Continued Strong Organic Revenue Growth of
24%
Second Quarter Adjusted EBITDA of $6.3 Million Increased More Than 3x Compared to
Second Quarter 2022
MOORESTOWN, N.J., Aug. 7, 2023
/PRNewswire/ -- Tabula Rasa HealthCare, Inc.® (Nasdaq:TRHC) ("TRHC"
or the "Company"), a leading healthcare company advancing
personalized, comprehensive care for value-based care
organizations, today reported financial results for the second
quarter ended June 30, 2023.
Highlights from the second quarter ended June 30, 2023 include:
- Second quarter revenue from continuing operations of
$90.0 million increased 24%,
including medication revenue growth of 25% and technology-enabled
solutions revenue growth of 22% versus the prior year second
quarter.
- Second quarter GAAP net loss and adjusted EBITDA from
continuing operations of $9.7 million
and $6.3 million, respectively,
compares with $12.7 million and
$2.1 million in the second quarter of
2022.
"We delivered another impressive quarter demonstrating the
strength of the underlying organic growth in our core PACE market
and our commitment to significantly improve profitability. This is
a testament to the strong performance by our employees who remain
focused on serving the most complex and vulnerable individuals in
PACE and other value-based care models," said Brian Adams, President and Chief Executive
Officer.
Key Financial
Results
|
(in millions except
percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q2
2023
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
|
Guidance
|
Revenue from continuing
operations
|
|
$
|
90.0
|
|
$
|
72.6
|
|
24
|
%
|
|
$
|
88.0 - 90.0
|
Gross margin
|
|
|
25.0 %
|
|
|
22.0 %
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
|
25.6 %
|
|
|
23.1 %
|
|
|
|
|
|
|
GAAP net loss from
continuing operations
|
|
$
|
(9.7)
|
|
$
|
(12.7)
|
|
23
|
%
|
|
|
|
Adjusted net income
(loss) from continuing operations
|
|
$
|
0.7
|
|
$
|
(2.7)
|
|
127
|
%
|
|
|
|
Adjusted EBITDA from
continuing operations
|
|
$
|
6.3
|
|
$
|
2.1
|
|
207
|
%
|
|
$
|
3.5 - 4.5
|
Second Quarter 2023 Financial Results
All comparisons, unless otherwise noted, are to the three months
ended June 30, 2022, and reflect
continuing
operations.
- Revenue – Revenue of $90.0
million increased 24% compared to $72.6 million in the second quarter of 2022 and
increased 2% as compared to the first quarter of 2023. Medication
revenue of $69.6 million increased
25% due to continued PACE census growth and higher revenue per PACE
participant. Technology-enabled solutions revenue of $20.4 million increased 22% compared to
$16.7 million in the second quarter
of 2022 and increased 5% as compared to the first quarter of
2023.
- Gross Profit – Gross profit (exclusive of depreciation
and amortization) of $22.5 million
(25.0% of revenue) increased 41% as compared to $16.0 million (22.0% of revenue) in the second
quarter of 2022. Adjusted gross profit of $23.0 million (25.6% of revenue) increased 37% as
compared to $16.8 million (23.1% of
revenue) a year ago. Both medication and technology-enabled
solutions gross margins increased vs. the year-ago period, driven
by increased scale and operating efficiency improvements.
- GAAP Net Loss – GAAP net loss from continuing
operations of $9.7 million decreased
as compared to a net loss of $12.7
million in the second quarter of 2022. GAAP net loss from
discontinued operations (net of tax) of $0.1
million compared to a net loss of $36.9 million in the second quarter of 2022. The
second quarter of 2022 included the PrescribeWellness, 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 $6.3 million (7.0%
of revenue) increased 207% vs. $2.1
million (2.8% of revenue) in the second quarter of 2022. The
improvement vs. the prior year was driven by the higher gross
profit noted above and disciplined cost management.
