☒ 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 | ||||||||
(in thousands, except share and per share data) | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 47,847 | $ | 163,170 | ||||||||||
Accounts receivable, net of unpaid service provider costs | 200,990 | 133,433 | ||||||||||||
Prepaid expenses and other current assets | 38,466 | 20,632 | ||||||||||||
Total current assets | 287,303 | 317,235 | ||||||||||||
Property and equipment, net | 106,198 | 85,261 | ||||||||||||
Operating lease right-of-use assets | 168,554 | 132,173 | ||||||||||||
Goodwill | 777,163 | 769,667 | ||||||||||||
Payor relationships, net | 561,733 | 576,648 | ||||||||||||
Other intangibles, net | 234,127 | 248,973 | ||||||||||||
Other assets | 6,327 | 13,582 | ||||||||||||
Total assets | $ | 2,141,405 | $ | 2,143,539 | ||||||||||
Liabilities and stockholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of notes payable | $ | 6,444 | $ | 6,493 | ||||||||||
Current portion of finance lease liabilities | 1,561 | 1,295 | ||||||||||||
Current portion of contingent consideration | 198 | 3,123 | ||||||||||||
Accounts payable and accrued expenses (Related parties comprised $1,475 and $144 as of June 30, 2022 and December 31, 2021, respectively) | 69,419 | 80,829 | ||||||||||||
Current portions due to sellers | 4,317 | 17,357 | ||||||||||||
Current portion of operating lease liabilities | 20,726 | 15,275 | ||||||||||||
Other current liabilities | 39,390 | 36,664 | ||||||||||||
Total current liabilities | 142,055 | 161,036 | ||||||||||||
Notes payable, net of current portion and debt issuance costs | 914,890 | 915,266 | ||||||||||||
Long term portion of operating lease liabilities | 157,408 | 122,935 | ||||||||||||
Warrant liabilities | 22,807 | 80,144 | ||||||||||||
Long term portion of finance lease liabilities | 2,923 | 2,181 | ||||||||||||
Contingent consideration | 27,800 | 35,300 | ||||||||||||
Other liabilities | 32,525 | 28,109 | ||||||||||||
Total liabilities | 1,300,408 | 1,344,971 | ||||||||||||
Stockholders’ Equity | ||||||||||||||
Shares of Class A common stock $0.0001 par value (6,000,000,000 shares authorized and 218,028,952 and 180,113,551 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 22 | 18 | ||||||||||||
Shares of Class B common stock $0.0001 par value (1,000,000,000 shares authorized and 264,527,434 and 297,385,981 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 27 | 30 | ||||||||||||
Additional paid-in capital | 495,642 | 397,443 | ||||||||||||
Accumulated deficit | (83,433) | (78,760) | ||||||||||||
Total Stockholders' Equity before non-controlling interests | 412,258 | 318,731 | ||||||||||||
Non-controlling interests | 428,739 | 479,837 | ||||||||||||
Total Stockholders' Equity | 840,997 | 798,568 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,141,405 | $ | 2,143,539 |
(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 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Capitated revenue (Related parties comprised $0 and $128,394, in the three months ended June 30, 2022 and 2021, respectively, and $0 and $308,204, in the six months ended June 30, 2022 and 2021, respectively) | $ | 655,493 | $ | 329,484 | $ | 1,329,844 | $ | 590,841 | ||||||||||||||||||||||||
Fee-for-service and other revenue (Related parties comprised $0 and $219, in the three months ended June 30, 2022 and 2021, respectively, and $0 and $631, in the six months ended June 30, 2022 and 2021, respectively) | 33,880 | 14,097 | 63,671 | 27,342 | ||||||||||||||||||||||||||||
Total revenue | 689,373 | 343,581 | 1,393,515 | 618,183 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Third-party medical costs (Related parties comprised $0 and $115,975, in the three months ended June 30, 2022 and 2021, respectively, and $0 and $249,819, in the six months ended June 30, 2022 and 2021, respectively) | 541,317 | 291,816 | 1,077,097 | 486,862 | ||||||||||||||||||||||||||||
Direct patient expense (Related parties comprised $3,064 and $58, in the three months ended June 30, 2022 and 2021, respectively, and $4,518 and $1,488, in the six months ended June 30, 2022 and 2021, respectively) | 52,647 | 35,607 | 113,323 | 69,844 | ||||||||||||||||||||||||||||
Selling, general, and administrative expenses (Related parties comprised $3,305 and $1,840, in the three months ended June 30, 2022 and 2021, respectively, and $5,452 and $3,763, in the six months ended June 30, 2022 and 2021, respectively) | 106,179 | 47,159 | 202,849 | 82,168 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 19,836 | 7,945 | 38,872 | 13,791 | ||||||||||||||||||||||||||||
Transaction costs and other (Related parties comprised $0, $1,465, in the three months ended June 30, 2022 and 2021, respectively, and $0 and $1,483, in the six months ended June 30, 2022 and 2021, respectively) | 6,207 | 16,114 | 14,583 | 25,068 | ||||||||||||||||||||||||||||
Change in fair value of contingent consideration | (5,764) | (496) | (10,425) | (211) | ||||||||||||||||||||||||||||
Total operating expenses | 720,422 | 398,145 | 1,436,299 | 677,522 | ||||||||||||||||||||||||||||
Income (loss) from operations | (31,049) | (54,564) | (42,784) | (59,339) | ||||||||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||||||||
Interest expense | (13,134) | (9,714) | (26,418) | (20,340) | ||||||||||||||||||||||||||||
Interest income | 2 | 1 | 3 | 2 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (13,225) | (1,428) | (13,225) | ||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 30,175 | 39,215 | 57,337 | 39,215 | ||||||||||||||||||||||||||||
Other income (expenses) | 251 | (25) | 530 | (25) | ||||||||||||||||||||||||||||
Total other income | 17,294 | 16,252 | 30,024 | 5,627 |
(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 | ||||
Net income (loss) before income tax expense | (13,755) | (38,312) | (12,760) | (53,712) | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 809 | (2,023) | 1,889 | (1,309) | ||||||||||||||||||||||||||||
Net income (loss) | $ | (14,564) | $ | (36,289) | $ | (14,649) | $ | (52,403) | ||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (9,231) | (40,844) | (9,976) | (56,958) | ||||||||||||||||||||||||||||
Net income (loss) attributable to Class A common stockholders | $ | (5,333) | $ | 4,555 | $ | (4,673) | $ | 4,555 | ||||||||||||||||||||||||
