CMAX - Earnings call transcript Q4 2021

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Operator

Greetings. Welcome CareMax Inc. Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note, recorded. Please now Vice President will turn the Swerdlin, Samantha to over Investor conference I Relations CareMax. at you. Thank

You begin. may

Samantha Swerdlin

you, earnings everyone. and Thank morning, CareMax’s good quarter fourth Welcome full call. to XXXX year and

On Officer. our Kevin Executive Solo, Carlos Chief with the Chief Officer, Financial me call our are, de today Wirges, and

factors to the of we the CareMax’s information, they factors such could statements on Risk as business cause actual results, assumptions section management, the today’s with described Factors. assessment in and developments, are revise entitled In statements from remarks call differ decisions events company’s and future During duty the believe SEC, discussing including statements, of to trends, be by experience Important during based will materially will the filings that forward-looking found I’d discussing historical made this release. the metrics. or A reconciliation be to the new light certain forward-looking Carlos. forward-looking earnings update their made statements, of morning’s expected are be and be or call otherwise. by management conditions, whether now said, most like no comparable appropriate. to non-GAAP to are With call, undertakes measures, to made we over And can information. non-GAAP in that financial press GAAP these of financial metrics as in today a These future forward-looking other CareMax current assessments and and of this result developments, turn

Carlos de Solo

with medical ratio. am proud in closed that you a membership our morning, thank today. for our strong I expense Samantha. our growth and we Good decline and you, Thank report revenue quarter-over-quarter joining everyone, fourth quarter and to call

encouraged delivered membership For the of feel expectations entering MER and despite our year momentum into and COVID, XXXX, XXXX. by ahead full we

Memphis, Tennessee, first achieving De in city. and goal, York We progress center in pleased opened we recently our meaningful and are first announce two that New Novo are XXXX making our centers towards to our

our Our new will Novo our expansion bring teams person whole patients these with strategy, proprietary and MER, clinical is ever. into more our markets testament believe improve members serve point while By in CareOptimize, model. and underserved strong platform, model be to our best-in-class our healthcare do blocks our this transformative, with to overall health and still of integrated working We outcomes growth, of technology health are utilizing in health an will as maintaining care some to than many building We communities the to of deserts, well-being. our exciting a care. truly program, our national De barriers milestone person by team physicians whole to otherwise most a our is addressing and care partner and and which significant - neighborhoods,

Our we to to will forward model that well does by benefit expanding look most. those doing the good, and communities

Turning now performance. to our

of achieved rates XXXX. return seen million, members proforma For and the for from have risk $XX quarter saw up levels. our the in of of date, combination quarter million CareMax XX% revenue in QX, during Notably, we XXXX, and IMC, the reimbursement fourth to $XXX fourth to of we XX% pre-COVID the year,

$X.X, quarter full million net net million. to fourth loss GAAP GAAP $X.X was Our loss bringing our year

adjusted rate with year. last $XXX expectations we in million, was revenue rate run the proforma million, EBITDA both our $XX was XXXX line approximately and Our proforma run set

the But power today, Kevin were these frame guidance report reminder, current will all to into we expect will steady-state as given a XXXX our XXXX. helped discuss, heading that As reflect figure in illustrative year. earnings performance

our XXXX, XXst, our over XX,XXX, guidance. over December Medicare was was and of exceeding as Advantage XX,XXX, membership total Our both

marketing experience grassroots expected quarter, concentration COVID a in De first others, we our openings, our Like the Our growth of Omicron in future. Novo areas where have own to partners strong to early higher are on membership efforts, related the in cases contribute membership specifically variant. the focus and to

admissions And than shorter in the program. rapid stay average those admitted, spikes. during of However, We COVID hospital length this of below prior members seen response prior were attribute our levels was waves. to

treatment well. the staff quarter, impact educating medical the early been the outreach fourth COVID to and Our have our which more continued our to model diligent diagnosis continues has from about members, in during led perform Despite effective clinical plans.

