The Oncology Institute, Inc. (NASDAQ: TOI) (“TOI” or the
“Company”), one of the largest value-based community oncology
groups in the United States, today reported financial results for
its three and nine months ended September 30, 2024.
Recent Operational Highlights
Include
- 79.9% increase
in Dispensary segment revenue compared to prior year quarter
- Welcomed Rob
Carter, as our new Chief Financial Officer
- 3 new capitation
contracts signed across 2 states including both medical and
radiation oncology services, which brings to 13 our 2024 newly
signed capitation contracts
- Started second capitation contract
in Florida directly with a health plan partner, bringing total
estimated Medicare Advantage lives to 27,000 in this state
- Achieved certification to start
radiopharmaceutical therapy in California, one of the few
community-based centers to offer this outside of the hospital
setting
- Opened first two clinics in Oregon,
in Portland and Salem, aligned to first capitation contract start
in this state
- 6% reduction in SG&A expenses and
revenue increase of 21.8% compared to prior year quarter
Third Quarter 2024 Financial
Highlights
- Consolidated
revenue of $99.9 million, an increase of 21.8% from $82.0 million
in the prior year quarter
- Gross profit of
$14.4 million, a decrease of 10.1% compared to the prior year
quarter, and gross margin of 14.4%, a decrease from 19.5% in the
prior year quarter
- Net loss of
$16.1 million compared to net loss of $17.4 million for the prior
year quarter
- Basic and
diluted (loss) earnings per share of $(0.18) compared to $(0.19)
for the prior year quarter
- Adjusted EBITDA
of $(8.2) million compared to $(5.3) million for the prior year
quarter
- Cash and cash
equivalents of $47.4 million as of September 30, 2024
Management Commentary
Daniel Virnich, CEO of TOI, commented, "We are
pleased to report strong results for the third quarter of 2024,
which reflect our continued focus on growth, operational
efficiency, and delivering value to our customers and shareholders.
During this period, we continued to break monthly fill records for
our oral drug revenue. We recorded a revenue increase of 21.8%
compared to prior year quarter, while further reducing SG&A.
Our performance underscores the effectiveness of our strategy and
the commitment of our team, particularly as we navigate a dynamic
environment."
Third Quarter 2024 Results (for the
three months ended September 30, 2024)
Consolidated revenue for Q3 2024 was $99.9
million, an increase of 21.8% compared to Q3 2023, and a 1.3%
increase compared to Q2 2024.
Revenue for patient services was $49.8 million,
down 7.2% compared to Q3 2023. Dispensary revenue increased 79.9%
compared to Q3 2023 primarily due to an increase in the number of
filled prescriptions for our California pharmacy. Clinical trials
& other revenue increased by 20.5% compared to Q3 2023
primarily due to an increase in California Proposition 56 revenue
and TOI Clinical Research revenue.
Gross profit in Q3 2024 was $14.4 million, a
decrease of 10.1% compared to Q3 2023. The decrease was primarily
driven by ongoing cost management fluctuations and DIR fee run out
of oral and IV drugs. Gross profit is calculated by subtracting
direct costs of patient services, dispensary, and clinical trials
and other from consolidated revenues.
Selling, general and administrative ("SG&A")
expenses in Q3 2024 were $26.6 million or 26.7% of revenue,
compared with $28.2 million, or 34.4% of revenue, in Q3 2023.
During Q3 2024, share-based compensation expense was $2.4 million.
The decrease in SG&A expenses was due to a re-alignment and
negotiations with our vendors and a decrease in share-based
compensation expense of approximately $2.3 million compared to the
same quarter prior year.
Net loss for Q3 2024 was $16.1 million, a
decrease of $1.3 million compared to Q3 2023 primarily due to a
change in the fair value of derivative liabilities of $20 thousand
resulting in a gain in Q3 2024 as compared to $1.5 million loss in
Q3 2023.
Adjusted EBITDA was $(8.2) million, a decrease
of $2.9 million compared to Q3 2023, primarily due to a decrease in
gross profit.
Nine Months ended 2024 Results (for the
nine months ended September 30, 2024)
Consolidated revenue for the nine months ended
September 30, 2024 was $293.1 million, an increase of 22.9%
compared to the same period prior year.
