Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries MedAvail Reports Fourth Quarter and Full Year 2021 Financial Results By: MedAvail Holdings Inc. via Business Wire March 24, 2022 at 16:05 PM EDT MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months and full year ended December 31, 2021. “I am excited to have joined MedAvail at a pivotal time when I believe that there is a tremendous need and a rising demand in pharmacy services for our technology and pharmacy solutions. Since joining MedAvail, my confidence in our business has only strengthened further,” said Mark Doerr, Chief Executive Officer of MedAvail. “As we look ahead to 2022, I believe that we are strongly positioned with expansion in dispensing deployments and partnerships well underway and a clear roadmap seeking to deliver profitable and sustainable growth over the long-term.” Fourth Quarter 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the three months ended December 31, 2020. Total revenue was $7.3 million Total revenue by segment Retail Pharmacy Services revenue increased 170% to $6.8 million Pharmacy Technology revenue decreased 24% to $0.4 million Net loss was $12.6 million compared to a net loss of $12.1 million Adjusted EBITDA loss of $10.9 million compared to $8.9 million Cash, and cash equivalents of $19.7 million as of December 31, 2021 Full Year 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the twelve months ended December 31, 2020. Total revenue was $22.1 million Total revenue by segment Retail Pharmacy Services revenue increased 161% to $20.2 million Pharmacy Technology revenue decreased 69% to $1.9 million. Total revenue for the third quarter of 2020 included a non-recurring benefit of $4.7 million recognized in conjunction with a commercial agreement from 2018; excluding this benefit, Pharmacy Technology revenue increased 27%. 81 MedCenter total net cumulative deployments compared to 46 MedCenter total net cumulative deployments, representing 76% growth 68 MedCenter total net dispensing deployments compared to 38 total MedCenter net dispensing deployments, representing 79% growth Net loss was $43.8 million compared to a net loss of $26.8 million Adjusted EBITDA loss of $39.6 million compared to $23.8 million Financial Outlook MedAvail expects total revenue for the first quarter of 2022 to be in excess of $8.8 million, which represents more than double its total revenue in the same period in 2021. The company expects adjusted gross margin improvement in the first quarter of 2022 compared to the fourth quarter of 2021. Conference Call MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, March 24, 2022, to discuss its fourth quarter and full year 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com. The webcast will be archived and available for replay for at least 90 days after the event. Definition of Key Metrics Dispensing Deployments We define dispensing deployments as deployments that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks. About MedAvail MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com. Non-GAAP Financial Measures MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures. Forward Looking Statements Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," 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 MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth and profitability; expansion plans; margin improvement; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to risks discussed under the heading "Risk Factors" in both MedAvail’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and its Quarterly Report on Form 10-Q, filed with the SEC on November 9, 2021, and other filings MedAvail makes with the SEC in the future. Additional information is also set forth in MedAvail’s Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements. SOURCE MedAvail Holdings, Inc. MEDAVAIL HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except per-share amounts) (Unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 (1) 2021 2020 (1) Revenue: Pharmacy and hardware revenue $ 6,954 $ 3,009 $ 21,119 $ 10,596 Service revenue 326 91 1,010 3,372 Total revenue 7,280 3,100 22,129 13,968 Cost of products sold and