The Oncology Institute Reports Second Quarter 2024 Financial Results and Updates Full Year 2024 Guidance
The Oncology Institute (NASDAQ: TOI) reported its Q2 2024 financial results and updated full-year guidance. Key highlights include:
- 22.9% increase in consolidated revenue to $99 million
- 76% growth in Dispensary segment revenue
- Net loss of $15.5 million, improved from $16.9 million in Q2 2023
- Adjusted EBITDA of $(8.7) million
- Cash and equivalents of $46.4 million as of June 30, 2024
TOI signed 3 new capitation contracts across 2 states, bringing the total to 10 new contracts in 2024. The company is exploring strategic alternatives to maximize shareholder value. Despite a decrease in gross profit, TOI expects significant improvement in net loss and adjusted EBITDA in H2 2024, driven by improving IV margins and newly signed capitated contracts going live in Q3.
L'Oncology Institute (NASDAQ: TOI) ha riportato i risultati finanziari del secondo trimestre 2024 e ha aggiornato le previsioni per l'intero anno. Punti salienti includono:
- Aumento del 22,9% delle entrate consolidate a 99 milioni di dollari
- Crescita del 76% delle entrate del segmento Dispensario
- Perdita netta di 15,5 milioni di dollari, migliorata rispetto ai 16,9 milioni di dollari del secondo trimestre 2023
- EBITDA aggiustato di (8,7) milioni di dollari
- Liquidità e equivalenti di 46,4 milioni di dollari al 30 giugno 2024
TOI ha firmato 3 nuovi contratti di capitazione in 2 stati, portando il totale a 10 nuovi contratti nel 2024. L'azienda sta esplorando alternative strategiche per massimizzare il valore per gli azionisti. Nonostante una diminuzione del profitto lordo, TOI prevede un significativo miglioramento della perdita netta e dell'EBITDA aggiustato nel secondo semestre 2024, grazie al miglioramento dei margini IV e all'attivazione dei nuovi contratti di capitazione nel terzo trimestre.
El Instituto de Oncología (NASDAQ: TOI) informó sus resultados financieros del segundo trimestre de 2024 y actualizó las previsiones para todo el año. Aspectos destacados incluyen:
- Aumento del 22.9% en los ingresos consolidados a 99 millones de dólares
- Crecimiento del 76% en los ingresos del segmento de Dispensario
- Pérdida neta de 15.5 millones de dólares, mejorada desde los 16.9 millones de dólares en el segundo trimestre de 2023
- EBITDA ajustado de (8.7) millones de dólares
- Efectivo y equivalentes de 46.4 millones de dólares hasta el 30 de junio de 2024
TOI firmó 3 nuevos contratos de capitación en 2 estados, llevando el total a 10 nuevos contratos en 2024. La empresa está explorando alternativas estratégicas para maximizar el valor para los accionistas. A pesar de una disminución en el beneficio bruto, TOI espera una mejora significativa en la pérdida neta y el EBITDA ajustado en la segunda mitad de 2024, impulsada por la mejora en los márgenes IV y la activación de los nuevos contratos de capitación en el tercer trimestre.
종양학 연구소(NASDAQ: TOI)가 2024년 2분기 재무 결과를 발표하고 연간 가이드를 업데이트했습니다. 주요 사항은:
- 연결 수입 9900만 달러로 22.9% 증가
- 약국 부문 매출 76% 성장
- 2023년 2분기 1690만 달러에서 개선된 1550만 달러의 순손실
- 조정된 EBITDA는 (870만) 달러
- 2024년 6월 30일 기준 현금 및 현금성 자산은 4640만 달러
TOI는 2개 주에서 3개의 새로운 캡티에이션 계약을 체결하여 2024년 총 10개의 새로운 계약을 체결했습니다. 회사는 주주 가치를 극대화하기 위한 전략적 대안을 모색하고 있습니다. 총이익이 감소했음에도 불구하고 TOI는 2024년 하반기 순손실 및 조정 EBITDA에서 상당한 개선을 예상하고 있으며, 이는 IV 마진의 개선과 3분기에 시행되는 새로 체결된 캡티에이션 계약에 의해 촉진될 것입니다.