three reduction direct in overall reduce XX% a our have to in improvement healthcare It percentage estimated For how we approximately ratio, healthy recorded expense spent to MER expense results have provider lowering savings per XXXX. bit costs, contributes absolute has our basis. repeating a healthcare continue which historically, from per needed are we Normalizing achieved which provide member quarter a on the show to XXX of that external ex-COVID, of XX.X% medical would including points system. COVID, years, MER by that our the third four fourth quarter, in over per-month an XX.X%. more much dollars impacts basis our costs for we a from been we month, bears patient cohort XX per-member points medical of to reduction context

on we substantially synergies update would the including previously benefits captured that IMC, to from with certain panels consolidation I have $X anticipated Next, operational like of plans. we all provide health the of under initiatives. our now believe million member combination announced an We

capital to we human ways imagine, are valuable looking talent. most continually our might asset, for is in and our invest you As

First, corporate and that our growth believe Officer, a the leadership President, Compliance People teams. we to talent Market our on quarter, we'll execute in capabilities to and to regional Chief a Chief the and Officer. right brought continue and assembled have We including a up key we on Southeast our corporate plans, add fourth to support operations, regional

adjusting support translate that into the retention quality across associates worked to the knowing We're last of for compensation and keep Second, our and our safe. keep of operational experience process during center to higher pandemic, frontline year members employee centers our tirelessly care and members. medical our in staff,

ability XXXX, already to of pleased announce are year centers. benefiting that investments I a our as care we past This maintain for all experience. Score of am Further, satisfaction, had best-in-class made received Promoter we year. retention quality patient in we our across Net We XX rapidly. five-star a grow member from achieved to the and we a underscores rating physician the last over in XX%

interest opportunity and has of one in on, owner The we our continue Anthem. largest and those, us where of in provide Related York will looking City, Two the work be initial track which to strategic this opening with Related year. our improve by operators those the of efficiencies the of healthcare collaboration The from with to closely collaborate we amount are on collaboration with system. New to inbound us been Moving we of gives outcomes US. to to the initiatives, in Related an update impressed centers focus the housing affordable to

affordable most. vertically healthcare need care access those vision directly integrated providing to to person whole communities, housing is to convenient it Our CareMax's who model the bring to seniors

floor have convenient With to our the communities in to to and Center, the that access ramp this look opened highlighted the Medical membership center the path of in footprint. fastest as ground retirement a Pines of the across country Pembroke care. This we among We center works our to well, which community. expand model this Florida growth past profitability we on Related, forward with experienced demonstrated value-based bringing to model

fill help our We Anthem us also strategic and has are Anthem nicely to engagement with level of encouraged provided with are our progressing collaboration by the centers.

speed With to of their we able value-based believe upfront full care. membership the pull-forward De economics all of break-even the shift support, accelerating Novos, platform while reduce to losses we risk up at are contribution and Anthem's margin, path operating

communities. these collaborations, other important goal, assist medical work with care we best-in-class In in two to our to strategic addition to bringing payers to collective continue our underserved

Novos contribution highest In a discussed capital, tailwinds in the This and strategic funding right openings. ROI financing we've membership. million Novo for little we investment, prior assessing of pursue represent as costs, De The presentations, both. right our opportunity. for improve we where place we our looking Novo to De the the that profit use of strategy instances, right partners disciplined are to center in secular or markets, outcomes, as after able are get have a and De to infrastructure, million When leveraging believe we breakeven team, partners. through new from some of that $X upfront possible with look platform and concentration our $X to As have payer is tenant improvement partners quality

specifically large ensure to way. a in outcomes exist, where we our TAM patient to going Our is a lower model model. patients deliver By our deliver these local already acquisition cost, and designed we have replicable

local a these that those are each De to with ability in believe ourselves platform partners predictable by sized base the By our supported hyper-local environment. from of $X and the and cash attractive events in grassroots within generate flows medical economic hiring and to contribution communities unique through generates culturally-sensitive Our this communities $X the million standard that serving. our a our scaled results member is we of model million approach bring we Financially, efforts. in Novos, We resonates that sourcing centers to so member any maturity. our our focus and embedding own communities, has