Net income (loss) per share attributable to Class A common stockholders, basic | $ | (0.03) | $ | 0.03 | $ | (0.02) | $ | 0.03 | ||||||||||||||||||||||||
Net income (loss) per share attributable to Class A common stockholders, diluted | $ | (0.03) | $ | (0.06) | $ | (0.03) | $ | (0.06) | ||||||||||||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 210,053,037 | 167,134,853 | 200,783,129 | 166,691,634 | ||||||||||||||||||||||||||||
Diluted | 474,580,471 | 168,884,315 | 465,310,563 | 167,571,198 | ||||||||||||||||||||||||||||
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 | ||||||||||||
(in thousands, except shares) | Members' Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Accumulated Deficit | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—March 31, 2022 | — | $ | — | 205,026,367 | $ | 20 | 276,722,704 | $ | 28 | $ | 464,262 | $ | (78,100) | $ | 451,567 | $ | 837,777 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 17,783 | — | — | 17,783 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of restricted stock units | — | — | 807,315 | 1 | (5,086) | 5,085 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class B common stock for Class A common stock | — | — | 12,195,270 | 1 | (12,195,270) | (1) | 18,682 | — | (18,682) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (5,333) | (9,231) | (14,564) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2022 | — | $ | — | 218,028,952 | $ | 22 | 264,527,434 | $ | 27 | $ | 495,642 | $ | (83,433) | $ | 428,739 | $ | 840,997 |
(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—March 31, 2021 | 14,629,533 | $ | 157,662 | — | $ | — | — | $ | — | $ | — | $ | (135) | $ | (123,943) | $ | — | $ | 33,584 | |||||||||||||||||||||||||||||||||||||||||||||||||
Retrospective application of reverse recapitalization | 292,214,129 | (157,631) | — | — | — | — | 157,631 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADJUSTED BALANCE—March 31, 2021 | 306,843,662 | 31 | — | — | — | — | 157,631 | (135) | (123,943) | — | 33,584 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss prior to business combination | — | — | — | — | — | — | — | — | (49,102) | — | (49,102) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination and PIPE financing | (306,843,662) | (31) | 166,243,491 | 17 | 306,843,662 | 31 | 169,093 | — | 112,306 | 491,677 | 773,093 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 3,609 | — | — | — | 3,609 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | — | 4,055,698 | — | — | — | 60,000 | — | — | — | 60,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of transactions affecting non-controlling interests | — | — | — | — | — | — | (34,094) | — | — | 34,094 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable - related parties | — | — | — | — | — | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | 4,552 | 8,258 | 12,810 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2021 | — | — | 170,299,189 | $ | 17 | 306,843,662 | $ | 31 | — | 356,239 | $ | (136) | $ | (56,187) | $ | 534,029 | $ | 833,993 |
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 shares) | Members' Capital | Class A Shares | Class B Shares | Additional Paid-in Capital | Accumulated Deficit | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2021 | — | $ | — | 180,113,551 | $ | 18 | 297,385,981 | $ | 30 | $ | 397,443 | $ | (78,760) | $ | 479,837 | $ | 798,568 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 31,600 | — | — | 31,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of restricted stock units | — | — | 807,315 | 1 | — | — | (5,086) | — | 5,085 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | — | 2,857,167 | — | — | — | 15,771 | — | — | 15,771 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class B common stock for Class A common stock | — | — | 32,858,547 | 3 | (32,858,547) | (3) | 51,765 | — | (51,765) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan Issuance | — | — | 1,392,372 | — | — | — | 9,707 | — | — | 9,707 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of transactions affecting non-controlling interests | — | — | — | — | — | — | (5,558) | — | 5,558 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | (4,673) | (9,976) | (14,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2022 | — | $ | — | 218,028,952 | $ | 22 | 264,527,434 | $ | 27 | $ | 495,642 | $ | (83,433) | $ | 428,739 | $ | 840,997 |
(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) | $ | (107,832) | $ | — | $ | 49,625 | |||||||||||||||||||||||||||||||||||||||||||||||||
Retrospective application of reverse recapitalization | 292,214,129 | (157,560) | — | — | — | — | 157,560 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADJUSTED BALANCE—December 31, 2020 | 306,843,662 | 31 | — | — | — | — | 157,560 | (134) | (107,832) | — | 49,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss prior to business combination | — | — | — | — | — | — | — | — | (65,213) | — | (65,213) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination | (306,843,662) | (31) | 166,243,491 | 17 | 306,843,662 | 31 | 169,093 | — | 112,306 | 491,677 | 773,093 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 3,680 | — | — | — | 3,680 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisitions | — | — | 4,055,698 | — | — | — | 60,000 | — | — | — | 60,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of transactions affecting non-controlling interests | — | — | — | — | — | — | (34,094) | — | — | 34,094 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable - related parties | — | — | — | — | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | 4,552 | 8,258 | 12,810 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2021 | — | $ | — | 170,299,189 | $ | 17 | 306,843,662 | $ | 31 | $ | 356,239 | $ | (136) | $ | (56,187) | $ | 534,029 | $ | 833,993 |
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 | |||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net loss | $ | (14,649) | $ | (52,403) | ||||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
Depreciation and amortization expense | 38,872 | 13,791 | ||||||||||||||||||
Change in fair value of contingent consideration | (10,425) | (211) | ||||||||||||||||||
Change in fair value of warrant liabilities | (57,337) | (39,215) | ||||||||||||||||||
Loss on extinguishment of debt | 1,428 | 13,225 | ||||||||||||||||||
Amortization of debt issuance costs | 1,570 | 8,541 | ||||||||||||||||||
