Press Release: Astrana Health, Inc. Reports Fourth Quarter and Year-End 2024 Results

Dow Jones
28 Feb

Astrana Health, Inc. Reports Fourth Quarter and Year-End 2024 Results

PR Newswire

ALHAMBRA, Calif., Feb. 27, 2025

Company to Host Conference Call on Thursday, February 27, 2025, at 2:30 p.m. PT/5:30 p.m. ET

ALHAMBRA, Calif., Feb. 27, 2025 /PRNewswire/ -- Astrana Health, Inc. ("Astrana," and together with its subsidiaries and affiliated entities, the "Company") (NASDAQ: ASTH), a leading provider-centric, technology-powered healthcare company enabling providers to deliver accessible, high-quality, and high-value care to all, today announced its consolidated financial results for the fourth quarter and year ended December 31, 2024.

"Astrana Health's strong performance in 2024 highlights the strength of our patient-centered, payer-agnostic platform and our unwavering commitment to delivering high-quality, accessible care. Our significant growth and geographic expansion, alongside robust financial performance, are a direct result of our disciplined execution across the four pillars of the Astrana playbook, " said President and CEO of Astrana, Brandon K. Sim.

"Looking ahead, we remain focused on growing membership sustainably, further improving quality of care for our membership while responsibly managing costs, growing the 73% of our capitated revenue that now comes from full-risk arrangements, and driving operating leverage and integration of recently acquired assets. We are confident that our platform, combined with our proven ability to navigate industry headwinds and a favorable outlook on future reimbursement rates, will continue delivering sustainable, long-term value for all our stakeholders - patients, physicians, providers, payers, and shareholders."

Financial Highlights for Year Ended December 31, 2024:

All comparisons are to the year ended December 31, 2023 unless otherwise stated.

   -- Total revenue of $2,034.5 million, up 47% from $1,386.7 million 
 
   -- Care Partners revenue of $1,949.0 million, up 52% from $1,284.1 million 
 
   -- Net income attributable to Astrana of $43.1 million, compared to $60.7 
      million 
 
   -- Earnings per share - diluted ("EPS - diluted") of $0.90, compared to 
      $1.29 per share 
 
   -- Adjusted EBITDA(1) of $170.4 million, up 16% from $146.6 million 

(1) See "Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional information.

Financial Highlights for the Fourth Quarter 2024:

All comparisons are to the quarter ended December 31, 2023 unless otherwise stated.

   -- Total revenue of $665.2 million, up 88% from $353.0 million 
 
   -- Care Partners revenue of $647.7 million, up 98% from $326.8 million 
 
   -- Net loss attributable to Astrana of $7.0 million, compared to income of 
      $12.4 million 
 
   -- (Loss) earnings per share - basic and diluted ("EPS - basic and diluted") 
      of $(0.15), compared to $0.26 per share 
 
   -- Adjusted EBITDA(1) of $35.0 million, up 21% from $29.0 million 

(1) See "Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional information.

Recent Operating Highlights

   -- In late 2024, Astrana began a Care Enablement partnership with Provider 
      HealthLink, or PHL, a provider network in Georgia. Astrana plans to 
      support PHL in serving approximately 10,000 Medicare Advantage members, 
      and the group is expected to be onboarded onto Astrana's Care Enablement 
      platform in the first half of 2025. 
 
   -- On February 26, 2025, the Company amended its credit agreement with 
      Truist Bank, in its capacities as administrative agent for the lenders 
      (the "Second Amended and Restated Credit Agreement"). The Second Amended 
      and Restated Credit Agreement provides for (a) a five-year revolving 
      credit facility to the Company of $300.0 million which includes a letter 
      of credit sub-facility of up to $100.0 million and a swingline loan 
      sub-facility of $25.0 million, (b) a five-year term loan A credit 
      facility to the Company of $250.0 million and (c) a five-year delayed 
      draw term loan credit facility to the Company of $745.0 million. The term 
      loan A and revolving credit facilities will be used to, among other 
      things, refinance certain existing indebtedness of the Company and 
      certain subsidiaries, pay transactions costs and expenses arising in 
      connection with the Second Amended and Restated Credit Agreement, and 
      provide for working capital needs and other general corporate purposes, 
      and, in addition to the foregoing, the revolving credit facility will 
      also be used to finance certain future permitted acquisitions and 
      permitted investments and capital expenditures. The delayed draw term 
      loan facility will be used to finance the acquisition of certain assets 
      contemplated by that certain asset and equity purchase agreement, dated 
      November 8, 2024, by and among the Company, Prospect Medical Holdings, 
      Inc., in its capacity as the seller representative, and certain other 
      parties party thereto, and to pay any fees and expenses associated 
      therewith. 
 
