Financial Data and Key Metrics Changes - The company reported revenue of $209 million for the quarter, a 10.6% increase compared to $188.9 million in the second quarter of fiscal year 2024 [14][36] - Adjusted EBITDA was $5.9 million for the quarter, compared to $6.9 million in the second quarter of fiscal year 2024, with an adjusted EBITDA margin of 2.8% [48] - The net loss was $13.5 million, compared to a net loss of $3.8 million in the second quarter of fiscal year 2024 [46] Business Line Data and Key Metrics Changes - Center level contribution margin was $37.1 million for the quarter, representing a 17.7% margin, which is a 90 basis point increase compared to the first quarter of fiscal year 2025 [15][44] - Census grew to approximately 7,480 participants, reflecting over 10% year-over-year growth compared to the second quarter of fiscal 2024 [20][36] - External provider costs increased by 6.8% compared to the second quarter of fiscal year 2024, driven by an increase in member months [39] Market Data and Key Metrics Changes - The company experienced Medicaid rate increases in California and Pennsylvania for 2025, which positively impacted revenue [11][52] - Approximately 50 new PACE centers have opened nationwide over the past three years, indicating a 16% increase from roughly 300 centers operating in January 2022 [13] Company Strategy and Development Direction - The company is focused on transformation over the next 18 months, emphasizing a technology-first mindset to improve operational efficiency and participant satisfaction [19][61] - The acquisition of a small pharmacy in Denver is aimed at enhancing compliance, improving participant outcomes, and reducing costs [28] - The company aims to build a differentiated and scalable platform in the PACE market, enhancing its competitive position for future M&A opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable census growth while managing financial variability [23] - The company is optimistic about the impact of new retention-focused efforts during the Medicare open enrollment period [52] - Management acknowledged ongoing enrollment processing delays in California but stated that these have not materially impacted financial results [38] Other Important Information - The company reaffirmed its fiscal year 2025 guidance, projecting total revenue in the range of $815 million to $865 million [51] - The company recorded an impairment of approximately $8.5 million related to halting development on a previously planned de novo center in Louisville, Kentucky [47] Q&A Session Summary Question: What does the transformation over the next 18 months entail? - The transformation involves reimagining operational processes with a technology-first mindset to enhance productivity and efficiency [59][61] Question: Can you provide details on the funding model for revenue per member per month? - The funding model consists of approximately $3,000 from Medicare Part C, $1,000 from Part D, and $5,000 from Medicaid, with state and federal contributions varying [67] Question: How does the company plan to address the challenges in the Medicare Advantage environment? - The company has proactively invested in marketing to educate prospects on the unique services offered by PACE, which has led to improved retention and enrollment [78] Question: What drove the decision to impair the Louisville facility? - The decision was made due to the inability to reenter the market after sanctions and the lack of viable paths for competition in Louisville [81] Question: How will the new pharmacy acquisition impact costs and operations? - The acquisition is expected to improve integration between care teams and pharmacy operations, enhancing service quality and potentially reducing costs over time [96][106]

