Third Quarter Revenues of
Revenues for the Nine-Month Period of
Results reflect the deconsolidation of Glocal as of
Over 60% of Transformation Initiatives Completed to Date; Company Continues to Add New Leadership
Completed Previously Announced
Meckey also said, “We apologize for the delay in filing our third quarter financial statements. Unprecedented actions by the Board of Directors of our Glocal subsidiary in
Third Quarter 2022 Financial Highlights:
- Revenues for the third quarter of 2022 was
$38.7 million , compared to revenues for the third quarter of 2021 of$45.2 million . The reduction is driven by the deconsolidation of the Glocal financials and lack of new customer growth in the Integrated Care business. Gross margin expanded to 48%, from 40% in the third quarter of 2021. - Revenues and gross margin by segment for the third quarter of 2022 were:
Integrated Care Management generated$3.8 million of revenues (10% of total revenues) with a gross margin of 75%.- Virtual Care Infrastructure generated
$15.0 million of revenues (39% of total revenues) with a gross margin of 55%. - Services generated
$19.9 million of revenues (51% of total revenues) with a gross margin of 37%.
- Operating loss for the third quarter of 2022 was
$120.0 million , a 2460% increase compared to operating loss in the third quarter of 2021 of$4.7 million . This increase primarily resulted from goodwill and intangible asset impairment charges taken in the three months endedSeptember 30, 2022 of$106.1 million due to the recent change in our market valuation and financial performance from ourIntegrated Care Management and Services segments, as well as the deconsolidation of Glocal during the third quarter of 2022 and higher legal expenses associated with the matter. - Adjusted EBITDA for the third quarter of 2022 was
$(1.2) million , compared to Adjusted EBITDA for the third quarter of 2021 of$3.1 million .
Please refer to the discussion and tables under “Non-GAAP Financial Information.”
Year-to-Date Third Quarter 2022 Financial Highlights:
- GAAP revenues for the nine months ended
September 30, 2022 , was$118.3 million , a 32% increase compared to GAAP revenues for the nine months endedSeptember 30, 2021 , of$89.9 million and a 3% increase compared to pro forma revenues for the nine months endedSeptember 30, 2021 of$115.0 million . Gross margin for the nine months endedSeptember 30, 2022 , expanded to 48%, compared to GAAP and pro forma gross margin of 40% in the comparable year ago period. - Year-to-date revenues and gross margin by segment for the nine months ended
September 30, 2022 , were:Integrated Care Management generated$14.2 million of revenues (12% of total revenues) with a gross margin of 80%.- Virtual Care Infrastructure generated
$47.4 million of revenues (40% of total revenues) with a gross margin of 50%. - Services generated
$56.7 million of revenues (48% of total revenues) with a gross margin of 37%.
- Operating loss for the nine months ended
September 30, 2022 , was$148.0 million , a (244)% increase compared to year-to-date operating loss for the comparable year ago period of$43.0 million . This increase primarily resulted from goodwill and intangible asset impairment charges taken in the nine months endedSeptember 30, 2022 of$112.3 million due to the recent change in our market valuation and financial performance from ourIntegrated Care Management and Services segments, as well as the deconsolidation of Glocal during the third quarter of 2022 and higher legal expenses associated with the matter. - Adjusted EBITDA for the nine months ended
September 30, 2022 , was$1.4 million , compared to year-to-date GAAP and pro forma Adjusted EBITDA for the nine months endedSeptember 30, 2021 of$6.0 million and$8.5 million , respectively.
Please refer to the discussion and tables under “Non-GAAP Financial Information.”
Update on Glocal:
The Company is aggressively pursuing legal action both in
On
Convertible Debt Financing:
During the month of August, the Company closed its previously announced private placement of
Significant Third Quarter Business Highlights:
UpHealth made considerable progress on its business transformation agenda in the third quarter, increasing the number of transformation initiatives completed year to date to over 60%. Additionally,UpHealth identified several issues that it put on hold due to the Company’s ongoing analysis of its business strategy and its assessment of the organization’s assets.- During the third quarter, Martti™ supported 279,000 encounters per month and 42,000 endpoints at over 2,800 medical facilities in the
U.S. Also, during the quarter, the Company closed twenty-one new Martti™ contracts. - The Company recorded its largest volume of telehealth use ever in the
U.S. with over 12.4 million minutes of consultations in Q3, a 17% increase over Q2 2022. - SyntraNet’s Social Health Information Exchange (SHIE) built in partnership with Alameda County Health Care Services received a 2022 Solutions Award from CompTIA, a non-profit association recognizing leaders in the IT industry.
