UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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: 001-35628 PERFORMANT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 20-0484934 (State o ...

Performant Financial Corporation (NASDAQ:PFMT) Q3 2021 Earnings Conference Call November 9, 2021 5:00 PM ET Company Participants Richard Zubek - Investor Relations Lisa Im - Chief Executive Officer Simeon Kohl - Senior Vice President and General Manager of Healthcare Rohit Ramchandani - Senior Vice President of Finance and Strategy Conference Call Participants Kyle Bauser - Colliers Securities Craig Melcher - Tudor Investment Corporation George Sutton - Craig-Hallum Operator Welcome to today's Performant Fi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 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: 001-35628 PERFORMANT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) o If an emerging growth company, ...

Performant Financial Corp (NASDAQ:PFMT) Q2 2021 Earnings Conference Call August 10, 2021 5:00 PM ET Company Participants Richard Zubek - IR Professional Lisa Im - Chairman, CEO & Secretary Simeon Kohl - SVP, Healthcare & GM of Healthcare Rohit Ramchandani - VP, Finance & Strategy Conference Call Participants Kyle Bauser - Colliers Securities George Sutton - Craig-Hallum Chris Krug - Chatham Harbor Capital Operator Greetings and welcome to the Performant Financial Corporation Second Quarter 2021 Earnings Con ...