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
|
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
PACE
census1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medication
census
|
|
|
18,639
|
|
|
19,806
|
|
|
20,555
|
|
|
20,705
|
|
|
21,070
|
Technology-enabled
solutions census
|
|
|
50,763
|
|
|
52,230
|
|
|
53,430
|
|
|
54,135
|
|
|
55,804
|
Total PACE
census
|
|
|
50,763
|
|
|
52,230
|
|
|
53,430
|
|
|
54,135
|
|
|
55,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
PACE average revenue
per participant per month:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medication average
revenue per participant per month2
|
|
$
|
1,036
|
|
$
|
1,051
|
|
$
|
1,056
|
|
$
|
1,110
|
|
$
|
1,100
|
Technology-enabled
solutions revenue per participant per month3
|
|
|
91
|
|
|
91
|
|
|
92
|
|
|
98
|
|
|
99
|
Total PACE average
revenue per participant per month
|
|
|
459
|
|
|
474
|
|
|
494
|
|
|
523
|
|
|
515
|
PACE backlog as of June 30, 2023,
was valued at $87 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 $84 million as of
March 31, 2023.
Cancellation of Q2 Earnings Conference Call
In a separate press release, Tabula Rasa today announced that it
entered into a definitive merger agreement to be acquired by Nautic
Partners ("Nautic") for $10.50 in
cash per share and will combine with ExactCare Pharmacy
("ExactCare"), a portfolio company of Nautic. A copy of that press
release is accessible by visiting the Investor Relations section of
the Tabula Rasa corporate website at ir.tabularasahealthcare.com.
In light of the announced transaction, Tabula Rasa has cancelled
the earnings conference call previously scheduled for August 8. In addition, the Company is not
providing further financial guidance for 2023 as a result of the
pending transaction.
About Tabula Rasa HealthCare
Tabula Rasa HealthCare (TRHC) (NASDAQ: TRHC) enables
simplified and individualized care that improves the health of
those we serve. We offer comprehensive pharmacy services that
include personalized, precision medication management and delivery
as well as a suite of clinical and business management tools
that help health plans and at-risk provider groups optimize
utilization and improve patient health. For more information,
visit TRHC.
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
expense, severance costs, executive transition costs, settlement
costs, divestiture-related expense, transformation-related expense,
stock-based compensation expense, and net loss on divestiture of
businesses. TRHC considers business optimization expense to include
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 executive transition
costs to include nonrecurring costs related to the hiring and
onboarding of new named executive officers. TRHC considers
settlement costs to include amounts payable by TRHC or reductions
to amounts owed to TRHC as a result of a contractual settlement.
TRHC considers divestiture-related expense to include non-recurring
direct transaction costs. TRHC considers transformation-related
expense to include non-recurring advisory fees incurred to assess a
variety of strategic opportunities to increase shareholder value.
TRHC considers net loss on divestiture 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
expense, severance costs, executive transition costs,
divestiture-related expense, transformation-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 ("Securities Act"), and Section 21E of the
Securities Exchange Act of 1934, as amended ("Exchange Act"),
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, financial performance and the
proposed acquisition of TRHC by Locke Buyer, LLC, an affiliate of
Nautic, 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; (xix) the risk
that the proposed transaction may not be completed in a timely
manner or at all; (xx) the failure to receive, on a timely basis or
otherwise, the required approval of the proposed transaction by
TRHC's stockholders; (xxi) the possibility that any or all of the
various conditions to the consummation of the proposed transaction
may not be satisfied or waived, including the failure to receive
any required regulatory approvals from any applicable governmental
entities (or any conditions, limitations or restrictions placed on
such approvals); (xxii) the possibility that competing offers
or acquisition proposals for TRHC will be made; (xxiii) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the definitive transaction
agreement relating to the proposed transaction, including in
circumstances which would require TRHC to pay a termination fee;
(xxiv) the effect of the announcement or pendency of the proposed
transaction on TRHC ability to attract, motivate or retain key
executives and employees, its ability to maintain
relationships with its customers, vendors, service providers and
others with whom it does business, or its operating results and
business generally; (xxv) risks related to the proposed transaction
diverting management's attention from TRHC's ongoing business
operations; (xxvi) the risk of stockholder litigation in connection
with the proposed transaction, including resulting expense or
delay; and (xxvii) 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.