- Transformations Treatment Centers was ranked as #6 of Best Addiction Treatment Centers for 2022 in
Florida by Newsweek.
Subsequent to the quarter’s end,
- Welcomed transformation and technology expert
Timothy Wilde as Chief Technology Officer, healthcare veteranMelissa Frieswick as Chief Growth Officer, and Dr.Mahesh Inder Veer Singh as Executive Vice President ofUpHealth International . - Conducted the Annual Meeting of Stockholders on
December 5, 2022 . At that meeting, stockholders electedSam Meckey , UpHealth’s Chief Executive Officer, and two new independent members,Mark Guinan andLuis Machuca , to the UpHealth Board of Directors.Mr. Guinan replacedNeil Miotto as the Chairman of the Audit Committee of the Board. - Began a comprehensive review of the Company’s strategic initiatives for 2023, focusing on conserving cash; optimizing operations to ensure exemplary customer service while managing costs; strategically investing in high-growth initiatives; aligning leadership, and driving organic growth in the Company’s most profitable business units. In addition, the Company is considering whether all its existing assets fit into its strategic plan going forward, work that will be completed in Q1 2023.
Balance Sheet and Cash Flow
On
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Investors Relations:
Managing Director
203-741-8811
UPH@mzgroup.us
Media Inquiries:
Chief Communications Officer
mediarelations@uphealthinc.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts, unaudited)
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 22,608 | $ | 58,192 | |||
Restricted cash | — | 18,609 | |||||
Accounts receivable, net | 22,626 | 22,761 | |||||
Inventories | 2,762 | 2,928 | |||||
Due from related parties | 21 | 40 | |||||
Prepaid expenses and other current assets | 4,077 | 4,217 | |||||
Total current assets | 52,094 | 106,747 | |||||
Property and equipment, net | 20,075 | 56,072 | |||||
Intangible assets, net | 56,474 | 115,313 | |||||
195,028 | 284,268 | ||||||
Deferred tax assets | 83 | — | |||||
Equity investment | 21,200 | — | |||||
Other assets | 454 | 6,907 | |||||
Total assets | $ | 345,408 | $ | 569,307 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 16,393 | $ | 13,604 | |||
Accrued expenses | 41,238 | 36,084 | |||||
Deferred revenues | 4,407 | 2,649 | |||||
Due to related party | 209 | 47 | |||||
Income taxes payable | 229 | 739 | |||||
Related-party debt, current | 403 | 657 | |||||
Debt, current | 10 | 22,093 | |||||
Forward share purchase liability | — | 18,051 | |||||
Other liabilities, current | 3,758 | 2,780 | |||||
Total current liabilities | 66,647 | 96,704 | |||||
Related-party debt, noncurrent | 343 | 331 | |||||
Debt, noncurrent | 143,303 | 98,417 | |||||
Deferred tax liabilities | — | 28,281 | |||||
Warrant liabilities, noncurrent | 61 | 252 | |||||
Derivative liability, noncurrent | 692 | 7,977 | |||||
Other liabilities, noncurrent | 2,880 | 3,502 | |||||
Total liabilities | 213,926 | 235,464 | |||||
Stockholders’ Equity: | |||||||
Common stock | 2 | 1 | |||||
Additional paid-in capital | 686,518 | 665,474 | |||||
(17,000 | ) | — | |||||
Accumulated deficit | (538,854 | ) | (343,209 | ) | |||
Accumulated other comprehensive loss | — | (3,802 | ) | ||||
130,666 | 318,464 | ||||||
Noncontrolling interests | 816 | 15,379 | |||||
Total stockholders’ equity | 131,482 | 333,843 | |||||
Total liabilities and stockholders’ equity | $ | 345,408 | $ | 569,307 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | |||||||||||||||
Services | $ | 27,600 | $ | 21,977 | $ | 81,382 | $ | 45,563 | |||||||
Licenses and subscriptions | 2,019 | 10,956 | 10,612 | 23,759 | |||||||||||
Products | 9,047 | 12,259 | 26,312 | 20,568 | |||||||||||
Total revenues | 38,666 | 45,192 | 118,306 | 89,890 | |||||||||||
