Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CareMax, Inc. Announces First Quarter 2022 Financial Results By: CareMax, Inc. via Business Wire May 10, 2022 at 06:55 AM EDT First Quarter 2022 Medicare Advantage Membership of 34,000, up 106% year-over-year1 First Quarter 2022 GAAP Total Revenue of $136.9 million, up 390% Compared to First Quarter 2021 Total Revenue of $27.9 Million, or up 55% on a Pro Forma Basis1 Reaffirms Full Year 2022 Guidance Entered into a $300.0 million Credit Agreement CareMax, Inc. (NASDAQ: CMAX; CMAXW), a leading technology-enabled provider of value-based care to seniors, announced today financial results for the first quarter ended March 31, 2022. “We had a strong start to the year and continue to execute on our strategy of maintaining profitable growth in our core markets while opening de novo centers in new markets” said Carlos de Solo, Chief Executive Officer. “Our entry into the Memphis, Tennessee and New York City markets is the first step in our national expansion plans as we progress on our vision to improve healthcare and quality of life for underserved communities across the U.S.” First Quarter 2022 Results1,2 Total revenue was $136.9 million, up 55% year-over-year. Medical Expense Ratio was 72.6%, compared to 71.5% for the first quarter of 2021.3 Net loss was $16.8 million, or $(0.19) per diluted share. Adjusted EBITDA was $5.9 million; excluding the estimated impacts from COVID, Adjusted EBITDA would have been $6.8 million. Platform Contribution was $17.3 million; excluding the estimated impacts from COVID, Platform Contribution would have been $18.2 million. Financial Outlook for Full Year 20221,2 CareMax, Inc. is reaffirming the following full year 2022 financial guidance: Year-end Medicare Advantage membership of 38,000 to 40,000, up 13% to 19% year-over-year. Total revenue of $540 million to $560 million, up 34% to 39% year-over-year, compared to $403 million for the prior year. Adjusted EBITDA in the range of $30 million to $40 million, up 125% to 200% year-over-year, compared to $13.3 million for the prior year. For 2022, Adjusted EBITDA also excludes losses from de novo centers. The Company continues to expect to open 15 de novo centers in 2022, inclusive of the three opened in the first quarter of 2022. 1Year-over-year comparisons to 2021 are pro forma for the business combinations of IMC Medical Group Holdings and Care Holdings as if they had occurred on January 1, 2021. A reconciliation of the pro forma financial information to GAAP financial statements is included in this earnings release. 2Adjusted EBITDA and Platform Contribution are non-GAAP financial metrics. A reconciliation of non-GAAP metrics to GAAP financial statements is included in this earnings release. 3 Medical Expense Ratio equals external provider costs divided by Medicare and Medicaid risk-based revenues. New $300.0 Million Credit Agreement On May 10, 2022, CareMax entered into a new $300.0 million Credit Agreement consisting of a $190.0 million initial term loan and a $110.0 million delayed draw term loan. The proceeds of the initial term loan will be used in part to repay in full CareMax’s existing $120.3 million term loan maturing June 8, 2026, with additional proceeds expected to be used to support CareMax’s de novo growth strategy and fund working capital needs. Additional information regarding the new Credit Agreement will be included in the Company’s Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission. Conference Call Details Management will host a conference call at 8:30 am ET today to discuss the results and business activities. A live audio webcast as well as related presentation materials will be available at ir.caremax.com. The conference call can also be accessed by dialing (888) 440-6519 for U.S. participants, or (646) 960-0384 for international participants, and referring conference ID 4345921. Following the live call, a replay will be available on the Company's website About CareMax CareMax is a technology-enabled care platform providing value-based care and chronic disease management to seniors. CareMax operates centers that offer a comprehensive suite of healthcare and social services, and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Learn more at www.caremax.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and strategy, the effects of the restatement of the Company’s past financial statements and the filing of the Company’s periodic reports. 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 reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. 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 the Company's actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the impact of COVID-19 or any variant thereof on the Company's business and results of operation; the availability of sites for de novo centers and the costs of opening such de novo centers; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to the Company's services; the Company's ability to continue its growth, including in new markets; changes in laws and regulations applicable to the Company's business, in particular with respect to Medicare Advantage and Medicaid; the Company's ability to maintain its relationships with health plans and other key payers; any delay, modification or cancellation of government contracts; the Company's future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs and the Company’s ability to comply with the covenants under its credit agreement; the Company or any other party’s ability to fulfill contractual obligations; the impact of board leadership changes; the Company's ability to recruit and retain qualified team members and independent physicians; and risks related to future acquisitions. For a detailed discussion of the risk factors that could affect the Company's actual results, please refer to the risk factors identified in the Company's reports filed with the SEC. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update or revise this information unless required by law, and forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Use of Non-GAAP Financial Information Certain financial information and data contained in this press release is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by the Company with the SEC. Some of the financial information and data contained in this press release, such as Adjusted EBITDA and margin thereof and Platform Contribution and margin thereof and have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non-GAAP measures of financial results are not GAAP measures of our financial results or liquidity and should not be considered as an alternative to net income (loss) as a measure of financial results, cash flows from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they 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. For this reason, these non-GAAP measures may not be comparable to other Companies’ similarly labeled non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review the Company’s audited financial statements, which have been filed by the Company with the SEC. A reconciliation for Adjusted EBITDA and Platform Contribution to the most directly comparable GAAP financial measures is included below. A reconciliation of projected 2022 Adjusted EBITDA to the most directly comparable GAAP financial measure is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate this. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results. Use of Pro Forma Financial Information and Pro Forma Non-GAAP Financial Information Certain of the information presented in the Non-GAAP Financial Summary and in the reconciliations to non-GAAP financial measures includes pro forma information derived from the unaudited pro forma statements of operations which are provided for informational purposes only and are not necessarily indicative of the operating results or financial position that would have occurred if the acquisitions of IMC and Care Holdings had occurred in the stated historical periods, nor are they indicative of the future results or financial position of the combined company. The unaudited pro forma statements of operations do not give effect to the potential impact, of any anticipated synergies, operating efficiencies or cost savings that may result from the acquisitions of IMC and Care Holdings, any integration costs or tax deductibility of transaction costs. Additionally, Adjusted EBITDA presented on a pro forma basis gives effect to the acquisitions of IMC and Care Holdings as if they had occurred in historical periods. Such non-GAAP financial measures do not necessarily reflect what the Company’s Adjusted EBITDA would have been had the acquisitions occurred on the dates indicated. CAREMAX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) March 31, 2022 December 31, 2021 ASSETS CURRENT ASSETS Cash $ 32,740 $ 47,917 Accounts receivable, net 53,581 41,998 Inventory 702 550 Prepaid expenses 20,045 17,040 Risk settlements due from providers 655 539 Total Current Assets 107,723 108,044 Property and equipment, net 16,895 15,993 Goodwill 464,264 464,566 Intangible assets, net 55,604 59,811 Deferred debt issuance costs 1,860 1,972 Other assets 2,738 2,706 Total Assets $ 649,085 $ 653,092 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 5,165 $ 3,110 Accrued expenses 12,365 8,690 Risk settlements due to providers 228 196 Current portion of long-term debt 6,272 6,275 Other current liabilities 4,107 3,687 Total Current Liabilities 28,137 21,959 Derivative warrant liabilities 11,911 8,375 Long-term debt, less current portion 109,660 110,960 Other liabilities 7,186 6,428 Total Liabilities 156,895 147,722 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock (1,000,000 authorized and zero outstanding as of March 31, 2022 and December 31, 2021) - - Class A common stock ($0.0001 par value; 250,000,000 shares authorized; 87,367,972 shares issued and outstanding at March 31, 2022 and December 31, 2021) 9 9 Additional paid-in-capital 508,945 505,327 Retained (deficit) earnings (16,763 ) 33 Total Stockholders' Equity 492,190 505,370 Total Liabilities and Stockholders' Equity $ 649,085 $ 653,092 CAREMAX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Revenue Medicare risk-based revenue $ 107,747 $ 27,816 Medicaid risk-based revenue 20,165 - Other revenue 9,008 102 Total revenue 136,920 27,918 Operating expenses External provider costs 92,856 18,159 Cost of care 27,349 5,353 Sales and marketing 3,301 291 Corporate, general and administrative 18,978 1,795 Depreciation and amortization 5,062 514 Acquisition related costs 266 - Total operating expenses 147,811 26,112 Operating (loss) income (10,890 ) 1,806 Interest expense (1,728 ) (504 ) Loss on remeasurement of warrant liabilities (3,536 ) - Other income (expense), net (462 ) - (Loss) income before income tax (16,616 ) 1,302 Income tax provision (181 ) - Net (loss) income $ (16,797 ) $ 1,302 Weighted average basic shares outstanding 87,367,972 10,796,069 Weighted average diluted shares outstanding 87,367,972 10,796,069 Net (loss) income per share Basic $ (0.19 ) $ 0.12 Diluted $ (0.19 ) $ 0.12 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/Income $ (16,797 ) $ 1,302 Adjustments to reconcile net (loss)/income to net cash Depreciation and amortization expense 5,062 514 Amortization of debt issuance costs 378 35 Stock compensation expense 1,087 - Loss on remeasurement of warrant liabilities 3,536 - Other non-cash, net 202 - Changes in operating assets and liabilities: Accounts receivable (10,992 ) 639 Inventory (152 ) (1 ) Prepaid expenses (475 ) 15 Risk settlements due from/due to providers (84 ) (281 ) Due to/from related parties - (392 ) Other assets (52 ) (205 ) Accounts payable 1,470 1,160 Accrued expenses 3,675 (134 ) Other liabilities 1,002 720 Net Cash (Used In)/Provided by Operating Activities (12,139 ) 3,372 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (1,467 ) (1,690 ) Net Cash Used in Investing Activities (1,467 ) (1,690 ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (1,570 ) (181 ) Net Cash Used In Financing Activities (1,570 ) (181 ) NET (DECREASE)/INCREASE IN CASH (15,176 ) 1,501 Cash - Beginning of Period 47,917 4,934 CASH - END OF PERIOD $ 32,740 $ 6,435 Non-GAAP Financial Summary* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Medicare risk revenue $ 63,373 $ 62,040 $ 63,188 $ 65,210 $ 65,394 $ 66,618 $ 76,428 $ 91,277 $ 107,747 Medicaid risk revenue 10,827 14,828 20,565 19,062 18,897 20,454 20,884 20,160 20,165 Other revenue 4,608 4,126 3,351 3,801 4,127 4,839 7,308 6,869 9,008 Total revenue 78,808 80,994 87,104 88,073 88,418 91,911 104,620 118,306 136,920 External provider costs 53,472 52,780 60,158 57,775 60,278 70,466 73,329 79,724 92,856 Cost of care 11,246 10,093 11,417 12,446 13,427 13,246 20,315 22,538 26,791 Platform contribution 14,090 18,121 15,529 17,852 14,712 8,199 10,976 16,044 17,274 Platform contribution margin (%) 17.9 % 22.4 % 17.8 % 20.3 % 16.6 % 8.9 % 10.5 % 13.6 % 12.6 % Sales and marketing $ 1,057 $ 1,245 $ 1,290 $ 1,431 $ 391 $ 1,688 $ 1,274 $ 2,615 $ 3,301 Corporate, general and administrative 7,858 5,667 6,069 6,519 7,197 6,347 8,668 9,662 9,230 Adjusted operating expenses 8,915 6,912 7,359 7,951 7,588 8,036 9,942 12,276 12,531 De novo losses 3 24 68 484 184 364 195 489 1,119 Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Non-GAAP Operating Metrics* Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Centers 21 21 22 24 24 34 40 45 48 Markets** 1 1 1 1 1 2 3 4 6 Patients (MCREM)*** 24,800 27,500 29,000 28,400 29,200 35,300 40,400 50,100 50,600 At-Risk 84.8 % 86.7 % 85.6 % 87.7 % 87.0 % 84.1 % 87.2 % 79.3 % 79.8 % Platform Contribution ($, Millions)**** $ 14.1 $ 18.1 $ 15.5 $ 17.9 $ 14.7 $ 8.2 $ 11.0 $ 16.0 $ 17.3 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. ** CareMax currently defines markets as metropolitan statistical areas (MSA); markets were previously defined as states. *** MCREM defined as Medicare Equivalent Members, which assumes the level of support received by a Medicare patient is equivalent to that received by three Medicaid or Commercial patients. **** Platform contribution defined as revenue less external provider costs and cost of care. Reconciliation to Adjusted EBITDA* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Net Income (Loss) $ 3,170 $ 3,466 $ (281 ) $ 1,218 $ 1,302 $ 10,057 $ (14,479 ) $ (3,553 ) $ (16,797 ) GAAP Pro Forma Adjustments (3,513 ) 160 (189 ) 1,912 (2,730 ) (6,186 ) - - - Pro Forma Net (Loss) Income $ (343 ) $ 3,626 $ (470 ) $ 3,130 $ (1,429 ) $ 3,871 $ (14,479 ) $ (3,553 ) $ (16,797 ) Interest expense 1,658 1,689 1,656 1,628 1,400 1,667 1,291 1,905 1,728 Depreciation and amortization 3,514 3,244 3,368 3,418 2,979 3,339 5,176 6,089 5,062 Income tax provision - - - - - - - 159 181 Loss/(Gain) on remeasurement of warrant liabilities - - - - - (1,795 ) (10,227 ) (8,735 ) 3,536 Loss/(Gain) on remeasurement of earnout liabilities - - - - - (17,420 ) 11,625 - - Loss on disposal of fixed assets, net - - - - - - - 50 - Loss/(Gain) on extinguishment of debt - - - 451 - 806 (279 ) 7 - Other expense/(income) (2 ) (12 ) 100 (997 ) 212 (2,367 ) 840 493 462 EBITDA 4,827 8,547 4,653 7,630 3,162 (11,900 ) (6,053 ) (3,585 ) (5,829 ) Other adjustments Non-recurring expenses (309 ) 1,985 2,763 1,390 2,795 8,257 4,249 4,653 6,055 Acquisition costs 656 678 789 893 1,168 3,806 1,871 2,325 3,429 Stock based compensation - - - - - - 966 375 1,087 De novo losses 3 24 68 484 184 364 195 489 1,119 Discontinued operations - (0 ) (35 ) (12 ) (1 ) (0 ) - - - Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Reconciliation to Platform Contribution (in thousands) GAAP Q1 2022 Adjustments Non-GAAP Q1 2022 Revenue $ 136,920 $ - $ 136,920 less: External provider costs 92,856 - 92,856 less: Cost of care 27,349 (558 ) 26,791 Platform Contribution $ 17,274 Estimated impact of COVID 953 953 Platform Contribution, excluding impact of COVID $ 18,227 View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005673/en/Contacts Media Christine Bucan (305) 542-8855 Christine@thinkbsg.com Investor Relations Samantha Swerdlin (847) 924-8980 samantha.swerdlin@caremax.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CareMax, Inc. Announces First Quarter 2022 Financial Results By: CareMax, Inc. via Business Wire May 10, 2022 at 06:55 AM EDT First Quarter 2022 Medicare Advantage Membership of 34,000, up 106% year-over-year1 First Quarter 2022 GAAP Total Revenue of $136.9 million, up 390% Compared to First Quarter 2021 Total Revenue of $27.9 Million, or up 55% on a Pro Forma Basis1 Reaffirms Full Year 2022 Guidance Entered into a $300.0 million Credit Agreement CareMax, Inc. (NASDAQ: CMAX; CMAXW), a leading technology-enabled provider of value-based care to seniors, announced today financial results for the first quarter ended March 31, 2022. “We had a strong start to the year and continue to execute on our strategy of maintaining profitable growth in our core markets while opening de novo centers in new markets” said Carlos de Solo, Chief Executive Officer. “Our entry into the Memphis, Tennessee and New York City markets is the first step in our national expansion plans as we progress on our vision to improve healthcare and quality of life for underserved communities across the U.S.” First Quarter 2022 Results1,2 Total revenue was $136.9 million, up 55% year-over-year. Medical Expense Ratio was 72.6%, compared to 71.5% for the first quarter of 2021.3 Net loss was $16.8 million, or $(0.19) per diluted share. Adjusted EBITDA was $5.9 million; excluding the estimated impacts from COVID, Adjusted EBITDA would have been $6.8 million. Platform Contribution was $17.3 million; excluding the estimated impacts from COVID, Platform Contribution would have been $18.2 million. Financial Outlook for Full Year 20221,2 CareMax, Inc. is reaffirming the following full year 2022 financial guidance: Year-end Medicare Advantage membership of 38,000 to 40,000, up 13% to 19% year-over-year. Total revenue of $540 million to $560 million, up 34% to 39% year-over-year, compared to $403 million for the prior year. Adjusted EBITDA in the range of $30 million to $40 million, up 125% to 200% year-over-year, compared to $13.3 million for the prior year. For 2022, Adjusted EBITDA also excludes losses from de novo centers. The Company continues to expect to open 15 de novo centers in 2022, inclusive of the three opened in the first quarter of 2022. 