Non-cash lease expense | 3,642 | — | ||||||||||||||||||
Stock-based compensation | 31,600 | 3,680 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (67,557) | (6,441) | ||||||||||||||||||
Other assets | 7,158 | (5,925) | ||||||||||||||||||
Prepaid expenses and other current assets | (17,834) | (16,341) | ||||||||||||||||||
Interest accrued due to sellers | 100 | 957 | ||||||||||||||||||
Accounts payable and accrued expenses (Related parties comprised $1,331 and $111 for the six months ended June 30, 2022 and 2021, respectively) | (9,362) | 14,426 | ||||||||||||||||||
Other liabilities (Related parties comprised $0 and $1,242 for the six months ended June 30, 2022 and 2021, respectively) | 10,621 | 7,816 | ||||||||||||||||||
Net cash provided by (used in) operating activities | (82,173) | (58,100) | ||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Purchase of property and equipment (Related parties comprised $3,567 and $2,864 for the six months ended June 30, 2022 and 2021, respectively) | (20,431) | (7,730) | ||||||||||||||||||
Acquisitions of subsidiaries including non-compete intangibles, net of cash acquired | (4,995) | (614,394) | ||||||||||||||||||
Payments to sellers | (3,847) | (23,963) | ||||||||||||||||||
Net cash provided by (used in) investing activities | (29,273) | (646,087) | ||||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Business combination and PIPE financing | — | 935,362 | ||||||||||||||||||
Payments of long-term debt | (3,222) | (402,572) | ||||||||||||||||||
Debt issuance costs | (88) | (11,274) | ||||||||||||||||||
Proceeds from long-term debt | — | 295,000 | ||||||||||||||||||
Proceeds from delayed draw term loan | — | 175,000 | ||||||||||||||||||
Repayments of delayed draw term loan | — | (2,350) | ||||||||||||||||||
Proceeds from insurance financing arrangements | 2,529 | 1,702 | ||||||||||||||||||
Payments of principal on insurance financing arrangements | (1,380) | (993) | ||||||||||||||||||
Principal payments under finance leases | (679) | (64) | ||||||||||||||||||
Repayment of equipment loans | (261) | (154) | ||||||||||||||||||
Employee stock purchase plan withholding tax payments | (776) | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | (3,877) | 989,657 | ||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (115,323) | 285,470 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 163,170 | 33,807 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 47,847 | $ | 319,277 |
Supplemental cash flow information: | ||||||||||||||||||||
Interest paid | 27,670 | 11,925 | ||||||||||||||||||
Income taxes paid | 82 | — | ||||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||
Right-of-use assets obtained in exchange of lease liabilities | 50,297 | — | ||||||||||||||||||
Issuance of class A common stock for acquisitions | 15,771 | 60,000 | ||||||||||||||||||
Contingent consideration in connection with acquisitions | — | 9,600 | ||||||||||||||||||
Due to sellers in connection with acquisitions | 3,533 | 295 | ||||||||||||||||||
Addition to construction in process funded through accounts payable | 3,580 | — | ||||||||||||||||||
Humana Affiliate Provider clinic leasehold improvements | 2,928 | 2,864 | ||||||||||||||||||
Employee stock purchase plan issuance | 9,707 | — | ||||||||||||||||||
Capital lease obligations entered into for property and equipment | — | 52 | ||||||||||||||||||
Equipment loan obligations entered into for property and equipment | — | 183 | ||||||||||||||||||
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 | |||||||||||||||||||||||
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 | ) | — |
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 |
(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 | ||||||
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 June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||||||||||||||
Capitated revenue | ||||||||||||||||||||||||||||||||||||||
Medicare | $ | 602,613 | 87.4 | % | $ | 284,974 | 82.8 | % | ||||||||||||||||||||||||||||||
Other capitated revenue | 52,880 | 7.6 | % | 44,510 | 13.0 | % | ||||||||||||||||||||||||||||||||
Total capitated revenue | 655,493 | 95.0 | % | 329,484 | 95.8 | % | ||||||||||||||||||||||||||||||||
Fee-for-service and other revenue | ||||||||||||||||||||||||||||||||||||||
Fee-for-service | 9,701 | 1.4 | % | 4,389 | 1.3 | % | ||||||||||||||||||||||||||||||||
Pharmacy | 12,759 | 1.9 | % | 8,217 | 2.4 | % | ||||||||||||||||||||||||||||||||
Other | 11,420 | 1.7 | % | 1,491 | 0.5 | % | ||||||||||||||||||||||||||||||||
Total fee-for-service and other revenue | 33,880 | 5.0 | % | 14,097 | 4.2 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 689,373 | 100.0 | % | $ | 343,581 | 100.0 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||||||||||||||
Capitated revenue | ||||||||||||||||||||||||||||||||||||||
Medicare | $ | 1,217,831 | 87.5 | % | $ | 505,659 | 81.8 | % | ||||||||||||||||||||||||||||||
Other capitated revenue | 112,013 | 8.0 | % | 85,182 | 13.8 | % | ||||||||||||||||||||||||||||||||
Total capitated revenue | 1,329,844 | 95.5 | % | 590,841 | 95.6 | % | ||||||||||||||||||||||||||||||||
Fee-for-service and other revenue | ||||||||||||||||||||||||||||||||||||||
Fee-for-service | 19,671 | 1.4 | % | 8,937 | 1.4 | % | ||||||||||||||||||||||||||||||||
Pharmacy | 24,274 | 1.7 | % | 15,523 | 2.5 | % | ||||||||||||||||||||||||||||||||
Other | 19,726 | 1.4 | % | 2,882 | 0.5 | % | ||||||||||||||||||||||||||||||||
Total fee-for-service and other revenue | 63,671 | 4.5 | % | 27,342 | 4.4 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 1,393,515 | 100.0 | % | $ | 618,183 | 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) | June 30, 2022 | December 31, 2021 | ||||||||||||
Accounts receivable | $ | 404,203 | $ | 227,889 | ||||||||||
Medicare risk adjustment | 74,220 | 21,072 | ||||||||||||
Unpaid service provider costs | (277,433) | (115,528) | ||||||||||||
Accounts receivable, net | $ | 200,990 | $ | 133,433 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | 64.7% | 64.6% | 64.9% | 67.5% |
As of | |||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
Accounts receivable | 56.3% | 43.3% |
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 | ||||
(in thousands) | 2022 | 2021 | ||||||||||||
Balance as of January 1, | $ | 129,110 | $ | 54,524 | ||||||||||
Incurred related to: | ||||||||||||||
