Fourth Quarter Revenues Increased 20% to
Achieved Fourth Quarter Gross Margin of 45% and Adjusted EBITDA of
Fiscal 2022 Revenues Increased 28% to
Announced Strategic Sale of
Fourth Quarter 2022 Financial Highlights:
- Revenues for the fourth quarter of 2022 increased 20% to
$40.5 million compared to revenues for the fourth quarter of 2021 of$33.9 million and increased 32% compared to revenues of$30.7 million for the fourth quarter of 2021 after adjusting for the deconsolidation of Glocal. - Gross margin expanded to 45%, from 18% in the fourth quarter of 2021, primarily due to cost of revenues in the Company’s
Integrated Care Management segment with no corresponding revenue in the fourth quarter of 2021. - Revenues and gross margin by segment for the fourth quarter of 2022 were:
- Virtual Care Infrastructure, which solely included the
U.S. Telehealth business, generated$17.6 million of revenues (43% of total revenues), an increase of$3.8 million , with a gross margin of 51%. - Services, which included the
Behavioral Health and Pharmacy businesses, generated$19.1 million of revenues (47% of total revenues), an increase of$1.4 million , with a gross margin of 36%. Integrated Care Management generated$3.8 million of revenues (9% of total revenues), an increase of$1.3 million , with a gross margin of 61%.
- Virtual Care Infrastructure, which solely included the
- Operating loss for the fourth quarter of 2022 was
$13.4 million , a 96% improvement compared to operating loss in the fourth quarter of 2021 of$337.0 million . This improvement primarily resulted from goodwill impairment charges taken in the three months endedDecember 31, 2021 , that were not repeated in the current quarter, partially offset by the deconsolidation of Glocal during the third quarter of 2022. - Adjusted EBITDA for the fourth quarter of 2022 improved by
$15.7 million , to$1.9 million , compared to Adjusted EBITDA for the fourth quarter of 2021 of$(13.8) million .
Certain prior period amounts have been reclassified to conform with our current period presentation. Please refer to the discussion and tables under “Non-GAAP Financial Information.”
Year-to-Date Fourth Quarter 2022 Financial Highlights:
- GAAP revenues for the year ended
December 31, 2022 , were$158.8 million , a 28% increase compared to GAAP revenues for the year endedDecember 31, 2021 , of$123.8 million , and a 7% increase compared to pro forma revenues (assumes full calendar year revenue for businesses acquired during 2021) for the year endedDecember 31, 2021 , of$148.9 million . - Gross margin for the year ended
December 31, 2022 , expanded to 44%, compared to GAAP gross margin of 32% and pro forma gross margin of 33% in the comparable year ago period, primarily due to cost of revenues recorded in the Company'sIntegrated Care Management segment with no corresponding revenue in the fourth quarter of 2021. - Year-to-date revenues and gross margin by segment for the year ended
December 31, 2022 , were:- Virtual Care Infrastructure generated
$65.0 million of revenues (41% of total revenues), an increase of$28.4 million , with a gross margin of 46%. - Services generated
$75.8 million of revenues (48% of total revenues), an increase of$20.5 million , with a gross margin of 35%. Integrated Care Management generated$18.0 million of revenues (11% of total revenues), a decrease of$13.9 million , with a gross margin of 76%.
- Virtual Care Infrastructure generated
- Operating loss for the year ended
December 31, 2022 , was$161.4 million , a 58% improvement compared to operating loss for the comparable year ago period of$380.0 million . This improvement primarily resulted from goodwill and intangible asset impairment charges taken in the year endedDecember 31, 2022 of$114.1 million due to the recent change in our market valuation and financial performance from ourIntegrated Care Management and Services segments compared to goodwill impairment charges taken in the year endedDecember 31, 2021 of$297.9 million from all three segments, partially offset by the deconsolidation of Glocal in the third quarter of 2022 and higher legal expenses associated with the matter. - Adjusted EBITDA for the year ended
December 31, 2022 , was$3.3 million , compared to year-to-date GAAP and pro forma Adjusted EBITDA for the year endedDecember 31, 2021 , of$(6.5) million and$(4.0) million , respectively.
Certain prior period amounts have been reclassified to conform with our current period presentation. Please refer to the discussion and tables under “Non-GAAP Financial Information.”