L'Institut d'Oncologie (NASDAQ: TOI) a publié ses résultats financiers pour le deuxième trimestre 2024 et a mis à jour ses prévisions pour l'année entière. Les faits saillants incluent :
- Augmentation de 22,9 % des revenus consolidés, atteignant 99 millions de dollars
- Croissance de 76 % des revenus du segment Dispensaire
- Perte nette de 15,5 millions de dollars, améliorée par rapport à 16,9 millions de dollars au deuxième trimestre 2023
- EBITDA ajusté de (8,7) millions de dollars
- Liquidités et équivalents de 46,4 millions de dollars au 30 juin 2024
TOI a signé 3 nouveaux contrats de capitation dans 2 États, portant le total à 10 nouveaux contrats en 2024. L'entreprise explore des alternatives stratégiques pour maximiser la valeur pour les actionnaires. Malgré une diminution de la marge brute, TOI s'attend à une amélioration significative de la perte nette et de l'EBITDA ajusté au second semestre 2024, grâce à l'amélioration des marges IV et à l'activation des nouveaux contrats de capitation au troisième trimestre.
Das Oncology Institute (NASDAQ: TOI) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und die Jahresprognose aktualisiert. Wichtige Höhepunkte sind:
- Anstieg der konsolidierten Einnahmen um 22,9 % auf 99 Millionen US-Dollar
- Wachstum der Einnahmen im Apothekenbereich um 76 %
- Nettoverslust von 15,5 Millionen US-Dollar, verbessert von 16,9 Millionen US-Dollar im 2. Quartal 2023
- Bereinigtes EBITDA von (8,7) Millionen US-Dollar
- Zahlungsmittel und Zahlungsmitteläquivalente in Höhe von 46,4 Millionen US-Dollar zum 30. Juni 2024
TOI hat 3 neue Kapitationsverträge in 2 Bundesstaaten unterzeichnet, was die Gesamtzahl der neuen Verträge im Jahr 2024 auf 10 erhöht. Das Unternehmen erkundet strategische Alternativen zur Maximierung des Aktionärswertes. Trotz eines Rückgangs des Bruttogewinns erwartet TOI eine signifikante Verbesserung des Nettoverslusts und des bereinigten EBITDA in der zweiten Hälfte von 2024, angetrieben durch verbesserte IV-Margen und neu unterzeichnete kapitale Verträge, die im 3. Quartal aktiv werden.
- 22.9% increase in consolidated revenue to $99 million
- 76% growth in Dispensary segment revenue
- Net loss improved from $16.9 million to $15.5 million year-over-year
- 10 new capitation contracts signed in 2024, including 3 in Q2
- Exploring strategic alternatives to maximize shareholder value
- Expecting significant improvement in net loss and adjusted EBITDA in H2 2024
- Gross profit decreased by 13.9% compared to the prior year quarter
- Gross margin declined from 18.8% to 13.2% year-over-year
- Adjusted EBITDA worsened from $(6.9) million to $(8.7) million
- Basic and diluted loss per share of $(0.17), compared to $(0.19) in Q2 2023
Insights
The Oncology Institute's Q2 2024 results present a mixed picture. While revenue grew
The
The signing of 3 new capitation contracts across 2 states is positive for future revenue stability, but their impact on profitability remains to be seen. The mention of exploring strategic alternatives suggests the board is considering options to enhance shareholder value, which could include a sale or major restructuring.
TOI's Q2 results reflect the ongoing challenges in the value-based oncology care model. The company's revenue growth is commendable, especially the
The signing of 10 new capitation contracts year-to-date is significant, as it expands TOI's reach and potentially provides more stable revenue streams. However, the initial costs of servicing these contracts may be contributing to the current margin pressure.
The exploration of strategic alternatives is a important development. It suggests that management recognizes the need for a significant change to improve shareholder value. This could lead to partnerships, mergers, or even a sale of the company, which could reshape the competitive landscape in the value-based oncology sector.
The expected improvement in net loss and adjusted EBITDA in the second half of 2024 will be critical to watch, as it will indicate whether TOI can successfully navigate the transition to profitability in its value-based model.
CERRITOS, Calif., Aug. 13, 2024 (GLOBE NEWSWIRE) -- The Oncology Institute, Inc. (NASDAQ: TOI) (“TOI” or the “Company”), one of the largest value-based community oncology groups in the United States, today reported financial results for its three and six months ended June 30, 2024 and updated its full year 2024 guidance.