Novos guidance of prior We in are reaffirming De opening XXXX. XX

Tennessee, Florida, York. New Louisiana, across leases executed already have and We

building health the in more locations our to will and and make While we've that approach, we quality in deliberate believe very outcomes allow members. we are for the interest we sites than disciplined out improving our remain selecting by best high returns experiencing impact highlighted, us biggest in provide

tech-enabled national to Lastly, touch into like I'd plays how our strategy MSO plans. it on and expansion our

the model to gives been community path has part our providers MSO in XX of years, past the and a for care. value-based Our

into we As from based as use SaaS our previously communicated, consulting platform CareOptimize have its model. have a MSO our transitioning begun prior we

for outcomes the reach reliably provides arrangements more independent and support a giving us independent ability for market, with faster all physician networks. to deliver it Our systems have in their MSO assists interest favorable us as while to health physicians them results patients, Payers mass path better this expressed technology, profitability. managing in financial model, their and provide with stakeholders. a the with These in to education, critical

arrangements we flexibility Kevin partial to path practices. outlook generated or will And to historically, the provide with as to turn those color contracts begin I these a our these non-risk more With centers. to that. our have have of comparable as to it the risk We XXXX. on full owned and our margins risk results professionalize over a for

Kevin Wirges

Thanks, another COVID revenues good headwinds. morning. despite Carlos, quarter solid of We and reported

full a are providing, be CareMax As proforma financials IMC, DNF. and quarters GAAP between full and Any CareMax, year the I and for XXXX include SMA, combination will reminder, that quarter historical of our fourth IMC, numbers periods. business

our between reconciliation net income and release or earnings a EBITDA find can adjusted GAAP presentation. You press our in

In as earned. the to we tranche liability, reclass of from noted related to earn-out in for XX-K, business a closing first was the period equity, documents, when our a addition, instead July combination the of as both expect disclose Xth, to earn-out in shares

will XXXX revenue, XQ reflect the providing of financials year, in historical and which million, be a reclassification, cashflow. no one-time of XQ or for $X.X net our to approximately results to We adjusted gain EBITDA. restatements with this impact non-cash

$X.X Our for full to million fourth adjusted year. quarter for million. $XX.X EBITDA $XXX was for year the full was the adjusted total million, reported revenue EBITDA million and $XXX quarter, the the for bringing

Medical million $X.X QX, for estimated $XX.X COVID been normalizing the quarter, we would've costs. have we ratio EBITDA the and adjusted was impacts expense been the external XX.X% our impacts for believe but to COVID, would XX.X%, revenue million provider direct for Excluding and year. of full for

and have cost, of waves, achieved if for ratio and line medical a would under XX%, reported XX%. to multiple legacy EBITDA, external and and XXXX, we year on cost. back claims expense we COVID-related CareMax the you roughly out between the with below impact million, been our XXXX adjustment total XXXX MER the performance. adjusted were provider split was to despite Proforma of full estimate And targeted in to COVID CareMax pandemic combination impacts revenue, the revenues risk for IMC of For headwinds $XX direct COVID IMC, risk-based

July XXX-basis As you January hospitalizations and quarter. point earnings admissions of presentation, for in last were Florida lower the can due COVID see even variant, in positivity Omicron COVID XXXX, MER to seen utilization in rates only to despite a during impact us record August February the year. the and across And was and lowest we've our QX than represented and

year, the supports person-PCP visitation health impact data Consistent so for this plan continued revalidation risk Finally, in from well to adjustment members, our far a as Medicare in strongly trend through rates, as received with of we've acuity full that, QX. recovery XXXX. experienced

members. XX% turn Advantage to championed by does execute positioned not growth, enhanced includes end and to organic which feel our tuck-in We at XX% acquisitions, be Medicare regional or the Now, from XX,XXX growth to growth sales guidance. been This larger expect assume will with represents organization, membership against key year well opportunities, XXXX acquisitions. December This to to me growth has scaled which let our and contribution base talent. organic restructured XX,XXX, over

