CMAX - Earnings call 1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the CareMax, Inc.

First Quarter 2023 Financial Results and Earnings Conference Call. Today's conference is being recorded. I Swerdlin, to Relations. Vice time, over the this Samantha to President Instructions] At would turn like conference [Operator of Investor go ahead. Please

Samantha Swerdlin

call. Executive joined this Good quarter by Financial Carlos President to Officer. Welcome Solo, morning Kevin Investor I'm our Wirges, de earnings Chief Chief of I'm morning, Vice and Samantha And CareMax's Relations. A. Swerdlin, Officer; everyone. XXXX first our

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

Carlos de Solo

impact that X call. plan developments progress our we performance, thank joining with our everyone, general and things An had adjusted our QX unfavorable review outlook. Starting have first our Samantha. you today. the EBITDA. you, revenue There Good on morning, and expanding had we made MSO performance, an of overview and our our I quarter Thank to for financial are

by $XX.X million. developments Specifically, X period recognize $XX.X adjusted we and prior million lowered revenue EBITDA QX by that together

The second discuss with higher was membership MSL more first QX, will Kevin detail. of and to the plans acuity development was our admissions which related in health in to related one

is quarter the While prior of based isolated MSO QX believe risk was development PPD period period anomaly terms nature CareMax, common was providers acuity for and some related the like execution an RSV, And remained impact. its to to an membership period. Despite in strategy. earlier these with a we than our during in reflecting a expectations, came disciplined admissions the of flat flu normal even overall headwinds, the coupled season, ahead for results though our underlying of

performance period QX prior We encouraged runway of guidance our XXXX and by are despite developments. to achieve our the expect

undrawn draw of $XX with sufficient to of As cash cash free of $XX we capacity QX reach million in term XXXX. sustainable had the and believe approximately capital We this bridges flow on that million our loans. delayed by end, quarter provides us to

platform year, compared Now arrangements MA to Medicare for in grow. the the full as XX,XXX lives billion last expect all ratio of the was currently expense of XXXX partial to for to risk. full XX.X% in nearly of be management. periods prior platform revenue due QX current are XX% By Advantage turning in highlights these quarter. impact and arrangements. Medical pleased from our some end, primarily we our continues XX% to are risk We're $X.X quarter to our development. on report membership to risk approximately XX.X% But quarter Of representing from under that

downside taking XX full us approach markets, risk. risk take month scale As prudent to This typically we we allows discussed a during an new with to glide our recent take Day, XX limited to to Investor path profitable in approach physicians risk early markets the noting network. full opportunistically our while to new gain that contracts during in in and we MSO may year we management shift the risk implement we also our medical worth enter. It's practices,

If they not revenue higher you EBITDA incremental dollars yet shift [ to average historical but adjusted MSO and XX%. may to generate recall of drive above ] contracts and flow be we could risk when mature our MERs

negative electing adjusted MER we While EBITDA when the cash not full impact do risk accretive our is early in to and so may flow. guidance, of contemplated it's

on have quarter care. deliver to our solid consistent operational access and high ensuring the remain we to members continue at focused During centers performance quality our

we a XXXX. Moreover, us specialty house have cap initiatives measures is care in both network. providers are our to putting X of our have very our care quality our investments care in closed QX, XX have in our results beyond seen track at star that primary we core have accessible among set XX% encouraging. network over patient resulted over to for now sustained and proud XXth rating as already continue offer readily reach our specialties QX. Furthermore, in network. Last success. markets, our of Florida on our operating to through -- ensuring timely our XX% year expanded members the been multi-specialty to And preferred expanded services the centers of groups different in at percentile to and key access QX, Our report of quality our peer gaps we're deliver survey our experience And to as

During And in growth the member we de was XXXX XXXX strong. our now have over quarter, new novos. members new

agreements lower costs, comprehensive add lead in services. services expanded and class to recently to members provide New best we we're offering Additionally, podiatry and able our members. that nutritionist By these dental ultimately healthier with to outcomes, our services care designed in and house house York across is cardiology, in to have signed