Costs of revenues: | |||||||||||||||
Services | 13,440 | 12,434 | 42,647 | 26,497 | |||||||||||
License and subscriptions | 463 | 6,350 | 913 | 13,020 | |||||||||||
Products | 6,264 | 8,461 | 18,550 | 14,104 | |||||||||||
Total costs of revenues | 20,167 | 27,245 | 62,110 | 53,621 | |||||||||||
Gross profit | 18,499 | 17,947 | 56,196 | 36,269 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 4,771 | 3,090 | 10,983 | 5,670 | |||||||||||
Research and development | 2,231 | 1,916 | 5,600 | 5,759 | |||||||||||
General and administrative | 13,922 | 11,452 | 42,213 | 22,481 | |||||||||||
Depreciation and amortization | 3,336 | 3,626 | 13,272 | 7,496 | |||||||||||
Stock-based compensation | 2,126 | 410 | 4,588 | 410 | |||||||||||
Lease abandonment expenses | — | 915 | 75 | 915 | |||||||||||
106,096 | — | 112,270 | — | ||||||||||||
Acquisition, integration, and transformation costs | 6,049 | 1,227 | 15,182 | 36,566 | |||||||||||
Total operating expenses | 138,531 | 22,636 | 204,183 | 79,297 | |||||||||||
Loss from operations | (120,032 | ) | (4,689 | ) | (147,987 | ) | (43,028 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest expense | (6,708 | ) | (8,145 | ) | (20,306 | ) | (13,760 | ) | |||||||
Gain on consolidation of equity investment | — | — | — | 640 | |||||||||||
Loss on deconsolidation of subsidiary | (37,708 | ) | — | (37,708 | ) | — | |||||||||
Gain on fair value of derivative liability | 223 | 49,885 | 6,893 | 49,885 | |||||||||||
Gain on fair value of warrant liabilities | — | 373 | 190 | 1,447 | |||||||||||
Gain (loss) on extinguishment of debt | (14,610 | ) | — | (14,610 | ) | 151 | |||||||||
Other income, net, including interest income | 32 | 259 | 30 | 40 | |||||||||||
Total other income (expense) | (58,771 | ) | 42,372 | (65,511 | ) | 38,403 | |||||||||
Income (loss) before income tax benefit (expense) | (178,803 | ) | 37,683 | (213,498 | ) | (4,625 | ) | ||||||||
Income tax benefit (expense) | 13,219 | (6,695 | ) | 17,744 | 357 | ||||||||||
Net income (loss) before loss from equity investment | (165,584 | ) | 30,988 | (195,754 | ) | (4,268 | ) | ||||||||
Loss from equity investment | — | — | — | (561 | ) | ||||||||||
Net income (loss) | (165,584 | ) | 30,988 | (195,754 | ) | (4,829 | ) | ||||||||
Less: net income (loss) attributable to noncontrolling interests | 178 | 231 | (109 | ) | 147 | ||||||||||
Net income (loss) attributable to | $ | (165,762 | ) | $ | 30,757 | $ | (195,645 | ) | $ | (4,976 | ) | ||||
Net income (loss) per share attributable to | |||||||||||||||
Basic | $ | (11.17 | ) | $ | 2.61 | $ | (13.41 | ) | $ | (0.52 | ) | ||||
Diluted | $ | (11.17 | ) | $ | 2.60 | $ | (13.41 | ) | $ | (0.52 | ) | ||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 14,842 | 11,763 | 14,588 | 9,519 | |||||||||||
Diluted | 14,842 | 11,807 | 14,588 | 9,519 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Nine Months Ended | |||||||
2022 | 2021 | ||||||
Operating activities: | |||||||
Net loss | $ | (195,754 | ) | $ | (4,829 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 17,274 | 9,701 | |||||
Amortization of debt issuance costs and discount on convertible debt | 10,130 | 5,398 | |||||
Stock-based compensation | 4,588 | 410 | |||||
Provision for bad debt expense | 1 | — | |||||
Impairment of property, plant and equipment, intangible assets and goodwill | 112,270 | — | |||||
Loss (gain) on extinguishment of debt | 14,610 | (151 | ) | ||||
Loss from equity investment | — | 561 | |||||
Gain on consolidation of equity investment | — | (640 | ) | ||||
Loss on deconsolidation of subsidiary | 37,708 | — | |||||
Gain on fair value of warrant liabilities | (190 | ) | (1,447 | ) | |||
Gain on fair value of derivative liability | (6,893 | ) | (49,885 | ) | |||
