First Quarter Results Show Benefits of Consistent Execution
on Financial and Strategic Objectives
First Quarter Revenue Growth of 32% Compared to First Quarter
2022
Raises Full Year 2023 Revenue and Adjusted EBITDA
Guidance
MOORESTOWN, N.J., May 8, 2023
/PRNewswire/ -- Tabula Rasa HealthCare, Inc.® (Nasdaq:TRHC) ("TRHC"
or the "Company"), a leading healthcare technology company
advancing the safe use of medications, today reported financial
results for the first quarter ended March
31, 2023.
Highlights from the first quarter ended March 31, 2023, include:
- First quarter revenue from continuing operations of
$88.3 million, representing a 32%
increase versus the prior year first quarter
- First quarter GAAP net loss and adjusted EBITDA from
continuing operations of $7.1 million
and $4.7 million,
respectively
"We delivered an outstanding quarter, starting the year with
revenue and adjusted EBITDA above the high end of our guidance
range. These results were driven by our renewed focus, and
consistent execution by our team, who are committed to our mission
of improving the health of those we serve. During the last quarter,
we have continued to see evidence that our strategies within PACE
and in adjacent markets are working," said Brian Adams, President and Chief Executive
Officer.
Key Financial
Results
|
(in millions except
percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q1
2023
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
|
Guidance
|
Revenue from continuing
operations
|
|
$
|
88.3
|
|
$
|
67.1
|
|
32
|
%
|
|
$
|
82.0 - 84.0
|
Gross margin
|
|
|
23.5 %
|
|
|
21.4 %
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
|
24.1 %
|
|
|
23.8 %
|
|
|
|
|
|
|
GAAP net loss from
continuing operations
|
|
$
|
(7.1)
|
|
$
|
(20.4)
|
|
65
|
%
|
|
|
|
Adjusted net loss from
continuing operations
|
|
$
|
(0.6)
|
|
$
|
(3.5)
|
|
83
|
%
|
|
|
|
Adjusted EBITDA from
continuing operations
|
|
$
|
4.7
|
|
$
|
1.1
|
|
337
|
%
|
|
$
|
3.0 - 4.0
|
First Quarter 2023 Financial Results
All comparisons, unless otherwise noted, are to the three months
ended March 31, 2022, and reflect
continuing operations.
- Revenue – Revenue of $88.3
million increased 32% compared to $67.1 million in the first quarter of 2022 and
increased 7% as compared to the fourth quarter of 2022. Medication
revenue of $68.8 million increased
35% due to continued strong PACE census growth at existing centers
and higher revenue per PACE participant. Technology-enabled
solutions revenue of $19.5 million
increased 21% compared to $16.1
million in the first quarter of 2022 and increased 7% as
compared to the fourth quarter of 2022. Technology-enabled
solutions revenue growth was driven by our pharmacy benefits
management ("PBM") and risk adjustment services.
- Gross Profit – Gross profit (exclusive of
depreciation and amortization) of $20.8
million (23.5% of revenue) increased 44% as compared to
$14.4 million (21.4% of revenue) in
the first quarter of 2022. Adjusted gross profit of $21.2 million (24.1% of revenue) increased 33% as
compared to $15.9 million (23.8% of
revenue) a year ago. Both medication and technology-enabled
solutions gross margin increased vs. the year-ago period.
- GAAP Net Loss – GAAP net loss from continuing
operations of $7.1 million compared
to a net loss of $20.4 million in the
first quarter of 2022. The improvement vs. the prior year was
primarily driven by the higher gross profit noted above and a
reduction in operating expenses.
GAAP net loss from discontinued operations (net of tax) of
$8.8 million compares to a net loss
of $7.8 million in the first quarter
of 2022. Both periods include the SinfoníaRx and DoseMe businesses.
As previously announced on March 2,
2023, TRHC completed the sales of SinfoníaRx and DoseMe
during the first quarter of 2023.