   -- Eight of Astrana's affiliates have been recognized as Elite status 
      recipients in the 2024 Standards of Excellence ("SOE") survey by 
      America's Physician Groups ("APG"), attaining the highest Elite five-star 
      status in all categories. This annual comprehensive survey is 
      administered by APG to evaluate which physician groups are best 
      positioned to provide coordinated, patient-centered, and cost-effective 
      care. 
 
   -- On January 17, 2025, the Company repurchased 300,000 shares of the 
      Company's common stock from Allied Physicians of California ("APC"), 
      pursuant to a stock repurchase agreement, for an aggregate purchase price 
      of approximately $10.6 million, based on a purchase price per share of 
      $35.17, which was the closing price of the Company's common stock on 
      Nasdaq on the date the agreement was executed. APC is a consolidated 
      affiliate of the Company. 

Segment Results for the Year Ended December 31, 2024:

All comparisons are to the year ended December 31, 2023 unless otherwise stated.

 
                                                          Year Ended December 31, 2024 
                      ----------------------------------------------------------------------------------------------------- 
                         Care           Care           Care                   Intersegment        Corporate   Consolidated 
(in thousands)         Partners       Delivery      Enablement       Other     Elimination          Costs         Total 
                      ----------      --------      ----------      -------  --------------       ---------  -------------- 
Total revenues        $1,949,033      $136,668      $  155,448       $   --   $   (206,609)       $      --   $   2,034,540 
% change vs. prior 
 year                         52%           16%             14% 
 
 Cost of services      1,633,021       109,672          83,720           --        (63,261)              --       1,763,152 
 General and 
  administrative(1)      174,774        26,893          53,461           --       (143,433)          70,343         182,038 
                       ---------       -------       ---------          ---      ----------        --------      ---------- 
Total expenses         1,807,795       136,565         137,181           --       (206,694)          70,343       1,945,190 
 
Income (loss) from 
 operations           $  141,238      $    103      $   18,267       $   --   $          85  (2)  $(70,343)   $      89,350 
                       =========       =======       =========          ===      ==========        ========      ========== 
% change vs. prior 
 year                         54%         (98)%            (4)% 
 
 
 
(1)  Balance includes general and administrative expenses and depreciation and 
     amortization. 
 
(2)  Income from operations for the intersegment elimination represents rental 
     income from segments renting from other segments. Rental income is 
     presented within other income which is not presented in the table. 
 

2025 Guidance:

Astrana is providing the following guidance for total revenue and Adjusted EBITDA, based on the Company's existing business, current view of existing market conditions and assumptions for the year ending December 31, 2025. The following guidance includes approximately $15 million in expected costs associated with continued strategic investments in automation and AI, as well as ongoing and expected integration costs associated with planned acquisitions, but does not include contributions from any acquisitions which have not yet closed.

 
                      2025 Guidance Range 
                   ------------------------- 
($ in millions)        Low          High 
                   ------------  ----------- 
Total revenue       $     2,500   $    2,700 
Adjusted EBITDA     $       170   $      190 
 

See "Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements" below for additional information.

Conference Call and Webcast Information:

Astrana will host a conference call at 2:30 p.m. PT/5:30 p.m. ET today (February 27, 2025), during which management will discuss the results of the fourth quarter and year ended December 31, 2024. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference call time:

 
U.S. & Canada (Toll-Free):     +1 (877) 858-9810 
International (Toll):          +1 (201) 689-8517 
 

The conference call can also be accessed via webcast at:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=VvYSvHe6

An accompanying slide presentation will be available in PDF format on the "IR Calendar" page of the Company's website after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed with the SEC, accessible at www.sec.gov.

Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.

Note About Consolidated Entities

The Company consolidates entities in which it has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.

Note About Stockholders' Equity, Certain Treasury Stock and Earnings Per Share

As of the date of this press release, 41,048 holdback shares have not been issued to certain former shareholders of the Company's subsidiary, Astrana Health Management, Inc. ("AHM"), formerly known as Network Medical Management, Inc., who were AHM shareholders at the time of closing of the merger, as they have yet to submit properly completed letters of transmittal to Astrana in order to receive their pro rata portion of Astrana's common stock and warrants as contemplated under that certain Agreement and Plan of Merger, dated December 21, 2016, among Astrana, AHM, Apollo Acquisition Corp. ("Merger Subsidiary") and Kenneth Sim, M.D., as amended, pursuant to which Merger Subsidiary merged with and into AHM, with AHM as the surviving corporation. Pending such receipt, such former AHM shareholders have the right to receive, without interest, their pro rata share of dividends or distributions with a record date after the effectiveness of the merger. The Company's consolidated financial statements have treated such shares of common stock as outstanding, given the receipt of the letter of transmittal is considered perfunctory and Astrana is legally obligated to issue these shares in connection with the merger.

Shares of Astrana's common stock owned by Allied Physicians of California, a Professional Medical Corporation ("APC"), a VIE of the Company, are legally issued and outstanding but excluded from shares of common stock outstanding in the Company's consolidated financial statements, as such shares are treated as treasury shares for accounting purposes. Such shares, therefore, are not included in the number of shares of common stock outstanding used to calculate the Company's earnings per share.

About Astrana Health, Inc.

Astrana Health, Inc. ("Astrana") is a leading physician-centric, technology-powered, risk-bearing healthcare management company. Leveraging its proprietary population health management and healthcare delivery platform, Astrana operates an integrated, value-based healthcare model, which aims to empower the providers in its network to deliver the highest quality of care to its patients in a cost-effective manner. Together with our affiliated physician groups and consolidated entities, we provide coordinated outcomes-based medical care in a cost-effective manner.

Headquartered in Alhambra, California, Astrana serves over 10,000 providers and approximately 1.1 million patients in value-based care arrangements. Its subsidiaries and affiliates include management services organizations (MSOs), a network of risk-bearing organizations ("RBOs") that encompasses independent practice associations ("IPAs"), accountable care organizations ("ACOs"), and state-specific entities such as Restricted Knox-Keene licensed health plans in California, and care delivery entities across primary, multi-specialty, and ancillary care. For more information, please visit www.astranahealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance for the year ending December 31, 2025, ability to meet operational goals, ability to meet expectations in deployment of care coordination and management capabilities, ability to decrease cost of care while improving quality and outcomes, ability to deliver sustainable revenue and EBITDA growth as well as long-term value, ability to respond to the changing environment, and successful implementation of strategic growth plans, acquisition strategy, and merger integration efforts. Forward-looking statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of the Company's management, and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's last Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q filed with the SEC. Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations

(626) 943-6491

Asher Dewhurst, ICR Westwicke

investors@astranahealth.com

 
                          ASTRANA HEALTH, INC. 
                 CONDENSED CONSOLIDATED BALANCE SHEETS 
            (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) 
 
                                         December 31,    December 31, 
                                             2024            2023 
                                        --------------  -------------- 
                                         (Unaudited) 
                                        --------------  -------------- 
Assets 
 
Current assets 
 Cash and cash equivalents               $     288,455   $     293,807 
 Investment in marketable securities             2,378           2,498 
 Receivables, net                              226,739          76,780 
 Receivables, net -- related parties            50,257          58,980 
 Income taxes receivable                        19,316          10,657 
 Other receivables                               3,656           1,335 
 Prepaid expenses and other current 
  assets                                        22,861          17,450 
                                            ----------      ---------- 
 
Total current assets                           613,662         461,507 
                                            ----------      ---------- 
 