Recent Operational Highlights Include
76% increase in Dispensary segment revenue compared to prior year quarter- 3 new capitation contracts signed across 2 states including both medical and radiation oncology services, which brings our new 2024 newly signed capitation contracts to 10
- Exploring strategic alternatives to maximize shareholder value
Second Quarter 2024 Financial Highlights
- Consolidated revenue of
$99 million , an increase of22.9% from$80 million compared to the prior year quarter - Gross profit of
$13 million , a decrease of13.9% compared to the prior year quarter, and gross margin of13.2% , a decrease from18.8% in the prior year quarter - Net loss of
$15.5 million compared to net loss of$16.9 million for the prior year quarter - Basic and diluted (loss) earnings per share of
$(0.17) and$(0.17) , respectively, compared to$(0.19) and$(0.19) , respectively, for the prior year quarter - Adjusted EBITDA of
$(8.7) million compared to$(6.9) million for the prior year quarter - Cash, cash equivalents, and marketable securities of
$46.4 million as of June 30, 2024
Management Commentary
Daniel Virnich, CEO of TOI, commented, "I am very pleased with our performance in the second quarter of 2024, as we delivered strong growth in revenue, while further reducing SG&A. Our Oral drug revenue has seen tremendous growth as we continue to break monthly fill records. While we are disappointed by the recent pressured performance, we feel the worst is behind us. Looking forward to the remainder of the year, 2023 DIR run-out is substantially complete, IV margins in Q3 are improving and with most of the capitated contracts signed in the first half of the year going live in Q3, we expect significant improvement in our net loss and in our adjusted EBITDA in the second half of the year."
Outlook for Fiscal Year 2024
TOI uses Adjusted EBITDA, a non-GAAP metric, as an additional tool to assess its operational performance. See "Financial Information: Non-GAAP Financial Measures" below. In reliance on the unreasonable efforts exception provided under Regulation S-K, TOI is not reasonably able to provide a quantitative reconciliation for forward-looking information of Adjusted EBITDA to net (loss) income, the most directly comparable GAAP financial measure, without unreasonable efforts due to uncertainties regarding taxes, share-based compensation, goodwill impairment charges, change in fair value of liabilities, unrealized (gains) losses on investments, practice acquisition-related costs, consulting and legal fees, transaction costs and other non-cash items. The variability of these items could have an unpredictable, and potentially significant, impact on TOI’s future GAAP financial result.
TOI is updating its full-year 2024 guidance as we have experienced slower than expected margin growth primarily related to the prior year direct and indirect remuneration (DIR) fees run out in 2024 and the termination of a capitation contract. Additionally, we are constantly evaluating opportunities to create efficiencies and reduce costs, while ensuring we maintain the infrastructure needed to continue to provide quality patient care and support our growth. TOI expects interest expense in the range of
2024 Guidance - Updated | 2024 Guidance - Previous | |
Revenue | ||
Gross Profit | ||
Adjusted EBITDA | ||
TOI's achievement of the anticipated results is subject to risks and uncertainties, including those disclosed in its filings with the U.S. Securities and Exchange Commission. The outlook does not take into account the impact of any unanticipated developments in the business or changes in the operating environment, nor does it take into account the impact of TOI's acquisitions, dispositions or financings. TOI's outlook assumes a largely reopened global market, which would be negatively impacted if closures or other restrictive measures persist or are reimplemented.
Second Quarter 2024 Results (for the three months ended June 30, 2024)
Consolidated revenue for Q2 2024 was
Revenue for patient services was
Gross profit in Q2 2024 was
Selling, general and administrative ("SG&A") expenses in Q2 2024 were
Net loss for Q2 2024 was
Adjusted EBITDA was
First Half 2024 Results (for the six months ended June 30, 2024)
Consolidated revenue for the first half of 2024 was
Revenue for patient services in the first half of 2024 was
Gross profit in the first half of 2024 was
SG&A expenses in the first half of 2024 were
Net loss for the first half of 2024 was
Adjusted EBITDA was
Review of Strategic Alternatives
TOI has also announced that its Board of Directors, in consultation with management and financial and legal advisors, has unanimously decided to initiate a full review of a broad range of alternatives to maximize shareholder value. To assist in this process, TOI has engaged Leerink Partners as its financial advisor and Latham & Watkins LLP as its legal advisor. The Board has not set a timetable for completion of its review. There can be no assurance that this review will result in a transaction or other alternative of any kind. The Company does not intend to provide updates on its review until it deems further disclosure is appropriate or required.