PART I [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position, results of operations, and cash flows, noting a narrowed net loss and positive operating cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$125.4 million** while total liabilities increased to **$87.2 million**, leading to a decrease in stockholders' equity Consolidated Balance Sheets (In thousands) | Balance Sheet Items | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$125,409** | **$126,227** | | Cash and cash equivalents | $19,203 | $16,043 | | Total current assets | $55,120 | $54,520 | | Goodwill | $47,372 | $47,372 | | **Total Liabilities** | **$87,242** | **$84,247** | | Current maturities of notes payable | $59,463 | $59,957 | | Estimated liability for appeals, disputes, and refunds | $4,373 | $1,014 | | Total current liabilities | $81,157 | $77,212 | | **Total Stockholders' Equity** | **$38,167** | **$41,980** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Revenues decreased to **$31.4 million**, but the net loss significantly narrowed to **$4.4 million** due to the absence of a prior-year goodwill impairment charge Consolidated Statements of Operations (In thousands, except per share) | Statement of Operations | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Revenues** | **$31,390** | **$45,888** | | Total operating expenses | $34,446 | $60,025 | | Impairment of goodwill | $— | $19,000 | | Loss from operations | ($3,056) | ($14,137) | | **Net loss** | **($4,439)** | **($12,484)** | | **Net loss per share (Basic & Diluted)** | **($0.08)** | **($0.23)** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$4.8 million**, contributing to a **$3.1 million** increase in cash, cash equivalents, and restricted cash during the quarter Consolidated Statements of Cash Flows (In thousands) | Cash Flow Activities | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,822 | $7,221 | | Net cash used in investing activities | ($826) | ($1,073) | | Net cash used in financing activities | ($886) | ($947) | | **Net increase in cash, cash equivalents and restricted cash** | **$3,110** | **$5,201** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's strategic shift to healthcare, revenue recognition, debt, and a significant increase in estimated liabilities - The company is strategically shifting its focus to the **healthcare industry**, exiting non-healthcare recovery markets[23](index=23&type=chunk) Revenue by Category (In thousands) | Revenue by Category | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Healthcare | $13,286 | $17,524 | | Recovery | $14,491 | $24,265 | | Customer Care / Outsourced Services | $3,613 | $4,099 | | **Total Revenues** | **$31,390** | **$45,888** | - The estimated liability for appeals, disputes, and refunds significantly increased to **$4.4 million** as of March 31, 2021, including a **$3.3 million** refund accrual to a healthcare client[42](index=42&type=chunk) - The company had **$60.0 million** in principal outstanding under its Credit Agreement with an annual interest rate of **6.5%** as of March 31, 2021[58](index=58&type=chunk)[59](index=59&type=chunk)[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic pivot to healthcare, the impact of COVID-19 on revenue, improved losses due to cost reductions, and liquidity management [Overview and COVID-19 Impact](index=18&type=section&id=Overview%20and%20COVID-19%20Impact) The company is strategically focusing on healthcare services while exiting non-healthcare recovery, significantly impacted by the COVID-19 pandemic and CARES Act - The company announced plans to sell non-healthcare recovery contracts and exit that market to focus on healthcare[77](index=77&type=chunk) - The CARES Act suspended student loan recovery services through September 30, 2021, significantly reducing annual recovery revenue[80](index=80&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenues decreased by **32%** to **$31.4 million**, but operating and net losses significantly improved due to cost reductions and the absence of a prior-year goodwill impairment Financial Metric (In thousands) | Financial Metric | Q1 2021 | Q1 2020 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | **$31,390** | **$45,888** | **(32)%** | | Salaries and benefits | $24,090 | $28,805 | (16)% | | Other operating expenses | $10,356 | $12,220 | (15)% | | Impairment of goodwill | $— | $19,000 | (100)% | | **Loss from operations** | **($3,056)** | **($14,137)** | **78%** | | **Net loss** | **($4,439)** | **($12,484)** | **64%** | - The decrease in healthcare revenues was primarily due to a **$3.3 million** charge for a refund liability to a client[123](index=123&type=chunk) - Recovery revenues decreased primarily due to the COVID-19 pandemic causing customers to pause work on contracts[124](index=124&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily from operating cash flows, with total cash increasing to **$21.4 million**, and the company relies on these flows to manage its **$60.0 million** outstanding debt - Cash, cash equivalents, and restricted cash totaled **$21.4 million** as of March 31, 2021, an increase of **$3.1 million** from year-end 2020[138](index=138&type=chunk) - The company has no remaining borrowing capacity under its Credit Agreement and relies on operating cash flows for funding[139](index=139&type=chunk) - The company expects to remain in compliance with debt covenants, but non-compliance could lead to default and debt acceleration[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate credit facility, with no material foreign currency risk - The company's main market risk is interest rate risk from its variable-rate senior secured credit facility[157](index=157&type=chunk) - A **1%** increase in the interest rate would result in an approximate **$0.6 million** increase in annual interest expense[157](index=157&type=chunk) [Item 4. Disclosure Controls and Procedures](index=31&type=section&id=Item%204.%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[160](index=160&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[161](index=161&type=chunk) PART II [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings primarily related to student loan recovery services, which management believes will not have a material adverse effect - The company is involved in legal proceedings primarily from student loan recovery services, asserting violations of consumer credit laws[163](index=163&type=chunk) - Management believes these legal proceedings will not materially adversely affect the company's financial condition or operations[163](index=163&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks including the COVID-19 pandemic's impact, indebtedness, high client concentration, and reliance on federal government contracts - The COVID-19 pandemic has materially impacted business, especially due to the suspension of student loan recovery activities[165](index=165&type=chunk)[167](index=167&type=chunk) - The company's indebtedness and restrictive covenants pose a significant risk, with non-compliance potentially leading to default and debt acceleration[169](index=169&type=chunk)[170](index=170&type=chunk) - Significant client concentration risk exists, with the three largest clients representing **53%** of 2020 revenues[174](index=174&type=chunk) - A significant portion of revenue, **49%** in 2020, comes from the U.S. federal government, and loss of these contracts would significantly decrease revenues[180](index=180&type=chunk)[181](index=181&type=chunk) [Other Items](index=42&type=section&id=Other%20Items) This section covers standard disclosures, reporting no unregistered equity sales, no defaults on senior securities, and no mine safety disclosures - No unregistered sales of equity securities or use of proceeds were reported for the period[205](index=205&type=chunk) - No defaults upon senior securities, mine safety disclosures, or other information were reported for the period[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2021, the company reported revenues of over $31 million, a decrease from $45.9 million in the prior year period due to the impact of the COVID-19 pandemic [7][12] - Adjusted EBITDA for Q1 2021 was essentially breakeven, compared to $7.1 million in the prior year period, reflecting the ongoing challenges from the pandemic [7][12] - The company anticipates achieving annual healthcare revenue in the range of $83 million to $90 million and positive EBITDA for 2021, with over 95% of revenue expectations contracted [8][17] Business Line Data and Key Metrics Changes - Claims-based revenue for Q1 2021 was over $5.3 million, down from $6.6 million in Q1 2020 but up from $4.7 million in Q4 2020, indicating a potential upward trend as activities normalize [13] - Revenue from eligibility services in Q1 2021 was approximately $8 million, down from $10.9 million in Q1 2020 and lower than $14 million in Q4 2020, with expectations for growth as programs ramp up [14][16] - Total non-healthcare recovery revenue in Q1 2021 was $14.5 million, while customer care outsourced services revenues were $3.6 million, both lower than the prior year period [20] Market Data and Key Metrics Changes - The healthcare payment integrity market is expected to grow at a mid-single-digit rate, with the company focusing on taking market share from incumbents like HMS and Cotiviti [33][34] - The company has launched 10 new healthcare programs in Q4 2020 and 5 additional programs in Q1 2021, indicating a strong pipeline for future growth [22][51] Company Strategy and Development Direction - The company is shifting its focus entirely to the healthcare market, winding down non-healthcare recovery operations and dedicating resources to healthcare payment integrity [5][6] - The strategy includes maintaining customer care outsourced services operations to leverage growth opportunities through integration with healthcare offerings [5][20] - The company plans to continue investing in technology and attracting industry talent to scale its healthcare business [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the healthcare business, citing strong visibility into future revenues due to contracted expectations [30] - The company anticipates significant growth in the second half of 2021 as existing programs expand and new programs are implemented [17][19] - Management noted that the competitive landscape is based on quality rather than pricing, emphasizing the importance of delivering superior results to clients [42][46] Other Important Information - The company has accrued a $3.3 million liability against revenues due to discrete exposure on eligibility work, which is expected to close out in the coming year [15] - Operating expenses in Q1 2021 were $34.4 million, reflecting a decrease due to cost reductions in response to the pandemic [21] Q&A Session Summary Question: Can you walk me through the timeline for new program implementations? - The company expects all new programs to be fully operational by the end of 2021, with material impacts anticipated in 2022 [29] Question: How confident is the company in its revenue guidance for 2021 and beyond? - The company has strong visibility into future revenues, with over 95% contracted for 2021, and anticipates sustainable double-digit growth rates in the future [30][31] Question: What is the growth rate of the end market, and is the company taking market share? - The healthcare market is growing at mid-single digits, and the company is successfully taking market share from incumbents [33][34] Question: How does the company view pricing competition in the industry? - The company believes that competition is based on quality rather than pricing, as clients prioritize results over lower fees [42][46] Question: How easy is it to expand within the existing customer base? - Expansion opportunities exist within nearly all clients, with a significant portion of new programs being expansions rather than new clients [51]

