Astrana Health, Inc. Reports First Quarter 2024 Results
Company to Host Conference Call on
"We believe our strong first quarter performance continues to demonstrate the uniqueness of our platform, care model, and technology. Revenue growth of 20%, net income attributable to Astrana growth of 13% and adjusted EBITDA growth of 42% relative to the prior year quarter were primarily driven by solid membership growth across all lines of business and successful management of total cost of care for our members. Additionally, organic membership growth of 10% year-to-date increased our total number of lives managed to approximately one million. We also made further progress transitioning our members into full-risk arrangements, which we expect to account for approximately 60% of our total capitation revenue as of
Financial Highlights for First Quarter Ended
All comparisons are to the quarter ended
- Total revenue of
$404.4 million , up 20% from$337.2 million -
Care Partners revenue of$397.1 million , up 26% from$314.7 million - Net income attributable to Astrana of
$14.8 million , up 13% from$13.1 million - Adjusted EBITDA of
$42.2 million , up 42% from$29.8 million - Earnings per share - diluted ("EPS - diluted") of
$0.31 per share, up 11% from$0.28 per share
Recent Operating Highlights
- We successfully closed the second and final part of our Community Family Care ("CFC") acquisition on
March 31, 2024 . This acquisition marks the largest in Astrana's history and allows the Company to take on greater responsibility for the outcomes of the patients we serve with CFC's full-risk Medicaid Restricted Knox-Keene license. - We also completed the acquisition of Prime Community Care of
Central Valley ("PCCCV") onMarch 29, 2024 . PCCCV is a risk-bearing provider organization with over 150 primary care and multi-specialty care providers which serves around 26,000 primarily Medicaid members in theCentral Valley ofCalifornia . - We opened two new de novo clinics in
Nevada in April.
Segment Results for the First Quarter Ended
|
Three Months Ended |
|||||||||||||
(in thousands) |
Care |
|
Care |
|
Care |
|
Other |
|
Intersegment |
|
|
Corporate |
|
Consolidated |
Total revenues |
$ 397,095 |
|
$ 30,719 |
|
$ 33,274 |
|
$ — |
|
$ (56,732) |
|
|
$ — |
|
$ 404,356 |
% change vs. prior year quarter |
26 % |
|
21 % |
|
9 % |
|
|
|
|
|
|
|
|
20 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
314,966 |
|
24,794 |
|
17,373 |
|
— |
|
(26,734) |
|
|
— |
|
330,399 |
General and administrative(1) |
38,933 |
|
6,163 |
|
12,397 |
|
— |
|
(30,075) |
|
|
16,400 |
|
43,818 |
Total expenses |
353,899 |
|
30,957 |
|
29,770 |
|
— |
|
(56,809) |
|
|
16,400 |
|
374,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ 43,196 |
|
$ (238) |
|
$ 3,504 |
|
$ — |
|
$ 77 |
(2) |
|
$ (16,400) |
|
$ 30,139 |
% change vs. prior year quarter |
94 % |
|
(75) % |
|
(39) % |
|
|
|
|
|
|
|
|
35 % |
|
(1) Balance includes general and administrative expenses and depreciation and amortization. |
(2) Income from operations for the intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income which is not presented in the table. |
2024 Guidance:
Astrana is reiterating the following guidance for total revenue, net income attributable to Astrana, Adjusted EBITDA, and EPS - diluted, based on the Company's existing business, current view of existing market conditions and assumptions for the year ending
|
|
2024 |
||
($ in millions) |
|
Low |
|
High |
Total revenue |
|
$ 1,650.0 |
|
$ 1,850.0 |
Net income attributable to |
|
$ 61.0 |
|
$ 73.0 |
Adjusted EBITDA |
|
$ 165.0 |
|
$ 185.0 |
EPS – diluted |
|
$ 1.28 |
|
$ 1.52 |
See "Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements" below for additional information.
Conference Call and Webcast Information:
Astrana will host a conference call at
|
+1 (888) 437-3179 |
International (Toll): |
+1 (862) 298-0702 |
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=y3Hig4E8.
An accompanying slide presentation will be available in PDF format on the "IR Calendar" page of the Company's website (https://ir.astranahealth.com/news-events/ir-calendar) after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed with the
Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
Note About Consolidated Entities
The Company consolidates entities in which it has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.
