Item 7.01 Regulation FD Disclosure.
agilon health, inc. (the "Company", "we," "our," and "us") will participate in
meetings with the investment community in conjunction with the 41st Annual
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Reaffirm Adjusted EBITDA guidance of
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Provide preliminary Adjusted EBITDA guidance of
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Provide preliminary Medicare Advantage membership outlook of above 400,000 members for the year-end 2023, compared to the Company's previous outlook of approximately 390,000 members for the year-end 2023.
We have not reconciled guidance for Adjusted EBITDA to net income (loss), the most comparable GAAP measure, and have not provided forward-looking guidance for net income (loss) because of the uncertainty around certain items that may impact net income (loss) as described below.
Interested investors and other parties may listen to a simultaneous webcast of
the presentation on
We define Adjusted EBITDA as net income (loss) adjusted to exclude: (i) income (loss) from discontinued operations, net of income taxes, (ii) interest expense, (iii) income tax expense (benefit), (iv) depreciation and amortization expense, (v) geography entry costs, (vi) share-based compensation expense, (vii) severance and related costs, and (viii) certain other items that are not considered by us in the evaluation of ongoing operating performance. We reflect our share of Adjusted EBITDA for equity method investments by applying our actual ownership percentage for the period to the applicable reconciling items on an entity-by-entity basis. Net income (loss) is the most directly comparable GAAP measure to Adjusted EBITDA.
We believe Adjusted EBITDA helps identify underlying trends in our business and facilitate evaluation of period-to-period operating performance of our live geographies by eliminating items that are variable in nature and not considered by us in the evaluation of ongoing operating performance, allowing comparison of our recurring core business operating results over multiple periods. We also believe Adjusted EBITDA provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key metrics we use for financial and operational decision-making. We believe Adjusted EBITDA or similarly titled non-GAAP measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance. Other companies may calculate Adjusted EBITDA or similarly titled non-GAAP measures differently from the way we calculate this metric. As a result, our presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, limiting their usefulness as comparative measures.
Forward-Looking Statements
Statements in this report that are not historical facts are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include, among other things, statements regarding our
and our officers' intent, belief or expectation as identified by the use of
words such as "may," "will," "project," "expect," "believe," "intend,"
"anticipate," "seek," "target," "forecast," "plan," "potential," "estimate,"
"could," "would," "should," and other comparable and derivative terms or the
negatives thereof. Examples of forward-looking statements include, among other
things: (i) statements regarding timing, outcomes and other details relating to
current, pending or contemplated new markets, new partnership structures,
financing activities, dispositions, or other transactions discussed in this
report; and (ii) statements regarding growth opportunities, ability to deliver
sustainable long-term value, business environment, long-term opportunities and
strategic growth plan including without limitation with respect to expected
revenue and net income, total and average membership, Adjusted EBITDA, and other
financial projections and assumptions. Forward-looking statements reflect our
current expectations and views about future events and are subject to risks and
uncertainties that could significantly affect our future financial condition and
results of operations. While forward-looking statements reflect our good faith
belief and assumptions we believe to be reasonable based upon current
information, we can give no assurance that our expectations or forecasts will be
attained. Further, we cannot guarantee the accuracy of any such forward-looking
statement contained in this report, and such forward-looking statements are
subject to known and unknown risks and uncertainties that are difficult to
predict. These risks and uncertainties that could cause actual results and
outcomes to differ from those reflected in forward-looking statements include,
but are not limited to: our history of net losses, and our ability to achieve or
maintain profitability in an environment of increasing expenses; our ability to
identify and develop successful new geographies, physician partners and payors,
or to execute upon our growth initiatives; our ability to execute our operation
strategies or to achieve results consistent with our historical performance; our
expectation that our expenses will increase in the future and the risk that
medical expenses incurred on behalf of members may exceed the amount of medical
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revenues we receive; our ability to secure contracts with Medicare Advantage
payors or to secure Medicare Advantage payments at favorable financial terms;
our ability to recover startup costs incurred during the initial stages of
development of our physician partner relationships and program initiatives;
significant reductions in our membership; challenges for our physician partners
in the transition to a Total Care Model; inaccuracies in the estimates and
assumptions we use to project the size, revenue or medical expense amounts of
our target markets; the spread of, and response to, the novel coronavirus, or
COVID-19, and the inability to predict the ultimate impact on us; security
breaches, loss of data or other disruptions to our data platforms; the impact of
devoting significant attention and resources to the provision of certain
transition services in connection with the disposition of our
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