Current year | 843,427 | 305,665 | ||||||||||||
Prior years | 2,576 | (519) | ||||||||||||
846,003 | 305,146 | |||||||||||||
Paid related to: | ||||||||||||||
Current year | 543,984 | 224,825 | ||||||||||||
Prior years | 120,997 | 54,005 | ||||||||||||
664,981 | 278,830 | |||||||||||||
Balance as of June 30, | $ | 310,132 | $ | 80,840 | ||||||||||
(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) | ||||
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 | ||
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 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 | ||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Intangibles: | ||||||||||||||||||||
Trade names | $ | 1,409 | $ | (865) | $ | 544 | ||||||||||||||
Brand names | 183,263 | (14,823) | 168,440 | |||||||||||||||||
Non-compete agreements | 76,273 | (19,768) | 56,505 | |||||||||||||||||
Customer relationships | 880 | (208) | 672 | |||||||||||||||||
Payor relationships | 609,687 | (47,954) | 561,733 | |||||||||||||||||
Provider relationships | 12,242 | (4,276) | 7,966 | |||||||||||||||||
Total intangibles, net | $ | 883,754 | $ | (87,894) | $ | 795,860 |
(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 | $ | (787) | $ | 622 | ||||||||||||||
Brand names | 183,238 | (9,037) | 174,201 | |||||||||||||||||
Non-compete agreements | 75,794 | (12,110) | 63,684 | |||||||||||||||||
Customer relationships | 880 | (184) | 696 | |||||||||||||||||
Payor relationships | 609,362 | (32,714) | 576,648 | |||||||||||||||||
Provider relationships | 12,242 | (2,472) | 9,770 | |||||||||||||||||
Total intangibles, net | $ | 882,925 | $ | (57,304) | $ | 825,621 |
(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 | ||
Amount (in thousands) | ||||||||
2022 - remaining | $ | 31,712 | ||||||
2023 | 58,351 | |||||||
2024 | 56,346 | |||||||
2025 | 54,713 | |||||||
2026 | 46,612 | |||||||
Thereafter | 548,126 | |||||||
Total | $ | 795,860 |
Operating | Finance | Total | ||||||||||||||||||
2022 - remaining | $ | 14,822 | $ | 956 | $ | 15,778 | ||||||||||||||
2023 | 32,204 | 1,536 | 33,740 | |||||||||||||||||
2024 | 30,027 | 1,256 | 31,283 | |||||||||||||||||
2025 | 27,173 | 822 | 27,995 | |||||||||||||||||
2026 | 24,898 | 311 | 25,209 | |||||||||||||||||
Thereafter | 99,714 | 43 | 99,757 | |||||||||||||||||
Total minimum lease payments | 228,838 | 4,924 | 233,762 | |||||||||||||||||
Less: amount representing interest | (50,704) | (440) | (51,144) | |||||||||||||||||
Lease liabilities | $ | 178,134 | $ | 4,484 | $ | 182,618 | ||||||||||||||
Operating | Finance | Total | ||||||||||||||||||
2022 | $ | 23,051 | $ | 1,485 | $ | 24,536 | ||||||||||||||
2023 | 24,577 | 1,078 | 25,655 | |||||||||||||||||
2024 | 22,561 | 797 | 23,358 | |||||||||||||||||
2025 | 20,489 | 364 | 20,853 | |||||||||||||||||
2026 | 18,424 | 107 | 18,531 | |||||||||||||||||
Thereafter | 67,569 | — | 67,569 | |||||||||||||||||
Total minimum lease payments | 176,671 | 3,831 | 180,502 | |||||||||||||||||
Less: amount representing interest | (38,461) | (355) | (38,815) | |||||||||||||||||
Lease liabilities | $ | 138,210 | $ | 3,476 | $ | 141,687 | ||||||||||||||
(in thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Service fund liability | $ | 18,477 | $ | 11,451 | ||||||||||
Acquired provider payments liability | 10,255 | 10,255 | ||||||||||||
Employee Stock Purchase Plan withholding liability | 1,774 | 10,494 | ||||||||||||
Other | 8,884 | 4,464 | ||||||||||||
$ | 39,390 | $ | 36,664 |
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) | |||
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 | |||
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 | |||||
(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 three months ended June 30, 2022 | |||||||
Balance at March 31, 2022 | $ | 8,189 | ||||||
Increases due to amounts collected | — | |||||||
Decreases due to revenue recognized | (652) | |||||||
Balance at June 30, 2022 | $ | 7,537 | ||||||
(in thousands) | For the six months ended June 30, 2022 | |||||||
Balance at December 31, 2021 | $ | 6,059 | ||||||
Increases due to amounts collected | 2,750 | |||||||
Decreases due to revenue recognized | (1,272) | |||||||
Balance at June 30, 2022 | $ | 7,537 | ||||||
(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 | ||
Years ended December 31, | Amount (in thousands) | |||||||
2022 - remaining | $ | 1,314 | ||||||
2023 | 2,628 | |||||||
2024 | 2,442 | |||||||
2025 | 1,111 | |||||||
2026 | 42 | |||||||
Total | $ | 7,537 |
(in thousands) | 2022 | 2021 | ||||||||||||
Term loan | $ | 641,211 | $ | 644,432 | ||||||||||
Senior Notes | 300,000 | 300,000 | ||||||||||||
Less: Current portion of notes payable | (6,444) | (6,493) | ||||||||||||
934,767 | 937,939 | |||||||||||||
Less: debt issuance costs | (19,877) | (22,673) | ||||||||||||
Notes payable, net of current portion and debt issuance costs | $ | 914,890 | $ | 915,266 |
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 thousands) | ||||||||
Year ending December 31, | Amount | |||||||
2022 - remainder | $ | 3,222 | ||||||
2023 | 6,444 | |||||||
2024 | 6,444 | |||||||
2025 | 6,444 | |||||||
2026 | 6,444 | |||||||
Thereafter | 912,213 | |||||||
Total | $ | 941,211 |
(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 | ||
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 30, 2022 | December 31, 2021 | ||||||||||||||||||
Exercise price | $11.50 | $11.50 | ||||||||||||||||||
Stock price | $4.38 | $8.91 | ||||||||||||||||||
Term (years) | 3.9 | 4.4 | ||||||||||||||||||
Risk free interest rate | 3.0% | 1.2% | ||||||||||||||||||
Dividend yield | NaN | NaN | ||||||||||||||||||
Public warrant price | $0.68 | $2.39 |
(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 | $ | 27,998 | $ | — | $ | — | $ | 27,998 | ||||||||||||||||||
Public Warrant Liabilities | 15,640 | 15,640 | — | — | ||||||||||||||||||||||
Private Placement Warrant Liabilities | 7,167 | — | — | 7,167 | ||||||||||||||||||||||
Total liabilities measured at fair value | $ | 50,805 | $ | 15,640 | $ | — | $ | 35,165 |
(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 | $ | 38,423 | $ | — | $ | — | $ | 38,423 | ||||||||||||||||||
Public Warrant Liabilities | 54,970 | 54,970 | — | — | ||||||||||||||||||||||
Private Placement Warrant Liabilities | 25,174 | — | — | 25,174 | ||||||||||||||||||||||
Total liabilities measured at fair value | $ | 118,567 | $ | 54,970 | $ | — | $ | 63,597 |