Filings with the SEC are available on the SEC's website at
http://www.sec.gov. 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.
Additional Information and Where to Find It
This press release may be deemed to be solicitation material in
respect of the proposed acquisition of TRHC by Locke Buyer, LLC, an
affiliate of Nautic. In connection with the proposed transaction,
TRHC intends to file relevant materials with the SEC, including
TRHC's proxy statement in preliminary and definitive form.
INVESTORS AND STOCKHOLDERS OF TRHC ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH THE SEC, INCLUDING TRHC'S PROXY STATEMENT (IF
AND WHEN AVAILABLE), BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security
holders are or will be able to obtain the documents (if and when
available) free of charge at the SEC's website at www.sec.gov, or
free of charge within the Investor Relations section of TRHC's
website http://ir.trhc.com or upon request from TRHC's Investor
Relations Department.
Participants in the Solicitation
TRHC and its directors, executive officers and other members of
management and employees, under SEC rules, may be deemed to be
"participants" in the solicitation of proxies from stockholders of
TRHC in favor of the proposed transaction. Information about TRHC's
directors and executive officers is set forth in TRHC's Proxy
Statement on Schedule 14A for its 2023 Annual Meeting of
Stockholders, which was filed with the SEC on April 28, 2023. To the extent holdings of
TRHC's securities by its directors or executive officers have
changed since the amounts set forth in such 2023 proxy statement,
such changes have been or will be reflected on Initial Statements
of Beneficial Ownership on Form 3 or Statements of Change in
Ownership on Form 4 filed with the SEC. Additional
information concerning the interests of TRHC's participants in the
solicitation, which may, in some cases, be different than those of
TRHC's stockholders generally, will be set forth in TRHC's proxy
statement relating to the proposed transaction when it becomes
available.
No Offer or Solicitation
This press release is not intended to and shall not constitute
an offer to buy or sell or the solicitation of an offer to buy or
sell any securities, or a solicitation of any vote or approval, nor
shall there be any offer, solicitation or sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made in the United States
absent registration under the Securities Act, or pursuant to an
exemption from, or in a transaction not subject to, such
registration requirements.
TABULA RASA HEALTHCARE, INC.
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
62,811
|
|
$
|
70,017
|
Restricted
cash
|
|
|
10,400
|
|
|
12,372
|
Accounts receivable,
net
|
|
|
18,610
|
|
|
19,252
|
Inventories
|
|
|
8,659
|
|
|
6,566
|
Prepaid
expenses
|
|
|
3,581
|
|
|
4,664
|
Client claims
receivable
|
|
|
16,415
|
|
|
16,377
|
Divestiture-related
note receivable
|
|
|
3,527
|
|
|
—
|
Other current
assets
|
|
|
22,678
|
|
|
18,187
|
Current assets of
discontinued operations
|
|
|
—
|
|
|
22,825
|
Total current
assets
|
|
|
146,681
|
|
|
170,260
|