Webcast and Conference Call
TOI will host a conference call on Tuesday, August 13, 2024 at 5:00 p.m. (Eastern Time) to discuss second quarter results and management’s outlook for future financial and operational performance.
The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13744947. The replay will be available until August 20, 2024.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of TOI's website at https://investors.theoncologyinstitute.com.
About The Oncology Institute, Inc.
Founded in 2007, TOI is advancing oncology by delivering highly specialized, value-based cancer care in the community setting. TOI offers cutting-edge, evidence-based cancer care to a population of approximately 2.1 million patients including clinical trials, transfusions, and other services traditionally associated with the most advanced care delivery organizations. With nearly 126 employed clinicians and more than 700 teammates in over 73 clinic locations and growing, TOI is changing oncology for the better. For more information visit www.theoncologyinstitute.com.
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “preliminary,” “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “predict,” “potential,” “guidance,” “approximately,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, anticipated financial results, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations. These statements are based on various assumptions and on the current expectations of TOI and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by anyone as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of TOI. These forward-looking statements are subject to a number of risks and uncertainties, including the accuracy of the assumptions underlying the 2024 outlook discussed herein, the outcome of judicial and administrative proceedings to which TOI may become a party or investigations to which TOI may become or is subject that could interrupt or limit TOI’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in TOI’s patient or payors' preferences, prospects and the competitive conditions prevailing in the healthcare sector; failure to continue to meet stock exchange listing standards; the impact of COVID-19 on TOI’s business; those factors discussed in the documents of TOI filed, or to be filed, with the SEC, including the Item 1A. "Risk Factors" section of TOI's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 28, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that TOI currently is evaluating or does not presently know or that TOI currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect TOI’s plans or forecasts of future events and views as of the date of this press release. TOI anticipates that subsequent events and developments will cause TOI’s assessments to change. TOI does not undertake any obligation to update any of these forward-looking statements. These forward-looking statements should not be relied upon as representing TOI’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as Adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). TOI’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented in this press release in conjunction with TOI’s financial statements and the related notes thereto.
TOI believes that the use of Adjusted EBITDA provides an additional tool to assess operational performance and results of our performance to plan and forecast future periods, and factors and trends in, and in comparing our financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. The principal limitation of Adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recorded in TOI's financial statements.
TOI defines Adjusted EBITDA as net (loss) income plus depreciation, amortization, interest, taxes, non-cash items, share-based compensation, goodwill impairment charges, change in fair value of liabilities, unrealized gains or losses on investments and other adjustments to add-back the following: consulting and legal fees related to acquisitions, one-time consulting and legal fees related to certain advisory projects, software implementations and debt or equity financings, severance expense and temporary labor and recruiting charges to build out our corporate infrastructure. A reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP metric, is set forth below.
Adjusted EBITDA Reconciliation | |||||||||||||||
Three Months Ended June 30, | Change | ||||||||||||||
(dollars in thousands) | 2024 | 2023 | $ | % | |||||||||||
Net loss | $ | (15,479 | ) | $ | (16,897 | ) | $ | 1,418 | (8.4 | )% | |||||
Depreciation and amortization | 1,518 | 1,329 | 189 | 14.2 | % | ||||||||||
Interest expense, net | 2,118 | 1,638 | 480 | 29.3 | % | ||||||||||
Income tax expense | — | 99 | (99 | ) | (100.0 | )% | |||||||||
Non-cash addbacks(1) | (69 | ) | 23 | (92 | ) | (400.0 | )% | ||||||||
Share-based compensation | 3,387 | 4,106 | (719 | ) | (17.5 | )% | |||||||||
Changes in fair value of liabilities | (3,120 | ) | (136 | ) | (2,984 | ) | 2,194.1 | % | |||||||
Unrealized (gains) losses on investments | (34 | ) | 267 | (301 | ) | (112.7 | )% | ||||||||
Practice acquisition-related costs(2) | — | 55 | (55 | ) | (100.0 | )% | |||||||||
Post-combination compensation expense(3) | 186 | 581 | (395 | ) | (68.0 | )% | |||||||||
Consulting and legal fees(4) | 245 | 929 | (684 | ) | (73.6 | )% | |||||||||
Infrastructure and workforce costs(5) | 2,539 | 1,042 | 1,497 | 143.7 | % | ||||||||||
Transaction costs(6) | — | 20 | (20 | ) | (100.0 | )% | |||||||||
Adjusted EBITDA | $ | (8,709 | ) | $ | (6,944 | ) | $ | (1,765 | ) | 25.4 | % | ||||
(1) During the three months ended June 30, 2024, non-cash addbacks were primarily comprised of non-cash rent of
(2) Practice acquisition-related costs were comprised of consulting and legal fees incurred to perform due diligence, execute, and integrate acquisitions of various oncology practices.
