☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, $0.0001 par value per share | CANO | The New York Stock Exchange | ||||||||||||
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share | CANO/WS | The New York Stock Exchange |
Page | ||||||||
PART I FINANCIAL | ||||||||
2 | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. Financial Statements |
(in thousands, except share and per share data) | June 30, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ | 319,277 | $ | 33,807 | ||||
Accounts receivable, net of unpaid service provider costs (Related parties comprised $123 | 131,831 | 76,709 | ||||||
Inventory | 1,176 | 922 | ||||||
Prepaid expenses and other current assets | 20,105 | 8,937 | ||||||
Total current assets | 472,389 | 120,375 | ||||||
Property and equipment, net (Related parties comprised $15,683 and $22,659 December 31, 2020, respectively) | 46,358 | 38,126 | ||||||
Goodwill | 546,312 | 234,328 | ||||||
Payor relationships, net | 395,185 | 189,570 | ||||||
Other intangibles, net | 194,315 | 36,785 | ||||||
Other assets | 4,654 | 4,362 | ||||||
Total assets | $ | 1,659,213 | $ | 623,546 | ||||
Liabilities and stockholder’s equity | ||||||||
Current liabilities: | ||||||||
Current portion of notes payable | $ | 5,488 | $ | 4,800 | ||||
Current portion of equipment loans | 324 | 314 | ||||||
Current portion of capital lease obligations | 978 | 876 | ||||||
Current portion of contingent consideration | 12,347 | — | ||||||
Accounts payable and accrued expenses (Related parties comprised $112 as of December 31, 2020) | 46,465 | 33,180 | ||||||
Deferred revenue (Related parties comprised $988 as of December 31, 2020) | 1,313 | 988 | ||||||
Current portions due to sellers | 22,020 | 27,129 | ||||||
Other current liabilities | 3,734 | 1,333 | ||||||
Total current liabilities | 92,669 | 68,620 | ||||||
Notes payable, net of current portion and debt issuance costs | 525,830 | 456,745 | ||||||
Warrants liabilities | 123,843 | — | ||||||
Equipment loans, net of current portion | 891 | 873 | ||||||
Capital lease obligations, net of current portion | 1,667 | 1,580 | ||||||
Deferred rent (Related parties comprised $92 as of December 31, 2020) | 4,868 | 3,111 | ||||||
Deferred revenue, net of current portion (Related parties comprised $4,277 as of December 31, 2020) | 4,623 | 4,277 | ||||||
Due to sellers, net of current portion | — | 13,976 |
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Contingent consideration | — | 5,172 | ||||||
Other liabilities (Related parties comprised $8,142 as of December 31, 2020) | 16,471 | 11,648 | ||||||
Total liabilities | 770,862 | 566,002 | ||||||
Stockholders’ Equity / Members’ Capital | ||||||||
Shares of Class A common stock $0.0001 par value (authorized 6,000,000,000 shares with 170,299,189 shares issued and 170,299,189 shares outstanding at June 30, 2021) | 17 | — | ||||||
Shares of Class B common stock $0.0001 par value (authorized 1,000,000,000 shares with 306,843,662 shares issued and 306,843,662 shares outstanding at June 30, 2021) | 31 | — | ||||||
Members’ capital | — | 157,591 | ||||||
Additional paid-in capital | 389,892 | — | ||||||
Accumulated deficit | (37,640 | ) | (99,913 | ) | ||||
Notes receivable, related parties | (136 | ) | (134 | ) | ||||
Total Stockholders’ Equity / Members’ Capital | 352,164 | 57,544 | ||||||
Non-controlling interests | 536,187 | — | ||||||
Total Stockholders’ Equity / Members’ Capital | 888,351 | 57,544 | ||||||
Total Liabilities and Stockholders’ Equity / Members’ Capital | $ | 1,659,213 | $ | 623,546 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
( in thousands, except share and per share data ) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue: | ||||||||||||||||
Capitated revenue (Related parties comprised $150,479 , and $335,383 and 2020, and in the six months ended June 30, 2021 and 2020, respectively) | $ | 379,210 | $ | 163,927 | $ | 646,261 | $ | 291,643 | ||||||||
Fee-for-service $213, and respectively) | 13,953 | 7,279 | 27,037 | 14,861 | ||||||||||||
Total revenue | 393,163 | 171,206 | 673,298 | 306,504 | ||||||||||||
Operating expenses: | ||||||||||||||||
Third-party medical costs (Related parties comprised $115,975 $70,555 , and 2020, respectively) | 291,816 | 112,040 | 486,862 | 197,353 | ||||||||||||
Direct patient expense (Related parties comprised $64 , and $1,488, in the three months | 43,782 | 22,554 | 78,069 | 40,333 | ||||||||||||
Selling, general, and administrative expenses (Related parties comprised $1,600 | 46,574 | 21,859 | 81,422 | 42,843 | ||||||||||||
Depreciation and amortization expense | 7,945 | 3,977 | 13,791 | 7,362 | ||||||||||||
Transaction costs and other (Related parties comprised $1,465 $4,209, and $1,483 2021 and 2020, and in the six months ended June 30, 2021 respectively) | 16,374 | 15,687 | 25,613 | 22,138 | ||||||||||||
Total operating expenses | 406,491 | 176,117 | 685,757 | 310,029 | ||||||||||||
Loss from operations | (13,328 | ) | (4,911 | ) | (12,459 | ) | (3,525 | ) | ||||||||
Other income and expense: | ||||||||||||||||
Interest expense | (9,714 | ) | (5,717 | ) | (20,340 | ) | (9,382 | ) | ||||||||
Interest income (Related parties comprised $79 and $157, in the three months ended June 30, 2020, and in the six months ended June 30, 2020, respectively) | 1 | 79 | 2 | 159 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands, except share and per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Loss on extinguishment of debt | (13,225 | ) | — | (13,225 | ) | — | ||||||||||
Change in fair value of embedded derivative | — | (306 | ) | — | (306 | ) | ||||||||||
Change in fair value of warrant liabilities | 39,215 | — | 39,215 | — | ||||||||||||
Other expenses | (25 | ) | (150 | ) | (25 | ) | (150 | ) | ||||||||
Total other income (expense) | 16,252 | (6,094 | ) | 5,627 | (9,679 | ) | ||||||||||
Net income (loss) before income tax benefit | 2,924 | (11,005 | ) | (6,832 | ) | (13,204 | ) | |||||||||
Income tax benefit | 2,023 | 19 | 1,309 | 32 | ||||||||||||
Net income (loss) | $ | 4,947 | $ | (10,986 | ) | $ | (5,523 | ) | $ | (13,172 | ) | |||||
Net loss attributable to non-controlling interests | (4,533 | ) | — | (15,003 | ) | — | ||||||||||
Net income attributable to Class A common stockholders | $ | 9,480 | $ | — | $ | 9,480 | $ | — | ||||||||
Net income per share to Class A common stockholders, basic | $ | 0.06 | N/A | $ | 0.06 | $ | N/A | |||||||||
Net loss per share to Class A common stockholders, diluted | $ | (0.03 | ) | N/A | $ | (0.03 | ) | $ | N/A | |||||||
Weighted-average shares used in computation of earnings per share: | ||||||||||||||||
Basic | 167,134,853 | N/A | 166,691,634 | N/A | ||||||||||||
Diluted | 168,884,315 | N/A | 167,571,198 | N/A | ||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Member’s Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance—March 31, 2021 | 14,629,533 | $ | 157,662 | — | $ | — | — | $ | — | $ | — | $ | (135 | ) | $ | (110,383 | ) | $ | 0 | $ | 47,144 | |||||||||||||||||||||||
Retrospective application of reverse recapitalization | 292,214,129 | (157,631 | ) | — | — | — | — | 157,631 | — | — | — | — | ||||||||||||||||||||||||||||||||
ADJUSTED BALANCE—March 31, 2021 | 306,843,662 | $ | 31 | — | $ | — | — | $ | — | $ | 157,631 | $ | (135 | ) | $ | (110,383 | ) | $ | 0 | $ | 47,144 | |||||||||||||||||||||||
Net loss business combination | — | — | — | — | — | — | — | — | (21,608 | ) | — | (21,608 | ) | |||||||||||||||||||||||||||||||
Business and PIPE financing | (306,843,662 | ) | (31 | ) | 166,243,491 | 17 | 306,843,662 | 31 | 169,093 | — | 85,663 | 518,320 | 773,093 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 3,168 | — | — | — | 3,168 | |||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | — | 4,055,698 | — | — | — | 60,000 | — | (792 | ) | 792 | 60,000 | ||||||||||||||||||||||||||||||||
Interest on notes receivable | — | — | — | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||||||||||
Net income | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | — | $ | 9,480 | $ | 17,075 | 26,555 | ||||||||||||||||||||||||||
BALANCE—June 30, 2021 | — | — | 170,299,189 | 17 | 306,843,662 | 31 | 389,892 | (136 | ) | (37,640 | ) | 536,187 | 888,351 | |||||||||||||||||||||||||||||||
(in thousands, except share data) | September 30, 2021 | December 31, 2020 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 208,913 | $ | 33,807 | ||||||||||
Accounts receivable, net of unpaid service provider costs (Related parties comprised $92 and $50,015 as of September 30, 2021 and December 31, 2020, respectively) | 223,644 | 76,709 | ||||||||||||
Inventory | 1,777 | 922 | ||||||||||||
Prepaid expenses and other current assets | 30,788 | 8,937 | ||||||||||||
Total current assets | 465,122 | 120,375 | ||||||||||||
Property and equipment, net (Related parties comprised $18,897 and $22,659 as of September 30, 2021 and December 31, 2020, respectively) | 64,156 | 38,126 | ||||||||||||
Goodwill | 765,511 | 234,328 | ||||||||||||
Payor relationships, net | 584,265 | 189,570 | ||||||||||||
Other intangibles, net | 256,327 | 36,785 | ||||||||||||
Other assets | 4,703 | 4,362 | ||||||||||||
Total assets | $ | 2,140,084 | $ | 623,546 | ||||||||||
Liabilities and stockholders' equity / members' capital | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of notes payable | $ | 6,493 | $ | 4,800 | ||||||||||
Current portion of equipment loans | 513 | 314 | ||||||||||||
Current portion of capital lease obligations | 1,006 | 876 | ||||||||||||
Current portion of contingent consideration | 8,406 | — | ||||||||||||
Accounts payable and accrued expenses (Related parties comprised $0 and $112 as of September 30, 2021 and December 31, 2020, respectively) | 76,654 | 33,180 | ||||||||||||
Deferred revenue (Related parties comprised $0 and $988 as of September 30, 2021 and December 31, 2020, respectively) | 1,815 | 988 | ||||||||||||
Current portions due to sellers | 24,687 | 27,129 | ||||||||||||
Other current liabilities | 20,000 | 1,333 | ||||||||||||
Total current liabilities | 139,574 | 68,620 | ||||||||||||
Notes payable, net of current portion and debt issuance costs | 916,111 | 456,745 | ||||||||||||
Warrants liabilities | 138,493 | — | ||||||||||||
Equipment loans, net of current portion | 1,454 | 873 | ||||||||||||
Capital lease obligations, net of current portion | 1,559 | 1,580 | ||||||||||||
Deferred rent (Related parties comprised $0 and $92 as of September 30, 2021 and December 31, 2020, respectively) | 5,387 | 3,111 | ||||||||||||
Deferred revenue, net of current portion (Related parties comprised of $0 and $4,277 as of September 30, 2021 and December 31, 2020, respectively) | 4,698 | 4,277 | ||||||||||||
Due to sellers, net of current portion | 170 | 13,976 | ||||||||||||
Contingent consideration | 38,300 | 5,172 | ||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
( in thousands, except shares) | Member’s Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance—March 31, 2020 | — | $ | 137,881 | — | $ | — | — | $ | — | $ | — | $ | (131 | ) | $ | (27,227 | ) | $ | 392 | $ | 110,915 | |||||||||||||||||||||||
Members’ contributions | — | 91,321 | — | — | — | — | — | — | — | — | 91,321 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 58 | — | — | — | — | — | — | — | — | 58 | |||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | 30,300 | — | — | — | — | — | — | — | — | 30,300 | |||||||||||||||||||||||||||||||||
Issuance of common stock for due to seller s balance | — | 2,158 | — | — | — | — | — | — | — | — | 2,158 | |||||||||||||||||||||||||||||||||
Interest on note s receivable | — | — | — | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||||||||||