Property and equipment,
net
|
|
|
9,369
|
|
|
9,158
|
Operating lease
right-of-use assets
|
|
|
10,149
|
|
|
10,483
|
Software development
costs, net
|
|
|
33,077
|
|
|
32,592
|
Goodwill
|
|
|
115,323
|
|
|
115,323
|
Intangible assets,
net
|
|
|
35,129
|
|
|
38,326
|
Contingent
consideration receivable
|
|
|
—
|
|
|
3,350
|
Other assets
|
|
|
6,209
|
|
|
4,657
|
Total assets
|
|
$
|
355,937
|
|
$
|
384,149
|
|
|
|
|
|
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current operating
lease liabilities
|
|
$
|
2,982
|
|
$
|
2,708
|
Accounts
payable
|
|
|
20,623
|
|
|
19,459
|
Client claims
payable
|
|
|
10,981
|
|
|
10,781
|
Accrued expenses and
other liabilities
|
|
|
59,105
|
|
|
55,745
|
Current liabilities of
discontinued operations
|
|
|
—
|
|
|
13,389
|
Total current
liabilities
|
|
|
93,691
|
|
|
102,082
|
Long-term debt, net of
discount
|
|
|
232,603
|
|
|
232,112
|
Long-term debt –
related party, net of discount
|
|
|
88,709
|
|
|
88,522
|
Noncurrent operating
lease liabilities
|
|
|
12,102
|
|
|
12,786
|
Deferred income tax
liability, net
|
|
|
1,507
|
|
|
1,380
|
Other long-term
liabilities
|
|
|
5,404
|
|
|
4,298
|
Total
liabilities
|
|
|
434,016
|
|
|
441,180
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
|
|
Common
stock
|
|
|
3
|
|
|
3
|
Treasury
stock
|
|
|
(4,049)
|
|
|
(3,391)
|
Additional paid-in
capital
|
|
|
359,573
|
|
|
354,214
|
Accumulated
deficit
|
|
|
(433,606)
|
|
|
(407,857)
|
Total stockholders'
deficit
|
|
|
(78,079)
|
|
|
(57,031)
|
Total liabilities and
stockholders' deficit
|
|
$
|
355,937
|
|
$
|
384,149
|
TABULA RASA HEALTHCARE, INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Medication
revenue
|
|
$
|
69,626
|
|
$
|
55,892
|
|
$
|
138,376
|
|
$
|
106,865
|
Technology-enabled
solutions revenue
|
|
|
20,410
|
|
|
16,705
|
|
|
39,937
|
|
|
32,842
|
Total
revenue
|
|
|
90,036
|
|
|
72,597
|
|
|
178,313
|
|
|
139,707
|
Cost of revenue,
exclusive of depreciation and amortization shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of medication
revenue
|
|
|
53,554
|
|
|
43,384
|
|
|
106,636
|
|
|
82,936
|
Cost of
technology-enabled solutions revenue
|
|
|
13,953
|
|
|
13,247
|
|
|
28,395
|
|
|
26,416
|
Total cost of revenue,
exclusive of depreciation and amortization
|
|
|
67,507
|
|
|
56,631
|
|
|
135,031
|
|
|
109,352
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,777
|
|
|
3,243
|
|
|
3,056
|
|
|
7,208
|
Sales and
marketing
|
|
|
2,732
|
|
|
2,172
|
|
|
5,185
|
|
|
4,821
|
General and
administrative
|
|
|
17,599
|
|
|
15,150
|
|
|
34,176
|
|
|
31,028
|
Change in fair value
of contingent consideration receivable
|
|
|
3,350
|
|
|
—
|
|
|
3,750
|
|
|
—
|
Long-lived asset
impairment charge
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,062
|
Depreciation and
amortization
|
|
|
6,103
|
|
|
5,489
|
|
|
12,303
|
|
|
11,231
|
Total operating
expenses
|
|
|
31,561
|
|
|
26,054
|
|
|
58,470
|
|
|
58,350
|
Loss from
operations
|
|
|
(9,032)
|
|
|
(10,088)
|
|
|
(15,188)
|
|
|
(27,995)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(1,144)
|
|
|
(2,444)
|
|
|
(2,409)
|
|
|
(4,713)
|
Other
income
|
|
|
566
|
|
|
—
|
|
|
1,018
|