Non-current assets 
 Property and equipment, net                    14,274           7,171 
 Intangible assets, net                        126,179          71,648 
 Goodwill                                      437,651         278,831 
 Income taxes receivable                        15,943          15,943 
 Loans receivable, non-current                  51,266          26,473 
 Investments in other entities -- 
  equity method                                 39,319          25,774 
 Investments in privately held 
  entities                                       8,896           6,396 
 Restricted cash                                   646             345 
 Operating lease right-of-use assets            32,601          37,396 
 Other assets                                   16,021           1,877 
                                            ----------      ---------- 
 
Total non-current assets                       742,796         471,854 
                                            ----------      ---------- 
 
Total assets(1)                          $   1,356,458   $     933,361 
                                            ==========      ========== 
 
Liabilities, Mezzanine Deficit, and 
Stockholders' Equity 
 
Current liabilities 
 Accounts payable and accrued expenses   $     114,650   $      59,949 
 Fiduciary accounts payable                      8,223           7,737 
 Medical liabilities                           209,039         106,657 
 Dividend payable                                  638             638 
 Finance lease liabilities                         554             646 
 Operating lease liabilities                     5,350           4,607 
 Current portion of long-term debt               9,375          19,500 
 Other liabilities                              19,343          18,940 
                                            ----------      ---------- 
 
Total current liabilities                      367,172         218,674 
 
Non-current liabilities 
 Deferred tax liability                          4,555           4,072 
 Finance lease liabilities, net of 
  current portion                                  607           1,033 
 Operating lease liabilities, net of 
  current portion                               30,654          36,289 
 Long-term debt, net of current 
  portion and deferred financing 
  costs                                        425,299         258,939 
 Other long-term liabilities                    14,003           3,586 
                                            ----------      ---------- 
 
Total non-current liabilities                  475,118         303,919 
                                            ----------      ---------- 
 
Total liabilities(1)                           842,290         522,593 
 
Commitments and contingencies 
 
Mezzanine deficit 
 Non-controlling interest in Allied 
  Physicians of California, a 
  Professional   Medical Corporation 
  ("APC")                                    (202,558)       (205,883) 
                                            ----------      ---------- 
 
Stockholders' equity 
 Preferred stock, $0.001 par value 
 per share; 5,000,000 shares 
 authorized as of December 31, 2024 
 and December 31, 2023 
   Series A Preferred stock, zero 
   authorized and issued and zero 
   outstanding as of December 31, 
   2024 and 1,111,111 authorized and 
   issued and zero outstanding as of 
   December 31, 2023                                --              -- 
   Series B Preferred stock, zero 
   authorized and issued and zero 
   outstanding as of December 31, 
   2024 and 555,555 authorized and 
   issued and zero outstanding as of 
   December 31, 2023                                --              -- 
 Common stock, $0.001 par value per 
  share; 100,000,000 shares 
  authorized, 47,929,872 and 
  46,843,743 shares issued and 
  outstanding, excluding 10,603,849 
  and 10,584,340 treasury shares, as 
  of December 31, 2024 and 
  December 31, 2023, respectively                   48              47 
 Additional paid-in capital                    426,389         371,037 
 Retained earnings                             286,283         243,134 
                                            ----------      ---------- 
 Total stockholders' equity                    712,720         614,218 
 
 Non-controlling interest                        4,006           2,433 
                                            ----------      ---------- 
 
   Total equity                                716,726         616,651 
                                            ----------      ---------- 
 
Total liabilities, mezzanine deficit, 
 and stockholders' equity                $   1,356,458   $     933,361 
                                            ==========      ========== 
 
 
 
(1)  The Company's condensed consolidated balance sheets include the assets 
     and liabilities of its consolidated VIEs. The condensed consolidated 
     balance sheets include total assets that can be used only to settle 
     obligations of the Company's consolidated VIEs totaling $761.4 million 
     and $540.8 million as of December 31, 2024 and December 31, 2023, 
     respectively, and total liabilities of the Company's consolidated VIEs 
     for which creditors do not have recourse to the general credit of the 
     primary beneficiary of $253.7 million and $146.0 million as of 
     December 31, 2024 and December 31, 2023, respectively. These VIE balances 
     do not include $224.9 million of investment in affiliates and $48.5 
     million of amounts due to affiliates as of December 31, 2024, and $273.2 
     million of investment in affiliates and $107.3 million of amounts due to 
     affiliates as of December 31, 2023, as these are eliminated upon 
     consolidation and not presented within the condensed consolidated balance 
     sheets. 
 