Net loss | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | — | $ | (10,986 | ) | $ | — | $ | (10,986 | ) | |||||||||||||||||||||||
BALANCE—June 30, 2020 | — | $ | 261,718 | — | $ | — | — | $ | — | $ | — | $ | (132 | ) | $ | (38,213 | ) | $ | 392 | $ | 223,765 | |||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands except shares) | Member’s Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance—December 31, | 14,629,533 | $ | 157,591 | — | $ | — | — | $ | — | $ | — | $ | (134 | ) | $ | (99,913 | ) | $ | — | $ | 57,544 | |||||||||||||||||||||||
Retrospective application reverse | 292,214,129 | (157,560 | ) | — | — | — | — | 157,560 | — | — | — | — | ||||||||||||||||||||||||||||||||
ADJUSTED BALANCE—December 2020 | 306,843,662 | $ | 31 | — | $ | — | — | $ | — | $ | 157,560 | $ | (134 | ) | $ | (99,913 | ) | $ | — | $ | 57,544 | |||||||||||||||||||||||
Net business combination | — | — | — | — | — | — | — | — | (32,078 | ) | — | (32,078 | ) | |||||||||||||||||||||||||||||||
Business combination | (306,843,662 | ) | (31) | 166,243,491 | 17 | 306,843,662 | 31 | 169,093 | — | 85,663 | 518,320 | 773,093 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 3,239 | — | — | — | 3,239 | |||||||||||||||||||||||||||||||||
Issuance of | — | — | 4,055,698 | — | — | — | 60,000 | — | (792 | ) | 792 | 60,000 | ||||||||||||||||||||||||||||||||
Interest on note s receivable | — | — | — | — | — | — | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||||||||||||||||
Net income | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | — | $ | 9,480 | $ | 17,075 | 26,555 | ||||||||||||||||||||||||||
BALANCE—June 30, 2021 | — | $ | — | 170,299,189 | $ | 17 | 306,843,662 | $ | 31 | $ | 389,892 | $ | (136 | ) | $ | (37,640 | ) | $ | 536,187 | $ | 888,351 | |||||||||||||||||||||||
Other liabilities (Related parties comprised $0 and $8,142 as of September 30, 2021 and December 31, 2020, respectively) | 36,325 | 11,648 | ||||||||||||
Total liabilities | 1,282,071 | 566,002 | ||||||||||||
Stockholders’ Equity / Members' Capital | ||||||||||||||
Shares of Class A common stock $0.0001 par value (6,000,000,000 shares authorized and 171,594,914 shares issued and outstanding at September 30, 2021) | 17 | — | ||||||||||||
Shares of Class B common stock $0.0001 par value (1,000,000,000 shares authorized and 305,670,386 shares issued and outstanding at September 30, 2021) | 31 | — | ||||||||||||
Members' capital | — | 157,591 | ||||||||||||
Additional paid-in capital | 363,060 | — | ||||||||||||
Accumulated deficit | (52,547) | (99,913) | ||||||||||||
Notes receivable, related parties | — | (134) | ||||||||||||
Total Stockholders' Equity / Members’ Capital attributable to Class A common stockholders | 310,561 | 57,544 | ||||||||||||
Non-controlling interests | 547,452 | — | ||||||||||||
Total Stockholders' Equity / Members’ Capital | 858,013 | 57,544 | ||||||||||||
Total Liabilities and Stockholders' Equity / Members’ Capital | $ | 2,140,084 | $ | 623,546 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
(in thousands, except share and per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Capitated revenue (Related parties comprised $0 and $131,945, and $335,383 and $239,692, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | $ | 501,780 | $ | 252,974 | $ | 1,148,041 | $ | 544,617 | ||||||||||||||||||
Fee-for-service and other revenue (Related parties comprised $0 and $82, and $631 and $426, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | 25,018 | 10,159 | 52,055 | 25,020 | ||||||||||||||||||||||
Total revenue | 526,798 | 263,133 | 1,200,096 | 569,637 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs (Related parties comprised $0 and $90,166, and $249,819 and $167,109, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | 379,316 | 184,926 | 866,177 | 382,279 | ||||||||||||||||||||||
Direct patient expense (Related parties comprised $6 and $1,016, and $1,502 and $2,161, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | 57,708 | 31,108 | 135,777 | 71,441 | ||||||||||||||||||||||
Selling, general, and administrative expenses (Related parties comprised $4,225 and $3,289, and $9,814 and $8,428, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | 75,926 | 27,391 | 157,348 | 70,234 | ||||||||||||||||||||||
Depreciation and amortization expense | 16,955 | 5,379 | 30,746 | 12,741 | ||||||||||||||||||||||
Transaction costs and other (Related parties comprised $0 and $0, and $1,483 and $5,369 in the three months ended September 30, 2021 and 2020 and nine months ended September 30, 2021 and 2020, respectively) | 6,528 | 7,716 | 32,140 | 29,854 | ||||||||||||||||||||||
Total operating expenses | 536,433 | 256,520 | 1,222,188 | 566,549 | ||||||||||||||||||||||
Income (loss) from operations | (9,635) | 6,613 | (22,092) | 3,088 | ||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||
Interest expense | (16,023) | (12,346) | (36,363) | (21,728) |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Member’s Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance—December 31, 2019 | — | $ | 123,242 | — | $ | — | — | $ | — | $ | — | $ | (130 | ) | $ | (25,041 | ) | $ | 392 | $ | 98,463 | |||||||||||||||||||||||
Members’ contributions | — | 101,906 | — | — | — | — | — | — | — | — | 101,906 | |||||||||||||||||||||||||||||||||
Stock - based | — | 112 | — | — | — | — | — | — | — | — | 112 | |||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | 34,300 | — | — | — | — | — | — | — | — | 34,300 | |||||||||||||||||||||||||||||||||
Issuance of common stock for due to seller s balance | — | 2,158 | — | — | — | — | — | — | — | — | 2,158 | |||||||||||||||||||||||||||||||||
Interest on note s receivable | — | — | — | — | — | — | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (13,172 | ) | 0 | (13,172 | ) | |||||||||||||||||||||||||||||||
BALANCE—June 30, 2020 | — | $ | 261,718 | — | $ | — | — | $ | — | $ | — | $ | (132 | ) | $ | (38,213 | ) | $ | 392 | $ | 223,765 | |||||||||||||||||||||||
Interest income (Related parties comprised $0 and $0, and $0 and $236, in the three months ended September 30, 2021 and 2020, and in the nine months ended September 30, 2021 and 2020, respectively) | 1 | 80 | 4 | 239 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | — | (13,225) | — | ||||||||||||||||||||||
Change in fair value of embedded derivative | — | (5,138) | — | (5,444) | ||||||||||||||||||||||
Change in fair value of warrant liabilities | (14,650) | — | 24,565 | — | ||||||||||||||||||||||
Other expenses | (29) | — | (54) | (150) | ||||||||||||||||||||||
Total other expense | (30,701) | (17,404) | (25,073) | (27,083) | ||||||||||||||||||||||
Net loss before income tax benefit (expense) | (40,336) | (10,791) | (47,165) | (23,995) | ||||||||||||||||||||||
Income tax benefit (expense) | (547) | (326) | 762 | (294) | ||||||||||||||||||||||
Net loss | $ | (40,883) | $ | (11,117) | $ | (46,403) | $ | (24,289) | ||||||||||||||||||
Net loss attributable to non-controlling interests | (26,246) | — | (41,283) | — | ||||||||||||||||||||||
Net loss attributable to Class A common stockholders | $ | (14,637) | $ | — | $ | (5,120) | $ | — | ||||||||||||||||||
Net loss per share attributable to Class A common stockholders, basic | $ | (0.09) | N/A | $ | (0.03) | N/A | ||||||||||||||||||||
Net loss per share attributable to Class A common stockholders, diluted | $ | (0.09) | N/A | $ | (0.08) | N/A | ||||||||||||||||||||
Weighted-average shares used in computation of earnings per share: | ||||||||||||||||||||||||||
Basic | 170,871,429 | N/A | 168,100,210 | N/A | ||||||||||||||||||||||
Diluted | 170,871,429 | N/A | 169,312,258 | N/A | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (5,523 | ) | $ | (13,172 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization expense | 13,791 | 7,362 | ||||||
Change in fair value of contingent consideration | (211 | ) | — | |||||
Change in fair value of embedded derivative | — | 306 | ||||||
Change in fair value of warrant liabilities | (39,215 | ) | — | |||||
Loss on extinguishment of debt | 13,225 | — | ||||||
Amortization of debt issuance costs | 8,540 | 1,089 | ||||||
Equity-based compensation | 3,239 | 112 | ||||||
Paid in kind interest expense | — | 1,188 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (54,973 | ) | (17,806 | ) | ||||
Inventory | (254 | ) | (273 | ) | ||||
Other assets | (5,925 | ) | (20 | ) | ||||
Prepaid expenses and other current assets | (16,790 | ) | (268 | ) | ||||
Accounts payable and accrued expenses (Related parties comprised $123 and $(52) as of | 23,407 | 9,033 | ||||||
Deferred rent (Related parties comprised $115 as of June 30, 2021) | 1,757 | 564 | ||||||
Deferred revenue (Related parties comprised $671 as of June 30, 2021) | 671 | — | ||||||
Other liabilities (Related parties comprised $456 as of June 30, 2021) | 1,681 | (1,258 | ) | |||||
Net cash used in operating activities | (56,580 | ) | (13,143 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property and equipment (Related parties comprised $2,864 and $1,025 as of June 30, 2021 and 2020, respectively) | (7,730 | ) | (3,971 | ) | ||||
Acquisitions of subsidiaries including non-compete intangibles, net of cash acquired | (617,576 | ) | (205,325 | ) | ||||
Payments to sellers | (23,963 | ) | (36,628 | ) | ||||
Advances to related parties | — | (2 | ) | |||||
Net cash used in investing activities | (649,269 | ) | (245,926 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Contributions from member | — | 101,906 | ||||||
Business combination and PIPE financing | 935,362 | — | ||||||
Interest accrued due to seller s | 957 | — | ||||||
Payments of long-term debt | (402,572 | ) | (338 | ) | ||||
Debt issuance costs | (11,274 | ) | (11,356 | ) | ||||
Proceeds from long-term debt | 295,000 | 150,000 | ||||||
Proceeds from delayed draw term loan | 175,000 | — | ||||||
Repayments of delayed draw term loan | (2,350 | ) | — |
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2021 | 170,299,189 | $ | 17 | 306,843,662 | $ | 31 | $ | 389,892 | $ | (136) | $ | (37,640) | $ | 536,187 | $ | 888,351 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 8,909 | — | — | — | 8,909 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | 122,449 | — | — | — | 1,500 | — | (11) | 11 | 1,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class B common stock for Class A common stock | 1,173,276 | — | (1,173,276) | — | 2,309 | — | (259) | (2,050) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of transactions affecting non-controlling interests | — | — | — | — | (39,550) | — | — | 39,550 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of notes receivable, net | — | — | — | — | — | 136 | — | — | 136 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (14,637) | (26,246) | (40,883) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2021 | 171,594,914 | $ | 17 | 305,670,386 | $ | 31 | $ | 363,060 | $ | — | $ | (52,547) | $ | 547,452 | $ | 858,013 |
Six Months Ended June 30, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Proceeds from revolving credit facility | — | 9,700 | ||||||
Repayments of revolving credit facility | — | (9,700 | ) | |||||
Proceeds from insurance financing arrangements | 4,355 | 2,599 | ||||||
Payments of principal on insurance financing arrangements | (2,941 | ) | (1,567 | ) | ||||
Repayments of equipment loans | (154 | ) | (187 | ) | ||||
Repayments of capital lease obligations | (64 | ) | (464 | ) | ||||
Net cash provided by financing activities | 991,319 | 240,593 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 285,470 | (18,476 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of year | 33,807 | 29,192 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 319,277 | $ | 10,716 | ||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | (11,925 | ) | $ | (8,294 | ) | ||