Loss on disposal of property and equipment | — | 80 | |||||
Deferred income taxes | (17,485 | ) | (1,274 | ) | |||
Other | — | 350 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | (5,201 | ) | (27,550 | ) | |||
Inventories | (126 | ) | (326 | ) | |||
Prepaid expenses and other current assets | (592 | ) | (1,050 | ) | |||
Accounts payable and accrued expenses | 10,475 | 16,467 | |||||
Income taxes payable | (758 | ) | 886 | ||||
Deferred revenue | 2,382 | 4,643 | |||||
Due to related parties | (39 | ) | 17 | ||||
Other liabilities | 49 | 230 | |||||
Net cash used in operating activities | (17,551 | ) | (48,409 | ) | |||
Investing activities: | |||||||
Purchases of property and equipment | (5,238 | ) | (1,879 | ) | |||
Due to (from) related parties | (14 | ) | 253 | ||||
Net cash acquired in acquisition of businesses | — | 4,263 | |||||
Net cash (used in) provided by investing activities | (13,995 | ) | 2,637 | ||||
Financing activities: | |||||||
Proceeds from merger and recapitalization transaction | — | 83,435 | |||||
Proceeds from debt | 67,500 | 164,500 | |||||
Repayments of debt | (48,234 | ) | (23,307 | ) | |||
Proceeds from Provider Relief Funds | — | 506 | |||||
Payment of debt issuance costs | (1,475 | ) | (8,100 | ) | |||
Repayment of forward share purchase | (18,521 | ) | — | ||||
Repayments of seller notes | (18,680 | ) | (99,207 | ) | |||
Payments of capital lease obligations | (2,544 | ) | (1,253 | ) | |||
Proceeds from stock option exercises | — | 319,000 | |||||
Payments for taxes related to net settlement of equity awards | (95 | ) | — | ||||
Distribution to noncontrolling interest | (139 | ) | (100 | ) | |||
Payments of amount due to member | — | (4,271 | ) | ||||
Net cash (used in) provided by financing activities | (22,188 | ) | 112,522 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (459 | ) | (807 | ) | |||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (54,193 | ) | 65,943 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 76,801 | 2,369 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 22,608 | $ | 68,312 |
NON-GAAP FINANCIAL INFORMATION
Non-GAAP Financial Information
This press release includes financial measures that are not calculated in accordance with accounting principles generally accepted in
- Pro forma revenues consist of GAAP revenues and revenues from UpHealth’s subsidiaries prior to their acquisition.
- Pro forma gross profit and gross margin consist of GAAP gross profit and gross margin, and gross profit and gross margin from UpHealth’s subsidiaries prior to their acquisition.
- Adjusted EBITDA consists of net income (loss) attributable to
UpHealth, Inc. , excluding depreciation and amortization; stock-based compensation; lease abandonment expenses; goodwill and intangible asset impairments; acquisition, integration, and transformation costs; other income (expense); income tax benefit (expense); income (loss) from equity investment; net income (loss) attributable to noncontrolling interests; and other non-recurring charges to GAAP net income (loss) attributable toUpHealth, Inc. Other non-recurring charges to GAAP net income (loss) attributable toUpHealth, Inc. may include transaction expenses in connection with capital raising transactions (whether debt, equity or equity-linked) and acquisitions, whether or not consummated, purchase price adjustments, the cumulative effect of a change in accounting principles, or other expenses determined to be non-recurring.
Pro forma revenues, pro forma gross profit, pro forma gross margin, and adjusted EBITDA are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. You should not consider these measures in isolation or as a substitute for analysis of UpHealth’s results as reported under GAAP.