We are XX that XX%. sales centers little have Recall, a improve above capacity utilization in underway only to initiatives member productivity, designed boost retention. is our and still our

spectrum note of Advantage As increase penetration have important market ample we such, a exist Florida, footprint models. eligibles It's even in to current like MA alone. to payment Medicare runway mature the our that across in

and we technology and costs. is process, see in expenses with medical partial risk non-risk risk little that revenue members. our toward external with getting non-risk driving of path strategically, including corresponding other for a and lower PMPM risk, all no from medical than full recognize members and patients partial revenues between down business. our distinction provider revenue We partial management full, MSO full We patients to non make Although and and

would As Medicare fee, revenue. admin step full we members move revenue payer risk and consolidate into to less premium, to full risk that the plans, the up

see For time. grow mentioned, that risk believe affiliate opportunities member growth from at reason, members non-risk at Carlos - we GAAP can unlocked may be to risk can full over that also or our differ s times, embed MSO membership growth we economics A providers. but revenue non-full

full centers, health put our a plans, or non-risk. be expand to and affiliate can like can on value-added our find at resource-constrained We relationships members way provide efficient members towards full, economics. Just us members be partial providers, affiliates services path an to with risk for

from a De guidance growth contribution modest Novos. Our XXXX includes to membership

think full are can address capitation into chronic risk coach in conservative, we first Related Novo population, them confident access to the a to members and nominal appropriately downside is Anthem an earning design, being By intended entry mitigate flat but We and be will given markets to while unknown, We've option initially collaborations like outside basic This pull risk, tailwinds but De our growth. members of Florida, take provide able document underserved non-risk, wellness conditions, a profitably to the earlier. forward if the to being time social their on manage path to have that and health needs in services. other mental established feel habits, to two-year point we PMPM.

Novo it risk. potentially De XXXX, in a topline For in tailwind full reasons, these ramps, member but anticipate converted and be member will relatively get volume we to XXXX, becoming as panels some start modest revenue will

driven in a a total year's headwinds, sequestration XXXX. In PMPM XXXX full of shift sequestration QX revenue the growth, year, evenly the last tenured revenue $XXX newer, we Medicare Our of mix members, members. throughout offset million, to phasing of by PMPM of reflects recovery million will spite a lower QX, from and risk in by guidance $XXX and relatively gradual adjustment by higher year partially distributed think quarterly member to be of partial in

As GAAP ASC may recognition XXX risk earned and does a that our revenue years. to reminder, future not adjustment guidelines, in benefits accrue potentially adheres be for

XX $XX million. from EBITDA We clinics earnings as XX De base adjusted core losses, current Excluding this business, representing our we in Novo to and be Florida. between to of million XXXX expect refer our

public of confident At same ability we Our operating various CareMax support them feel as to initiatives. a strategic around to business historical to and company, of time, but core six margins, D&O in reflect core contribution profitable. the our in incurred at We centers our go expenses, including to cost public they continue our are we company the following months public maturity, insurance to year, of June. right-size are XX%. stages platform scale And last

our boosting and hardworking as benefits Second, savings to cost we Carlos are paying frontline staff. for redeploying mentioned,

our anticipate core clinical can capabilities. We and a It's management growth sales term to and including better timeframe, six-to-XX-month near medical growth benefit execute this balance be and to in investing meaningful weighted that to towards Novos center EBITDA these opportunities approximately plans field strikes XX impacts we what profitability, profitability, and we adjusted Novos markets with our to long-term call might remember reps accelerated investments core De like our have on our losses half. to $XX areas believe over paints but and our areas enhance important Finally, In EBITDA back look in guidance in centers. million, drive an good growth connection between our the mostly Novo picture like will believe of our appropriate steady open De for state a year, for the De margins.