Significant Fourth Quarter Business Highlights:
- The Company recorded its largest volume of telehealth use ever in the
U.S. with nearly 15 million minutes of consultations, a 20% increase over Q3 2022 and an 83% increase over Q4 2021. - Surpassed 2,800 health systems and 40,000 end points for our Martti platform.
- Served our 10,000th client at our TTC facilities in
Florida and continued to expand our work with veterans and first responders. - Filled over 250,000
MedQuest prescriptions in a year for the first time. - Served our long-term customers in
California , delivering data integration and interoperability for two of the most significant counties in the state and stand committed to executing additional business and deepening our relationships for mutual growth. - Concluded a comprehensive review of the Company’s strategic initiatives for 2023, focusing on conserving cash, optimizing operations to ensure exemplary customer service while managing costs, strategically investing in high-growth initiatives, aligning leadership, and driving organic growth in the Company’s most profitable business units.
- Completed or reevaluated 93% of the total transformation milestones established for our business in 2022, the remaining outstanding work will be completed in the first quarter of 2023.
- Welcomed transformation and technology expert
Timothy Wilde as Chief Technology Officer, healthcare veteranMelissa Frieswick as Chief Growth Officer, and Dr.Mahesh Inder Veer Singh as Executive Vice President ofUpHealth International . - Conducted the Annual Meeting of Stockholders on
December 5, 2022 . At that meeting, stockholders electedSam Meckey , UpHealth’s Chief Executive Officer, and two new independent members,Mark Guinan andLuis Machuca , to the UpHealth Board of Directors.Mr. Guinan replacedNeil Miotto as the Chairman of the Audit Committee of the Board. - Subsequent to the quarter end, the Company announced the strategic sale of IGI to Belmar Pharma Solutions, which is expected to deliver
$56 million in gross proceeds upon closing, and will add significant liquidity to UpHealth’s balance sheet. This transaction represents execution against the Company’s new strategic vision and focus on scalable growth opportunities in the Telehealth,Behavioral Health , and Integrated Care businesses.
Balance Sheet and Cash Flow
On
Fiscal 2023 Financial Outlook
We expect 2023 revenues to be in the range of
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Investors Relations:
Managing Director
203-741-8811
UPH@mzgroup.us
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 15,557 | $ | 58,192 | |||
Restricted cash | — | 18,609 | |||||
Accounts receivable, net | 21,851 | 22,761 | |||||
Inventories | 161 | 2,928 | |||||
Due from related parties | 14 | 40 | |||||
Prepaid expenses and other current assets | 2,991 | 4,217 | |||||
Assets held for sale, current | 2,748 | — | |||||
Total current assets | 43,322 | 106,747 | |||||
Property and equipment, net | 14,069 | 56,072 | |||||
Operating lease right-of-use assets | 7,213 | — | |||||
Intangible assets, net | 31,362 | 115,313 | |||||
159,675 | 284,268 | ||||||
Equity investment | 21,200 | — | |||||
Other assets | 438 | 6,907 | |||||
Assets held for sale, noncurrent | 62,525 | — | |||||
Total assets | $ | 339,804 | $ | 569,307 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 17,983 | $ | 13,604 | |||
Accrued expenses | 38,763 | 36,084 | |||||
Deferred revenues | 2,738 | 2,649 | |||||
Due to related party | 229 | 47 | |||||
Income taxes payable | 388 | 739 | |||||
Related-party debt, current | — | 657 | |||||
Debt, current | — | 22,093 | |||||
Forward share purchase liability | — | 18,051 | |||||
Other liabilities, current | 5,462 | 2,780 | |||||
Liabilities held for sale, current | 3,319 | — | |||||
Total current liabilities | 68,882 | 96,704 | |||||