Non-cash investing and financing activities: | ||||||||
Issuance of securities by Cano Health, Inc. in connection with acquisitions | $ | 60,000 | — | |||||
Issuance of securities in PCIH in connection with acquisitions | — | 34,300 | ||||||
Contingent consideration in connection with acquisitions | 9,600 | — | ||||||
Due to seller s in connection with acquisitions | 295 | 16,288 | ||||||
Humana Affiliate Provider clinic leasehold improvements | 2,864 | 1,025 | ||||||
Capital lease obligations entered into for property and equipment | 52 | $ | 482 | |||||
Equipment loan obligations entered into for property and equipment | 183 | 103 | ||||||
Issuance of security in exchange for balance due to seller s | — | 2,158 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Members' Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE - June 30, 2020 | — | $ | 261,718 | — | $ | — | — | $ | — | $ | — | $ | (132) | $ | (38,213) | $ | 392 | $ | 223,765 | |||||||||||||||||||||||||||||||||||||||||||||||||
Members distributions | — | (6,125) | — | — | — | — | — | — | — | — | (6,125) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 66 | — | — | — | — | — | — | — | — | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on notes receivable | — | — | — | — | — | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (11,117) | — | (11,117) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2020 | — | $ | 255,659 | — | $ | — | — | $ | — | $ | — | $ | (133) | $ | (49,330) | $ | 392 | $ | 206,588 |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Members' Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2020 | 14,629,533 | $ | 157,591 | — | $ | — | — | $ | — | $ | — | $ | (134) | $ | (99,913) | $ | — | $ | 57,544 | |||||||||||||||||||||||||||||||||||||||||||||||||
Retrospective application of reverse recapitalization | 292,214,129 | (157,560) | — | — | — | — | 157,560 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADJUSTED BALANCE - December 31, 2020 | 306,843,662 | $ | 31 | — | $ | — | — | $ | — | $ | 157,560 | $ | (134) | $ | (99,913) | $ | — | $ | 57,544 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss prior to business combination | — | — | — | — | — | — | — | — | (32,078) | — | (32,078) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination and PIPE financing | (306,843,662) | (31) | 166,243,491 | 17 | 306,843,662 | 31 | 169,093 | — | 85,663 | 518,320 | 773,093 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 12,148 | — | — | — | 12,148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | — | 4,178,147 | — | — | — | 61,500 | — | (840) | 840 | 61,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class B common stock for Class A common stock | — | — | 1,173,276 | — | (1,173,276) | — | 2,309 | — | (259) | (2,050) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of transactions affecting non-controlling interests | — | — | — | — | — | — | (39,550) | — | — | 39,550 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of notes receivable, net | — | — | — | — | — | — | — | 134 | — | — | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (5,120) | (9,208) | (14,328) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2021 | — | $ | — | 171,594,914 | $ | 17 | 305,670,386 | $ | 31 | $ | 363,060 | $ | — | $ | (52,547) | $ | 547,452 | $ | 858,013 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Members' Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Notes Receivable | Accumulated Deficit | Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE - December 31, 2019 | — | $ | 123,242 | — | $ | — | — | $ | — | $ | — | $ | (130) | $ | (25,041) | $ | 392 | $ | 98,463 | |||||||||||||||||||||||||||||||||||||||||||||||||
Members' contributions | — | 95,782 | — | — | — | — | — | — | — | — | 95,782 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 177 | — | — | — | — | — | — | — | — | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | 34,300 | — | — | — | — | — | — | — | — | 34,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for due to sellers balance | — | 2,158 | — | — | — | — | — | — | — | — | 2,158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on notes receivable | — | — | — | — | — | — | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (24,289) | — | (24,289) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2020 | — | $ | 255,659 | — | $ | — | — | $ | — | $ | — | $ | (133) | $ | (49,330) | $ | 392 | $ | 206,588 |
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net loss | $ | (46,403) | $ | (24,289) | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
Depreciation and amortization expense | 30,746 | 12,741 | ||||||||||||
Change in fair value of contingent consideration | (4,152) | — | ||||||||||||
Change in fair value of embedded derivative | — | 5,444 | ||||||||||||
Change in fair value of warrant liabilities | (24,565) | — | ||||||||||||
Loss on extinguishment of debt | 13,225 | — | ||||||||||||
Amortization of debt issuance costs | 7,653 | 3,851 | ||||||||||||
Write off of other receivables | — | 531 | ||||||||||||
Equity-based compensation | 12,148 | 177 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable, net (Related parties comprised $(92) and $0 as of September 30, 2021 and 2020, respectively) | (95,991) | (33,286) | ||||||||||||
Inventory | (856) | (484) | ||||||||||||
Other assets | (6,578) | 217 | ||||||||||||
Prepaid expenses and other current assets | (27,358) | 163 | ||||||||||||
Accounts payable and accrued expenses (Related parties comprised $(112) and $(52) as of September 30, 2021 and 2020, respectively) | 56,626 | 10,480 | ||||||||||||
Deferred rent (Related parties comprised $(92) and $0 as of September 30, 2021 and 2020, respectively) | 2,236 | 868 | ||||||||||||
Deferred revenue | 1,147 | — | ||||||||||||
Other liabilities | (9,376) | 2,544 | ||||||||||||
Net cash used in operating activities | (91,498) | (21,043) | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Purchase of property and equipment (Related parties comprised $5,697 and $5,358 as of September 30, 2021 and 2020, respectively) | (23,221) | (9,442) | ||||||||||||
Acquisitions of subsidiaries including non-compete intangibles, net of cash acquired | (1,068,661) | (205,325) | ||||||||||||
Payments to sellers | (24,148) | (38,748) | ||||||||||||
Other | — | (39) | ||||||||||||
Net cash used in investing activities | (1,116,030) | (253,554) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Contributions from member | — | 95,782 | ||||||||||||
Business combination and PIPE financing | 935,362 | — | ||||||||||||
Interest accrued due to sellers | 1,208 | 1,082 | ||||||||||||
Payments of long-term debt | (656,294) | (2,378) | ||||||||||||
Debt issuance costs | (17,689) | (5,655) | ||||||||||||
Proceeds from long-term debt | 1,120,000 | 184,096 | ||||||||||||
Proceeds from revolving credit facility | — | 9,700 | ||||||||||||
Repayments of revolving credit facility | — | (9,700) | ||||||||||||
Proceeds from insurance financing arrangements | 4,401 | 2,864 | ||||||||||||
Payments of principal on insurance financing arrangements | (3,939) | (2,388) | ||||||||||||
Repayments of equipment loans | (233) | (57) | ||||||||||||
Repayments of capital lease obligations | (316) | (518) | ||||||||||||
Settlement of note receivable, net | 134 | — | ||||||||||||
Net cash provided by financing activities | 1,382,634 | 272,828 | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 175,106 | (1,769) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 33,807 | 29,192 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 208,913 | $ | 27,423 | ||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid | 28,075 | 11,044 | ||||||||||||
Income taxes paid | 1,150 | — | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Issuance of securities by Cano Health, Inc. in connection with acquisitions | 61,500 | — | ||||||||||||
Issuance of securities in PCIH in connection with acquisitions | — | 34,300 | ||||||||||||
Contingent consideration in connection with acquisitions | 47,900 | — | ||||||||||||
Due to sellers in connection with acquisitions | 1,295 | 16,216 | ||||||||||||
Humana Affiliate Provider clinic leasehold improvements | 5,605 | — | ||||||||||||
Capital lease obligations entered into for property and equipment | 225 | — | ||||||||||||
Equipment loan obligations entered into for property and equipment | 1,013 | — | ||||||||||||
(in thousands) | Recapitalization | |||
Cash - Jaws’ trust and cash, net of redemptions | $ | 690,705 | ||
Cash - PIPE financing | 800,000 | |||
Less: transaction costs and advisory fees paid | (88,745 | ) | ||
Less: Distribution to PCIH shareholders | (466,598 | ) | ||
Net Business Combination and PIPE financing | 935,362 | |||
Plus: Non-cash net assets assumed | 96 | |||
Plus: Accrued transaction costs | 8,860 | |||
Less: Capitalized transaction costs | (8,167 | ) | ||
Less: Warrant liability assumed | (163,058 | ) | ||
Net contributions from Business Combination and PIPE financing | $ | 773,093 | ||
(in thousands) | Recapitalization | ||||
Cash - Jaws' trust and cash, net of redemptions | $ | 690,705 | |||
Cash - PIPE financing | 800,000 | ||||
Less: transaction costs and advisory fees paid | (88,745) | ||||
Less: Distribution to PCIH shareholders | (466,598) | ||||
Net Business Combination and PIPE financing | 935,362 | ||||
Plus: Non-cash net assets assumed | 96 | ||||
Plus: Accrued transaction costs | 8,860 | ||||
Less: Capitalized transaction costs | (8,167) | ||||
Less: Warrant liability assumed | (163,058) | ||||
Net contributions from Business Combination and PIPE financing | $ | 773,093 |
Class A common stock | Class B common stock | |||||||||||||
Common stock outstanding prior to Business Combination | 69,000,000 | — | ||||||||||||
Less: redemption of Jaws shares | (6,509) | — | ||||||||||||
Ordinary shares of Jaws | 68,993,491 | — | ||||||||||||
Jaws Sponsor Shares | 17,250,000 | — | ||||||||||||
Shares issued in PIPE financing | 80,000,000 | — | ||||||||||||
Business Combination and PIPE financing shares | 166,243,491 | — | ||||||||||||
Shares to PCIH shareholders | — | 306,843,662 | ||||||||||||
Total shares of common stock outstanding immediately after the Business Combination | 166,243,491 | 306,843,662 |
Class A common stock | Class B common stock | |||||||
Common stock outstanding prior to Business Combination | 69,000,000 | — | ||||||
Less: redemption of Jaws shares | (6,509 | ) | — | |||||
Ordinary shares of Jaws | 68,993,491 | — | ||||||
Jaws Sponsor Shares | 17,250,000 | — | ||||||
Shares issued in PIPE financing | 80,000,000 | — | ||||||
Business Combination and PIPE financing shares | 166,243,491 | — | ||||||
Shares to PCIH shareholders | — | 306,843,662 | ||||||
Total shares of common stock outstanding immediately after the Business Combination | 166,243,491 | 306,843,662 | ||||||
Three Months Ended June 30, | ||||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||
Revenue $ | Revenue % | Revenue $ | Revenue % | |||||||||||||
Capitated revenue: | ||||||||||||||||
Medicare | $ | 334,700 | 85.1 | % | $ | 129,385 | 75.6 | % | ||||||||
Other capitated revenue | 44,510 | 11.4 | % | 34,542 | 20.2 | % | ||||||||||
Total capitated revenue | 379,210 | 96.5 | % | 163,927 | 95.8 | % | ||||||||||
Fee-for-service | ||||||||||||||||
Fee-for-service | 4,389 | 1.1 | % | 1,246 | 0.7 | % | ||||||||||
Pharmacy | 8,217 | 2.1 | % | 5,718 | 3.3 | % | ||||||||||
Other | 1,347 | 0.3 | % | 315 | 0.2 | % | ||||||||||
Total fee-for-service | 13,953 | 3.5 | % | 7,279 | 4.2 | % | ||||||||||
