InnovAge Announces Financial Results for the Fiscal First Quarter Ended September 30, 2024
DENVER, Nov. 05, 2024 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. ("InnovAge" or the "Company") (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal first quarter ended September 30, 2024.
"Our first quarter results reflect our continued momentum and the execution of our strategy to deliver high quality care, while continuing to enhance our margins," said CEO Patrick Blair. "Our strategic initiatives are delivering measurable results, and we remain focused on operational excellence in our centers as we drive sustainable long-term value for our participants and stakeholders."
Financial Results
Three Months Ended September 30,
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2024 2023
in thousands, except percentages
and per share amounts
Total revenues $ 205,142 $ 182,485
Loss Before Income Taxes (5,306) (10,736)
Net Loss (5,710) (10,962)
Net Loss margin (2.8)% (6.0)%
Net Loss Attributable to
InnovAge Holding Corp. (4,929) (10,304)
Net Loss per share - basic and
diluted $ (0.04) $ (0.08)
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Center-level Contribution
Margin(1) $ 34,541 $ 27,877
Adjusted EBITDA(1) $ 6,476 $ 1,306
Adjusted EBITDA margin(1) 3.2% 0.7%
Fiscal First Quarter 2025 Financial Performance
-- Total revenue of $205.1 million, increased approximately 12.4% compared
to $182.5 million in the first quarter of fiscal year 2024
-- Loss Before Income Taxes of $5.3 million improved approximately 50.6%,
compared to a loss before income taxes of $10.7 million in the first
quarter of fiscal year 2024
-- Loss Before Income Taxes as a percent of revenue was 2.6%, a decrease of
3.3 percentage points compared to Loss Before Income Tax as a percent of
revenue of 5.9% in the first quarter of fiscal year 2024
-- Center-level Contribution Margin(1) of $34.5 million, increased 23.9%
compared to $27.9 million in the first quarter of fiscal year 2024
-- Center-level Contribution Margin(1) as a percent of revenue of 16.8%,
increased 1.5 percentage points compared to 15.3% in the first quarter of
fiscal year 2024
-- Net loss of $5.7 million, compared to net loss of $11.0 million in the
first quarter of fiscal year 2024
-- Net loss margin of 2.8%, a decrease of 3.2 percentage points compared to
a net loss margin of 6.0% in the first quarter of fiscal year 2024
-- Net loss attributable to InnovAge Holding Corp. of $4.9 million, or a
loss of $0.04 per share, compared to net loss of $10.3 million, or a loss
of $0.08 per share in the first quarter of fiscal year 2024
-- Adjusted EBITDA(1) of $6.5 million, an increase of $5.2 million compared
to Adjusted EBITDA of $1.3 million in the first quarter of fiscal year
2024
-- Adjusted EBITDA(1) margin of 3.2%, an increase of 2.5 percentage points
compared to 0.7% in the first quarter of fiscal year 2024
-- Census of approximately 7,210 participants compared to 6,580 participants
in the first quarter of fiscal year 2024
-- Ended the first quarter of fiscal year 2025 with $39.0 million in cash
and cash equivalents plus $46.7 million in short-term investments, and
$81.3 million in debt on the balance sheet, representing debt under the
Company's senior secured term loan, convertible term loan and finance
leases
(1) Center-level Contribution Margin and Center-level Contribution Margin as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Effective for the year ended June 30, 2024 and going forward, the Company has revised its calculation of Adjusted EBITDA and has recast the presentation for the three months ended September 30, 2023 to conform to the current presentation. For more details and for a definition and reconciliation of these non-GAAP measures to the most closely comparable GAAP measures for the periods indicated, see "Note Regarding Use of Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Measures."
Full Fiscal Year 2025 Financial Guidance
Based on information as of today, November 5, 2024, InnovAge is confirming the following financial guidance.
Low High
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dollars in millions
Census 7,300 7,750
Total Member Months(1) 86,000 89,000
Total revenues $ 815 $ 865
Adjusted EBITDA(2) $ 24 $ 31
(Expected results and estimates may be impacted by factors outside the Company's control, and actual results may be materially different from this guidance. See "Forward-Looking Statements - Safe Harbor" herein.)
(1) We define Total Member Months as the total number of participants as of period end multiplied by the number of months within a year in which each participant was enrolled in our program. Management believes this is a useful metric as it more precisely tracks the number of participants the Company serves throughout the year.
(2)Adjusted EBITDA is a non-GAAP measure. See "Note Regarding Use of Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Measures" for a definition of Adjusted EBITDA and a reconciliation to net loss, the most closely comparable GAAP measure. The Company is unable to provide guidance for net loss or a reconciliation of the Company's Adjusted EBITDA guidance because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. The Company's inability to do so is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities and other one-time or exceptional items.
Conference Call
The Company will host a conference call this afternoon at 5:00 PM Eastern Time. A live audio webcast of the call will be available on the Company's website, https://investor.innovage.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for a limited time. To access the call by phone, please go to this link (registration link), for dialing instructions and a unique access pin. We encourage participants to dial into the call fifteen minutes ahead of the scheduled start time.
About InnovAge
InnovAge is a market leader in managing the care of high-cost, frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE). With a mission of enabling older adults to age independently in their own homes for as long as safely possible, InnovAge's patient-centered care model is designed to improve the quality of care our participants receive while reducing over-utilization of high-cost care settings. InnovAge believes its PACE healthcare model is one in which all constituencies -- participants, their families, providers and government payors -- "win." As of September 30, 2024, InnovAge served approximately 7,210 participants across 20 centers in six states. https://www.innovage.com.
Investor Contact:
Ryan Kubota
rkubota@innovage.com
Media Contact:
Lara Hazenfield
lhazenfield@innovage.com
Forward-Looking Statements - Safe Harbor
This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts. Examples of forward-looking statements include, among others, statements we may make regarding quarterly or annual guidance; financial outlook, including future revenues and future earnings; the viability of our growth strategy including our ability or expectations to increase the number of participants we serve, to build and/or open de novo centers, or to identify and execute tuck-in acquisitions, joint ventures and strategic partnerships; our ability to control costs, mitigate the effects of elevated expenses, expand our payor capabilities, implement clinical value initiatives and strengthen enterprise functions; our expectations with respect to audits, post-sanction work, legal proceedings and government investigations and actions; relationships and discussions with regulatory agencies; our ability to effectively implement operational excellence as a provider across all our centers; reimbursement and regulatory developments; market developments; new services; integration activities; industry and market opportunity; and the effects of any of the foregoing on our future results of operations or financial conditions.
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