revenues will tailwind more material De be As XXXX. I be arrangements, and non-risk noted, will growth Novo in to a initially from

have in We intend but a support ended to XXXX of efficient position, dozens term in round debt success-based pace, $XX into a million our capital loan. financing, of expand to and openings sight from under capital years, of partners tenant capital line proceed center To manner. improvement measured, with our leveraging million we our of cash, at $XXX the and out coming

the in execute of of undrawn that, the our growth total summing $XX De is letters back continue it optimistic of strategy, to for We With us, make our remain in to to Carlos goals. growth plan closing conviction turn our to investments against I'll $XX ahead has Novo to million a outstanding, despite about and having approximately remarks. the transformative platform the year of challenging revolver total us, capacity, million credit year. at $X liquidity in for XXXX less end Our of environment. was and million

Carlos de Solo

outcomes. our I we next us of needs for into year our of to for to exceed expectations strategy. as we’ll medical our the members thank the while always closing, very team opportunity their keeping questions. about best-in-class our growing demonstrate move continue Operator, and performance phase XXXX growth our medical to who great In dedicated all the first. I'm commitment with was a health to open ahead Kevin. business, want Thanks up it now optimistic our members

Operator

Thank you [Operator Instructions].

with is proceed. Research. question from Josh first Please Our Raskin Nephron

Josh Raskin

morning, the you're specifically, these ramp physician first expansions, maybe expected for some new cadence looking membership is I'm color on any to thinking question thanks. and recruiting how about up the guys. how through and market Hi, Good is My of year. of

Carlos de Solo

Hey, Josh. partnering we're have physician - organizations, of with universities by with. working that the that New here some very and York we've some one, in Yes, we're institutions, community Florida to with in going been in recruiting, successful continue and reciprocity, some institutions Tennessee of areas the in and

are a finding what burnt physicians, lot we that we're specifically at looking more call another the economics most also favorable are wanted looking intended. we're hires, the area, alternative. New ability in for they able Additionally, them for And is aqua medicine we to York are really the offer in what the way and and out and for to provide part, that initially and of had

not in have here with Florida, the contemplated or new well. recruitment we've as physician had issue we So, an as markets

Josh Raskin

And they mostly? where Were coming Carlos? from, they private practice are

Carlos de Solo

hires of Yes. aqua are A the lot practices. private

panel a a benefit side small centers. one of them into that's our they're of CareMax opportunities may medical a that providers something fee-for-service, small just bring lot generally physicians. that comes are and different. So, MA looking great really follows is and where Those you XXX small just get for just those of we can physician, A panel have

nice finished a even through start entities and you different the have that other aware - when those way So, you the that coming community residency And lot us up. that with folks small open in of base also our relationships universities just of have their when is, we're recruit. to help centers, are a it's

Josh Raskin

that That the sort in And more question my retention, in just, your doing Advantage seeing behavior are on makes differences is of you focus they're Medicare partners? differently? sense. of then Any second a difference anything plan competition,

Carlos de Solo

Just question in locations? or right. to have different I want general make in Just sure the

Josh Raskin

competition like of here. sense in sort just not of that. lot just into thinking as I'm levels general, that there's even a curious about the in conversation right, my competition, of move that. around And churn and companies things been higher yourself, it's and XXXX, like we to No, say

Carlos de Solo

Yes. good question. Yes,

health we're numbers, the That revenue that that the for providers numbers think now also biggest it seeing, and biggest on I right? significantly are really thing focus right plans. the health the is retention plans impacts providers, impacts five-star on the

are all lot with throughout the a five-star of seen health our plans to us, partner wanting centers. the support we've across we So, from national of providers because board

very really that the being earnings a little the bring opportunity So, us and has can with benefit membership and bit us at a beginning well. that ourselves manage provided that rating the auto-assignment, has - on them, to where from position allowed favorably also I call able of them as to to talked five-star about we help MSO

I the think focus. biggest that's

Operator

Our next question with Please UBS. Mok Andrew is from proceed.

Andrew Mok

Hi. good morning.

Q four of membership higher-than-expected the your membership membership, XX XX,XXX, on previous in expectations MA First came drove What your XX,XXX. of above the in quarter?