 
                       ASTRANA HEALTH, INC. 
                CONSOLIDATED STATEMENTS OF INCOME 
             (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 
                           (UNAUDITED) 
 
                     Three Months Ended         Year Ended 
                         December 31,          December 31, 
                       2024      2023        2024        2023 
                     --------  ---------  ----------  ---------- 
Revenue 
 Capitation, net     $616,900  $ 309,184  $1,856,785  $1,215,614 
 Risk pool 
  settlements and 
  incentives           28,660     14,863      86,224      63,468 
 Management fee 
  income                5,550      6,390      13,979      38,677 
 Fee-for-service, 
  net                   7,743     18,442      62,331      59,658 
 Other revenue          6,356      4,157      15,221       9,244 
                      -------   --------   ---------   --------- 
 
Total revenue         665,209    353,036   2,034,540   1,386,661 
                      -------   --------   ---------   --------- 
 
Operating expenses 
 Cost of services, 
  excluding 
  depreciation and 
  amortization        614,730    314,055   1,763,152   1,171,703 
 General and 
  administrative 
  expenses             41,633     37,949     154,111     112,597 
 Depreciation and 
  amortization          8,126      4,902      27,927      17,748 
                      -------   --------   ---------   --------- 
 
Total expenses        664,489    356,906   1,945,190   1,302,048 
                      -------   --------   ---------   --------- 
 
Income from 
 operations               720    (3,870)      89,350      84,613 
 
Other income 
(expense) 
 Income from equity 
  method 
  investments           1,564      2,475       4,451       5,579 
 Interest expense     (8,069)    (5,422)    (33,097)    (16,102) 
 Interest income        3,221      4,591      14,508      14,208 
 Unrealized gain 
  (loss) on 
  investments             316      1,294         731     (4,581) 
 Other income             353      1,856       4,875       6,121 
                      -------   --------   ---------   --------- 
 
Total other 
 (expense) income, 
 net                  (2,615)      4,794     (8,532)       5,225 
                      -------   --------   ---------   --------- 
 
(Loss) income 
 before provision 
 for income taxes     (1,895)        924      80,818      89,838 
 
Provision for 
 income taxes           5,882      1,018      30,886      31,989 
                      -------   --------   ---------   --------- 
 
Net (loss) income     (7,777)       (94)      49,932      57,849 
                      -------   --------   ---------   --------- 
 
Net (loss) income 
 attributable to 
 noncontrolling 
 interests              (826)   (12,450)       6,783     (2,868) 
                      -------   --------   ---------   --------- 
 
Net (loss) income 
 attributable to 
 Astrana Health, 
 Inc.                $(6,951)  $  12,356  $   43,149  $   60,717 
                      =======   ========   =========   ========= 
 
(Loss) earnings per 
 share -- basic      $ (0.15)  $    0.26  $     0.91  $     1.30 
 
(Loss) earnings per 
 share -- diluted    $ (0.15)  $    0.26  $     0.90  $     1.29 
 

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 months and years ended December 31, 2024 and 2023. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue.

 
                      Three Months Ended                          Year Ended 
                          December 31,                            December 31, 
                  ---------------------------           ------------------------------- 
(in thousands)      2024               2023                2024                 2023 
                  --------           --------           ----------           ---------- 
Net (loss) 
 income           $(7,777)           $   (94)           $   49,932           $   57,849 
 Interest 
  expense            8,069              5,422               33,097               16,102 
 Interest income   (3,221)            (4,591)             (14,508)             (14,208) 
 Provision for 
  income taxes       5,882              1,018               30,886               31,989 
 Depreciation 
  and 
  amortization       8,126              4,902               27,927               17,748 
                   -------            -------            ---------            --------- 
EBITDA            $ 11,079           $  6,657           $  127,334           $  109,480 
 
