Performant Financial Corporation (Nasdaq: PFMT), (the "Company") a
leading provider of technology-enabled recovery and related
analytics services in the United States, today reported the
following financial results for its third quarter ended
September 30, 2018:
Third Quarter Financial Highlights
- Total revenues of $27.6 million, compared to revenues of $29.7
million in the prior year period, down 7.1%
- Net loss of $7.6 million, or $(0.15) per diluted share,
compared to a net loss of $7.9 million, or $(0.15) per diluted
share, in the prior year period
- Adjusted EBITDA of $(4.5) million, compared to adjusted EBITDA
of $(0.7) million in the prior year period
- Adjusted net loss of $7.1 million, or $(0.14) per diluted
share, compared to an adjusted net loss of $6.4 million or $(0.13)
per diluted share in the prior year period
Third Quarter 2018 Results
Student lending revenues in the third quarter were $11.9
million, a decrease of $7.9 million, or 39.9% from revenues of
$19.8 million in the prior year period. Reduced revenues from Great
Lakes Higher Education Guaranty Corporation accounted for 75% of
this decrease year over year, with revenues of $3.6 million in the
third quarter of 2018, compared to $10.0 million in the prior year
period. All other Guaranty Agencies accounted for revenues of
$8.3 million in the third quarter of 2018, compared to $9.8 million
in the prior year period. Student loan placement volume (defined
below) during the quarter totaled $0.8 billion, compared to $0.6
billion in the prior year period.
Healthcare revenues in the third quarter were $7.5 million, up
188.5% from revenues of $2.6 million in the prior year period.
Combined Medicare MSP and audit recovery revenues were $4.2 million
in the third quarter, an increase of $3.4 million from the prior
year period. Commercial healthcare clients contributed revenues of
$3.3 million, an increase of $1.5 million or 83.3% from the prior
year period.
Other revenues in the third quarter were $8.2 million, up from
$7.3 million in the prior year period.
Net loss for the third quarter of 2018 was $7.6 million,
or $(0.15) per share on a fully diluted basis, compared
to a net loss of $7.9 million or $(0.15) per
share on a fully diluted basis in the prior year
period. Adjusted EBITDA for the third quarter of 2018
was $(4.5) million as compared to $(0.7)
million in the prior year period. Adjusted net loss for
the third quarter of 2018 was $7.1 million, resulting
in $(0.14) per share on a fully diluted basis. This
compares to adjusted net loss of $6.4 million
or $(0.13) per fully diluted share in the prior year
period.
As of September 30, 2018, the Company had cash, cash
equivalents and restricted cash of approximately $7.4 million.
Business Outlook
“Our business has continued to trend in a positive direction,
highlighted by our Healthcare revenue growth in the third quarter
of nearly 200% compared to last year. We are happy to report that
as of October we have implemented all of our large contracts which
we anticipated during 2018. However, during the third quarter, we
also experienced an outsized number of delays that can happen when
working on large contracts which rely on external processes versus
internal execution. Some examples of external delay factors are
customers receiving approval from their serviced clients,
businesses requiring internal buy in from all divisions, and payers
wanting time to ramp up their internal staff to handle our claim
volumes. We stated earlier in the year that we expected to make a
large investment in ramping up these kinds of contracts. That
investment is in excess of $9 million dollars during 2018. With the
delays in Q3, we see revenues starting in earnest during Q4 and
rolling into 2019. We anticipate these contracts to grow
significantly into year 2, which is 2019, and mature into year 3
which will be 2020. In the immediate Q3, as a result of these
external delays, revenue and EBITDA generation under these
contracts was delayed, causing us to revise our full year revenue
and adjusted EBITDA guidance for 2018. Excluding the impact from
the CMS RAC contract reserve release, we now anticipate revenues to
be between $120 and $130 million, and for adjusted EBITDA to be a
loss of between $7.5 and $8.5 million. Including the reserve
release, which positively impacts 2018 revenue and EBTIDA by $28.4
million and $19.4 million, respectively, our outlook for revenues
is in the range of $148 million to $158 million and for adjusted
EBITDA is in the range of $11 million to $12 million,” stated Lisa
Im, CEO of Performant.