Revenue for patient services in the nine months
ended September 30, 2024 was $154.7 million, down 1.7% compared to
the same period prior year. Dispensary revenue increased 73.6%
compared to the same period prior year due to an increase in the
number of filled prescriptions related to our California pharmacy.
Clinical trials & other revenue increased by 25.8% compared to
the same period prior year primarily due to an increase in
California Proposition 56 revenue and TOI Clinical Research
revenue.
Gross profit for the nine months ended September
30, 2024 was $39.4 million, a decrease of 12.9% compared to the
same period prior year. The decrease was primarily driven by
ongoing cost management fluctuations. Gross profit is calculated by
subtracting direct costs of patient services, dispensary, and
clinical trials and other from consolidated revenues.
SG&A expenses for nine months ended September
30, 2024 were $83.0 million or 28.3% of revenue, compared with
$85.8 million or 36.0% of revenue, for the same period prior year.
During the nine months ended September 30, 2024, share-based
compensation expense was $9.9 million compared to $13.7 million for
the same period of 2023.
Net loss for the nine months ended September 30,
2024 was $51.5 million, a decrease of $12.8 million compared to the
same period prior year, primarily due to a $16.9 million goodwill
impairment for the nine months ended September 30, 2023 that did
not occur in the same period of 2024, partially offset by the
change in the fair value of derivative liabilities.
Adjusted EBITDA was $(27.8) million, a decrease of
$8.2 million compared to the same period prior year, primarily due
to a decrease in gross profit.
Review of Strategic
Alternatives
TOI has completed its review of strategic,
financial, and operational alternatives. After a thorough and
careful assessment of a range of options, the Company’s Board of
Directors has determined that the best course of action is to
continue with its current strategic plan. This decision reflects
the Board’s confidence in the Company’s core strengths, market
position, and growth potential in light of our recent positive
business development activity.
Webcast and Conference Call
TOI will host a conference call on Wednesday,
November 13, 2024 at 5:00 p.m. (Eastern Time) to discuss third
quarter results and management’s outlook for future financial and
operational performance.
The conference call can be accessed live over
the phone by dialing 1-877-407-0789, or for international callers,
1-201-689-8562. A replay will be available two hours after the call
and can be accessed by dialing 1-844-512-2921, or for international
callers, 1-412-317-6671. The passcode for the live call and the
replay is 13744947. The replay will be available until August 20,
2024.
Interested investors and other parties may also
listen to a simultaneous webcast of the conference call by logging
onto the Investor Relations section of TOI's website at
https://investors.theoncologyinstitute.com.
About The Oncology Institute,
Inc.
Founded in 2007, TOI is advancing oncology by
delivering highly specialized, value-based cancer care in the
community setting. TOI offers cutting-edge, evidence-based cancer
care to a population of approximately 1.9 million patients
including clinical trials, transfusions, and other services
traditionally associated with the most advanced care delivery
organizations. With nearly 120 employed clinicians and more than
700 teammates in over 72 clinic locations and growing. TOI also
provides some management services to an additional 14 independent
oncology practices. TOI is changing oncology for the better. For
more information visit www.theoncologyinstitute.com.
Forward-Looking Statements
This press release includes certain statements
that are not historical facts but are forward-looking statements
for purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as
“preliminary,” “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “should,” “would,” “plan,”
“project,” “predict,” “potential,” “guidance,” “approximately,”
“seem,” “seek,” “future,” “outlook,” 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 projections,
anticipated financial results, estimates and forecasts of revenue
and other financial and performance metrics and projections of
market opportunity and expectations. These statements are based on
various assumptions and on the current expectations of TOI and are
not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and are not
intended to serve as, and must not be relied on by anyone as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and will differ from assumptions. Many
actual events and circumstances are beyond the control of TOI.