Fair Value Measurements for the Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Original Balance as of April 1, | $ | 86,744 | $ | 5,457 | ||||||||||
Change in fair value of contingent consideration | (5,764) | (496) | ||||||||||||
Warrants acquired in the Business Combination | — | 163,058 | ||||||||||||
Change in fair value of warrants | (30,175) | (39,215) | ||||||||||||
Additions to contingent considerations | — | 9,600 | ||||||||||||
Contingent consideration payments | — | (2,214) | ||||||||||||
Closing Balance as of June 30, | $ | 50,805 | $ | 136,190 |
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 Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Original Balance as of January 1, | $ | 118,567 | $ | 5,172 | ||||||||||
Change in fair value of contingent consideration | (10,425) | (211) | ||||||||||||
Warrants acquired in the Business Combination | — | 163,058 | ||||||||||||
Change in fair value of warrants | (57,337) | (39,215) | ||||||||||||
Additions to contingent considerations | — | 9,600 | ||||||||||||
Contingent consideration payments | — | (2,214) | ||||||||||||
Closing Balance as of June 30, | $ | 50,805 | $ | 136,190 |
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 | ||||
(in thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Total Assets | $ | 114,577 | $ | 80,445 | ||||||||||
Total Liabilities | $ | 88,037 | $ | 59,988 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Total revenue | $ | 24,754 | $ | 1,309 | $ | 39,072 | $ | 2,300 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Third-party medical costs | 18,792 | — | 25,423 | — | |||||||||||||||||||||||||
Direct patient expense | 7,666 | 1,585 | 13,430 | 2,790 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 9,114 | 2,950 | 20,753 | 5,263 | |||||||||||||||||||||||||
Depreciation and amortization expense | 1,078 | 260 | 1,892 | 507 | |||||||||||||||||||||||||
Transaction and other costs | 862 | — | 862 | — | |||||||||||||||||||||||||
Total operating expenses | 37,512 | 4,795 | 62,360 | 8,560 | |||||||||||||||||||||||||
Net loss | $ | (12,758) | $ | (3,486) | $ | (23,288) | $ | (6,260) |
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 | ) | ||||
As of March 15, 2022 | ||||||||||||||
Strike price | $ | 6.03 | ||||||||||||
Risk-free interest rate | 2.1% | |||||||||||||
Expected volatility | 70.0% | |||||||||||||
Expected dividend yield | 0.0% | |||||||||||||
Expected term | 6.25 |
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 | 0 | 0 | ||||||
Granted | 12,806,407 | $ | 4.23 | |||||
Vested | 0 | 0 | ||||||
Forfeitures | 0 | 0 | ||||||
Balance, June 30, 2021 | 12,806,407 | $ | 4.23 |
Market-Based Stock Options | Service-Based Stock Options | |||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | ||||||||||||||||||||||
Granted | 12,806,407 | $ | 4.23 | — | — | |||||||||||||||||||||
Vested | — | — | — | — | ||||||||||||||||||||||
Forfeitures | — | — | — | — | ||||||||||||||||||||||
Balance, June 30, 2021 | 12,806,407 | $ | 4.23 | 0 | — | |||||||||||||||||||||
Balance, December 31, 2021 | 12,703,698 | $ | 4.23 | — | — | |||||||||||||||||||||
Granted | — | — | 435,141 | $ | 3.88 | |||||||||||||||||||||
Vested | — | — | — | — | ||||||||||||||||||||||
Forfeitures | (262,146) | 4.23 | — | — | ||||||||||||||||||||||
Balance, June 30, 2022 | 12,441,552 | $ | 4.23 | 435,141 | $ | 3.88 |
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 |
Restricted-Stock Units | Performance - Restricted-Stock Units | |||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | ||||||||||||||||||||||
Granted | 2,216,501 | $ | 14.75 | 373,971 | $ | 13.37 | ||||||||||||||||||||
Vested | — | — | — | — | ||||||||||||||||||||||
Forfeitures | — | — | — | — | ||||||||||||||||||||||
Balance, June 30, 2021 | 2,216,501 | $ | 14.75 | 373,971 | $ | 13.37 | ||||||||||||||||||||
Balance, December 31, 2021 | 4,460,772 | $ | 14.43 | 706,750 | $ | 12.73 | ||||||||||||||||||||
Granted | 11,326,599 | 5.38 | — | — | ||||||||||||||||||||||
Vested | (717,138) | 12.44 | (93,493) | 13.37 | ||||||||||||||||||||||
Forfeitures | (293,538) | 7.62 | — | — | ||||||||||||||||||||||
Balance, June 30, 2022 | 14,776,695 | $ | 7.73 | 613,257 | $ | 12.63 |
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 | ||
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, | |||||||||||||||
(in thousands, except shares and per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 4,947 | $ | (10,986 | ) | $ | (5,523 | ) | $ | (13,172 | ) | |||||
Less: net loss attributable to non-controlling interests | (4,533 | ) | 0 | (15,003 | ) | 0 | ||||||||||
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 | ||||||||||
Basic and Diluted Earnings Per Share denominator: | ||||||||||||||||
Weighted average common stock outstanding - basic | 167,134,853 | N/A | 166,691,634 | N/A | ||||||||||||
Net income per share - basic | $ | 0.06 | N/A | $ | 0.06 | N/A | ||||||||||
Diluted Earnings Per Share: | ||||||||||||||||
Dilutive effect of warrants on weighted average common | 1,749,462 | N/A | 879,564 | N/A | ||||||||||||
Weighted average common stock outstanding - diluted | 168,884,315 | N/A | 167,571,198 | N/A | ||||||||||||
Net | $ | (0.03 | ) | N/A | $ | (0.03 | ) | N/A | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(in thousands, except shares and per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income (loss) | $ | (14,564) | $ | (36,289) | $ | (14,649) | $ | (52,403) | |||||||||||||||||||||
Less: net loss attributable to non-controlling interests | (9,231) | (40,844) | (9,976) | (56,958) | |||||||||||||||||||||||||
Net income (loss) attributable to Class A common stockholders | (5,333) | 4,555 | (4,673) | 4,555 | |||||||||||||||||||||||||
Dilutive effect of warrants on net income to Class A common stockholders | — | (13,999) | — | (13,999) | |||||||||||||||||||||||||
Dilutive effect of Class B common stock | (9,231) | — | (9,976) | — | |||||||||||||||||||||||||
Net loss attributable to Class A common stockholders - Diluted | $ | (14,564) | $ | (9,444) | $ | (14,649) | $ | (9,444) | |||||||||||||||||||||
Basic and Diluted Earnings Per Share denominator: | |||||||||||||||||||||||||||||
Weighted average common stock outstanding - basic | 210,053,037 | 167,134,853 | 200,783,129 | 166,691,634 | |||||||||||||||||||||||||
