Performant Receives Continued Listing Standard Notice from Nasdaq
April 22 2020 - 4:05PM
Performant Financial Corporation (Nasdaq:PFMT),(“the Company”), a
provider of technology-enabled recovery and related analytics
services, announced today that on April 17, 2020, the Company
received a letter from the Listing Qualifications Department of the
NASDAQ Stock Market (“NASDAQ”) indicating that, based upon the
closing bid price of the Company’s common stock for the last 30
consecutive business days beginning on March 2, 2020 and ending on
April 16, 2020, the Company no longer meets the requirement to
maintain a minimum bid price of $1 per share, as required by
Marketplace Rule 5450(a)(1) (the "Rule") for continued listing.
In accordance with applicable NASDAQ procedures, the Company
plans to notify NASDAQ in a timely manner that it intends to pursue
actions to meet the minimum average share price requirement. The
NASDAQ letter indicates that the Company will be provided 180
calendar days to regain compliance with the minimum $1.00 per share
bid requirement. However, the letter also stated that given the
recent extraordinary market conditions, Nasdaq has determined to
toll the compliance period for the bid price requirement through
June 30, 2020, with the 180-day compliance period for the
Price-based Requirements to be reinstated on July 1, 2020.
As a result, the Nasdaq letter indicates that the Company may
regain compliance with the Rule, if at any time before December 28,
2020, the bid price of the Company's common stock closes at $1.00
per share or above for a minimum of 10 consecutive business days.
The notice has no immediate impact on the listing of the Company’s
common stock, which will continue to trade on the NASDAQ subject to
the Company’s compliance with the other continued listing
requirements.
In response to receiving the notification, Lisa Im, CEO of
Performant, said, “Our commitment to transforming our business is
unwavering. The operational improvements and positive adjusted
EBITDA that we reported on our last earnings call are not due to
any large, favorable one-time events, but rather the result of the
hard work that our team puts in every day. We have taken proactive
steps to help mitigate the disruption that we have experienced
related to the COVID-19 virus, such as ensuring the vast majority
of our team members are able to continue to work remotely. We thank
our existing stockholders for their continued support, and we look
forward to executing and delivering our planned strategy.”
About Performant Financial Corporation
Performant helps government and commercial organizations enhance
revenue and contain costs by preventing, identifying and recovering
waste, improper payments and defaulted assets. Performant is a
leading provider of these services in several industries, including
healthcare, student loans and government. Performant has been
providing recovery audit services for more than nine years to both
commercial and government clients, including serving as a Recovery
Auditor for the Centers for Medicare and Medicaid Services.
Powered by a proprietary analytic platform and workflow
technology, Performant also provides professional services related
to the recovery effort, including reporting capabilities, support
services, customer care and stakeholder training programs meant to
mitigate future instances of improper payments. Founded in 1976,
Performant is headquartered in Livermore, California. To learn more
about Performant Financial, please visit
https://www.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 revenues,
net income (loss), and adjusted EBITDA in 2020 and beyond. 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 ZubekInvestor
Relations 925-960-4988 investors@performantcorp.com
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