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: 001-35628 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 December 31, 2020 PERFORMANT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 20-0484934 ...

Financial Data and Key Metrics Changes - In Q4 2020, the company reported revenues of over $40 million and adjusted EBITDA of $5.1 million, both lower compared to Q4 2019 due to the pandemic's impact on the recovery business [6][15] - For the full year 2020, revenues were nearly $156 million with adjusted EBITDA exceeding $20 million, marking the first time since 2016 that annual adjusted EBITDA surpassed $20 million, compared to $150 million in revenue and negative EBITDA of over $3 million in 2019 [7][16] Business Line Data and Key Metrics Changes - Healthcare revenues in Q4 2020 were $18.9 million, reflecting a 32% growth year-over-year, while full-year healthcare revenues reached $68.5 million, a 58% increase from 2019 [17][18] - Recovery revenues in Q4 2020 were $17.5 million, down 31% year-over-year, and full-year recovery revenues totaled $73.4 million, an 18% decrease compared to 2019 [19][20] Market Data and Key Metrics Changes - The healthcare business accounted for almost half of total revenue in 2020, a significant increase from just 7.5% in 2017, indicating a strong growth trend [11][18] - The recovery operations accounted for 47% of total revenue for the first time, reflecting the growth of the healthcare business and COVID-19 related impacts [12] Company Strategy and Development Direction - The company is focusing its long-term strategy on growing its healthcare business, having successfully taken market share from incumbents and proving the superiority of its technology platform [25][26] - The company anticipates that healthcare revenues will drive the majority of overall company revenue and growth moving forward, while recovery business revenues are expected to decline [12][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pandemic's significant impact on operations but expressed confidence in the long-term prospects of the company, expecting to continue reporting positive EBITDA [27] - The company is not providing a detailed outlook for 2021 due to uncertainties surrounding recovery operations but remains optimistic about growth in healthcare markets [27] Other Important Information - The company launched 10 new healthcare programs in Q4 2020, indicating ongoing expansion and diversification within its service offerings [10] - Operating expenses in Q4 2020 were $36.3 million, a decrease of $9.8 million from the prior year, attributed to reduced headcount and expense restructuring [23] Q&A Session Summary - The Q&A session did not contain specific questions or answers as the call concluded with acknowledgments from management [30][31]

Performant Financial Corporation (NASDAQ:PFMT) Q3 2020 Earnings Conference Call November 10, 2020 5:00 PM ET Â Company Participants Richard Zubek - Investor Relations Lisa Im - Chief Executive Officer Rohit Ramchandani - Vice President, Finance and Strategy Operator Greetings. Welcome to Performant Financial Corporation Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note this conference is being recorded. I will now turn the confere ...

INVESTOR PRESENTATION LD Micro 500 – Summer 2020 PERFORMANT FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward‐looking statements. Forward‐looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forwar ...