LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s
largest providers of outpatient mental healthcare, today announced
financial results for the third quarter ended September 30,
2024.
(All results compared to prior-year comparative period, unless
otherwise noted)Q3 2024 Highlights and FY
2024 Outlook
- Revenue of $312.7 million increased 19% compared to revenue of
$262.9 million
- Clinician base increased 13% to 7,269 clinicians, a sequential
net increase of 285 in the third quarter
- Third quarter visit volumes increased 15% to 2.0 million
- Net loss of $6.0 million compared to net loss of $61.6
million
- Adjusted EBITDA of positive $30.7 million compared to Adjusted
EBITDA of positive $14.6 million
- For full year 2024, raising revenue expectations to $1.228
billion to $1.248 billion; raising Center Margin expectations to
$382 million to $398 million; raising Adjusted EBITDA expectations
to $105 million to $115 million; and reiterating expectations for
positive Free Cash Flow
“Thanks to the great work and resilience of the LifeStance team,
we mitigated much of the rate pressure that was expected in the
third quarter. This enabled us to surpass our expectations for the
quarter and raise guidance for the full year,” said Ken Burdick,
Chairman and CEO of LifeStance. “We are pleased with the
performance thus far in 2024 and, as we look to 2025, will continue
striving to meet our commitments as we have done for the past eight
consecutive quarters.”
Financial
Highlights |
|
|
|
|
|
|
|
|
|
|
|
Q3 2024 |
|
|
Q3 2023 |
|
|
Y/Y |
|
(in millions) |
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
312.7 |
|
|
$ |
262.9 |
|
|
|
19 |
% |
Income (loss) from
operations |
|
|
0.0 |
|
|
|
(74.4 |
) |
|
|
(100 |
%) |
Center Margin |
|
|
100.4 |
|
|
|
76.2 |
|
|
|
32 |
% |
Net loss |
|
|
(6.0 |
) |
|
|
(61.6 |
) |
|
|
(90 |
%) |
Adjusted EBITDA |
|
|
30.7 |
|
|
|
14.6 |
|
|
|
110 |
% |
As % of Total revenue: |
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
0.0 |
% |
|
|
(28.3 |
%) |
|
|
|
Center Margin |
|
|
32.1 |
% |
|
|
29.0 |
% |
|
|
|
Net loss |
|
|
(1.9 |
%) |
|
|
(23.4 |
%) |
|
|
|
Adjusted EBITDA |
|
|
9.8 |
% |
|
|
5.6 |
% |
|
|
|
(All results compared to prior-year period, unless otherwise
noted)
- Revenue grew 19% to $312.7 million. Strong revenue growth in
the third quarter was driven primarily by improvements in total
revenue per visit and higher visit volumes from net clinician
growth.
- Income from operations was $47 thousand. Net loss was $6.0
million.
- Center Margin grew 32% to $100.4 million, or 32.1% of total
revenue.
- Adjusted EBITDA increased 110% to $30.7 million, or 9.8% of
total revenue. Adjusted EBITDA as a percentage of revenue increased
in the third quarter as a result of higher total revenue per visit,
lower center costs as a percentage of revenue, and improved
operating leverage from revenue growing faster than general and
administrative expenses.
Balance Sheet, Cash Flow and Capital
Allocation
For the nine months ended September 30, 2024, LifeStance
provided $44.9 million cash flow from operations, including $22.7
million during the third quarter of 2024. The Company ended the
third quarter with cash of $102.6 million and net long-term debt of
$279.1 million.
2024 Guidance
LifeStance is providing the following outlook for 2024:
- The Company is raising full year revenue to $1.228 billion to
$1.248 billion; raising Center Margin to $382 million to $398
million; and raising Adjusted EBITDA to $105 million to $115
million. Additionally, the Company continues to expect to generate
positive Free Cash Flow for the full year.
- For the fourth quarter of 2024, the Company expects total
revenue of $302.5 million to $322.5 million, Center Margin of $89
million to $105 million, and Adjusted EBITDA of $18 million to $28
million.
Conference Call, Webcast Information, and
Presentations
LifeStance will hold a conference call today, November 7, 2024
at 8:30 a.m. Eastern Time to discuss the third quarter 2024
results. Investors who wish to participate in the call should dial
1-800-715-9871, domestically, or 1-646-307-1963, internationally,
approximately 10 minutes before the call begins and provide
conference ID number 2787723 or ask to be joined into the
LifeStance call. A real-time audio webcast can be accessed via the
Events and Presentations section of the LifeStance Investor
Relations website (https://investor.lifestance.com), where related
materials will be posted prior to the conference call.