1Year-over-year comparisons to 2021 are pro forma for the business combinations of IMC Medical Group Holdings and Care Holdings as if they had occurred on January 1, 2021. A reconciliation of the pro forma financial information to GAAP financial statements is included in this earnings release. 2Adjusted EBITDA and Platform Contribution are non-GAAP financial metrics. A reconciliation of non-GAAP metrics to GAAP financial statements is included in this earnings release. 3 Medical Expense Ratio equals external provider costs divided by Medicare and Medicaid risk-based revenues. New $300.0 Million Credit Agreement On May 10, 2022, CareMax entered into a new $300.0 million Credit Agreement consisting of a $190.0 million initial term loan and a $110.0 million delayed draw term loan. The proceeds of the initial term loan will be used in part to repay in full CareMax’s existing $120.3 million term loan maturing June 8, 2026, with additional proceeds expected to be used to support CareMax’s de novo growth strategy and fund working capital needs. Additional information regarding the new Credit Agreement will be included in the Company’s Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission. Conference Call Details Management will host a conference call at 8:30 am ET today to discuss the results and business activities. A live audio webcast as well as related presentation materials will be available at ir.caremax.com. The conference call can also be accessed by dialing (888) 440-6519 for U.S. participants, or (646) 960-0384 for international participants, and referring conference ID 4345921. Following the live call, a replay will be available on the Company's website About CareMax CareMax is a technology-enabled care platform providing value-based care and chronic disease management to seniors. CareMax operates centers that offer a comprehensive suite of healthcare and social services, and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Learn more at www.caremax.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and strategy, the effects of the restatement of the Company’s past financial statements and the filing of the Company’s periodic reports. 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 reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. 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 the Company's actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the impact of COVID-19 or any variant thereof on the Company's business and results of operation; the availability of sites for de novo centers and the costs of opening such de novo centers; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to the Company's services; the Company's ability to continue its growth, including in new markets; changes in laws and regulations applicable to the Company's business, in particular with respect to Medicare Advantage and Medicaid; the Company's ability to maintain its relationships with health plans and other key payers; any delay, modification or cancellation of government contracts; the Company's future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs and the Company’s ability to comply with the covenants under its credit agreement; the Company or any other party’s ability to fulfill contractual obligations; the impact of board leadership changes; the Company's ability to recruit and retain qualified team members and independent physicians; and risks related to future acquisitions. For a detailed discussion of the risk factors that could affect the Company's actual results, please refer to the risk factors identified in the Company's reports filed with the SEC. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update or revise this information unless required by law, and forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Use of Non-GAAP Financial Information Certain financial information and data contained in this press release is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by the Company with the SEC. Some of the financial information and data contained in this press release, such as Adjusted EBITDA and margin thereof and Platform Contribution and margin thereof and have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non-GAAP measures of financial results are not GAAP measures of our financial results or liquidity and should not be considered as an alternative to net income (loss) as a measure of financial results, cash flows from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they 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. For this reason, these non-GAAP measures may not be comparable to other Companies’ similarly labeled non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review the Company’s audited financial statements, which have been filed by the Company with the SEC. A reconciliation for Adjusted EBITDA and Platform Contribution to the most directly comparable GAAP financial measures is included below. A reconciliation of projected 2022 Adjusted EBITDA to the most directly comparable GAAP financial measure is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate this. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results. Use of Pro Forma Financial Information and Pro Forma Non-GAAP Financial Information Certain of the information presented in the Non-GAAP Financial Summary and in the reconciliations to non-GAAP financial measures includes pro forma information derived from the unaudited pro forma statements of operations which are provided for informational purposes only and are not necessarily indicative of the operating results or financial position that would have occurred if the acquisitions of IMC and Care Holdings had occurred in the stated historical periods, nor are they indicative of the future results or financial position of the combined company. The unaudited pro forma statements of operations do not give effect to the potential impact, of any anticipated synergies, operating efficiencies or cost savings that may result from the acquisitions of IMC and Care Holdings, any integration costs or tax deductibility of transaction costs. Additionally, Adjusted EBITDA presented on a pro forma basis gives effect to the acquisitions of IMC and Care Holdings as if they had occurred in historical periods. Such non-GAAP financial measures do not necessarily reflect what the Company’s Adjusted EBITDA would have been had the acquisitions occurred on the dates indicated. CAREMAX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) March 31, 2022 December 31, 2021 ASSETS CURRENT ASSETS Cash $ 32,740 $ 47,917 Accounts receivable, net 53,581 41,998 Inventory 702 550 Prepaid expenses 20,045 17,040 Risk settlements due from providers 655 539 Total Current Assets 107,723 108,044 Property and equipment, net 16,895 15,993 Goodwill 464,264 464,566 Intangible assets, net 55,604 59,811 Deferred debt issuance costs 1,860 1,972 Other assets 2,738 2,706 Total Assets $ 649,085 $ 653,092 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 5,165 $ 3,110 Accrued expenses 12,365 8,690 Risk settlements due to providers 228 196 Current portion of long-term debt 6,272 6,275 Other current liabilities 4,107 3,687 Total Current Liabilities 28,137 21,959 Derivative warrant liabilities 11,911 8,375 Long-term debt, less current portion 109,660 110,960 Other liabilities 7,186 6,428 Total Liabilities 156,895 147,722 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock (1,000,000 authorized and zero outstanding as of March 31, 2022 and December 31, 2021) - - Class A common stock ($0.0001 par value; 250,000,000 shares authorized; 87,367,972 shares issued and outstanding at March 31, 2022 and December 31, 2021) 9 9 Additional paid-in-capital 508,945 505,327 Retained (deficit) earnings (16,763 ) 33 Total Stockholders' Equity 492,190 505,370 Total Liabilities and Stockholders' Equity $ 649,085 $ 653,092 CAREMAX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Revenue Medicare risk-based revenue $ 107,747 $ 27,816 Medicaid risk-based revenue 20,165 - Other revenue 9,008 102 Total revenue 136,920 27,918 Operating expenses External provider costs 92,856 18,159 Cost of care 27,349 5,353 Sales and marketing 3,301 291 Corporate, general and administrative 18,978 1,795 Depreciation and amortization 5,062 514 Acquisition related costs 266 - Total operating expenses 147,811 26,112 Operating (loss) income (10,890 ) 1,806 Interest expense (1,728 ) (504 ) Loss on remeasurement of warrant liabilities (3,536 ) - Other income (expense), net (462 ) - (Loss) income before income tax (16,616 ) 1,302 Income tax provision (181 ) - Net (loss) income $ (16,797 ) $ 1,302 Weighted average basic shares outstanding 87,367,972 10,796,069 Weighted average diluted shares outstanding 87,367,972 10,796,069 Net (loss) income per share Basic $ (0.19 ) $ 0.12 Diluted $ (0.19 ) $ 0.12 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/Income $ (16,797 ) $ 1,302 Adjustments to reconcile net (loss)/income to net cash Depreciation and amortization expense 5,062 514 Amortization of debt issuance costs 378 35 Stock compensation expense 1,087 - Loss on remeasurement of warrant liabilities 3,536 - Other non-cash, net 202 - Changes in operating assets and liabilities: Accounts receivable (10,992 ) 639 Inventory (152 ) (1 ) Prepaid expenses (475 ) 15 Risk settlements due from/due to providers (84 ) (281 ) Due to/from related parties - (392 ) Other assets (52 ) (205 ) Accounts payable 1,470 1,160 Accrued expenses 3,675 (134 ) Other liabilities 1,002 720 Net Cash (Used In)/Provided by Operating Activities (12,139 ) 3,372 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (1,467 ) (1,690 ) Net Cash Used in Investing Activities (1,467 ) (1,690 ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (1,570 ) (181 ) Net Cash Used In Financing Activities (1,570 ) (181 ) NET (DECREASE)/INCREASE IN CASH (15,176 ) 1,501 Cash - Beginning of Period 47,917 4,934 CASH - END OF PERIOD $ 32,740 $ 6,435 Non-GAAP Financial Summary* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Medicare risk revenue $ 63,373 $ 62,040 $ 63,188 $ 65,210 $ 65,394 $ 66,618 $ 76,428 $ 91,277 $ 107,747 Medicaid risk revenue 10,827 14,828 20,565 19,062 18,897 20,454 20,884 20,160 20,165 Other revenue 4,608 4,126 3,351 3,801 4,127 4,839 7,308 6,869 9,008 Total revenue 78,808 80,994 87,104 88,073 88,418 91,911 104,620 118,306 136,920 External provider costs 53,472 52,780 60,158 57,775 60,278 70,466 73,329 79,724 92,856 Cost of care 11,246 10,093 11,417 12,446 13,427 13,246 20,315 22,538 26,791 Platform contribution 14,090 18,121 15,529 17,852 14,712 8,199 10,976 16,044 17,274 Platform contribution margin (%) 17.9 % 22.4 % 17.8 % 20.3 % 16.6 % 8.9 % 10.5 % 13.6 % 12.6 % Sales and marketing $ 1,057 $ 1,245 $ 1,290 $ 1,431 $ 391 $ 1,688 $ 1,274 $ 2,615 $ 3,301 Corporate, general and administrative 7,858 5,667 6,069 6,519 7,197 6,347 8,668 9,662 9,230 Adjusted operating expenses 8,915 6,912 7,359 7,951 7,588 8,036 9,942 12,276 12,531 De novo losses 3 24 68 484 184 364 195 489 1,119 Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Non-GAAP Operating Metrics* Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Centers 21 21 22 24 24 34 40 45 48 Markets** 1 1 1 1 1 2 3 4 6 Patients (MCREM)*** 24,800 27,500 29,000 28,400 29,200 35,300 40,400 50,100 50,600 At-Risk 84.8 % 86.7 % 85.6 % 87.7 % 87.0 % 84.1 % 87.2 % 79.3 % 79.8 % Platform Contribution ($, Millions)**** $ 14.1 $ 18.1 $ 15.5 $ 17.9 $ 14.7 $ 8.2 $ 11.0 $ 16.0 $ 17.3 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. ** CareMax currently defines markets as metropolitan statistical areas (MSA); markets were previously defined as states. *** MCREM defined as Medicare Equivalent Members, which assumes the level of support received by a Medicare patient is equivalent to that received by three Medicaid or Commercial patients. **** Platform contribution defined as revenue less external provider costs and cost of