Performant Financial Corporation (NASDAQ:PFMT) Q2 2020 Earnings Conference Call August 11, 2020 5:00 PM ET Company Participants Richard Zubek - Investor Relations Lisa Im - Chief Executive Officer Rohit Ramchandani - Vice President, Finance and Strategy Operator Greetings, and welcome to the Performant Financial Corp. Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please n ...

Performant Financial Corporation (NASDAQ:PFMT) Q1 2020 Earnings Conference Call May 19, 2020 5:00 PM ET Company Participants Richard Zubek - Investor Relations Lisa Im - Chief Executive Officer Rohit Ramchandani - Vice President of Finance & Strategy Conference Call Participants Operator Greetings and welcome to the Performant Financial Corp. First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operato ...

Financial Data and Key Metrics Changes - In Q4 2019, the company reported revenue of $43.8 million, a 10.3% increase compared to the prior year period [22] - Adjusted EBITDA for Q4 was $6.5 million, up from $2.5 million in the prior year and a loss of $3.1 million in Q3 2019 [22] - For the full year 2019, total revenue was $150.4 million, compared to $155.7 million in 2018, but adjusted for a one-time benefit in 2018, this represents an 18.2% increase over 2018 revenues of $127.3 million [23] Business Line Data and Key Metrics Changes - Healthcare revenues in Q4 2019 totaled $14.3 million, a 44.4% increase year-over-year and 32.8% higher quarter-over-quarter [24] - Full year 2019 healthcare revenues were $43.3 million, a 66% increase compared to 2018 [25] - Recovery revenue for Q4 was $25.2 million, flat year-over-year but up 20.4% from Q3 2019 [26] Market Data and Key Metrics Changes - The healthcare segment now represents roughly 30% of total revenue, up from just under 10% two years ago [25] - The company has successfully extended its recovery platform into additional markets, including diversified consumer and commercial markets [16] Company Strategy and Development Direction - The company aims to build a diversified business leveraging its core strengths in analytics, innovation, compliance, audit, and recovery [20] - The management is focused on strategic investments for expansion across all markets, with a long-term revenue target of $200 million [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive EBITDA every quarter in 2020, driven by strong operational momentum from Q4 2019 [36] - The company is closely monitoring the impact of COVID-19 but has not yet seen significant changes in operational behavior [40] Other Important Information - The company recorded a $7.2 million non-cash impairment charge to goodwill in Q4 2019, which will not impact operations or liquidity [29] - The company is evaluating opportunities to refinance its debt due to high interest rates [52][53] Q&A Session Summary Question: How comfortable is the company with staying within covenant ranges given EBITDA guidance? - Management expects positive EBITDA every quarter in 2020, feeling confident about operational results [36] Question: Have there been any changes in outreach behavior due to COVID-19? - No significant changes have been observed, and the company is taking precautions to ensure employee safety [40] Question: What is the outlook for commercial healthcare trends? - Management expects strong results continuing into 2020, with double-digit growth anticipated in the healthcare market [48]

Performant Financial Corporation (NASDAQ:PFMT) Q3 2019 Earnings Conference Call November 12, 2019 5:00 PM ET Company Participants Richard Zubek - Vice President of Investor Relations Lisa Im - Chief Executive Officer Ian Johnston - Chief Financial and Accounting Officer Conference Call Participants Brian Hogan - William Blair & Company LLC Alex LaPointe - Adviser Investments, LLC Operator Greetings and welcome to the Performant Financial Corp. Third Quarter 2019 Earnings Call. At this time, all participants ...

Performant Q2 2019 Earnings Call: Financial Results Increase / (Decrease) ($000s) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------|-------|----------|-------|-------|-------------|-----------|-------|---------------|-----------| | | | Q2 2019 | | | Q2 2018 \n$ | +/- % | | Q1 2019 \n $ | +/- % | | Recovery | | | | | | | | | | | Placements | | | | | | | | | | | Total Student Lending Placement Volume | | $ 648 | | | 1,718 | $ (62.3)% | | 1,070 | $ (39.4)% ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2019 was nearly $36 million, up over 14% compared to the prior year period [11] - Adjusted EBITDA for Q2 was a loss of approximately $3 million, compared to a profit of just over $119,000 in the prior year period [11] - Total expenses for Q2 were $40.1 million, which was $5.4 million higher than the prior year period [17] Business Line Data and Key Metrics Changes - Health-care revenues in Q2 exceeded $9 million, a 52% increase year-over-year [12] - Federal health-care client revenues were approximately $5 million, up nearly 40% year-over-year [12] - Commercial health-care revenues accounted for over $4.4 million, compared to $2.6 million in the prior year period [13] - Total recovery revenue in Q2 was just over $22 million, approximately 8% higher than the second quarter of last year [15] - Customer care and outsourced services revenues were nearly $4.5 million, down $6.1 million versus last year [16] Market Data and Key Metrics Changes - Health-care revenues for the first half of 2019 were $18.3 million, up 90% over the prior year period [13] - Year-to-date recovery revenue was $43.5 million, up $1.1 million or 2.6% versus the prior year period [15] Company Strategy and Development Direction - The company is focused on technology investment to create capabilities that exceed current market services [7] - The platform, Performant Insight, is seen as a disruptive health-care technology, actively taking market share from established players [8] - The company aims to achieve $200 million in revenue with margins in excess of 20% by 2021 [18] Management's Comments on Operating Environment and Future Outlook - Management expects strong double-digit growth to continue into the mid- and long-term future [10] - The company is confident in meeting its 2019 revenue and EBITDA guidance of $158 million to $168 million and a loss of $2 million to $6 million, respectively [18] - Management anticipates that most growth will come from the health-care business [19] Other Important Information - The company is transforming from a dependency on the student lending industry to a diversified offering across various sectors [18] - The company is executing against increasing the number of office adds for CMS recovery audit contracts [25] Q&A Session Summary Question: On the cost basis and revenue crossover - Management sees expenses at a steady rate with a slight uptick due to a large health-care contract ramping up [22] Question: Drivers of federal RAC and MSP contracts being down - Management noted occasional delays but expects an upward trend as they move into the third quarter [24] Question: Differentiation in commercial health care offerings - The company utilizes a proprietary analytical platform to drive value and has a strong customer service organization [26][27] Question: Outlook for student loan placements - Management believes there are seven plus years of servicing left in the FFELP funnel and sees continued opportunity for stability [30] Question: Comfort level with the balance sheet - Management feels confident about meeting covenants and expects good results as they enter 2020 [33][34] Question: Confidence in achieving 2021 targets - Management is confident due to understanding contract cycles and ongoing technology improvements [36]