- Adjusted EBITDA – Adjusted EBITDA from continuing
operations of $4.7 million (5.4%
of revenue) increased 337% vs. $1.1
million (1.6% of revenue) in the first quarter of 2022.
A reconciliation of certain financial measures with the most
directly comparable financial measures calculated in accordance
with generally accepted accounting principles in the United States ("GAAP") has been provided
in this press release in the accompanying tables. An explanation of
these measures is also included below under the heading "Non-GAAP
Financial Measures."
Operational Metrics
To provide transparency into our financial results, we are
providing the following operational metrics.
|
|
As of
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2023
|
PACE
census1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medication
census
|
|
|
17,621
|
|
|
18,639
|
|
|
19,806
|
|
|
20,555
|
|
|
20,705
|
Technology-enabled
solutions census
|
|
|
50,038
|
|
|
50,763
|
|
|
52,230
|
|
|
53,430
|
|
|
54,135
|
Total PACE
census
|
|
|
50,038
|
|
|
50,763
|
|
|
52,230
|
|
|
53,430
|
|
|
54,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2023
|
PACE average revenue
per participant per month:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medication average
revenue per participant per month2
|
|
$
|
978
|
|
$
|
1,036
|
|
$
|
1,051
|
|
$
|
1,056
|
|
$
|
1,110
|
Technology-enabled
solutions revenue per participant per month3
|
|
|
89
|
|
|
91
|
|
|
91
|
|
|
92
|
|
|
98
|
Total PACE average
revenue per participant per month
|
|
|
428
|
|
|
459
|
|
|
474
|
|
|
494
|
|
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACE backlog as of March 31, 2023,
was valued at $84 million in annual
revenue at maturity, which the Company defines as enrollment of 250
participants for PACE clients. By comparison, PACE backlog was
valued at $78 million as of
December 31, 2022.
____________________________________
|
1 Defined as
the number of PACE participants utilizing at least one of our
solution lines.
2 This metric is calculated as quarterly medication
revenue from PACE clients divided by quarterly member months.
3 This metric is calculated as quarterly
technology-enabled solutions revenue from PACE clients across all
solution lines divided by quarterly member months.
|
Outlook
Based on current market conditions and our expectations as of
today, we are introducing second quarter 2023 guidance and
increasing our full year 2023 revenue and adjusted EBITDA guidance,
initially provided on March 8, 2023,
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over year
growth
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Three Months Ended
June 30, 2023
|
|
(in millions except
percentages)
|
Revenue from continuing
operations
|
|
$
|
88.0
|
|
$
|
90.0
|
|
21 %
|
|
24 %
|
Adjusted EBITDA from
continuing operations
|
|
$
|
3.5
|
|
$
|
4.5
|
|
70 %
|
|
119 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over year
growth
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Year Ended December
31, 2023
|
|
(in millions except
percentages)
|
Revenue from continuing
operations
|
|
$
|
355.0
|
|
$
|
365.0
|
|
19 %
|
|
22 %
|
Adjusted EBITDA from
continuing operations
|
|
$
|
19.0
|
|
$
|
22.0
|
|
104 %
|
|
136 %
|
A reconciliation of the projected adjusted EBITDA from
continuing operations has been provided in this press release in
the accompanying tables.
Upcoming Events
Members of TRHC's executive team are currently expected to be
present at the following conferences:
- RBC Capital Markets 2023 Global Healthcare Conference in
New York, NY, May 16-17;
- Benchmark's Healthcare House Call VIRTUAL One-on-One
Conference, May 23;
- Stifel 2023 Cross Sector Insight Conference in Boston, MA, June
6-7; and
- 43rd Annual William Blair Growth Conference in
Chicago, IL, June 6-8
Quarterly Conference Call
The first quarter 2023 earnings conference call and webcast will
be held tomorrow, Tuesday, May 9, at
8:30 a.m. ET. Those interested in
participating via webcast in listen-only mode can access the event
here. For participants who would like to participate via
telephone, please register here to receive the dial-in
number along with a unique PIN number that is required to access
the call. A replay of the earnings call will be available via
webcast at the Investor Relations section of TRHC's website
(ir.tabularasahealthcare.com) for 12 months.
