SOC Telemed Announces Departure of CFO, Chris Knibb
SOC Telemed (NASDAQ: TLMD) announced the resignation of CFO Chris Knibb effective September 23, 2021. David Fletcher has been appointed as interim CFO during the search for a successor. Knibb will assist in the transition until December 31, 2021. The company reaffirmed its 2021 financial guidance, expecting GAAP Revenue between $90 million and $92 million, driven by COVID-19 pressures. Adjusted EBITDA is projected to be in the range of $(22 million) to $(25 million). These forward-looking statements reflect potential risks and uncertainties impacting actual results.
- Appointment of David Fletcher as interim CFO, bringing extensive financial experience in healthcare services.
- Reaffirmation of 2021 financial guidance signaling stability amidst leadership change.
- Departure of CFO may disrupt financial strategies and operations.
- Adjusted EBITDA projected to be negative, indicating potential financial challenges.
RESTON, Va., Sept. 15, 2021 /PRNewswire/ -- SOC Telemed, Inc. (NASDAQ: TLMD, "SOC"), the largest national provider of acute care telemedicine, today announced that Chris Knibb, Chief Financial Officer (CFO), has resigned to pursue other opportunities effective September 23, 2021. The Company will immediately begin a search for a new CFO. David Fletcher has been appointed interim CFO, while SOC searches to identify a successor. Mr. Knibb will be available to support the transition through December 31, 2021.
"I appreciate Chris' leadership and impact on the SOC team," said Dr. Chris Gallagher, Chief Executive Officer of SOC Telemed. "We wish Chris the best of luck and have confidence in our finance team's leadership as we work to identify a successor."
David Fletcher will serve as the Interim Chief Financial Officer of SOC Telemed. Mr. Fletcher is a financial consultant who currently functions as an interim chief financial offer and interim senior financial executive of healthcare services, technology, and services industry companies sponsored by leading private equity firms, including Goldman Sachs, H.I.G. Capital, and Ares Management, among other firms.
Prior to these roles, Mr. Fletcher was a Chief Financial Officer Partner with Tatum, a Randstad company, where he served as acting Chief Financial Officer for Flotek Industries, Inc. and as acting Chief Financial Officer with Envela Corp., among other interim financial executive roles. Prior to Tatum, he served concurrently as Executive Vice President and Chief Financial Officer of three publicly traded companies: American Realty Investors, Inc., Transcontinental Realty Investors Inc., and Income Opportunity Realty Investors. Previously, Mr. Fletcher was Executive Vice President and Chief Financial Officer of a wholly-owned subsidiary of Tarragon Corporation, which had its common stock listed and traded on the NASDAQ and for more than five years prior thereto was employed as a senior manager with Deloitte LLP and as a banker with Bank of America.
Mr. Fletcher holds a Master of Business Administration with a concentration in Finance from the McCombs Graduate School of Business at The University of Texas at Austin, graduating as a Sord Scholar. Mr. Fletcher also holds a Bachelor of Business Administration degree from The University of Iowa.
2021 Financial Guidance
Additionally, SOC is taking the opportunity to re-affirm the financial guidance the company provided during its second quarter earnings call that occurred on Thursday, August 12, 2021.
- GAAP Revenue is expected to be in the range of
$90 million to$92 million , with approximately30% expected to be attributed to Access Physicians - Primary drivers of the guidance include impacts from the Delta variant of COVID-19, specifically on increased pressure on hospital emergency departments, and a change in go-to-market strategy around hardware sales related to the integration of Access Physicians
- Adjusted gross margin is expected to be in the range of
37.0% and40.0% - Adjusted EBITDA is expected to be in the range of
$(22.0) million to$(25.0) million
These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
SOC Telemed has not reconciled its expectations as to Adjusted Gross Margin and Adjusted EBITDA to the most comparable GAAP measures because certain items are out of its control or cannot be reasonably calculated or predicted at this time without unreasonable efforts. Accordingly, a reconciliation for forward-looking Adjusted Gross Margin and Adjusted EBITDA is not available without unreasonable effort.
About SOC Telemed
SOC Telemed (NASDAQ: TLMD, "SOC") is the leading national provider of acute telemedicine technology and solutions to hospitals, health systems, post-acute providers, physician networks, and value-based care organizations since 2004. Build on proven and scalable infrastructure as an enterprise-wide solution, SOC's technology platform, Telemed IQ, rapidly deploys and seamlessly optimizes telemedicine programs across the continuum of care. SOC provides a supportive and dedicated partner presence, virtually delivering patient care through teleNeurology, telePsychiatry, teleCritical Care, telePulmonology, teleInfectious Disease, teleNephrology, teleMaternal-Fetal Medicine and other service lines, enabling healthcare organizations to build sustainable telemedicine programs across clinical specialties. SOC enables organizations to enrich their care models and touch more lives by supplying healthcare teams with industry-leading solutions that drive improved clinical care, patient outcomes and organizational health. The company was the first provider of acute clinical telemedicine services to earn The Joint Commission's Gold Seal of Approval and has maintained that accreditation every year since inception. For more information, visit www.soctelemed.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, statements under "2021 Financial Guidance" and any other statements of expectation or belief. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the effects of disruption to SOC Telemed's businesses of management transitions; the ability of SOC Telemed to retain and hire key personnel; the current and future impact of the COVID-19 pandemic on SOC Telemed's business and industry; the effects of competition on the future business of SOC Telemed; uncertainty regarding the demand for and market utilization of its solution; returns on investments in its business; the ability to maintain customer relationships; difficulties maintaining and expanding its network of qualified physicians and other provider specialists; disruptions in SOC Telemed's relationships with affiliated professional entities or third party suppliers or service providers; general business and economic conditions; the ability of SOC Telemed to successfully execute strategic plans; the timing and market acceptance of new solutions or success of new enhancements, features modifications to existing solutions and the degree to which they gain acceptance. Additional information concerning these and other risk factors is contained in the Risk Factors section of SOC Telemed's most recent quarterly report on Form 10-Q and in subsequent filings with the U.S. Securities and Exchange Commission. SOC Telemed assumes no obligation, and does not intend, to update these forward-looking statements as a result of future events or developments, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Media Relations:
Lauren Shankman
Trevelino/Keller
lshankman@trevelinokeller.com
Investor Relations:
Steve Rubis
Vice President, Investor Relations
SOC Telemed
P: (214) 681-7991
srubis@soctelemed.com
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SOURCE SOC Telemed
FAQ
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