PFMT - Earnings call transcript Q1 2020 | Performant Healthcare, Inc.

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Operator

Greetings and welcome to the Performant Financial Corp.

First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

to Relations. conference like Zubek to now Investor of would turn over the Richard I you. Thank begin. Please

Richard Zubek

Thank you, release afternoon, a first operator. Good XXXX copy have you quarter of received should the earnings result. for company’s everyone. the By now

Finance available Officer not, of Relations Vice and Today’s will Rohit is website. Lisa by of the be Investor Ramchandani, If you led copy and Im, on have call a Strategy. portion our Chief President Executive

comments subject the on remind forward-looking those you during and filings Before including results SEC. call. company’s that financial today’s uncertainties, with we the begin, like our described Actual of the call, may I’d statements. to some These to including made guidance, materially are differ those the in statements described are risks from

of all forward-looking the press are this measures forward-looking in our statements call release. In statements and comparable GAAP to not to or as the circumstances non-GAAP the reconciled Also, new measures table to made are revised update attached today undertake all expectations. financial based any most does directly company during addition, discussed on

I’d to Now, over the to like call Lisa? Im. Lisa turn

Lisa Im

earnings thank Thank us our joining everyone, call. you, and you for Rich. afternoon, Good for

has past lives. environments created Over COVID-XX economy, new the few the the and normal in months, a family virus work our

force Our preparation internal stage ahead continuity in pandemic mid-March. initiated home business task of directive the initial

advanced business of we mobilized employees efficiently our result planning, a environment. in operations ongoing As secure continue a our over X,XXX remote to

bodies level, local able all managing a multitude to from federal During counties, various clients coming to the adapt in at from the we responsive of this successfully every time, government. and way have governing and cities been changes be and

our results the us to are associates and the the have drive of to strong been us coworkers commitment, pets, has allowed for and environment. situation first our of while courage now commitment in changing to that business are has associates without our easy, the adapting your not our information hasn't because conditions. in today. and emerge kids, this and when this technology become that staff, and thank performance impact to to directly And position we effort, we spouses from shown would your difficult and be we we organization temporary flexibility capable amazing quarter our contributions Although, our will you A huge your continued

While operational will extent pandemic, a the believe as COVID-XX is necessary allow depend that performance overall to the result pandemic COVID-XX of possible taken we have future and step of our financial will developments pandemic impact currently on the long-term us business. to continue predict of our on and on the we effect the function to not

of Coronavirus the in Act, example, activity XX, cease wage federal September suspended XXXX. Aid, and XXXX, pause The of to payments, the of or This For government garnishment according March the loans Economic payments with student last enacted stopped by Department Relief, outbound CARES the Education. interest Act, accruing through originated and for Security terms collection and U.S. involuntary

of period a calls immediate the on of IRS May impact our reinitiated operations, Department workforce. has and Department the suspended for total time. This calls the of and recovery outbound direct has of Treasury in the XX. Additionally, a Treasury one-third of resulting The outbound of furloughing our furloughing as over

business the to around COVID-XX pandemic. economy the uncertainty significant is the there the and U.S. disruptions on and clearly, related impact breadth And duration of

a focused on by Although, and building we been our strong, affected is strength recovery our on and adversely operations pandemic, our strategy core audit business diversified innovation, recovery. remain long-term compliance, of have unchanged analytics, this

recovery by similar we value directly have Conversely, regulations propositions a not our to too as impacted our level market believe unique the have number customers healthcare to our very that capitalize limited create of our and been to can combine opportunities. a healthcare on operations congressional capabilities due fact those we and clients, related operations of experienced Where impact strengths future COVID-XX.

have While our pauses expectations offering, healthcare seen notably growth on contract other continued or we a additionally contractions our have customers benefits to-date, COVID-XX currently within on our not which health our negative and market. we few not the audit expansion in activities, just place contracts coordination to healthcare short-term of relationships experienced effects expect overall have permanent

Medicare regional care to depend in our managed leader customers a plan, have CMS our numerous regions national integrity, on resiliency payment serving and As and forward multiple thinking. and come Medicaid and

continue of to COVID-XX. quickly operating to changing and the enabled the healthcare ability highly us our despite, Our servicing adapt clients, environment to nature disruptive

the unfolded plans and of our positive reporting following an of we quarter contracts continued for execution expectation strong had March, from on the in of pandemic similarly quarter with Before operating XXXX. fourth results XXXX first the momentum

work periods hard many of The As team of profitability. investment growth operational of our and out you, are dedication we have continued transitioning our of many with previously the of shared and our has our driven actively into strong phase results. contracts

resemble into last our to move heavy first the profitable quarter of versus are In to of phase positive of XXXX $X EBITDA one. QX revenue in investment an had anticipated just of what EBITDA our results of contracts loss growth These fiscal to more out $X than of XXXX, in over QX we we the as XX% million and year. compared XXXX continue million