About LifeStance Health Group, Inc.
Founded in 2017, LifeStance (Nasdaq: LFST) is reimagining mental
health. We are one of the nation’s largest providers of virtual and
in-person outpatient mental healthcare for children, adolescents
and adults experiencing a variety of mental health conditions. Our
mission is to help people lead healthier, more fulfilling lives by
improving access to trusted, affordable, and personalized mental
healthcare. LifeStance and its supported practices employ
approximately 7,200 psychiatrists, advanced practice nurses,
psychologists and therapists and operates across 33 states and more
than 550 centers. To learn more, please visit
www.LifeStance.com.
We routinely post information that may be important to investors
on the “Investor Relations” section of our website at
investor.lifestance.com. We encourage investors and potential
investors to consult our website regularly for important
information about us.
Forward-Looking Statements
Statements in this press release and on the related
teleconference that express a belief, expectation or intention, as
well as those that are not historical fact, are forward-looking
statements. These statements include, but are not limited to,
statements with respect to: full year and fourth quarter guidance
and management's related assumptions; the Company’s financial
position; business plans and objectives; operating results; working
capital and liquidity; and other statements contained in this press
release that are not historical facts. When used in this press
release and on the related teleconference, words such as “may,”
“will,” “should,” “could,” “intend,” “potential,” “continue,”
“anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,”
“predict,” “project,” “seek” and similar expressions as they relate
to us are intended to identify forward-looking statements. They
involve a number of risks and uncertainties that may cause actual
events and results to differ materially from such forward-looking
statements. These risks and uncertainties include, but are not
limited to: we may not grow at the rates we historically have
achieved or at all, even if our key metrics may imply future
growth, including if we are unable to successfully execute on our
growth initiatives and business strategies; if we fail to manage
our growth effectively, our expenses could increase more than
expected, our revenue may not increase proportionally or at all,
and we may be unable to execute on our business strategy; our
ability to recruit new clinicians and retain existing clinicians;
if reimbursement rates paid by third-party payors are reduced or if
third-party payors otherwise restrain our ability to obtain or
deliver care to patients, our business could be harmed; we conduct
business in a heavily regulated industry and if we fail to comply
with these laws and government regulations, we could incur
penalties or be required to make significant changes to our
operations or experience adverse publicity, which could have a
material adverse effect on our business, results of operations and
financial condition; we are dependent on our relationships with
supported practices, which we do not own, to provide healthcare
services, and our business would be harmed if those relationships
were disrupted or if our arrangements with these entities became
subject to legal challenges; we operate in a competitive industry,
and if we are not able to compete effectively, our business,
results of operations and financial condition would be harmed; the
impact of health care reform legislation and other changes in the
healthcare industry and in health care spending on us is currently
unknown, but may harm our business; if our or our vendors’ security
measures fail or are breached and unauthorized access to our
employees’, patients’ or partners’ data is obtained, our systems
may be perceived as insecure, we may incur significant liabilities,
including through private litigation or regulatory action, our
reputation may be harmed, and we could lose patients and partners;
our business depends on our ability to effectively invest in,
implement improvements to and properly maintain the uninterrupted
operation and data integrity of our information technology and
other business systems; actual or anticipated changes or
fluctuations in our results of operations; our existing
indebtedness could adversely affect our business and growth
prospects; and other risks and uncertainties set forth under “Risk
Factors” included in the reports we have filed or will file with
the Securities and Exchange Commission, including our Annual Report
on Form 10-K for the year ended December 31, 2023 and
subsequent filings made with the Securities and Exchange
Commission. LifeStance does not undertake to update any
forward-looking statements made in this press release to reflect
any change in management's expectations or any change in the
assumptions or circumstances on which such statements are based,
except as otherwise required by law.
Non-GAAP Financial Information
This press release contains certain non-GAAP financial measures,
including Center Margin, Adjusted EBITDA, and Adjusted EBITDA
margin. Tables showing the reconciliation of these non-GAAP
financial measures to the comparable GAAP measures are included at
the end of this release. Management believes these non-GAAP
financial measures are useful in evaluating the Company’s operating
performance, and may be helpful to securities analysts,
institutional investors and other interested parties in
understanding the Company’s operating performance and prospects.