Participant and Service Growth - As of December 31, 2024, InnovAge served approximately 7,480 PACE participants across 20 centers in six states[130]. - The company operated 20 PACE centers as of December 31, 2024, an increase from 18 centers in the previous year[179]. - Total member months increased to 43,580 for the six months ended December 31, 2024, compared to 39,670 in the same period of 2023[179]. - InnovAge has acquired and integrated four PACE organizations since FY2019, expanding into one new state and five new markets[139]. Financial Performance - Total revenues for Q4 2024 reached $209.0 million, up $20.1 million or 10.6% from $188.9 million in Q4 2023[153]. - Capitation revenue for Q4 2024 was $208.7 million, an increase of $20.1 million or 10.7% compared to Q4 2023[153]. - For the six months ended December 31, 2024, total revenues increased to $414.1 million, up from $371.4 million for the same period in 2023, representing an increase of 11.5%[184]. - Capitation revenue for the six months ended December 31, 2024, was $413.5 million, compared to $370.7 million for the same period in 2023, reflecting an increase of 11.5%[184]. Operating Expenses - Operating expenses increased by $30.9 million, or 16.2%, in Q2 FY2025 compared to Q2 FY2024, primarily due to census growth and increased care costs[131]. - Total operating expenses for Q4 2024 were $221.6 million, an increase of $30.9 million or 16.2% compared to $190.7 million in Q4 2023[155]. - Corporate, general and administrative expenses increased by $2.9 million, or 11.3%, to $28.1 million for the three months ended December 31, 2024, compared to $25.2 million for the same period in 2023[162]. - For the six months ended December 31, 2024, corporate, general and administrative expenses rose by $1.4 million, or 2.7%, to $55.6 million from $54.2 million in the prior year[163]. Profitability and Loss - Net loss attributable to InnovAge Holding Corp. for Q4 2024 was $13.2 million, compared to a net loss of $3.4 million in Q4 2023[151]. - Net loss for the six months ended December 31, 2024 was $19.2 million, compared to a net loss of $14.8 million in the same period of 2023[179]. - The net loss for the six months ended December 31, 2024, was $19.2 million, compared to a net loss of $14.8 million for the same period in 2023, representing a year-over-year increase of 29.9%[186]. Cash Flow and Debt - As of December 31, 2024, cash and cash equivalents were $46.1 million, a decrease of $10.8 million from June 30, 2024[192]. - Long-term debt outstanding as of December 31, 2024, was $64.1 million[194]. - The Company entered into a credit agreement with a senior secured term loan of $75.0 million and a revolving credit facility with a maximum borrowing capacity of $100.0 million[196]. - As of December 31, 2024, total outstanding debt was $61.9 million under the Term Loan Facility and $2.2 million under the convertible term loan[209]. Cost Management and Future Outlook - InnovAge completed the acquisition of pharmacy assets from Tabula Rasa HealthCare Group, Inc. for $4.8 million on January 2, 2025, to support growth and improve pharmacy cost management[139]. - The company expects elevated operating expenses to continue through FY2025 but anticipates that clinical and operational value initiatives will help offset rising care costs[131]. - The company plans to invest in its centers and value-based care model to support long-term growth, expecting expenses to increase in absolute dollars[139]. - The Company does not anticipate paying any cash dividends in the foreseeable future, intending to retain available funds for business development and debt repayment[198].

Revenue Performance - Total revenue for the fiscal second quarter 2025 was $209.0 million, an increase of approximately 10.6% compared to $188.9 million in the same quarter of fiscal year 2024[4] - Total revenues for the three months ended December 31, 2024, reached $208.999 million, compared to $188.898 million in the same period of 2023, representing a year-over-year increase of about 10.6%[36] - Capitation revenue for the six months ended December 31, 2024, rose to $413,474,000, compared to $370,734,000 for the same period in 2023, reflecting an increase of 11.5%[21] - Capitation revenue for the three months ended December 31, 2024, was $208.674 million, an increase from $188.561 million in the same period of 2023, indicating a growth of approximately 10.4%[36] Loss and Margin Analysis - Loss Before Income Taxes was $13.5 million, an increase of approximately 261.0% compared to a loss of $3.7 million in the second quarter of fiscal year 2024[4] - Net loss was $13.5 million, compared to a net loss of $3.8 million in the second quarter of fiscal year 2024, resulting in a net loss margin of 6.5%[6] - Net loss attributable to InnovAge Holding Corp. was $13.2 million, or a loss of $0.10 per share, compared to a loss of $3.4 million, or $0.03 per share in the same quarter of the previous year[6] - Net loss for the three months ended December 31, 2024, was $13.491 million, compared to a net loss of $3.821 million for the same period in 2023, reflecting an increase in net loss margin from (2.0)% to (6.4)%[29] Contribution Margin and EBITDA - Center-level Contribution Margin was $37.1 million, an increase of 10.3% compared to $33.6 million in the second quarter of fiscal year 2024[6] - Adjusted EBITDA was $5.9 million, a decrease of $1.0 million compared to $6.9 million in the second quarter of fiscal year 2024[6] - Adjusted EBITDA for the six months ended December 31, 2024, was $12.346 million, up from $8.280 million in the same period of 2023, resulting in an adjusted EBITDA margin increase from 2.2% to 3.0%[29] - Adjusted EBITDA margin for the second quarter was 2.8%, a decrease of 0.9 percentage points compared to 3.7% in the second quarter of fiscal year 2024[6] Cash and Investments - The company ended the second quarter with $46.1 million in cash and cash equivalents and $40.8 million in short-term investments, with $78.3 million in debt[6] - Cash and cash equivalents at the end of the period were $46,091,000, a decrease from $56,960,000 at the beginning of the period[23] - The company reported a net cash used in operating activities of $763,000 for the six months ended December 31, 2024, compared to $42,279,000 for the same period in 2023[23] Assets and Liabilities - Total current assets decreased to $167,952,000 as of December 31, 2024, down from $173,142,000 as of June 30, 2024[19] - Total liabilities as of December 31, 2024, were $246,831,000, slightly down from $247,853,000 as of June 30, 2024[19] Operational Metrics - The census of participants increased to approximately 7,480 compared to 6,780 participants in the second quarter of fiscal year 2024[6] - The weighted-average number of common shares outstanding for the three months ended December 31, 2024, was 135,439,668[21] Impairments and Costs - The company incurred $8,495,000 in impairment of right-of-use asset and construction in progress for the three months ended December 31, 2024[21] - Litigation costs and settlements for the three months ended December 31, 2024, amounted to $1.405 million, significantly higher than $198,000 in the same period of 2023[29] - M&A diligence, transaction, and integration costs for the three months ended December 31, 2024, were $1.275 million, compared to $284,000 in the same period of 2023, showing a substantial increase[29] - The company reported an impairment of right-of-use asset and construction in progress of $8.495 million for the six months ended December 31, 2024, with no such impairment reported in the same period of 2023[29] Guidance - Full fiscal year 2025 total revenue guidance is between $815 million and $865 million[7]

