P3 Health Partners Announces Third Quarter 2024 Results

Business Wire11-13

Revenue increased 26% year-over-year to $362.1 million Third quarter results were affected by lower risk adjustments, higher medical expenses in the current year, and retroactive adjustments Executing...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nP3 Health Partners Announces Third Quarter 2024 Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-13 05:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/p3-health-partners-announces-third-210500922.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue increased 26% year-over-year to $362.1 million\nThird quarter results were affected by lower risk adjustments, higher medical expenses in the current year, and retroactive adjustments\nExecuting...</p>\n\n<a href=\"https://finance.yahoo.com/news/p3-health-partners-announces-third-210500922.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PIIIW","symbol_name":"3 Health Partners Warrant","start_time":0,"source_url":"https://finance.yahoo.com/news/p3-health-partners-announces-third-210500922.html","article_id":"2483503220","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/iCz6ciP3obRaOuDwmOeOGA--~B/aD0yMjQ7dz00ODA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/business-wire.com/dea9dd9f68e2bb0ecd5c9cda92322720"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483503220","pubTimestamp":1731445500,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Third quarter results were affected by lower risk adjustments, higher medical expenses in the current year, and retroactive adjustments. Executing key 2025 initiatives with a focus on improvements in profitability metrics. HENDERSON, Nev., November 12, 2024----P3 Health Partners Inc.  , a patient-centered and physician-led population health management company, today announced its financial results for the third quarter ended September 30, 2024.Total revenue was $362.1 million, an increase of 26% compared to $288.4 million in the third quarter of the prior year. Capitated revenue was $357.7 million, an increase of 25% compared to $285.2 million in the third quarter of the prior year. Net loss was $102.9 million compared to a net loss of $37.3 million in the third quarter of the prior year. Net loss PMPM was $267 compared to a net loss PMPM of $119 in the prior year.  Adjusted EBITDA, Adjusted EBITDA per member, per month , medical margin, and medical margin PMPM are non-GAAP financial m","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PIIIW":"3 Health Partners Warrant","PIII":"3 Health Partners","BK4196":"保健护理服务"},"translate_title":"P3 Health Partners公布2024年第三季度业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PIII":1,"PIIIW":0.9},"content_text":"Revenue increased 26% year-over-year to $362.1 million\nThird quarter results were affected by lower risk adjustments, higher medical expenses in the current year, and retroactive adjustments\nExecuting key 2025 initiatives with a focus on improvements in profitability metrics\nManagement to Host Conference Call and Webcast November 12, 2024 at 4:30 PM ET\nHENDERSON, Nev., November 12, 2024--(BUSINESS WIRE)--P3 Health Partners Inc. (\"P3\" or the \"Company\") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the third quarter ended September 30, 2024.