Agiliti Inc. (NYSE: AGTI) (“Agiliti”), a nationwide provider of
healthcare technology management and service solutions to the
United States healthcare industry, today announced its financial
results for the second quarter ended June 30, 2023, and revised its
financial outlook for 2023.
Second Quarter 2023 Highlights
- Revenue growth of 6.2% to $291 million
- Net loss of $4 million, compared to net income of $5 million in
the prior year period; loss per share of $0.03, compared to income
per share of $0.04 per share in the prior year period
- Adjusted EBITDA1 of $66 million, compared to $70 million in the
prior year period; Adjusted Earnings Per Share1 of $0.14, compared
to $0.19 in the prior year period
“In the second quarter we delivered solid topline performance
supported by continued demand for our differentiated suite of
essential services,” said Tom Boehning, Chief Executive Officer.
“Our customers continue to rely on us to help them address the many
challenges they’re facing, as we ultimately deliver improved
clinical efficiencies, cost savings and enhanced patient outcomes.
While we are maintaining our revenue guidance for the year, we are
lowering our adjusted EBITDA and adjusted EPS guidance to reflect
the near-term impact of the contraction of our peak need rental
(PNR) business and the onboarding of larger contracts. However, we
expect our mix of business to help support a more visible and
predictable financial outlook moving forward, consistent with our
long history as a company.”
Second Quarter 2023 Financial Results
Total revenue for the three months ended June 30, 2023 was
$291.1 million, representing a 6.2 percent increase from $274.0
million for the same period of 2022. Total revenue for the six
months ended June 30, 2023, was $591.0 million, representing a 4.0
percent increase from $568.4 million for the same period of
2022.
Net loss for the three months ended June 30, 2023 was $4.0
million, compared to net income of $5.0 million for the same period
of 2022. Net loss for the six months ended June 30, 2023, was $1.0
million compared to net income of $24.9 million for the same period
of 2022.
Adjusted EBITDA1 for the three months ended June 30, 2023 was
$65.5 million, a 5.8 percent decline from $69.6 million for the
same period of 2022. Adjusted EBITDA1 for the six months ended June
30, 2023, was $137.5 million, a 13.4 percent decline from $158.7
million for the same period of 2022.
Revised 2023 Financial Outlook
The company revised its guidance for 2023 as follows:
- Revenue of $1.16 - $1.19 billion (consistent with prior
guidance)
- Adjusted EBITDA of $260 - $270 million2
- Adjusted earnings per share of $0.54 – $0.59 per share2
- Capex investment expected at $80 million
_____________________________ 1 Non-GAAP Measures. See further
discussion on page 6 2 With regard to the non-GAAP Adjusted EBITDA
guidance and adjusted earnings per share guidance provided above, a
reconciliation to GAAP net income has not been provided as the
quantification of certain items included in the calculation of GAAP
net income cannot be calculated or predicted at this time without
unreasonable efforts. For example, the non-GAAP adjustment for
stock-based compensation expense requires additional inputs such as
number of shares granted and market price that are not currently
ascertainable, and the non-GAAP adjustment for certain reserves and
expenses depends on the timing and magnitude of these expenses and
cannot be accurately forecasted. For the same reasons, the Company
is unable to address the probable significance of the unavailable
information, which could have a potentially unpredictable, and
potentially significant, impact on its future GAAP financial
results. See further discussion below regarding historical Adjusted
EBITDA and historical adjusted earnings per share.
Conference Call Information
Agiliti will hold a conference call to discuss its second
quarter 2023 results on Tuesday, August 8, at 5 p.m. Eastern Time
(4 p.m. Central Time).
The conference call can be accessed live over the phone by
dialing 1-877-407-0792 or for international callers,
1-201-689-8263. The passcode for the live call and the replay is
13739397. 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 Access ID for the replay call is
13739397. The replay will be available until August 22, 2023.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by visiting the Agiliti
Investor Relations site at https://investors.agilitihealth.com. The
online replay will be available for a limited time shortly
following the call.
About Agiliti
Agiliti is an essential service provider to the U.S. healthcare
industry with solutions that help support a more efficient, safe
and sustainable healthcare delivery system. Agiliti serves more
than 10,000 national, regional and local acute care and alternate
site providers across the U.S. For more than eight decades, Agiliti
has delivered medical equipment management and service solutions
that help healthcare providers reduce costs, increase operating
efficiencies and support optimal patient outcomes.