About Tabula Rasa HealthCare
Tabula Rasa HealthCare provides medication safety solutions that
empower healthcare professionals and consumers to optimize
medication regimens, combating medication overload and reducing
adverse drug events. TRHC's proprietary technology solutions,
including MedWise®, improve patient outcomes, reduce
hospitalizations, and lower healthcare costs. TRHC's extensive
clinical tele-pharmacy network improves care for patients
nationwide. Its solutions are trusted by health plans and at-risk
provider groups to help drive value-based care. For more
information, visit TRHC.com.
Non-GAAP Financial Measures
In addition to reporting certain financial information in
accordance with GAAP, TRHC is also reporting gross profit, adjusted
EBITDA, adjusted cost of revenue, adjusted gross profit, adjusted
operating expenses, adjusted operating income (loss), and adjusted
net income (loss), in each case from continuing operations, which
are considered non-GAAP financial measures. Generally, a non-GAAP
financial measure is a numerical measure of a company's performance
or financial position that either excludes or includes amounts that
are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with
GAAP. TRHC presents adjusted EBITDA and the other non-GAAP
financial measures in this release because it considers each of
them to be an important supplemental measure of performance. TRHC
also intends to provide adjusted EBITDA and the other non-GAAP
financial measures in this release as part of the Company's future
earnings discussions and, therefore, their inclusion should provide
consistency in the Company's financial reporting.
Adjusted EBITDA consists of net income (loss) plus certain other
expenses, which include interest expense, provision for income tax,
depreciation and amortization, change in fair value of contingent
consideration receivable, impairment charges, business optimization
expenses, severance costs, divestiture-related expense,
acquisition-related expense, stock-based compensation expense, and
net loss on disposal of businesses. TRHC considers business
optimization expenses to include lease termination costs, retention
payments, and other employee and non-recurring vendor costs
incurred related to its business optimization initiatives during
2022. TRHC considers severance costs to include severance costs
related to the realignment of its resources. TRHC considers
divestiture-related expense to include non-recurring direct
transaction costs. TRHC considers acquisition-related expense to
include non-recurring direct transaction and integration costs.
TRHC considers net loss on disposal of businesses to include the
non-recurring net loss resulting from the sales of the DoseMe and
SinfoníaRx businesses. TRHC uses adjusted EBITDA for planning
purposes, including analysis of the Company's performance against
prior periods, the preparation of operating budgets and
determination of appropriate levels of operating and capital
investments. TRHC believes that adjusted EBITDA provides additional
insight for analysts and investors in evaluating the Company's
financial and operational performance.
TRHC defines adjusted cost of revenue as cost of revenue as
presented on the consolidated statements of operations less those
certain other expenses which are added to operating income (loss)
in calculating adjusted operating income (loss) (as described
below), including stock-based compensation expense and such other
expenses, in each case to the extent that they are included in cost
of revenue. TRHC believes adjusted cost of revenue provides
analysts and investors more accurate information regarding the
actual cost of products and services provided by TRHC, excluding
the impact of certain non-cash charges like stock-based
compensation expense, and costs of revenue that are not recurring
components of its core medication and technology-enabled solutions
costs, for better comparability of its cost of revenue between
periods.