Terms used in this Press Release
Student Loan Placement Volume refers to the dollar volume of
defaulted student loans first placed with us during the specified
period by public and private clients for recovery. Placement Volume
allows us to measure and track trends in the amount of inventory
our clients in the student lending market are placing with us
during any period. The revenue associated with the recovery of a
portion of these loans may be recognized in subsequent accounting
periods, which assists management in estimating future revenues and
in allocating resources necessary to address current Placement
Volumes.
Earnings Conference Call
The Company will hold a conference call to discuss its third
quarter results today at 11:00 a.m. Eastern. A live webcast
of the call may be accessed on the Investor Relations section of
the Company’s website at investors.performantcorp.com. The
conference call is also available by dialing 877-705-6003
(domestic) or 201-493-6725 (international).
A replay of the call will be available on the Company's website
or by dialing 844-512-2921 (domestic) or 412-317-6671
(international) and entering the passcode 13681988. The telephonic
replay will be available approximately three hours after the call,
through November 16, 2018.
About Performant Financial Corporation
Performant helps government and commercial organizations enhance
revenue and contain costs by preventing, identifying and recovering
waste, improper payments and defaulted assets. Performant is a
leading provider of these services in several industries, including
healthcare, student loans and government. Performant has been
providing recovery audit services for more than nine years to both
commercial and government clients, including serving as a Recovery
Auditor for the Centers for Medicare and Medicaid Services.
Powered by a proprietary analytic platform and workflow
technology, Performant also provides professional services related
to the recovery effort, including reporting capabilities, support
services, customer care and stakeholder training programs meant to
mitigate future instances of improper payments. Founded in 1976,
Performant is headquartered in Livermore, California.
Note Regarding Use of Non-GAAP Financial
Measures
In this press release, to supplement our consolidated financial
statements, the Company presents adjusted EBITDA and adjusted net
income/(loss). These measures are not in accordance with generally
accepted accounting principles (GAAP) and accordingly
reconciliations of adjusted EBITDA and adjusted net income/(loss)
to net income/(loss) determined in accordance with GAAP are
included in the “Reconciliation of Non-GAAP Results” table at the
end of this press release. We have included adjusted EBITDA and
adjusted net income/(loss) in this press release because they are
key measures used by our management and board of directors to
understand and evaluate our core operating performance and trends
and to prepare and approve our annual budget. Accordingly, we
believe that adjusted EBITDA and adjusted net income/(loss) provide
useful information to investors and analysts in understanding and
evaluating our operating results in the same manner as our
management and board of directors. Our use of adjusted EBITDA and
adjusted net income/(loss) has limitations as an analytical tool
and should not be considered in isolation or as a substitute for
analysis of our results as reported under GAAP. In particular, many
of the adjustments to our GAAP financial measures reflect the
exclusion of items, specifically interest, tax and depreciation and
amortization expenses, equity-based compensation expense and
certain other non-operating expenses, that are recurring and will
be reflected in our financial results for the foreseeable future.
In addition, these measures may be calculated differently from
similarly titled non-GAAP financial measures used by other
companies, limiting their usefulness for comparison purposes.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding the expected closing of the
Premiere acquisition in September 2018, future business
opportunities expected to result from the proposed Premiere
acquisition, the expected financial impact of the acquisition on
Performant’s financial results in 2018, and our outlook for
revenues and adjusted EBITDA for Performant in 2018. These
forward-looking statements are based on current expectations,
estimates, assumptions and projections that are subject to change
and actual results may differ materially from the forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the following: that we
are unable to achieve the expected benefits of the Premiere
acquisition; that the contracts with our large clients may be
changed or terminated unilaterally and on short notice; that our
contracts with two of our historically largest customers, Great
Lakes Higher Education and the U.S. Department of Education, have
been terminated or substantially reduced in scope; that continuing
limitations on the scope of our audit activity under our RAC
contracts have significantly reduced our revenue opportunities with
this client; that we have significant indebtedness and may
not be able to avoid a breach of the covenants and other provisions
of our credit agreement which would cause us to be in default; that
the Company faces significant competition in all of its markets;
that we will incur significant costs to implement new contract
awards and those costs will be incurred in advance of the
recognition of any related revenues; that future legislative and
regulatory changes may have significant effects on the Company's
business; that failure of the Company's or third parties' operating
systems and technology infrastructure could disrupt the operation
of the Company's business; that the Company’s information security
systems could be breached, resulting in unauthorized third parties
obtaining access to confidential data that the Company possesses;
and other risks and uncertainties identified in the "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" sections of the Company's annual report
on Form 10-K for the year ended December 31, 2017, Form 10-Q for
the quarter ended March 31, 2018 and subsequently filed reports on
Forms 10-Q and 8-K. The forward-looking statements are made as of
the date of this press release and the Company does not undertake
to update any forward-looking statements to conform these
statements to actual results or revised expectations.