\n\"As we execute on our strategic initiatives, we believe P3 will be well-positioned to unlock the value built within our platform and generate sustainable, profitable growth in the medium and long term,\" said Aric Coffman, CEO of P3. \"We have identified more than $130 million of potential improvement opportunities, and while near-term dynamics have negatively affected our financial results, demand for our platform has never been stronger as we continue to deliver value to patients, payors and our PCP partners. Our business model is fundamentally strong, as shown by our member and top-line growth, quality outcomes, and provider retention.\"\nThird Quarter 2024 Financial Results\n\nTotal revenue was $362.1 million, an increase of 26% compared to $288.4 million in the third quarter of the prior year\nCapitated revenue was $357.7 million, an increase of 25% compared to $285.2 million in the third quarter of the prior year\nGross profit was a loss of $39.8 million, as compared to gross profit of $9.1 million in the prior year. Gross profit PMPM was a loss of $103, compared to $29 PMPM in the prior year\nMedical margin(1) was $0.5 million compared to $36.2 million in the prior year. Medical margin PMPM(1) was $1, compared to a medical margin PMPM of $115 in the prior year\nNet loss was $102.9 million compared to a net loss of $37.3 million in the third quarter of the prior year. Net loss PMPM was $267 compared to a net loss PMPM of $119 in the prior year\nAdjusted EBITDA loss(1) was $71.0 million compared to $22.3 million in the third quarter of the prior year. Adjusted EBITDA loss PMPM(1) was $184, compared to Adjusted EBITDA loss PMPM of $71 in the third quarter of the prior year\nIn light of a lower-than-expected 2024 risk adjustment, continued elevated medical cost pressures, and retroactive adjustments, the Company is withdrawing its previous guidance for fiscal year ending December 31, 2024, provided on its second quarter 2024 earnings call on August 7, 2024, and investors should no longer rely on it.\n\n\n\n\n(1) Adjusted EBITDA, Adjusted EBITDA per member, per month (\"PMPM\"), medical margin, and medical margin PMPM are non-GAAP financial measures. For reconciliations of these measures to the most directly comparable GAAP measures, if applicable, and more information regarding the Company’s use of non-GAAP financial measures, please see the section titled \"Non-GAAP Financial Measures.\"\n\n\n \n\n\n\n\n\n(2) See \"Key Performance Metrics\" for additional information on how the Company defines \"at-risk members.\"\n\n\n\nManagement to Host Conference Call and Webcast on November 12, 2024 at 4:30 PM ET\n\n\n\nTitle & Webcast\n\nP3 Health Third Quarter Earnings Conference Call\n\n\nDate & Time\n\nNovember 12, 2024, 4:30pm Eastern Time\n\n\nConference Call Details\n\nToll-Free 1-833-316-0546 (US)International 1-412-317-0692Ask to be joined into the P3 Health Partners call\n\n\nThe conference call will also be webcast live in the \"Events & Presentations\" section of the Investor page of the P3 website (ir.p3hp.org). The Company’s press release will be available at ir.p3hp.org website in advance of the conference call. An archived recording of the webcast will be available at ir.p3hp.org for a period of 90 days following the conference call.\n\n\n\nAbout P3 Health Partners (NASDAQ: PIII):\nP3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 3,100 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 27 counties across five states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit www.p3hp.org and follow us on @p3healthpartners and Facebook.com/p3healthpartners.