care. Reconciliation to Adjusted EBITDA* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Net Income (Loss) $ 3,170 $ 3,466 $ (281 ) $ 1,218 $ 1,302 $ 10,057 $ (14,479 ) $ (3,553 ) $ (16,797 ) GAAP Pro Forma Adjustments (3,513 ) 160 (189 ) 1,912 (2,730 ) (6,186 ) - - - Pro Forma Net (Loss) Income $ (343 ) $ 3,626 $ (470 ) $ 3,130 $ (1,429 ) $ 3,871 $ (14,479 ) $ (3,553 ) $ (16,797 ) Interest expense 1,658 1,689 1,656 1,628 1,400 1,667 1,291 1,905 1,728 Depreciation and amortization 3,514 3,244 3,368 3,418 2,979 3,339 5,176 6,089 5,062 Income tax provision - - - - - - - 159 181 Loss/(Gain) on remeasurement of warrant liabilities - - - - - (1,795 ) (10,227 ) (8,735 ) 3,536 Loss/(Gain) on remeasurement of earnout liabilities - - - - - (17,420 ) 11,625 - - Loss on disposal of fixed assets, net - - - - - - - 50 - Loss/(Gain) on extinguishment of debt - - - 451 - 806 (279 ) 7 - Other expense/(income) (2 ) (12 ) 100 (997 ) 212 (2,367 ) 840 493 462 EBITDA 4,827 8,547 4,653 7,630 3,162 (11,900 ) (6,053 ) (3,585 ) (5,829 ) Other adjustments Non-recurring expenses (309 ) 1,985 2,763 1,390 2,795 8,257 4,249 4,653 6,055 Acquisition costs 656 678 789 893 1,168 3,806 1,871 2,325 3,429 Stock based compensation - - - - - - 966 375 1,087 De novo losses 3 24 68 484 184 364 195 489 1,119 Discontinued operations - (0 ) (35 ) (12 ) (1 ) (0 ) - - - Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Reconciliation to Platform Contribution (in thousands) GAAP Q1 2022 Adjustments Non-GAAP Q1 2022 Revenue $ 136,920 $ - $ 136,920 less: External provider costs 92,856 - 92,856 less: Cost of care 27,349 (558 ) 26,791 Platform Contribution $ 17,274 Estimated impact of COVID 953 953 Platform Contribution, excluding impact of COVID $ 18,227 View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005673/en/Contacts Media Christine Bucan (305) 542-8855 Christine@thinkbsg.com Investor Relations Samantha Swerdlin (847) 924-8980 samantha.swerdlin@caremax.com
First Quarter 2022 Medicare Advantage Membership of 34,000, up 106% year-over-year1 First Quarter 2022 GAAP Total Revenue of $136.9 million, up 390% Compared to First Quarter 2021 Total Revenue of $27.9 Million, or up 55% on a Pro Forma Basis1 Reaffirms Full Year 2022 Guidance Entered into a $300.0 million Credit Agreement
CareMax, Inc. (NASDAQ: CMAX; CMAXW), a leading technology-enabled provider of value-based care to seniors, announced today financial results for the first quarter ended March 31, 2022. “We had a strong start to the year and continue to execute on our strategy of maintaining profitable growth in our core markets while opening de novo centers in new markets” said Carlos de Solo, Chief Executive Officer. “Our entry into the Memphis, Tennessee and New York City markets is the first step in our national expansion plans as we progress on our vision to improve healthcare and quality of life for underserved communities across the U.S.” First Quarter 2022 Results1,2 Total revenue was $136.9 million, up 55% year-over-year. Medical Expense Ratio was 72.6%, compared to 71.5% for the first quarter of 2021.3 Net loss was $16.8 million, or $(0.19) per diluted share. Adjusted EBITDA was $5.9 million; excluding the estimated impacts from COVID, Adjusted EBITDA would have been $6.8 million. Platform Contribution was $17.3 million; excluding the estimated impacts from COVID, Platform Contribution would have been $18.2 million. Financial Outlook for Full Year 20221,2 CareMax, Inc. is reaffirming the following full year 2022 financial guidance: Year-end Medicare Advantage membership of 38,000 to 40,000, up 13% to 19% year-over-year. Total revenue of $540 million to $560 million, up 34% to 39% year-over-year, compared to $403 million for the prior year. Adjusted EBITDA in the range of $30 million to $40 million, up 125% to 200% year-over-year, compared to $13.3 million for the prior year. For 2022, Adjusted EBITDA also excludes losses from de novo centers. The Company continues to expect to open 15 de novo centers in 2022, inclusive of the three opened in the first quarter of 2022. 1Year-over-year comparisons to 2021 are pro forma for the business combinations of IMC Medical Group Holdings and Care Holdings as if they had occurred on January 1, 2021. A reconciliation of the pro forma financial information to GAAP financial statements is included in this earnings release. 2Adjusted EBITDA and Platform Contribution are non-GAAP financial metrics. A reconciliation of non-GAAP metrics to GAAP financial statements is included in this earnings release. 3 Medical Expense Ratio equals external provider costs divided by Medicare and Medicaid risk-based revenues. New $300.0 Million Credit Agreement On May 10, 2022, CareMax entered into a new $300.0 million Credit Agreement consisting of a $190.0 million initial term loan and a $110.0 million delayed draw term loan. The proceeds of the initial term loan will be used in part to repay in full CareMax’s existing $120.3 million term loan maturing June 8, 2026, with additional proceeds expected to be used to support CareMax’s de novo growth strategy and fund working capital needs. Additional information regarding the new Credit Agreement will be included in the Company’s Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission. Conference Call Details Management will host a conference call at 8:30 am ET today to discuss the results and business activities. A live audio webcast as well as related presentation materials will be available at ir.caremax.com. The conference call can also be accessed by dialing (888) 440-6519 for U.S. participants, or (646) 960-0384 for international participants, and referring conference ID 4345921. Following the live call, a replay will be available on the Company's website About CareMax CareMax is a technology-enabled care platform providing value-based care and chronic disease management to seniors. CareMax operates centers that offer a comprehensive suite of healthcare and social services, and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Learn more at www.caremax.