This press release also refers to Free Cash Flow, which is
calculated as net cash provided by (used in) operating activities
less purchases of property and equipment. Management believes Free
Cash Flow is a useful indicator of liquidity that provides
information to management and investors about the amount of cash
generated from our operations that, after investments in property
and equipment, can be used for future growth. These non-GAAP
financial measures, as calculated, may not be comparable to
companies in other industries or within the same industry with
similarly titled measures of performance. Therefore, the Company’s
non-GAAP financial measures should be considered in addition to,
not as a substitute for, or in isolation from, measures prepared in
accordance with GAAP, such as net loss or income (loss) from
operations.
Center Margin and Adjusted EBITDA anticipated for the fourth
quarter of 2024 and full year 2024 are calculated in a manner
consistent with the historical presentation of these measures at
the end of this release. Reconciliation for the forward-looking
fourth quarter of 2024 and full year 2024 Center Margin, Adjusted
EBITDA guidance and Free Cash Flow is not being provided, as
LifeStance does not currently have sufficient data to accurately
estimate the variables and individual adjustments for such
reconciliation. As such, LifeStance management cannot estimate on a
forward-looking basis without unreasonable effort the impact these
variables and individual adjustments will have on its reported
results.
Management acknowledges that there are many items that impact a
company’s reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results.
Consolidated Financial Information and Reconciliations |
CONSOLIDATED BALANCE
SHEETS(unaudited)(In thousands,
except for par value) |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
102,615 |
|
|
$ |
78,824 |
|
Patient accounts receivable, net |
|
|
158,161 |
|
|
|
125,405 |
|
Prepaid expenses and other current assets |
|
|
26,244 |
|
|
|
21,502 |
|
Total current assets |
|
|
287,020 |
|
|
|
225,731 |
|
NONCURRENT ASSETS |
|
|
|
|
|
|
Property and equipment, net |
|
|
169,974 |
|
|
|
188,222 |
|
Right-of-use assets |
|
|
154,835 |
|
|
|
170,703 |
|
Intangible assets, net |
|
|
195,352 |
|
|
|
221,072 |
|
Goodwill |
|
|
1,293,346 |
|
|
|
1,293,346 |
|
Other noncurrent assets |
|
|
7,414 |
|
|
|
10,895 |
|
Total noncurrent assets |
|
|
1,820,921 |
|
|
|
1,884,238 |
|
Total assets |
|
$ |
2,107,941 |
|
|
$ |
2,109,969 |
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,282 |
|
|
$ |
7,051 |
|
Accrued payroll expenses |
|
|
111,858 |
|
|
|
102,478 |
|
Other accrued expenses |
|
|
43,291 |
|
|
|
35,012 |
|
Contingent consideration |
|
|
2,500 |
|
|
|
8,169 |
|
Operating lease liabilities, current |
|
|
48,959 |
|
|
|
46,475 |
|
Other current liabilities |
|
|
3,624 |
|
|
|
3,688 |
|
Total current liabilities |
|
|
217,514 |
|
|
|
202,873 |
|
NONCURRENT LIABILITIES |
|
|
|
|
|
|
Long-term debt, net |
|
|
279,055 |
|
|
|
280,285 |
|
Operating lease liabilities, noncurrent |
|
|
158,679 |
|
|
|
181,357 |
|
Deferred tax liability, net |
|
|
15,219 |
|
|
|
15,572 |
|
Other noncurrent liabilities |
|
|
381 |
|
|
|
952 |
|
Total noncurrent liabilities |
|
|
453,334 |
|
|
|
478,166 |
|
Total liabilities |
|
$ |
670,848 |
|
|
$ |
681,039 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Preferred stock – par value $0.01 per share; 25,000 shares
authorized as of September 30, 2024 and December 31,
2023; 0 shares issued and outstanding as of September 30, 2024
and December 31, 2023 |
|
|
— |
|
|
|
— |
|
Common stock – par value $0.01 per share; 800,000 shares authorized
as of September 30, 2024 and December 31, 2023; 382,640
and 378,725 shares issued and outstanding as of September 30,