TRHC defines gross profit as total revenue less total cost
of revenue (exclusive of depreciation and amortization) as
presented on the consolidated statements of operations. TRHC
defines gross margin as gross profit as a percentage of total
revenue. TRHC defines adjusted gross profit as total revenue
less total cost of revenue (exclusive of depreciation and
amortization) as presented on the consolidated statements of
operations, excluding the impact of those certain other expenses
which are added to operating income (loss) in calculating adjusted
operating income (loss) (as described below), including stock-based
compensation expense and such other expenses, in each case to the
extent that they are included in cost of revenue. TRHC defines
adjusted gross margin as adjusted gross profit as a percentage of
total revenue. TRHC believes adjusted gross profit and adjusted
gross margin provide analysts and investors more accurate
information regarding its core profit margin on sales, excluding
the impact of certain non-cash charges like stock-based
compensation expense, and costs of revenue that are not recurring
components of its core medication and technology-enabled solutions
costs, for better comparability of gross profit between
periods.
TRHC defines adjusted operating expenses as operating expenses
as presented on the consolidated statements of operations plus or
minus (as applicable) the impact those expenses added or subtracted
from operating income (loss) in calculating adjusted operating
income (loss), in each case to the extent they are included in
operating expense. TRHC believes adjusted operating expenses
provide analysts and investors more accurate information regarding
its core operating expenses, which include research and development
costs, sales and marketing costs, general and administrative costs,
depreciation of property and equipment, and amortization of
software development costs, excluding the impact of certain
non-cash charges like amortization of intangible assets acquired in
prior business acquisitions and stock-based compensation expense,
and charges that are not recurring components of its core operating
expenses, for better comparability between periods.
TRHC defines adjusted operating income (loss) as operating
income (loss) plus or minus (as applicable) amortization of
acquired intangibles, change in fair value of contingent
consideration receivable, impairment charges, business optimization
expenses, severance costs, divestiture-related expense,
acquisition-related expense, and stock-based compensation expense.
The items included in the calculation of adjusted EBITDA are
determined in calculating adjusted operating income (loss) in the
same manner. TRHC believes adjusted operating income (loss)
provides analysts and investors more accurate information regarding
its core operating income (loss), excluding the impact of certain
non-cash charges like amortization of intangible assets acquired in
prior business acquisitions and stock-based compensation expense,
and charges that are not recurring components of its core operating
expenses, for better comparability between periods.
TRHC defines adjusted net income (loss) as net income (loss)
plus or minus (as applicable) the impact of those expenses added or
subtracted from operating income (loss) in calculating adjusted
operating income (loss) along with the impact of amortization of
debt discount and issuance costs, and the tax impact of all those
items using an effective statutory tax rate on pre-tax income
(loss) adjusted for those items. TRHC believes adjusted net income
(loss) provides analysts and investors more accurate
information regarding its core income (loss), excluding the impact
of certain non-cash charges like amortization of intangible assets
acquired in prior business acquisitions and stock-based
compensation expense, and charges that are not recurring components
of its core product and service costs or core operating expenses,
for better comparability between periods.
In addition to the reasons given above for providing each of the
non-GAAP financial measures included herein, TRHC believes each of
these non-GAAP financials measures provides analysts and investors
more accurate information for better comparability to other
companies, although such other companies may calculate non-GAAP
financial measures differently than TRHC.
Non-GAAP financial measures have limitations as an analytical
tool. Investors are encouraged to review the reconciliations of
adjusted EBITDA, adjusted cost of revenue, adjusted gross profit,
adjusted operating expenses, adjusted operating income (loss), and
adjusted net income (loss) to the most directly comparable GAAP
measures provided in the accompanying tables.