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Certain statements in this press release are
forward-looking in time, including financial outlook and other
preliminary results, and involve risks and uncertainties. The
following factors, among others, could adversely affect our
business, operations and financial condition causing our actual
results to differ materially from those expressed in any
forward-looking statements: negative reaction of our investors, our
suppliers, our customers or our employees to our leadership
succession; market volatility of our common stock as a result of
our leadership succession; the risk that the leadership succession
may not provide the results that the company expects; our history
of net losses and substantial interest expense; our need for
substantial cash to operate and expand our business as planned; our
substantial outstanding debt and debt service obligations;
restrictions imposed by the terms of our debt; a decrease in the
number of patients our customers are serving; our ability to effect
change in the manner in which health care providers traditionally
procure medical equipment; the absence of long-term commitments
with customers; our potential inability to maintain the agreement
with the U.S. Department of Health and Human Services’ (“HHS”) and
Office of Assistant Secretary of Preparedness and Response (“ASPR”)
(the “Agreement”) or comply with its terms and risks relating to
extension, renewal or termination of the Agreement or any of our
existing contacts with HHS and ASPR; our ability to renew contracts
with group purchasing organizations and integrated delivery
networks; changes in reimbursement rates and policies by
third-party payors; the impact of health care reform initiatives;
the impact of significant regulation of the health care industry
and the need to comply with those regulations; the effect of
prolonged negative changes in domestic and global economic
conditions; difficulties or delays in our continued expansion into
certain of our businesses/geographic markets and developments of
new businesses/geographic markets; additional credit risks in
increasing business with home care providers and nursing homes,
impacts of equipment product recalls or obsolescence; increases in
vendor costs that cannot be passed through to our customers; and
other Risk Factors as detailed in our most recent annual report on
Form 10-K.
Agiliti, Inc. and Subsidiaries
Consolidated Statements of
Operations
(in thousands, except share and per share
information)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
$
291,081
$
273,984
$
590,985
$
568,428
Cost of revenue
191,677
175,819
382,207
346,636
Gross margin
99,404
98,165
208,778
221,792
Selling, general and administrative
expense
81,230
82,121
170,067
168,259
Operating income
18,174
16,044
38,711
53,533
Loss on extinguishment / modification of
debt
4,445
1,418
4,445
1,418
Interest expense
20,549
11,261
36,380
21,925
Income (loss) before income taxes and
noncontrolling interest
(6,820
)
3,365
(2,114
)
30,190
Income tax (benefit) expense
(2,892
)
(1,698
)
(1,236
)
5,207
Consolidated net income (loss)
(3,928
)
5,063
(878
)
24,983
Net income attributable to noncontrolling
interest
98
65
135
93
Net income (loss) attributable to Agiliti,
Inc. and Subsidiaries
$
(4,026
)
$
4,998
$
(1,013
)
$
24,890
Basic income (loss) per share
$
(0.03
)
$
0.04
$
(0.01
)
$
0.19
Diluted income (loss) per share
$
(0.03
)
$
0.04
$
(0.01
)
$
0.18
Weighted-average common shares
outstanding:
Basic
134,661,933
132,556,645
134,258,271
131,856,267
Diluted
139,744,988
138,697,206
139,373,990
137,932,546
Agiliti, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share
information)
(unaudited)
June 30, 2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents
$
9,213
$
5,577
Accounts receivable, less allowance for
credit losses of $4,304 as of June 30, 2023 and $4,182 as of
December 31, 2022
220,269
207,753
Inventories
79,154
70,132
Prepaid expenses
15,420
23,458
Other current assets
4,760
9,393
Total current assets
328,816
316,313
Property and equipment, net
284,132
273,958
Goodwill
1,239,432
1,239,106
Operating lease right-of-use assets
80,717
79,975
Other intangibles, net
470,420
512,020
Other
23,991
22,735
Total assets
$
2,427,508
$
2,444,107
Liabilities and Equity
Current liabilities:
Current portion of long-term debt
$
16,376
$
17,752
Current portion of operating lease
liability
25,397
23,607
Current portion of obligation under tax
receivable agreement
10,052
34,694
Accounts payable
70,328
59,163
Accrued compensation
20,620
25,928
Accrued interest
7,814
5,039
Other current liabilities
30,105
31,198
Total current liabilities
180,692
197,381
Long-term debt, less current portion
1,081,246
1,077,293
Obligation under tax receivable agreement,
pension and other long-term liabilities
10,135
9,161
Operating lease liability, less current
portion
67,046
67,332