Start Time: 17:00 January 1, 0000 5:09 PM ET Performant Financial Corporation (NASDAQ:PFMT) Q1 2019 Earnings Conference Call May 07, 2019, 17:00 PM ET Company Participants Lisa Im - CEO Richard Zubek - VP of IR Conference Call Participants Operator Greetings. Welcome to Performant Financial Corp. First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this confere ...

Performant Q4/FY2018 Earnings Call: Financial Results Increase / (Decrease) ($000s) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------|-------|-----------------|-------|-------|-------|-------------|-----------|------------------|-------|-------------------|-------|---------------|------------------| | | | Q4 2018 | | | $ | | Q4 2017 | +/- % | | FY 2018 | | FY 2017 \n $ | +/- % | | Student Lending | | | | | | | | | | | | ...

Financial Data and Key Metrics Changes - In Q4 2018, the company reported revenue of $39.8 million, reflecting a 19.5% increase compared to Q4 2017 [10] - For the full year 2018, total revenues were $155.7 million, up from $132 million in 2017, with adjusted EBITDA showing a loss of $5.2 million compared to a profit of $9.2 million in 2017 [10][20] - Q4 expenses were $43.2 million, an increase of $8.7 million from $34.5 million in Q4 2017, driven by growth in healthcare and the acquisition of Premiere [16] Business Line Data and Key Metrics Changes - Commercial healthcare revenues in Q4 were $6 million, a 90% increase year-over-year, and $14.1 million for the full year, up 64.8% from 2017 [11][10] - Total healthcare revenue for 2018 was $55.9 million, compared to $10 million in 2017 [13] - Student lending revenue in Q4 was $18 million, down 20% from $22.5 million in the prior year, with full-year revenue at $66.5 million, a decrease of 29.5% [13][14] Market Data and Key Metrics Changes - The IRS Private Debt Collection program has collected $130.6 million in overdue tax revenue, contributing to the company's growth in the tax and customer care revenue category, which saw a 48.6% increase year-over-year [15][14] - The company faced challenges with the Department of Education's decision to cancel a procurement contract, despite the increase in defaulted student loans managed by the department [8][9] Company Strategy and Development Direction - The company aims to build a diversified business leveraging its strengths in analytics, innovation, compliance, audit, and recovery, with a focus on healthcare growth and the integration of the Premiere Credit acquisition [6][19] - The long-term revenue target for 2021 is set at $200 million, primarily driven by healthcare growth and existing contracts, with expectations for strong double-digit EBITDA margins [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business strategy despite guiding for a net EBITDA loss in 2019, emphasizing the importance of investments in contracts for future growth [20][19] - The company plans to accelerate audit cycles on CMS contracts in 2019, which is expected to yield benefits in 2020 [12][26] Other Important Information - The acquisition of Premiere Credit of North America is expected to add $28 million to $32 million in revenue in 2019, enhancing the company's recovery services capabilities [7][8] - The company has secured over $20 million in growth capital to support its investments and operations [20] Q&A Session Summary Question: What are the bigger drivers for the 2021 target of $200 million? - The target is largely driven by healthcare growth, with expectations for recovery growth as well, particularly from the Premiere Credit acquisition [23] Question: Can you discuss the pipeline of new business in commercial healthcare? - The company anticipates strong sequential growth in commercial healthcare, with existing contracts expected to contribute significantly [25] Question: How much revenue was generated from the CMS RAC contract in the quarter? - The company is working with CMS to increase document limits for audits, which will take time to fully benefit from, with expectations for improvement in 2020 [26]