Note About Stockholders' Equity, Certain Treasury Stock and Earnings Per Share
As of the date of this press release, 41,048 holdback shares have not been issued to certain former shareholders of the Company's subsidiary,
Shares of Astrana's common stock owned by Allied Physicians of
About
Astrana is a leading provider-centric, technology-powered healthcare company enabling providers to deliver accessible, high-quality, and high-value care to all. Leveraging its proprietary end-to-end technology solutions, Astrana operates an integrated healthcare delivery platform that enables providers to successfully participate in value-based care arrangements, thus empowering them to deliver high quality care to patients in a cost-effective manner.
Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance for the year ending
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
(626) 943-6491
investors@astranahealth.com
|
||||
CONSOLIDATED BALANCE SHEETS |
||||
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) |
||||
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ 334,796 |
|
$ 293,807 |
Investment in marketable securities |
|
2,490 |
|
2,498 |
Receivables, net |
|
120,106 |
|
76,780 |
Receivables, net – related parties |
|
62,354 |
|
58,980 |
Income taxes receivable |
|
— |
|
10,657 |
Other receivables |
|
1,783 |
|
1,335 |
Prepaid expenses and other current assets |
|
17,281 |
|
17,450 |
|
|
|
|
|
Total current assets |
|
538,810 |
|
461,507 |
|
|
|
|
|
Non-current assets |
|
|
|
|
Land, property and equipment, net |
|
7,985 |
|
7,171 |
Intangible assets, net |
|
119,707 |
|
71,648 |
|
|
410,267 |
|
278,831 |
Income taxes receivable |
|
15,943 |
|
15,943 |
Loans receivable, non-current |
|
47,412 |
|
26,473 |
Investments in other entities – equity method |
|
35,893 |
|
25,774 |
Investments in privately held entities |
|
6,396 |
|
6,396 |
Restricted cash |
|
645 |
|
345 |
Operating lease right-of-use assets |
|
39,152 |
|
37,396 |
Other assets |
|
4,067 |
|
1,877 |
|
|
|
|
|
Total non-current assets |
|
687,467 |
|
471,854 |
|
|
|
|
|
Total assets(1) |
|
$ 1,226,277 |
|
$ 933,361 |
|
|
|
|
|
Liabilities, mezzanine equity and equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued expenses |
|
$ 146,473 |
|
$ 59,949 |
Fiduciary accounts payable |
|
7,792 |
|
7,737 |
Medical liabilities |
|
136,494 |
|
106,657 |
Income taxes payable |
|
5,522 |
|
— |
Dividend payable |
|
638 |
|
638 |
Finance lease liabilities |
|
636 |
|
646 |
Operating lease liabilities |
|
5,007 |
|
4,607 |
Current portion of long-term debt |
|
20,750 |
|
19,500 |
Other liabilities |
|
31,960 |
|
18,940 |
|
|
|
|
|
Total current liabilities |
|
355,272 |
|
218,674 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Deferred tax liability |
|
3,756 |
|
4,072 |
Finance lease liabilities, net of current portion |
|
1,015 |
|
1,033 |
Operating lease liabilities, net of current portion |
|
37,716 |
|
36,289 |
Long-term debt, net of current portion and deferred financing costs |
|
368,448 |
|
258,939 |
Other long-term liabilities |
|
7,652 |
|
3,586 |
|
|
|
|
|
Total non-current liabilities |
|
418,587 |
|
303,919 |
|
|
|
|
|
Total liabilities(1) |
|
773,859 |
|
522,593 |
|
|
|
|
|
Mezzanine equity |
|
|
|
|
Noncontrolling interest in Allied Physicians of |
|
(205,557) |
|
(205,883) |
|
|
|
|
|
Stockholders' equity |
|
|
|
|
Series A Preferred stock, par value |
|
— |
|
— |
Series B Preferred stock, par value |
|
— |
|
— |
Common stock, par value |
|
48 |
|
47 |
Additional paid-in capital |
|
395,473 |
|
371,037 |
Retained earnings |
|
257,969 |
|
243,134 |
Total Stockholders' equity |
|
653,490 |
|
614,218 |
|
|
|
|
|
Non-controlling interest |
|
4,485 |
|
2,433 |
|
|
|
|
|
Total equity |
|
657,975 |
|
616,651 |
|
|
|
|
|
Total liabilities, mezzanine equity, and stockholders' equity |
|
$ 1,226,277 |
|
$ 933,361 |
|
(1)The Company's consolidated balance sheets include the assets and liabilities of its consolidated VIEs. The consolidated balance sheets include total assets that can be used only to settle obligations of the Company's consolidated VIEs totaling |
CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED) |
||||
|
||||
|
|
Three Months Ended
|
||
|
|
2024 |
|
2023 |
|
|
|
|
|