Safe Harbor Statement
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including our guidance regarding revenue
from continuing operations and adjusted EBITDA from continuing
operations. Forward-looking statements may be identified by words
such as "believe," "will," "may," "estimate," "continue,"
"anticipate," "intend," "should," "plan," "expect," "predict,"
"could," "potentially" or the negative of these terms or similar
expressions. You should read these statements carefully because
they discuss future expectations, contain projections of future
results of operations or financial condition, or state other
"forward-looking" information. These statements relate to, without
limitation, our future plans, objectives, expectations, intentions,
and financial performance and the assumptions that underlie these
statements. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those anticipated in the forward-looking
statements. Factors that might cause such a difference include, but
are not limited to: (i) our expectations regarding industry and
market trends, including the expected growth and continued
structural change and consolidation in the market for healthcare in
the United States; (ii) our
expectations about the growth of Programs of All-Inclusive Care for
the Elderly ("PACE") organizations; (iii) our expectations about
private payers establishing their own at-risk programs; (iv) the
advantages of our solutions as compared to those of competitors;
(v) our estimates about our financial performance; (vi) the
visibility into future cash flows from our business model; (vii)
our ability to reduce expenses as a result of our disposition of
non-core businesses; (viii) our growth strategy, including our
ability to grow our client base; (ix) our plans to further
penetrate existing markets and enter new markets; (x) expectations
of earnings, revenue, and other financial items; (xi) plans,
strategies, and objectives of management for future operations;
(xii) our ability to establish and maintain intellectual property
rights; (xiii) our ability to retain and hire necessary associates
and appropriately staff our operations; (xiv) future capital
expenditures; (xv) future economic conditions or performance; (xvi)
our plans to pursue strategic acquisitions and partnerships; (xvii)
our plans to expand and enhance our solutions; (xviii) our
estimates regarding capital requirements and needs for additional
financing; and (xix) the risks described in Part I, Item 1A of
our 2022 Form 10-K, filed with the SEC on March 10, 2023, and our other filings and reports
filed with or furnished to the Securities and Exchange Commission.
Forward-looking statements are based on our management's beliefs
and assumptions and on information currently available to our
management. These statements, like all statements in this report,
speak only as of their date, and we undertake no obligation to
update or revise these statements in light of future developments,
except as required by applicable law. We caution investors that our
business and financial performance are subject to substantial risks
and uncertainties.
TABULA RASA
HEALTHCARE, INC. UNAUDITED CONSOLIDATED BALANCE
SHEETS (In thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
67,190
|
|
$
|
70,017
|
Restricted
cash
|
|
|
6,240
|
|
|
12,372
|
Accounts receivable,
net
|
|
|
19,143
|
|
|
19,252
|
Inventories
|
|
|
7,390
|
|
|
6,566
|
Prepaid
expenses
|
|
|
4,313
|
|
|
4,664
|
Client claims
receivable
|
|
|
14,441
|
|
|
16,377
|
Divestiture-related
note receivable
|
|
|
3,492
|
|
|
—
|
Other current
assets
|
|
|
20,744
|
|
|
18,187
|
Current assets of
