MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a
technology-enabled pharmacy company, today reported financial
results for the three months and full year ended December 31,
2021.
“I am excited to have joined MedAvail at a pivotal time when I
believe that there is a tremendous need and a rising demand in
pharmacy services for our technology and pharmacy solutions. Since
joining MedAvail, my confidence in our business has only
strengthened further,” said Mark Doerr, Chief Executive Officer of
MedAvail. “As we look ahead to 2022, I believe that we are strongly
positioned with expansion in dispensing deployments and
partnerships well underway and a clear roadmap seeking to deliver
profitable and sustainable growth over the long-term.”
Fourth Quarter 2021 Financial and Operational
Highlights
All comparisons, unless otherwise noted, are to the three months
ended December 31, 2020.
- Total revenue was $7.3 million
- Total revenue by segment
- Retail Pharmacy Services revenue increased 170% to $6.8
million
- Pharmacy Technology revenue decreased 24% to $0.4 million
- Net loss was $12.6 million compared to a net loss of $12.1
million
- Adjusted EBITDA loss of $10.9 million compared to $8.9
million
- Cash, and cash equivalents of $19.7 million as of December 31,
2021
Full Year 2021 Financial and Operational Highlights
All comparisons, unless otherwise noted, are to the twelve
months ended December 31, 2020.
- Total revenue was $22.1 million
- Total revenue by segment
- Retail Pharmacy Services revenue increased 161% to $20.2
million
- Pharmacy Technology revenue decreased 69% to $1.9 million.
Total revenue for the third quarter of 2020 included a
non-recurring benefit of $4.7 million recognized in conjunction
with a commercial agreement from 2018; excluding this benefit,
Pharmacy Technology revenue increased 27%.
- 81 MedCenter total net cumulative deployments compared to 46
MedCenter total net cumulative deployments, representing 76% growth
- 68 MedCenter total net dispensing deployments compared to 38
total MedCenter net dispensing deployments, representing 79%
growth
- Net loss was $43.8 million compared to a net loss of $26.8
million
- Adjusted EBITDA loss of $39.6 million compared to $23.8
million
Financial Outlook
MedAvail expects total revenue for the first quarter of 2022 to
be in excess of $8.8 million, which represents more than double its
total revenue in the same period in 2021. The company expects
adjusted gross margin improvement in the first quarter of 2022
compared to the fourth quarter of 2021.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m.
ET on Thursday, March 24, 2022, to discuss its fourth quarter and
full year 2021 financial results. A webcast of the conference call
can be accessed at https://investors.medavail.com. The webcast will
be archived and available for replay for at least 90 days after the
event.
Definition of Key Metrics
Dispensing Deployments
We define dispensing deployments as deployments that are live,
that is, have payer network acceptance, pharmacy board approvals
and trained clinical staff or clinical account managers. Moreover,
we work closely with the state boards of pharmacy and our clinic
partners to reduce the time to progress from deployment to becoming
dispensing deployments, which generally ranges from 4 to 12
weeks.
About MedAvail
MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled
pharmacy organization, providing turnkey in-clinic pharmacy
services through its proprietary robotic dispensing platform, the
MedAvail MedCenter, and home delivery operations, to Medicare
clinics. MedAvail helps patients to optimize drug adherence,
resulting in better health outcomes. Learn more at
www.medavail.com.
Non-GAAP Financial Measures
MedAvail refers to certain financial measures that are not
recognized under U.S. generally accepted accounting principles
("GAAP") in this press release, including adjusted EBITDA. See the
schedules to this press release for additional information and
reconciliations of such non-GAAP financial measures.
Forward Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as "believe," "may," "will," "estimate,"
"continue," "anticipate," "intend," "expect," "should," "would,"
"plan," "predict," "potential," "seem," "seek," "future,"
"outlook," "project," and similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but
are not limited to, statements regarding MedAvail's business
strategy and market opportunity; potential future revenue
projections and expectations for growth and profitability;
expansion plans; margin improvement; and customer partnerships.
These statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of MedAvail's management and are not predictions of actual
performance. Forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements, including but not
limited to risks discussed under the heading "Risk Factors" in both
MedAvail’s Annual Report on Form 10-K, filed with the Securities
and Exchange Commission (“SEC”) on March 31, 2021, and its
Quarterly Report on Form 10-Q, filed with the SEC on November 9,
2021, and other filings MedAvail makes with the SEC in the future.
Additional information is also set forth in MedAvail’s Annual
Report on Form 10-K for the year ended December 31, 2021 to be
filed with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. These
forward-looking statements speak only as of the date hereof and
MedAvail specifically disclaims any obligation to update these
forward-looking statements.
SOURCE MedAvail Holdings, Inc.
MEDAVAIL HOLDINGS,
INC.