Net income (loss) per share - basic | $ | (0.03) | $ | 0.03 | $ | (0.02) | $ | 0.03 | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||||||
Dilutive effect of warrants on weighted average common stock outstanding | — | 1,749,462 | — | 879,564 | |||||||||||||||||||||||||
Dilutive effect of Class B common stock on weighted average common stock outstanding | 264,527,434 | — | 264,527,434 | — | |||||||||||||||||||||||||
Weighted average common stock outstanding - diluted | 474,580,471 | 168,884,315 | 465,310,563 | 167,571,198 | |||||||||||||||||||||||||
Net loss per share - diluted | $ | (0.03) | $ | (0.06) | $ | (0.03) | $ | (0.06) | |||||||||||||||||||||
2022 | ||||||||
264,527,434 | ||||||||
Public Warrants | 22,999,900 | |||||||
Private Placement Warrants | 10,533,292 | |||||||
Restricted Stock Units | 15,389,953 | |||||||
Stock Options | 12,876,693 | |||||||
Contingent Shares Issued in Connection with Acquisitions | 2,720,966 | |||||||
705,570 | ||||||||
Potential Common Stock Equivalents | 329,753,808 |
June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||
Membership | 281,525 | 227,005 | 156,038 | ||||||||
Medical centers | 143 | 130 | 90 |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Members | 156,038 | 105,707 | 99,276 | |||||||||
Owned medical centers | 90 | 71 | 61 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Capitated revenue | $ | 655,493 | $ | 329,484 | $ | 1,329,844 | $ | 590,841 | |||||||||||||||||||||
Fee-for-service and other revenue | 33,880 | 14,097 | 63,671 | 27,342 | |||||||||||||||||||||||||
Total revenue | 689,373 | 343,581 | 1,393,515 | 618,183 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Third-party medical costs | 541,317 | 291,816 | 1,077,097 | 486,862 | |||||||||||||||||||||||||
Direct patient expense | 52,647 | 35,607 | 113,323 | 69,844 | |||||||||||||||||||||||||
Selling, general, and administrative expenses | 106,179 | 47,159 | 202,849 | 82,168 | |||||||||||||||||||||||||
Depreciation and amortization expense | 19,836 | 7,945 | 38,872 | 13,791 | |||||||||||||||||||||||||
Transaction costs and other | 6,207 | 16,114 | 14,583 | 25,068 | |||||||||||||||||||||||||
Change in fair value of contingent consideration | (5,764) | (496) | (10,425) | (211) | |||||||||||||||||||||||||
Total operating expenses | 720,422 | 398,145 | 1,436,299 | 677,522 | |||||||||||||||||||||||||
Loss from operations | (31,049) | (54,564) | (42,784) | (59,339) | |||||||||||||||||||||||||
Other income and expense: | |||||||||||||||||||||||||||||
Interest expense | (13,134) | (9,714) | (26,418) | (20,340) | |||||||||||||||||||||||||
Interest income | 2 | 1 | 3 | 2 | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | (13,225) | (1,428) | (13,225) | |||||||||||||||||||||||||
Change in fair value of warrant liabilities | 30,175 | 39,215 | 57,337 | 39,215 | |||||||||||||||||||||||||
Other income (expenses) | 251 | (25) | 530 | (25) | |||||||||||||||||||||||||
Total other income (expense) | 17,294 | 16,252 | 30,024 | 5,627 | |||||||||||||||||||||||||
Net income (loss) before income tax expense | (13,755) | (38,312) | (12,760) | (53,712) | |||||||||||||||||||||||||
Income tax expense (benefit) | 809 | (2,023) | 1,889 | (1,309) | |||||||||||||||||||||||||
Net loss | (14,564) | (36,289) | (14,649) | (52,403) | |||||||||||||||||||||||||
Net loss attributable to non-controlling interests | (9,231) | (40,844) | (9,976) | (56,958) | |||||||||||||||||||||||||
Net income (loss) attributable to Class A common stockholders | $ | (5,333) | $ | 4,555 | $ | (4,673) | $ | 4,555 |
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) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Capitated revenue | 95.1 | % | 95.9 | % | 95.4 | % | 95.6 | % | |||||||||||||||||||||
Fee-for-service and other revenue | 4.9 | % | 4.1 | % | 4.6 | % | 4.4 | % | |||||||||||||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Third-party medical costs | 78.5 | % | 84.9 | % | 77.3 | % | 78.8 | % | |||||||||||||||||||||
Direct patient expense | 7.6 | % | 10.4 | % | 8.1 | % | 11.3 | % | |||||||||||||||||||||
Selling, general, and administrative expenses | 15.4 | % | 13.7 | % | 14.6 | % | 13.3 | % | |||||||||||||||||||||
Depreciation and amortization expense | 2.9 | % | 2.3 | % | 2.8 | % | 2.2 | % | |||||||||||||||||||||
Transaction costs and other | 0.9 | % | 4.7 | % | 1.0 | % | 4.0 | % | |||||||||||||||||||||
Change in fair value of contingent consideration | (0.8) | % | (0.1) | % | (0.7) | % | 0.0 | % | |||||||||||||||||||||
Total operating expenses | 104.5 | % | 115.9 | % | 103.1 | % | 109.6 | % | |||||||||||||||||||||
Loss from operations | (4.5) | % | (15.9) | % | (3.1) | % | (9.6) | % | |||||||||||||||||||||
Other income and expense: | |||||||||||||||||||||||||||||
Interest expense | (1.9) | % | (2.8) | % | (1.9) | % | (3.3) | % | |||||||||||||||||||||
Interest income | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Loss on extinguishment of debt | 0.0 | % | (3.8) | % | (0.1) | % | (2.1) | % | |||||||||||||||||||||
Change in fair value of embedded derivative | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Change in fair value of warrant liabilities | 4.4 | % | 11.4 | % | 4.1 | % | 6.3 | % | |||||||||||||||||||||
Other expenses | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Total other income (expense) | 2.5 | % | 4.7 | % | 2.1 | % | 0.9 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | (2.0) | % | (11.2) | % | (0.9) | % | (8.7) | % | |||||||||||||||||||||
Income tax expense (benefit) | 0.1 | % | (0.6) | % | 0.1 | % | (0.2) | % | |||||||||||||||||||||
Net income (loss) | (2.1) | % | (11.7) | % | (0.8) | % | (8.9) | % | |||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (1.3) | % | (11.9) | % | (0.7) | % | (9.2) | % | |||||||||||||||||||||
Net income (loss) attributable to Class A common stockholders | (0.7) | % | 0.1 | % | (0.1) | % | 0.3 | % | |||||||||||||||||||||
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 June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||||||||||||||
Capitated revenue | ||||||||||||||||||||||||||||||||||||||
Medicare | $ | 602,613 | 87.4 | % | $ | 284,974 | 82.8 | % | ||||||||||||||||||||||||||||||
Other capitated revenue | 52,880 | 7.6 | % | 44,510 | 13.0 | % | ||||||||||||||||||||||||||||||||
Total capitated revenue | 655,493 | 95.0 | % | 329,484 | 95.8 | % | ||||||||||||||||||||||||||||||||
Fee-for-service and other revenue | ||||||||||||||||||||||||||||||||||||||