 Income from 
  equity method 
  investments      (1,564)            (1,989)              (4,451)              (5,149) 
 Other, net         10,288      (4)     4,721      (5)      12,951      (2)       6,228      (3) 
 Stock-based 
  compensation      15,235              8,676               34,536               22,040 
 APC excluded 
  assets costs          --             10,949                   --               13,988 
                   -------            -------            ---------            --------- 
Adjusted EBITDA   $ 35,038           $ 29,014           $  170,370           $  146,587 
                   =======            =======            =========            ========= 
 
Total Revenue     $665,209           $353,036           $2,034,540           $1,386,661 
 
Adjusted EBITDA 
 margin(1)               5%                 8%                   8%                  11% 
                   =======            =======            =========            ========= 
 
 
 
(1)  The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total 
     revenue. 
 
(2)  Other, net for the year ended December 31, 2024 relates to transaction 
     costs incurred for our investments and tax restructuring fees, 
     anticipated recoveries from one time losses relating to third party payer 
     payments associated with the Collaborative Health Systems, LLC ("CHS") 
     transaction, financial guarantee via a letter of credit that we provided 
     almost three years ago in support of two local provider-led ACOs, 
     reimbursement from a related party of the Company for taxes associated 
     with the December 2023 Excluded Assets Spin-off, non-cash gain on debt 
     extinguishment related to one of our promissory note payables, non-cash 
     realized loss from sale of one of our marketable equity securities, 
     non-cash changes related to change in the fair value of our call option, 
     change in the fair value of our financing obligation to purchase the 
     remaining equity interests in one of our investments, 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 year ended December 31, 2023 consists of nonrecurring 
     transaction costs and tax restructuring fees incurred, non-cash gains and 
     losses related to the changes in the fair value of our financing 
     obligation to purchase the remaining equity interests, contingent 
     liabilities, and the Company's Collar Agreement relating to interest on 
     the Revolver Loan, and excise tax related to a nonrecurring buyback of 
     the Company's stock from APC. 
 
(4)  Other, net for the three months ended December 31, 2024 relates to 
     transaction costs incurred for our investments, to anticipated recoveries 
     from one time losses relating to third party payer payments associated 
     with the CHS transaction, and non-cash change in the fair value of our 
     call option. 
 
(5)  Other, net for the three months and year ended December 31, 2023 consists 
     of nonrecurring transaction costs and tax restructuring fees incurred, 
     non-cash gains and losses related to the changes in the fair value of our 
     financing obligation to purchase the remaining equity interests, 
     contingent liabilities, and the Company's Collar Agreement, and excise 
     tax related to a nonrecurring buyback of the Company's stock from APC. 
 
 
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 
---------------------------------------------------------------------- 
 
                                               2025 Guidance Range 
                                             ----------------------- 
(in thousands)                                   Low         High 
                                             ------------  --------- 
Net income                                    $    62,500  $  73,500 
 Interest expense, net                             16,000     19,000 
 Provision for income taxes                        34,000     40,000 
 Depreciation and amortization                     32,500     32,500 
                                                 --------   -------- 
EBITDA                                            145,000    165,000 
 
 Income from equity method investments            (5,500)    (5,500) 
 Other, net                                         9,500      9,500 
 Stock-based compensation                          21,000     21,000 
                                                 --------   -------- 
Adjusted EBITDA                               $   170,000  $ 190,000 
                                                 ========   ======== 
 

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.

The Company believes the presentation of these non-GAAP financial measures provides investors with relevant and useful information, as it allows investors to evaluate the operating performance of the business activities without having to account for differences recognized because of non-core or non-recurring financial information. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company's ongoing operating performance. In addition, these non-GAAP financial measures are among those indicators the Company uses as a basis for evaluating operational performance, allocating resources, and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for, GAAP financial measures. Other companies may calculate both EBITDA and Adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. To the extent this release contains historical or future non-GAAP financial measures, the Company has provided corresponding GAAP financial measures for comparative purposes. The reconciliation between certain GAAP and non-GAAP measures is provided above.

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SOURCE Astrana Health, Inc.

 

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February 27, 2025 17:51 ET (22:51 GMT)

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