Related-party debt, noncurrent | 281 | 331 | |||||
Debt, noncurrent | 145,962 | 98,417 | |||||
Deferred tax liabilities | 1,200 | 28,281 | |||||
Warrant liabilities, noncurrent | 9 | 252 | |||||
Derivative liability, noncurrent | 56 | 7,977 | |||||
Operating lease liabilities, noncurrent | 5,766 | — | |||||
Other liabilities, noncurrent | 3,724 | 3,502 | |||||
Liabilities held for sale, noncurrent | 7,787 | — | |||||
Total liabilities | 233,667 | 235,464 | |||||
Stockholders’ Equity: | |||||||
Common stock | 2 | 1 | |||||
Additional paid-in capital | 688,355 | 665,474 | |||||
(17,000 | ) | — | |||||
Accumulated deficit | (566,209 | ) | (343,209 | ) | |||
Accumulated other comprehensive loss | — | (3,802 | ) | ||||
105,148 | 318,464 | ||||||
Noncontrolling interests | 989 | 15,379 | |||||
Total stockholders’ equity | 106,137 | 333,843 | |||||
Total liabilities and stockholders’ equity | $ | 339,804 | $ | 569,307 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | |||||||||||||||
Services | $ | 29,571 | $ | 24,660 | $ | 110,953 | $ | 70,223 | |||||||
Licenses and subscriptions | 1,954 | 1,757 | 12,566 | 25,516 | |||||||||||
Products | 8,972 | 7,488 | 35,284 | 28,056 | |||||||||||
Total revenues | 40,497 | 33,905 | 158,803 | 123,795 | |||||||||||
Costs of revenues: | |||||||||||||||
Services | 16,051 | 16,163 | 62,954 | 45,139 | |||||||||||
License and subscriptions | 347 | 6,163 | 1,260 | 19,183 | |||||||||||
Products | 5,884 | 5,555 | 24,434 | 19,659 | |||||||||||
Total costs of revenues | 22,282 | 27,881 | 88,648 | 83,981 | |||||||||||
Gross profit | 18,215 | 6,024 | 70,155 | 39,814 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 4,329 | 4,202 | 15,951 | 10,638 | |||||||||||
Research and development | 1,944 | 1,700 | 7,888 | 7,646 | |||||||||||
General and administrative | 11,782 | 33,234 | 48,755 | 52,285 | |||||||||||
Depreciation and amortization | 2,868 | 5,548 | 16,140 | 13,044 | |||||||||||
Stock-based compensation | 1,876 | 638 | 6,464 | 1,048 | |||||||||||
Lease abandonment expenses | — | — | 75 | 915 | |||||||||||
1,791 | 297,930 | 114,061 | 297,930 | ||||||||||||
Acquisition, integration, and transformation costs | 7,032 | (277 | ) | 22,214 | 36,289 | ||||||||||
Total operating expenses | 31,622 | 342,975 | 231,548 | 419,795 | |||||||||||
Loss from operations | (13,407 | ) | (336,951 | ) | (161,393 | ) | (379,981 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest expense | (6,194 | ) | (5,756 | ) | (26,500 | ) | (19,516 | ) | |||||||
Gain on consolidation of equity investment | — | — | — | 640 | |||||||||||
Loss on deconsolidation of subsidiary | — | — | (37,708 | ) | — | ||||||||||
Gain on fair value of derivative liability | 636 | 3,961 | 7,529 | 53,846 | |||||||||||
Gain on fair value of warrant liabilities | 52 | 147 | 242 | 1,595 | |||||||||||
Gain (loss) on extinguishment of debt | — | — | (14,610 | ) | 151 | ||||||||||
Other income, net, including interest income | 91 | 450 | 121 | 492 | |||||||||||
Total other income (expense) | (5,415 | ) | (1,198 | ) | (70,926 | ) | 37,208 | ||||||||
Loss before income tax benefit (expense) | (18,822 | ) | (338,149 | ) | (232,319 | ) | (342,773 | ) | |||||||
Income tax benefit (expense) | (8,360 | ) | 2,080 | 9,384 | 2,437 | ||||||||||
Net loss before loss from equity investment | (27,182 | ) | (336,069 | ) | (222,935 | ) | (340,336 | ) | |||||||
Loss from equity investment | — | — | — | (561 | ) | ||||||||||
Net loss | (27,182 | ) | (336,069 | ) | (222,935 | ) | (340,897 | ) | |||||||
Less: net income (loss) attributable to noncontrolling interests | 174 | (21 | ) | 65 | 126 | ||||||||||
Net loss attributable to | $ | (27,356 | ) | $ | (336,048 | ) | $ | (223,000 | ) | $ | (341,023 | ) | |||
Net loss per share attributable to | |||||||||||||||
Basic | $ | (1.82 | ) | $ | (23.64 | ) | $ | (15.17 | ) | $ | (31.86 | ) | |||
