Performant Provides an Update to EBITDA Guidance for Fourth Quarter 2019, Comments on Recent Shelf Registration Statement
December 20 2019 - 5:30PM
Performant Financial Corporation (Nasdaq:PFMT), (“the Company”), a
provider of technology-enabled recovery and related analytics
services, today announced that it anticipates reporting positive
EBITDA in the fourth quarter of 2019.
Lisa Im, CEO of Performant said, “With the fourth quarter and
full year 2019 nearly complete, our preliminary estimates have us
reporting an adjusted EBITDA in the single digits, from a ‘millions
of dollars’ standpoint. I am proud of our team’s effort and
execution in the fourth quarter and believe that this is a trend
that will result in positive EBITDA for the full year 2020,
something that we anticipated with the continued transformation of
our business.”
Further, Ms. Im commented, “The shelf registration statement we
filed with the SEC today is in response to a request by Parthenon
Capital to replace an expired registration statement that we
originally filed in 2014 to cover the resale of shares held by
Parthenon. For convenience, we decided to have this shelf
registration statement also cover shares issuable upon the exercise
of warrants held by our lender, ECMC, that were issued in
connection with final draw of our credit line.” Ms. Im went on to
note that both Parthenon and ECMC hold registration rights that
obligate the Company to file registration statements on their
behalf.
About Performant Financial Corporation
Performant Financial Corporation is a leading provider of
technology-enabled recovery and related analytics services. The
Company's services help identify and recover delinquent or
defaulted assets and improper payments for various government,
healthcare and financial services markets in the United States. The
Company was founded in 1976 and is headquartered in Livermore,
California. To learn more about Performant Financial, please
visit http://performantcorp.com/
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 our outlook for EBITDA in
2019 and 2020. 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, that
the Company may not have sufficient cash flows from operations or
the availability of funds under its credit agreement to fund
ongoing operations and other liquidity needs, that the Company’s
indebtedness could adversely affect its business and financial
condition and could reduce the funds available for other purposes
and the failure to comply with covenants contained in its credit
agreement could result in an event of default that could adversely
affect its results of operations, that the Company faces a long
period to implement a new contract which may result in the
incurrence of expenses before the receipt of revenues from new
client relationships, the high level of revenue concentration among
the Company's largest customers and any termination in the
Company’s relationship with any of our significant clients would
result in a material decline in our revenues, that many of the
Company's customer contracts are subject to periodic renewal, are
not exclusive, do not provide for committed business volumes and
may be changed or terminated unilaterally and on short notice, that
the Company may not be able to manage its potential growth
effectively, that the Company faces significant competition in all
of its markets, that continuing limitations on the scope of our
audit activity under our RAC contracts have significantly reduced
our revenue opportunities with this client, that the U.S. federal
government accounts for a significant portion of the Company's
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 and the threat of breach of the Company's security
measures or failure or unauthorized access to confidential data
that the Company possesses. More information on potential factors
that could affect the Company's financial condition and operating
results is included from time to time 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, 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 Information:
Richard
Zubek
Investor Relations
925-960-4988 investors@performantcorp.com
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