Fee-for-service | 9,701 | 1.4 | % | 4,389 | 1.3 | % | ||||||||||||||||||||||||||||||||
Pharmacy | 12,759 | 1.9 | % | 8,217 | 2.4 | % | ||||||||||||||||||||||||||||||||
Other | 11,420 | 1.7 | % | 1,491 | 0.5 | % | ||||||||||||||||||||||||||||||||
Total fee-for-service and other revenue | 33,880 | 5.0 | % | 14,097 | 4.2 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 689,373 | 100.0 | % | $ | 343,581 | 100.0 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Revenue $ | Revenue % | Revenue $ | Revenue % | ||||||||||||||||||||||||||||||||||
Capitated revenue | ||||||||||||||||||||||||||||||||||||||
Medicare | $ | 1,217,831 | 87.5 | % | $ | 505,659 | 81.8 | % | ||||||||||||||||||||||||||||||
Other capitated revenue | 112,013 | 8.0 | % | 85,182 | 13.8 | % | ||||||||||||||||||||||||||||||||
Total capitated revenue | 1,329,844 | 95.5 | % | 590,841 | 95.6 | % | ||||||||||||||||||||||||||||||||
Fee-for-service and other revenue | ||||||||||||||||||||||||||||||||||||||
Fee-for-service | 19,671 | 1.4 | % | 8,937 | 1.4 | % | ||||||||||||||||||||||||||||||||
Pharmacy | 24,274 | 1.7 | % | 15,523 | 2.5 | % | ||||||||||||||||||||||||||||||||
Other | 19,726 | 1.4 | % | 2,882 | 0.5 | % | ||||||||||||||||||||||||||||||||
Total fee-for-service and other revenue | 63,671 | 4.5 | % | 27,342 | 4.4 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 1,393,515 | 100.0 | % | $ | 618,183 | 100.0 | % |
Three Months Ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
($ in thousands) | 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 | % | ||||||||
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, | ||||||||||||||||||||
2022 | 2021 | % Change | ||||||||||||||||||
Members: | ||||||||||||||||||||
Medicare Advantage | 123,768 | 103,812 | 19.2 | % | ||||||||||||||||
Medicare DCE | 40,179 | 8,054 | 398.9 | % | ||||||||||||||||
Total Medicare | 163,947 | 111,866 | 46.6 | % | ||||||||||||||||
Medicaid | 70,254 | 25,178 | 179.0 | % | ||||||||||||||||
ACA | 47,324 | 18,994 | 149.2 | % | ||||||||||||||||
Total members | 281,525 | 156,038 | 80.4 | % | ||||||||||||||||
Member months: | ||||||||||||||||||||
Medicare Advantage | 364,565 | 258,327 | 41.1 | % | ||||||||||||||||
Medicare DCE | 122,301 | 23,924 | 411.2 | % | ||||||||||||||||
Total Medicare | 486,866 | 282,251 | 72.5 | % | ||||||||||||||||
Medicaid | 206,630 | 71,461 | 189.2 | % | ||||||||||||||||
ACA | 139,355 | 57,816 | 141.0 | % | ||||||||||||||||
Total member months | 832,851 | 411,528 | 102.4 | % | ||||||||||||||||
Per Member Per Month ("PMPM"): | ||||||||||||||||||||
Medicare Advantage | $ | 1,196 | $ | 990 | 20.8 | % | ||||||||||||||
Medicare DCE | $ | 1,362 | $ | 1,221 | 11.5 | % | ||||||||||||||
Total Medicare | $ | 1,238 | $ | 1,010 | 22.6 | % | ||||||||||||||
Medicaid | $ | 223 | $ | 612 | (63.6) | % | ||||||||||||||
ACA | $ | 48 | $ | 14 | 242.9 | % | ||||||||||||||
Total PMPM | $ | 787 | $ | 801 | (1.7) | % | ||||||||||||||
Medical centers | 143 | 90 |
Three 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 | 282,251 | 152,764 | 84.8 | % | ||||||||
Medicaid | 71,461 | 45,515 | 57.0 | % | ||||||||
ACA | 57,816 | 30,474 | 89.7 | % | ||||||||
Total member months | 411,528 | 228,753 | 79.9 | % | ||||||||
Per Member Per Month (“PMPM”): | ||||||||||||
Medicare | $ | 1,186 | $ | 847 | 40.0 | % | ||||||
Medicaid | $ | 612 | $ | 747 | (18.1 | )% | ||||||
ACA | $ | 14 | $ | 18 | (22.2 | )% | ||||||
Total PMPM | $ | 921 | $ | 717 | 28.5 | % | ||||||
Owned medical centers | 90 | 61 |
Six Months Ended June 30, | ||||||||||||||||||||
2022 | 2021 | % Change | ||||||||||||||||||
Members: | ||||||||||||||||||||
Medicare Advantage | 123,768 | 103,812 | 19.2 | % | ||||||||||||||||
Medicare DCE | 40,179 | 8,054 | 398.9 | % | ||||||||||||||||
Total Medicare | 163,947 | 111,866 | 46.6 | % | ||||||||||||||||
Medicaid | 70,254 | 25,178 | 179.0 | % | ||||||||||||||||
ACA | 47,324 | 18,994 | 149.2 | % | ||||||||||||||||
Total members | 281,525 | 156,038 | 80.4 | % | ||||||||||||||||
Member months: | ||||||||||||||||||||
Medicare Advantage | 718,980 | 483,157 | 48.8 | % | ||||||||||||||||
Medicare DCE | 247,390 | 23,924 | 934.1 | % | ||||||||||||||||
Total Medicare | 966,370 | 507,081 | 90.6 | % | ||||||||||||||||
Medicaid | 408,827 | 134,369 | 204.3 | % | ||||||||||||||||
ACA | 261,266 | 113,853 | 129.5 | % | ||||||||||||||||
Total member months | 1,636,463 | 755,303 | 116.7 | % | ||||||||||||||||
Per Member Per Month ("PMPM"): | ||||||||||||||||||||
Medicare Advantage | $ | 1,222 | $ | 985 | 24.1 | % | ||||||||||||||
Medicare DCE | $ | 1,371 | $ | 1,221 | 12.3 | % | ||||||||||||||
Total Medicare | $ | 1,260 | $ | 997 | 26.4 | % | ||||||||||||||
Medicaid | $ | 240 | $ | 613 | (60.8) | % | ||||||||||||||
ACA | $ | 53 | $ | 29 | 82.8 | % | ||||||||||||||
Total PMPM | $ | 813 | $ | 782 | 4.0 | % | ||||||||||||||
Medical centers | 143 | 90 |
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 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Capitated revenue | $ | 655,493 | $ | 329,484 | $ | 326,009 | 98.9 | % | ||||||||||||||||||||||||
Fee-for-service and other revenue | 33,880 | 14,097 | 19,783 | 140.3 | % | |||||||||||||||||||||||||||
Total revenue | $ | 689,373 | $ | 343,581 | $ | 345,792 |
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, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | $ | 541,317 | $ | 291,816 | $ | 249,501 | 85.5 | % | ||||||||||||||||||
Direct patient expense | 52,647 | 35,607 | 17,040 | 47.9 | % | |||||||||||||||||||||
Selling, general, and administrative expenses | 106,179 | 47,159 | 59,020 | 125.2 | % | |||||||||||||||||||||
Depreciation and amortization expense | 19,836 | 7,945 | 11,891 | 149.7 | % | |||||||||||||||||||||
Transaction costs and other | 6,207 | 16,114 | (9,907) | -61.5 | % | |||||||||||||||||||||
Change in fair value of contingent consideration | (5,764) | (496) | (5,268) | N/A | ||||||||||||||||||||||
Total operating expenses | $ | 720,422 | $ | 398,145 | $ | 322,277 |
Three Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Operating expenses: | ||||||||||||||||
Third-party medical costs | $ | 291,816 | $ | 112,040 | $ | 179,776 | 160.5 | % | ||||||||
Direct patient expense | 43,782 | 22,554 | 21,228 | 94.1 | % | |||||||||||
Selling, general, and administrative expenses | 46,574 | 21,859 | 24,715 | 113.1 | % | |||||||||||
Depreciation and amortization expense | 7,945 | 3,977 | 3,968 | 99.8 | % | |||||||||||