services: Pharmacy and hardware cost of products sold 7,562 3,250 21,306 8,593 Service costs 80 96 506 212 Total cost of products sold and services 7,642 3,346 21,812 8,805 Operating expense: Pharmacy operations 4,068 2,195 13,496 6,146 General and administrative 5,544 5,795 22,277 15,863 Selling and marketing 2,148 1,206 7,204 3,283 Research and development 248 150 849 682 Merger expenses — 2,084 — 4,691 Total operating expense 12,008 11,430 43,826 30,665 Operating loss (12,370 ) (11,676 ) (43,509 ) (25,502 ) Other income (loss), net — (118 ) 206 (110 ) Interest income 5 28 79 43 Interest expense (261 ) (330 ) (589 ) (1,241 ) Loss before income taxes (12,626 ) (12,096 ) (43,813 ) (26,810 ) Income tax expense — — (2 ) — Net loss $ (12,626 ) $ (12,096 ) $ (43,815 ) $ (26,810 ) Other comprehensive income (loss): Foreign currency translation adjustment $ — $ 24 $ — $ 22 Total comprehensive loss $ (12,626 ) $ (12,072 ) $ (43,815 ) $ (26,788 ) Net loss per share - basic and diluted $ (0.38 ) $ (0.71 ) $ (1.34 ) $ (4.69 ) Weighted average shares outstanding - basic and diluted 32,852 17,003 32,656 5,722 (1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow. MEDAVAIL HOLDINGS, INC. Operating Expense Reclassifications (In thousands) (Unaudited) Three Months Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 2,195 $ 2,033 $ 162 General and administrative 5,795 6,019 (224 ) Selling and marketing 1,206 1,147 59 Research and development 150 149 1 $ 9,346 $ 9,348 $ (2 ) Year Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 6,146 $ 5,687 $ 459 General and administrative 15,863 16,562 (699 ) Selling and marketing 3,283 3,043 240 $ 25,292 $ 25,292 $ — MEDAVAIL HOLDINGS, INC. Consolidated Condensed Balance Sheets (In thousands, except share and per-share amounts) (Unaudited) December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 19,689 $ 57,936 Restricted cash 400 60 Accounts receivable, net 1,189 1,520 Inventories 3,916 2,817 Prepaid expenses and other current assets 2,191 1,534 Total current assets 27,385 63,867 Property, plant and equipment, net 5,692 3,795 Right-of-use assets 2,538 1,239 Other assets 228 203 Intangible assets, net 2,300 227 Total assets $ 38,143 $ 69,331 Liabilities and Shareholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 6,740 $ 4,512 Short-term debt — 2,161 Deferred revenue 83 275 Current portion of lease obligations 682 665 Total current liabilities 7,505 7,613 Long-term debt 9,538 — Long-term portion of lease obligations 2,027 651 Total liabilities 19,070 8,264 Commitments and contingencies Stockholders' equity (deficit): Common shares ($0.001 par value, 100,000,000 shares authorized, 32,902,048 and 31,816,020 shares issued and outstanding at December 31, 2021 and 2020, respectively) 33 32 Warrants 1,373 2,614 Additional paid-in-capital 216,685 213,624 Accumulated other comprehensive loss (6,928 ) (6,928 ) Accumulated deficit (192,090 ) (148,275 ) Total shareholders’ equity 19,073 61,067 Total liabilities and shareholders’ equity $ 38,143 $ 69,331 MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 6,846 $ — $ 6,846 Hardware — — — Subscription — 108 108 Total pharmacy and hardware revenue 6,846 108 6,954 Service revenue: Software integration — — — Software — 134 134 Maintenance and support — 47 47 Installation — — — Professional services and other — 145 145 Total service revenue — 326 326 Total revenue 6,846 434 7,280 Cost of products sold and services (1) 6,901 741 7,642 Gross profit $ (55 ) $ (307 ) (362 ) (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 2,532 $ — $ 2,532 Hardware — 353 353 Subscription — 124 124 Total pharmacy and hardware revenue 2,532 477 3,009 Service revenue: Software integration — — — Software — 20 20 Maintenance and support — 19 19 Installation — 27 27 Professional services and other — 25 25 Total service revenue — 91 91 Total revenue 2,532 568 3,100 Cost of products sold and services (1) 2,685 661 3,346 Gross profit $ (153 ) $ (93 ) $ (246 ) (1) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $173 thousand and $179 thousand, respectively. MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Year Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 20,203 $ — $ 20,203 