Contact InformationRichard ZubekInvestor
Relations925-960-4988investors@performantcorp.com
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIESConsolidated Balance Sheets(In thousands,
except per share amounts)
|
September 30,
2018 |
|
December 31,
2017 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
5,654 |
|
|
$ |
21,731 |
|
Restricted cash |
1,788 |
|
|
1,788 |
|
Trade accounts receivable, net of allowance for
doubtful accounts of $25 and $35, respectively |
14,647 |
|
|
12,494 |
|
Prepaid expenses and other current assets |
3,357 |
|
|
12,678 |
|
Income tax receivable |
6,356 |
|
|
6,839 |
|
Total current assets |
31,802 |
|
|
55,530 |
|
Property, equipment, and leasehold improvements, net |
23,122 |
|
|
20,944 |
|
Identifiable intangible assets, net |
4,306 |
|
|
4,864 |
|
Goodwill |
81,572 |
|
|
81,572 |
|
Deferred income taxes |
542 |
|
|
468 |
|
Other assets |
1,024 |
|
|
1,058 |
|
Total assets |
$ |
142,368 |
|
|
$ |
164,436 |
|
Liabilities and Stockholders’
Equity |
|
|
|
Current liabilities: |
|
|
|
Current maturities of notes payable, net of
unamortized debt issuance costs of $157 and $171, respectively |
$ |
2,593 |
|
|
$ |
2,029 |
|
Accrued salaries and benefits |
7,262 |
|
|
4,569 |
|
Accounts payable |
2,153 |
|
|
1,518 |
|
Other current liabilities |
3,806 |
|
|
3,347 |
|
Deferred revenue |
1,440 |
|
|
— |
|
Estimated liability for appeals |
302 |
|
|
18,817 |
|
Net payable to client |
— |
|
|
12,800 |
|
Total current liabilities |
17,556 |
|
|
43,080 |
|
Notes payable, net of current portion and unamortized debt issuance
costs of $2,296 and $3,245, respectively |
37,854 |
|
|
38,555 |
|
Deferred income taxes |
204 |
|
|
— |
|
Earnout payable |
1,876 |
|
|
— |
|
Other liabilities |
2,936 |
|
|
2,476 |
|
Total liabilities |
60,426 |
|
|
84,111 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.0001 par value. Authorized, 500,000
shares at September 30, 2018 and December 31, 2017; issued and
outstanding 52,976 and 51,085 shares at September 30, 2018 and
December 31, 2017, respectively |
5 |
|
|
5 |
|
Additional paid-in capital |
76,821 |
|
|
72,459 |
|
Retained earnings |
5,116 |
|
|
7,861 |
|
Total stockholders’ equity |
81,942 |
|
|
80,325 |
|
Total liabilities and stockholders’ equity |
$ |
142,368 |
|
|
$ |
164,436 |
|
|
|
|
|
|
|
|
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIESConsolidated Statements of Operations(In
thousands, except per share amounts)(Unaudited)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues |
|
$ |
27,581 |
|
|
$ |
29,744 |
|
|
$ |
115,938 |
|
|
$ |
98,760 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Salaries and benefits |
|
24,276 |
|
|
20,494 |
|
|
68,362 |
|
|
61,640 |
|
Other operating expenses |
|
10,505 |
|
|
13,496 |
|
|
45,924 |
|
|
43,019 |
|
Total operating expenses |
|
34,781 |
|
|
33,990 |
|
|
114,286 |
|
|
104,659 |
|
(Loss) income from operations |
|
(7,200 |
) |
|
(4,246 |
) |
|
1,652 |
|
|
(5,899 |
) |
Interest expense |
|
(1,123 |
) |
|
(2,459 |
) |
|
(3,534 |
) |
|
(5,683 |
) |
Interest income |
|
6 |
|
|
— |
|
|
19 |
|
|
— |
|
Loss before (benefit from) provision for income
taxes |
|
(8,317 |
) |
|
(6,705 |
) |
|
(1,863 |
) |
|
(11,582 |
) |
(Benefit from) provision for income taxes |