The on in achieve confident targets of like Now that on MSO we our stored acquisition integration will update growth we're an to announced provide our expansion. membership we'd and is that we March. our VBC track

operational participating resources MSO based they effectively to teams monthly best operating into review working and our are the where excited can groups our in what is and centers that committee We in joint practices need opportunity. Each clinical about network with performance, to closely care. implemented be market meetings the are affiliate they from value and we practice combined MSO the the

As ingestion on ingestion contracts. We've we Investor access payer EMRs also the the progress we we're we stored of infrastructure built clinical we our that CareMax optimized pleased VBC have continually of to as the the XX new majority and accurate connecting optimize. our transition technology over portfolio that can completed timely to in detail and almost all payer to side EMR Day operations data stored our we're discussed report for into data care provider our platform insights network making at data and internal are of teams. Furthermore, an contracts into claims significant accelerate payer and connector our and provide to contracts so to now care have from expanding

and the platform As our effective technology enabling better year members of we our to progresses, expect see high care further us and through serve to efficient quality deliver implementation management. data

capabilities technology In to are recent incorporate addition, we our developments. improving

even care new we stratification, module manage provide and for enable machine quarter and which better to condition risk launched is learning This for -- chronic our strict personalized acuity a to members. efficient us more designed to

burden to to continue enhancing care teams. drive intend for administrative and we our reduce technology the forward, operational optimize care our efficiencies and Moving developing

run quarter you ultimately details today, approach capital achieve term term growth in our that, us finding now where both ability manner. We our a through as growing We healthcare the rate have financial will the remained long didn't to confidence in our and on gives ] the to turn shareholders. objectives. In and our I'll for this to out, more dedicated to we this over over efficient expected, to our short due performance our delivery updating coming deliver turn CareMax forward it prior quarter. Although believe are in provide QX to on [ things period revolutionizing progress to best returns discipline developments, the Kevin months. With we look

Kevin Wirges

Thanks, proud developments medical morning. our to we unlocking value business March report which our progress We're Day. Noncurrent is way manage conservatively. meaningful envision integration in at are acquired to expenses and Investor and part well the in our normal the of VBC, Carlos, and membership, revenues business good on a we our are why of liquidity MSO and

approximately delayed continue to end, draw is loans, we sufficient to sustainable quarter XXXX. $XX had undrawn by and bridge which in believe cash of term million $XX us to free QX million flow of we As cash

raise short, with bullish to we the ability the to revolving and and us. have we super to earlier believe capital planned. position, MSO transitioning our further on up $XX remain priority opportunity than profitable facilities. we of ahead levers upside comfortable have Additionally, In full risk are million we And we current from contracts

still is explain walk through the achievable. quarter believe will and full our first you and XXXX our I takes year guidance Now of why we results puts

As earnings adjusted reconciliation found can our release and GAAP a EBITDA reminder, be non-GAAP a to like of presentation. in metrics

revenue, novo back revenue de quarter, reported EBITDA began doing of make we up REIT million, item, revenue value-based year-over-year, million, XX% new XX% acquired which MSSP Medicare up was Medicaid As de all quarter adjusted to pertain representing losses revenue preopening and adding we cost risk line XX% a care $XXX total $XXX no our last ACO up first current $XX or I $XX risk to novo year-over-year. definition. We government EBITDA, are references and introduced adjusted was to year-over-year. We've and post-opening businesses. is our longer million, million,

growth XX% year-over-year, in EBITDA MSO burdened novo top capitation in-house driven $X the shortly. loss to pharmacy. Platform was $XX adjusted was up and contribution which losses, well largely cost revenue was and headwinds $XX.X up Finally, by million, I our QX. Net despite in post-opening million, breakeven, other will XX% as approximately as de $XX was explain million due by being preopening fully line year-over-year totaled million, together

to received sort full of health the from unfavorable development our to of related QX, contract both by These and $XX.X partially onboarding we data fundamentals Florida our for of or stock corresponding this MSO and true-up believe Lastly, $XX one nature expenses, have offset to previously impacted million cash be of of was [ business. Regularly, no revenues limited of our driven and medical plan often $X.X impact which by plans to on ] of a true-ups the revenue $XX updated figures. revaluation other risk quarter, size In the impairment at to anomaly, partners Medicare in decline impact million, million isolated membership our plants. health contain MSO an goodwill recognized period this of margin. We of a membership million metical by a risk risk with single we with in to price reported from earn-out the during charge prior liabilities.