These forward-looking statements are subject to a number of risks
and uncertainties, including the accuracy of the assumptions
underlying the 2024 outlook discussed herein, the outcome of
judicial and administrative proceedings to which TOI may become a
party or investigations to which TOI may become or is subject that
could interrupt or limit TOI’s operations, result in adverse
judgments, settlements or fines and create negative publicity;
changes in TOI’s patient or payors' preferences, prospects and the
competitive conditions prevailing in the healthcare sector; failure
to address the need to meet stock exchange continued listing
standards and the possibility that the Company may have to effect a
reverse stock split; the impact of COVID-19 on TOI’s business;
those factors discussed in the documents of TOI filed, or to be
filed, with the SEC, including the Item 1A. "Risk Factors" section
of TOI's Annual Report on Form 10-K for the year ended December 31,
2023 filed with the SEC on March 28, 2024 and any subsequent
Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If
the risks materialize or assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that TOI
currently is evaluating or does not presently know or that TOI
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect TOI’s
plans or forecasts of future events and views as of the date of
this press release. TOI anticipates that subsequent events and
developments will cause TOI’s assessments to change. TOI does not
undertake any obligation to update any of these forward-looking
statements. These forward-looking statements should not be relied
upon as representing TOI’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Financial Information; Non-GAAP
Financial Measures
Some of the financial information and data
contained in this press release, such as Adjusted EBITDA, have not
been prepared in accordance with United States generally accepted
accounting principles (“GAAP”). TOI’s non-GAAP financial measures
may be different from non-GAAP financial measures used by other
companies. The presentation of non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial measures determined in accordance with GAAP.
Because of the limitations of non-GAAP financial measures, you
should consider the non-GAAP financial measures presented in this
press release in conjunction with TOI’s financial statements and
the related notes thereto.
TOI believes that the use of Adjusted EBITDA
provides an additional tool to assess operational performance and
results of our performance to plan and forecast future periods, and
factors and trends in, and in comparing our financial measures
with, other similar companies, many of which present similar
non-GAAP financial measures to investors. The principal limitation
of Adjusted EBITDA is that it excludes significant expenses and
income that are required by GAAP to be recorded in TOI's financial
statements.
TOI defines Adjusted EBITDA as net (loss) income
plus depreciation, amortization, interest, taxes, non-cash items,
share-based compensation, goodwill impairment charges, change in
fair value of liabilities, unrealized gains or losses on
investments and other adjustments to add-back the following:
consulting and legal fees related to acquisitions, one-time
consulting and legal fees related to certain advisory projects,
software implementations and debt or equity financings, severance
expense and temporary labor and recruiting charges to build out our
corporate infrastructure. A reconciliation of Adjusted EBITDA to
net loss, the most comparable GAAP metric, is set forth below.
|
Adjusted EBITDA Reconciliation |
| |
Three Months Ended September 30, |
|
Change |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
Net loss |
$ |
(16,113 |
) |
|
$ |
(17,419 |
) |
|
$ |
1,306 |
|
|
(7.5 |
)% |
|
Depreciation and amortization |
|
1,573 |
|
|
|
1,698 |
|
|
|
(125 |
) |
|
(7.4 |
)% |
|
Interest expense, net |
|
2,225 |
|
|
|
1,755 |
|
|
|
470 |
|
|
26.8 |
% |
|
Income tax expense |
|
— |
|
|
|
136 |
|
|
|
(136 |
) |
|
(100.0 |
)% |
|
Non-cash addbacks(1) |
|
(102 |
) |
|
|
(13 |
) |
|
|
(89 |
) |
|
684.6 |
% |
|
Share-based compensation |
|
2,388 |
|
|
|
4,658 |
|
|
|
(2,270 |
) |
|
(48.7 |
)% |
|
Changes in fair value of liabilities |
|
(20 |
) |
|
|
1,464 |
|
|
|
(1,484 |
) |
|
(101.4 |
)% |
|
Unrealized (gains) losses on investments |
|
(18 |
) |
|
|
(156 |
) |
|
|
138 |
|
|
(88.5 |
)% |
|
Practice acquisition-related costs(2) |
|
— |
|
|
|
41 |
|
|
|
(41 |
) |
|
(100.0 |
)% |
|
Post-combination compensation expense(3) |
|
45 |
|
|
|
399 |
|
|
|
(354 |
) |
|
(88.7 |
)% |
|
Consulting and legal fees(4) |
|
352 |
|
|
|
1 |
|
|
|
351 |
|
|
35,100.0 |
% |
|
Infrastructure and workforce costs(5) |
|
1,473 |
|
|
|
1,978 |
|
|
|
(505 |
) |
|
(25.5 |
)% |
|
Transaction costs(6) |
|
— |
|
|
|
112 |
|
|
|
(112 |
) |
|
(100.0 |
)% |
|
Adjusted EBITDA |
$ |
(8,197 |
) |
|
$ |
(5,346 |
) |
|
$ |
(2,851 |
) |
|
53.3 |
% |
|
|
(1) During the three months ended September
30, 2024, non-cash addbacks were primarily comprised of non-cash
rent of $104 offset by net credit loss of $2. During the three
months ended September 30, 2023, non-cash addbacks were primarily
comprised of net bad debt expense of $32 offset by non-cash rent of
$45.
