | (1.7 | ) | |||||
| Customer liabilities and customer liabilities - related party | (23.6 | ) | (11.2 | ) | ||||
| Net cash provided by (used in) operating activities | 340.1 | (9.9 | ) | |||||
| Investing activities | ||||||||
| Purchases of property, equipment, and software | (102.5 | ) | (93.5 | ) | ||||
| Payment for business acquisitions, net of cash acquired | — | (847.7 | ) | |||||
| Other | (0.3 | ) | (8.3 | ) | ||||
| Net cash used in investing activities | (102.8 | ) | (949.5 | ) | ||||
| Financing activities | ||||||||
| Issuance of senior secured debt, net of discount and issuance costs | — | 1,016.6 | ||||||
| Borrowings on revolver | 30.0 | 50.0 | ||||||
| Payment of debt issuance costs | — | (1.0 | ) | |||||
| Repayment of senior secured debt | (53.9 | ) | (25.5 | ) | ||||
| Repayments on revolver | (130.0 | ) | (30.0 | ) | ||||
| Payment of equity issuance costs | — | (2.0 | ) | |||||
| Exercise of vested stock options | 1.3 | 4.6 | ||||||
| Purchase of treasury stock | — | (39.3 | ) | |||||
| Shares withheld for taxes | (26.5 | ) | (30.2 | ) | ||||
| Other | 5.2 | (0.2 | ) | |||||
| Net cash (used in) provided by financing activities | (173.9 | ) | 943.0 | |||||
| Effect of exchange rate changes in cash | 0.1 | (3.6 | ) | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 63.5 | (20.0 | ) | |||||
| Cash, cash equivalents, and restricted cash at beginning of period | 110.1 | 130.1 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 173.6 | $ | 110.1 | ||||
| Table 4 | ||||||||||||||||||||||||||||
| R1 RCM Inc. | ||||||||||||||||||||||||||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA (Unaudited) | ||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||
| Three Months Ended December 31, | 2023 vs. 2022 Change | Year Ended December 31, | 2023 vs. 2022 Change | |||||||||||||||||||||||||
| 2023 | 2022 | Amount | % | 2023 | 2022 | Amount | % | |||||||||||||||||||||
| Net income (loss) | $ | 1.4 | $ | (36.6 | ) | $ | 38.0 | (104 | )% | $ | 3.3 | $ | (63.3 | ) | $ | 66.6 | (105 | )% | ||||||||||
| Net interest expense | 31.6 | 28.7 | 2.9 | 10 | % | 126.9 | 64.0 | 62.9 | 98 | % | ||||||||||||||||||
| Income tax provision (benefit) | 16.1 | 4.1 | 12.0 | (293 | )% | 17.7 | (3.5 | ) | 21.2 | (606 | )% | |||||||||||||||||
| Depreciation and amortization expense | 72.7 | 64.2 | 8.5 | 13 | % | 278.3 | 172.0 | 106.3 | 62 | % | ||||||||||||||||||
| Share-based compensation expense | 15.3 | 15.8 | (0.5 | ) | (3 | )% | 64.2 | 59.7 | 4.5 | 8 | % | |||||||||||||||||
| CoyCo 2 share-based compensation expense | 1.9 | 2.1 | (0.2 | ) | — | % | 7.3 | 5.1 | 2.2 | — | % | |||||||||||||||||
| Other expenses (1) | 28.7 | 47.3 | (18.6 | ) | (39 | )% | 116.6 | 189.8 | (73.2 | ) | (39 | )% | ||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 167.7 | $ | 125.6 | $ | 42.1 | 34 | % | $ | 614.3 | $ | 423.8 | $ | 190.5 | 45 | % | ||||||||||||
(1) For details see Note 14, Other Expenses, to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K.