Hardware — 470 470 Subscription — 446 446 Total pharmacy and hardware revenue 20,203 916 21,119 Service revenue: Software integration — — — Software — 259 259 Maintenance and support — 161 161 Installation — 39 39 Professional services and other — 551 551 Total service revenue — 1,010 1,010 Total revenue 20,203 1,926 22,129 Cost of products sold and services (1) 20,031 1,781 21,812 Gross profit $ 172 $ 145 $ 317 (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology (1) Total Year Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 7,728 $ — $ 7,728 Hardware — 2,401 2,401 Subscription — 467 467 Total pharmacy and hardware revenue 7,728 2,868 10,596 Service revenue: Software integration — 3,168 3,168 Software — 44 44 Maintenance and support — 58 58 Installation — 55 55 Professional services and other — 47 47 Total service revenue — 3,372 3,372 Total revenue 7,728 6,240 13,968 Cost of products sold and services (2) 7,744 1,061 8,805 Gross profit $ (16 ) $ 5,179 $ 5,163 (1) Includes $1.5 million of hardware sales and $3.2 million of software integration sales associated with a non-recurring commercial agreement. (2) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $250 thousand and $179 thousand, respectively. Non-GAAP Financial Measures To supplement our consolidated condensed financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for non-recurring revenue from a commercial agreement, inventory adjustment, merger-related expenses, and stock-based compensation expense. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. MEDAVAIL HOLDINGS, INC. Reconciliation of GAAP to Non-GAAP Measures (In thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 2021 2020 Net loss (12,626 ) (12,096 ) (43,815 ) (26,810 ) Adjustments to calculate EBITDA: Interest income (5 ) (28 ) (79 ) (43 ) Interest expense 261 330 589 1,241 Income tax expense — — 2 — Depreciation and amortization (1) 569 298 1,827 1,089 EBITDA (11,801 ) (11,496 ) (41,476 ) (24,523 ) Adjustments as follows: Inventory adjustment (2) 626 352 626 429 Non-recurring commercial agreement (3) — — — (4,729 ) Merger expenses — 2,084 — 4,691 Share-based compensation expense 257 155 1,205 380 Adjusted EBITDA (10,918 ) (8,905 ) (39,645 ) (23,752 ) (1) Excludes $203 thousand and $750 thousand of operating lease amortization for the three months and year ended December 31, 2021, respectively. (2) Includes inventory cost adjustments. (3) The year ended December 31, 2020 includes $1.5 million of hardware sales and $3.2 million of software integration revenue associated with a non-recurring commercial agreement. View source version on businesswire.com: https://www.businesswire.com/news/home/20220324005933/en/Contacts Investor Relations Caroline Paul Gilmartin Group ir@medavail.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.
MedAvail Reports Fourth Quarter and Full Year 2021 Financial Results By: MedAvail Holdings Inc. via Business Wire March 24, 2022 at 16:05 PM EDT MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months and full year ended December 31, 2021. “I am excited to have joined MedAvail at a pivotal time when I believe that there is a tremendous need and a rising demand in pharmacy services for our technology and pharmacy solutions. Since joining MedAvail, my confidence in our business has only strengthened further,” said Mark Doerr, Chief Executive Officer of MedAvail. “As we look ahead to 2022, I believe that we are strongly positioned with expansion in dispensing deployments and partnerships well underway and a clear roadmap seeking to deliver profitable and sustainable growth over the long-term.” Fourth Quarter 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the three months ended December 31, 2020. Total revenue was $7.3 million Total revenue by segment Retail Pharmacy Services revenue increased 170% to $6.8 million Pharmacy Technology revenue decreased 24% to $0.4 million Net loss was $12.6 million compared to a net loss of $12.1 million Adjusted EBITDA loss of $10.9 million compared to $8.9 million Cash, and cash equivalents of $19.7 million as of December 31, 2021 Full Year 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the twelve months ended December 31, 2020. Total revenue was $22.1 million Total revenue by segment Retail Pharmacy Services revenue increased 161% to $20.2 million Pharmacy Technology revenue decreased 69% to $1.9 million. Total revenue for the third quarter of 2020 included a non-recurring benefit of $4.7 million recognized in conjunction with a commercial agreement from 2018; excluding this benefit, Pharmacy Technology revenue increased 27%. 