With and to more quarter detail. financial the that, turn you I'd like the of Vice walk Rohit the Rohit? through Ramchandani, Strategy President to in results Finance to of over our call

Rohit Ramchandani

up in first quarter gain and to internal line the Lisa. a of loss Adjusted Thanks, QX was of year. in we EBITDA million projections $X.X prior was in the $XX.X million of with of of reported year $X.X revenues our the the fourth period In $X.X period. XXXX, in prior and last versus million compared year XX.X% which quarter million, a

year and first the reflects a The as higher continued represents last increase the of the in than move over $XX.X on out phases. and totaled investment basis. million, sizable our it was into more XX% first revenues XXXX progression the growth which in here of quarter contracts Healthcare profitable of was quarter sequential XX%

strides to make and relative our offerings. to coordination our further to significant We also benefits of product investments continued expand audit continue

As both anticipate of a COB market continued and innovative via we audit these market leader, growth offerings. seeing

Total in sequentially COVID-XX increase a XX.X% first to year, as the million, compared lower QX quarter to the $XX.X was recovery due X.X% the impact revenue of from last virus. but negative

to we changes our associates recovery on $X.X future As our approximately student Act monthly savings of financial and impact Lisa operations. that several negative foreseeable mentioned, expected in the million. furloughs The a will have included for from over CARES our the results XXX resulted loan-related of furloughing expect yield are

and With that pauses quarter more respect these second we recovery impact contract believe will the be to operations, from in COVID-XX. our our of representative results

were price capitalization. first the impairment of and impacted non-operational $XX by market a in decrease charge results in non-cash This associated charge million. our the goodwill to our Additionally, due stock is quarter primarily

There has since securities significant been of global result economy XXXX. public to the the negative COVID-XX and impact pandemic the a March market of as

result, a maybe which decline at non-cash impairment in risk to our earnings. goodwill price capitalization, a associated additional result may an further of should potentially increased As material and market non-operational stock charge in there our be

of $XX.X charge, that first cost mostly in the million, efficiencies. to from was XXXX. our and improved operating goodwill first The decrease were Excluding quarter due a quarter decrease expenses productivity in the slight

questions. Lisa we before I'd back over open call your like to turn to that, Lisa? to With up the

Lisa Im

Rohit. Thanks,

weeks, the lot learned Over efficiencies a XX past our in we business. the have about

experience over world. a As interruptions of that understanding environment we we two a in ensure in we I our a post-COVID moved to weeks, needed strategies and have secure better no to under work mentioned working associates clients our our earlier, in successfully In X,XXX into so, service. requirements look doing from staff the of can new employ remote now

look the just improving anything XXXX, With stable which sobering our still ago. we XXXX a return teens, don't now place months rates if in today's rules we upper follow. is environment. point, pre-COVID guidance things all we to to will is was provided but The back environment to that normal. new state. macroeconomic reality When don't the few And that and However, the will not regulations be or you we ones December when mid it reach assume we in world know be a what there when to in initial will unemployment at is know,

result, a decision the made have we withdraw As to our guidance. future

you are For tell now, can our important made produce positive is thing measures we accomplish believe this that to that to the results EBITDA year, and for I that. taking appropriate priority it most adjusted I we

difficult clarity to and But receive able be that we make with expectations at directives to hope you for this on near future. point in our updates customers continue to projecting the time, some some now. provide our at from We XXXX

compressed and hyper that proud of the to through accomplish we able lessons this believe we time by and workforce learned were adapt to a what applying that and that our fortify However, frame in recovery strategies. technologies operations new have to pandemic business I'm

I success long-term that for believe this and are prospects believe going holds. in our better the come we position of whatever in excited are and believe leaner our of EBITDA and will remain state, out term. the We to confident our remain we many our we now strengthen which care business are contracts that Furthermore, strong. drive in positive future health the long

the other to who putting thank our significant flexibility for are to your like we'd workers stay line and rest so open call times. questions. thank the on I that, their want and I also their to up these during Lastly, of safe. patience efforts, our can us and lives want employees frontline take essential With

Lisa Im

We and we us thank Thank you for to for them and commitments again, operator. want today. our for hard of letting all associates you, want this their our to thank with huge being our work. you again. serve call you us to Thank Once thank on clients

Operator

This does conclude today’s conference.

and this your for great You disconnect your participation, time. lines evening. a at have you Thank may

Performant Healthcare (PHLT) 19 May 202020 Q1 Earnings call transcript