Consolidated Statements of
Operations and Comprehensive Loss
(In thousands, except per-share
amounts)
(Unaudited)
Three Months Ended December
31,
Years Ended December
31,
2021
2020 (1)
2021
2020 (1)
Revenue:
Pharmacy and hardware revenue
$
6,954
$
3,009
$
21,119
$
10,596
Service revenue
326
91
1,010
3,372
Total revenue
7,280
3,100
22,129
13,968
Cost of products sold and services:
Pharmacy and hardware cost of products
sold
7,562
3,250
21,306
8,593
Service costs
80
96
506
212
Total cost of products sold and
services
7,642
3,346
21,812
8,805
Operating expense:
Pharmacy operations
4,068
2,195
13,496
6,146
General and administrative
5,544
5,795
22,277
15,863
Selling and marketing
2,148
1,206
7,204
3,283
Research and development
248
150
849
682
Merger expenses
—
2,084
—
4,691
Total operating expense
12,008
11,430
43,826
30,665
Operating loss
(12,370
)
(11,676
)
(43,509
)
(25,502
)
Other income (loss), net
—
(118
)
206
(110
)
Interest income
5
28
79
43
Interest expense
(261
)
(330
)
(589
)
(1,241
)
Loss before income taxes
(12,626
)
(12,096
)
(43,813
)
(26,810
)
Income tax expense
—
—
(2
)
—
Net loss
$
(12,626
)
$
(12,096
)
$
(43,815
)
$
(26,810
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
$
—
$
24
$
—
$
22
Total comprehensive loss
$
(12,626
)
$
(12,072
)
$
(43,815
)
$
(26,788
)
Net loss per share - basic and diluted
$
(0.38
)
$
(0.71
)
$
(1.34
)
$
(4.69
)
Weighted average shares outstanding -
basic and diluted
32,852
17,003
32,656
5,722
(1) Certain activity was reclassified to be consistent with the
current presentation, see comparative tables that follow.
MEDAVAIL HOLDINGS,
INC.
Operating Expense
Reclassifications
(In thousands)
(Unaudited)
Three Months Ended December
31, 2020
Current presentation
As previously reported
Change
Pharmacy operations
$
2,195
$
2,033
$
162
General and administrative
5,795
6,019
(224
)
Selling and marketing
1,206
1,147
59
Research and development
150
149
1
$
9,346
$
9,348
$
(2
)
Year Ended December 31,
2020
Current presentation
As previously reported
Change
Pharmacy operations
$
6,146
$
5,687
$
459
General and administrative
15,863
16,562
(699
)
Selling and marketing
3,283
3,043
240
$
25,292
$
25,292
$
—
MEDAVAIL HOLDINGS, INC.
Consolidated Condensed Balance
Sheets
(In thousands, except share and
per-share amounts)
(Unaudited)
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
19,689
$
57,936
Restricted cash
400
60
Accounts receivable, net
1,189
1,520
Inventories
3,916
2,817
Prepaid expenses and other current
assets
2,191
1,534
Total current assets
27,385
63,867
Property, plant and equipment, net
5,692
3,795
Right-of-use assets
2,538
1,239
Other assets
228
203
Intangible assets, net
2,300
227
Total assets
$
38,143
$
69,331
Liabilities and Shareholders’
Equity (Deficit)
Current liabilities:
Accounts payable and accrued
liabilities
$
6,740
$
4,512
Short-term debt
—
2,161
Deferred revenue
83
275
Current portion of lease obligations
682
665
Total current liabilities
7,505
7,613
Long-term debt
9,538
—
Long-term portion of lease obligations
2,027
651
Total liabilities
19,070
8,264
Commitments and contingencies
Stockholders' equity (deficit):
Common shares ($0.001 par value,
100,000,000 shares authorized, 32,902,048 and 31,816,020 shares
issued and outstanding at December 31, 2021 and 2020,
respectively)
33
32
Warrants
1,373
2,614
Additional paid-in-capital
216,685
213,624
Accumulated other comprehensive loss
(6,928
)
(6,928
)
Accumulated deficit
(192,090
)
(148,275
)
Total shareholders’ equity
19,073
61,067
Total liabilities and shareholders’
equity
$
38,143
$
69,331
MEDAVAIL HOLDINGS, INC.
Supplemental Financial
Information - Segments
(In thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy Technology
Total
Three Months Ended December 31,
2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
6,846
$
—
$
6,846
Hardware
—
—
—
Subscription
—
108
108
Total pharmacy and hardware revenue
6,846
108
6,954
Service revenue:
Software integration
—
—
—
Software
—
134
134
Maintenance and support
—
47
47
Installation
—
—
—
Professional services and other
—
145
145
Total service revenue
—
326
326
Total revenue
6,846
434
7,280
Cost of products sold and services (1)
6,901
741
7,642
Gross profit
$
(55
)
$
(307
)
(362
)
(1) The pharmacy technology segment includes a provision for
inventory of $626 thousand.
