Financial Data and Key Metrics Changes - The company reported revenue of $189 million for Q2 2024, a 3.5% increase compared to Q1 2024 [7] - Adjusted EBITDA improved significantly to $7.8 million from approximately $2.2 million in the previous quarter [7][42] - The net loss was $3.8 million, an improvement from a net loss of $11 million in Q1 2024 [42] - Center-level contribution margin increased to 17.8% from 15.3% in the previous quarter [40] Business Line Data and Key Metrics Changes - Participant net enrollment growth was solid at 195 for the quarter, contributing to a total census of 6,780, which is a 3% increase quarter-over-quarter [7][37] - The company effectively managed non-center costs, resulting in a decrease in general and administrative expenses as a percentage of revenue from 15.9% to 13.4% [9] Market Data and Key Metrics Changes - The company is now operational in six states: Colorado, California, Pennsylvania, New Mexico, Virginia, and Florida, with the recent opening of a new center in Tampa [10] - The total sales qualified leads increased by approximately 11% from the prior quarter, indicating strong demand for integrated solutions [20] Company Strategy and Development Direction - The company is focused on responsible growth and restoring operating margins lost during the regulatory sanction period [6] - The acquisition of ConcertoCare added two new centers in Southern California, facilitating faster expansion compared to building new centers from scratch [25][26] - The company aims to achieve a center-level contribution margin above 20% and is focused on improving quality and compliance [91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in addressing regulatory issues and emphasized the importance of compliance as a guiding principle [13][18] - The company anticipates modest seasonality related to the Medicare annual enrollment period, which may impact growth [20] - Management remains optimistic about achieving financial goals for the second half of fiscal 2024 and creating a path for successful fiscal 2025 [11] Other Important Information - The company completed the implementation of the new Epic EMR across all locations, which is expected to enhance operational productivity and efficiency [33] - The company is hosting its first Investor Day on February 27, 2024, to provide more details on its journey and future plans [34][97] Q&A Session Summary Question: Can you help size the Medicare true-up noted in the quarter? - Management confirmed that the Medicare true-up was a meaningful increase related to a final adjustment for 2022, which provided a boost going into the back half of the year [49][51] Question: How should we think about the Medicaid rate development backdrop? - Management indicated that it is still early to determine Medicaid rates for the next fiscal year, with unexpected reductions in California impacting the back half of the year [62] Question: Can you provide details on the de novo ramp expectations? - Management stated that it typically takes about six quarters for de novo facilities to reach a positive center-level contribution margin, emphasizing careful monitoring of cash flow impact [70] Question: What can be done to speed up enrollment processing delays? - Management engages with families to set expectations and keep them informed about administrative delays, although some delays are beyond their control [75][78] Question: What changes were made in the new marketing campaign? - The new campaign aims to broaden the appeal of PACE services to a wider segment of the senior population and directly target family members involved in decision-making [80][81]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Co ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ C ...

Financial Data and Key Metrics Changes - For fiscal year 2023, total revenue was $688.1 million, a decline of approximately 1.5% compared to fiscal year 2022 [6][28] - The center-level contribution margin for the year was $101.3 million, representing a 14.7% margin, down from 19.4% in the prior year [38] - Consolidated adjusted EBITDA was negative $1.3 million for the fiscal year, compared to positive $34.3 million in the prior year [41] - In Q4 2023, revenue was $176.9 million, a sequential improvement of approximately 2.5% compared to Q3 [8][28] - The center-level contribution margin for Q4 was $28.5 million, representing a 16.1% margin [38] Business Line Data and Key Metrics Changes - The second half of fiscal year 2023 saw a center-level contribution margin of $57.3 million, an increase of approximately 30% compared to the first half [9] - The company ended fiscal year 2023 with approximately 6,400 participants, a decline of 3.9% compared to the prior year [34] - External provider costs for fiscal year 2023 were $374.5 million, a 2.2% decrease compared to the prior year [35] Market Data and Key Metrics Changes - Enrollment in Colorado and Sacramento is tracking to expectations, with gross monthly enrollments returning to pre-sanction levels in Colorado [16] - The company is experiencing sequential improvements in prospect lead volumes and gross enrollments in almost every market, with sales qualified leads increasing by approximately 90% over the last six months [15] Company Strategy and Development Direction - The company aims for responsible growth and to expand access to the PACE program, focusing on execution, margin recapture, and operational excellence [13] - Plans to open new centers in Florida and resume the application in Downey, which would increase census capacity by approximately 500 participants [18] - The company is pursuing a multi-pronged growth strategy that includes new partnerships and tuck-in acquisitions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's foundation for consistent, responsible, profitable growth moving forward [13] - The company anticipates improvement in profitability as it fills excess capacity in its centers and reaches targeted staffing ratios [10] - Management acknowledged the challenges posed by state resource constraints affecting enrollment processing but remains confident in the overall enrollment strategy [16] Other Important Information - The company has implemented a PACE-specific instance of Epic's EMR in 14 of its 17 centers, which is expected to enhance operational productivity and compliance [32] - The company ended the quarter with $127.2 million in cash and cash equivalents, plus $46.2 million in short-term investments [43] Q&A Session Summary Question: Trends in Colorado re-enrollment and guidance assumptions - Management is pleased with progress in Colorado, tracking closely with expectations and returning to pre-sanction gross monthly enrollment levels [54][58] Question: External provider costs and profitability improvement - Management outlined a robust portfolio of initiatives aimed at improving external provider costs, with a focus on re-contracting and unit cost initiatives [61] Question: Revenue PMPM development and Medicaid redetermination impact - Management expects variability in revenue PMPM throughout the year, with no significant impact from Medicaid redetermination on the population [66][69] Question: COVID incidents and guidance for the upcoming winter - Management noted an increase in COVID cases but emphasized that the highly vaccinated population is not adversely affected economically [72][77] Question: Post-monitoring period in Colorado and cost impacts - Management confirmed that they are still in the post-monitoring period in Colorado, with expectations for improvements in staffing costs once monitoring ends [81]

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]