Total revenue | $ | 393,163 | 100.0 | % | $ | 171,206 | 100.0 | % | ||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||||||||||||
Revenue $ | Revenue % | Revenue $ | Revenue % | |||||||||||||||||||||||
Capitated revenue: | ||||||||||||||||||||||||||
Medicare | $ | 447,250 | 84.9% | $ | 220,591 | 83.8 | % | |||||||||||||||||||
Other capitated revenue | 54,530 | 10.4% | 32,383 | 12.3 | % | |||||||||||||||||||||
Total capitated revenue | 501,780 | 95.3% | 252,974 | 96.1 | % | |||||||||||||||||||||
Fee-for-service and other revenue: | ||||||||||||||||||||||||||
Fee-for-service | 8,176 | 1.6% | 3,258 | 1.2 | % | |||||||||||||||||||||
Pharmacy | 10,096 | 1.8% | 6,154 | 2.4 | % | |||||||||||||||||||||
Other | 6,746 | 1.3% | 747 | 0.3 | % | |||||||||||||||||||||
Total fee-for-service and other revenue | 25,018 | 4.7% | 10,159 | 3.9 | % | |||||||||||||||||||||
Total revenue | $ | 526,798 | 100.0% | $ | 263,133 | 100.0 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||
Capitated revenue: | ||||||||||||||||||||||||||
Medicare | $ | 1,008,329 | 84.0 | % | $ | 455,986 | 80.0 | % | ||||||||||||||||||
Other capitated revenue | 139,712 | 11.6 | % | 88,631 | 15.6 | % | ||||||||||||||||||||
Total capitated revenue | 1,148,041 | 95.7 | % | 544,617 | 95.6 | % | ||||||||||||||||||||
Fee-for-service and other revenue: | ||||||||||||||||||||||||||
Fee-for-service | 17,113 | 1.4 | % | 6,269 | 1.1 | % | ||||||||||||||||||||
Pharmacy | 25,619 | 2.1 | % | 17,207 | 3.0 | % | ||||||||||||||||||||
Other | 9,323 | 0.8 | % | 1,544 | 0.3 | % | ||||||||||||||||||||
Total fee-for-service and other revenue | 52,055 | 4.3 | % | 25,020 | 4.4 | % | ||||||||||||||||||||
Total revenue | $ | 1,200,096 | 100.0 | % | $ | 569,637 | 100.0 | % |
Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||
Capitated revenue: | ||||||||||||||||
Medicare | $ | 561,079 | 83.3 | % | $ | 235,395 | 76.8 | % | ||||||||
Other capitated revenue | 85,182 | 12.7 | % | 56,248 | 18.4 | % | ||||||||||
Total capitated revenue | 646,261 | 96.0 | % | 291,643 | 95.2 | % | ||||||||||
Fee-for-service | ||||||||||||||||
Fee-for-service | 8,937 | 1.3 | % | 3,011 | 1.0 | % | ||||||||||
Pharmacy | 15,523 | 2.3 | % | 11,054 | 3.6 | % | ||||||||||
Other | 2,577 | 0.4 | % | 796 | 0.2 | % | ||||||||||
Total fee-for-service | 27,037 | 4.0 | % | 14,861 | 4.8 | % | ||||||||||
Total revenue | $ | 673,298 | 100.0 | % | $ | 306,504 | 100.0 | % | ||||||||
As of, | ||||||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Accounts receivable | $ | 242,086 | $ | 113,089 | ||||||||||
Medicare risk adjustment | 108,570 | 18,144 | ||||||||||||
Unpaid service provider costs | (127,012) | (54,524) | ||||||||||||
Accounts receivable, net | $ | 223,644 | $ | 76,709 |
As of, | ||||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Accounts receivable | $ | 130,641 | $ | 113,089 | ||||
Medicare risk adjustment | 82,030 | 18,144 | ||||||
Unpaid service provider costs | (80,840 | ) | (54,524 | ) | ||||
Accounts receivable, net | $ | 131,831 | $ | 76,709 | ||||
For the six months ended June 30, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Balance as at January 1, | $ | 54,524 | $ | 19,968 | ||||
Incurred related to: | ||||||||
Current year | 305,665 | 147,031 | ||||||
Prior years | (519 | ) | (5,429 | ) | ||||
305,146 | 141,602 | |||||||
Paid related to: | ||||||||
Current year | 224,825 | 79,331 | ||||||
Prior years | 54,005 | 41,418 | ||||||
278,830 | 120,749 | |||||||
Balance as at June 30, | $ | 80,840 | $ | 40,821 | ||||
For the nine months ended September 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||
Balance as at January 1, | $ | 54,524 | $ | 19,968 | ||||||||||
Incurred related to: | ||||||||||||||
Current year | 566,473 | 216,044 | ||||||||||||
Prior years | 3,526 | 793 | ||||||||||||
569,999 | 216,837 | |||||||||||||
Paid related to: | ||||||||||||||
Current year | 439,460 | 172,749 | ||||||||||||
Prior years | 58,051 | 20,761 | ||||||||||||
497,511 | 193,510 | |||||||||||||
Balance as at September 30, | $ | 127,012 | $ | 43,295 |
(in thousands) | ||||||||
Accounts receivable, net of unpaid service provider costs | $ | 6,641 | ||||||
Property and equipment, net | 1,283 | |||||||
Other assets | 142 | |||||||
Favorable leasehold interest | 110 | |||||||
Non-compete intangibles | 1,700 | |||||||
Trade name | 25,500 | |||||||
Payor relationships | 115,100 | |||||||
Goodwill | 151,188 | |||||||
Accounts payable and accrued expenses | (1,001) | |||||||
Total purchase price, including non-compete intangibles | $ | 300,663 |
(in thousands) | ||||
Accounts receivable, net of unpaid service provider costs | $ | 2,217 | ||
Inventory | 264 | |||
Property and equipment, net | 1,636 | |||
Payor relationships | 175,172 | |||
Non-compete intangibles | 45,191 | |||
Other acquired intangibles | 113,237 | |||
Other assets | 116 | |||
Goodwill | 273,427 | |||
Accounts payable and accrued expenses | (140 | ) | ||
Total purchase price, including non-compete intangibles | $ | 611,120 | ||
(in thousands) | ||||||||
Accounts receivable, net of unpaid service provider costs | $ | 2,217 | ||||||
Inventory | 264 | |||||||
Property and equipment, net | 1,636 | |||||||
Payor relationships | 175,172 | |||||||
Non-compete intangibles | 45,191 | |||||||
Other acquired intangibles | 113,237 | |||||||
Other assets | 116 | |||||||
Goodwill | 273,427 | |||||||
Accounts payable and accrued expenses | (140) | |||||||
Total purchase price, including non-compete intangibles | $ | 611,120 |
(in thousands) | ||||
Property and equipment | $ | 2,409 | ||
Non-compete intangibles | 1,022 | |||
Acquired intangibles | 117,014 | |||
Goodwill | 74,852 | |||
Other assets | 87 | |||
Total purchase price, including non-compete intangibles | $ | 195,384 | ||
(in thousands) | ||||||||
Property and equipment | $ | 2,409 | ||||||
Non-compete intangibles | 1,022 | |||||||
Acquired intangibles | 117,014 | |||||||
Goodwill | 74,852 | |||||||
Other assets | 87 | |||||||
Total purchase price, including non-compete intangibles | $ | 195,384 |
(in thousands) | ||||||||
Cash and cash equivalents | $ | 191 | ||||||
Accounts receivable | 486 | |||||||
Inventory | 155 | |||||||
Property and equipment | 1,518 | |||||||
Non-compete intangibles | 846 | |||||||
Acquired intangibles | 43,549 | |||||||
Goodwill | 13,738 | |||||||
Accounts payable | (274) | |||||||
Total purchase price, including non-compete intangibles | $ | 60,209 |
(in thousands) | ||||
Cash and cash equivalents | $ | 191 | ||
Accounts receivable | 486 | |||
Inventory | 155 | |||
Property and equipment | 1,518 | |||
Non-compete intangibles | 846 | |||
Acquired intangibles | 43,549 | |||
Goodwill | 13,738 | |||
Accounts payable | (274 | ) | ||
Total purchase price, including non-compete intangibles | $ | 60,209 | ||
Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||
Assets Acquired | ||||||||||||||
Accounts receivable | $ | 50,979 | $ | 486 | ||||||||||
Other assets | 2,050 | 433 | ||||||||||||
Property and equipment | 3,411 | 4,011 | ||||||||||||
Goodwill | 531,162 | 89,976 | ||||||||||||
Intangibles | 637,537 | 162,537 | ||||||||||||
Total assets acquired | 1,225,139 | 257,443 | ||||||||||||
Liabilities Assumed | ||||||||||||||
Due to sellers | 1,295 | 16,288 | ||||||||||||
Contingent consideration | 47,900 | — | ||||||||||||
Other liabilities | 45,783 | 1,530 | ||||||||||||
Total liabilities assumed | 94,978 | 17,818 | ||||||||||||
Net Assets Acquired | 1,130,161 | 239,625 | ||||||||||||
Issuance of Parent equity in connection with acquisitions | 61,500 | 34,300 | ||||||||||||
Acquisitions of subsidiaries, including non-compete intangibles, net of cash acquired | $ | 1,068,661 | $ | 205,325 |
Six Months Ended June 30, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Assets Acquired | ||||||||
Accounts receivable | $ | 185 | $ | 486 | ||||
Other assets | 2,601 | 433 | ||||||
Property and equipment | 2,128 | 4,012 | ||||||
Goodwill | 311,963 | 89,976 | ||||||
Intangibles | 372,210 | 162,536 | ||||||
Total assets acquired | 689,087 | 257,443 | ||||||
Liabilities Assumed | ||||||||
Due to sellers | 295 | 16,288 | ||||||
Contingent consideration | 9,600 | — | ||||||
Other liabilities | 1,616 | 1,530 | ||||||
Total liabilities assumed | 11,511 | 17,818 | ||||||
Net Assets Acquired | 677,576 | 239,625 | ||||||
Issuance of Parent equity in connection with acquisitions | 60,000 | 34,300 | ||||||
Acquisitions of subsidiaries, including non-compete intangibles, net of cash acquired | $ | 617,576 | $ | 205,325 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenue | $ | 526,798 | $ | 350,976 | $ | 1,354,547 | $ | 979,355 | |||||||||||||||
Net loss | $ | (40,883) | $ | (14,398) | $ | (53,592) | $ | (8,566) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 446,873 | $ | 281,597 | $ | 815,143 | $ | 582,482 | ||||||||
Net income (loss) | $ | 15,940 | $ | 7,821 | $ | 22,096 | $ | 21,073 | ||||||||
As of | ||||||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||||
Assets Classification | Useful Life | |||||||||
Leasehold improvements | Lesser of lease term or 15 years | $ | 29,779 | $ | 25,021 | |||||
Machinery and equipment | 3-12 years | 11,012 | 8,288 | |||||||
Automobiles | 3-5 years | 6,546 | 4,900 | |||||||
Computer and equipment | 5 years | 5,376 | 4,475 | |||||||
Furniture and equipment | 3-7 years | 2,876 | 2,390 | |||||||
Construction in progress | 6,582 | 4,155 | ||||||||
Total | 62,171 | 49,229 | ||||||||
Less: Accumulated depreciation and amortization | (15,813 | ) | (11,103 | ) | ||||||
Property and equipment, net | $ | 46,358 | $ | 38,126 | ||||||
As of | |||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||
Assets Classification | Useful Life | 2021 | 2020 | ||||||||||||||
Leasehold improvements | Lesser of lease term or 15 years | $ | 33,288 | $ | 25,021 | ||||||||||||
Machinery and equipment | 3-12 years | 14,403 | 8,288 | ||||||||||||||
Automobiles | 3-5 years | 6,679 | 4,900 | ||||||||||||||
Computer and equipment | 5 years | 5,950 | 4,475 | ||||||||||||||
Furniture and equipment | 3-7 years | 3,242 | 2,390 | ||||||||||||||
Construction in progress | 19,057 | 4,155 | |||||||||||||||
Total | 82,619 | 49,229 | |||||||||||||||
Less: Accumulated depreciation and amortization | (18,463) | (11,103) | |||||||||||||||
Property and equipment, net | $ | 64,156 | $ | 38,126 |
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Intangibles: | ||||||||||||
Trade names | $ | 1,409 | $ | (708 | ) | $ | 701 | |||||
Brand | 141,073 | (3,618 | ) | 137,455 | ||||||||
Non-compete | 54,061 | (4,791 | ) | 49,270 | ||||||||
Customer relationships | 880 | (159 | ) | 721 | ||||||||
Payor relationships | 412,958 | (17,773 | ) | 395,185 | ||||||||
Provider relationships | 6,988 | (820 | ) | 6,168 | ||||||||
Total intangibles, net | $ | 617,369 | $ | (27,869 | ) | $ | 589,500 | |||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Intangibles: | ||||||||||||||||||||
Trade names | $ | 1,409 | $ | (747) | $ | 662 | ||||||||||||||
Brand | 183,217 | (6,286) | 176,931 | |||||||||||||||||
Non-compete | 75,626 | (8,270) | 67,356 | |||||||||||||||||
Customer relationships | 880 | (171) | 709 | |||||||||||||||||
Payor relationships | 609,322 | (25,057) | 584,265 | |||||||||||||||||
Provider relationships | 12,242 | (1,573) | 10,669 | |||||||||||||||||
Total intangibles, net | $ | 882,696 | $ | (42,104) | $ | 840,592 |
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Intangibles: | ||||||||||||
Trade names | $ | 1,409 | $ | (630 | ) | $ | 779 | |||||
Brand | 29,486 | (2,171 | ) | 27,315 | ||||||||
Non-compete | 7,733 | (3,373 | ) | 4,360 | ||||||||
Customer relationships | 880 | (135 | ) | 745 | ||||||||
Payor relationships | 201,530 | (11,960 | ) | 189,570 | ||||||||