Retail Pharmacy
Services
Pharmacy Technology
Total
Three Months Ended December 31,
2020
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
2,532
$
—
$
2,532
Hardware
—
353
353
Subscription
—
124
124
Total pharmacy and hardware revenue
2,532
477
3,009
Service revenue:
Software integration
—
—
—
Software
—
20
20
Maintenance and support
—
19
19
Installation
—
27
27
Professional services and other
—
25
25
Total service revenue
—
91
91
Total revenue
2,532
568
3,100
Cost of products sold and services (1)
2,685
661
3,346
Gross profit
$
(153
)
$
(93
)
$
(246
)
(1) The retail pharmacy services and pharmacy technology
segments include provisions for inventory of $173 thousand and $179
thousand, respectively.
MEDAVAIL HOLDINGS,
INC.
Supplemental Financial
Information - Segments
(In thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy Technology
Total
Year Ended December 31, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
20,203
$
—
$
20,203
Hardware
—
470
470
Subscription
—
446
446
Total pharmacy and hardware revenue
20,203
916
21,119
Service revenue:
Software integration
—
—
—
Software
—
259
259
Maintenance and support
—
161
161
Installation
—
39
39
Professional services and other
—
551
551
Total service revenue
—
1,010
1,010
Total revenue
20,203
1,926
22,129
Cost of products sold and services (1)
20,031
1,781
21,812
Gross profit
$
172
$
145
$
317
(1) The pharmacy technology segment includes a provision for
inventory of $626 thousand.
Retail Pharmacy
Services
Pharmacy Technology
(1)
Total
Year Ended December 31, 2020
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
7,728
$
—
$
7,728
Hardware
—
2,401
2,401
Subscription
—
467
467
Total pharmacy and hardware revenue
7,728
2,868
10,596
Service revenue:
Software integration
—
3,168
3,168
Software
—
44
44
Maintenance and support
—
58
58
Installation
—
55
55
Professional services and other
—
47
47
Total service revenue
—
3,372
3,372
Total revenue
7,728
6,240
13,968
Cost of products sold and services (2)
7,744
1,061
8,805
Gross profit
$
(16
)
$
5,179
$
5,163
(1) Includes $1.5 million of hardware sales and $3.2 million of
software integration sales associated with a non-recurring
commercial agreement. (2) The retail pharmacy services and pharmacy
technology segments include provisions for inventory of $250
thousand and $179 thousand, respectively.
Non-GAAP Financial Measures
To supplement our consolidated condensed financial statements,
which are prepared and presented in accordance with GAAP, we use
the following non-GAAP financial measures: EBITDA, and adjusted
EBITDA. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP.
We define Adjusted EBITDA for a particular period as net (loss)
income before interest, taxes, depreciation and amortization, and
as further adjusted for non-recurring revenue from a commercial
agreement, inventory adjustment, merger-related expenses, and
stock-based compensation expense.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. We believe that these non-GAAP
financial measures provide meaningful supplemental information
regarding our performance by excluding certain items that may not
be indicative of our recurring core business operating results,
like one-time transaction costs related to the reverse merger. We
believe that both management and investors benefit from referring
to these non-GAAP financial measures in assessing our performance
and when planning, forecasting, and analyzing future periods. These
non-GAAP financial measures also facilitate management's internal
comparisons to our historical performance and liquidity as well as
comparisons to our competitors' operating results. We believe these
non-GAAP financial measures are useful to investors both because
(1) they allow for greater transparency with respect to key metrics
used by management in its financial and operational decision-making
and (2) they are used by our institutional investors and the
analyst community to help them analyze the health of our
business.
There are a number of limitations related to the use of non-GAAP
financial measures. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures and evaluating these
non-GAAP financial measures together with their relevant financial
measures in accordance with GAAP.
MEDAVAIL HOLDINGS,
INC.
Reconciliation of GAAP to
Non-GAAP Measures
(In thousands)
(unaudited)
Three Months Ended December
31,
Years Ended December
31,
2021
2020
2021
2020
Net loss
(12,626
)
(12,096
)
(43,815
)
(26,810
)
Adjustments to calculate EBITDA:
Interest income
(5
)
(28
)
(79
)
(43
)
Interest expense
261
330
589
1,241
Income tax expense
—
—
2
—
Depreciation and amortization (1)
569
298
1,827
1,089
EBITDA
(11,801
)
(11,496
)
(41,476
)
(24,523
)
Adjustments as follows:
Inventory adjustment (2)
626
352
626
429
Non-recurring commercial agreement (3)
—
—
—
(4,729
)
Merger expenses
—
2,084
—
4,691
Share-based compensation expense
257
155
1,205
380
Adjusted EBITDA
(10,918
)
(8,905
)
(39,645
)
(23,752
)
(1) Excludes $203 thousand and $750 thousand of operating lease
amortization for the three months and year ended December 31, 2021,
respectively. (2) Includes inventory cost adjustments. (3) The year
ended December 31, 2020 includes $1.5 million of hardware sales and
$3.2 million of software integration revenue associated with a
non-recurring commercial agreement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220324005933/en/
Investor Relations Caroline Paul Gilmartin Group
ir@medavail.com
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