\nNon-GAAP Financial Measures\nIn addition to the financial results prepared in accordance with accounting principles generally accepted in the U.S. (\"GAAP\"), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA and Adjusted EBITDA PMPM, medical margin, and medical margin PMPM. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii) income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to exclude the effect of certain supplemental adjustments, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (iii) equity-based compensation expense, (iv) certain transaction and other related costs and (v) certain other items that we believe are not indicative of our core operating performances. Adjusted EBITDA PMPM is defined as Adjusted EBITDA divided by the number of at-risk Medicare members each month divided by the number of months in the period. We believe these non‐GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation revenue after medical claims expenses are deducted and medical margin PMPM is defined as medical margin divided by the number of Medicare members each month divided by the number of months in the period.\nMedical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. We do not consider these non‐GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures 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. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end of this press release present a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA PMPM to net income (loss) PMPM, medical margin to gross profit, and medical margin PMPM to gross profit PMPM, which are the most directly comparable financial measures calculated in accordance with GAAP.\nKey Performance Metrics\nIn addition to our GAAP and non-GAAP financial information, the Company also monitors \"at-risk members\" to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period.\nCautionary Note Regarding Forward-Looking Statements\nThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. 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 address various matters, including the Company’s future expected growth strategy and operating performance; and the Company’s ability to execute on its identified strategic improvement opportunities, all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. 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.\nImportant risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management’s assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of fluctuations in risk adjustments; our ability to establish and maintain effective internal controls and the impact of material weaknesses we have identified; our ability to maintain the listing of our securities on Nasdaq; increased labor costs and medical expense; our ability to recruit and retain qualified team members and independent physicians; and the factors described under Part I, Item 1A. \"Risk Factors\" and Part II, Item 7. \"Management’s Discussion and Analysis of Financial Condition and Results of Operations\" in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 28, 2024, and in our subsequent filings with the SEC.\nAll information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release.