(2) Practice acquisition-related costs were
comprised of consulting and legal fees incurred to perform due
diligence, execute, and integrate acquisitions of various oncology
practices.
(3) Deferred consideration payments for
practice acquisitions that are contingent upon the seller’s future
employment at the Company.
(4) Consulting and legal fees were
comprised of a subset of the Company’s total consulting and legal
fees, and related to certain non-recurring advisory projects during
the three months ended September 30, 2024. During the three months
ended September 30, 2023, these fees related to non-recurring
advisory projects, including software implementations.
(5) Infrastructure and workforce costs were
comprised of recruiting expenses to build out corporate
infrastructure of $218 and $701, software implementation fees of $0
and $37, severance expenses resulting from cost rationalization
programs of $67 and $633, temporary labor of $142 and $310 and
non-recurring legal fees related to infrastructure build out of
$948 and $2 during the three months ended September 30, 2024 and
2023, respectively.
(6) Transaction costs incurred during the
three months ended September 30, 2023 were comprised of consulting,
legal, administrative and regulatory fees associated with
non-recurring due diligence projects.
| |
Nine Months Ended September 30, |
|
Change |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
Net loss |
$ |
(51,481 |
) |
|
$ |
(64,314 |
) |
|
$ |
12,833 |
|
|
(20.0 |
)% |
|
Depreciation and amortization |
|
4,580 |
|
|
|
4,296 |
|
|
|
284 |
|
|
6.6 |
% |
|
Interest expense, net |
|
6,328 |
|
|
|
4,836 |
|
|
|
1,492 |
|
|
30.9 |
% |
|
Income tax expense |
|
— |
|
|
|
278 |
|
|
|
(278 |
) |
|
(100.0 |
)% |
|
Non-cash addbacks(1) |
|
(210 |
) |
|
|
152 |
|
|
|
(362 |
) |
|
(238.2 |
)% |
|
Share-based compensation |
|
9,862 |
|
|
|
13,730 |
|
|
|
(3,868 |
) |
|
(28.2 |
)% |
|
Goodwill impairment charges |
|
— |
|
|
|
16,867 |
|
|
|
(16,867 |
) |
|
N/A |
|
Changes in fair value of liabilities |
|
(3,140 |
) |
|
|
(2,884 |
) |
|
|
(256 |
) |
|
8.9 |
% |
|
Unrealized (gains) losses on investments |
|
(134 |
) |
|
|
(31 |
) |
|
|
(103 |
) |
|
N/A |
|
Practice acquisition-related costs(2) |
|
— |
|
|
|
112 |
|
|
|
(112 |
) |
|
(100.0 |
)% |
|
Post-combination compensation expense(3) |
|
361 |
|
|
|
1,561 |
|
|
|
(1,200 |
) |
|
N/A |
|
Consulting and legal fees(4) |
|
772 |
|
|
|
1,515 |
|
|
|
(743 |
) |
|
(49.0 |
)% |
|
Infrastructure and workforce costs(5) |
|
5,197 |
|
|
|
4,095 |
|
|
|
1,102 |
|
|
26.9 |
% |
|
Transaction costs(6) |
|
18 |
|
|
|
140 |
|
|
|
(122 |
) |
|
(87.1 |
)% |
|
Adjusted EBITDA |
$ |
(27,847 |
) |
|
$ |
(19,647 |
) |
|
$ |
(8,200 |
) |
|
41.7 |
% |
| |
|
|
|
|
|
|
|
(1) During the nine months ended September
30, 2024, non-cash addbacks were primarily comprised of non-cash
rent of $261, offset by net reversal of bad debt recovery of $51.
During the nine months ended September 30, 2023, non-cash addbacks
were primarily comprised of non-cash rent of $120 and net credit
losses of $31.
(2) Practice acquisition-related costs were
comprised of consulting and legal fees incurred to perform due
diligence, execute, and integrate acquisitions of various oncology
practices.