|
|
—
|
Total other expense,
net
|
|
|
(578)
|
|
|
(2,444)
|
|
|
(1,391)
|
|
|
(4,713)
|
Loss from continuing
operations before income taxes
|
|
|
(9,610)
|
|
|
(12,532)
|
|
|
(16,579)
|
|
|
(32,708)
|
Income tax
expense
|
|
|
133
|
|
|
159
|
|
|
238
|
|
|
375
|
Net loss from
continuing operations
|
|
|
(9,743)
|
|
|
(12,691)
|
|
|
(16,817)
|
|
|
(33,083)
|
Net loss from
discontinued operations, net of tax
|
|
|
(108)
|
|
|
(36,919)
|
|
|
(8,932)
|
|
|
(44,720)
|
Net loss
|
|
$
|
(9,851)
|
|
$
|
(49,610)
|
|
$
|
(25,749)
|
|
$
|
(77,803)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share from
continuing operations, basic and diluted
|
|
$
|
(0.38)
|
|
$
|
(0.53)
|
|
$
|
(0.66)
|
|
$
|
(1.38)
|
Net loss per share from
discontinued operations, basic and diluted
|
|
|
—
|
|
|
(1.54)
|
|
|
(0.35)
|
|
|
(1.87)
|
Total net loss per
share, basic and diluted
|
|
$
|
(0.38)
|
|
$
|
(2.07)
|
|
$
|
(1.01)
|
|
$
|
(3.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, basic and diluted
|
|
|
25,422,032
|
|
|
23,959,726
|
|
|
25,333,137
|
|
|
23,913,050
|
TABULA RASA HEALTHCARE, INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(25,749)
|
|
$
|
(77,803)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
12,303
|
|
|
18,562
|
Amortization of
deferred financing costs and debt discount
|
|
|
678
|
|
|
939
|
Deferred
taxes
|
|
|
127
|
|
|
(368)
|
Stock-based
compensation
|
|
|
5,238
|
|
|
15,301
|
Change in fair value
of contingent consideration receivable
|
|
|
3,750
|
|
|
—
|
Impairment
charges
|
|
|
363
|
|
|
40,510
|
Net loss on
divestiture of businesses
|
|
|
4,888
|
|
|
—
|
Other noncash
items
|
|
|
292
|
|
|
(54)
|
Changes in operating
assets and liabilities, net of effect of divestitures:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
514
|
|
|
2,979
|
Inventories
|
|
|
(2,093)
|
|
|
(354)
|
Prepaid expenses and
other current assets
|
|
|
(3,829)
|
|
|
(7,916)
|
Client claims
receivables
|
|
|
(38)
|
|
|
(3,162)
|
Other
assets
|
|
|
3
|
|
|
(769)
|
Accounts
payable
|
|
|
(1,222)
|
|
|
9,295
|
Accrued expenses and
other liabilities
|
|
|
374
|
|
|
9,188
|
Client claims
payables
|
|
|
200
|
|
|
353
|
Other long-term
liabilities
|
|
|
554
|
|
|
2,139
|
Net cash (used in)
provided by operating activities
|
|
|
(3,647)
|
|
|
8,840
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,310)
|
|
|
(471)
|
Software development
costs
|
|
|
(7,187)
|
|
|
(17,870)
|
Proceeds from
divestiture of businesses
|
|
|
3,384
|
|
|
—
|
Net cash used in
investing activities
|
|
|
(5,113)
|
|
|
(18,341)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
|
|
219
|
|
|
60
|
Payments for employee
taxes for shares withheld
|
|
|
(655)
|
|
|
—
|
Payments for debt
financing costs
|
|
|
—
|
|
|
(350)
|
Borrowings on line of
credit
|
|
|
—
|
|
|
27,700
|
Net cash (used in)
provided by financing activities
|
|
|
(436)
|
|
|
27,410
|
|
|
|
|
|
|
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
(9,196)
|
|
|
17,909
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
82,407
|
|
|
15,706
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
|
73,211
|
|
$
|
33,615
|
TABULA RASA HEALTHCARE, INC.