The accompanying tables provide more details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands)
Three Months Ended | |||
GAAP | |||
Revenues | $ | 38,666 | |
Gross margin | 48 | % | |
Net loss attributable to | $ | (165,762 | ) |
Net loss attributable to noncontrolling interests | 178 | ||
Net loss | (165,584 | ) | |
Other expense | 58,771 | ||
Income tax benefit | (13,219 | ) | |
Loss from operations | (120,032 | ) | |
Depreciation and amortization | 4,514 | ||
Stock-based compensation | 2,126 | ||
Acquisition, integration and transformation costs, and non-recurring expenses (2) | 112,145 | ||
Adjusted EBITDA | $ | (1,247 | ) |
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect acquisition, integration and transformation costs from the condensed consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
Three Months Ended | |||
GAAP | |||
Revenues | $ | 45,192 | |
Gross margin | 40 | % | |
Net loss attributable to | $ | 30,757 | |
Net loss attributable to noncontrolling interests | 231 | ||
Net loss | 30,988 | ||
Other expense | (42,372 | ) | |
Income tax benefit | 6,695 | ||
Loss from operations | (4,689 | ) | |
Depreciation and amortization | 5,260 | ||
Stock-based compensation | 410 | ||
Acquisition, integration and transformation costs, and non-recurring expenses (2) | 2,142 | ||
Adjusted EBITDA | $ | 3,123 |
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect acquisition, integration and transformation costs from the condensed consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands)
Nine Months Ended | |||
GAAP | |||
Revenues | $ | 118,306 | |
Gross margin | 48 | % | |
Net loss attributable to | $ | (195,645 | ) |
Net loss attributable to noncontrolling interests | (109 | ) | |
Net loss | (195,754 | ) | |
Other expense | 65,511 | ||
Income tax benefit | (17,744 | ) | |
Loss from operations | (147,987 | ) | |
Depreciation and amortization | 17,274 | ||
Stock-based compensation | 4,588 | ||
Acquisition, integration and transformation costs, lease abandonment expenses, goodwill and intangible asset impairment, and non-recurring expenses (2) | 127,527 | ||
Adjusted EBITDA | $ | 1,402 |
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect acquisition, integration and transformation costs, lease abandonment expenses, and goodwill and intangible asset impairment from the condensed consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
Nine Months Ended | |||||||||||
GAAP | Adjustments (2) | Pro Forma (3) | |||||||||
Revenues | $ | 89,890 | $ | 25,082 | $ | 114,972 | |||||
Gross margin | 40 | % | 37 | % | 40 | % | |||||
Net loss attributable to | $ | (4,976 | ) | $ | (4,317 | ) | $ | (9,293 | ) | ||
Net loss attributable to noncontrolling interests | 147 | 28 | 175 | ||||||||
Net loss | (4,829 | ) | (4,289 | ) | (9,118 | ) | |||||
Other expense | (38,403 | ) | (1,171 | ) | (39,574 | ) | |||||
Income tax benefit | (357 | ) | (99 | ) | (456 | ) | |||||
Loss from equity investment | 561 | — | 561 | ||||||||
Loss from operations | (43,028 | ) | (5,559 | ) | (48,587 | ) | |||||
Depreciation and amortization | 9,752 | 2,729 | 12,481 | ||||||||
Stock-based compensation | 410 | — | 410 | ||||||||
Acquisition, integration and transformation costs, and non-recurring expenses (4) | 38,914 | 5,302 | 44,216 | ||||||||
Adjusted EBITDA | $ | 6,048 | $ | 2,472 | $ | 8,520 |
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect operating activity of
(3) Amounts reflect operating activity of
(4) Amounts reflect acquisition, integration and transformation costs from the condensed consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
SEGMENT INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands, unaudited)
Three Months Ended | |||
GAAP | |||
Revenues: | |||
Integrated care management (4) | $ | 3,795 | |
Virtual care infrastructure (5)(7) | 14,978 | ||
Services (6) | 19,893 | ||
Total | $ | 38,666 | |
Three Months Ended | |||
GAAP | |||
Gross Profit: | |||
Integrated care management (4) | $ | 2,854 | |
Virtual care infrastructure (5)(7) | 8,191 | ||
Services (6) | 7,454 | ||
Total | $ | 18,499 | |
Three Months Ended | |||
GAAP | |||
Gross Margin %: | |||
Integrated care management (4) | 75 | % | |
Virtual care infrastructure (5)(7) | 55 | % | |
Services (6) | 37 | % | |
Total | 48 | % |
Three Months Ended | |||
GAAP | |||
Revenues: | |||