(3) Deferred consideration payments for practice acquisitions that are contingent upon the seller’s future employment at the Company.
(4) Consulting and legal fees were comprised of a subset of the Company’s total consulting and legal fees, and related to certain non-recurring advisory projects during the three months ended June 30, 2024. During the three months ended June 30, 2023, these fees related to non-recurring advisory projects and software implementations.
(5) Infrastructure and workforce costs were comprised of recruiting expenses to build out corporate infrastructure of
(6) Transaction costs incurred during the three months ended June 30, 2023 were comprised of consulting, legal, administrative and regulatory fees associated with non-recurring due diligence projects.
Six Months Ended June 30, | Change | |||||||||||||
(dollars in thousands) | 2024 | 2023 | $ | % | ||||||||||
Net loss | $ | (35,368 | ) | $ | (46,895 | ) | $ | 11,527 | (24.6 | )% | ||||
Depreciation and amortization | 3,007 | 2,598 | 409 | 15.7 | % | |||||||||
Interest expense, net | 4,103 | 3,081 | 1,022 | 33.2 | % | |||||||||
Income tax expense | — | 142 | (142 | ) | (100.0 | )% | ||||||||
Non-cash addbacks(1) | (108 | ) | 165 | (273 | ) | (165.5 | )% | |||||||
Share-based compensation | 7,474 | 9,072 | (1,598 | ) | (17.6 | )% | ||||||||
Goodwill impairment charges | — | 16,867 | (16,867 | ) | N/A | |||||||||
Changes in fair value of liabilities | (3,120 | ) | (4,348 | ) | 1,228 | (28.2 | )% | |||||||
Unrealized (gains) losses on investments | (116 | ) | 125 | (241 | ) | N/A | ||||||||
Practice acquisition-related costs(2) | — | 71 | (71 | ) | (100.0 | )% | ||||||||
Post-combination compensation expense(3) | 316 | 1,162 | (846 | ) | N/A | |||||||||
Consulting and legal fees(4) | 420 | 1,514 | (1,094 | ) | (72.3 | )% | ||||||||
Infrastructure and workforce costs(5) | 3,724 | 2,115 | 1,609 | 76.1 | % | |||||||||
Transaction costs(6) | 18 | 28 | (10 | ) | (35.7 | )% | ||||||||
Adjusted EBITDA | $ | (19,650 | ) | $ | (14,303 | ) | $ | (5,347 | ) | 37.4 | % | |||
(1) During the six months ended June 30, 2024, non-cash addbacks were primarily comprised of non-cash rent of
(2) Practice acquisition-related costs were comprised of consulting and legal fees incurred to perform due diligence, execute, and integrate acquisitions of various oncology practices.
(3) Deferred consideration payments for practice acquisitions that are contingent upon the seller’s future employment at the Company.
(4) Consulting and legal fees were comprised of a subset of the Company’s total consulting and legal fees, and related to certain non-recurring advisory projects during the six months ended June 30, 2024. During the six months ended June 30, 2023, these fees related to certain non-recurring advisory projects.
(5) Infrastructure and workforce costs were primarily comprised of non-recurring legal fees related to infrastructure build out of
(6) Transaction costs incurred during the six months ended June 30, 2024 were comprised of consulting, legal, administrative and regulatory fees associated with non-recurring due diligence projects.
