Astrana Health(ASTH) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $478.71 million, a 37$348.17 million in the same period of 2023[251]. - Total revenue for the nine months ended September 30, 2024, was $1,369.3 million, an increase of$335.7 million, or 32%, compared to $1,033.6 million for the same period in 2023[255]. - Care Partners segment revenue for Q3 2024 was$455.8 million, up 42% from $320.9 million in Q3 2023, while operating income decreased by 4$38.8 million[284]. - Care Delivery segment revenue for Q3 2024 was $34.7 million, a 20$29.0 million in Q3 2023, but operating loss increased to $1.4 million[286]. - Care Enablement segment revenue for Q3 2024 was$40.9 million, up 11% from $36.9 million in Q3 2023, with operating income slightly decreasing to$6.3 million[287]. - The increase in revenue across segments was primarily driven by recent acquisitions and increased patient visit volumes[284][286][287]. Income and Expenses - Net income decreased by 32% to $18.98 million, down from$27.97 million in the same quarter of 2023[251]. - Net income for the nine months ended September 30, 2024, was $57.7 million, a slight decrease of$234, or 0%, compared to $57.9 million for the same period in 2023[255]. - General and administrative expenses for the nine months ended September 30, 2024, were$112.5 million, an increase of $37.8 million, or 51$74.6 million for the same period in 2023[259]. - Operating expenses increased by 46% to $450.29 million, compared to$309.09 million in the same quarter of 2023[251]. - Operating expenses for the nine months ended September 30, 2024, totaled $1,280.7 million, an increase of$335.6 million, or 36%, compared to $945.1 million for the same period in 2023[255]. - Adjusted EBITDA margin for Q3 2024 was 9$37.5 million, with potential earnout payments of up to $21.5 million[240]. - An Asset and Equity Purchase Agreement was signed to acquire Prospect Health Services and related assets for$745.0 million, with $55.0 million held in escrow[242]. - The company secured a commitment for a$1.095 billion senior secured bridge term loan to fund the acquisition and refinance existing credit facilities[245]. Cash Flow and Liquidity - Cash, cash equivalents, and investments in marketable securities totaled $350.3 million as of September 30, 2024, up from$296.3 million at December 31, 2023, representing an increase of 18.2%[301]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $63.1 million, a 29$48.9 million in the same period of 2023[305]. - Cash used in investing activities increased significantly to $159.1 million for the nine months ended September 30, 2024, compared to$54.1 million in the same period of 2023, marking a 194% increase[306]. - Cash provided by financing activities was $150.4 million for the nine months ended September 30, 2024, compared to cash used of$8.6 million in the same period of 2023, indicating a change of over 500%[307]. - The Company believes it has sufficient liquidity to fund operations for at least the next 12 months and the foreseeable future[302]. Debt and Financing - The total debt balance as of September 30, 2024, was $441.9 million, with long-term debt amounting to$423.1 million after accounting for current portions and unamortized financing costs[309]. - The Company has a five-year revolving credit facility of $400 million and a new term loan of up to$300 million, increasing total facilities under the Amended Credit Agreement to $700 million[311]. - A commitment letter dated November 8, 2024, includes a Bridge Facility of up to$1,095 million and a five-year revolving credit facility of up to $100 million to enhance financial flexibility[312]. - As of September 30, 2024, borrowings under the Term Loan amounted to$285.3 million[318]. - The Term Loan bears an annual interest rate ranging from 1.50% to 2.75% based on the Company's Consolidated Total Net Leverage Ratio[318]. - The Company had borrowed $146.7 million under the Revolver Loan as of September 30, 2024[318]. - The Revolver Loan interest rate ranges from 1.25$9.9 million as of September 30, 2024[318]. - The promissory note has an interest rate of 4.30% per annum on the principal amount[318]. - The Company has entered into a collar agreement for its Revolver Loan to convert floating-rate debt to a fixed-rate basis[318]. - A hypothetical 1% change in interest rates would have impacted interest expense by $4.4 million for the three months ended September 30, 2024[318]. Patient Management - The company is responsible for coordinating care for approximately 1.0 million patients primarily in California as of September 30, 2024[239]. - The total number of patients managed increased to approximately 1.0 million as of September 30, 2024, compared to 0.9 million as of September 30, 2023[253].