We season RSV. This not expenses. XX.X% in QX MSO South our unfavorable MER we that MER the by During ratio was per medical increase Florida, as a of can the high remained we period to attributed of during materially which from rates as by development an in and stable of prior in worth medical million be earlier-than-normal that an QX important [ ] was saw the mention drove to well earlier. unseasonably when represents noting impacted cases to It's flu believe admissions of the expense discussed compared quarter medical relatively XX.X%, quarter, QX, $X.X unfavorable PPD PPD expense elevated QX. It's impacted membership as even our admission XXXX. cost

As in million of reflective still the margin run million impact PPD, EBITDA. a achieve profitability. Even our with that headwind medical are believe revenue $XX EBITDA to and combined in million us revenue rate was earnings to million presentation, can adjusted $XXX several you in PPD we and $XXX to $XX not factors guidance $XX $XX the our of our see million adjusted we XXXX believe and a quarter million the headwind enable

is to First, our run off to PPD, our to budget. the favorable start year medical margin excluding a compared the rate,

MSO positive transition and that risk planned. extent doing so the medical earlier full to may identify risk, profitable able Second, pull contracts we than margin to to full we forward are believe to revenue

cash to As impact to full when EBITDA transition an term despite a favorable in be to unfavorable and flow. reminder, sooner, we may adjusted the there MER risk impact the near

service cash was acquisition-related interest QX, used Moving of significantly other as Cash $X debt adjustments in in restructuring EBITDA costs. in operating adjusted and decreased Cash million including add-backs from prior to activities nonrecurring roll on. $XX off QX million quarters. and

are like M&A more adjustments see QX, underlying add-backs the smaller believe of in power useful activity, the than to have business. illustrate continue experienced To the we past. We earnings our to in we limited extent our expect to

recognized in until year and MSSP continue shared almost build-out VBC to arrears. we continued which continue We savings, important accrue CapEx, to as receivable. XXXX performance understand of de to current paid Absolute expect to but related the working AR grow pipeline dollars not accounts however, to we increase of ACO as business, dynamics capital in particularly will the a around novos. It's are our the REIT year,

related up as and and also will to We payments time ] to require see the [ MSO increase Advantage partners service produce processes our out help of contracts AR newer Medicare make funds. to set

expect net Finally, risk denominator as an the appropriate DSO calculations and for medical to margin, grow, our that to costs. of AR legacy CareMax accrue final is AR higher we accrual external of business continues for settlement. Remember represents full midyear amounts the so revenue, provider less adjustment

was appropriate MSSP prior may line doing in period in QX DSO quarter receivables the million materially historical should cause with so, AR developments, $XX we For comparisons, otherwise find exclude to levels. approximately which and in for also DSO. normalized first volatility related the In

favorable second of those flows by midyear the in cash be In the the driven in terms sweeps. half, first of to expect AR and to seasonality, the year we half final

towards we Additionally, reiterate, comfortable our repayment in XXXX a able capacity remain cash with the million ]. facility we the MSSP XXXX, undrawn we shared accounts of for we expect next to to year ability transaction. our debt novo with our had flow undrawn savings MSO access into Beginning unchanged. Operator, the prudently savings QX $XX QX, will to the drawn receive loan towards expect We the term million performance $XX ready to will commitment believe entered DDTL funded cash part from receive of reach go investing and and sufficiently our our keep for which capabilities our our de of are XXXX. In $XX QX by year, of this Steward outlook, service payment to [ the end ended delayed for payment in receivable year, we and be We remaining. of to fall, portion have DDTL expansion MSSP when profitability MSSP $XX remains million shared payments. To meantime, and as performance leverage are -- million capacity. of Since the we we questions. another our draw