2024 and December 31, 2023,respectively |
|
|
3,826 |
|
|
|
3,789 |
|
Additional paid-in capital |
|
|
2,243,673 |
|
|
|
2,183,684 |
|
Accumulated other comprehensive income |
|
|
771 |
|
|
|
2,303 |
|
Accumulated deficit |
|
|
(811,177 |
) |
|
|
(760,846 |
) |
Total stockholders' equity |
|
|
1,437,093 |
|
|
|
1,428,930 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,107,941 |
|
|
$ |
2,109,969 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(unaudited)(In thousands, except for
Net Loss per Share) |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
TOTAL REVENUE |
|
$ |
312,722 |
|
|
$ |
262,895 |
|
|
$ |
925,490 |
|
|
$ |
775,062 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Center costs, excluding
depreciation and amortizationshown separately below |
|
|
212,291 |
|
|
|
186,686 |
|
|
|
632,527 |
|
|
|
556,280 |
|
General and administrative
expenses |
|
|
85,269 |
|
|
|
130,945 |
|
|
|
269,356 |
|
|
|
317,425 |
|
Depreciation and
amortization |
|
|
15,115 |
|
|
|
19,621 |
|
|
|
56,279 |
|
|
|
58,220 |
|
Total operating expenses |
|
$ |
312,675 |
|
|
$ |
337,252 |
|
|
$ |
958,162 |
|
|
$ |
931,925 |
|
INCOME (LOSS) FROM
OPERATIONS |
|
$ |
47 |
|
|
$ |
(74,357 |
) |
|
$ |
(32,672 |
) |
|
$ |
(156,863 |
) |
OTHER EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement of
contingent consideration |
|
|
15 |
|
|
|
1,867 |
|
|
|
1,975 |
|
|
|
4,443 |
|
Transaction costs |
|
|
(29 |
) |
|
|
— |
|
|
|
(821 |
) |
|
|
(89 |
) |
Interest expense, net |
|
|
(5,413 |
) |
|
|
(5,477 |
) |
|
|
(17,139 |
) |
|
|
(15,688 |
) |
Other expense |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(80 |
) |
|
|
(70 |
) |
Total other expense |
|
$ |
(5,429 |
) |
|
$ |
(3,611 |
) |
|
$ |
(16,065 |
) |
|
$ |
(11,404 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(5,382 |
) |
|
|
(77,968 |
) |
|
|
(48,737 |
) |
|
|
(168,267 |
) |
INCOME TAX (PROVISION)
BENEFIT |
|
|
(575 |
) |
|
|
16,385 |
|
|
|
(1,594 |
) |
|
|
26,964 |
|
NET LOSS |
|
$ |
(5,957 |
) |
|
$ |
(61,583 |
) |
|
$ |
(50,331 |
) |
|
$ |
(141,303 |
) |
NET LOSS PER SHARE, BASIC AND
DILUTED |
|
|
(0.02 |
) |
|
|
(0.17 |
) |
|
|
(0.13 |
) |
|
|
(0.39 |
) |
Weighted-average shares used
to compute basic and diluted net loss per share |
|
|
380,359 |
|
|
|
372,476 |
|
|
|
378,713 |
|
|
|
365,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(5,957 |
) |
|
$ |
(61,583 |
) |
|
$ |
(50,331 |
) |
|
$ |
(141,303 |
) |
OTHER COMPREHENSIVE (LOSS) INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (losses) gains on cash flow hedge, net of tax |
|
|
(1,872 |
) |
|
|
230 |
|
|
|
(1,532 |
) |
|
|
1,107 |
|
COMPREHENSIVE LOSS |
|
$ |
(7,829 |
) |
|
$ |
(61,353 |
) |
|
$ |
(51,863 |
) |
|
$ |
(140,196 |
) |
CONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited)(In thousands) |
|
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
Net loss |
|
$ |
(50,331 |
) |
|
$ |
(141,303 |
) |
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
56,279 |
|
|
|
58,220 |
|
Non-cash operating lease costs |
|
|
29,431 |
|
|
|
30,225 |
|
Stock-based compensation |
|
|
60,026 |
|
|
|
78,469 |
|
Amortization of discount and debt issue costs |
|
|
1,264 |
|
|
|
1,592 |
|
Gain on remeasurement of contingent consideration |
|
|
(1,975 |
) |
|
|
(4,443 |
) |
Other, net |
|
|
998 |
|
|
|
5,105 |
|
Change in operating assets and liabilities, net of businesses
acquired: |
|
|
|
|
|
|
Patient accounts receivable, net |
|
|
(32,757 |
) |
|
|
(48,484 |
) |
Prepaid expenses and other current assets |
|
|
(3,924 |
) |
|
|
(52,293 |
) |
Accounts payable |
|
|
620 |
|
|
|
(3,848 |
) |
Accrued payroll expenses |
|
|
9,381 |
|
|
|
7,622 |
|
Operating lease liabilities |
|
|
(34,300 |
) |
|
|
(30,109 |
) |
Other accrued expenses |
|
|
10,232 |
|
|
|
65,568 |
|
Net cash provided by (used in) operating activities |
