Performant Financial (PFMT)2024-11-07 21:21Revenue Performance - Total revenues for the three months ended September 30, 2024, were $31,519,000, an increase of 5.2% compared to $29,962,000 for the same period in 2023[73]. - Total revenues for the three months ended September 30, 2024, were $31.5 million, an increase of approximately $1.6 million, or 5%, compared to $30.0 million for the same period in 2023[99]. - Total revenues for the nine months ended September 30, 2024, were $88.2 million, an increase of approximately $7.0 million, or 9%, compared to $81.2 million for the same period in 2023[110]. Healthcare Revenue - Healthcare revenues, which include eligibility-based and claims-based services, totaled $30,287,000 for the three months ended September 30, 2024, up from $28,490,000 in the same period of 2023, reflecting a growth of 6.3%[73]. - Healthcare revenues reached $30.3 million for the three months ended September 30, 2024, representing an increase of $1.8 million, or 6%, compared to the same period in 2023[100]. - Healthcare revenues for the nine months ended September 30, 2024, were $84.0 million, an increase of $8.7 million, or 12%, compared to the same period in 2023[111]. Claims-Based Services - Claims-based services revenue increased to $14,217,000 for the three months ended September 30, 2024, compared to $10,325,000 for the same period in 2023, representing a significant growth of 37.5%[73]. - Revenues from eligibility-based services decreased by $2.1 million, or 12%, to $16.1 million for the three months ended September 30, 2024, while claims-based services increased by 38% to $14.2 million[100]. Operating Expenses and Losses - Net loss for the three months ended September 30, 2024, was $2.4 million, an increase of approximately $1.8 million, or 311%, compared to a net loss of $0.6 million for the same period in 2023[107]. - Net loss for the nine months ended September 30, 2024, was $9.4 million, representing an increase in net loss of approximately $0.6 million, or 7%, compared to $8.8 million for the same period in 2023[119]. - Salaries and benefits expense increased by $6.6 million, or 10%, to $73.7 million for the nine months ended September 30, 2024, in support of healthcare services growth[113]. - Net loss for the nine months ended September 30, 2024, was $(9,397) thousand, compared to $(8,774) thousand for the same period in 2023, indicating a deterioration of 7.1%[126]. Cash Flow and Investments - Cash provided by operating activities was $3.4 million for the nine months ended September 30, 2024, down from $5.7 million in the same period of 2023[133]. - Cash used in investing activities increased to $5.7 million for the nine months ended September 30, 2024, compared to $3.0 million in the same period of 2023, primarily due to capital expenditures for software and technology assets[134]. - As of September 30, 2024, the company had $7.8 million in cash and cash equivalents, an increase from $7.3 million as of December 31, 2023[129]. Credit and Financing - The company entered into a new credit agreement on October 27, 2023, with a $25 million revolving loan commitment, of which $8.0 million was outstanding as of September 30, 2024[130]. - The annual interest rate under the credit agreement was 8.0% as of September 30, 2024[137]. - As of September 30, 2024, the company was in compliance with all covenants under the credit agreement[143]. Strategic Outlook - The company anticipates that healthcare revenues will drive the majority of overall revenue growth moving forward[82]. - The company’s growth strategy includes expanding in existing markets and considering strategic alliances or acquisitions to enhance service offerings[76]. - The company’s revenue model is primarily success-based, earning fees based on the amount of funds recovered for clients, aligning business objectives with client interests[70]. - The company has a high level of revenue concentration among its largest clients, which poses risks if any significant contracts are canceled or not renewed[93]. - The company’s revenues are significantly influenced by the volume of claims permitted for audit by healthcare clients, which can fluctuate based on various factors[88].