Operator

[Operator our first at Instructions] UBS. Andrew We'll take Mok question from

Andrew Mok

I wanted comments X better. I around the to understand appreciate but the dynamics all better development,

were us the MSO underlying for drivers help development side? can of are the on IBNR negative members? how what conducted affiliate the And understand First, estimates you

Kevin Wirges

Andrew, Yes. it's Kevin.

received membership. course had a as of we periodically, business we plan updated health do, information occasionally, for So us. received We typically from our that normal in information decrease

And so retrospectively, pushed information, IBNR which decrease we are through that obviously use aggregated with in we period this membership prior standpoint, created that an development. From the contracts together. that

IBNR look health and we at when it the actually So setting reserves, on at level. look we plan

within And owned The There's so process you same processes difference payment MSO, it's plans between X. plan And patterns ] [ our those so those for for see. the centers. doing simultaneously. typically in same no wholly it's the the would health that

when we're aggregating data together so estimating plan And our comfortable using health factors. the completion --

Andrew Mok

Got it.

earlier also RSV. that admissions I an from benefit have that for. due wasn't but a an there to experience, Okay. an XQ trended flu COVID fewer higher offsetting elevated quarter understand And admissions in would secondly, the noted that you reserved bit you and

coming is much why so the in So total costs respiratory higher?

Kevin Wirges

Yes.

actually were look flat admissions total to the when at QX So data. we

it sounds that cost So we're admission of elevated was there number cases. seeing an was like per is higher. What the

sooner little among QX seeing just relatively consistent looks of flu that COVID like instead season than are a was We i.e., anticipated, quarters. But was it we QX.

that make in adjustment quarter. to needed we so And this financials the

Carlos de Solo

Yes.

admissions a acuity look right, with complications as per Let's the RSV data higher data, basis. we admission fluid of respiratory to kind the further at of say, along the at on when look we that led is and those just the

in we QX experienced flu market as our about towards to with Florida, heading QX. typically of those South in in what that we we And season that data the we and earlier. core especially year led generally, is complications and end this start So us happened at saw think when admissions the that further look

Andrew Mok

it. Got

forward pulled from the think flu you So season QX?

Carlos de Solo

right. That's

Andrew Mok

Okay. the $XX trend quarter-over-quarter the how million that What like increased and expect increase? And corporate it million looks throughout year? are year-over-year. drivers then that we to should $X of G&A about finally, And

Kevin Wirges

to of that's Yes, attributable BBC solely the business. Steward the acquisition

XX you remember, we XX If FTEs. onboarded to

couple that only additional or months We X.X operating had months, costs to so of We have a in operate business. QX. basically

I standpoint, in We have say And also have payroll you period. from right, or you this full that would higher typically the knockout. a taxes payroll QX, seasonality pay folks

a you have seasonality little So bit there. in of

would think I from that we minor standpoint. an from SG&A bumps standpoint, assume

we point. to this of costs growth and cost to is to incremental most onboarded we've managing think that manage I book on that the at going the we of brought The be business. need additional

Operator

Tanquilut Brian take next from question We'll Jefferies. at our

Taji Phillips

You've got Taji Brian. on for

back to So going conversation. PPD the

If of QX, to you on midpoint. you would if have EBITDA, numbers, adjusted guidance using EBITDA you're in roughly track which do half million you the $XX.X your at done look the like of puts

the my So guidance? magnitude the of understand something as surprise, From is, of about of you we and a from then thinking seems much It's follow-up, it be is clearly did how larger the happens. generation you like that with not should EBITDA commentary, question it what was expected. And but than headwinds this because how your the TBD seasonality I have throughout a year? baked

Kevin Wirges

question. Yes. Good

reasonable think I we to and wanted We late make year. with sure took achievable. prudent Steward last came look, that we guidance We approach. ingested out a that So was

so And in period prior development? bake did we We didn't.