|
UNAUDITED
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
|
(In
thousands)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
Net Loss to Adjusted EBITDA from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,851)
|
|
$
|
(49,610)
|
|
$
|
(25,749)
|
|
$
|
(77,803)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,144
|
|
|
2,444
|
|
|
2,409
|
|
|
4,713
|
Income tax
expense
|
|
|
133
|
|
|
159
|
|
|
238
|
|
|
375
|
Depreciation and
amortization
|
|
|
6,103
|
|
|
5,489
|
|
|
12,303
|
|
|
11,231
|
Change in fair value
of contingent consideration receivable
|
|
|
3,350
|
|
|
—
|
|
|
3,750
|
|
|
—
|
Impairment
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,062
|
Business optimization
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
787
|
Severance
costs
|
|
|
385
|
|
|
—
|
|
|
776
|
|
|
575
|
Executive
transition
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
150
|
Divestiture-related
expense
|
|
|
352
|
|
|
1,414
|
|
|
1,368
|
|
|
1,534
|
Transformation-related
expense
|
|
|
1,815
|
|
|
—
|
|
|
1,815
|
|
|
—
|
Stock-based
compensation expense
|
|
|
2,770
|
|
|
5,092
|
|
|
5,200
|
|
|
12,795
|
Loss from discontinued
operations
|
|
|
108
|
|
|
36,919
|
|
|
8,932
|
|
|
44,720
|
Adjusted EBITDA from
continuing operations
|
|
$
|
6,309
|
|
$
|
2,057
|
|
$
|
11,042
|
|
$
|
3,139
|
Adjusted EBITDA (loss)
from discontinued operations
|
|
|
—
|
|
|
1,117
|
|
|
(2,676)
|
|
|
2,557
|
Total Adjusted
EBITDA
|
|
$
|
6,309
|
|
$
|
3,174
|
|
$
|
8,366
|
|
$
|
5,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2023
|
|
2022
|
|
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
|
|
$
|
(108)
|
|
$
|
(36,919)
|
|
$
|
(8,932)
|
|
$
|
(44,720)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
|
|
(44)
|
|
|
(686)
|
|
|
10
|
|
|
(568)
|
Depreciation and
amortization
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,331
|
Impairment
charges
|
|
|
—
|
|
|
35,608
|
|
|
363
|
|
|
36,448
|
Net loss on
divestiture of businesses
|
|
|
152
|
|
|
—
|
|
|
4,888
|
|
|
—
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
|
957
|
|
|
—
|
Settlement
|
|
|
—
|
|
|
1,448
|
|
|
—
|
|
|
1,448
|
Divestiture-related
expense
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
112
|
Stock-based
compensation expense
|
|
|
—
|
|
|
1,600
|
|
|
38
|
|
|
2,506
|
Adjusted EBITDA (loss)
from discontinued operations
|
|
$
|
—
|
|
$
|
1,117
|
|
$
|
(2,676)
|
|
$
|
2,557
|
TABULA RASA HEALTHCARE, INC.