\n\n\n\nP3 HEALTH PARTNERS INC. and SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share amounts)(unaudited)\n\n\n\n\n\n \n\n\n\nSeptember 30, 2024\n\nDecember 31, 2023\n\n\nASSETS\n\n\n\n\n\nCURRENT ASSETS:\n\n\n\n\n\nCash\n$\n62,962\n\n\n$\n36,320\n\n\n\nRestricted cash\n\n5,136\n\n\n\n4,614\n\n\n\nHealth plan receivable, net of allowance for credit losses of $150\n\n123,325\n\n\n\n118,497\n\n\n\nClinic fees, insurance and other receivable\n\n2,495\n\n\n\n2,973\n\n\n\nPrepaid expenses and other current assets\n\n11,032\n\n\n\n3,613\n\n\n\nAssets held for sale\n\n10,123\n\n\n\n—\n\n\n\nTOTAL CURRENT ASSETS\n\n215,073\n\n\n\n166,017\n\n\n\nProperty and equipment, net\n\n6,315\n\n\n\n8,686\n\n\n\nIntangible assets, net\n\n594,865\n\n\n\n666,733\n\n\n\nOther long-term assets\n\n17,080\n\n\n\n19,531\n\n\n\nTOTAL ASSETS (1)\n$\n833,333\n\n\n$\n860,967\n\n\n\nLIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY\n\n\n\n\n\nCURRENT LIABILITIES:\n\n\n\n\n\nAccounts payable\n$\n13,468\n\n\n$\n8,663\n\n\n\nAccrued expenses and other current liabilities\n\n49,205\n\n\n\n36,884\n\n\n\nAccrued payroll\n\n4,409\n\n\n\n3,506\n\n\n\nHealth plan settlements payable\n\n41,169\n\n\n\n34,992\n\n\n\nClaims payable\n\n230,736\n\n\n\n178,009\n\n\n\nPremium deficiency reserve\n\n29,441\n\n\n\n13,670\n\n\n\nAccrued interest\n\n35,929\n\n\n\n23,648\n\n\n\nShort-term debt\n\n208\n\n\n\n—\n\n\n\nLiabilities held for sale\n\n753\n\n\n\n—\n\n\n\nTOTAL CURRENT LIABILITIES\n\n405,318\n\n\n\n299,372\n\n\n\nOperating lease liability\n\n11,158\n\n\n\n13,622\n\n\n\nWarrant liabilities\n\n19,718\n\n\n\n1,085\n\n\n\nContingent consideration\n\n—\n\n\n\n4,907\n\n\n\nLong-term debt, net\n\n133,228\n\n\n\n108,319\n\n\n\nTOTAL LIABILITIES (1)\n\n569,422\n\n\n\n427,305\n\n\n\nCOMMITMENTS AND CONTINGENCIES\n\n\n\n\n\nMEZZANINE EQUITY:\n\n\n\n\n\nRedeemable non-controlling interest\n\n143,397\n\n\n\n291,532\n\n\n\nSTOCKHOLDERS’ EQUITY:\n\n\n\n\n\nClass A common stock, $0.0001 par value; 800,000 shares authorized; 161,972 and 116,588 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively\n\n16\n\n\n\n12\n\n\n\nClass V common stock, $0.0001 par value; 205,000 shares authorized; 195,957 and 196,569 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively\n\n20\n\n\n\n20\n\n\n\nAdditional paid in capital\n\n565,054\n\n\n\n509,442\n\n\n\nAccumulated deficit\n\n(444,576\n)\n\n\n(367,344\n)\n\n\nTOTAL STOCKHOLDERS’ EQUITY\n\n120,514\n\n\n\n142,130\n\n\n\nTOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY\n$\n833,333\n\n\n$\n860,967\n\n\n\n\n\n\n\n____________________\n\n\n(1)\n\nThe Company’s condensed consolidated balance sheets include the assets and liabilities of its consolidated variable interest entities (\"VIEs\"). As discussed in Note 13 \"Variable Interest Entities,\" P3 LLC is itself a VIE. P3 LLC represents substantially all the assets and liabilities of the Company. As a result, the language and amounts below refer only to VIEs held at the P3 LLC level. The condensed consolidated balance sheets include total assets that can be used only to settle obligations of P3 LLC’s consolidated VIEs totaling $13.0 million and $8.6 million as of September 30, 2024 and December 31, 2023, respectively, and total liabilities of P3 LLC’s consolidated VIEs for which creditors do not have recourse to the general credit of the Company totaled $15.8 million and $13.6 million as of September 30, 2024 and December 31, 2023, respectively. These VIE assets and liabilities do not include $46.9 million and $44.2 million of net amounts due to affiliates as of September 30, 2024 and December 31, 2023, respectively, as these are eliminated in consolidation and not presented within the condensed consolidated balance sheets.