(3) Deferred consideration payments for
practice acquisitions that are contingent upon the seller’s future
employment at the Company.
(4) Consulting and legal fees were
comprised of a subset of the Company’s total consulting and legal
fees, and related to certain non-recurring advisory projects during
the nine months ended September 30, 2024. During the nine months
ended September 30, 2023, these fees related to non-recurring
advisory projects, including software implementations.
(5) Infrastructure and workforce costs were
primarily comprised of non-recurring legal fees related to
infrastructure build out of $3,307 and 2,035, recruiting expenses
to build out corporate infrastructure of $930 and $1,593, severance
expenses resulting from cost rationalization programs of $219 and
$898, and temporary labor of $468 and $1,217 during the nine months
ended September 30, 2024 and 2023, respectively.
(6) Transaction costs incurred during the
nine months ended September 30, 2024 were comprised of consulting,
legal, administrative and regulatory fees associated with
non-recurring due diligence projects.
|
Key Business Metrics |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Clinics (1) |
|
86 |
|
|
|
84 |
|
|
|
86 |
|
|
|
84 |
|
|
Markets |
|
14 |
|
|
|
15 |
|
|
|
14 |
|
|
|
15 |
|
|
Lives under value-based contracts (millions) |
|
1.9 |
|
|
|
1.8 |
|
|
|
1.9 |
|
|
|
1.8 |
|
|
Adjusted EBITDA (in thousands) |
$ |
(8,196 |
) |
|
$ |
(5,346 |
) |
|
$ |
(27,847 |
) |
|
$ |
(19,647 |
) |
|
|
(1) Includes independent oncology practices to
which we provide limited management services, but do not bear the
operating costs.
Consolidated Balance Sheets
(Unaudited)(in thousands except share data)
| |
September 30, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
47,402 |
|
|
$ |
33,488 |
|
|
Marketable securities |
|
— |
|
|
|
49,367 |
|
|
Accounts receivable, net |
|
54,502 |
|
|
|
42,360 |
|
|
Other receivables |
|
358 |
|
|
|
551 |
|
|
Inventories |
|
10,106 |
|
|
|
13,678 |
|
|
Prepaid expenses and other current assets |
|
4,057 |
|
|
|
4,049 |
|
|
Total current assets |
|
116,425 |
|
|
|
143,493 |
|
|
Property and equipment, net |
|
12,274 |
|
|
|
10,883 |
|
|
Operating right of use assets |
|
27,083 |
|
|
|
29,169 |
|
|
Intangible assets, net |
|
15,583 |
|
|
|
17,904 |
|
|
Goodwill |
|
7,230 |
|
|
|
7,230 |
|
|
Other assets |
|
588 |
|
|
|
561 |
|
| Total
assets |
$ |
179,183 |
|
|
$ |
209,240 |
|
| Liabilities and stockholders’
equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
24,572 |
|
|
$ |
14,429 |
|
|
Current portion of operating lease liabilities |
|
6,749 |
|
|
|
6,363 |
|
|
Accrued expenses and other current liabilities |
|
15,436 |
|
|
|
13,996 |
|
|
Total current liabilities |
|
46,757 |
|
|
|
34,788 |
|
|
Operating lease liabilities |
|
24,664 |
|
|
|
26,486 |
|
|
Derivative warrant liabilities |
|
64 |
|
|
|
636 |
|
|
Conversion option derivative liabilities |
|
514 |
|
|
|
3,082 |
|
|
Long-term debt, net of unamortized debt issuance costs |
|
91,537 |
|
|
|
86,826 |
|
|
Other non-current liabilities |
|
133 |
|
|
|
365 |
|
|
Deferred income taxes liability |
|
32 |
|
|
|
32 |
|
| Total
liabilities |
|
163,701 |
|
|
|
152,215 |
|
| Stockholders’ equity: |
|
|
|
|
Common Stock, $0.0001 par value, authorized 500,000,000 shares;
77,292,849 shares issued and 75,559,075 shares outstanding at
