InnovAge (US:INNV)2025-02-04 22:03Participant and Service Growth - As of December 31, 2024, InnovAge served approximately 7,480 PACE participants across 20 centers in six states[130]. - The company operated 20 PACE centers as of December 31, 2024, an increase from 18 centers in the previous year[179]. - Total member months increased to 43,580 for the six months ended December 31, 2024, compared to 39,670 in the same period of 2023[179]. - InnovAge has acquired and integrated four PACE organizations since FY2019, expanding into one new state and five new markets[139]. Financial Performance - Total revenues for Q4 2024 reached $209.0 million, up $20.1 million or 10.6% from $188.9 million in Q4 2023[153]. - Capitation revenue for Q4 2024 was $208.7 million, an increase of $20.1 million or 10.7% compared to Q4 2023[153]. - For the six months ended December 31, 2024, total revenues increased to $414.1 million, up from $371.4 million for the same period in 2023, representing an increase of 11.5%[184]. - Capitation revenue for the six months ended December 31, 2024, was $413.5 million, compared to $370.7 million for the same period in 2023, reflecting an increase of 11.5%[184]. Operating Expenses - Operating expenses increased by $30.9 million, or 16.2%, in Q2 FY2025 compared to Q2 FY2024, primarily due to census growth and increased care costs[131]. - Total operating expenses for Q4 2024 were $221.6 million, an increase of $30.9 million or 16.2% compared to $190.7 million in Q4 2023[155]. - Corporate, general and administrative expenses increased by $2.9 million, or 11.3%, to $28.1 million for the three months ended December 31, 2024, compared to $25.2 million for the same period in 2023[162]. - For the six months ended December 31, 2024, corporate, general and administrative expenses rose by $1.4 million, or 2.7%, to $55.6 million from $54.2 million in the prior year[163]. Profitability and Loss - Net loss attributable to InnovAge Holding Corp. for Q4 2024 was $13.2 million, compared to a net loss of $3.4 million in Q4 2023[151]. - Net loss for the six months ended December 31, 2024 was $19.2 million, compared to a net loss of $14.8 million in the same period of 2023[179]. - The net loss for the six months ended December 31, 2024, was $19.2 million, compared to a net loss of $14.8 million for the same period in 2023, representing a year-over-year increase of 29.9%[186]. Cash Flow and Debt - As of December 31, 2024, cash and cash equivalents were $46.1 million, a decrease of $10.8 million from June 30, 2024[192]. - Long-term debt outstanding as of December 31, 2024, was $64.1 million[194]. - The Company entered into a credit agreement with a senior secured term loan of $75.0 million and a revolving credit facility with a maximum borrowing capacity of $100.0 million[196]. - As of December 31, 2024, total outstanding debt was $61.9 million under the Term Loan Facility and $2.2 million under the convertible term loan[209]. Cost Management and Future Outlook - InnovAge completed the acquisition of pharmacy assets from Tabula Rasa HealthCare Group, Inc. for $4.8 million on January 2, 2025, to support growth and improve pharmacy cost management[139]. - The company expects elevated operating expenses to continue through FY2025 but anticipates that clinical and operational value initiatives will help offset rising care costs[131]. - The company plans to invest in its centers and value-based care model to support long-term growth, expecting expenses to increase in absolute dollars[139]. - The Company does not anticipate paying any cash dividends in the foreseeable future, intending to retain available funds for business development and debt repayment[198].