|
(708 |
) |
|
1,146 |
|
|
882 |
|
|
1,668 |
|
Net loss |
|
$ |
(7,609 |
) |
|
$ |
(7,851 |
) |
|
$ |
(2,745 |
) |
|
$ |
(13,250 |
) |
Net loss per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.26 |
) |
Diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.26 |
) |
Weighted average shares |
|
|
|
|
|
|
|
|
Basic |
|
52,281 |
|
|
50,852 |
|
|
51,752 |
|
|
50,581 |
|
Diluted |
|
52,281 |
|
|
50,852 |
|
|
51,752 |
|
|
50,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIESConsolidated Statements of Cash Flows(In
thousands)(Unaudited)
|
Nine Months Ended
September 30, |
Cash flows from operating activities: |
2018 |
|
2017 |
Net loss |
$ |
(2,745 |
) |
|
$ |
(13,250 |
) |
Adjustments to reconcile net loss to net cash (used
in) provided by operating activities: |
|
|
|
Loss on disposal of assets |
44 |
|
|
67 |
|
Impairment of goodwill and intangible assets |
— |
|
|
1,081 |
|
Release of net payable to client related to contract
termination |
(9,860 |
) |
|
— |
|
Release of estimated liability for appeals due to
termination of contract |
(18,531 |
) |
|
— |
|
Derecognition of subcontractor receivable for
appeals due to termination of contract |
5,535 |
|
|
— |
|
Derecognition of subcontractor receivable for
overturned claims |
1,536 |
|
|
— |
|
Provision for doubtful accounts for subcontractor
receivable |
1,868 |
|
|
— |
|
Depreciation and amortization |
7,601 |
|
|
8,381 |
|
Deferred income taxes |
130 |
|
|
667 |
|
Stock-based compensation |
2,403 |
|
|
3,027 |
|
Interest expense from debt issuance costs |
963 |
|
|
989 |
|
Write-off unamortized debt issuance costs |
— |
|
|
1,049 |
|
Interest expense paid in kind |
— |
|
|
331 |
|
Changes in operating assets and liabilities: |
|
|
|
Trade accounts receivable |
(463 |
) |
|
(1,006 |
) |
Prepaid expenses and other current assets |
958 |
|
|
(1,536 |
) |
Income tax receivable |
483 |
|
|
573 |
|
Other assets |
68 |
|
|
17 |
|
Accrued salaries and benefits |
1,723 |
|
|
1,325 |
|
Accounts payable |
306 |
|
|
424 |
|
Deferred revenue and other current liabilities |
713 |
|
|
(547 |
) |
Estimated liability for appeals |
16 |
|
|
(160 |
) |
Net payable to client |
(2,940 |
) |
|
(405 |
) |
Other liabilities |
326 |
|
|
(257 |
) |
Net cash (used in) provided by operating
activities |
(9,866 |
) |
|
770 |
|
Cash flows from investing activities: |
|
|
|
Purchase of property, equipment, and leasehold
improvements |
(6,319 |
) |
|
(5,408 |
) |
Premiere Credit of North America, LLC. working
capital cash acquired |
1,669 |
|
|
— |
|
Net cash used in investing activities |
(4,650 |
) |
|
(5,408 |
) |
Cash flows from financing activities: |
|
|
|
Repayment of notes payable |
(1,100 |
) |
|
(55,513 |
) |
Debt issuance costs paid |
— |
|
|
(858 |
) |
Taxes paid related to net share settlement of stock
awards |
(647 |
) |
|
(382 |
) |
Proceeds from exercise of stock options |
186 |
|
|
90 |
|
Borrowings from notes payable |
— |
|
|
44,000 |
|
Net cash used in financing activities |
(1,561 |
) |
|
(12,663 |
) |
Effect of foreign currency exchange rate changes on
cash |
— |
|
|
(4 |
) |
Net decrease in cash, cash equivalents and
restricted cash |
(16,077 |
) |
|
(17,305 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
