R1 RCM (US:RCM)2024-11-05 12:02Financial Performance - Revenue for Q3 2024 was $656.8 million, an increase of $84.0 million or 14.7% year-over-year[1] - GAAP net loss for the quarter was $19.9 million, compared to a net income of $1.3 million in the same period last year[2] - Adjusted EBITDA for Q3 2024 was $148.2 million, down from $161.5 million in the same period last year[2] - Net operating fees for Q3 2024 reached $413.0 million, a 12.2% increase from $368.0 million in Q3 2023[12] - Net services revenue for the nine months ended September 30, 2024, was $1,888.6 million, up 12.4% from $1,679.1 million in the same period of 2023[12] - Adjusted EBITDA for the nine months ended September 30, 2024, was $456.5 million, a 2% increase from $446.6 million in the same period of 2023[14] - Total operating expenses increased to $641.0 million in Q3 2024, compared to $531.6 million in Q3 2023, reflecting a 20.6% rise[12] - The company reported a net loss of $19.9 million for Q3 2024, compared to a net income of $1.3 million in Q3 2023[12] Assets and Liabilities - Total assets as of September 30, 2024, were $5,749.3 million, compared to $4,960.2 million as of December 31, 2023[11] - Total liabilities increased to $2,938.2 million as of September 30, 2024, from $2,208.8 million at the end of 2023[11] - Stockholders' equity as of September 30, 2024, was $2,811.1 million, compared to $2,751.4 million at the end of 2023[11] - Total debt increased to $2,236.6 million as of September 30, 2024, up from $1,656.3 million on December 31, 2023, representing a growth of approximately 34.9%[17] - Net debt rose to $2,069.3 million, compared to $1,482.7 million at the end of 2023, indicating an increase of about 39.5%[17] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $172.6 million, down from $221.3 million in the same period of 2023[13] - The company acquired Acclara for $662.0 million, impacting cash used in investing activities significantly[13] - Net cash provided by financing activities was $574.3 million for the nine months ended September 30, 2024, compared to a net cash used of $90.5 million in the same period of 2023[13] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $167.3 million, slightly up from $164.9 million at the end of Q3 2023[13] - Cash and cash equivalents decreased slightly to $167.3 million from $173.6 million, reflecting a decline of around 3.6%[17] Strategic Initiatives - The company is not providing financial guidance due to the proposed acquisition of R1[3] - The company experienced impacts to both revenue and costs due to recent vendor and customer outages[2] - The company is focused on onboarding a new end-to-end partner while managing technology outages[3] - The company is actively pursuing the acquisition of Acclara and other strategic initiatives to enhance its business[9] - The company plans to continue focusing on market expansion and new product development to drive future growth[12]