Diluted | $ | (1.82 | ) | $ | (23.64 | ) | $ | (15.17 | ) | $ | (31.86 | ) | |||
Weighted average shares outstanding: | |||||||||||||||
Basic | 15,030 | 14,214 | 14,699 | 10,703 | |||||||||||
Diluted | 15,030 | 14,214 | 14,699 | 10,703 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
For the years ended | |||||||
2022 | 2021 | ||||||
Operating activities: | |||||||
Net loss | $ | (222,935 | ) | $ | (340,897 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 22,336 | 16,768 | |||||
Amortization of debt issuance costs and discount on convertible debt | 12,789 | 8,882 | |||||
Stock-based compensation | 6,425 | 1,048 | |||||
Impairment of property, plant and equipment, intangible assets and goodwill | 114,061 | 297,930 | |||||
Provision for bad debt expense | 1 | 18,617 | |||||
Loss (gain) on extinguishment of debt | 14,610 | (151 | ) | ||||
Loss from equity investment | — | 561 | |||||
Gain on consolidation of equity investment | — | (640 | ) | ||||
Loss on deconsolidation of subsidiary | 37,708 | — | |||||
Gain on fair value of warrant liabilities | (4,394 | ) | (1,595 | ) | |||
Gain on fair value of derivative liability | (7,529 | ) | (53,846 | ) | |||
Loss on disposal of property and equipment | — | 876 | |||||
Deferred income taxes | (5,133 | ) | (2,502 | ) | |||
Operating lease asset/liabilities | 143 | — | |||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | (4,503 | ) | (26,747 | ) | |||
Inventories | 417 | 200 | |||||
Prepaid expenses and other current assets | (100 | ) | (6,909 | ) | |||
Accounts payable and accrued expenses | 12,674 | 23,019 | |||||
Income taxes payable | (599 | ) | 65 | ||||
Deferred revenue | 954 | 1,942 | |||||
Due to related parties | (478 | ) | 1 | ||||
Other current liabilities | (585 | ) | 561 | ||||
Net cash used in operating activities | (24,138 | ) | (62,817 | ) | |||
Investing activities: | |||||||
Purchases of property and equipment | (4,571 | ) | (3,723 | ) | |||
Due to related parties | (14 | ) | 497 | ||||
Deconsolidated Glocal cash | (8,743 | ) | — | ||||
Net cash acquired in acquisition of businesses | — | 3,969 | |||||
Net cash provided by (used in) investing activities | (13,328 | ) | 743 | ||||
Financing activities: | |||||||
Proceeds from merger and recapitalization transaction | — | 83,909 | |||||
Proceeds from debt | 67,500 | 164,500 | |||||
Repayments of debt | (48,234 | ) | (42,645 | ) | |||
Proceeds from Provider Relief Funds | (10 | ) | 506 | ||||
Repayment of forward share purchase | (18,521 | ) | — | ||||
Payments of debt issuance costs | (1,475 | ) | (8,100 | ) | |||
Repayments of seller notes | (18,680 | ) | (99,207 | ) | |||
Payments of finance and capital lease obligations | (3,664 | ) | (2,173 | ) | |||
Proceeds from equity offering | — | 42,962 | |||||
Proceeds from stock option exercises | — | 319 | |||||
Payments for taxes related to net settlement of equity awards | (95 | ) | — | ||||
Distribution to noncontrolling interest | (139 | ) | — | ||||
Payment of amount due to member | — | (4,200 | ) | ||||
Net cash provided by (used in) financing activities | (23,318 | ) | 135,871 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (460 | ) | 635 | ||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (61,244 | ) | 74,432 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 76,801 | 2,369 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 15,557 | $ | 76,801 |
NON-GAAP FINANCIAL INFORMATION
Non-GAAP Financial Information
This press release includes financial measures that are not calculated in accordance with accounting principles generally accepted in
- Pro forma revenues consist of GAAP revenues and revenues from UpHealth’s subsidiaries prior to their acquisition.
- Pro forma gross profit and gross margin consist of GAAP gross profit and gross margin, and gross profit and gross margin from UpHealth’s subsidiaries prior to their acquisition.