Deferred income taxes, net
133,976
146,615
Commitments and contingencies
Equity:
Common stock, $0.0001 par value;
500,000,000 shares authorized; 134,987,003 and 133,608,495 shares
issued and outstanding at June 30, 2023 and December 31, 2022
13
13
Additional paid-in capital
963,965
953,046
Accumulated deficit
(15,287
)
(14,274
)
Accumulated other comprehensive income
5,497
7,343
Total Agiliti, Inc. and Subsidiaries
equity
954,188
946,128
Noncontrolling interest
225
197
Total equity
954,413
946,325
Total liabilities and equity
$
2,427,508
$
2,444,107
Agiliti, Inc. and Subsidiaries
Consolidated Statements of Cash
Flows
(in thousands)
(unaudited)
Six Months Ended June
30,
2023
2022
Cash flows from operating activities:
Consolidated net income (loss)
$
(878
)
$
24,983
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
39,158
46,412
Amortization
46,858
47,119
Loss on extinguishment / modification of
debt
4,445
1,418
Provision for credit losses
341
279
Provision for inventory obsolescence
1,129
568
Non-cash share-based compensation
expense
10,474
10,206
Gain on sales and disposals of
equipment
(1,177
)
(256
)
Deferred income taxes
(12,000
)
(2,567
)
Changes in operating assets and
liabilities:
Accounts receivable
(12,113
)
(8,833
)
Inventories
(10,319
)
(4,398
)
Other operating assets
4,345
(579
)
Accounts payable
10,606
8,702
Accrued and other operating
liabilities
1,550
(21,916
)
Net cash provided by operating
activities
82,419
101,138
Cash flows from investing activities:
Medical equipment purchases
(25,512
)
(22,823
)
Property and office equipment
purchases
(15,704
)
(12,776
)
Proceeds from disposition of property and
equipment
2,115
1,763
Acquisitions, net of cash acquired
—
(3,125
)
Net cash used in investing activities
(39,101
)
(36,961
)
Cash flows from financing activities:
Proceeds under debt arrangements
1,208,937
20,000
Payments under debt arrangements
(1,205,049
)
(123,824
)
Payments of principal under finance lease
liability
(4,687
)
(4,484
)
Payments of deferred financing costs
(9,489
)
—
Payments under tax receivable
agreement
(24,822
)
—
Distributions to noncontrolling
interests
(107
)
(47
)
Proceeds from exercise of stock
options
2,102
1,971
Dividend and equity distribution
payment
(321
)
(906
)
Shares forfeited for taxes
(6,246
)
(14,367
)
Payments of contingent consideration
—
(321
)
Net cash used in financing activities
(39,682
)
(121,978
)
Net change in cash and cash
equivalents
3,636
(57,801
)
Cash and cash equivalents at the beginning
of period
5,577
74,325
Cash and cash equivalents at the end of
period
$
9,213
$
16,524
Use of non-GAAP information
This press release contains non-GAAP measures, including EBITDA,
Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and
Net Leverage Ratio. We use these internally as measures of
operational performance, or liquidity, as applicable, and disclose
them externally to assist analysts, investors and lenders in their
comparisons of operational performance, valuation and debt capacity
across companies with differing capital, tax and legal structures.
We believe the investment community frequently uses these measures
in the evaluation of similarly situated companies. Adjusted EBITDA
is also used by the Company as a factor to determine the total
amount of incentive compensation to be awarded to executive
officers and other employees. EBITDA, Adjusted EBITDA, Adjusted Net
Income, Adjusted EPS, Net Debt and Net Leverage Ratio, however, are
not measures of financial performance under accounting principles
generally accepted in the United States of America (“GAAP”) and
should not be considered as alternatives to, or more meaningful
than, net income as measures of operating performance or to cash
flows from operating, investing or financing activities or to total
debt as measures of liquidity or debt capacity. Since EBITDA,
Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and
Net Leverage Ratio are not measures determined in accordance with
GAAP and are thus susceptible to varying interpretations and
calculations, these measures, as presented, may not be comparable
to other similarly titled measures of other companies. EBITDA,
Adjusted EBITDA, and Adjusted Net Income do not represent amounts
of funds that are available for management’s discretionary use.
EBITDA and Adjusted EBITDA presented may not be the same as EBITDA
and Adjusted EBITDA calculations as defined in the First Lien
Credit Facilities. EBITDA is defined as earnings attributable to
Agiliti, Inc. before interest expense, income taxes, depreciation
and amortization. Adjusted EBITDA is defined as EBITDA excluding
non-cash share-based compensation expense, management fees and
other non-recurring gains, expenses, or losses, transaction costs,
remeasurement of the tax receivable agreement and loss on
extinguishment of debt. LTM Adjusted EBITDA represents the last
twelve months (“LTM”) of Adjusted EBITDA.