Transaction costs and other | 16,374 | 15,687 | 687 | 4.4 | % | |||||||||||
Total operating expenses | $ | 406,491 | $ | 176,117 | $ | 230,374 | ||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||
Interest expense | $ | (13,134) | $ | (9,714) | $ | (3,420) | 35.2 | % | ||||||||||||||||||
Interest income | 2 | 1 | 1 | 100.0 | % | |||||||||||||||||||||
Loss on extinguishment of debt | — | (13,225) | 13,225 | -100.0 | % | |||||||||||||||||||||
Change in fair value of warrant liabilities | 30,175 | 39,215 | (9,040) | -23.1 | % | |||||||||||||||||||||
Other income (expense) | 251 | (25) | 276 | N/A | ||||||||||||||||||||||
Total other income (expense) | $ | 17,294 | $ | 16,252 | $ | 1,042 | ||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Other income and expense: | ||||||||||||||||
Interest expense | $ | (9,714 | ) | $ | (5,717 | ) | $ | (3,997 | ) | 69.9 | % | |||||
Interest income | 1 | 79 | (78 | ) | -98.7 | % | ||||||||||
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 warrant liabilities | 39,215 | — | 39,215 | 0.0 | % | |||||||||||
Other expenses | (25 | ) | (150 | ) | 125 | -83.3 | % | |||||||||
Total other income (expense) | $ | 16,252 | $ | (6,094 | ) | $ | 22,346 | |||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Capitated revenue | $ | 1,329,844 | $ | 590,841 | $ | 739,003 | 125.1 | % | ||||||||||||||||||||||||
Fee-for-service and other revenue | 63,671 | 27,342 | 36,329 | 132.9 | % | |||||||||||||||||||||||||||
Total revenue | $ | 1,393,515 | $ | 618,183 | $ | 775,332 |
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 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Third-party medical costs | $ | 1,077,097 | $ | 486,862 | $ | 590,235 | 121.2 | % | ||||||||||||||||||
Direct patient expense | 113,323 | 69,844 | 43,479 | 62.3 | % | |||||||||||||||||||||
Selling, general, and administrative expenses | 202,849 | 82,168 | 120,681 | 146.9 | % | |||||||||||||||||||||
Depreciation and amortization expense | 38,872 | 13,791 | 25,081 | 181.9 | % | |||||||||||||||||||||
Transaction costs and other | 14,583 | 25,068 | (10,485) | -41.8 | % | |||||||||||||||||||||
Change in fair value of contingent consideration | (10,425) | (211) | (10,214) | N/A | ||||||||||||||||||||||
Total operating expenses | $ | 1,436,299 | $ | 677,522 | $ | 758,777 |
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, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||
Interest expense | $ | (26,418) | $ | (20,340) | $ | (6,078) | 29.9 | % | ||||||||||||||||||
Interest income | 3 | 2 | 1 | 50.0 | % | |||||||||||||||||||||
Loss on extinguishment of debt | (1,428) | (13,225) | 11,797 | -89.2 | % | |||||||||||||||||||||
Change in fair value of warrant liabilities | 57,337 | 39,215 | 18,122 | 46.2 | % | |||||||||||||||||||||
Other income (expense) | 530 | (25) | 555 | N/A | ||||||||||||||||||||||
Total other income (expense) | $ | 30,024 | $ | 5,627 | $ | 24,397 |
Six Months Ended June 30, | ||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Other income and expense: | ||||||||||||||||
Interest expense | $ | (20,340 | ) | $ | (9,382 | ) | $ | (10,958 | ) | 116.8 | % | |||||
Interest income | 2 | 159 | (157 | ) | (98.7 | )% | ||||||||||
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 warrant liabilities | 39,215 | $ | — | 39,215 | — | % | ||||||||||
Other expenses | (25 | ) | (150 | ) | 125 | (83.3 | )% | |||||||||
Total other income (expense) | $ | 5,627 | $ | (9,679 | ) | $ | 15,306 | |||||||||
Six Months Ended June 30, | ||||||||
($ in thousands) | 2021 | 2020 | ||||||
Net cash used in operating activities | $ | (56,580 | ) | $ | (13,143 | ) | ||
Net cash used in investing activities | (649,269 | ) | (245,926 | ) | ||||
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 | ||||
Six Months Ended June 30, | ||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||
Net cash provided by (used in) operating activities | $ | (82,173) | $ | (58,100) | ||||||||||
Net cash provided by (used in) investing activities | (29,273) | (646,087) | ||||||||||||
Net cash provided by (used in) financing activities | (3,877) | 989,657 | ||||||||||||
Net Increase (decrease) in cash, cash equivalents and restricted cash | (115,323) | 285,470 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 163,170 | 33,807 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 47,847 | $ | 319,277 |
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 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Net loss | $ | (14,564) | $ | (36,289) | $ | (14,649) | $ | (52,403) | ||||||||||||||||||||||||
Interest income | (2) | (1) | (3) | (2) | ||||||||||||||||||||||||||||
Interest expense | 13,134 | 9,714 | 26,418 | 20,340 | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 809 | (2,023) | 1,889 | (1,309) | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 19,836 | 7,945 | 38,872 | 13,791 | ||||||||||||||||||||||||||||
EBITDA | $ | 19,213 | $ | (20,654) | $ | 52,527 | $ | (19,583) | ||||||||||||||||||||||||
Stock-based compensation | 17,783 | 3,609 | 31,600 | 3,680 | ||||||||||||||||||||||||||||
De novo (1) | 19,469 | 8,543 | 35,285 | 14,383 | ||||||||||||||||||||||||||||
Transaction costs (2) | 7,842 | 16,976 | 17,713 | 26,794 | ||||||||||||||||||||||||||||
Restructuring and other | 1,016 | 2,811 | 3,602 | 3,222 | ||||||||||||||||||||||||||||
Change in fair value of contingent consideration | (5,764) | (496) | (10,425) | (211) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | 13,225 | 1,428 | 13,225 | ||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | (30,175) | (39,215) | (57,337) | (39,215) | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 29,384 | $ | (15,201) | $ | 74,393 | $ | 2,295 |
Exhibit Index | ||||||||
Exhibit Number | Description | |||||||
* | Filed herewith. |
** | Furnished herewith. | ||||
Date | Signature | Title | |||||||||||||||||||||||
August | By: | /s/ Dr. Marlow Hernandez | Chief Executive Officer | ||||||||||||||||||||||
Dr. Marlow Hernandez | (Principal Executive Officer) | ||||||||||||||||||||||||
August 9, 2022 | By: | /s/ Brian D. Koppy | Chief Financial Officer | ||||||||||||||||||||||
Brian D. Koppy | (Principal Financial Officer) | ||||||||||||||||||||||||
August | By: | /s/ | Mark Novell | Chief | |||||||||||||||||||||
Mark Novell | (Principal Accounting Officer) | ||||||||||||||||||||||||