Carlos de Solo

organic growth. tuck-in was as it that lot of as as small talked earlier was MSO Yes, response. well of levels. various that was of some Josh's on auto-assignments, different lot combination acquisitions, A I A some a

we the position payer enter benefiting we a as things our of the driver new is partners us from ability for moving and ourselves potential to markets key will be with One forward think that auto-assignments.

AndrewMok

think year what's expected the Got Novo of you cadence this And De those XX can we Novo size for the about it. clinics us? And year, De for the openings? when the losses

Carlos de Solo

the three York opened to in in just in We cadence. New Yes, guided we Memphis, two haven't centers, one up Brooklyn.

reaffirm that leases opening XX year. will centers this We as on A the next opening be coming in those up other we guidance New have York and well. up the middle of year of end in And lot of region. five

Andrew Mok

Right.

year? expected is by the to maybe can us understand expansion our your you shared expected how partners be on cost for strategic of the the help operations side, financing talk And Okay. much flow cash and from

Kevin Wirges

Yes.

be relationships. specifically So, which What losses of I lot our are collaborative guided giving million think of centers EBITDA. tell in I $XX I we've to last to A with would roughly the we're is, going the related half you opening of are specifically are think post year. Those to on don't losses. open guidance those

So, to see throughout QX. part cashflow be more tell we significant really I'll we really on you, ’XX. the It's towards a latter won't drag won't - see going the

Carlos de Solo

would Anthem very Yes. regions we’re identifying to we of closely say I is, that a with and in working the in what that No, centers states up all we're be of to the cadence of up discussed, create opening going opening those all partnership.

Andrew Mok

Got it. the That's you helpful. I Anthem this in you provide on guess related much MA contract membership contract partnership, group York? to that can how expecting that, New And year? an are update from

Carlos de Solo

Yes.

would that boxes that those members but as CareMax our growth provider. unmanaged, be that in different from membership is the we're up numbers benefit We're potentially we factoring that about the we to there a projected, of extent think to a early potential regions. we open to wanting do unassigned be of move that think in a unassigned, opportunistic too lot locations tell. our It’s there or not opportunity I that are that that still to and to to any going significant

Andrew Mok

Got it.

Okay. good on questions. the That's Thank you. color

Operator

next is with Sandler. Please Piper from Our Tassan Jessica question proceed.

Jessica Tassan

question. the taking for you Thank Hi.

from And I what going So, just to are but any themes million looks into ‘XX cashflow, that? XXXX. to QX. stepped up consistent QX you're drove help in understand it burn that us not maybe Can cash guess, like guide $XX you just

Kevin Wirges

Kevin. it's Yes. Jessica, Hey,

in to about we we that XX So, million which tuck-in acquisitions $XX that million did resulted have QX, cash some burn. did of

as reimbursed lag. our is, we risk thing typically is patients, for other for The full three-to-four-month a get that

if the that's in So, in the will, that QX, really coming is cashflow QX you happened, right. activity

that between of So, and when bit happens. we a delay a little when there's earn cashflow

the would balance. round that remaining up So,

Jessica Tassan

it. Novos, And guys taking then driving those are not anticipated of year? just the on just adjusted patients you. kind the from until De is you second losses risks Thank EBITDA - if losses Got on the you can what

Kevin Wirges

We're the assuming to Jessica. Thanks, our think ramp large in taken a Florida it's right? approach out. what model see So, a in that building not in mostly Yes. going clinics. we've we capacity, there's typically membership, conservative I south be Yes,

We the there. ramp So, we've in be do we approach. to the Physician are going there, costs costs conservative but steady anticipate fixed are taken - a costs, membership. obviously facility a are

J-curve in that we is steeper the as parts the therefore, up little a start to early so, year And just capacity. build of

Carlos de Solo

we that. Part approach Anthem, payors, want is of we through to we reduce cost. a Yes. to and on of with paths OpEx centers up go profitability reason partnered took to we've and duration that Related, several on that shorten make sure the And J-curve as conservative those fill other or the potentially

Jessica Tassan

in If one That's I helpful. could just sneak more.

just in Thanks. MA group a that York, Anthem response the start I prior you On point New your Maybe misunderstood that for XXXX? contract has hard question. start contract? Can in date some is there sort clarify to if of in hard a at date

Carlos de Solo

Yes.

going through that on but like have potentially from sounds yet. still they some be a date start that It arrangement. was to know we're I resolved, benefiting through when that issues. going we were aware not us don't We’re for

Operator

[Operator instructions].

