The Oncology Institute, Inc. (NASDAQ:TOI) Q1 2024 Earnings Conference Call May 14, 2024 5:00 PM ET Company Participants Dan Virnich - Chief Executive Officer Mihir Shah - Chief Financial Officer Conference Call Participants Jack Slevin - Jefferies Operator Good afternoon and welcome to The Oncology Institute's First Quarter 2024 Earnings Conference Call. Today's call is being recorded. And we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mihi ...

[Part I – Financial Information](index=5&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section details the unaudited financial statements and management's analysis for the quarter ended March 31, 2024 [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, along with detailed accounting notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased slightly to $204.5 million, while total liabilities increased to $163.2 million, resulting in a decrease in total stockholders' equity to $41.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $36,055 | $33,488 | | Accounts receivable, net | $58,760 | $42,360 | | Total current assets | $141,192 | $143,488 | | Total assets | $204,532 | $209,240 | | **Liabilities & Stockholders' Equity** | | | | Accounts payable | $21,015 | $14,496 | | Total current liabilities | $45,768 | $34,798 | | Long-term debt, net | $88,385 | $86,826 | | Total liabilities | $163,236 | $152,215 | | Total stockholders' equity | $41,296 | $57,025 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total operating revenue increased by 24.2% to $94.7 million for Q1 2024, leading to a net loss of $19.9 million, a significant improvement from the $30.0 million net loss in Q1 2023 due to the absence of a goodwill impairment charge Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Patient services revenue | $52,453 | $50,273 | | Dispensary revenue | $39,679 | $24,240 | | **Total operating revenue** | **$94,666** | **$76,192** | | Total operating expenses | $112,638 | $109,059 | | Loss from operations | $(17,972) | $(32,867) | | **Net loss** | **$(19,889)** | **$(29,998)** | | Net loss per share (Basic & Diluted) | $(0.22) | $(0.33) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $15.9 million for Q1 2024, offset by $19.4 million provided by investing activities, resulting in a $2.6 million increase in cash and cash equivalents to $36.1 million by period-end Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,883) | $(15,452) | | Net cash provided by investing activities | $19,388 | $18,401 | | Net cash used in financing activities | $(938) | $(1,709) | | **Net increase in cash and cash equivalents** | **$2,567** | **$1,240** | | **Cash and cash equivalents at end of period** | **$36,055** | **$15,250** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, revenue recognition, debt structure, and other significant financial disclosures - The company operates as a community oncology practice with **126 professionals** across **73 clinic locations** in California, Florida, Arizona, and Nevada, providing a full suite of medical oncology services[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - In Q1 2023, the company recorded a goodwill impairment charge of **$16.9 million**, with no impairment recorded in Q1 2024[41](index=41&type=chunk) Revenue Disaggregation (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Capitated revenue | $17,667 | $16,568 | | FFS revenue | $34,786 | $33,705 | | **Patient services total** | **$52,453** | **$50,273** | | Dispensary revenue | $39,679 | $24,240 | | Clinical research & other | $2,534 | $1,679 | | **Total** | **$94,666** | **$76,192** | - The company has a **$110 million** Senior Secured Convertible Note due August 9, 2027, with a **4.00%** interest rate, and a net carrying amount of **$88.4 million** as of March 31, 2024[100](index=100&type=chunk)[101](index=101&type=chunk)[119](index=119&type=chunk) [Management's Discussion and Analysis (MD&A)](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2024 financial results, highlighting a 24.2% revenue increase to $94.7 million, an improved net loss of $19.9 million, and sufficient liquidity for the next 12 months [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Total operating revenue for Q1 2024 increased by 24.2% to $94.7 million, primarily driven by a 63.7% surge in dispensary revenue, while the operating loss significantly narrowed due to the absence of a prior-year goodwill impairment charge Revenue Comparison (in thousands) | Revenue Stream | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Patient services | $52,453 | $50,273 | $2,180 | 4.3% | | Dispensary | $39,679 | $24,240 | $15,439 | 63.7% | | Clinical trials & other | $2,534 | $1,679 | $855 | 50.9% | | **Total operating revenue** | **$94,666** | **$76,192** | **$18,474** | **24.2%** | - The increase in dispensary revenue was primarily due to a **70.3%** increase in the number of prescriptions filled[219](index=219&type=chunk) Operating Expense Comparison (in thousands) | Expense Item | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Direct costs – patient services | $49,497 | $42,814 | $6,683 | 15.6% | | Direct costs – dispensary | $32,809 | $19,145 | $13,664 | 71.4% | | Goodwill impairment charges | $0 | $16,867 | $(16,867) | N/A | | SG&A expense | $28,452 | $28,830 | $(378) | (1.3)% | | **Total operating expenses** | **$112,638** | **$109,059** | **$3,579** | **3.3%** | [Key Business Metrics](index=46&type=section&id=Key%20Business%20Metrics) The company expanded its operational footprint to 87 clinics and increased lives under value-based contracts to 2.0 million, though Adjusted EBITDA declined to $(10.9) million for the quarter Key Metrics Comparison (in thousands, except as noted) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Clinics | 87 | 77 | | Markets | 14 | 15 | | Lives under value-based contracts (millions) | 2.0 | 1.8 | | Adjusted EBITDA (in thousands) | $(10,940) | $(7,363) | Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Reconciliation Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(19,889) | $(29,998) | | Depreciation and amortization | $1,489 | $1,269 | | Interest expense, net | $1,985 | $1,443 | | Share-based compensation | $4,087 | $4,965 | | Goodwill impairment charges | $0 | $16,867 | | Changes in fair value of liabilities | $0 | $(4,214) | | Other adjustments | $1,398 | $2,312 | | **Adjusted EBITDA** | **$(10,940)** | **$(7,363)** | [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held $36.1 million in cash and $29.8 million in marketable securities, which management deems sufficient to fund operations for at least the next 12 months, with material cash requirements totaling $165.1 million over five years - As of March 31, 2024, the company had **$36.1 million** in cash and cash equivalents and **$29.8 million** in current marketable securities[236](index=236&type=chunk) - Management believes that cash on hand and marketable securities will be sufficient to fund operating and capital needs for at least the **next 12 months**[239](index=239&type=chunk) Material Cash Requirements (in thousands) | Requirement | Total | | :--- | :--- | | Convertible note (principal & interest) | $124,923 | | Operating leases | $37,478 | | Deferred acquisition and contingent consideration | $2,549 | | Other (finance leases) | $146 | | **Total** | **$165,096** | [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate fluctuations on cash and marketable securities, inflationary pressures on operating costs, and potential impairment of goodwill and intangible assets - Interest rate risk is present for the company's **$36.1 million** in cash and **$29.8 million** in marketable securities, but management believes the exposure is not material due to the short-term nature of these assets[270](index=270&type=chunk) - Inflation is a key risk, potentially increasing the costs of drugs, labor, and other business expenses, which could accelerate cash usage[271](index=271&type=chunk) - The company faces impairment risk for its goodwill and intangible assets, which could result in a material write-down if economic conditions worsen or business performance declines[272](index=272&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **effective**[273](index=273&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[274](index=274&type=chunk) [Part II – Other Information](index=54&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section provides additional information, including legal proceedings and updated risk factors [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations - The company states it is not currently involved in any legal proceedings that would have a **material adverse effect** on its business[278](index=278&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No **material changes** to the risk factors from the Annual Report on Form 10-K for the year ended December 31, 2023, have been reported[279](index=279&type=chunk)