81 MedCenter total net cumulative deployments compared to 46 MedCenter total net cumulative deployments, representing 76% growth 68 MedCenter total net dispensing deployments compared to 38 total MedCenter net dispensing deployments, representing 79% growth Net loss was $43.8 million compared to a net loss of $26.8 million Adjusted EBITDA loss of $39.6 million compared to $23.8 million Financial Outlook MedAvail expects total revenue for the first quarter of 2022 to be in excess of $8.8 million, which represents more than double its total revenue in the same period in 2021. The company expects adjusted gross margin improvement in the first quarter of 2022 compared to the fourth quarter of 2021. Conference Call MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, March 24, 2022, to discuss its fourth quarter and full year 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com. The webcast will be archived and available for replay for at least 90 days after the event. Definition of Key Metrics Dispensing Deployments We define dispensing deployments as deployments that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks. About MedAvail MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com. Non-GAAP Financial Measures MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures. Forward Looking Statements Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," 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 MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth and profitability; expansion plans; margin improvement; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to risks discussed under the heading "Risk Factors" in both MedAvail’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and its Quarterly Report on Form 10-Q, filed with the SEC on November 9, 2021, and other filings MedAvail makes with the SEC in the future. Additional information is also set forth in MedAvail’s Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements. SOURCE MedAvail Holdings, Inc. MEDAVAIL HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except per-share amounts) (Unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 (1) 2021 2020 (1) Revenue: Pharmacy and hardware revenue $ 6,954 $ 3,009 $ 21,119 $ 10,596 Service revenue 326 91 1,010 3,372 Total revenue 7,280 3,100 22,129 13,968 Cost of products sold and services: Pharmacy and hardware cost of products sold 7,562 3,250 21,306 8,593 Service costs 80 96 506 212 Total cost of products sold and services 7,642 3,346 21,812 8,805 Operating expense: Pharmacy operations 4,068 2,195 13,496 6,146 General and administrative 5,544 5,795 22,277 15,863 Selling and marketing 2,148 1,206 7,204 3,283 Research and development 248 150 849 682 Merger expenses — 2,084 — 4,691 Total operating expense 12,008 11,430 43,826 30,665 Operating loss (12,370 ) (11,676 ) (43,509 ) (25,502 ) Other income (loss), net — (118 ) 206 (110 ) Interest income 5 28 79 43 Interest expense (261 ) (330 ) (589 ) (1,241 ) Loss before income taxes (12,626 ) (12,096 ) (43,813 ) (26,810 ) Income tax expense — — (2 ) — Net loss $ (12,626 ) $ (12,096 ) $ (43,815 ) $ (26,810 ) Other comprehensive income (loss): Foreign currency translation adjustment $ — $ 24 $ — $ 22 Total comprehensive loss $ (12,626 ) $ (12,072 ) $ (43,815 ) $ (26,788 ) Net loss per share - basic and diluted $ (0.38 ) $ (0.71 ) $ (1.34 ) $ (4.69 ) Weighted average shares outstanding - basic and diluted 32,852 17,003 32,656 5,722 (1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow. MEDAVAIL HOLDINGS, INC. Operating Expense Reclassifications (In thousands) (Unaudited) Three Months Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 2,195 $ 2,033 $ 162 General and administrative 5,795 6,019 (224 ) Selling and marketing 1,206 1,147 59 Research and