InnovAge Holding Corp. (NASDAQ:INNV) Q4 2023 Earnings Call Transcript September 12, 2023 5:00 PM ET Company Participants Ryan Kubota - Director, IR Patrick Blair - President and CEO Ben Adams - CFO Rich Feifer - Chief Medical Officer Conference Call Participants Jamie Perse - Goldman Sachs Jason Cassorla - Citi Madeline Mollman - William Blair Operator Hello, and welcome to InnovAge Fourth Quarter Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speak ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 10-K _______________________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES InnovAge Holding Corp. (Exact name of registrant as specified in its charter) ___________________________ ...

InnovAge Holding Corp. (NASDAQ:INNV) Q3 2023 Results Conference Call May 9, 2023 5:00 PM ET Company Participants Ryan Kubota - Director of Investor Relations Patrick Blair - President and CEO Barbara Gutierrez - CFO Rich Feifer - Chief Medical Officer Conference Call Participants Lisa Gill - JPMorgan Operator Good day, and thank you for standing by, and welcome to the InnovAge Third Quarter 2023 Earnings Conference Call [Operator Instructions]. Please be advised that today's conference is being recorded. I ...

Table of Contents (844) 803-8745 (Registrant's telephone number, including area code) _______________________________________________________ Securities registered pursuant to Section 12(b) of the Securities Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, $0.001 par value | INNV | The Nasdaq Stock Market LLC (Nasdaq Global | | | | Select Market) | Indicate by check mark whether the registrant: (1) has filed all reports required ...

InnovAge Holding Corp. (NASDAQ:INNV) Q2 2023 Earnings Conference Call February 7, 2023 5:00 PM ET Company Participants Ryan Kubota - Investor Relations Patrick Blair - President and Chief Executive Officer Barbara Gutierrez - Chief Financial Officer Rich Feifer - Chief Medical Officer Conference Call Participants Jason Cassorla - Citi Lisa Gill - J.P. Morgan Jamie Perse - Goldman Sachs Madeline Mollman - William Blair Operator Hello, and thank you for standing by. Welcome to InnovAge Second Quarter 2023 Ear ...

Financial Performance - Total revenues for the three months ended December 31, 2022, were $167.456 million, a decrease of 4.9% compared to $175.350 million for the same period in 2021[16]. - Capitation revenue for the six months ended December 31, 2022, was $338.071 million, down from $347.518 million in the prior year, reflecting a decline of 2.1%[16]. - Net loss attributable to InnovAge Holding Corp. for the three months ended December 31, 2022, was $9.793 million, compared to a net income of $1.323 million for the same period in 2021[16]. - For the six months ended December 31, 2022, InnovAge reported a net loss of $24,247,000 compared to a net income of $8,730,000 for the same period in 2021, indicating a significant decline in profitability[20]. - Total revenues for the six months ended December 31, 2022, were $338.674 million, a decrease from $348.420 million in the same period of 2021, representing a decline of approximately 2.1%[113]. - The Center-Level Contribution Margin for the six months ended December 31, 2022, was $43.997 million, down from $83.736 million in the same period of 2021, indicating a decrease of about 47.5%[113]. - The net loss margin for the six months ended December 31, 2022 was (7.2)%, compared to a net income margin of 2.5% for the same period in 2021[181]. Assets and Liabilities - Total current assets decreased to $199.489 million as of December 31, 2022, from $240.956 million as of June 30, 2022, representing a decline of 17.2%[15]. - Total liabilities increased to $214.340 million as of December 31, 2022, compared to $201.852 million as of June 30, 2022, indicating a rise of 6.5%[15]. - Cash and cash equivalents decreased to $99.460 million as of December 31, 2022, from $184.429 million as of June 30, 2022, a decline of 46.0%[15]. - The company reported total lease liabilities of $36.364 million as of December 31, 2022, with operating lease liabilities of $23.468 million and finance lease liabilities of $12.896 million[75]. - The company had long-term debt totaling $71.681 million as of December 31, 2022, which included a term loan facility of $69.375 million[77]. Cash Flow and Investments - InnovAge's net cash used in operating activities for the six months ended December 31, 2022, was $21,990,000, a decrease from $31,577,000 provided in the same period in 2021[20]. - The company reported a net cash used by operating activities of $(21,990) thousand for the six months ended December 31, 2022, compared to a net cash provided of $31,577 thousand in the prior year, reflecting a change of $(53,567) thousand[200]. - The total investments held by the company as of December 31, 2022, amounted to $5.493 million[50]. - The company recorded total cash outflow from investing activities of $59,632,000 for the six months ended December 31, 2022, compared to $13,681,000 for the same period in 2021[20]. Operational Challenges - The company anticipates challenges in increasing enrollment and capacity due to ongoing audits and sanctions affecting its Sacramento center[10]. - Enrollment sanctions in Sacramento, California, and Colorado limited the company's ability to grow its participant census and impacted Center-level Contribution Margin in fiscal 2022 and the first half of fiscal 2023[131]. - The company expects elevated operating expenses to continue for the remainder of fiscal 2023 due to ongoing inflation and labor market pressures[122]. - The company has committed to pausing steps regarding de novo centers until remediation of audit deficiencies is completed[141]. Participant and Service Metrics - As of December 31, 2022, InnovAge served approximately 6,460 PACE participants, making it the largest PACE provider in the U.S. based on participants served[24]. - The average risk adjustment factor (RAF) score for participants is 2.31, indicating a higher acuity population compared to Medicare Advantage participants[1]. - The company achieved a 79% participant satisfaction rating as of October 1, 2022, with an average participant tenure of 3.2 years as of December 31, 2022[131]. - External provider costs represented approximately 87% of the company's revenue in the six months ended December 31, 2022[131]. Legal and Regulatory Matters - The Company received a civil investigative demand from the DOJ regarding its PACE programs, which is ongoing and the outcome is currently unpredictable[87]. - The company is currently involved in legal proceedings that may have a material adverse effect on its business, financial condition, or cash flows, but the outcomes are unpredictable[89]. Future Outlook and Strategic Plans - The company plans to continue investing in its centers and expects expenses to increase in absolute dollars due to compliance and regulatory costs[133]. - The company intends to execute tuck-in acquisitions once restrictions on opening new centers are lifted[131]. - The company expects to incur non-recurring implementation costs related to transitioning to a new EMR vendor over the next six months, with ongoing costs through 2026[192]. - The company may seek additional equity or debt financing in the future, depending on capital requirements[194].