- Adjusted EBITDA consists of net income (loss) attributable to
UpHealth, Inc. , excluding depreciation and amortization; stock-based compensation; lease abandonment expenses; goodwill and intangible asset impairments; acquisition, integration, and transformation costs; other income (expense); income tax benefit (expense); income (loss) from equity investment; net income (loss) attributable to noncontrolling interests; and other non-recurring charges to GAAP net income (loss) attributable toUpHealth, Inc. Other non-recurring charges to GAAP net income (loss) attributable toUpHealth, Inc. may include transaction expenses in connection with capital raising transactions (whether debt, equity or equity-linked) and acquisitions, whether or not consummated, purchase price adjustments, the cumulative effect of a change in accounting principles, or other expenses determined to be non-recurring.
Pro forma revenues, pro forma gross profit, pro forma gross margin, and adjusted EBITDA are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. You should not consider these measures in isolation or as a substitute for analysis of UpHealth’s results as reported under GAAP.
The accompanying tables provide more details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Revenues | $ | 40,497 | $ | 33,905 | |||
Gross margin | 45 | % | 18 | % | |||
Net loss attributable to | $ | (27,356 | ) | $ | (336,048 | ) | |
Net loss attributable to noncontrolling interests | 174 | (21 | ) | ||||
Net loss | (27,182 | ) | (336,069 | ) | |||
Other expense | 5,415 | 1,198 | |||||
Income tax benefit | 8,360 | (2,080 | ) | ||||
Loss from operations | (13,407 | ) | (336,951 | ) | |||
Depreciation and amortization | 4,561 | 6,995 | |||||
Stock-based compensation | 1,876 | 638 | |||||
Contingent liability (2) | — | 17,820 | |||||
Acquisition, integration and transformation costs, and non-recurring expenses (3) | 8,823 | 297,653 | |||||
Adjusted EBITDA (Non-GAAP) | $ | 1,853 | $ | (13,845 | ) |
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect contingent liability to be paid only if certain fully-reserved receivables are collected.
(3) Amounts reflect acquisition, integration and transformation costs, lease abandonment expenses, and goodwill impairment from the consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
Year Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
GAAP | GAAP | Adjustments (2) | Pro Forma (3) | ||||||||||||
Revenues | $ | 158,803 | $ | 123,795 | $ | 25,082 | $ | 148,877 | |||||||
Gross margin | 44 | % | 32 | % | 37 | % | 33 | % | |||||||
Net loss attributable to | $ | (223,000 | ) | $ | (341,023 | ) | $ | (4,317 | ) | $ | (345,340 | ) | |||
Net loss attributable to noncontrolling interests | 65 | 126 | 28 | 154 | |||||||||||
Net loss | (222,935 | ) | (340,897 | ) | (4,289 | ) | (345,186 | ) | |||||||
Other expense | 70,926 | (37,208 | ) | (1,171 | ) | (38,379 | ) | ||||||||
Income tax benefit | (9,384 | ) | (2,437 | ) | (99 | ) | (2,536 | ) | |||||||
Loss from equity investment | — | 561 | — | 561 | |||||||||||
Loss from operations | (161,393 | ) | (379,981 | ) | (5,559 | ) | (385,540 | ) | |||||||
Depreciation and amortization | 21,835 | 16,768 | 2,729 | 19,497 | |||||||||||
Stock-based compensation | 6,464 | 1,048 | — | 1,048 | |||||||||||
Contingent liability (4) | — | 17,820 | — | 17,820 | |||||||||||
Acquisition, integration and transformation costs, lease abandonment expenses, goodwill and intangible asset impairment, and non-recurring expenses (5) | 136,350 | 337,881 | 5,302 | 343,183 | |||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 3,256 | $ | (6,464 | ) | $ | 2,472 | $ | (3,992 | ) | |||||
(1) See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures.
(2) Amounts reflect operating activity of
(3) Amounts reflect operating activity of
(4) Amounts reflect contingent liability to be paid only if certain fully-reserved receivables are collected.
(5) Amounts reflect acquisition, integration and transformation costs, lease abandonment expenses, and goodwill impairment from the consolidated statements of operations, as well as other operating expenses considered to be non-recurring during the period.