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and strategy, the effects of the restatement of the Company’s past financial statements and the filing of the Company’s periodic reports. 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 reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. 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 the Company's actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the impact of COVID-19 or any variant thereof on the Company's business and results of operation; the availability of sites for de novo centers and the costs of opening such de novo centers; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to the Company's services; the Company's ability to continue its growth, including in new markets; changes in laws and regulations applicable to the Company's business, in particular with respect to Medicare Advantage and Medicaid; the Company's ability to maintain its relationships with health plans and other key payers; any delay, modification or cancellation of government contracts; the Company's future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs and the Company’s ability to comply with the covenants under its credit agreement; the Company or any other party’s ability to fulfill contractual obligations; the impact of board leadership changes; the Company's ability to recruit and retain qualified team members and independent physicians; and risks related to future acquisitions. For a detailed discussion of the risk factors that could affect the Company's actual results, please refer to the risk factors identified in the Company's reports filed with the SEC. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update or revise this information unless required by law, and forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Use of Non-GAAP Financial Information Certain financial information and data contained in this press release is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by the Company with the SEC. Some of the financial information and data contained in this press release, such as Adjusted EBITDA and margin thereof and Platform Contribution and margin thereof and have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non-GAAP measures of financial results are not GAAP measures of our financial results or liquidity and should not be considered as an alternative to net income (loss) as a measure of financial results, cash flows from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they 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. For this reason, these non-GAAP measures may not be comparable to other Companies’ similarly labeled non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review the Company’s audited financial statements, which have been filed by the Company with the SEC. A reconciliation for Adjusted EBITDA and Platform Contribution to the most directly comparable GAAP financial measures is included below. A reconciliation of projected 2022 Adjusted EBITDA to the most directly comparable GAAP financial measure is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate this. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results. Use of Pro Forma Financial Information and Pro Forma Non-GAAP Financial Information Certain of the information presented in the Non-GAAP Financial Summary and in the reconciliations to non-GAAP financial measures includes pro forma information derived from the unaudited pro forma statements of operations which are provided for informational purposes only and are not necessarily indicative of the operating results or financial position that would have occurred if the acquisitions of IMC and Care Holdings had occurred in the stated historical periods, nor are they indicative of the future results or financial position of the combined company. The unaudited pro forma statements of operations do not give effect to the potential impact, of any anticipated synergies, operating efficiencies or cost savings that may result from the acquisitions of IMC and Care Holdings, any integration costs or tax deductibility of transaction costs. Additionally, Adjusted EBITDA presented on a pro forma basis gives effect to the acquisitions of IMC and Care Holdings as if they had occurred in historical periods. Such non-GAAP financial measures do not necessarily reflect what the Company’s Adjusted EBITDA would have been had the acquisitions occurred on the dates indicated. CAREMAX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) March 31, 2022 December 31, 2021 ASSETS CURRENT ASSETS Cash $ 32,740 $ 47,917 Accounts receivable, net 53,581 41,998 Inventory 702 550 Prepaid expenses 20,045 17,040 Risk settlements due from providers 655 539 Total Current Assets 107,723 108,044 Property and equipment, net 16,895 15,993 Goodwill 464,264 464,566 Intangible assets, net 55,604 59,811 Deferred debt issuance costs 1,860 1,972 Other assets 2,738 2,706 Total Assets $ 649,085 $ 653,092 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 5,165 $ 3,110 Accrued expenses 12,365 8,690 Risk settlements due to providers 228 196 Current portion of long-term debt 6,272 6,275 Other current liabilities 4,107 3,687 Total Current Liabilities 28,137 21,959 Derivative warrant liabilities 11,911 8,375 Long-term debt, less current portion 109,660 110,960 Other liabilities 7,186 6,428 Total Liabilities 156,895 147,722 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock (1,000,000 authorized and zero outstanding as of March 31, 2022 and December 31, 2021) - - Class A common stock ($0.0001 par value; 250,000,000 shares authorized; 87,367,972 shares issued and outstanding at March 31, 2022 and December 31, 2021) 9 9 Additional paid-in-capital 508,945 505,327 Retained (deficit) earnings (16,763 ) 33 Total Stockholders' Equity 492,190 505,370 Total Liabilities and Stockholders' Equity $ 649,085 $ 653,092 CAREMAX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Revenue Medicare risk-based revenue $ 107,747 $ 27,816 Medicaid risk-based revenue 20,165 - Other revenue 9,008 102 Total revenue 136,920 27,918 Operating expenses