Agiliti, Inc. and Subsidiaries
Non-GAAP Financial Measure: Adjusted
EBITDA
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands)
2023
2022
2023
2022
Net income (loss) attributable to Agiliti,
Inc. and Subsidiaries
$
(4,026
)
$
4,998
$
(1,013
)
$
24,890
Interest expense
20,549
11,261
36,380
21,925
Income tax (benefit) expense
(2,892
)
(1,698
)
(1,236
)
5,207
Depreciation and amortization
41,706
46,711
83,812
91,542
EBITDA
55,337
61,272
117,943
143,564
Non-cash share-based compensation
expense
3,585
5,569
10,474
10,206
Management and other expenses (1)
2,067
—
3,028
—
Transaction costs (2)
83
1,295
1,595
3,521
Loss on extinguishment / modification of
debt (3)
4,445
1,418
4,445
1,418
Adjusted EBITDA
$
65,517
$
69,554
$
137,485
$
158,709
_____________________________
(1)
Management and other expenses represent non-recurring expenses.
(2)
Transaction costs represent costs associated with potential and
completed mergers and acquisitions.
(3)
Loss on extinguishment / modification of debt for the six months
ended June 30, 2023 consists of the write-off of unamortized costs
and new costs incurred in relation to the amendment of the First
Lien Term Loan and Revolving Credit Facility. Loss on
extinguishment / modification of debt for the six months ended June
30, 2022 consists of the write-off of the unamortized debt discount
related to the partial prepayment of the First Lien Term Loan.
Agiliti, Inc. and Subsidiaries
Non-GAAP Financial Measure: Adjusted
Net Income and Adjusted EPS
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except share and per share
information)
2023
2022
2023
2022
Net income (loss) attributable to Agiliti,
Inc. and Subsidiaries
$
(4,026
)
$
4,998
$
(1,013
)
$
24,890
Amortization
22,167
22,797
44,654
45,130
Non-cash share-based compensation
expense
3,585
5,569
10,474
10,206
Management and other expenses (1)
2,067
—
3,028
—
Transaction costs (2)
83
1,295
1,595
3,521
Loss on extinguishment / modification of
debt (3)
4,445
1,418
4,445
1,418
Income tax benefit associated with pre-tax
adjustments (4)
(8,510
)
(10,276
)
(15,901
)
(18,245
)
Adjusted net income
$
19,811
$
25,801
$
47,282
$
66,920
Weighted average shares outstanding -
diluted
139,744,988
138,697,206
139,373,990
137,932,546
Adjusted EPS
$
0.14
$
0.19
$
0.34
$
0.49
_____________________________
(1)
Management and other expenses represent non-recurring expenses.
(2)
Transaction costs represent costs associated with potential and
completed mergers and acquisitions.
(3)
Loss on extinguishment / modification of debt for the six months
ended June 30, 2023 consists of the write-off of unamortized costs
and new costs incurred in relation to the amendment of the First
Lien Term Loan and Revolving Credit Facility. Loss on
extinguishment / modification of debt for the six months ended June
30, 2022 consists of the write-off of the unamortized debt discount
related to the partial prepayment of the First Lien Term Loan.
(4)
Income tax benefit associated with pre-tax adjustments represents
the tax benefit associated with the reconciling items between net
income and Adjusted Net Income and includes both the current and
deferred income tax impact of the adjustments. To determine the
aggregate tax effect of the reconciling items, we utilized
statutory income tax rates ranging from 0% to 26%, depending upon
the applicable jurisdictions of each adjustment.
Agiliti, Inc. and Subsidiaries
Non-GAAP Financial Measure: Net Debt
and Net Leverage Ratio
(in thousands)
June 30, 2023
First Lien Term Loan, due 2030
$
1,075,000
Revolving Loan, due 2028
20,000
Finance lease liability
25,476
Less: Unamortized Deferred Financing Costs
and Debt Discount
(22,854
)
Total Debt
1,097,622
Less: Cash
(9,213
)
Net Debt
$
1,088,409
LTM Adjusted EBITDA
$
275.3
Net Leverage
3.95x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808433915/en/
Solebury Strategic Communications ir@agilitihealth.com
Agiliti (NYSE:AGTI)
過去 株価チャート
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Agiliti (NYSE:AGTI)
過去 株価チャート
から 5 2023 まで 5 2024