Provider relationships | 4,119 | (533 | ) | 3,586 | ||||||||
Total intangibles, net | $ | 245,157 | $ | (18,802 | ) | $ | 226,355 | |||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Intangibles: | ||||||||||||||||||||
Trade names | $ | 1,409 | $ | (630) | $ | 779 | ||||||||||||||
Brand | 29,486 | (2,171) | 27,315 | |||||||||||||||||
Non-compete | 7,733 | (3,373) | 4,360 | |||||||||||||||||
Customer relationships | 880 | (135) | 745 | |||||||||||||||||
Payor relationships | 201,530 | (11,960) | 189,570 | |||||||||||||||||
Provider relationships | 4,119 | (533) | 3,586 | |||||||||||||||||
Total intangibles, net | $ | 245,157 | $ | (18,802) | $ | 226,355 |
Year ending December 31, | Amount (in thousands) | |||
Remainder of 2021 | $ | 21,085 | ||
2022 | 41,278 | |||
2023 | 39,504 | |||
2024 | 38,305 | |||
2025 | 37,900 | |||
Thereafter | 411,428 | |||
Total | $ | 589,500 | ||
Year ending December 31, | Amount (in thousands) | |||||||
Remainder of 2021 | $ | 15,075 | ||||||
2022 | 59,423 | |||||||
2023 | 57,585 | |||||||
2024 | 55,644 | |||||||
2025 | 54,218 | |||||||
Thereafter | 598,647 | |||||||
Total | $ | 840,592 |
Year ending December 31, | Amount (in thousands) | |||
Remainder of 2021 | $ | 601 | ||
2022 | 1,110 | |||
2023 | 778 | |||
2024 | 472 | |||
2025 | 36 | |||
Total minimum lease payments | 2,997 | |||
Less: amount representing interest | (352 | ) | ||
2,645 | ||||
Less: current maturities | (978 | ) | ||
Total | $ | 1,667 | ||
Year ending December 31, | Amount (in thousands) | |||||||
Remainder of 2021 | $ | 307 | ||||||
2022 | 1,151 | |||||||
2023 | 819 | |||||||
2024 | 514 | |||||||
2025 | 76 | |||||||
2026 | 25 | |||||||
Total minimum lease payments | 2,892 | |||||||
Less: amount representing interest | (327) | |||||||
Total capital lease obligations | 2,565 | |||||||
Less: current maturities | (1,006) | |||||||
Total long-term capital lease obligations | $ | 1,559 |
Year ending December 31, | Amount (in thousands) | |||
2021 | $ | 1,038 | ||
2022 | 919 | |||
2023 | 586 | |||
2024 | 271 | |||
Total minimum lease payments | 2,814 | |||
Less: amount representing interest | (358 | ) | ||
2,456 | ||||
Less: current maturities | (876 | ) | ||
$ | 1,580 | |||
Year ending December 31, | Amount (in thousands) | |||||||
2021 | $ | 1,038 | ||||||
2022 | 919 | |||||||
2023 | 586 | |||||||
2024 | 271 | |||||||
Total minimum lease payments | 2,814 | |||||||
Less: amount representing interest | (358) | |||||||
Total capital lease obligations | 2,456 | |||||||
Less: current maturities | (876) | |||||||
Total long-term capital lease obligations | $ | 1,580 |
As of, | ||||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Notes payable bearing interest at 17.2%; due July 2022, secured by certain property and equipment | $ | 36 | $ | 51 | ||||
Notes payable bearing interest at 12.5%, 12.8%, and 11.0%; all due June 2023, all secured by certain property and equipment | 47 | 82 | ||||||
Notes payable bearing interest at 10.68%; due June 2023, secured by certain property and equipment | 67 | 58 | ||||||
Notes payable bearing interest at 7.24%; due April 2025, secured by certain property and equipment | 82 | 92 | ||||||
Notes payable bearing interest at 4.15%; due December 2024, secured by certain property and equipment | 800 | 904 | ||||||
Other equipment financing | 183 | — | ||||||
1,215 | 1,187 | |||||||
Less: Current portion | (324 | ) | (314 | ) | ||||
$ | 891 | $ | 873 | |||||
As of, | ||||||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Notes payable bearing interest at 17.2%; due July 2022, secured by certain property and equipment | $ | 28 | $ | 51 | ||||||||||
Notes payable bearing interest at 12.5%, 12.8%, and 11.0%; all due June 2023, all secured by certain property and equipment | 41 | 82 | ||||||||||||
Notes payable bearing interest at 10.7%; due June 2023, secured by certain property and equipment | 60 | 58 | ||||||||||||
Notes payable bearing interest at 7.2%; due April 2025, secured by certain property and equipment | 78 | 92 | ||||||||||||
Notes payable bearing interest at 4.2%; due December 2024, secured by certain property and equipment | 746 | 904 | ||||||||||||
Notes payable bearing interest at 3.4%; due March 2026, secured by certain property and equipment | 1,014 | — | ||||||||||||
Total equipment loans | 1,967 | 1,187 | ||||||||||||
Less: Current portion | (513) | (314) | ||||||||||||
Total equipment loans, net of current portion | $ | 1,454 | $ | 873 |
(in thousands) | For the three months ended September 30, 2021 | |||||||
Balance as at June 30, 2021 | $ | 5,936 | ||||||
Increases due to amounts collected | 990 | |||||||
Revenues recognized from current period increases | (413) | |||||||
Balance as at September 30, 2021 | $ | 6,513 | ||||||
(in thousands) | For the nine months ended September 30, 2021 | |||||||
Balance as at January 1, 2021 | $ | 5,265 | ||||||
Increases due to amounts collected | 2,290 | |||||||
Revenues recognized from current period increases | (1,042) | |||||||
Balance as at September 30, 2021 | $ | 6,513 |
(in thousands) | For the three months ended June 30, 2021 | |||
Balance as at March 31, 2021 | $ | 6,264 | ||
Increases due to amounts collected | — | |||
Revenues recognized from current period increases | (328 | ) | ||
Balance as at June 30, 2021 | $ | 5,936 | ||
(in thousands) | For the six months ended June 30, 2021 | |||
Balance as at January 1, 2021 | $ | 5,265 | ||
Increases due to amounts collected | 1,300 | |||
Revenues recognized from current period increases | (629 | ) | ||
Balance as at June 30, 2021 | $ | 5,936 | ||
Long-Term Debt | As of, | |||||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Term loan 3 | $ | 252,531 | $ | 480,000 | ||||||||||
Term loan 4 | 293,525 | — | ||||||||||||
Term loan 5 | 100,000 | — | ||||||||||||
Senior Notes | 300,000 | — | ||||||||||||
Less: Current portion of notes payable | (6,493) | (4,800) | ||||||||||||
939,563 | 475,200 | |||||||||||||
Less: debt issuance costs | (23,452) | (18,455) | ||||||||||||
Notes payable, net of current portion | $ | 916,111 | $ | 456,745 |
Long-Term Debt | As of, | |||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Term loan 3 | $ | 168,174 | $ | 480,000 | ||||
Term loan 4 | 294,263 | — | ||||||
Delayed draw term loans | 84,991 | — | ||||||
Less: Current portion of notes payable | (5,488 | ) | (4,800 | ) | ||||
541,940 | 475,200 | |||||||
Less: debt issuance costs | (16,110 | ) | (18,455 | ) | ||||
Notes payable, net of current portion | $ | 525,830 | $ | 456,745 | ||||
(in millions) | ||||||||
Year ending December 31, | Amount | |||||||
Remainder of 2021 | $ | 1,623 | ||||||
2022 | 6,493 | |||||||
2023 | 6,493 | |||||||
2024 | 6,493 | |||||||
2025 | 6,493 | |||||||
Thereafter | 918,461 | |||||||
Total | $ | 946,056 |
(in thousands) | ||||
Year ending December 31, | Amount | |||
Remainder of 2021 | $ | 2,744 | ||
2022 | 5,488 | |||
2023 | 5,488 | |||
2024 | 5,488 | |||
2025 | 5,488 | |||
Thereafter | 522,732 | |||
Total | $ | 547,428 | ||
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||||
Range as of | |||||||||||||||||
Unobservable Input | June 1, 2020 | September 30, 2020 | |||||||||||||||
Probability of change of control | 90% | 80% | |||||||||||||||
Probability of issuance of debt | 5% | 15% | |||||||||||||||
Expected date of event | Fourth Quarter 2020 | Fourth Quarter 2020 | |||||||||||||||
Discount rate | 39% | 38% |
Range as of | ||||||||
Unobservable Input | June 1, 2020 | June 30, 2020 | ||||||
Probability of change of control | 90 | % | 90 | % | ||||
Probability of issuance of debt | 5 | % | 5 | % | ||||
Expected date of event | Fourth Quarter 2020 | Fourth Quarter 2020 | ||||||
Discount rate | 39 | % | 38 | % |
As of | ||||||||
Unobservable Input | June 3, 2021 | June 30, 2021 | ||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 14.75 | $ | 12.10 | ||||
Term (years) | 5.0 | 4.9 | ||||||
Volatility | 37.1 | % | 44.8 | % | ||||
Rick free interest rate | 0.8 | % | 0.9 | % | ||||
Dividend yield | 0None | 0None | ||||||
Public warrant price | $ | 4.85 | $ | 3.69 |
As of | ||||||||||||||||||||
Unobservable Input | June 3, 2021 | September 30, 2021 | ||||||||||||||||||
Exercise price | $11.50 | $11.50 | ||||||||||||||||||
Stock price | $14.75 | $12.68 | ||||||||||||||||||
Term (years) | 5.0 | 4.7 | ||||||||||||||||||
Volatility | 37.1% | —% | ||||||||||||||||||
Risk free interest rate | 0.8% | 0.9% | ||||||||||||||||||
Dividend yield | NaN | NaN | ||||||||||||||||||
Public warrant price | NaN | $4.13 |
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||
Contingent consideration | $ | 12,347 | $ | — | $ | — | $ | 12,347 | ||||||||
Public Warrant Liabilities | 84,870 | 84,870 | — | — | ||||||||||||
Private Placement Warrant Liabilities | 38,973 | — | — | 38,973 | ||||||||||||
Total Liabilities | $ | 136,190 | $ | 84,870 | $ | — | $ | 51,320 | ||||||||
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level��2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||
Contingent consideration | $ | 5,172 | $ | — | $ | — | $ | 5,172 | ||||||||
Total Liabilities | $ | 5,172 | $ | — | $ | — | $ | 5,172 | ||||||||
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Contingent consideration | $ | 46,706 | $ | — | $ | — | $ | 46,706 | ||||||||||||||||||||||||||||||
Public Warrant Liabilities | 94,990 | 94,990 | — | — | ||||||||||||||||||||||||||||||||||
Private Placement Warrant Liabilities | 43,503 | — | — | 43,503 | ||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 185,199 | $ | 94,990 | $ | — | $ | 90,209 |
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Contingent consideration | $ | 5,172 | $ | — | $ | — | $ | 5,172 | ||||||||||||||||||||||||||||||
Total Liabilities | $ | 5,172 | $ | — | $ | — | $ | 5,172 |
Fair Value Measurements For the three months ended June 30, | ||||||||
2021 | 2020 | |||||||
Opening Balance as at April 1, | $ | 5,457 | $ | 23,429 | ||||
Embedded derivative recognized under Term Loan 2 | — | 51,328 | ||||||
Change in fair value of embedded derivative | — | 306 | ||||||
Change in fair value of contingent consideration | (496 | ) | — | |||||
Contingent consideration recognized due to acquisitions | — | 2,695 | ||||||
Warrants acquired in the Business Combination | 163,058 | — | ||||||
Change in fair value of warrants | (39,215 | ) | — | |||||
Contingent consideration settled through equity | 9,600 | (1,958 | ) | |||||
Contingent consideration payments | (2,214 | ) | — | |||||
Closing Balance as at June 30, | $ | 136,190 | $ | 75,800 | ||||
Fair Value Measurements | ||||||||||||||
For the three months ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Opening balance as at July 1, | $ | 136,190 | $ | 75,800 | ||||||||||
Change in fair value of embedded derivative | — | 5,138 | ||||||||||||
Change in fair value of contingent consideration | (3,940) | — | ||||||||||||
Contingent consideration recognized due to acquisitions | 38,300 | — | ||||||||||||
Change in fair value of warrants | 14,649 | — | ||||||||||||
Contingent consideration reclassified to due to seller | — | (16,059) | ||||||||||||
Contingent consideration payments | — | (3,000) | ||||||||||||
Closing balance as at September 30, | $ | 185,199 | $ | 61,879 | ||||||||||
Fair Value Measurements | ||||||||||||||
For the nine months ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Opening balance as at January 1, | $ | 5,172 | $ | 23,429 | ||||||||||
Embedded derivative recognized under Term Loan 2 | — | 51,328 | ||||||||||||
Change in fair value of embedded derivative | — | 5,444 | ||||||||||||
Change in fair value of contingent consideration | (4,152) | — | ||||||||||||
Contingent consideration recognized due to acquisitions | 47,900 | 2,695 | ||||||||||||