development 150 149 1 $ 9,346 $ 9,348 $ (2 ) Year Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 6,146 $ 5,687 $ 459 General and administrative 15,863 16,562 (699 ) Selling and marketing 3,283 3,043 240 $ 25,292 $ 25,292 $ — MEDAVAIL HOLDINGS, INC. Consolidated Condensed Balance Sheets (In thousands, except share and per-share amounts) (Unaudited) December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 19,689 $ 57,936 Restricted cash 400 60 Accounts receivable, net 1,189 1,520 Inventories 3,916 2,817 Prepaid expenses and other current assets 2,191 1,534 Total current assets 27,385 63,867 Property, plant and equipment, net 5,692 3,795 Right-of-use assets 2,538 1,239 Other assets 228 203 Intangible assets, net 2,300 227 Total assets $ 38,143 $ 69,331 Liabilities and Shareholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 6,740 $ 4,512 Short-term debt — 2,161 Deferred revenue 83 275 Current portion of lease obligations 682 665 Total current liabilities 7,505 7,613 Long-term debt 9,538 — Long-term portion of lease obligations 2,027 651 Total liabilities 19,070 8,264 Commitments and contingencies Stockholders' equity (deficit): Common shares ($0.001 par value, 100,000,000 shares authorized, 32,902,048 and 31,816,020 shares issued and outstanding at December 31, 2021 and 2020, respectively) 33 32 Warrants 1,373 2,614 Additional paid-in-capital 216,685 213,624 Accumulated other comprehensive loss (6,928 ) (6,928 ) Accumulated deficit (192,090 ) (148,275 ) Total shareholders’ equity 19,073 61,067 Total liabilities and shareholders’ equity $ 38,143 $ 69,331 MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 6,846 $ — $ 6,846 Hardware — — — Subscription — 108 108 Total pharmacy and hardware revenue 6,846 108 6,954 Service revenue: Software integration — — — Software — 134 134 Maintenance and support — 47 47 Installation — — — Professional services and other — 145 145 Total service revenue — 326 326 Total revenue 6,846 434 7,280 Cost of products sold and services (1) 6,901 741 7,642 Gross profit $ (55 ) $ (307 ) (362 ) (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 2,532 $ — $ 2,532 Hardware — 353 353 Subscription — 124 124 Total pharmacy and hardware revenue 2,532 477 3,009 Service revenue: Software integration — — — Software — 20 20 Maintenance and support — 19 19 Installation — 27 27 Professional services and other — 25 25 Total service revenue — 91 91 Total revenue 2,532 568 3,100 Cost of products sold and services (1) 2,685 661 3,346 Gross profit $ (153 ) $ (93 ) $ (246 ) (1) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $173 thousand and $179 thousand, respectively. MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Year Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 20,203 $ — $ 20,203 Hardware — 470 470 Subscription — 446 446 Total pharmacy and hardware revenue 20,203 916 21,119 Service revenue: Software integration — — — Software — 259 259 Maintenance and support — 161 161 Installation — 39 39 Professional services and other — 551 551 Total service revenue — 1,010 1,010 Total revenue 20,203 1,926 22,129 Cost of products sold and services (1) 20,031 1,781 21,812 Gross profit $ 172 $ 145 $ 317 (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology (1) Total Year Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 7,728 $ — $ 7,728 Hardware — 2,401 2,401 Subscription — 467 467 Total pharmacy and hardware revenue 7,728 2,868 10,596 Service revenue: Software integration — 3,168 3,168 Software — 44 44 Maintenance and support — 58 58 Installation — 55 55 Professional services and other — 47 47 Total service revenue — 3,372 3,372 Total revenue 7,728 6,240 13,968 Cost of products sold and services (2) 7,744 1,061 8,805 Gross profit $ (16 ) $ 5,179 $ 5,163 (1) Includes $1.5 million of hardware sales and $3.2 million of software integration sales associated with a non-recurring commercial agreement. (2) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $250 thousand and $179 thousand, respectively. Non-GAAP Financial Measures To supplement our consolidated condensed financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for non-recurring revenue from a commercial agreement, inventory adjustment, merger-related expenses, and stock-based compensation expense. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. MEDAVAIL HOLDINGS, INC. Reconciliation of GAAP to Non-GAAP Measures (In thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 2021 2020 Net loss (12,626 ) (12,096 ) (43,815 ) (26,810 ) Adjustments to calculate EBITDA: Interest income (5 ) (28 ) (79 ) (43 ) Interest expense 261 330 589 1,241 Income tax expense — — 2 — Depreciation and amortization (1) 569 298 1,827 1,089 EBITDA (11,801 ) (11,496 ) (41,476 ) (24,523 ) Adjustments as follows: Inventory adjustment (2) 626 352 626 429 Non-recurring commercial agreement (3) — — — (4,729 ) Merger expenses — 2,084 — 4,691 Share-based compensation expense 257 155 1,205 380 Adjusted EBITDA (10,918 ) (8,905 ) (39,645 ) (23,752 ) (1) Excludes $203 thousand and $750 thousand of operating lease amortization for the three months and year ended December 31, 2021, respectively. (2) Includes inventory cost adjustments. (3) The year ended December 31, 2020 includes $1.5 million of hardware sales and $3.2 million of software integration revenue associated with a non-recurring commercial agreement. View source version on businesswire.com: https://www.businesswire.com/news/home/20220324005933/en/Contacts Investor Relations Caroline Paul Gilmartin Group ir@medavail.com
MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months and full year ended December 31, 2021. “I am excited to have joined MedAvail at a pivotal time when I believe that there is a tremendous need and a rising demand in pharmacy services for our technology and pharmacy solutions. Since joining MedAvail, my confidence in our business has only strengthened further,” said Mark Doerr, Chief Executive Officer of MedAvail. “As we look ahead to 2022, I believe that we are strongly positioned with expansion in dispensing deployments and partnerships well underway and a clear roadmap seeking to deliver profitable and sustainable growth over the long-term.” Fourth Quarter 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the three months ended December 31, 2020. Total revenue was $7.3 million Total revenue by segment Retail Pharmacy Services revenue increased 170% to $6.8 million Pharmacy Technology revenue decreased 24% to $0.4 million Net loss was $12.6 million compared to a net loss of $12.1 million Adjusted EBITDA loss of $10.9 million compared to $8.9 million Cash, and cash equivalents of $19.7 million as of December 31, 2021 Full Year 2021 Financial and Operational Highlights All comparisons, unless otherwise noted, are to the twelve months ended December 31, 2020. Total revenue was $22.1 million Total revenue by segment Retail Pharmacy Services revenue increased 161% to $20.2 million Pharmacy Technology revenue decreased 69% to $1.9 million. Total revenue for the third quarter of 2020 included a non-recurring benefit of $4.7 million recognized in conjunction with a commercial agreement from 2018; excluding this benefit, Pharmacy Technology revenue increased 27%. 81 MedCenter total net cumulative deployments compared to 46 MedCenter total net cumulative deployments, representing 76% growth 68 MedCenter total net dispensing deployments compared to 38 total MedCenter net dispensing deployments, representing 79% growth Net loss was $43.8 million compared to a net loss of $26.8 million Adjusted EBITDA loss of $39.6 million compared to $23.8 million Financial Outlook MedAvail expects total revenue for the first quarter of 2022 to be in excess of $8.8 million, which represents more than double its total revenue in the same period in 2021. The company expects adjusted gross margin improvement in the first quarter of 2022 compared to the fourth quarter of 2021. Conference Call MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, March 24, 2022, to discuss its fourth quarter and full year 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com. The webcast will be archived and available for replay for at least 90 days after the event. Definition of Key Metrics Dispensing Deployments We define dispensing deployments as deployments that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks. About MedAvail MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com. Non-GAAP Financial Measures MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures. Forward Looking Statements Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," 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 MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth and profitability; expansion plans; margin improvement; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to risks discussed under the heading "Risk Factors" in both MedAvail’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and its Quarterly Report on Form 10-Q, filed with the SEC on November 9, 2021, and other filings MedAvail makes with the SEC in the future. Additional information is also set forth in MedAvail’s Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements. SOURCE MedAvail Holdings, Inc. MEDAVAIL HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except per-share amounts) (Unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 (1) 2021 2020 (1) Revenue: Pharmacy and hardware revenue $ 6,954 $ 3,009 $ 21,119 $ 10,596 Service revenue 326 91 1,010 3,372 Total revenue 7,280 3,100 22,129 13,968 Cost of products sold and services: Pharmacy and hardware cost of products sold 7,562 3,250 21,306 8,593 Service costs 80 96 506 212 Total cost of products sold and services 7,642 3,346 21,812 8,805 Operating expense: Pharmacy operations 4,068 2,195 13,496 6,146 General and administrative 5,544 5,795 22,277 15,863 Selling and marketing 2,148 1,206 7,204 3,283 Research and development 248 150 849 682 Merger expenses — 2,084 — 4,691 Total operating expense 12,008 11,430 43,826 30,665 Operating loss (12,370 ) (11,676 ) (43,509 ) (25,502 ) Other income (loss), net — (118 ) 206 (110 ) Interest income 5 28 79 43 Interest expense (261 ) (330 ) (589 ) (1,241 ) Loss before income taxes (12,626 ) (12,096 ) (43,813 ) (26,810 ) Income tax expense — — (2 ) — Net loss $ (12,626 ) $ (12,096 ) $ (43,815 ) $ (26,810 ) Other comprehensive income (loss): Foreign currency translation adjustment $ — $ 24 $ — $ 22 Total comprehensive loss $ (12,626 ) $ (12,072 ) $ (43,815 ) $ (26,788 ) Net loss per share - basic and diluted $ (0.38 ) $ (0.71 ) $ (1.34 ) $ (4.69 ) Weighted average shares outstanding - basic and diluted 32,852 17,003 32,656 5,722 (1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow. MEDAVAIL HOLDINGS, INC. Operating Expense Reclassifications (In thousands) (Unaudited) Three Months Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 2,195 $ 2,033 $ 162 General and administrative 5,795 6,019 (224 ) Selling and marketing 1,206 1,147 59 Research and development 150 149 1 $ 9,346 $ 9,348 $ (2 ) Year Ended December 31, 2020 Current presentation As previously reported Change Pharmacy operations $ 6,146 $ 5,687 $ 459 General and administrative 15,863 16,562 (699 ) Selling and marketing 3,283 3,043 240 $ 25,292 $ 25,292 $ — MEDAVAIL HOLDINGS, INC. Consolidated Condensed Balance Sheets (In thousands, except share and per-share amounts) (Unaudited) December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 19,689 $ 57,936 Restricted cash 400 60 Accounts receivable, net 1,189 1,520 Inventories 3,916 2,817 Prepaid expenses and other current assets 2,191 1,534 Total current assets 27,385 63,867 Property, plant and equipment, net 5,692 3,795 Right-of-use assets 2,538 1,239 Other assets 228 203 Intangible assets, net 2,300 227 Total assets $ 38,143 $ 69,331 Liabilities and Shareholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 6,740 $ 4,512 Short-term debt — 2,161 Deferred revenue 83 275 Current portion of lease obligations 682 665 Total current liabilities 7,505 7,613 Long-term debt 9,538 — Long-term portion of lease obligations 2,027 651 Total liabilities 19,070 8,264 Commitments and contingencies Stockholders' equity (deficit): Common shares ($0.001 par value, 100,000,000 shares authorized, 32,902,048 and 31,816,020 shares issued and outstanding at December 31, 2021 and 2020, respectively) 33 32 Warrants 1,373 2,614 Additional paid-in-capital 216,685 213,624 Accumulated other comprehensive loss (6,928 ) (6,928 ) Accumulated deficit (192,090 ) (148,275 ) Total shareholders’ equity 19,073 61,067 Total liabilities and shareholders’ equity $ 38,143 $ 69,331 MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 6,846 $ — $ 6,846 Hardware — — — Subscription — 108 108 Total pharmacy and hardware revenue 6,846 108 6,954 Service revenue: Software integration — — — Software — 134 134 Maintenance and support — 47 47 Installation — — — Professional services and other — 145 145 Total service revenue — 326 326 Total revenue 6,846 434 7,280 Cost of products sold and services (1) 6,901 741 7,642 Gross profit $ (55 ) $ (307 ) (362 ) (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology Total Three Months Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 2,532 $ — $ 2,532 Hardware — 353 353 Subscription — 124 124 Total pharmacy and hardware revenue 2,532 477 3,009 Service revenue: Software integration — — — Software — 20 20 Maintenance and support — 19 19 Installation — 27 27 Professional services and other — 25 25 Total service revenue — 91 91 Total revenue 2,532 568 3,100 Cost of products sold and services (1) 2,685 661 3,346 Gross profit $ (153 ) $ (93 ) $ (246 ) (1) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $173 thousand and $179 thousand, respectively. MEDAVAIL HOLDINGS, INC. Supplemental Financial Information - Segments (In thousands) (Unaudited) Retail Pharmacy Services Pharmacy Technology Total Year Ended December 31, 2021 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 20,203 $ — $ 20,203 Hardware — 470 470 Subscription — 446 446 Total pharmacy and hardware revenue 20,203 916 21,119 Service revenue: Software integration — — — Software — 259 259 Maintenance and support — 161 161 Installation — 39 39 Professional services and other — 551 551 Total service revenue — 1,010 1,010 Total revenue 20,203 1,926 22,129 Cost of products sold and services (1) 20,031 1,781 21,812 Gross profit $ 172 $ 145 $ 317 (1) The pharmacy technology segment includes a provision for inventory of $626 thousand. Retail Pharmacy Services Pharmacy Technology (1) Total Year Ended December 31, 2020 Revenue: Pharmacy and hardware revenue: Retail pharmacy revenue $ 7,728 $ — $ 7,728 Hardware — 2,401 2,401 Subscription — 467 467 Total pharmacy and hardware revenue 7,728 2,868 10,596 Service revenue: Software integration — 3,168 3,168 Software — 44 44 Maintenance and support — 58 58 Installation — 55 55 Professional services and other — 47 47 Total service revenue — 3,372 3,372 Total revenue 7,728 6,240 13,968 Cost of products sold and services (2) 7,744 1,061 8,805 Gross profit $ (16 ) $ 5,179 $ 5,163 (1) Includes $1.5 million of hardware sales and $3.2 million of software integration sales associated with a non-recurring commercial agreement. (2) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $250 thousand and $179 thousand, respectively. Non-GAAP Financial Measures To supplement our consolidated condensed financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for non-recurring revenue from a commercial agreement, inventory adjustment, merger-related expenses, and stock-based compensation expense. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. MEDAVAIL HOLDINGS, INC. Reconciliation of GAAP to Non-GAAP Measures (In thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 2021 2020 Net loss (12,626 ) (12,096 ) (43,815 ) (26,810 ) Adjustments to calculate EBITDA: Interest income (5 ) (28 ) (79 ) (43 ) Interest expense 261 330 589 1,241 Income tax expense — — 2 — Depreciation and amortization (1) 569 298 1,827 1,089 EBITDA (11,801 ) (11,496 ) (41,476 ) (24,523 ) Adjustments as follows: Inventory adjustment (2) 626 352 626 429 Non-recurring commercial agreement (3) — — — (4,729 ) Merger expenses — 2,084 — 4,691 Share-based compensation expense 257 155 1,205 380 Adjusted EBITDA (10,918 ) (8,905 ) (39,645 ) (23,752 ) (1) Excludes $203 thousand and $750 thousand of operating lease amortization for the three months and year ended December 31, 2021, respectively. (2) Includes inventory cost adjustments. (3) The year ended December 31, 2020 includes $1.5 million of hardware sales and $3.2 million of software integration revenue associated with a non-recurring commercial agreement. View source version on businesswire.com: https://www.businesswire.com/news/home/20220324005933/en/