The Oncology Institute Reports First Quarter 2024 Financial Results and Reaffirms Full Year 2024 Guidance FOR IMMEDIATE RELEASE CERRITOS, Calif., May 14, 2024 -- The Oncology Institute, Inc. (NASDAQ: TOI) ("TOI" or the "Company"), one of the largest value-based community oncology groups in the United States, today reported financial results for its three months ended March 31, 2024. Recent Operational Highlights Include: First Quarter 2024 Financial Highlights First Quarter 2024 Results Management Commentar ...

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, 2023 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 001-39248 The Oncology Institute, Inc. (Exact name of registrant as specified in its charter) Delaware 84-3562323 (State or o ...

Call Start 17:00 January 1, 0000 5:23 PM ET The Oncology Institute, Inc. (NASDAQ:TOI) Q4 2023 Earnings Conference Call March 27, 2024 05:00 PM ET Company Participants Mark Hueppelsheuser - General Counsel Dan Virnich - Chief Executive Officer Mihir Shah - Chief Financial Officer Conference Call Participants Jack Slevin - Jefferies Operator Good afternoon, and welcome to The Oncology Institute's Fourth Quarter 2023 and Full Year 2023 Earnings Conference Call. Today's call is being recorded, and we have alloc ...

FOR IMMEDIATE RELEASE The Oncology Institute Reports Fourth Quarter and Full Year 2023 Financial Results and Guidance for 2024 CERRITOS, Calif., March 27, 2024 -- The Oncology Institute, Inc. (NASDAQ: TOI) ("TOI" or the "Company"), one of the largest value-based community oncology groups in the United States, today reported financial results for its fourth quarter and year ended December 31, 2023. Recent Operational Highlights Fourth Quarter 2023 Financial Highlights Management Commentary Daniel Virnich, CE ...

The Oncology Institute, Inc. (NASDAQ:TOI) Q3 2023 Earnings Conference Call November 8, 2023 5:00 PM ET Company Participants Mark Hueppelsheuser - General Counsel Dan Virnich - Chief Executive Officer Mihir Shah - Chief Financial Officer Conference Call Participants Jack Slevin - Jefferies Operator Good afternoon, and welcome to The Oncology Institute Third Quarter 2023 earnings conference call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ý 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 ☐ 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 001-39248 (State or other jurisdiction of incorporation or organization) 18000 Studebaker Rd, Suite 800 Cerritos, Ca ...

The Oncology Institute, Inc. (NASDAQ:TOI) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Mark Hueppelsheuser - General Counsel Dan Virnich - Chief Executive Officer Mihir Shah - Chief Financial Officer Conference Call Participants Taji Phillips - Jefferies Operator Good afternoon ladies and gentlemen and welcome to The Oncology Institute's Second Quarter 2023 Earnings Conference Call. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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 001-39248 The Oncology Institute, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...