DENVER, Feb. 04, 2025 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal second quarter ended December 31, 2024. “Our second quarter results reflect the meaningful progress we are making to strengthen the business, drive top-line growth and margin ...

DENVER, Jan. 21, 2025 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, and predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced it will release its 2025 fiscal second quarter financial results on Tuesday, February 4, 2025, after market close. In conjunction, the Company will host a conference call to review the results at 5 p.m. ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were reported at $205.1 million, a 12% increase from $182.5 million in Q1 2024, and adjusted EBITDA increased approximately 500% to $6.5 million from $1.3 million in the same period [9][44][45] - Compared to Q4 2024, revenues increased by approximately 3% and adjusted EBITDA increased by approximately 25% [10] - The center level contribution margin was $34.5 million, representing 16.8% of revenue, an increase from 15.3% in Q1 2024 [39][40] Business Line Data and Key Metrics Changes - Census increased to approximately 7,210 participants, reflecting a year-over-year growth of 10% compared to Q1 2024 [16][32] - Member months totaled 21,380, marking a 9.4% increase year-over-year [32] - External provider costs were $107.2 million, a 7.9% increase compared to Q1 2024, driven by an increase in member months [35] Market Data and Key Metrics Changes - The company is seeing improved application processing times in key markets, indicating progress in enrollment despite previous delays [19] - The Medicare annual enrollment period is expected to bring seasonal variations, but the company is optimistic about its competitive position this year [20] Company Strategy and Development Direction - The company is focused on operational excellence and enhancing margins through clinical and operational value initiatives [23][30] - A new President and Chief Operating Officer, Michael Scarbrough, has joined the company to help scale operations and improve cost containment [11][79] - The company is committed to strong administrative cost controls and is investing in tools and technologies to improve participant care [28][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand for services and noted progress in reducing enrollment processing bottlenecks [54][55] - The company reaffirmed its fiscal 2025 guidance, expecting ending census between 7,300 and 7,750 participants and total revenue in the range of $815 million to $865 million [50][51] Other Important Information - Employee engagement scores reached 79%, and the Net Promoter Score for participant satisfaction was 56, indicating strong performance in employee and participant engagement [13][14] - The company reported a net loss of $5.7 million, an improvement from a net loss of $11 million in Q1 2024 [44] Q&A Session Summary Question: Enrollment trends in Colorado and Sacramento - Management noted strong demand across all markets, with some progress in reducing enrollment processing bottlenecks in Colorado and California [54][55] Question: Assessment of risk pool rebalancing and de novo losses - Management indicated that changes in the risk pool will take time to reflect in margins, and Florida centers are tracking as expected [60][61] Question: Guidance assumptions for the year - Management confirmed satisfaction with current guidance, expecting linear progression in growth with slightly slower growth in Q3 [66][67] Question: Factors driving employee and member engagement improvements - Management emphasized the importance of clear objectives and recognition of employee efforts as key drivers of engagement [69][70] Question: Progress on clinical and operational value initiatives - Management highlighted successful initiatives focused on inpatient reduction and operational improvements, with ongoing efforts to enhance service delivery [75][78]

InnovAge Holding Corp. (INNV) came out with a quarterly loss of $0.04 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced a loss of $0.01, delivering a surprise of 50%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.InnovAge, which belongs to the Zacks M ...

DENVER, Nov. 05, 2024 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal first quarter ended September 30, 2024. “Our first quarter results reflect our continued momentum and the execution of our strategy to deliver high quality care, while contin ...

DENVER, Nov. 04, 2024 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), appoints Michael Scarbrough as its new President and Chief Operating Officer and Maria Lozzano as President, Pharmacy Services, effective November 4th. Mr. Scarbrough joins InnovAge’s executive leadership team as Christine Bent steps down from ...

InnovAge Holding Corp. (INNV) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...