QX some sure essentially, you is, make would to of of we pull in levers did would would this QX last flu we expect it, wanted about We this QX. like that I also the think we of to. What year, if we say probably QX kind if have recognizing could year. that However, look needed you're year

whammy have think So you is about kind the in a XXXX. you flu of it double way

before improved - ratio past expense benefits. folks about I the is a think as typically we've this of throughout and typically, from medical the talked quarter in So

in. What with say, EBITDA start year, relatively is, quarter-on-quarter, are going expenses the little 'XX limitations to the reason would maybe is QX starts on, normally novos expect consistent de would will You additional anticipated. had we of in to coming to pharmacy hitting on associated a them. being loss flu top in number the we side, see more have see we addition have a kicking to would we later I the in then because than expect which and that, And

Carlos de Solo

amount is right, being tremendous key ingested in were in we've we that said, in that, just think guidance of to there able with wanted being and said to ingested a conservative sure Yes. this several We earlier contracts always that than what certain our make potential we've I markets. upside we've acquisition. respect discussed in with our and right, membership expected we've trigger to risk numbers. Having

So I us about kind think think of next and the our that's as we as long-term encouraging guidance year for well.

this this as and don't PPD about the think we of plans we one from kind with true-ups that expect Certainly, while business. we again magnitude, that normal true-up, So of an as MSO as we that of and membership lot unusual. perspective, the and a typically think is ingested it's part that size experience health now, anomaly we

Taji Phillips

the full appreciate I just and laid my Then at really out, Right. follow-up other risk Kevin. I question your if deck, you've got look and slide looking it at there, care. like Carlos value-based color is, well

risk talk some flows in I what Like gain on versus between share So like and of and can Day gain how versus percentage more the the Investor and bucket, in like risk, then to the clear it details economics between your capitation maybe you can you are well? delta what the about break and the relative that difference partial just different other value-based as right looks is you patients share were full curious, MA that out partial risk through. But other provide care right? in think very capitation

Carlos de Solo

de I not gain significant from and University on, Yes. would members. dollar Early standpoint. enter specific, expecting those. value-based new markets, That's from is our -- ingesting a CareMax share positions amounts on Each market care. into We're to on standpoint. novo it's we're be as unique market new say, we We're educating going that

risk so look it we component, standpoint. lot And value - don't we of from we're -- putting not upside unlocking partial just that or we a a as in guidance

South would most risk. percent But obviously South little different, of Florida our right? cured is is full Florida I our of in contracts what say contracts, are XX-plus a already

is accrual, legacy well the you I and as REIT. the MSSP in piece that's MSO the upside would external carotid the or bonus specifically is any clients. share, government revenue, [ from think revenues gain ] India other care where and value-based Other pharmacy important HEDIS [ to revenue ACO as application find care note the ]

Operator

Raskin We'll Joshua Nephron Research. move next to at

Joshua Raskin

verification? Do Could how the patients just you? there in is there never period you seen just actually seen from getting of these I'm patients were Or book terms paid you you kind help some members. they what just curious verification these or revenue us plans? you were had these sort that that around prior what were process pay is had adjustment? for Like were but of of the

Kevin Wirges

Kevin. Josh, it's

business early standpoint. So conversations had Those were the multiple from with than MSO we have showing health MSO Florida patients received health plans. plans as health provided these our profitable an what that information us more ingested on we've last capitation plans, we year,

for from trigger the plans tell talking Steward. I would a on decide takes to ahead to time risk information, pull we're we it the size the network And quite acquired bit that and you component. What especially we of full go so the about when load did that of health is