discontinued operations
|
|
|
—
|
|
|
22,825
|
Total current
assets
|
|
|
142,953
|
|
|
170,260
|
Property and equipment,
net
|
|
|
9,408
|
|
|
9,158
|
Operating lease
right-of-use assets
|
|
|
10,079
|
|
|
10,483
|
Software development
costs, net
|
|
|
32,432
|
|
|
32,592
|
Goodwill
|
|
|
115,323
|
|
|
115,323
|
Intangible assets,
net
|
|
|
36,727
|
|
|
38,326
|
Contingent
consideration receivable
|
|
|
2,550
|
|
|
3,350
|
Other assets
|
|
|
6,125
|
|
|
4,657
|
Total assets
|
|
$
|
355,597
|
|
$
|
384,149
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity (deficit)
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current operating
lease liabilities
|
|
$
|
2,798
|
|
$
|
2,708
|
Accounts
payable
|
|
|
21,906
|
|
|
19,459
|
Client claims
payable
|
|
|
11,453
|
|
|
10,781
|
Accrued expenses and
other liabilities
|
|
|
49,719
|
|
|
55,745
|
Current liabilities of
discontinued operations
|
|
|
458
|
|
|
13,389
|
Total current
liabilities
|
|
|
86,334
|
|
|
102,082
|
Long-term debt, net of
discount
|
|
|
232,357
|
|
|
232,112
|
Long-term debt –
related party, net of discount
|
|
|
88,615
|
|
|
88,522
|
Noncurrent operating
lease liabilities
|
|
|
12,395
|
|
|
12,786
|
Deferred income tax
liability, net
|
|
|
1,492
|
|
|
1,380
|
Other long-term
liabilities
|
|
|
5,268
|
|
|
4,298
|
Total
liabilities
|
|
|
426,461
|
|
|
441,180
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
|
|
Common
stock
|
|
|
3
|
|
|
3
|
Treasury
stock
|
|
|
(4,013)
|
|
|
(3,391)
|
Additional paid-in
capital
|
|
|
356,901
|
|
|
354,214
|
Accumulated
deficit
|
|
|
(423,755)
|
|
|
(407,857)
|
Total stockholders'
equity (deficit)
|
|
|
(70,864)
|
|
|
(57,031)
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
355,597
|
|
$
|
384,149
|
TABULA RASA
HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS
OF OPERATIONS (In thousands, except share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
Medication
revenue
|
|
$
|
68,750
|
|
$
|
50,973
|
Technology-enabled
solutions revenue
|
|
|
19,527
|
|
|
16,137
|
Total
revenue
|
|
|
88,277
|
|
|
67,110
|
Cost of revenue,
exclusive of depreciation and amortization shown below:
|
|
|
|
|
|
|
Cost of medication
revenue
|
|
|
53,082
|
|
|
39,552
|
Cost of
technology-enabled solutions revenue
|
|
|
14,442
|
|
|
13,169
|
Total cost of revenue,
exclusive of depreciation and amortization
|
|
|
67,524
|
|
|
52,721
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
|
1,279
|
|
|
3,965
|
Sales and
marketing
|
|
|
2,453
|
|
|
2,649
|
General and
administrative
|
|
|
16,577
|
|
|
15,878
|
Change in fair value
of contingent consideration receivable
|
|
|
400
|
|
|
—
|
Long-lived asset
impairment charge
|
|
|
—
|
|
|
4,062
|
Depreciation and
amortization
|
|
|
6,200
|
|
|
5,742
|
Total operating
expenses
|
|
|
26,909
|
|
|
32,296
|
Loss from
operations
|
|
|
(6,156)
|
|
|
(17,907)
|
Other income
(expense):
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(1,265)
|
|
|
(2,269)
|
Other
income
|
|
|
452
|
|
|
—
|
Total other expense,
net
|
|
|
(813)
|
|
|
(2,269)
|
Loss from continuing
operations before income taxes
|
|
|
(6,969)
|
|
|
(20,176)
|
Income tax
expense
|
|
|
105
|
|
|
216
|
Net loss from
continuing operations
|
|
|
(7,074)
|
|
|
(20,392)
|
Net loss from
discontinued operations, net of tax
|
|
|
(8,824)
|
|
|
(7,801)
|
Net loss
|
|
$
|
(15,898)
|
|
$
|
(28,193)
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
Net loss per share from
continuing operations, basic and diluted
|
|
$
|
(0.28)
|
|
$
|
(0.85)
|
Net loss per share from
discontinued operations, basic and diluted
|
|
|
(0.35)
|
|
|
(0.33)
|
Total net loss per
share, basic and diluted