Key Business Metrics | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Clinics (1) | 87 | 83 | 87 | 83 | |||||||||||
Markets | 14 | 15 | 14 | 15 | |||||||||||
Lives under value-based contracts (millions) | 2.1 | 1.8 | 2.1 | 1.8 | |||||||||||
Adjusted EBITDA (in thousands) | $ | (8,710 | ) | $ | (6,944 | ) | $ | (19,650 | ) | $ | (14,303 | ) | |||
(1) Includes independent oncology practices to which we provide limited management services, but do not bear the operating costs.
Consolidated Balance Sheets (Unaudited)
(in thousands except share data)
June 30, 2024 | December 31, 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 36,424 | $ | 33,488 | |||
Marketable securities | 9,939 | 49,367 | |||||
Accounts receivable, net | 54,017 | 42,360 | |||||
Other receivables | 350 | 551 | |||||
Inventories | 11,322 | 13,678 | |||||
Prepaid expenses and other current assets | 4,157 | 4,049 | |||||
Total current assets | 116,209 | 143,493 | |||||
Property and equipment, net | 12,232 | 10,883 | |||||
Operating right of use assets | 26,992 | 29,169 | |||||
Intangible assets, net | 16,357 | 17,904 | |||||
Goodwill | 7,230 | 7,230 | |||||
Other assets | 582 | 561 | |||||
Total assets | $ | 179,602 | $ | 209,240 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 15,750 | $ | 14,429 | |||
Current portion of operating lease liabilities | 6,521 | 6,363 | |||||
Accrued expenses and other current liabilities | 12,831 | 13,996 | |||||
Total current liabilities | 35,102 | 34,788 | |||||
Operating lease liabilities | 24,535 | 26,486 | |||||
Derivative warrant liabilities | 84 | 636 | |||||
Conversion option derivative liabilities | 514 | 3,082 | |||||
Long-term debt, net of unamortized debt issuance costs | 89,950 | 86,826 | |||||
Other non-current liabilities | 179 | 365 | |||||
Deferred income taxes liability | 32 | 32 | |||||
Total liabilities | 150,396 | 152,215 | |||||
Stockholders’ equity: | |||||||
Common Stock, | 8 | 8 | |||||
Series A Convertible Preferred Stock, | — | — | |||||
Additional paid-in capital | (1,019 | ) | 204,186 | ||||
Treasury Stock at cost, 1,733,774 shares at June 30, 2024 and December 31, 2023 | 211,735 | (1,019 | ) | ||||
Accumulated deficit | (181,518 | ) | (146,150 | ) | |||
Total stockholders’ equity | 29,206 | 57,025 | |||||
Total liabilities and stockholders’ equity | $ | 179,602 | $ | 209,240 | |||
Consolidated Statements of Operations (Unaudited)
(in thousands except share data)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | |||||||||||||||
Patient services | $ | 52,461 | $ | 53,426 | $ | 104,914 | $ | 103,699 | |||||||
Dispensary | 44,440 | 25,196 | 84,119 | 49,436 | |||||||||||
Clinical trials & other | 1,677 | 1,602 | 4,211 | 3,281 | |||||||||||
Total operating revenue | 98,578 | 80,224 | 193,244 | 156,416 | |||||||||||
Operating expenses | |||||||||||||||
Direct costs – patient services | 46,522 | 44,878 | 96,019 | 87,692 | |||||||||||
Direct costs – dispensary | 38,801 | 20,111 | 71,610 | 39,256 | |||||||||||
Direct costs – clinical trials & other | 229 | 118 | 620 | 252 | |||||||||||
Goodwill impairment charges | — | — | — | 16,867 | |||||||||||
Selling, general and administrative expense | 27,872 | 28,726 | 56,324 | 57,556 | |||||||||||
Depreciation and amortization | 1,518 | 1,329 | 3,007 | 2,598 | |||||||||||
Total operating expenses | 114,942 | 95,162 | 227,580 | 204,221 | |||||||||||
Loss from operations | (16,364 | ) | (14,938 | ) | (34,336 | ) | (47,805 | ) | |||||||
Other non-operating expense (income) | |||||||||||||||
Interest expense, net | 2,118 | 1,638 | 4,103 | 3,081 | |||||||||||
Change in fair value of derivative warrant liabilities | (552 | ) | (118 | ) | (552 | ) | (261 | ) | |||||||
Change in fair value of earnout liabilities | — | (17 | ) | — | (769 | ) | |||||||||
Change in fair value of conversion option derivative liabilities | (2,568 | ) | — | (2,568 | ) | (3,318 | ) | ||||||||