23,519 |
|
|
40,484 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
7,442 |
|
|
$ |
23,179 |
|
Non-cash financing activities: |
|
|
|
Recognition of warrant issued in debt financing |
$ |
— |
|
|
$ |
3,302 |
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid for income taxes |
$ |
98 |
|
|
$ |
540 |
|
Cash paid for interest |
$ |
1,748 |
|
|
$ |
2,835 |
|
Reconciliation of the Consolidated Statements of Cash Flows
to the Consolidated Balance Sheets: |
|
|
|
Cash and cash equivalents |
$ |
5,654 |
|
|
$ |
23,179 |
|
Restricted cash |
1,788 |
|
|
— |
|
Total cash, cash equivalents and restricted cash at
end of the period |
$ |
7,442 |
|
|
$ |
23,179 |
|
|
|
|
|
|
|
|
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIESReconciliation of Non-GAAP Results(In
thousands, except per share amount)(Unaudited)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Adjusted Earnings Per Diluted Share: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,609 |
) |
|
$ |
(7,851 |
) |
|
$ |
(2,745 |
) |
|
$ |
(13,250 |
) |
Plus: Adjustment items per reconciliation of adjusted net
income |
|
520 |
|
|
1,449 |
|
|
(11,195 |
) |
|
4,448 |
|
Adjusted net loss |
|
(7,089 |
) |
|
(6,402 |
) |
|
(13,940 |
) |
|
(8,802 |
) |
Adjusted Earnings Per Diluted Share |
|
$ |
(0.14 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.17 |
) |
Diluted avg shares outstanding |
|
52,281 |
|
|
50,852 |
|
|
51,752 |
|
|
50,581 |
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,609 |
) |
|
$ |
(7,851 |
) |
|
$ |
(2,745 |
) |
|
$ |
(13,250 |
) |
(Benefit from) provision for income taxes |
|
(708 |
) |
|
1,146 |
|
|
882 |
|
|
1,668 |
|
Interest expense (1) |
|
1,123 |
|
|
2,459 |
|
|
3,534 |
|
|
5,683 |
|
Interest income |
|
(6 |
) |
|
— |
|
|
(19 |
) |
|
— |
|
Transaction expenses (7) |
|
— |
|
|
132 |
|
|
— |
|
|
576 |
|
Depreciation and amortization |
|
2,489 |
|
|
2,713 |
|
|
7,601 |
|
|
8,381 |
|
Impairment of goodwill and customer relationship (6) |
|
— |
|
|
— |
|
|
— |
|
|
1,081 |
|
CMS Region A contract termination (5) |
|
(599 |
) |
|
— |
|
|
(19,415 |
) |
|
— |
|
Stock-based compensation |
|
814 |
|
|
737 |
|
|
2,403 |
|
|
3,027 |
|
Adjusted EBITDA |
|
$ |
(4,496 |
) |
|
$ |
(664 |
) |
|
$ |
(7,759 |
) |
|
$ |
7,166 |
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Adjusted Net Loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,609 |
) |
|
$ |
(7,851 |
) |
|
$ |
(2,745 |
) |
|
$ |
(13,250 |
) |
Transaction expenses (7) |
|
— |
|
|
132 |
|
|
— |
|
|
576 |
|
Stock-based compensation |
|
814 |
|
|
737 |
|
|
2,403 |
|
|
3,027 |
|
Amortization of intangibles (2) |
|
203 |
|
|
203 |
|
|
608 |
|
|
691 |
|
Impairment of goodwill and customer relationship (6) |
|
— |
|
|
— |
|
|
— |
|
|
1,081 |
|
Deferred financing amortization costs (3) |
|
299 |
|
|
1,343 |
|
|
963 |
|
|
2,039 |
|
CMS Region A contract termination (5) |
|
(599 |
) |
|
— |
|
|
(19,415 |
) |
|
— |
|
Tax adjustments (4) |
|
(197 |
) |
|
(966 |
) |
|
4,246 |
|
|
(2,966 |
) |
Adjusted Net Loss |
|
$ |
(7,089 |
) |
|
$ |
(6,402 |
) |
|
$ |
(13,940 |
) |
|
$ |
(8,802 |
) |
(1) Represents interest expense and amortization of
issuance costs related to the refinancing of our indebtedness.
