P3 Health Partners(PIII) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $362.1 million, a 26$288.4 million in Q3 2023[3] - Capitated revenue reached $357.7 million, up 25$285.2 million in the same quarter last year[3] - Gross profit was a loss of $39.8 million, compared to a profit of$9.1 million in the prior year[3] - Net loss for the quarter was $102.9 million, worsening from a net loss of$37.3 million in Q3 2023[3] - Adjusted EBITDA loss was $71.0 million, compared to a loss of$22.3 million in the prior year[3] - Medical margin was $0.5 million, significantly down from$36.2 million in the prior year[3] - Total operating revenue for the three months ended September 30, 2024, was $362,124, a 25.6$288,351 in the same period of 2023[15] - Medical expenses for the three months ended September 30, 2024, were $401,920, up 43.8$279,220 in the prior year[15] - The net loss attributable to controlling interest for the three months ended September 30, 2024, was $46,512, compared to a net loss of$13,296 in the same period of 2023[15] - Adjusted EBITDA loss for the three months ended September 30, 2024, was $(71,000), compared to$(22,332) in the same period of 2023[17] - Capitated revenue for Q3 2024 reached $357,706 thousand, up from$285,153 thousand in Q3 2023, representing a 25.4% increase[18] - Medical claims expense for Q3 2024 was $357,166 thousand, compared to$248,918 thousand in Q3 2023, reflecting a 43.4% increase[18] - Medical margin for Q3 2024 decreased to $540 thousand from$36,235 thousand in Q3 2023, indicating a significant decline[18] - Total operating expense for Q3 2024 was $469,114 thousand, compared to$322,171 thousand in Q3 2023, marking a 45.6% increase[20] - Nine months ended September 30, 2024, capitated revenue totaled $1,116,146 thousand, compared to$909,473 thousand for the same period in 2023, a 22.8% increase[18] - Nine months ended September 30, 2024, medical margin was $78,181 thousand, down from$125,976 thousand in the same period of 2023[18] Cash and Liabilities - Cash and cash equivalents increased to $62.96 million as of September 30, 2024, up from$36.32 million at the end of 2023[12] - Total current liabilities increased to $405,318 as of September 30, 2024, from$299,372 in the previous year[13] - Long-term debt, net, rose to $133,228 as of September 30, 2024, compared to$108,319 in the prior year[13] - Cash and restricted cash at the end of the period was $68,098, an increase from$57,440 at the end of September 2023[16] - The company reported a net cash used in operating activities of $(52,890) for the nine months ended September 30, 2024, compared to$(60,150) in the prior year[16] Operational Insights - The company has identified over $130 million in potential improvement opportunities for future growth[2] - P3 Health Partners is withdrawing its previous guidance for fiscal year 2024 due to lower-than-expected risk adjustments and elevated medical cost pressures[3] - The company operates with a network of over 3,100 affiliated primary care providers across five states[5] - The weighted average common shares outstanding for the three months ended September 30, 2024, was 161,890, up from 114,198 in the same period of 2023[14] - Adjusted operating expense for Q3 2024 was$31,552 thousand, slightly up from $31,461 thousand in Q3 2023[20] - Other medical expense for Q3 2024 was$44,754 thousand, up from $30,302 thousand in Q3 2023[19] - Medical margin PMPM (per member per month) for Q3 2024 was$1, down from $115 in Q3 2023[18] - Gross profit (loss) for Q3 2024 was$(39,796) thousand, compared to $9,131 thousand in Q3 2023, indicating a negative shift[19]