September 30, 2024 and 75,879,025 shares issued and 74,145,251
shares outstanding at December 31, 2023 |
|
8 |
|
|
|
8 |
|
|
Series A Convertible Preferred Stock, $0.0001 par value, authorized
10,000,000 shares; 165,045 shares issued and outstanding at
September 30, 2024 and December 31, 2023 |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
214,124 |
|
|
|
204,186 |
|
|
Treasury Stock at cost, 1,733,774 shares at September 30, 2024
and December 31, 2023 |
|
(1,019 |
) |
|
|
(1,019 |
) |
|
Accumulated deficit |
|
(197,631 |
) |
|
|
(146,150 |
) |
| Total stockholders’
equity |
|
15,482 |
|
|
|
57,025 |
|
| Total liabilities and
stockholders’ equity |
$ |
179,183 |
|
|
$ |
209,240 |
|
| |
Consolidated Statements of Operations
(Unaudited)(in thousands except share data)
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenue |
|
|
|
|
|
|
|
|
Patient services |
$ |
49,752 |
|
|
$ |
53,634 |
|
|
$ |
154,666 |
|
|
$ |
157,333 |
|
|
Dispensary |
|
48,210 |
|
|
|
26,792 |
|
|
|
132,329 |
|
|
|
76,228 |
|
|
Clinical trials & other |
|
1,939 |
|
|
|
1,609 |
|
|
|
6,150 |
|
|
|
4,890 |
|
| Total operating
revenue |
|
99,901 |
|
|
|
82,035 |
|
|
|
293,145 |
|
|
|
238,451 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
Direct costs – patient services |
|
45,118 |
|
|
|
44,961 |
|
|
|
141,137 |
|
|
|
132,653 |
|
|
Direct costs – dispensary |
|
40,091 |
|
|
|
21,072 |
|
|
|
111,701 |
|
|
|
60,328 |
|
|
Direct costs – clinical trials & other |
|
326 |
|
|
|
24 |
|
|
|
946 |
|
|
|
276 |
|
|
Goodwill impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,867 |
|
|
Selling, general and administrative expense |
|
26,646 |
|
|
|
28,205 |
|
|
|
82,970 |
|
|
|
85,761 |
|
|
Depreciation and amortization |
|
1,573 |
|
|
|
1,698 |
|
|
|
4,580 |
|
|
|
4,296 |
|
| Total operating
expenses |
|
113,754 |
|
|
|
95,960 |
|
|
|
341,334 |
|
|
|
300,181 |
|
| Loss from
operations |
|
(13,853 |
) |
|
|
(13,925 |
) |
|
|
(48,189 |
) |
|
|
(61,730 |
) |
| Other non-operating expense
(income) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
2,225 |
|
|
|
1,755 |
|
|
|
6,328 |
|
|
|
4,836 |
|
|
Change in fair value of derivative warrant liabilities |
|
(20 |
) |
|
|
203 |
|
|
|
(572 |
) |
|
|
(58 |
) |
|
Change in fair value of earnout liabilities |
|
— |
|
|
|
(23 |
) |
|
|
— |
|
|
|
(792 |
) |
|
Change in fair value of conversion option derivative
liabilities |
|
— |
|
|
|
1,284 |
|
|
|
(2,568 |
) |
|
|
(2,034 |
) |
|
Other, net |
|
55 |
|
|
|
140 |
|
|
|
104 |
|
|
|
354 |
|
| Total other
non-operating (income) loss |
|
2,260 |
|
|
|
3,359 |
|
|
|
3,292 |
|
|
|
2,306 |
|
| Loss before provision for
income taxes |
|
(16,113 |
) |
|
|
(17,284 |
) |
|
|
(51,481 |
) |
|
|
(64,036 |
) |
|
Income tax expense |
|
— |
|
|
|
(135 |
) |
|
|
— |
|
|
|
(278 |
) |
| Net loss |
$ |
(16,113 |
) |
|
$ |
(17,419 |
) |
|
$ |
(51,481 |
) |
|
$ |
(64,314 |
) |
| Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.71 |
) |
|
Diluted |
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.71 |
) |
| Weighted-average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
75,524,823 |
|
|
|
73,469,101 |
|
|
|
74,838,340 |
|
|
|
73,679,454 |
|
|
Diluted |
|
75,524,823 |
|
|
|
73,469,101 |
|
|
|
74,838,340 |
|
|
|
73,679,454 |
|
|
|
Consolidated Statements of Cash Flows
(Unaudited)(in thousands)
| |
