MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a
technology-enabled pharmacy company, today reported financial
results for the three months ended March 31, 2022.
“I am proud of our team’s strong start to the year. We delivered
robust sales growth in the first quarter and achieved a milestone
in our Pharmacy Technology business with the completion of our
integration with Epic,” said Mark Doerr, Chief Executive Officer of
MedAvail. “There is clear momentum and demand for our
differentiated pharmacy technology solutions, and we are
deliberately investing in our teams and business to drive this
growth. We are excited for our path forward and the significant
opportunity ahead, as we focus on execution of our expansion
strategy with new and existing clinic partners and driving
initiatives to deliver sustainable and profitable growth.”
Recent Operational Highlights
- Ended first quarter of 2022 with 92 MedCenter total net
cumulative deployments, a 14% increase from the end of the fourth
quarter of 2021
- Ended first quarter of 2022 with 88 MedCenter total net
dispensing deployments, a 29% increase from the end of the fourth
quarter of 2021
- Achieved milestone with Epic integration and the availability
of the MedCenter platform in the Epic App Orchard Gallery
- Completed rewrite of MedDispense software intended to enable
greater flexibility and faster deployment of MedCenters
- Expanded partnership with IMA Medical Group to open SpotRx
locations across the IMA network in Florida, including 17
additional and five de novo IMA medical centers
- Broadened partnership with Oak Street Health to add SpotRx
locations in four de novo sites in Arizona
- Expanded partnership with Cano Health to open SpotRx locations
in nine additional sites in Florida
- Important enhancement of leadership team with accomplished
executives who bring directly relevant track records of success
with the appointments of Steven Hess to Executive Vice President,
General Manager of SpotRx; Bob McClune to Senior Vice President of
Data and Analytics; and Matt Broome to Executive Vice President,
Technology
First Quarter 2022 and Recent Financial Highlights
All comparisons, unless otherwise noted, are to the three months
ended March 31, 2021.
- Total revenue increased 126% to $9.1 million
- Total revenue by segment
- Retail Pharmacy Services revenue increased 159% to $8.8
million
- Pharmacy Technology revenue decreased 56% to $0.3 million
- Net operating loss was $12.8 million compared to $9.7
million
- Adjusted EBITDA loss of $11.8 million compared to $8.9
million
- The Company completed its first closing of a private placement
for the sale of common stock, together with the issuance of
warrants to purchase common stock. The first closing of this
private placement was on April 4, 2022, that yielded gross proceeds
of approximately $40 million. The second closing is expected to
subsequently follow on July 1, 2022, following the satisfaction or
waiver of the conditions to closing, and yield approximately $10
million in gross proceeds. If all warrants that are sold and issued
following the completion of these closings are fully exercised, the
Company would receive additional gross proceeds of approximately
$29 million.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m.
ET on Thursday, May 12, 2022, to discuss its first quarter 2022
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 sites 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.
Net Cumulative Deployments
Net cumulative deployments includes dispensing deployments and
installed not yet dispensing deployments, but excludes
decommissioned clinics, pilots and demo sites.
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; customer
demand and expansion plans; margin improvement; improvements in
deployment efficiency and speed; anticipated proceeds from private
offerings; 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 MedAvail’s Annual
Report on Form 10-K, filed with the Securities and Exchange
Commission (“SEC”) on March 29, 2022, 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, and other filings MedAvail makes with the
SEC in the future. 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 Condensed
Statements of Operations
(in thousands, except share and
per share data)
(Unaudited)
Three Months Ended March
31,
2022
2021 (1)
Revenue:
Pharmacy and hardware revenue
$
9,014
$
3,781
Service revenue
100
246
Total revenue
9,114
4,027
Cost of products sold and services:
Pharmacy and hardware cost of products
sold
8,563
3,526
Service costs
50
181
Total cost of products sold and
services
8,613
3,707
Operating expenses:
Pharmacy operations
3,929
2,593
General and administrative
6,535
5,676
Selling and marketing
2,313
1,534
Research and development
493
168
Merger expenses
—
—
Total operating expense
13,270
9,971
Operating loss
(12,769
)
(9,651
)
Other gain (loss), net
—
161
Interest income
1
40
Interest expense
(254
)
(2
)
Loss before income taxes
(13,022
)
(9,452
)
Income tax expense
—
—
Net loss
$
(13,022
)
$
(9,452
)
(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 March 31,
2021
Current presentation
As previously reported
Change
Pharmacy operations
$
2,593
$
1,911
$
682
General and administrative
5,676
6,515
(839
)
Selling and marketing
1,534
1,377
157
$
9,803
$
9,803
$
—
MEDAVAIL HOLDINGS,
INC.