\n\n\n\n\n\n\nP3 HEALTH PARTNERS INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(unaudited)\n\n\n\n\n\n \n\n\n\nThree Months EndedSeptember 30,\n\nNine Months EndedSeptember 30,\n\n\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nOPERATING REVENUE:\n\n\n\n\n\n\n\n\n\nCapitated revenue\n$\n357,706\n\n\n$\n285,153\n\n\n$\n1,116,146\n\n\n$\n909,473\n\n\n\nOther patient service revenue\n\n4,418\n\n\n\n3,198\n\n\n\n13,623\n\n\n\n10,041\n\n\n\nTOTAL OPERATING REVENUE\n\n362,124\n\n\n\n288,351\n\n\n\n1,129,769\n\n\n\n919,514\n\n\n\nOPERATING EXPENSE:\n\n\n\n\n\n\n\n\n\nMedical expense\n\n401,920\n\n\n\n279,220\n\n\n\n1,149,148\n\n\n\n867,061\n\n\n\nPremium deficiency reserve\n\n18,168\n\n\n\n(12,489\n)\n\n\n15,771\n\n\n\n(9,361\n)\n\n\nCorporate, general and administrative expense\n\n27,219\n\n\n\n33,065\n\n\n\n81,230\n\n\n\n97,931\n\n\n\nSales and marketing expense\n\n134\n\n\n\n654\n\n\n\n870\n\n\n\n2,512\n\n\n\nDepreciation and amortization\n\n21,673\n\n\n\n21,721\n\n\n\n64,905\n\n\n\n65,041\n\n\n\nTOTAL OPERATING EXPENSE\n\n469,114\n\n\n\n322,171\n\n\n\n1,311,924\n\n\n\n1,023,184\n\n\n\nOPERATING LOSS\n\n(106,990\n)\n\n\n(33,820\n)\n\n\n(182,155\n)\n\n\n(103,670\n)\n\n\nOTHER INCOME (EXPENSE):\n\n\n\n\n\n\n\n\n\nInterest expense, net\n\n(5,647\n)\n\n\n(4,002\n)\n\n\n(15,339\n)\n\n\n(11,939\n)\n\n\nMark-to-market of stock warrants\n\n5,737\n\n\n\n755\n\n\n\n14,626\n\n\n\n(327\n)\n\n\nOther\n\n445\n\n\n\n190\n\n\n\n1,073\n\n\n\n(455\n)\n\n\nTOTAL OTHER INCOME (EXPENSE)\n\n535\n\n\n\n(3,057\n)\n\n\n360\n\n\n\n(12,721\n)\n\n\nLOSS BEFORE INCOME TAXES\n\n(106,455\n)\n\n\n(36,877\n)\n\n\n(181,795\n)\n\n\n(116,391\n)\n\n\nINCOME TAX BENEFIT (PROVISION)\n\n3,605\n\n\n\n(412\n)\n\n\n565\n\n\n\n(928\n)\n\n\nNET LOSS\n\n(102,850\n)\n\n\n(37,289\n)\n\n\n(181,230\n)\n\n\n(117,319\n)\n\n\nLESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NON-CONTROLLING INTEREST\n\n(56,338\n)\n\n\n(23,993\n)\n\n\n(103,998\n)\n\n\n(85,008\n)\n\n\nNET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST\n$\n(46,512\n)\n\n$\n(13,296\n)\n\n$\n(77,232\n)\n\n$\n(32,311\n)\n\n\n\n\n\n\n\n\n\n\n\n\nNET LOSS PER SHARE (Note 9):\n\n\n\n\n\n\n\n\n\nBasic\n$\n(0.29\n)\n\n$\n(0.12\n)\n\n$\n(0.55\n)\n\n$\n(0.37\n)\n\n\nDiluted\n$\n(0.31\n)\n\n$\n(0.12\n)\n\n$\n(0.64\n)\n\n$\n(0.41\n)\n\n\n\n\n\n\n\n\n\n\n\n\nWEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Note 9):\n\n\n\n\n\n\n\n\n\nBasic\n\n161,890\n\n\n\n114,198\n\n\n\n139,292\n\n\n\n88,010\n\n\n\nDiluted\n\n164,701\n\n\n\n312,679\n\n\n\n141,723\n\n\n\n288,379\n\n\n\n\n\n\n\nP3 HEALTH PARTNERS INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)\n\n\n\n \n\n\n\nNine Months Ended September 30,\n\n\n\n2024\n\n2023\n\n\nCASH FLOWS FROM OPERATING ACTIVITIES:\n\n\n\n\n\nNet loss\n$\n(181,230\n)\n\n$\n(117,319\n)\n\n\nAdjustments to reconcile net loss to net cash used in operating activities:\n\n\n\n\n\nDepreciation and amortization\n\n64,905\n\n\n\n65,041\n\n\n\nEquity-based compensation\n\n5,031\n\n\n\n4,259\n\n\n\nAmortization of original issue discount and debt issuance costs\n\n13\n\n\n\n405\n\n\n\nAccretion of contingent consideration\n\n—\n\n\n\n113\n\n\n\nGain on write off of contingent consideration\n\n(4,907\n)\n\n\n—\n\n\n\nMark-to-market adjustment of stock warrants\n\n(14,626\n)\n\n\n327\n\n\n\nPremium deficiency reserve\n\n15,771\n\n\n\n(9,361\n)\n\n\nChanges in operating