Warrants acquired in the Business Combination | 163,058 | — | ||||||||||||
Change in fair value of warrants | (24,565) | — | ||||||||||||
Contingent consideration reclassified to due to seller | — | (16,059) | ||||||||||||
Contingent consideration settled through equity | — | (1,958) | ||||||||||||
Contingent consideration payments | (2,214) | (3,000) | ||||||||||||
Closing balance as at September 30, | $ | 185,199 | $ | 61,879 |
Fair Value Measurements For the six months ended June 30, | ||||||||
2021 | 2020 | |||||||
Opening Balance as at January 1, | $ | 5,172 | $ | 23,429 | ||||
Embedded derivative recognized under Term Loan 2 | — | 51,328 | ||||||
Change in fair value of embedded derivative | — | 306 | ||||||
Change in fair value of contingent consideration | (211 | ) | — | |||||
Contingent consideration recognized due to acquisitions | — | 2,695 | ||||||
Warrants acquired in the Business Combination | 163,058 | — | ||||||
Change in fair value of warrants | (39,215 | ) | — | |||||
Contingent consideration settled through equity | 9,600 | (1,958 | ) | |||||
Contingent consideration payments | (2,214 | ) | — | |||||
Closing Balance as at June 30, | $ | 136,190 | $ | 75,800 | ||||
12. VARIABLE INTEREST ENTITIES |
As of, | ||||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Total Assets | $ | 11,979 | $ | 8,182 | ||||
Total Liabilities | $ | 17,559 | $ | 12,371 | ||||
As of, | ||||||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Total Assets | $ | 30,483 | $ | 8,182 | ||||||||||
Total Liabilities | $ | 23,234 | $ | 12,371 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Total revenue | $ | 12,321 | $ | 79 | $ | 14,621 | $ | 79 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | 8,582 | — | 8,582 | — | ||||||||||||||||||||||
Direct patient expense | 2,413 | 295 | 5,203 | 295 | ||||||||||||||||||||||
Selling, general and administrative expenses | 7,277 | 1,125 | 12,540 | 1,324 | ||||||||||||||||||||||
Depreciation and amortization expense | 353 | — | 860 | — | ||||||||||||||||||||||
Total operating expenses | 18,625 | 1,420 | 27,185 | 1,619 | ||||||||||||||||||||||
Net loss | $ | (6,304) | $ | (1,341) | $ | (12,564) | $ | (1,540) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total revenue | $ | 1,309 | $ | 0 | $ | 2,300 | $ | 0 | ||||||||
Operating expenses: | ||||||||||||||||
Direct patient expense | 1,585 | 0 | 2,790 | 0 | ||||||||||||
Selling, general and administrative expenses | 2,950 | 176 | 5,263 | 199 | ||||||||||||
Depreciation and amortization expense | 260 | 0 | 507 | 0 | ||||||||||||
Total operating expenses | 4,795 | 176 | 8,560 | 199 | ||||||||||||
Net loss | $ | (3,486 | ) | $ | (176 | ) | $ | (6,260 | ) | $ | (199 | ) | ||||
14. EQUITY-BASED COMPENSATION |
As of June 3, 2021 | |||||
Closing Cano share price as of valuation date | $ | 14.75 | |||
Risk-free interest rate | 1.68% - 2.0% | ||||
Expected volatility | 45.0% | ||||
Expected dividend yield | 0.0% | ||||
Expected cost of equity | 9.0% |
As of June 3, 2021 | ||||
Closing Cano share price as of valuation date | $ | 14.75 | ||
Risk-free interest rate | 1.68% - 2.01 | % | ||
Expected volatility | 45.0 | % | ||
Expected dividend yield | 0.0 | % | ||
Expected cost of equity | 9.0 | % |
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Balance, January 1, 2021 | — | — | ||||||||||||
Granted | 12,831,184 | $4.23 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeitures | (97,486) | 4.23 | ||||||||||||
Balance, September 30, 2021 | 12,733,698 | $4.23 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Balance, January 1, 2021 | 0 | 0 | ||||||
Granted | 12,806,407 | $ | 4.23 | |||||
Vested | 0 | 0 | ||||||
Forfeitures | 0 | 0 | ||||||
Balance, June 30, 2021 | 12,806,407 | $ | 4.23 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Balance, January 1, 2021 | 0 | 0 | ||||||
Granted | 2,590,472 | $ | 14.75 | |||||
Vested | 0 | 0 | ||||||
Forfeitures | 0 | 0 | ||||||
Balance, June 30, 2021 | 2,590,472 | $ | 14.75 |
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Balance, January 1, 2021 | — | — | ||||||||||||
Granted | 4,840,444 | $14.46 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeitures | (16,750) | 14.75 | ||||||||||||
Balance, September 30, 2021 | 4,823,694 | $14.46 |
Year ending December 31, | Amount (in thousands) | |||||||
Remainder of 2021 | $ | 3,876 | ||||||
2022 | 13,987 | |||||||
2023 | 12,763 | |||||||
2024 | 11,125 | |||||||
2025 | 9,451 | |||||||
Thereafter | 27,908 | |||||||
Total | $ | 79,110 |
Year ending December 31 , | Amount (in thousands) | |||
Remainder of 2021 | $ | 6,120 | ||
2022 | 12,577 | |||
2023 | 11,210 | |||
2024 | 9,589 | |||
2025 | 8,005 | |||
Thereafter | 22,436 | |||
Total | $ | 69,937 | ||
CANO HEALTH, INC. AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Jurisdictional earnings: | ||||||||||||||||||||||||||
U.S. losses | $ | (41,206) | $ | (11,760) | $ | (46,053) | $ | (25,456) | ||||||||||||||||||
Foreign income (losses) | 870 | 969 | (1,112) | 1,461 | ||||||||||||||||||||||
Total losses | (40,336) | (10,791) | (47,165) | (23,995) | ||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||
U.S. Federal | — | — | — | — | ||||||||||||||||||||||
U.S. State and local | — | (29) | — | (26) | ||||||||||||||||||||||
Foreign | — | (251) | — | (222) | ||||||||||||||||||||||
Total current tax expense | — | (280) | — | (248) | ||||||||||||||||||||||
Deferred: | ||||||||||||||||||||||||||
U.S. Federal | — | — | — | — | ||||||||||||||||||||||
U.S. State and local | (221) | — | 282 | — | ||||||||||||||||||||||
Foreign | (326) | (46) | 480 | (46) | ||||||||||||||||||||||
Total deferred tax benefit (expense) | (547) | (46) | 762 | (46) | ||||||||||||||||||||||
Total tax benefit (expense) | $ | (547) | $ | (326) | $ | 762 | $ | (294) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Jurisdictional earnings: | ||||||||||||||||
U.S . income (losses) | $ | 6,255 | $ | (10,959 | ) | $ | (4,851 | ) | $ | (13,128 | ) | |||||
Foreign losses | (3,331 | ) | (46 | ) | (1,981 | ) | (76 | ) | ||||||||
Total income (losses) | 2,924 | (11,005 | ) | (6,832 | ) | (13,204 | ) | |||||||||
Current: | ||||||||||||||||
U.S . Federal | 0 | 0 | 0 | 0 | ||||||||||||
U.S. State and local | 48 | 2 | 0 | 3 | ||||||||||||
Foreign | 591 | 17 | 0 | 29 | ||||||||||||
Total current tax benefit | 639 | 19 | 0 | 32 | ||||||||||||
Deferred: | ||||||||||||||||
U.S . Federal | 0 | 0 | 0 | 0 | ||||||||||||
U.S. State and local | 502 | 0 | 502 | 0 | ||||||||||||
Foreign | 882 | 0 | 807 | 0 | ||||||||||||
Total deferred tax benefit | 1,384 | 0 | 1,309 | 0 | ||||||||||||
Total tax benefit | $ | 2,023 | $ | 19 | $ | 1,309 | $ | 32 | ||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||
(in thousands, except shares and per share data) | 2021 | 2020 | 2021 | 2020 | (in thousands, except shares and per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Numerator: | Numerator: | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 4,947 | $ | (10,986 | ) | $ | (5,523 | ) | $ | (13,172 | ) | ||||||||||||||||||||||||||||
Net loss | Net loss | $ | (40,883) | $ | (11,117) | $ | (46,403) | $ | (24,289) | ||||||||||||||||||||||||||||||
Less: net loss attributable to non-controlling interests | (4,533 | ) | 0 | (15,003 | ) | 0 | Less: net loss attributable to non-controlling interests | (26,246) | — | (41,283) | — | ||||||||||||||||||||||||||||
Net income (loss) attributable to Class A common s tock holders | 9,480 | 0 | 9,480 | 0 | |||||||||||||||||||||||||||||||||||
Dilutive effect of warrants on net income common | (13,999 | ) | N/A | (13,999 | ) | N/A | |||||||||||||||||||||||||||||||||
Net income attributable to Class A common stockholders - Diluted | (4,519 | ) | N/A | (4,519 | ) | N/A | |||||||||||||||||||||||||||||||||
Net loss attributable to Class A common stockholders | Net loss attributable to Class A common stockholders | (14,637) | — | (5,120) | — | ||||||||||||||||||||||||||||||||||
Dilutive effect of warrants on net loss to Class A common stockholders | Dilutive effect of warrants on net loss to Class A common stockholders | — | N/A | (8,780) | N/A | ||||||||||||||||||||||||||||||||||
Net loss attributable to Class A common stockholders - Diluted | Net loss attributable to Class A common stockholders - Diluted | (14,637) | N/A | (13,900) | N/A | ||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share denominator: | Basic and Diluted Earnings Per Share denominator: | ||||||||||||||||||||||||||||||||||||||
Weighted average common stock outstanding - basic | 167,134,853 | N/A | 166,691,634 | N/A | Weighted average common stock outstanding - basic | 170,871,429 | N/A | 168,100,210 | N/A | ||||||||||||||||||||||||||||||
Net income per share - basic | $ | 0.06 | N/A | $ | 0.06 | N/A | |||||||||||||||||||||||||||||||||
Net loss per share - basic | Net loss per share - basic | $ | (0.09) | N/A | $ | (0.03) | N/A | ||||||||||||||||||||||||||||||||
Diluted Earnings Per Share: | Diluted Earnings Per Share: | ||||||||||||||||||||||||||||||||||||||
Dilutive effect of warrants on weighted average common | 1,749,462 | N/A | 879,564 | N/A | Dilutive effect of warrants on weighted average common stock outstanding | — | N/A | 1,212,048 | N/A | ||||||||||||||||||||||||||||||
Weighted average common stock outstanding - diluted | 168,884,315 | N/A | 167,571,198 | N/A | Weighted average common stock outstanding - diluted | 170,871,429 | N/A | 169,312,258 | N/A | ||||||||||||||||||||||||||||||
Net | $ | (0.03 | ) | N/A | $ | (0.03 | ) | N/A | Net loss per share - diluted | $ | (0.09) | N/A | $ | (0.08) | N/A | ||||||||||||||||||||||||
June | ||||||||
Public Warrants | 23,000,000 | |||||||
Private Placement Warrants | 10,533,333 | |||||||
Restricted Stock Units | 4,823,694 | |||||||
Stock Options | 12,733,698 | |||||||
Contingent Shares Issued in Connection with Acquisitions | 2,720,966 | |||||||
Potential Common Stock | 53,811,691 | |||||||
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Members | 156,038 | 105,707 | 99,276 | |||||||||
Owned medical centers | 90 | 71 | 61 |
September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||
Members | 210,663 | 105,707 | 102,767 | ||||||||
Owned medical centers | 113 | 71 | 71 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Capitated revenue | $ | 501,780 | $ | 252,974 | $ | 1,148,041 | $ | 544,617 | ||||||||||||||||||
Fee-for-service and other revenue | 25,018 | 10,159 | 52,055 | 25,020 | ||||||||||||||||||||||
Total revenue | 526,798 | 263,133 | 1,200,096 | 569,637 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | 379,316 | 184,926 | 866,177 | 382,279 | ||||||||||||||||||||||
Direct patient expense | 57,708 | 31,108 | 135,777 | 71,441 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 75,926 | 27,391 | 157,348 | 70,234 | ||||||||||||||||||||||
Depreciation and amortization expense | 16,955 | 5,379 | 30,746 | 12,741 | ||||||||||||||||||||||
Transaction costs and other | 6,528 | 7,716 | 32,140 | 29,854 | ||||||||||||||||||||||
Total operating expenses | 536,433 | 256,520 | 1,222,188 | 566,549 | ||||||||||||||||||||||
Income (loss) from operations | (9,635) | 6,613 | (22,092) | 3,088 | ||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||
Interest expense | (16,023) | (12,346) | (36,363) | (21,728) | ||||||||||||||||||||||
Interest income | 1 | 80 | 4 | 239 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | — | (13,225) | — | ||||||||||||||||||||||
Change in fair value of embedded derivative | — | (5,138) | — | (5,444) | ||||||||||||||||||||||
Change in fair value of warrant liabilities | (14,650) | — | 24,565 | — | ||||||||||||||||||||||
Other expenses | (29) | — | (54) | (150) | ||||||||||||||||||||||