IDs, health loading can the reports from the ID so plans. generated, And start so and those set under being our takes up just tax contracts tax NPIs getting the time

so information open as expense, So book communication we our out medical we have reach revenue them health We them. and and well as with to constant appropriately that membership. can communication manager obviously, request with

of information we received the make from received we and to needed we went that this said, in quarter based okay, that -- off so information adjustments back quarter. And just some this prior standpoint, updated we we period

Joshua Raskin

now? Like will back? CareMax eventually are that members these this going members to were come be So

Kevin Wirges

that contract, no. In no. particular No,

though. with national We health plan. It's a plan the are health working

areas So opportunities for other them working outside membership of in with we grow potential to Florida. are

Joshua Raskin

second Okay. MA percentages And where think you specifically, higher cap working are plans you it expecting you the the find where your just benefit clinics? to be in guys are you XXXX? negotiate do going reductions any with necessary. you willing then are And service have How areas And question. to plans for

Carlos de Solo

would I say go then... ahead, – And Kevin.

Kevin Wirges

No, now, going there it's I early would phasing the win in is was I years. to that the a seeing the as a say, little X off right but headwinds from of we're STAR standpoint, what yes, that over based say of kind obviously, with was well model the there as,

little at I early the but a day, So think us the down will from benefit think a revisions end that. to on slight comment for standpoint, of I it's there be too

Carlos de Solo

meaningful That's potentially little benefits, a really way what I a is that benefits It's potential it still lot with spreading we are to out the easier member's years. some Florida, or do initial anticipate conversations and are, health over kind have are to period, but cetera think potentially, X-year adjustments next bit overall where say. in make. South But be a fairly we in phase-in think a probably those over going to reduction a i.e., outcome, I et that I still aggressive. But of several supplemental impact this kind CMS like wouldn't especially especially rich to cards Yes. of those things to was gift some reduce I early, that as X-year think this of is and

Operator

Piper Tassan to Sandler. next move at Jessica We'll

Jessica Tassan

ACO want that it like assume the very PMPM -- to of or is to sure at I looks revenue a I perspective. So just look and it how if reach, includes if other attributable government in value-based I care still line, ACO reach that just revenues possible kind from I that, the all I if understand, make PMPM MSSP, low

where the be just revenue? aren't why just we [indiscernible]? MSSP the yes, for where expect them is I PMPMs And would guess, So to

Kevin Wirges

it's Kevin. Jeff, Yes.

line taking revenue of in most of from MSSP, And this so -- our net right? on XX% that booking are start REITs, the contract, a this MSSP we risk standpoints, is on of So So right? on side. not those patients are this item both And with we're under the either, basis. not taking of ACO full most we

So to that quarter is that the shared would X of we to expect obviously, shared essentially savings next year. receive, dollars receive this we would savings expect

Jessica Tassan

XXX% get can or Got you just are CareMax And it. in to Okay. the share to track. then XXXX? shared Steward return passed those that remind earned kind retain generated obligation does and all the generated XXXX slides of And in with to in that's of us savings MSSC enhanced that savings

Kevin Wirges

when Yes. would The I offers book risk enhanced track. perspective, upside, the book don't contract And from full is say, accounting a why are the full all enhanced but lives the track on MSSP is which while we more December, Steward. considered in revenue not it still an and only the then we will of service to go then and from right membership of corresponding November, the ingested November, shared of dates corresponds to savings. This us. But that kind corresponds the to year's MSSP XXXX payment, to payment piece payment Steward of part the kind

Operator

Securities. question Jailendra We'll go to Truist Singh our from at next

Eduardo Ron

for This Jailendra. is Joe Eduardo Ron on

lives how MA XXX roll the quarter had the already contracted end your throughout guys for target XXX,XXX. to on and lots there at the should year-end to And for? is that's year. those anything of XX,XXX we You I Is expect guess,

Kevin Wirges

Yes.

the over and core of other markets acquisition adding groups So coming that core in other is coming in membership provider Steward is our the course loading of from several of additional contracts part growth that the the the and from year. are remainder in the our from part

combination a it's of... So

Eduardo Ron

impact guess And count you guys talked about potentially pulling forward some live there. the that full mean I wouldn't risk revenue. I

Kevin Wirges

it Well, we EBITDA risk recognition would lives, the what membership from is our impact the that risk margins of wouldn't revenue have transition already and on partial the full the platform. to impact that

Eduardo Ron

Right.