|
|
$
|
(0.63)
|
|
$
|
(1.18)
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, basic and diluted
|
|
|
25,244,720
|
|
|
23,865,801
|
TABULA RASA
HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS
OF CASH FLOWS (In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(15,898)
|
|
$
|
(28,193)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
6,200
|
|
|
13,073
|
Amortization of
deferred financing costs and debt discount
|
|
|
338
|
|
|
468
|
Deferred
taxes
|
|
|
112
|
|
|
276
|
Stock-based
compensation
|
|
|
2,468
|
|
|
8,609
|
Change in fair value
of contingent consideration receivable
|
|
|
400
|
|
|
—
|
Impairment
charges
|
|
|
363
|
|
|
4,902
|
Net loss on disposal
of businesses
|
|
|
4,736
|
|
|
—
|
Other noncash
items
|
|
|
246
|
|
|
(95)
|
Changes in operating
assets and liabilities, net of effect of divestitures:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(19)
|
|
|
(5,570)
|
Inventories
|
|
|
(824)
|
|
|
544
|
Prepaid expenses and
other current assets
|
|
|
(1,878)
|
|
|
(7,131)
|
Client claims
receivables
|
|
|
1,936
|
|
|
(1,679)
|
Other
assets
|
|
|
61
|
|
|
(374)
|
Accounts
payable
|
|
|
111
|
|
|
80
|
Accrued expenses and
other liabilities
|
|
|
(8,115)
|
|
|
(2,274)
|
Client claims
payables
|
|
|
672
|
|
|
391
|
Other long-term
liabilities
|
|
|
337
|
|
|
1,238
|
Net cash used in
operating activities
|
|
|
(8,754)
|
|
|
(15,735)
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(719)
|
|
|
(217)
|
Software development
costs
|
|
|
(2,485)
|
|
|
(8,749)
|
Proceeds from
divestitures of businesses
|
|
|
3,384
|
|
|
—
|
Net cash provided by
(used in) investing activities
|
|
|
180
|
|
|
(8,966)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
|
|
219
|
|
|
60
|
Payments for employee
taxes for shares withheld
|
|
|
(622)
|
|
|
—
|
Payments for debt
financing costs
|
|
|
—
|
|
|
(350)
|
Borrowings on line of
credit
|
|
|
—
|
|
|
27,700
|
Net cash (used in)
provided by financing activities
|
|
|
(403)
|
|
|
27,410
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
(8,977)
|
|
|
2,709
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
82,407
|
|
|
15,706
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
|
73,430
|
|
$
|
18,415
|
TABULA RASA
HEALTHCARE, INC. UNAUDITED RECONCILIATION OF NET
LOSS TO ADJUSTED EBITDA (In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Reconciliation of
Net Loss to Adjusted EBITDA from Continuing
Operations
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15,898)
|
|
$
|
(28,193)
|
Add:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,265
|
|
|
2,269
|
Income tax
expense
|
|
|
105
|
|
|
216
|
Depreciation and
amortization
|
|
|
6,200
|
|
|
5,742
|
Change in fair value
of contingent consideration receivable
|
|
|
400
|
|
|
—
|
Impairment
charges
|
|
|
—
|
|
|
4,062
|
Business optimization
expenses
|
|
|
—
|
|
|
787
|
Severance
costs
|
|
|
391
|
|
|
575
|
Divestiture-related
expense
|
|
|
1,016
|
|
|
120
|
Stock-based
compensation expense
|
|
|
2,430
|
|
|
7,703
|
Loss from discontinued
operations
|
|
|
8,824
|
|
|
7,801
|
Adjusted EBITDA from
continuing operations
|
|
$
|
4,733
|
|
$
|
1,082
|
Adjusted EBITDA (loss)
from discontinued operations
|
|
|
(2,676)
|
|
|
1,440
|
Total Adjusted
EBITDA
|
|
$
|
2,057
|
|
$
|
2,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Reconciliation of
Net Loss from Discontinued Operations, net of tax to
Adjusted EBITDA (Loss)from Discontinued Operations
|
|
|
|
|
|
|
Net loss from
discontinued operations, net of tax
|
|
$
|
(8,824)
|
|
$
|
(7,801)
|
Add:
|
|
|
|
|
|
|
Income tax
expense
|
|
|
54
|
|
|
118
|
Depreciation and
amortization
|
|
|
—
|
|
|