Other, net | 117 | 357 | 49 | 214 | |||||||||||
Total other non-operating (income) loss | (885 | ) | 1,860 | 1,032 | (1,053 | ) | |||||||||
Loss before provision for income taxes | (15,479 | ) | (16,798 | ) | (35,368 | ) | (46,752 | ) | |||||||
Income tax expense | — | (99 | ) | — | (143 | ) | |||||||||
Net loss | $ | (15,479 | ) | $ | (16,897 | ) | $ | (35,368 | ) | $ | (46,895 | ) | |||
Net loss per share attributable to common stockholders: | |||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.39 | ) | $ | (0.52 | ) | |||
Diluted | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.39 | ) | $ | (0.52 | ) | |||
Weighted-average number of shares outstanding: | |||||||||||||||
Basic | 74,748,365 | 74,119,910 | 74,491,326 | 73,786,374 | |||||||||||
Diluted | 74,748,365 | 74,119,910 | 74,491,326 | 73,786,374 | |||||||||||
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (35,368 | ) | $ | (46,895 | ) | |
Adjustments to reconcile net loss to cash and cash equivalents used in operating activities: | |||||||
Depreciation and amortization | 3,007 | 2,598 | |||||
Amortization of debt issuance costs and debt discount | 3,124 | 3,067 | |||||
Goodwill impairment charges | — | 16,867 | |||||
Share-based compensation | 7,474 | 9,072 | |||||
Change in fair value of liability classified warrants | (552 | ) | (261 | ) | |||
Change in fair value of liability classified earnouts | — | (769 | ) | ||||
Change in fair value of liability classified conversion option derivatives | (2,568 | ) | (3,318 | ) | |||
Realized loss on sale of investments | — | 11 | |||||
Unrealized (gain) loss on investments | (121 | ) | 113 | ||||
Accretion of discount on investment securities | (451 | ) | (1,589 | ) | |||
Deferred taxes | — | (30 | ) | ||||
Credit losses | — | (2 | ) | ||||
Loss on disposal of property and equipment | 50 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (11,657 | ) | (6,576 | ) | |||
Other receivables | 201 | 118 | |||||
Inventories | 2,356 | (2,907 | ) | ||||
Prepaid expenses and other current assets | (108 | ) | 1,091 | ||||
Operating right-of-use assets | 2,177 | 3,125 | |||||
Other assets | (21 | ) | (80 | ) | |||
Accounts payable | 898 | 3,751 | |||||
Current and long-term operating lease liabilities | (1,793 | ) | (2,529 | ) | |||
Accrued expenses and other current liabilities | 1,976 | 1,350 | |||||
Income taxes payable | — | 1 | |||||
Other non-current liabilities | (167 | ) | (320 | ) | |||
Net cash and cash equivalents used in operating activities | (31,543 | ) | (24,112 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (2,436 | ) | (2,776 | ) | |||
Cash paid for practice acquisitions, net | — | (4,300 | ) | ||||
Purchases of marketable securities/investments | — | (9,747 | ) | ||||
Sales of marketable securities/investments | 40,000 | 60,127 | |||||
Net cash and cash equivalents provided by investing activities | 37,564 | 43,304 | |||||
Cash flows from financing activities: | |||||||
Payments made for financing of insurance payments | (1,002 | ) | (2,576 | ) | |||
Payment of deferred consideration liability for acquisition | (2,140 | ) | (759 | ) | |||
Principal payments on financing leases | (18 | ) | (81 | ) | |||
Common stock repurchase | — | (894 | ) | ||||
Common stock issued for options exercised | 75 | — | |||||
Net cash and cash equivalents used in financing activities | (3,085 | ) | (4,310 | ) | |||
Net increase in cash and cash equivalents | 2,936 | 14,882 | |||||
Cash and cash equivalents at beginning of period | 33,488 | 14,010 | |||||
Cash and cash equivalents at end of period | $ | 36,424 | $ | 28,892 | |||
Contacts
Media
The Oncology Institute, Inc.
Daniel Virnich, MD
danielvirnich@theoncologyinstitute.com
(562) 735-3226 x 81125
Revive
Michael Petrone
mpetrone@reviveagency.com
(615) 760-4542
Investors
Solebury Strategic Communications
investors@theoncologyinstitute.com
FAQ
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