Revenue |
|
|
|
|
Capitation, net |
|
$ 365,910 |
|
$ 300,204 |
Risk pool settlements and incentives |
|
17,377 |
|
13,462 |
Management fee income |
|
4,078 |
|
9,896 |
Fee-for-service, net |
|
15,937 |
|
12,062 |
Other revenue |
|
1,054 |
|
1,620 |
|
|
|
|
|
Total revenue |
|
404,356 |
|
337,244 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Cost of services, excluding depreciation and amortization |
|
330,399 |
|
289,397 |
General and administrative expenses |
|
38,722 |
|
21,182 |
Depreciation and amortization |
|
5,096 |
|
4,292 |
|
|
|
|
|
Total expenses |
|
374,217 |
|
314,871 |
|
|
|
|
|
Income from operations |
|
30,139 |
|
22,373 |
|
|
|
|
|
Other income (expense) |
|
|
|
|
Income from equity method investments |
|
632 |
|
2,484 |
Interest expense |
|
(7,585) |
|
(3,269) |
Interest income |
|
3,996 |
|
3,009 |
Unrealized gain (loss) on investments |
|
1,099 |
|
(6,392) |
Other (loss) income |
|
(4,277) |
|
1,204 |
|
|
|
|
|
Total other expense, net |
|
(6,135) |
|
(2,964) |
|
|
|
|
|
Income before provision for income taxes |
|
24,004 |
|
19,409 |
|
|
|
|
|
Provision for income taxes |
|
7,142 |
|
6,921 |
|
|
|
|
|
Net income |
|
16,862 |
|
12,488 |
|
|
|
|
|
Net income (loss) attributable to non-controlling interest |
|
2,027 |
|
(644) |
|
|
|
|
|
Net income attributable to |
|
$ 14,835 |
|
$ 13,132 |
|
|
|
|
|
Earnings per share – basic |
|
$ 0.31 |
|
$ 0.28 |
|
|
|
|
|
Earnings per share – diluted |
|
$ 0.31 |
|
$ 0.28 |
EBITDA
Set forth below are reconciliations of Net Income to EBITDA and Adjusted EBITDA as well as the reconciliation to Adjusted EBITDA margin for the three months ended
|
|
Three Months Ended
|
|
||
(in thousands) |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Net income |
|
$ 16,862 |
|
$ 12,488 |
|
Interest expense |
|
7,585 |
|
3,269 |
|
Interest income |
|
(3,996) |
|
(3,009) |
|
Provision for income taxes |
|
7,142 |
|
6,921 |
|
Depreciation and amortization |
|
5,096 |
|
4,292 |
|
EBITDA |
|
32,689 |
|
23,961 |
|
|
|
|
|
|
|
Income from equity method investments |
|
(632) |
|
(249) |
|
Other, net |
|
4,440 |
(1) |
1,402 |
(2) |
Stock-based compensation |
|
5,748 |
|
3,445 |
|
APC excluded asset costs |
|
— |
|
1,266 |
|
Adjusted EBITDA |
|
$ 42,245 |
|
$ 29,825 |
|
|
|
|
|
|
|
Total revenue |
|
$ 404,356 |
|
$ 337,244 |
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
10 % |
|
9 % |
|
|
(1) Other, net for the three months ended |
(2) Other, net for the three months ended |
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||
|
|
|
|
|
|
|
2024 |
||
(in thousands) |
|
Low |
|
High |
Net income |
|
$ 71,500 |
|
$ 85,500 |
Interest expense |
|
14,500 |
|
12,500 |
Provision for income taxes |
|
36,500 |
|
44,500 |
Depreciation and amortization |
|
14,500 |
|
14,500 |
EBITDA |
|
137,000 |
|
157,000 |
|
|
|
|
|
Income from equity method investments |
|
(5,000) |
|
(5,000) |
Other, net |
|
6,000 |
|
6,000 |
Stock-based compensation |
|
27,000 |
|
27,000 |
Adjusted EBITDA |
|
$ 165,000 |
|
$ 185,000 |
Use of Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, of which the most directly comparable financial measure presented in accordance with
The Company believes the presentation of these non-GAAP financial measures provides investors with relevant and useful information, as it allows investors to evaluate the operating performance of the business activities without having to account for differences recognized because of non-core or non-recurring financial information. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company's ongoing operating performance. In addition, these non-GAAP financial measures are among those indicators the Company uses as a basis for evaluating operational performance, allocating resources, and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for, GAAP financial measures. Other companies may calculate both EBITDA and Adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. To the extent this release contains historical or future non-GAAP financial measures, the Company has provided corresponding GAAP financial measures for comparative purposes. The reconciliation between certain GAAP and non-GAAP measures is provided above.
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