External provider costs 92,856 18,159 Cost of care 27,349 5,353 Sales and marketing 3,301 291 Corporate, general and administrative 18,978 1,795 Depreciation and amortization 5,062 514 Acquisition related costs 266 - Total operating expenses 147,811 26,112 Operating (loss) income (10,890 ) 1,806 Interest expense (1,728 ) (504 ) Loss on remeasurement of warrant liabilities (3,536 ) - Other income (expense), net (462 ) - (Loss) income before income tax (16,616 ) 1,302 Income tax provision (181 ) - Net (loss) income $ (16,797 ) $ 1,302 Weighted average basic shares outstanding 87,367,972 10,796,069 Weighted average diluted shares outstanding 87,367,972 10,796,069 Net (loss) income per share Basic $ (0.19 ) $ 0.12 Diluted $ (0.19 ) $ 0.12 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, Three Months Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/Income $ (16,797 ) $ 1,302 Adjustments to reconcile net (loss)/income to net cash Depreciation and amortization expense 5,062 514 Amortization of debt issuance costs 378 35 Stock compensation expense 1,087 - Loss on remeasurement of warrant liabilities 3,536 - Other non-cash, net 202 - Changes in operating assets and liabilities: Accounts receivable (10,992 ) 639 Inventory (152 ) (1 ) Prepaid expenses (475 ) 15 Risk settlements due from/due to providers (84 ) (281 ) Due to/from related parties - (392 ) Other assets (52 ) (205 ) Accounts payable 1,470 1,160 Accrued expenses 3,675 (134 ) Other liabilities 1,002 720 Net Cash (Used In)/Provided by Operating Activities (12,139 ) 3,372 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (1,467 ) (1,690 ) Net Cash Used in Investing Activities (1,467 ) (1,690 ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (1,570 ) (181 ) Net Cash Used In Financing Activities (1,570 ) (181 ) NET (DECREASE)/INCREASE IN CASH (15,176 ) 1,501 Cash - Beginning of Period 47,917 4,934 CASH - END OF PERIOD $ 32,740 $ 6,435 Non-GAAP Financial Summary* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Medicare risk revenue $ 63,373 $ 62,040 $ 63,188 $ 65,210 $ 65,394 $ 66,618 $ 76,428 $ 91,277 $ 107,747 Medicaid risk revenue 10,827 14,828 20,565 19,062 18,897 20,454 20,884 20,160 20,165 Other revenue 4,608 4,126 3,351 3,801 4,127 4,839 7,308 6,869 9,008 Total revenue 78,808 80,994 87,104 88,073 88,418 91,911 104,620 118,306 136,920 External provider costs 53,472 52,780 60,158 57,775 60,278 70,466 73,329 79,724 92,856 Cost of care 11,246 10,093 11,417 12,446 13,427 13,246 20,315 22,538 26,791 Platform contribution 14,090 18,121 15,529 17,852 14,712 8,199 10,976 16,044 17,274 Platform contribution margin (%) 17.9 % 22.4 % 17.8 % 20.3 % 16.6 % 8.9 % 10.5 % 13.6 % 12.6 % Sales and marketing $ 1,057 $ 1,245 $ 1,290 $ 1,431 $ 391 $ 1,688 $ 1,274 $ 2,615 $ 3,301 Corporate, general and administrative 7,858 5,667 6,069 6,519 7,197 6,347 8,668 9,662 9,230 Adjusted operating expenses 8,915 6,912 7,359 7,951 7,588 8,036 9,942 12,276 12,531 De novo losses 3 24 68 484 184 364 195 489 1,119 Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Non-GAAP Operating Metrics* Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Centers 21 21 22 24 24 34 40 45 48 Markets** 1 1 1 1 1 2 3 4 6 Patients (MCREM)*** 24,800 27,500 29,000 28,400 29,200 35,300 40,400 50,100 50,600 At-Risk 84.8 % 86.7 % 85.6 % 87.7 % 87.0 % 84.1 % 87.2 % 79.3 % 79.8 % Platform Contribution ($, Millions)**** $ 14.1 $ 18.1 $ 15.5 $ 17.9 $ 14.7 $ 8.2 $ 11.0 $ 16.0 $ 17.3 * Figures give effect to the Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. ** CareMax currently defines markets as metropolitan statistical areas (MSA); markets were previously defined as states. *** MCREM defined as Medicare Equivalent Members, which assumes the level of support received by a Medicare patient is equivalent to that received by three Medicaid or Commercial patients. **** Platform contribution defined as revenue less external provider costs and cost of care. Reconciliation to Adjusted EBITDA* $ in thousands Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Net Income (Loss) $ 3,170 $ 3,466 $ (281 ) $ 1,218 $ 1,302 $ 10,057 $ (14,479 ) $ (3,553 ) $ (16,797 ) GAAP Pro Forma Adjustments (3,513 ) 160 (189 ) 1,912 (2,730 ) (6,186 ) - - - Pro Forma Net (Loss) Income $ (343 ) $ 3,626 $ (470 ) $ 3,130 $ (1,429 ) $ 3,871 $ (14,479 ) $ (3,553 ) $ (16,797 ) Interest expense 1,658 1,689 1,656 1,628 1,400 1,667 1,291 1,905 1,728 Depreciation and amortization 3,514 3,244 3,368 3,418 2,979 3,339 5,176 6,089 5,062 Income tax provision - - - - - - - 159 181 Loss/(Gain) on remeasurement of warrant liabilities - - - - - (1,795 ) (10,227 ) (8,735 ) 3,536 Loss/(Gain) on remeasurement of earnout liabilities - - - - - (17,420 ) 11,625 - - Loss on disposal of fixed assets, net - - - - - - - 50 - Loss/(Gain) on extinguishment of debt - - - 451 - 806 (279 ) 7 - Other expense/(income) (2 ) (12 ) 100 (997 ) 212 (2,367 ) 840 493 462 EBITDA 4,827 8,547 4,653 7,630 3,162 (11,900 ) (6,053 ) (3,585 ) (5,829 ) Other adjustments Non-recurring expenses (309 ) 1,985 2,763 1,390 2,795 8,257 4,249 4,653 6,055 Acquisition costs 656 678 789 893 1,168 3,806 1,871 2,325 3,429 Stock based compensation - - - - - - 966 375 1,087 De novo losses 3 24 68 484 184 364 195 489 1,119 Discontinued operations - (0 ) (35 ) (12 ) (1 ) (0 ) - - - Adjusted EBITDA $ 5,178 $ 11,233 $ 8,237 $ 10,385 $ 7,308 $ 527 $ 1,229 $ 4,257 $ 5,862 * Figures give effect to Business Combinations of IMC and Care Holdings as if they had occurred in historical periods. Figures may not sum due to rounding. Reconciliation to Platform Contribution (in thousands) GAAP Q1 2022 Adjustments Non-GAAP Q1 2022 Revenue $ 136,920 $ - $ 136,920 less: External provider costs 92,856 - 92,856 less: Cost of care 27,349 (558 ) 26,791 Platform Contribution $ 17,274 Estimated impact of COVID 953 953 Platform Contribution, excluding impact of COVID $ 18,227 View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005673/en/
Media Christine Bucan (305) 542-8855 Christine@thinkbsg.com Investor Relations Samantha Swerdlin (847) 924-8980 samantha.swerdlin@caremax.com