Integrated care management (4) | $ | 11,858 | |
Virtual care infrastructure (5) | 15,284 | ||
Services (6) | 18,050 | ||
Total | $ | 45,192 | |
Three Months Ended | |||
GAAP | |||
Gross Profit: | |||
Integrated care management (4) | $ | 4,760 | |
Virtual care infrastructure (5) | 5,838 | ||
Services (6) | 7,349 | ||
Total | $ | 17,947 | |
Three Months Ended | |||
GAAP | |||
Gross Margin %: | |||
Integrated care management (4) | 40 | % | |
Virtual care infrastructure (5) | 38 | % | |
Services (6) | 41 | % | |
Total | 40 | % | |
SEGMENT INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands, unaudited)
Nine Months Ended | |||
GAAP | |||
Revenues: | |||
Integrated care management (4) | $ | 14,230 | |
Virtual care infrastructure (5)(7) | 47,423 | ||
Services (6) | 56,653 | ||
Total | $ | 118,306 | |
Nine Months Ended | |||
GAAP | |||
Gross Profit: | |||
Integrated care management (4) | $ | 11,385 | |
Virtual care infrastructure (5)(7) | 23,779 | ||
Services (6) | 21,032 | ||
Total | $ | 56,196 | |
Nine Months Ended | |||
GAAP | |||
Gross Margin %: | |||
Integrated care management (4) | 80 | % | |
Virtual care infrastructure (5)(7) | 50 | % | |
Services (6) | 37 | % | |
Total | 48 | % |
Nine Months Ended | |||||||||||
GAAP | Adjustments (2) | Pro Forma (3) | |||||||||
Revenues: | |||||||||||
Integrated care management (4) | $ | 29,427 | $ | — | $ | 29,427 | |||||
Virtual care infrastructure (5) | 22,838 | 15,603 | 38,441 | ||||||||
Services (6) | 37,625 | 9,479 | 47,104 | ||||||||
Total | $ | 89,890 | $ | 25,082 | $ | 114,972 | |||||
Nine Months Ended | |||||||||||
GAAP | Adjustments (2) | Pro Forma (3) | |||||||||
Gross Profit: | |||||||||||
Integrated care management (4) | $ | 14,483 | $ | — | $ | 14,483 | |||||
Virtual care infrastructure (5) | 8,771 | 6,097 | 14,868 | ||||||||
Services (6) | 13,015 | 3,157 | 16,172 | ||||||||
Total | $ | 36,269 | $ | 9,254 | $ | 45,523 | |||||
Nine Months Ended | |||||||||||
GAAP | Adjustments (2) | Pro Forma (3) | |||||||||
Gross Margin %: | |||||||||||
Integrated care management (4) | 49 | % | n/a | 49 | % | ||||||
Virtual care infrastructure (5) | 38 | % | 39 | % | 39 | % | |||||
Services (6) | 35 | % | 33 | % | 34 | % | |||||
Total | 40 | % | 37 | % | 40 | % | |||||
SEGMENT INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands, unaudited)
(1 | ) | See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures. |
(2 | ) | Amounts reflect operating activity of |
(3 | ) | Amounts reflect operating activity of Segment Information The Company’s business is organized into three operating business segments: Integrated Care Management—through the Thrasys subsidiary; Virtual Care Infrastructure—through the Cloudbreak and Glocal (other than for the three month period of Services—through the Innovations, BHS and TTC subsidiaries. The reportable segments are consistent with how management views the Company’s services and products and the financial information reviewed by the chief operating decision makers. The Company manages its businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and assess performance. |
(4 | ) | In the |
(5 | ) | In the Virtual Care Infrastructure segment, the Company provides technology and process-based healthcare platforms providing its customers comprehensive primary care, specialty consultations, and translation services, through telemedicine, Digital Dispensaries, and technology-based hospital centers. |
(6 | ) | In the Services segment, the Company provide custom compounded medications for the unique needs of every patient and prescriber. The Company is a full-service pharmacy filling prescriptions from its inventory of compounded medications, as well as drugs purchased from manufacturers. Additionally, the Company provides inpatient and outpatient substance abuse and mental health treatment services for individuals with drug and alcohol addiction and other behavioral health issues. The Company offers a complete continuum of care from detoxification services, residential care, partial hospitalization programs, and intensive outpatient and outpatient programs. |
(7 | ) | As discussed in Note 1, Organization and Business, to the Company’s unaudited condensed consolidated financial statements, the Company deconsolidated Glocal during the three months ended |
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