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating
activities: |
|
|
|
|
Net loss |
$ |
(51,481 |
) |
|
$ |
(64,314 |
) |
|
Adjustments to reconcile net loss to cash and cash equivalents used
in operating activities: |
|
|
|
|
Depreciation and amortization |
|
4,580 |
|
|
|
4,296 |
|
|
Amortization of debt issuance costs and debt discount |
|
4,711 |
|
|
|
4,633 |
|
|
Goodwill impairment charges |
|
— |
|
|
|
16,867 |
|
|
Share-based compensation |
|
9,863 |
|
|
|
13,731 |
|
|
Change in fair value of liability classified warrants |
|
(572 |
) |
|
|
(58 |
) |
|
Change in fair value of liability classified earnouts |
|
— |
|
|
|
(792 |
) |
|
Change in fair value of liability classified conversion option
derivatives |
|
(2,568 |
) |
|
|
(2,034 |
) |
|
Realized loss on sale of investments |
|
— |
|
|
|
11 |
|
|
Unrealized (gain) loss on investments |
|
(134 |
) |
|
|
(44 |
) |
|
Accretion of discount on investment securities |
|
(499 |
) |
|
|
(712 |
) |
|
Deferred taxes |
|
— |
|
|
|
50 |
|
|
Credit losses |
|
— |
|
|
|
31 |
|
|
Loss on disposal of property and equipment |
|
51 |
|
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(12,142 |
) |
|
|
(8,657 |
) |
|
Other receivables |
|
193 |
|
|
|
153 |
|
|
Inventories |
|
3,572 |
|
|
|
(2,913 |
) |
|
Prepaid expenses and other current assets |
|
(8 |
) |
|
|
2,728 |
|
|
Operating right-of-use assets |
|
2,086 |
|
|
|
4,448 |
|
|
Other assets |
|
(27 |
) |
|
|
(83 |
) |
|
Accounts payable |
|
8,476 |
|
|
|
3,961 |
|
|
Current and long-term operating lease liabilities |
|
(1,436 |
) |
|
|
(3,909 |
) |
|
Accrued expenses and other current liabilities |
|
4,815 |
|
|
|
579 |
|
|
Income taxes payable |
|
— |
|
|
|
— |
|
|
Other non-current liabilities |
|
(204 |
) |
|
|
(394 |
) |
| Net cash and cash
equivalents used in operating activities |
|
(30,724 |
) |
|
|
(32,422 |
) |
| Cash flows from investing
activities: |
|
|
|
|
Purchases of property and equipment |
|
(2,034 |
) |
|
|
(3,706 |
) |
|
Cash paid for practice acquisitions, net |
|
— |
|
|
|
(4,300 |
) |
|
Purchases of marketable securities/investments |
|
— |
|
|
|
(9,683 |
) |
|
Sales of marketable securities/investments |
|
50,000 |
|
|
|
68,702 |
|
| Net cash and cash
equivalents provided by investing activities |
|
47,966 |
|
|
|
51,013 |
|
| Cash flows from financing
activities: |
|
|
|
|
Payments made for financing of insurance payments |
|
(1,002 |
) |
|
|
(3,010 |
) |
|
Payment of deferred consideration liability for acquisition |
|
(2,372 |
) |
|
|
(959 |
) |
|
Principal payments on financing leases |
|
(29 |
) |
|
|
(91 |
) |
|
Common stock repurchase |
|
— |
|
|
|
(1,019 |
) |
|
Common stock issued for options exercised |
|
75 |
|
|
|
13 |
|
| Net cash and cash
equivalents used in financing activities |
|
(3,328 |
) |
|
|
(5,066 |
) |
| Net increase in cash and cash
equivalents |
|
13,914 |
|
|
|
13,525 |
|
| Cash and cash
equivalents at beginning of period |
|
33,488 |
|
|
|
14,010 |
|
| Cash and cash
equivalents at end of period |
$ |
47,402 |
|
|
$ |
27,535 |
|
Contacts
Media
The Oncology Institute, Inc.Daniel Virnich,
MDdanielvirnich@theoncologyinstitute.com(562) 735-3226 x 81125
ReviveMichael
Petronempetrone@reviveagency.com(615) 760-4542
Investors
Solebury Strategic
Communicationsinvestors@theoncologyinstitute.com
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