assets and liabilities:\n\n\n\n\n\nHealth plan receivable\n\n(4,828\n)\n\n\n(45,258\n)\n\n\nClinic fees, insurance, and other receivable\n\n445\n\n\n\n5,275\n\n\n\nPrepaid expenses and other current assets\n\n(7,402\n)\n\n\n(429\n)\n\n\nOther long-term assets\n\n(2\n)\n\n\n(1,214\n)\n\n\nAccounts payable, accrued expenses, and other current liabilities\n\n1,780\n\n\n\n2,758\n\n\n\nAccrued payroll\n\n903\n\n\n\n2,405\n\n\n\nHealth plan settlements payable\n\n6,177\n\n\n\n21,814\n\n\n\nClaims payable\n\n52,727\n\n\n\n4,290\n\n\n\nAccrued interest\n\n12,281\n\n\n\n7,092\n\n\n\nOperating lease liability\n\n72\n\n\n\n(348\n)\n\n\nNet cash used in operating activities\n\n(52,890\n)\n\n\n(60,150\n)\n\n\nCASH FLOWS FROM INVESTING ACTIVITIES:\n\n\n\n\n\nPurchases of property and equipment\n\n—\n\n\n\n(2,039\n)\n\n\nPurchase price received in advance of asset sale\n\n15,000\n\n\n\n—\n\n\n\nNet cash provided by (used in) investing activities\n\n15,000\n\n\n\n(2,039\n)\n\n\nCASH FLOWS FROM FINANCING ACTIVITIES:\n\n\n\n\n\nProceeds from long-term debt, net of original issue discount\n\n25,000\n\n\n\n14,101\n\n\n\nPayment of debt issuance costs\n\n(100\n)\n\n\n(173\n)\n\n\nProceeds from liability-classified warrants and private placement offering, net of offering costs paid\n\n40,547\n\n\n\n87,244\n\n\n\nProceeds from at-the-market sales, net of offering costs paid\n\n33\n\n\n\n—\n\n\n\nDeferred offering costs paid\n\n(507\n)\n\n\n—\n\n\n\nPayment of tax withholdings upon settlement of restricted stock unit awards\n\n(127\n)\n\n\n—\n\n\n\nRepayment of short-term and long-term debt\n\n(1,663\n)\n\n\n—\n\n\n\nProceeds from short-term debt\n\n1,871\n\n\n\n—\n\n\n\nNet cash provided by financing activities\n\n65,054\n\n\n\n101,172\n\n\n\nNet change in cash and restricted cash\n\n27,164\n\n\n\n38,983\n\n\n\nCash and restricted cash, beginning of period\n\n40,934\n\n\n\n18,457\n\n\n\nCash and restricted cash, end of period\n$\n68,098\n\n\n$\n57,440\n\n\n\n\n\n\n\nRECONCILIATION OF NET LOSS TO ADJUSTED EBITDA LOSS(in thousands, except PMPM)(unaudited)\n\n\n\n\n\n \n\n\n\nThree Months Ended September 30,\n\nNine Months Ended September 30,\n\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nNet loss\n$\n(102,850\n)\n\n$\n(37,289\n)\n\n$\n(181,230\n)\n\n$\n(117,319\n)\n\n\nInterest expense, net\n\n5,647\n\n\n\n4,002\n\n\n\n15,339\n\n\n\n11,939\n\n\n\nDepreciation and amortization\n\n21,673\n\n\n\n21,721\n\n\n\n64,905\n\n\n\n65,041\n\n\n\nIncome tax (benefit) provision\n\n(3,605\n)\n\n\n412\n\n\n\n(565\n)\n\n\n928\n\n\n\nMark-to-market of stock warrants\n\n(5,737\n)\n\n\n(755\n)\n\n\n(14,626\n)\n\n\n327\n\n\n\nPremium deficiency reserve\n\n18,168\n\n\n\n(12,489\n)\n\n\n15,771\n\n\n\n(9,361\n)\n\n\nEquity-based compensation\n\n1,958\n\n\n\n2,251\n\n\n\n5,031\n\n\n\n4,259\n\n\n\nOther(1)\n\n(6,254\n)\n\n\n(185\n)\n\n\n(4,242\n)\n\n\n2,868\n\n\n\nTransaction and other related costs(2)\n\n—\n\n\n\n—\n\n\n\n—\n\n\n\n70\n\n\n\nAdjusted EBITDA loss\n$\n(71,000\n)\n\n$\n(22,332\n)\n\n$\n(99,617\n)\n\n$\n(41,248\n)\n\n\nAdjusted EBITDA loss PMPM\n$\n(184\n)\n\n$\n(71\n)\n\n$\n(87\n)\n\n$\n(44\n)\n\n\n\n\n\n\n_____________________________________________\n\n\n(1)\n\nOther during the three and nine months ended September 30, 2024 consisted of (i) interest income and (ii) gain recognized upon the settlement and write-off of contingent consideration related to an acquisition completed in a prior year partially offset by (iii) severance