| Table 5 | |||||||||||||
| R1 RCM Inc. | |||||||||||||
| Reconciliation of GAAP Cost of Services to Non-GAAP Cost of Services (Unaudited) | |||||||||||||
| (In millions) | |||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Cost of services | $ | 441.6 | $ | 435.5 | $ | 1,769.7 | $ | 1,446.9 | |||||
| Less: | |||||||||||||
| Share-based compensation expense | 10.9 | 7.4 | 41.6 | 28.1 | |||||||||
| CoyCo 2 share-based compensation expense | 0.4 | (0.3 | ) | 1.8 | 0.7 | ||||||||
| Depreciation and amortization expense | 72.5 | 63.8 | 277.1 | 170.8 | |||||||||
| Non-GAAP cost of services | $ | 357.8 | $ | 364.6 | $ | 1,449.2 | $ | 1,247.3 | |||||
| Table 6 | ||||||||||||
| R1 RCM Inc. | ||||||||||||
| Reconciliation of GAAP Selling, General and Administrative to Non-GAAP Selling, General and Administrative (Unaudited) | ||||||||||||
| (In millions) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Selling, general and administrative | $ | 55.7 | $ | 54.3 | $ | 220.0 | $ | 172.5 | ||||
| Less: | ||||||||||||
| Share-based compensation expense | 4.4 | 8.4 | 22.6 | 31.6 | ||||||||
| CoyCo 2 share-based compensation expense | 1.5 | 2.4 | 5.5 | 4.4 | ||||||||
| Depreciation and amortization expense | 0.2 | 0.4 | 1.2 | 1.2 | ||||||||
| Non-GAAP selling, general and administrative | $ | 49.6 | $ | 43.1 | $ | 190.7 | $ | 135.3 | ||||
| Table 7 | ||||||||||||
| R1 RCM Inc. | ||||||||||||
| Consolidated Non-GAAP Financial Information (Unaudited) | ||||||||||||
| (In millions) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net operating fees | $ | 369.1 | $ | 344.9 | $ | 1,455.9 | $ | 1,309.7 | ||||
| Incentive fees | 23.9 | 25.9 | 108.4 | 106.8 | ||||||||
| Modular and other | 182.1 | 162.5 | 689.9 | 389.9 | ||||||||
| Net services revenue | 575.1 | 533.3 | 2,254.2 | 1,806.4 | ||||||||
| Operating expenses: | ||||||||||||
| Cost of services (non-GAAP) | 357.8 | 364.6 | 1,449.2 | 1,247.3 | ||||||||
| Selling, general and administrative (non-GAAP) | 49.6 | 43.1 | 190.7 | 135.3 | ||||||||
| Sub-total (non-GAAP) | 407.4 | 407.7 | 1,639.9 | 1,382.6 | ||||||||
| Adjusted EBITDA | $ | 167.7 | $ | 125.6 | $ | 614.3 | $ | 423.8 | ||||
| Table 8 | |
| R1 RCM Inc. | |
| Reconciliation of GAAP Operating Income Guidance to Non-GAAP Adjusted EBITDA Guidance (Unaudited) | |
| (In millions) | |
| 2024E | |
| GAAP Operating Income Guidance | |
| Plus: | |
| Depreciation and amortization expense | |
| Share-based compensation expense | |
| Strategic initiatives, severance and other costs | |
| Adjusted EBITDA Guidance | |
| Table 9 | |||||
| R1 RCM Inc. | |||||
| Reconciliation of Total Debt to Net Debt (Unaudited) | |||||
| (In millions) | |||||
| December 31, | December 31, | ||||
| 2023 | 2022 | ||||
| Senior Revolver | $ | — | $ | 100.0 | |
| Term A Loans | 1,162.5 | 1,211.4 | |||
| Term B Loan | 493.8 | 498.7 | |||
| Total debt | 1,656.3 | 1,810.1 | |||
| Less: | |||||
| Cash and cash equivalents | 173.6 | 110.1 | |||
| Net Debt | $ | 1,482.7 | $ | 1,700.0 | |
FAQ
What was R1 RCM Inc.'s revenue in Q4 2023?
What was R1 RCM Inc.'s GAAP net income in Q4 2023?
What was R1 RCM Inc.'s Adjusted EBITDA in Q4 2023?
What was R1 RCM Inc.'s revenue in FY 2023?
What was R1 RCM Inc.'s GAAP net income in FY 2023?
What was R1 RCM Inc.'s Adjusted EBITDA in FY 2023?
What is R1 RCM Inc.'s revenue outlook for 2024?
What are R1 RCM Inc.'s financial goals for 2024?
How does R1 RCM Inc. plan to enhance its business in 2024?
What financial information did R1 RCM Inc. provide for 2024?