Total other income (expense) | (30,701) | (17,404) | (25,073) | (27,083) | ||||||||||||||||||||||
Net loss before income tax benefit (expenses) | (40,336) | (10,791) | (47,165) | (23,995) | ||||||||||||||||||||||
Income tax benefit (expense) | (547) | (326) | 762 | (294) | ||||||||||||||||||||||
Net loss | (40,883) | (11,117) | (46,403) | (24,289) | ||||||||||||||||||||||
Net loss attributable to non-controlling interests | (26,246) | — | (41,283) | — | ||||||||||||||||||||||
Net loss attributable to Class A common stockholders | $ | (14,637) | $ | — | $ | (5,120) | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue: | ||||||||||||||||
Capitated revenue | $ | 379,210 | $ | 163,927 | $ | 646,261 | $ | 291,643 | ||||||||
Fee-for-service | 13,953 | 7,279 | 27,037 | 14,861 | ||||||||||||
Total revenue | 393,163 | 171,206 | 673,298 | 306,504 | ||||||||||||
Operating expenses: | ||||||||||||||||
Third-party medical costs | 291,816 | 112,040 | 486,862 | 197,353 | ||||||||||||
Direct patient expense | 43,782 | 22,554 | 78,069 | 40,333 | ||||||||||||
Selling, general, and administrative expenses | 46,574 | 21,859 | 81,422 | 42,843 | ||||||||||||
Depreciation and amortization expense | 7,945 | 3,977 | 13,791 | 7,362 | ||||||||||||
Transaction costs and other | 16,374 | 15,687 | 25,613 | 22,138 | ||||||||||||
Total operating expenses | 406,491 | 176,117 | 685,757 | 310,029 | ||||||||||||
Loss from operations | (13,328 | ) | (4,911 | ) | (12,459 | ) | (3,525 | ) | ||||||||
Other income and expense: | ||||||||||||||||
Interest expense | (9,714 | ) | (5,717 | ) | (20,340 | ) | (9,382 | ) | ||||||||
Interest income | 1 | 79 | 2 | 159 | ||||||||||||
Loss on extinguishment of debt | (13,225 | ) | — | (13,225 | ) | — | ||||||||||
Change in fair value of embedded derivative | — | (306 | ) | — | (306 | ) | ||||||||||
Change in fair value of warrant liabilities | 39,215 | — | 39,215 | — | ||||||||||||
Other expenses | (25 | ) | (150 | ) | (25 | ) | (150 | ) | ||||||||
Total other income (expense) | 16,252 | (6,094 | ) | 5,627 | (9,679 | ) | ||||||||||
�� | ||||||||||||||||
Net income (loss) before income tax benefit | 2,924 | (11,005 | ) | (6,832 | ) | (13,204 | ) | |||||||||
Income tax benefit | 2,023 | 19 | 1,309 | 32 | ||||||||||||
Net income (loss) | 4,947 | (10,986 | ) | (5,523 | ) | (13,172 | ) | |||||||||
Net income (loss) attributable to non-controlling interests | (4,533 | ) | — | (15,003 | ) | — | ||||||||||
Net income (loss) attributable to Cano Health, Inc. | $ | 9,480 | $ | — | $ | 9,480 | $ | — | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(% of revenue) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue: | ||||||||||||||||
Capitated revenue | 96.5 | % | 95.7 | % | 96.0 | % | 95.2 | % | ||||||||
Fee-for-service | 3.5 | % | 4.3 | % | 4.0 | % | 4.8 | % | ||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Operating expenses: | ||||||||||||||||
Third-party medical costs | 74.2 | % | 65.4 | % | 72.3 | % | 64.4 | % | ||||||||
Direct patient expense | 11.1 | % | 13.2 | % | 11.6 | % | 13.2 | % | ||||||||
Selling, general, and administrative expenses | 11.8 | % | 12.8 | % | 12.1 | % | 14.0 | % | ||||||||
Depreciation and amortization expense | 2.0 | % | 2.3 | % | 2.0 | % | 2.4 | % | ||||||||
Transaction costs and other | 4.2 | % | 9.2 | % | 3.8 | % | 7.2 | % | ||||||||
Total operating expenses | 103.3 | % | 102.9 | % | 101.8 | % | 101.2 | % | ||||||||
Loss from operations | (3.3 | )% | (2.9 | )% | (1.8 | )% | (1.2 | )% | ||||||||
Other income and expense: | ||||||||||||||||
Interest expense | (2.5 | )% | (3.3 | )% | (3.0 | )% | (3.1 | )% | ||||||||
Interest income | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||
Loss on extinguishment of debt | (3.4 | )% | 0.0 | % | (2.0 | )% | 0.0 | % | ||||||||
Change in fair value of embedded derivative | 0.0 | % | (0.2 | )% | 0.0 | % | (0.1 | )% | ||||||||
Change in fair value of warrant liabilities | 10.0 | % | 0.0 | % | 5.8 | % | 0.0 | % | ||||||||
Other expenses | 0.0 | % | (0.1 | )% | 0.0 | % | 0.0 | % | ||||||||
Total other income (expense) | 4.1 | % | (3.6 | )% | 0.8 | % | (3.1 | )% | ||||||||
Net income (loss) before income tax benefit | 0.8 | % | (6.5 | )% | (1.0 | )% | (4.3 | )% | ||||||||
Income tax benefit | 0.5 | % | 0.0 | % | 0.2 | % | 0.0 | % | ||||||||
Net income (loss) | 1.3 | % | (6.5 | )% | (0.8 | )% | (4.3 | )% | ||||||||
Net income (loss) attributable to non-controlling interests | (1.2 | )% | $ | — | (2.2 | )% | $ | — | ||||||||
Net income (loss) attributable to Cano Health, Inc. | 2.5 | % | $ | — | 1.4 | % | $ | — | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(% of revenue) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Capitated revenue | 95.3 | % | 96.1 | % | 95.7 | % | 95.6 | % | ||||||||||||||||||
Fee-for-service and other revenue | 4.7 | % | 3.9 | % | 4.3 | % | 4.4 | % | ||||||||||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | 72.0 | % | 70.3 | % | 72.2 | % | 67.1 | % | ||||||||||||||||||
Direct patient expense | 11.0 | % | 11.8 | % | 11.3 | % | 12.5 | % | ||||||||||||||||||
Selling, general, and administrative expenses | 14.4 | % | 10.4 | % | 13.1 | % | 12.3 | % | ||||||||||||||||||
Depreciation and amortization expense | 3.2 | % | 2.0 | % | 2.6 | % | 2.2 | % | ||||||||||||||||||
Transaction costs and other | 1.2 | % | 2.9 | % | 2.7 | % | 5.2 | % | ||||||||||||||||||
Total operating expenses | 101.8 | % | 97.4 | % | 101.9 | % | 99.3 | % | ||||||||||||||||||
Loss from operations | (1.8) | % | 2.6 | % | (1.9) | % | 0.7 | % | ||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||
Interest expense | (3.0) | % | (4.7) | % | (3.0) | % | (3.8) | % | ||||||||||||||||||
Interest income | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Loss on extinguishment of debt | 0.0 | % | 0.0 | % | (1.1) | % | 0.0 | % | ||||||||||||||||||
Change in fair value of embedded derivative | 0.0 | % | (2.0) | % | 0.0 | % | (1.0) | % | ||||||||||||||||||
Change in fair value of warrant liabilities | (2.8) | % | 0.0 | % | 2.0 | % | 0.0 | % | ||||||||||||||||||
Other expenses | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Total other income (expense) | (5.8) | % | (6.7) | % | (2.1) | % | (4.8) | % | ||||||||||||||||||
Net loss before income tax benefit (expenses) | (7.6) | % | (4.1) | % | (4.0) | % | (4.1) | % | ||||||||||||||||||
Income tax benefit (expense) | (0.1) | % | (0.1) | % | 0.1 | % | (0.1) | % | ||||||||||||||||||
Net loss | (7.7) | % | (4.2) | % | (3.9) | % | (4.2) | % | ||||||||||||||||||
Net loss attributable to non-controlling interests | (5.0) | % | — | % | (3.4) | % | — | % | ||||||||||||||||||
Net loss attributable to Class A common stockholders | (2.7) | % | — | % | (0.5) | % | — | % |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Revenue $ | Revenue% | Revenue $ | Revenue% | ($ in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | |||||||||||||||||||||||||||||||||
Capitated revenue: | Capitated revenue: | |||||||||||||||||||||||||||||||||||||||||
Medicare | $ | 334,700 | 85.1 | % | $ | 129,385 | 75.6 | % | Medicare | $ | 447,250 | 84.9 | % | $ | 220,591 | 83.8 | % | |||||||||||||||||||||||||
Other capitated revenue | 44,510 | 11.4 | % | 34,542 | 20.2 | % | Other capitated revenue | 54,530 | 10.4 | % | 32,383 | 12.3 | % | |||||||||||||||||||||||||||||
Total capitated revenue | 379,210 | 96.5 | % | 163,927 | 95.8 | % | Total capitated revenue | 501,780 | 95.3 | % | 252,974 | 96.1 | % | |||||||||||||||||||||||||||||
Fee-for-service | Fee-for-service and other revenue: | |||||||||||||||||||||||||||||||||||||||||
Fee-for-service | 4,389 | 1.1 | % | 1,246 | 0.7 | % | Fee-for-service | 8,176 | 1.6 | % | 3,258 | 1.2 | % | |||||||||||||||||||||||||||||
Pharmacy | 8,217 | 2.1 | % | 5,718 | 3.3 | % | Pharmacy | 10,096 | 1.8 | % | 6,154 | 2.4 | % | |||||||||||||||||||||||||||||
Other | 1,347 | 0.3 | % | 315 | 0.2 | % | Other | 6,746 | 1.3 | % | 747 | 0.3 | % | |||||||||||||||||||||||||||||
Total fee-for-service | 13,953 | 3.5 | % | 7,279 | 4.2 | % | Total fee-for-service and other revenue | 25,018 | 4.7 | % | 10,159 | 3.9 | % | |||||||||||||||||||||||||||||
Total revenue | $ | 393,163 | 100.0 | % | $ | 171,206 | 100.0 | % | Total revenue | $ | 526,798 | 100.0 | % | $ | 263,133 | 100.0 | % | |||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
($ in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||
Capitated revenue: | ||||||||||||||||||||||||||
Medicare | $ | 1,008,329 | 84.0 | % | $ | 455,986 | 80.0 | % | ||||||||||||||||||
Other capitated revenue | 139,712 | 11.6�� | % | 88,631 | 15.6 | % | ||||||||||||||||||||
Total capitated revenue | 1,148,041 | 95.7 | % | 544,617 | 95.6 | % | ||||||||||||||||||||
Fee-for-service and other revenue: | ||||||||||||||||||||||||||
Fee-for-service | 17,113 | 1.4 | % | 6,269 | 1.1 | % | ||||||||||||||||||||
Pharmacy | 25,619 | 2.1 | % | 17,207 | 3.0 | % | ||||||||||||||||||||
Other | 9,323 | 0.8 | % | 1,544 | 0.3 | % | ||||||||||||||||||||
Total fee-for-service and other revenue | 52,055 | 4.3 | % | 25,020 | 4.4 | % | ||||||||||||||||||||
Total revenue | $ | 1,200,096 | 100.0 | % | $ | 569,637 | 100.0 | % |
Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
($ in thousands) | Revenue $ | Revenue% | Revenue $ | Revenue% | ||||||||||||
Capitated revenue: | ||||||||||||||||
Medicare | $ | 561,079 | 83.3 | % | $ | 235,395 | 76.8 | % | ||||||||
Other capitated revenue | 85,182 | 12.7 | % | 56,248 | 18.4 | % | ||||||||||
Total capitated revenue | 646,261 | 96.0 | % | 291,643 | 95.2 | % | ||||||||||
Fee-for-service | ||||||||||||||||
Fee-for-service | 8,937 | 1.3 | % | 3,011 | 1.0 | % | ||||||||||
Pharmacy | 15,523 | 2.3 | % | 11,054 | 3.6 | % | ||||||||||
Other | 2,577 | 0.4 | % | 796 | 0.2 | % | ||||||||||
Total fee-for-service | 27,037 | 4.0 | % | 14,861 | 4.8 | % | ||||||||||
Total revenue | $ | 673,298 | 100.0 | % | $ | 306,504 | 100.0 | % | ||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||
Members: | Members: | |||||||||||||||||||||||||||||||
Medicare | 111,866 | 72,576 | 54.1 | % | Medicare | 120,086 | 72,806 | 64.9 | % | |||||||||||||||||||||||
Medicaid | 25,178 | 16,585 | 51.8 | % | Medicaid | 63,871 | 19,169 | 233.2 | % | |||||||||||||||||||||||
ACA | 18,994 | 10,115 | 87.8 | % | ACA | 26,706 | 10,792 | 147.5 | % | |||||||||||||||||||||||
Total members | 156,038 | 99,276 | 57.2 | % | Total members | 210,663 | 102,767 | 105.0 | % | |||||||||||||||||||||||
Member months: | Member months: | |||||||||||||||||||||||||||||||
Medicare | 282,251 | 152,764 | 84.8 | % | Medicare | 360,439 | 216,353 | 66.6 | % | |||||||||||||||||||||||
Medicaid | 71,461 | 45,515 | 57.0 | % | Medicaid | 187,212 | 53,511 | 249.9 | % | |||||||||||||||||||||||
ACA | 57,816 | 30,474 | 89.7 | % | ACA | 81,437 | 32,285 | 152.2 | % | |||||||||||||||||||||||
Total member months | 411,528 | 228,753 | 79.9 | % | Total member months | 629,088 | 302,149 | 108.2 | % | |||||||||||||||||||||||
Per Member Per Month (“PMPM”): | ||||||||||||||||||||||||||||||||
Per Member Per Month ("PMPM"): | Per Member Per Month ("PMPM"): | |||||||||||||||||||||||||||||||
Medicare | $ | 1,186 | $ | 847 | 40.0 | % | Medicare | $ | 1,241 | $ | 1,020 | 21.7 | % | |||||||||||||||||||
Medicaid | $ | 612 | $ | 747 | (18.1 | )% | Medicaid | $ | 271 | $ | 585 | (53.7) | % | |||||||||||||||||||
ACA | $ | 14 | $ | 18 | (22.2 | )% | ACA | $ | 47 | $ | 33 | 42.4 | % | |||||||||||||||||||
Total PMPM | $ | 921 | $ | 717 | 28.5 | % | Total PMPM | $ | 798 | $ | 837 | (4.7) | % | |||||||||||||||||||
Owned medical centers | 90 | 61 | Owned medical centers | 113 | 71 |
Six Months Ended June 30, | ||||||||||||
2021 | 2020 | % Change | ||||||||||
Members: | ||||||||||||
Medicare | 111,866 | 72,576 | 54.1 | % | ||||||||