Brian proceed. from Tanquilut Our next question Jefferies. is with Please

Brian Tanquilut

especially much but one how the CapEx you next now question. the have, requirements right have in you on What liquidity And for think to appreciate you for plans three morning, or we like of liquidity five plan, Thanks color good going access color capital do everything years? the about but all fund ample for as XXXX, three-to-five-year to your your kind think on, De expectations your are the given openings? Novo on Hey, you today gave guys. all XX

Kevin Wirges

on is, plans, improvement shorten relationships, always kind you we I as have balance as relationships Anthem What but with our liquidity Kevin. we’re Yes. J-curve. tell an the of and sheets Hey, plans. would so near-term leveraging item tenant executing capital-light Related, foremost to our at obviously well the so us. are it's to Yes, that We that, on Brian, not it’s do looking that's execute on for first and

year. So, capital of light going - of in those half of standpoint, lot are are back it's from the centers relatively a a opening the centers those the to opening, probably Again, be in XXXX. half

we’re So, from to we I on a comfortable think cash execute where near-term. are standpoint and confident

Brian Tanquilut

converting so full have I of or timeline success give view I then, clients the terms appreciate MSO? of the thinking that. for in little there? then, structure? in guess can a on And and terms opportunity of that the be how do signals What typical should strategy, sort Kevin Carlos, And specifically, No, for your you to the of conversion about to early been CareOptimize detail we MSO like how kind you risk more bit of size

Carlos de Solo

we've while the Yes. of Look, margins managing this years, on something fully able We've as successfully, business in now, we've centers. spoke been our to own MSO past is the for call, into a is that achieve MSO for about similar This the and very a converting XX talked offering. I in been a great an kind integrated question.

A part economics, demonstrate to So, able those opportunity medical significant. I that book, educating business, think is of fragmented to the a book providers the really ability providers, work management, maintaining to that professionalize five-star and on to be pretty our the take medical big of and that is status. and

that's auto-assigning in unmanaged. membership plans here Florida, than as network in today, think to the not, IP the to are significant they opportunities and where from existing us have health new going we're So, we perform, potentially of otherwise a that going just an into in continue I markets, even and more come often tranche and markets

opportunity be XXXX. we it pretty could a So, significant in think

Brian Tanquilut

just Kevin, questions couple then quick it. a of Got And here.

you what color synergies? can ‘XX improvement what the for acquisitions have then credit from And in the EBITDA leverage second give Thanks. and your facility? is, cadence part covenants you do any So,

Kevin Wirges

sure. Yes,

investments our those. adhere you ensure CareMax of we acquisitions that cadence a that benefits would reap standpoint, new from tell can obviously So, to those what making model is, so the we're I to

from So, MER And far the cadence then, an as steady think filed expect I would throughout those the as publicly. a are improvement year. I covenants,

have since or changed our filed We out amendment this of XXth January December year. out them there. early that nothing's we in

Brian Tanquilut

All it. right, Thank appreciate you.

Operator

session. the our the over question-and-answer We end comments. for back have turn would closing I Carlos reached conference of to to like

Carlos de Solo

forward everybody attending earnings today, to QX Great. and thank I’d you, XXXX. Thank and for like just everyone. excited our to we're look call

Operator

conference. today's conclude does This you. Thank

time, this for you at lines participation. thank your disconnect and your may You

CareMax (CMAXQ) 8 Mar 222021 Q4 Earnings call transcript