and related expense in connection with our chief executive officer transition and (iv) valuation allowance on our notes receivable. Other during the three and nine months ended September 30, 2023 consisted of (i) interest income offset by (ii) cybersecurity incident loss with respect to the nine months ended September 30, 2023, (iii) restructuring and other charges, including severance and benefits paid to employees pursuant to workforce reduction plans with respect to the nine months ended September 30, 2023, (iv) the disposition of our Pahrump operations, (v) expenses for third-party consultants to assist us with the development, implementation, and documentation of new and enhanced internal controls and processes for compliance with Sarbanes-Oxley Section 404(b) with respect to the nine months ended September 30, 2023, (vi) a legal settlement outside of the ordinary course of business with respect to the nine months ended September 30, 2023, and (vii) valuation allowance on our notes receivable.\n\n\n(2)\n\nTransaction and other related costs during the nine months ended September 30, 2023 consisted of legal fees incurred related to acquisition-related litigation.\n\n\n\n\n\n\nMEDICAL MARGIN(in thousands, except PMPM)(unaudited)\n\n\n\n\n\n \n\n\n\nThree Months Ended September 30,\n\nNine Months Ended September 30,\n\n\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nCapitated revenue\n$\n357,706\n\n\n$\n285,153\n\n\n$\n1,116,146\n\n\n$\n909,473\n\n\n\nLess: medical claims expense\n\n(357,166\n)\n\n\n(248,918\n)\n\n\n(1,037,965\n)\n\n\n(783,497\n)\n\n\nMedical margin\n$\n540\n\n\n$\n36,235\n\n\n$\n78,181\n\n\n$\n125,976\n\n\n\nMedical margin PMPM\n$\n1\n\n\n$\n115\n\n\n$\n69\n\n\n$\n135\n\n\n\n\n\n\n\nRECONCILIATION OF GROSS PROFIT (LOSS) TO MEDICAL MARGIN(in thousands)(unaudited)\n\n\n\n\n\n \n\n\n\nThree Months Ended September 30,\n\nNine Months Ended September 30,\n\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nGross profit (loss)\n$\n(39,796\n)\n\n$\n9,131\n\n\n$\n(19,379\n)\n\n$\n52,453\n\n\n\nOther patient service revenue\n\n(4,418\n)\n\n\n(3,198\n)\n\n\n(13,623\n)\n\n\n(10,041\n)\n\n\nOther medical expense\n\n44,754\n\n\n\n30,302\n\n\n\n111,183\n\n\n\n83,564\n\n\n\nMedical margin\n$\n540\n\n\n$\n36,235\n\n\n$\n78,181\n\n\n$\n125,976\n\n\n\n\n\n\n\nRECONCILIATION OF TOTAL OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE(in thousands)(unaudited)\n\n\n\n\n\n \n\n\n\nThree Months Ended September 30,\n\nNine Months Ended September 30,\n\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nTotal operating expense\n$\n469,114\n\n\n$\n322,171\n\n\n$\n1,311,924\n\n\n$\n1,023,184\n\n\n\nMedical expense\n\n(401,920\n)\n\n\n(279,220\n)\n\n\n(1,149,148\n)\n\n\n(867,061\n)\n\n\nDepreciation and amortization\n\n(21,673\n)\n\n\n(21,721\n)\n\n\n(64,905\n)\n\n\n(65,041\n)\n\n\nPremium deficiency reserve\n\n(18,168\n)\n\n\n12,489\n\n\n\n(15,771\n)\n\n\n9,361\n\n\n\nEquity-based compensation\n\n(1,958\n)\n\n\n(2,251\n)\n\n\n(5,031\n)\n\n\n(4,259\n)\n\n\nOther\n\n6,157\n\n\n\n(7\n)\n\n\n3,564\n\n\n\n(2,404\n)\n\n\nTransaction and other related costs\n\n—\n\n\n\n—\n\n\n\n—\n\n\n\n(70\n)\n\n\nAdjusted operating expense\n$\n31,552\n\n\n$\n31,461\n\n\n$\n80,633\n\n\n$\n93,710\n\n\n\n\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241112304615/en/\nContacts\nRyan HalstedInvestor RelationsGilmartin Groupir@p3hp.org","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483503220"}