Medicaid | 25,178 | 16,585 | 51.8 | % | ||||||||
ACA | 18,994 | 10,115 | 87.8 | % | ||||||||
Total members | 156,038 | 99,276 | 57.2 | % | ||||||||
Member months: | ||||||||||||
Medicare | 507,081 | 267,525 | 89.5 | % | ||||||||
Medicaid | 134,369 | 83,147 | 61.6 | % | ||||||||
ACA | 113,853 | 60,292 | 88.8 | % | ||||||||
Total member months | 755,303 | 410,964 | 83.8 | % | ||||||||
Per Member Per Month (“PMPM”): | ||||||||||||
Medicare | $ | 1,105 | $ | 880 | 25.6 | % | ||||||
Medicaid | $ | 613 | $ | 660 | (7.1 | )% | ||||||
ACA | $ | 29 | $ | 22 | 31.8 | % | ||||||
Total PMPM | $ | 856 | $ | 710 | 20.6 | % | ||||||
Owned medical centers | 90 | 61 |
Nine Months Ended September 30, | ||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||
Members: | ||||||||||||||||||||
Medicare | 120,086 | 72,806 | 64.9 | % | ||||||||||||||||
Medicaid | 63,871 | 19,169 | 233.2 | % | ||||||||||||||||
ACA | 26,706 | 10,792 | 147.5 | % | ||||||||||||||||
Total members | 210,663 | 102,767 | 105.0 | % | ||||||||||||||||
Member months: | ||||||||||||||||||||
Medicare | 867,520 | 483,878 | 79.3 | % | ||||||||||||||||
Medicaid | 321,581 | 136,658 | 135.3 | % | ||||||||||||||||
ACA | 195,290 | 92,577 | 110.9 | % | ||||||||||||||||
Total member months | 1,384,391 | 713,113 | 94.1 | % | ||||||||||||||||
Per Member Per Month ("PMPM"): | ||||||||||||||||||||
Medicare | $ | 1,162 | $ | 942 | 23.4 | % | ||||||||||||||
Medicaid | $ | 414 | $ | 631 | (34.4) | % | ||||||||||||||
ACA | $ | 36 | $ | 26 | 38.5 | % | ||||||||||||||
Total PMPM | $ | 829 | $ | 764 | 8.5 | % | ||||||||||||||
Owned medical centers | 113 | 71 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Capitated revenue | $ | 501,780 | $ | 252,974 | $ | 248,806 | 98.4 | % | ||||||||||||||||||
Fee-for-service and other revenue | 25,018 | 10,159 | 14,859 | 146.3 | % | |||||||||||||||||||||
Total revenue | $ | 526,798 | $ | 263,133 | $ | 263,665 |
Three Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Revenue: | ||||||||||||||||
Capitated revenue | $ | 379,210 | $ | 163,927 | $ | 215,283 | 131.3 | % | ||||||||
Fee-for-service | 13,953 | 7,279 | 6,674 | 91.7 | % | |||||||||||
Total revenue | $ | 393,163 | $ | 171,206 | $ | 221,957 | ||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Third-party medical costs | $ | 291,816 | $ | 112,040 | $ | 179,776 | 160.5 | % | Third-party medical costs | $ | 379,316 | $ | 184,926 | $ | 194,390 | 105.1 | % | |||||||||||||||||||||||||
Direct patient expense | 43,782 | 22,554 | 21,228 | 94.1 | % | Direct patient expense | 57,708 | 31,108 | 26,600 | 85.5 | % | |||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | 46,574 | 21,859 | 24,715 | 113.1 | % | Selling, general, and administrative expenses | 75,926 | 27,391 | 48,535 | 177.2 | % | |||||||||||||||||||||||||||||||
Depreciation and amortization expense | 7,945 | 3,977 | 3,968 | 99.8 | % | Depreciation and amortization expense | 16,955 | 5,379 | 11,576 | 215.2 | % | |||||||||||||||||||||||||||||||
Transaction costs and other | 16,374 | 15,687 | 687 | 4.4 | % | Transaction costs and other | 6,528 | 7,716 | (1,188) | (15.4) | % | |||||||||||||||||||||||||||||||
Total operating expenses | $ | 406,491 | $ | 176,117 | $ | 230,374 | Total operating expenses | $ | 536,433 | $ | 256,520 | $ | 279,913 | |||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||
Other income and expense: | Other income and expense: | |||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | (9,714 | ) | $ | (5,717 | ) | $ | (3,997 | ) | 69.9 | % | Interest expense | $ | (16,023) | $ | (12,346) | $ | (3,677) | 29.8 | % | ||||||||||||||||||||||
Interest income | 1 | 79 | (78 | ) | -98.7 | % | Interest income | 1 | 80 | (79) | (98.8) | % | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (13,225 | ) | — | (13,225 | ) | 0.0 | % | |||||||||||||||||||||||||||||||||||
Change in fair value of embedded derivative | — | (306 | ) | 306 | -100.0 | % | Change in fair value of embedded derivative | — | (5,138) | 5,138 | (100.0) | % | ||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 39,215 | — | 39,215 | 0.0 | % | Change in fair value of warrant liabilities | (14,650) | — | (14,650) | 0.0 | % | |||||||||||||||||||||||||||||||
Other expenses | (25 | ) | (150 | ) | 125 | -83.3 | % | Other expenses | (29) | — | (29) | 0.0 | % | |||||||||||||||||||||||||||||
Total other income (expense) | $ | 16,252 | $ | (6,094 | ) | $ | 22,346 | Total other income (expense) | $ | (30,701) | $ | (17,404) | $ | (13,297) | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Capitated revenue | $ | 1,148,041 | $ | 544,617 | $ | 603,424 | 110.8 | % | ||||||||||||||||||
Fee-for-service and other revenue | 52,055 | 25,020 | 27,035 | 108.1 | % | |||||||||||||||||||||
Total revenue | $ | 1,200,096 | $ | 569,637 | $ | 630,459 | 110.7 | % |
Six Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Revenue: | ||||||||||||||||
Capitated revenue | $ | 646,261 | $ | 291,643 | $ | 354,618 | 121.6 | % | ||||||||
Fee-for-service | 27,037 | 14,861 | 12,176 | 81.9 | % | |||||||||||
Total revenue | $ | 673,298 | $ | 306,504 | $ | 366,794 | 119.7 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | $ | 866,177 | $ | 382,279 | $ | 483,898 | 126.6 | % | ||||||||||||||||||
Direct patient expense | 135,777 | 71,441 | 64,336 | 90.1 | % | |||||||||||||||||||||
Selling, general, and administrative expenses | 157,348 | 70,234 | 87,114 | 124.0 | % | |||||||||||||||||||||
Depreciation and amortization expense | 30,746 | 12,741 | 18,005 | 141.3 | % | |||||||||||||||||||||
Transaction costs and other | 32,140 | 29,854 | 2,286 | 7.7 | % | |||||||||||||||||||||
Total operating expenses | $ | 1,222,188 | $ | 566,549 | $ | 655,639 |
Six Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Operating expenses: | ||||||||||||||||
Third-party medical costs | $ | 486,862 | $ | 197,353 | $ | 289,509 | 146.7 | % | ||||||||
Direct patient expense | 78,069 | 40,333 | 37,736 | 93.6 | % | |||||||||||
Selling, general, and administrative expenses | 81,422 | 42,843 | 38,579 | 90.0 | % | |||||||||||
Depreciation and amortization expense | 13,791 | 7,362 | 6,429 | 87.3 | % | |||||||||||
Transaction costs and other | 25,613 | 22,138 | 3,475 | 15.7 | % | |||||||||||
Total operating expenses | $ | 685,757 | $ | 310,029 | $ | 375,728 | ||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||
Other income and expense: | Other income and expense: | |||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | (20,340 | ) | $ | (9,382 | ) | $ | (10,958 | ) | 116.8 | % | Interest expense | $ | (36,363) | $ | (21,728) | $ | (14,635) | 67.4 | % | ||||||||||||||||||||||
Interest income | 2 | 159 | (157 | ) | (98.7 | )% | Interest income | 4 | 239 | (235) | (98.3) | % | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (13,225 | ) | $ | — | (13,225 | ) | — | % | Loss on extinguishment of debt | (13,225) | — | (13,225) | — | % | ||||||||||||||||||||||||||||
Change in fair value of embedded derivative | — | (306 | ) | 306 | (100.0 | )% | Change in fair value of embedded derivative | — | (5,444) | 5,444 | (100.0) | % | ||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 39,215 | $ | — | 39,215 | — | % | Change in fair value of warrant liabilities | 24,565 | — | 24,565 | — | % | ||||||||||||||||||||||||||||||
Other expenses | (25 | ) | (150 | ) | 125 | (83.3 | )% | Other expenses | (54) | (150) | 96 | (64.0) | % | |||||||||||||||||||||||||||||
Total other income (expense) | $ | 5,627 | $ | (9,679 | ) | $ | 15,306 | Total other income (expense) | $ | (25,073) | $ | (27,083) | $ | 2,010 | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||
($ in thousands) | 2021 | 2020 | ($ in thousands) | 2021 | 2020 | |||||||||||||||||
Net cash used in operating activities | $ | (56,580 | ) | $ | (13,143 | ) | Net cash used in operating activities | $ | (91,498) | $ | (21,043) | |||||||||||
Net cash used in investing activities | (649,269 | ) | (245,926 | ) | Net cash used in investing activities | (1,116,030) | (253,554) | |||||||||||||||
Net cash provided by financing activities | 991,319 | 240,593 | Net cash provided by financing activities | 1,382,634 | 272,828 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 285,470 | (18,476 | ) | Net increase (decrease) in cash, cash equivalents and restricted cash | 175,106 | (1,769) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 33,807 | 29,192 | Cash, cash equivalents and restricted cash at beginning of year | 33,807 | 29,192 | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 319,277 | $ | 10,716 | Cash, cash equivalents and restricted cash at end of period | $ | 208,913 | $ | 27,423 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net loss | $ | (40,883) | $ | (11,117) | $ | (46,403) | $ | (24,289) | ||||||||||||||||||
Interest income | (1) | (80) | (4) | (239) | ||||||||||||||||||||||
Interest expense | 16,023 | 12,346 | 36,363 | 21,728 | ||||||||||||||||||||||
Income tax expense (benefit) | 547 | 326 | (762) | 294 | ||||||||||||||||||||||
Depreciation and amortization expense | 16,955 | 5,379 | 30,746 | 12,741 | ||||||||||||||||||||||
EBITDA | $ | (7,359) | $ | 6,854 | $ | 19,940 | $ | 10,235 | ||||||||||||||||||
Stock-based compensation | 8,909 | 66 | 12,148 | 177 | ||||||||||||||||||||||
De novo losses (1) | 9,016 | 2,025 | 21,496 | 4,373 | ||||||||||||||||||||||
Acquisition transaction costs (2) | 7,825 | 7,827 | 35,163 | 30,121 | ||||||||||||||||||||||
Restructuring and other | 2,123 | 1,113 | 5,513 | 1,829 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 13,225 | — | ||||||||||||||||||||||
Change in fair value of embedded derivative | — | 5,138 | — | 5,444 | ||||||||||||||||||||||
Change in fair value of warrant liabilities | 14,650 | — | (24,565) | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 35,164 | $ | 23,023 | $ | 82,921 | $ | 52,179 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income (loss) | $ | 4,947 | $ | (10,986 | ) | $ | (5,523 | ) | $ | (13,172 | ) | |||||
Interest income | (1 | ) | (79 | ) | (2 | ) | (159 | ) | ||||||||
Interest expense | 9,714 | 5,717 | 20,340 | 9,382 | ||||||||||||
Income tax benefit | (2,023 | ) | (19 | ) | (1,309 | ) | (32 | ) | ||||||||
Depreciation and amortization expense | $ | 7,945 | 3,977 | $ | 13,791 | 7,362 | ||||||||||
EBITDA | $ | 20,582 | $ | (1,390 | ) | $ | 27,297 | $ | 3,381 | |||||||
Stock-based compensation | 3,168 | 57 | 3,239 | 112 | ||||||||||||
De novo losses (1) | 6,968 | 956 | 12,480 | 2,348 | ||||||||||||
Acquisition transaction costs (2) | 17,236 | 15,776 | 27,339 | 22,294 | ||||||||||||
Restructuring and other | 2,811 | 531 | 3,222 | 716 | ||||||||||||
Loss on extinguishment of debt | 13,225 | — | 13,225 | — | ||||||||||||
Change in fair value of embedded derivative | — | 306 | — | 306 | ||||||||||||
Change in fair value of warrant liabilities | (39,215 | ) | — | (39,215 | ) | — | ||||||||||
Adjusted EBITDA | $ | 24,775 | $ | 16,236 | $ | 47,587 | $ | 29,157 | ||||||||
(b) Changes in Internal Control over Financial Reporting |
Exhibit | Description | |||||||
101.DEF* | ||||||||
101.LAB* | ||||||||
101.PRE* | ||||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.) |
* | Filed herewith. |
** | Furnished herewith. |
+ | Indicates a management contract or any compensatory plan, contract or arrangement. |
By: | Chief Executive Officer | |||||||||||||||||||||||||||
Dr. Marlow Hernandez | (Principal Executive Officer) | |||||||||||||||||||||||||||
November 9, 2021 | By: | /s/ Brian D. Koppy | Chief Financial Officer | |||||||||||||||||||||||||
Brian D. Koppy | (Principal Financial Officer) | |||||||||||||||||||||||||||
By: | /s/ Mark Novell | Chief Accounting Officer | ||||||||||||||||||||||||||
Mark Novell | (Principal Accounting Officer) |