7,331
|
Impairment
charges
|
|
|
363
|
|
|
840
|
Net loss on disposal
of businesses
|
|
|
4,736
|
|
|
—
|
Severance
costs
|
|
|
957
|
|
|
—
|
Acquisition-related
expense
|
|
|
—
|
|
|
46
|
Stock-based
compensation expense
|
|
|
38
|
|
|
906
|
Adjusted EBITDA (loss)
from discontinued operations
|
|
$
|
(2,676)
|
|
$
|
1,440
|
TABULA RASA
HEALTHCARE, INC. UNAUDITED RECONCILIATION OF
STATEMENT OF OPERATIONS TO NON-GAAP MEASURES (In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
Cost of
Revenue
|
|
Gross
Profit
|
|
Gross
Margin
Percentage
|
|
Operating
Expenses
|
|
Operating
Loss
|
|
Net
Loss
|
Reconciliation of
statement of operations to adjusted
amounts from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of operations
amounts
|
|
$
|
67,524
|
|
$
|
20,753
|
|
23.5 %
|
|
$
|
26,909
|
|
$
|
(6,156)
|
|
$
|
(7,074)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,599)
|
|
|
1,599
|
|
|
1,599
|
Change in fair value of
contingent consideration receivable
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(400)
|
|
|
400
|
|
|
400
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
338
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(391)
|
|
|
391
|
|
|
391
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,016)
|
|
|
1,016
|
|
|
1,016
|
Stock-based
compensation expense
|
|
|
(479)
|
|
|
479
|
|
0.6 %
|
|
|
(1,951)
|
|
|
2,430
|
|
|
2,430
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
313
|
Adjusted
amounts
|
|
$
|
67,045
|
|
$
|
21,232
|
|
24.1 %
|
|
$
|
21,552
|
|
$
|
(320)
|
|
$
|
(587)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
Cost of
Revenue
|
|
Gross
Profit
|
|
Gross
Margin
Percentage
|
|
Operating
Expenses
|
|
Operating
Loss
|
|
Net
Loss
|
Reconciliation of
statement of operations to adjusted
amounts from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of operations
amounts
|
|
$
|
52,721
|
|
$
|
14,389
|
|
21.4 %
|
|
$
|
32,296
|
|
$
|
(17,907)
|
|
$
|
(20,392)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,694)
|
|
|
1,694
|
|
|
1,694
|
Impairment
charges
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(4,062)
|
|
|
4,062
|
|
|
4,062
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
468
|
Business optimization
expenses
|
|
|
(433)
|
|
|
433
|
|
0.6 %
|
|
|
(354)
|
|
|
787
|
|
|
787
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(575)
|
|
|
575
|
|
|
575
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(120)
|
|
|
120
|
|
|
120
|
Stock-based
compensation expense
|
|
|
(1,125)
|
|
|
1,125
|
|
1.8 %
|
|
|
(6,578)
|
|
|
7,703
|
|
|
7,703
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,459
|
Adjusted
amounts
|
|
$
|
51,163
|
|
$
|
15,947
|
|
23.8 %
|
|
$
|
18,913
|
|
$
|
(2,966)
|
|
$
|
(3,524)
|
TABULA RASA
HEALTHCARE, INC. UNAUDITED RECONCILIATION OF GAAP TO
NON-GAAP GUIDANCE RANGES (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2023
|
|
Year Ended December
31, 2023
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Reconciliation from
Net Loss Guidance to Adjusted
EBITDA Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss:
|
|
$
|
(7.4)
|
|
$
|
(6.4)
|
|
$
|
(24.2)
|
|
$
|
(21.2)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1.4
|
|
|
1.4
|
|
|
5.4
|
|
|
5.4
|
Income tax
expense
|
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|
0.4
|
Depreciation and
amortization
|
|
|
6.4
|
|
|
6.4
|
|
|
25.4
|
|
|
25.4
|
Stock-based
compensation expense
|
|
|
3.0
|
|
|
3.0
|
|
|
12.0
|
|
|
12.0
|
Adjusted
EBITDA
|
|
$
|
3.5
|
|
$
|
4.5
|
|
$
|
19.0
|
|
$
|
22.0
|
View original content to download
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SOURCE Tabula Rasa HealthCare, Inc.