(2) Represents amortization of capitalized expenses
related to the acquisition of Performant by an affiliate of
Parthenon Capital Partners in 2004, and also an acquisition in the
first quarter of 2012 to enhance our analytics capabilities.
(3) Represents amortization of capitalized financing costs
related to our Credit Agreement for 2018, and amortization of
capitalized financing costs related to our Prior Credit Agreement
for 2017.
(4) Represents tax adjustments assuming a marginal tax
rate of 40% for 2017 and 27.5% for 2018.
(5) Represents the net impact of the termination of our
2009 CMS Region A contract during the first quarter and third
quarter of 2018, comprised of release of $28.4 million of the
estimated liability for appeals and the net payable to client
balances into revenue, net of derecognition of $9.0 million of
prepaid expenses and other current assets, with a charge to other
operating expenses, reflecting accrued receivables associated with
amounts due from subcontractors for decided and yet-to-be decided
appeals.
(6) Represents goodwill and impairment charges related to
our Performant Europe Ltd. subsidiary.
(7) Represents costs and expenses related to the
refinancing of our indebtedness.
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIESReconciliation of Non-GAAP Results(In
thousands, except per share amount)(Unaudited)
We are providing the following preliminary estimates of our
financial results for the year ended December 31, 2018:
|
|
Nine Months
Ended |
|
Three Months
Ended |
|
Year Ended |
|
|
September 30,
2018 |
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
|
Actual |
|
Estimate |
|
Actual |
|
Estimate |
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(2,745 |
) |
|
$ (2,218) to (5,910) |
|
$ |
(12,729 |
) |
|
$ (4,963) to (8,655) |
Provision for (benefit from) income taxes |
|
882 |
|
|
(782) to (182) |
|
(1,325 |
) |
|
100 to 700 |
Interest expense (1) |
|
3,534 |
|
|
766 to 1,366 |
|
6,972 |
|
|
4,300 to 4,900 |
Interest income |
|
(19 |
) |
|
(3) to (11) |
|
(4 |
) |
|
(22) to (30) |
Transaction expenses (7) |
|
— |
|
|
— |
|
|
576 |
|
|
— |
|
Depreciation and amortization |
|
7,601 |
|
|
2,399 to 3,399 |
|
10,888 |
|
|
10,000 to 11,000 |
Impairment of goodwill and customer relationship (6) |
|
— |
|
|
— |
|
|
1,081 |
|
|
— |
|
CMS Region A contract termination (5) |
|
(19,415 |
) |
|
— |
|
|
— |
|
|
(19,415 |
) |
Stock-based compensation |
|
2,403 |
|
|
97 to 597 |
|
3,740 |
|
|
2,500 to 3,000 |
Adjusted EBITDA |
|
$ |
(7,759 |
) |
|
$ 259 to (741) |
|
$ |
9,199 |
|
|
$ (7,500) to (8,500) |
(1) Represents interest expense and amortization of issuance
costs related to the refinancing of our indebtedness.
(5) Represents the net impact of the termination of our 2009 CMS
Region A contract during the first quarter and third quarter of
2018, comprised of release of $28.4 million of the estimated
liability for appeals and the net payable to client balances into
revenue, net of derecognition of $9.0 million of prepaid expenses
and other current assets, with a charge to other operating
expenses, reflecting accrued receivables associated with amounts
due from subcontractors for decided and yet-to-be decided
appeals.
(6) Represents goodwill and impairment charges related to our
Performant Europe Ltd. subsidiary.
(7) Represents costs and expenses related to the refinancing of
our indebtedness.
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