Financial Data and Key Metrics Changes - The company reported revenue of $171.2 million, a sequential decline of approximately 1% compared to the previous quarter, driven by census attrition in Colorado and Sacramento, which represent about half of the total census [40] - The center-level contribution margin was $21.4 million, with a contribution margin ratio of 12.5%, compared to $23.6 million in the previous quarter [40][69] - Net loss was $13.7 million, compared to net income of $7.6 million in the same quarter last year, resulting in a net loss per share of $0.10 [74] Business Line Data and Key Metrics Changes - The company served approximately 6,540 participants across 18 centers, reflecting a 6.4% decrease year-over-year and a 1.8% decrease sequentially [59] - External provider costs increased by 6.9% compared to the first quarter of the previous year, primarily due to increased cost per participant [63] - The cost of care, excluding depreciation and amortization, was $53.6 million, which is 31.5% higher than the same quarter last year [66] Market Data and Key Metrics Changes - The combined capitation rate increase for Medicare and Medicaid in the first quarter compared to the prior year was 4.9% [63] - The company experienced a decrease in member months by 5.6% year-over-year, attributed to the enrollment freeze in Colorado [59][60] - Average daily center attendance improved by an estimated 10% through September [37] Company Strategy and Development Direction - The company is focused on strengthening operations to earn the right to be released from sanctions and to position itself for future growth [10][11] - Plans to fuel new participant growth include rebuilding momentum in currently sanctioned markets and accelerating growth in others [12] - Significant investments have been made in compliance processes and technology, including the implementation of EPIC, aimed at enhancing operational efficiency [30][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's next chapter, emphasizing the importance of compliance and transformational initiatives [55][56] - The company is preparing for a post-sanction environment and expects to resume growth once sanctions are lifted [83] - Management highlighted the challenges posed by the current labor market and the need to convert temporary labor to permanent positions [89] Other Important Information - The company has invested nearly $30 million in the build-out of two new centers in Florida, which will serve approximately 2,000 new participants at maturity [50] - The company has made significant efforts to reengineer enrollment processes, reducing the time from inquiry to enrollment by approximately 36% year-over-year [53] Q&A Session Summary Question: About additional investments at the center level and potential offsets - Management discussed investments in staffing and compliance resources, including the implementation of EPIC to improve efficiency [87][88] Question: Visibility on temporary versus permanent labor costs - Management indicated that the conversion of temporary labor to permanent positions is dependent on the labor market, but progress is being made [89] Question: Patient mix and cost differentials between legacy and newer patients - Management estimated that newer participants have costs approximately 20% lower than legacy patients, with COVID-affected participants having costs about 88% higher on average [93][95] Question: Status of Florida De Novo centers - Management stated that the facilities are nearly complete and progress on sanctions will be crucial to restart the application process [98] Question: Competitive positioning post-audit remediation - Management expressed confidence that improvements from audit remediation will enhance competitive positioning and operational efficiency [104] Question: Managing costs amid flu season - Management noted sporadic flu cases in the population but emphasized high vaccination rates among participants and staff as a protective measure [112][113]

InnovAge Holding Corp. (NASDAQ:INNV) Q4 2022 Results Conference Call September 13, 2022 5:00 PM ET Company Participants Ryan Kubota - IR Patrick Blair - President and CEO Barbara Gutierrez - CFO Rich Feifer - Chief Medical Officer Conference Call Participants Jason Cassorla - Citigroup Sarah James - Barclays Jamie Perse - Goldman Sachs Madeline Mollman - William Blair Operator Good day and thank you for standing by. Welcome to the InnovAge Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40159 InnovAge Holding Corp. (Exact name of registrant as specified in its charter) Delaware 81-0710819 (State or Othe ...

InnovAge Holding Corp. (NASDAQ:INNV) Q3 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Ryan Kubota - Director, Investor Relations Patrick Blair - President and Chief Executive Officer Barbara Gutierrez - Chief Financial Officer Melissa Welch - Chief Medical Officer Conference Call Participants Jeff Garro - Piper Sandler Sarah James - Barclays Jamie Perse - Goldman Sachs Matt Larew - William Blair Andrew Lothian - JPMorgan Operator Good day and thank you for standing by and welcom ...