SEGMENT INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Revenues: | |||||||
Integrated care management (2) | $ | 3,780 | $ | 2,460 | |||
Virtual care infrastructure (3)(5) | 17,574 | 13,729 | |||||
Services (4) | 19,143 | 17,716 | |||||
Total | $ | 40,497 | $ | 33,905 | |||
Three Months Ended | |||||||
2022 | 2021 | ||||||
Gross Profit: | |||||||
Integrated care management (2) | $ | 2,302 | $ | (4,167 | ) | ||
Virtual care infrastructure (3)(5) | 8,939 | 4,689 | |||||
Services (4) | 6,974 | 5,502 | |||||
Total | $ | 18,215 | $ | 6,024 | |||
Three Months Ended | |||||||
2022 | 2021 | ||||||
Gross Margin %: | |||||||
Integrated care management (2) | 61 | % | (169 | )% | |||
Virtual care infrastructure (3)(5) | 51 | % | 34 | % | |||
Services (4) | 36 | % | 31 | % | |||
Total | 45 | % | 18 | % | |||
Year Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
GAAP | GAAP | Adjustments (6) | Pro Forma (7) | ||||||||||||
Revenues: | |||||||||||||||
Integrated care management (2) | $ | 18,010 | $ | 31,886 | $ | — | $ | 31,886 | |||||||
Virtual care infrastructure (3)(5) | 64,997 | 36,569 | 15,604 | 52,242 | |||||||||||
Services (4) | 75,796 | 55,340 | 9,477 | 64,817 | |||||||||||
Total | $ | 158,803 | $ | 123,795 | $ | 25,081 | $ | 148,945 | |||||||
Year Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
GAAP | GAAP | Adjustments (6) | Pro Forma (7) | ||||||||||||
Gross Profit: | |||||||||||||||
Integrated care management (2) | $ | 13,687 | $ | 10,316 | $ | — | $ | 10,316 | |||||||
Virtual care infrastructure (3)(5) | 29,882 | 12,633 | 6,096 | 18,729 | |||||||||||
Services (4) | 26,586 | 16,865 | 3,157 | 20,022 | |||||||||||
Total | $ | 70,155 | $ | 39,814 | $ | 9,253 | $ | 49,067 | |||||||
Year Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
GAAP | GAAP | Adjustments (6) | Pro Forma (7) | ||||||||||||
Gross Margin %: | |||||||||||||||
Integrated care management (2) | 76 | % | 32 | % | n/a | 32 | % | ||||||||
Virtual care infrastructure (3)(5) | 46 | % | 35 | % | 39 | % | 36 | % | |||||||
Services (4) | 35 | % | 30 | % | 33 | % | 31 | % | |||||||
Total | 44 | % | 32 | % | 37 | % | 33 | % |
SEGMENT INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(In thousands)
(1 | ) | See Non-GAAP Financial Information section for definitions of the Company’s non-GAAP financial measures. |
Segment Information The Company’s business is organized into three operating business segments: | ||
Integrated Care Management—through the Thrasys subsidiary. Virtual Care Infrastructure—through the Cloudbreak and Glocal (other than for the six month period of Services—through the Innovations, BHS and TTC subsidiaries. | ||
The reportable segments are consistent with how management views the Company’s services and products and the financial information reviewed by the chief operating decision makers. The Company manages its businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and assess performance. | ||
(2 | ) | In the |
(3 | ) | In the Virtual Care Infrastructure segment, the Company provides technology and process-based healthcare platforms providing its customers comprehensive primary care, specialty consultations, and translation services, through telemedicine, Digital Dispensaries, and technology-based hospital centers. |
(4 | ) | In the Services segment, the Company provide custom compounded medications for the unique needs of every patient and prescriber. The Company is a full-service pharmacy filling prescriptions from its inventory of compounded medications, as well as drugs purchased from manufacturers. Additionally, the Company provides inpatient and outpatient substance abuse and mental health treatment services for individuals with drug and alcohol addiction and other behavioral health issues. The Company offers a complete continuum of care from detoxification services, residential care, partial hospitalization programs, and intensive outpatient and outpatient programs. |
(5 | ) | As discussed in Note 1, Organization and Business, to the Company’s consolidated financial statements, the Company deconsolidated Glocal during the three months ended |
(6 | ) | Amounts reflect operating activity of |
(7 | ) | Amounts reflect operating activity of |
Source:
2023 GlobeNewswire, Inc., source