|
UNAUDITED
RECONCILIATION OF STATEMENT OF OPERATIONS TO NON-GAAP
MEASURES
|
(In
thousands)
|
|
|
|
Three Months Ended
June 30, 2023
|
|
|
Cost of
Revenue
|
|
Gross
Profit
|
|
Gross
Margin
Percentage
|
|
Operating
Expenses
|
|
Operating
Income
(Loss)
|
|
Net
Income
(Loss)
|
Reconciliation of
statement of operations to adjusted
amounts from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of operations
amounts
|
|
$
|
67,507
|
|
$
|
22,529
|
|
25.0 %
|
|
$
|
31,561
|
|
$
|
(9,032)
|
|
$
|
(9,743)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,598)
|
|
|
1,598
|
|
|
1,598
|
Change in fair value of
contingent consideration receivable
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(3,350)
|
|
|
3,350
|
|
|
3,350
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(385)
|
|
|
385
|
|
|
385
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(352)
|
|
|
352
|
|
|
352
|
Transformation-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,815)
|
|
|
1,815
|
|
|
1,815
|
Stock-based
compensation expense
|
|
|
(505)
|
|
|
505
|
|
0.6 %
|
|
|
(2,265)
|
|
|
2,770
|
|
|
2,770
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(129)
|
Adjusted
amounts
|
|
$
|
67,002
|
|
$
|
23,034
|
|
25.6 %
|
|
$
|
21,796
|
|
$
|
1,238
|
|
$
|
738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 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
|
|
$
|
56,631
|
|
$
|
15,966
|
|
22.0 %
|
|
$
|
26,054
|
|
$
|
(10,088)
|
|
$
|
(12,691)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,695)
|
|
|
1,695
|
|
|
1,695
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
471
|
Executive
transition
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(150)
|
|
|
150
|
|
|
150
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,414)
|
|
|
1,414
|
|
|
1,414
|
Stock-based
compensation expense
|
|
|
(793)
|
|
|
793
|
|
1.1 %
|
|
|
(4,299)
|
|
|
5,092
|
|
|
5,092
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,126
|
Adjusted
amounts
|
|
$
|
55,838
|
|
$
|
16,759
|
|
23.1 %
|
|
$
|
18,496
|
|
$
|
(1,737)
|
|
$
|
(2,743)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2023
|
|
|
Cost of
Revenue
|
|
Gross
Profit
|
|
Gross
Margin
Percentage
|
|
Operating
Expenses
|
|
Operating
Income
(Loss)
|
|
Net
Income
(Loss)
|
Reconciliation of
statement of operations to adjusted
amounts from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of operations
amounts
|
|
$
|
135,031
|
|
$
|
43,282
|
|
24.3 %
|
|
$
|
58,470
|
|
$
|
(15,188)
|
|
$
|
(16,817)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(3,197)
|
|
|
3,197
|
|
|
3,197
|
Change in fair value of
contingent consideration receivable
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(3,750)
|
|
|
3,750
|
|
|
3,750
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
678
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(776)
|
|
|
776
|
|
|
776
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,368)
|
|
|
1,368
|
|
|
1,368
|
Transformation-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,815)
|
|
|
1,815
|
|
|
1,815
|
Stock-based
compensation expense
|
|
|
(984)
|
|
|
984
|
|
0.5 %
|
|
|
(4,216)
|
|
|
5,200
|
|
|
5,200
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Adjusted
amounts
|
|
$
|
134,047
|
|
$
|
44,266
|
|
24.8 %
|
|
$
|
43,348
|
|
$
|
918
|
|
$
|
151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 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
|
|
$
|
109,352
|
|
$
|
30,355
|
|
21.7 %
|
|
$
|
58,350
|
|
$
|
(27,995)
|
|
$
|
(33,083)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(3,389)
|
|
|
3,389
|
|
|
3,389
|
Impairment
charges
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(4,062)
|
|
|
4,062
|
|
|
4,062
|
Amortization of debt
discount and issuance costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
939
|
Business optimization
expense
|
|
|
(433)
|
|
|
433
|
|
0.3 %
|
|
|
(354)
|
|
|
787
|
|
|
787
|
Severance
costs
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(575)
|
|
|
575
|
|
|
575
|
Executive
transition
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(150)
|
|
|
150
|
|
|
150
|
Divestiture-related
expense
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,534)
|
|
|
1,534
|
|
|
1,534
|
Stock-based
compensation expense
|
|
|
(1,918)
|
|
|
1,918
|
|
1.4 %
|
|
|
(10,877)
|
|
|
12,795
|
|
|
12,795
|
Impact to income
taxes
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,585
|
Adjusted
amounts
|
|
$
|
107,001
|
|
$
|
32,706
|
|
23.4 %
|
|
$
|
37,409
|
|
$
|
(4,703)
|
|
$
|
(6,267)
|
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.
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multimedia:https://www.prnewswire.com/news-releases/tabula-rasa-healthcare-reports-second-quarter-2023-financial-results-301894280.html
SOURCE Tabula Rasa HealthCare, Inc.