(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------------
2024 2023 2024 2023
-------- -------- ---------- ----------
Revenue
Capitation, net $431,401 $305,678 $1,239,885 $ 906,430
Risk pool
settlements and
incentives 21,779 15,022 57,564 48,605
Management fee
income 2,747 9,898 8,429 32,287
Fee-for-service,
net 18,692 15,892 54,588 41,216
Other revenue 4,091 1,683 8,865 5,087
------- ------- --------- ---------
Total revenue 478,710 348,173 1,369,331 1,033,625
------- ------- --------- ---------
Operating expenses
Cost of services,
excluding
depreciation and
amortization 405,218 275,375 1,148,422 857,648
General and
administrative
expenses 37,803 29,410 112,478 74,648
Depreciation and
amortization 7,264 4,305 19,801 12,846
------- ------- --------- ---------
Total expenses 450,285 309,090 1,280,701 945,142
------- ------- --------- ---------
Income from
operations 28,425 39,083 88,630 88,483
------- ------- --------- ---------
Other income
(expense)
Income (loss) from
equity method
investments 1,353 (2,104) 2,887 3,104
Interest expense (8,856) (3,779) (25,028) (10,680)
Interest income 3,778 3,281 11,287 9,617
Unrealized (loss)
gain on
investments (561) (342) 415 (5,875)
Other income 2,673 1,876 4,522 4,265
------- ------- --------- ---------
Total other
(expense) income,
net (1,613) (1,068) (5,917) 431
------- ------- --------- ---------
Income before
provision for
income taxes 26,812 38,015 82,713 88,914
Provision for
income taxes 7,831 10,042 25,004 30,971
------- ------- --------- ---------
Net income 18,981 27,973 57,709 57,943
------- ------- --------- ---------
Net income
attributable to
non-controlling
interest 2,887 5,914 7,609 9,582
------- ------- --------- ---------
Net income
attributable to
Astrana Health,
Inc. $ 16,094 $ 22,059 $ 50,100 $ 48,361
======= ======= ========= =========
Earnings per share
-- basic $ 0.34 $ 0.47 $ 1.05 $ 1.04
Earnings per share
-- diluted $ 0.33 $ 0.47 $ 1.04 $ 1.03
EBITDA
Set forth below are reconciliations of Net Income to EBITDA and Adjusted EBITDA as well as the reconciliation to Adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue.
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- -------------------------------
(in thousands) 2024 2023 2024 2023
-------- -------- ---------- ----------
Net income $ 18,981 $ 27,973 $ 57,709 $ 57,943
Interest
expense 8,856 3,779 25,028 10,680
Interest income (3,778) (3,281) (11,287) (9,617)
Provision for
income taxes 7,831 10,042 25,004 30,971
Depreciation
and
amortization 7,264 4,305 19,801 12,846
------- ------- --------- ---------
EBITDA 39,154 42,818 116,255 102,823
(Income) loss
from equity
method
investments (1,353) 2,016 (2,887) (3,160)
Other, net 1,206 (1) 1,723 (2) 2,663 (3) 1,507 (2)
Stock-based
compensation 6,163 5,706 19,301 13,364
APC excluded
asset costs -- (289) -- 3,039
------- ------- --------- ---------
Adjusted EBITDA $ 45,170 $ 51,974 $ 135,332 $ 117,573
======= ======= ========= =========
Total revenue $478,710 $348,173 $1,369,331 $1,033,625
Adjusted EBITDA
margin 9% 15% 10% 11%
======= ======= ========= =========
(1) Other, net for the three months ended September 30, 2024 relates to
non-cash changes related to change in the fair value of our financing
obligation to purchase the remaining equity interests in one of our
investments, non-cash changes related to change in the fair value of the
Company's Collar Agreement, non-cash gain on debt extinguishment related
to one of our promissory note payables, and transaction costs incurred
for our investments and tax restructuring fees.
(2) Other, net for the three and nine months ended September 30, 2023 relates
to transaction costs incurred for our investments and tax restructuring
fees and non-cash changes related to change in the fair value of our
financing obligation to purchase the remaining equity interests, changes
in the fair value of our contingent liabilities, and changes in the fair
value of the Company's Collar Agreement.
(3) Other, net for the nine months ended September 30, 2024 relates to
financial guarantee via a letter of credit that we provided almost three
years ago in support of two local provider-led ACOs, non-cash changes
related to change in the fair value of our financing obligation to
purchase the remaining equity interests in one of our investments,
non-cash changes related to change in the fair value of the Company's
Collar Agreement, non-cash gain on debt extinguishment related to one of
our promissory note payables, transaction costs incurred for our
investments and tax restructuring fees, and reimbursement from a related
party of the Company for taxes associated with the Excluded Assets
spin-off.
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
----------------------------------------------------------------------
2024 Guidance Range
-----------------------
(in thousands) Low High
------------ ---------
Net income $ 59,340 $ 66,240
Interest expense 18,750 18,750
Provision for income taxes 26,660 29,760
Depreciation and amortization 27,500 27,500
-------- --------
EBITDA 132,250 142,250
Income from equity method investments (4,250) (4,250)
Other, net 5,000 5,000
Stock-based compensation 32,000 32,000
-------- --------
Adjusted EBITDA $ 165,000 $ 175,000
======== ========
Use of Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures EBITDA and Adjusted EBITDA, of which the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP") is net income. These measures are not in accordance with, or alternatives to GAAP, and may be calculated differently from similar non-GAAP financial measures used by other companies. The Company uses Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization, excluding income or loss from equity method investments, non-recurring and non-cash transactions, stock-based compensation, and APC excluded assets costs. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue.
(MORE TO FOLLOW) Dow Jones Newswires
November 07, 2024 16:36 ET (21:36 GMT)
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