|
$ |
44,944 |
|
|
$ |
(33,679 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(15,265 |
) |
|
|
(29,106 |
) |
Acquisitions of businesses, net of cash acquired |
|
|
— |
|
|
|
(19,820 |
) |
Net cash used in investing activities |
|
$ |
(15,265 |
) |
|
$ |
(48,926 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
Proceeds from long-term debt |
|
|
— |
|
|
|
25,000 |
|
Payments of debt issue costs |
|
|
— |
|
|
|
(188 |
) |
Payments of long-term debt |
|
|
(2,194 |
) |
|
|
(1,821 |
) |
Payments of contingent consideration |
|
|
(3,694 |
) |
|
|
(6,402 |
) |
Net cash (used in) provided by financing activities |
|
$ |
(5,888 |
) |
|
$ |
16,589 |
|
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS |
|
|
23,791 |
|
|
|
(66,016 |
) |
Cash and Cash Equivalents -
Beginning of period |
|
|
78,824 |
|
|
|
108,621 |
|
CASH AND CASH EQUIVALENTS – END
OF PERIOD |
|
$ |
102,615 |
|
|
$ |
42,605 |
|
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION |
|
|
|
|
|
|
Cash paid for interest, net |
|
$ |
19,023 |
|
|
$ |
15,424 |
|
Cash paid for taxes, net of refunds |
|
$ |
59 |
|
|
$ |
416 |
|
SUPPLEMENTAL DISCLOSURES OF NON
CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
Contingent consideration incurred in acquisitions of
businesses |
|
$ |
— |
|
|
$ |
1,985 |
|
Acquisition of property and equipment included in liabilities |
|
$ |
1,203 |
|
|
$ |
5,303 |
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO CENTER
MARGIN |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
$ |
47 |
|
|
$ |
(74,357 |
) |
|
$ |
(32,672 |
) |
|
$ |
(156,863 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
15,115 |
|
|
|
19,621 |
|
|
|
56,279 |
|
|
|
58,220 |
|
General and administrative expenses (1) |
|
|
85,269 |
|
|
|
130,945 |
|
|
|
269,356 |
|
|
|
317,425 |
|
Center
Margin |
|
$ |
100,431 |
|
|
$ |
76,209 |
|
|
$ |
292,963 |
|
|
$ |
218,782 |
|
|
(1) Represents salaries, wages and employee benefits for our
executive leadership, finance, human resources, marketing, billing
and credentialing support and technology infrastructure and
stock-based compensation for all employees.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(5,957 |
) |
|
$ |
(61,583 |
) |
|
$ |
(50,331 |
) |
|
$ |
(141,303 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
5,413 |
|
|
|
5,477 |
|
|
|
17,139 |
|
|
|
15,688 |
|
Depreciation and amortization |
|
|
15,115 |
|
|
|
19,621 |
|
|
|
56,279 |
|
|
|
58,220 |
|
Income tax provision (benefit) |
|
|
575 |
|
|
|
(16,385 |
) |
|
|
1,594 |
|
|
|
(26,964 |
) |
Gain on remeasurement of contingent consideration |
|
|
(15 |
) |
|
|
(1,867 |
) |
|
|
(1,975 |
) |
|
|
(4,443 |
) |
Stock-based compensation expense |
|
|
14,895 |
|
|
|
21,525 |
|
|
|
60,026 |
|
|
|
78,469 |
|
Loss on disposal of assets |
|
|
2 |
|
|
|
1 |
|
|
|
80 |
|
|
|
70 |
|
Transaction costs (1) |
|
|
29 |
|
|
|
— |
|
|
|
821 |
|
|
|
89 |
|
Executive transition costs |
|
|
— |
|
|
|
114 |
|
|
|
591 |
|
|
|
636 |
|
Litigation costs (2) |
|
|
224 |
|
|
|
45,418 |
|
|
|
1,053 |
|
|
|
49,267 |
|
Strategic initiatives (3) |
|
|
134 |
|
|
|
790 |
|
|
|
1,292 |
|
|
|
3,242 |
|
Real estate optimization and restructuring charges (4) |
|
|
— |
|
|
|
1,257 |
|
|
|
(250 |
) |
|
|
4,977 |
|
Amortization of cloud-based software implementation costs (5) |
|
|
298 |
|
|
|
— |
|
|
|
478 |
|
|
|
— |
|
Other expenses (6) |
|
|
— |
|
|
|
214 |
|
|
|
172 |
|
|
|
803 |
|
Adjusted
EBITDA |
|
$ |
30,713 |
|
|
$ |
14,582 |
|
|
$ |
86,969 |
|
|
$ |
38,751 |
|
|
(1) Primarily includes capital markets advisory, consulting,
accounting and legal expenses related to our acquisitions and to
the secondary offering completed in the second quarter of 2024.(2)
Litigation costs include only those costs which are considered
non-recurring and outside of the ordinary course of business based