XX% XX% again, risk prior towards expectation the pull a I sort MLR? outlook, you revenue pointing forward outlook? Or to MLR. the potentially a guys at put think like some Is the updated still higher of full that in you of you this of is sort

Kevin Wirges

Yes.

business the to MLR I standpoint, to MLR. think from the we're an going manage not

understand I for and can the identify think actually percentage. performing plan quarter are $XX from And small substantial going ratio, our $XX, making legacy is earnings, incremental generate to pulled opportunistic. ahead to there's to deterioration that few using medical ensuring what off is additional where has information in loss contracts trigger the we centers just earning and MLR a cap that and received we If or thousand went were dollar it, plus XX% performance. We're the we're a the X PMPM this X mid-teens we that. no of where be at PMPM. health that patients. We We but it they're on call the we're going a from, identified

So meaningful pull the MER it's or deteriorate MER. increase, overall even company a pretty will the average though down

Eduardo Ron

guess last And How to one, compared affiliate quarter? in your on Right. your center MER MER the that. did just own I

Kevin Wirges

to Are range. them returning be in where centers we expected kind that of XX%-ish

PPD, up. of would would the clinics even the a portion is lot in, say, again, QX related expect that MSO, were typically was the where low our So portion a that, I there's for we to XXs, it of but the which to specifically we not account as end

Operator

from our take we'll at question Gary next Cowen. Taylor And

Gary Taylor

questions. Two

again. understand just to I thing sorry, want first make The sure the -- I MSO

to contribution of revenue related correct? All was 'XX. that Is that and EBITDA

Kevin Wirges

Yes, that's correct.

Gary Taylor

answers, you related correct? the that referenced that Steward, -- I Florida but of this one had Steward thought I your I MSO. know you'd Florida, to was you And not in but is Is thought said --

Kevin Wirges

last recall, coast where began early space we their managing you with lives. a Steward Yes, year, Gary, pilot we ran if specifically

Gary Taylor

Okay.

that wrong, seems had like Steward take maybe I half that. lives be math I'm So to almost If that X,XXX is offline. to like my of happy thought and only burden

Kevin Wirges

have the to that discussion. Yes, of that. number happy I Yes, north think was

Gary Taylor

one actually out had and for to other flow last topic. settled me sitting in like Or words, implications, on this flow? then there this And cash Were AR Okay. give and cash this impacted fully back in net is you cash accrual? had your just that

Kevin Wirges

in a everything takes Yes, process reports plans accrual, payments. the right. long actually No. time give absolutely net It's generated AR unfortunately, you're the under and one get it just to sitting contract,

cash no So generated.

and contracts we in didn't immediately such on because when in other specifically XXXX is future, know we risk takes thing time make the at get getting flip the think those anytime estimates would future prudent any long we those a looked -- to I I a took flows, approach for we that the just loaded. cash to it near say payments

Gary Taylor

me. for one Last

confirm, EBITDA targets. those the reiterated to and the basically targets to reach quarter right? and to EBITDA GAAP just those the and using On revenue in still Is get -- that you're ] the results, guidance, the going [ X revenue then the $XXX

Kevin Wirges

Yes. That's correct.

Gary Taylor

Perfect.

Operator

Solo for closing question-and-answer turn over remarks. I the session. And does Carlos like to the that this At conference any de would conclude back to time,

Carlos de Solo

you. Thank

So call to a I'd behalf great to our the day. progress, today. for on you team, like everybody thank We our just have and of joining on updating look forward

Operator

you call. conference today's concludes participation. Thank your for that And

disconnect. now may You

CareMax (CMAXQ) 10 May 232023 Q1 Earnings call transcript