Consolidated Condensed Balance
Sheets
(in thousands, except share and
per share amounts)
March 31,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
5,274
$
19,689
Restricted cash
676
400
Accounts receivable (net of allowance for
doubtful accounts of $96 thousand for March 31, 2022, $60 thousand
for December 31, 2021)
1,748
1,189
Inventories
5,088
3,916
Prepaid expenses and other current
assets
3,105
2,191
Total current assets
15,891
27,385
Property, plant and equipment, net
6,175
5,692
Intangible assets, net
2,765
2,300
Right-of-use assets
2,628
2,538
Other assets
233
228
Total assets
$
27,692
$
38,143
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
8,527
$
6,740
Short-term debt
—
—
Deferred revenue
107
83
Current portion of lease obligations
733
682
Total current liabilities
9,367
7,505
Long-term debt, net
9,608
9,538
Long-term portion of lease obligations
2,102
2,027
Other liabilities
—
—
Total liabilities
21,077
19,070
Commitments and contingencies
Stockholders' deficit:
Common shares ($0.001 par value,
100,000,000 shares authorized, 32,908,922 and 32,902,048 shares
issued and outstanding at March 31, 2022 and December 31, 2021,
respectively)
33
33
Warrants
1,373
1,373
Additional paid-in-capital
217,249
216,685
Accumulated other comprehensive loss
(6,928
)
(6,928
)
Accumulated deficit
(205,112
)
(192,090
)
Total stockholders' equity
6,615
19,073
Total liabilities and stockholders'
equity
$
27,692
$
38,143
MEDAVAIL HOLDINGS,
INC.
Supplemental Financial
Information - Segments
(in thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy Technology
Total
Three Months Ended March 31,
2022
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
8,849
$
—
$
8,849
Hardware
—
56
56
Subscription
—
109
109
Total pharmacy and hardware revenue
8,849
165
9,014
Service revenue:
Software integration
—
—
—
Software
—
48
48
Maintenance and support
—
32
32
Installation
—
6
6
Professional services and other
—
14
14
Total service revenue
—
100
100
Total revenue
8,849
265
9,114
Cost of products sold and services
8,482
131
8,613
Segment gross profit
$
367
$
134
501
Retail Pharmacy
Services
Pharmacy Technology
Total
Three Months Ended March 31,
2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
3,418
$
—
$
3,418
Hardware
—
241
241
Subscription
—
122
122
Total pharmacy and hardware revenue
3,418
363
3,781
Service revenue:
Software integration
—
—
—
Software
—
33
33
Maintenance and support
—
31
31
Installation
—
16
16
Professional services and other
—
166
166
Total service revenue
—
246
246
Total revenue
3,418
609
4,027
Cost of products sold and services
3,329
378
3,707
Segment gross profit
$
89
$
231
320
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 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.
Unaudited Reconciliation of
GAAP to Non-GAAP Measures
(in thousands)
Three Months Ended March
31,
2022
2021 (1)
Net loss
$
(13,022
)
$
(9,452
)
Adjustments to calculate EBITDA:
Interest income
(1
)
(40
)
Interest expense
254
2
Income tax expense
—
—
Depreciation and amortization (1)
432
340
EBITDA
$
(12,337
)
$
(9,150
)
Adjustments as follows:
Share-based compensation expense
564
260
Adjusted EBITDA
$
(11,773
)
$
(8,890
)
(1) Excludes $166 thousand and $162 thousand in operating lease
amortization for the three months ended March 31, 2022, and 2021,
respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220512006020/en/
Investor Relations Caroline Paul Gilmartin Group
ir@medavail.com
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