on the following considerations, which we assess regularly: (i) the
frequency of similar cases that have been brought to date, or are
expected to be brought within two years, (ii) the complexity of the
case (e.g., complex class action litigation), (iii) the nature of
the remedy(ies) sought, including the size of any monetary damages
sought, (iv) the counterparty involved, and (v) our overall
litigation strategy. During the three and nine months ended
September 30, 2024 and 2023, litigation costs included cash
expenses related to three distinct litigation matters, including
(x) a securities class action litigation, (y) a privacy class
action litigation and (z) a compensation model class action
litigation.(3) Strategic initiatives consist of expenses directly
related to a multi-phase system upgrade in connection with our
recent and significant expansion. During each of the three and nine
months ended September 30, 2024 and 2023, we continued a
process of evaluating and adopting critical enterprise-wide systems
for (i) human resources management, (ii) clinician credentialing
and onboarding process, and for the three and nine months ended
September 30, 2023, (iii) a scalable electronic health
resources system. Strategic initiatives represents costs, such as
third-party consulting costs and one-time costs, that are not part
of our ongoing operations related to these enterprise-wide systems.
We considered the frequency and scale of this multi-part enterprise
upgrade when determining that the expenses were not normal,
recurring operating expenses.(4) Real estate optimization and
restructuring charges consist of cash expenses and non-cash charges
related to our real estate optimization initiative, which include
certain asset impairment and disposal costs, certain gains and
losses related to early lease terminations, and exit and disposal
costs related to our real estate optimization initiative to
consolidate our physical footprint during the three and nine months
ended September 30, 2023. As the decision to close these
centers was part of a significant strategic project driven by a
historic shift in behavior, the magnitude of center closures has
been and is expected to be greater than what would be expected as
part of ordinary business operations and do not constitute normal
recurring operating activities. During the nine months ended
September 30, 2024, real estate optimization and restructuring
charges consisted of certain gains and losses related to early
lease terminations of previously abandoned real estate leases in
2023.(5) Represents amortization of capitalized implementation
costs related to cloud-based software arrangements that are
included within general and administrative expenses included in our
unaudited consolidated statements of operations and comprehensive
loss.(6) Primarily includes costs incurred to consummate or
integrate acquired centers, certain of which are wholly-owned and
certain of which are supported practices, in addition to the
compensation paid to former owners of acquired centers and related
expenses that are not reflective of the ongoing operating expenses
of our centers. Acquired center integration and other are
components of general and administrative expenses included in our
unaudited consolidated statements of operations and comprehensive
loss. Former owner fees is a component of center costs, excluding
depreciation and amortization included in our unaudited
consolidated statements of operations and comprehensive loss.
Exhibit 99.1
Investor Relations Contact
Monica Prokocki
VP of Finance & Investor Relations
602-767-2100
investor.relations@lifestance.com
LifeStance Health (NASDAQ:LFST)
Historical Stock Chart
From Nov 2024 to Dec 2024
LifeStance Health (NASDAQ:LFST)
Historical Stock Chart
From Dec 2023 to Dec 2024