Cano Health(CANO) - 2023 Q1 - Quarterly Report

Financial Performance - Cano Health reported a net loss of $28.15 million for the three months ended March 31, 2023, compared to a net loss of $32.44 million for the same period in 2022[50]. - The company reported a net loss of $60,585,000 for the three months ended March 31, 2023, compared to a net loss of $85,000 for the same period in 2022[87]. - The net loss attributable to Class A common stockholders for Q1 2023 was $28.2 million, compared to a net income of $0.7 million in Q1 2022[109]. - Net loss for Q1 2023 was $60.6 million, compared to a net loss of $85,000 in Q1 2022[1]. - Adjusted EBITDA for the three months ended March 31, 2023, was $4,979,000, down from $29,191,000 in the same period last year[161]. Revenue and Growth - Total revenue for the three months ended March 31, 2023, was $866.9 million, a 23% increase from $704.3 million in the same period of 2022[109]. - Capitated revenue increased to $841.1 million in Q1 2023, up from $674.4 million in Q1 2022, reflecting a significant growth in patient enrollment[109]. - Total members increased to 388,667, a 44.3% growth from 269,333 in the previous year[144]. - Capitated revenue for Q1 2023 was $841.1 million, a 24.7% increase from $674.4 million in Q1 2022, driven by a 42.6% increase in total member months[122]. Expenses and Costs - Total operating expenses for Q1 2023 were $906.4 million, compared to $715.8 million in Q1 2022, primarily driven by increased third-party medical costs of $708.3 million[109]. - Third-party medical costs increased by 32.2% to $708.3 million in Q1 2023, compared to $535.8 million in Q1 2022[123]. - Operating expenses rose to $906,438,000, reflecting a 26.6% increase from $715,793,000 in the prior year[146]. - Interest expense rose by 76.9% to $23.5 million in Q1 2023, up from $13.3 million in Q1 2022[126]. - Depreciation and amortization expense increased by 43.0% to $27.2 million in Q1 2023, compared to $19.0 million in Q1 2022[124]. Cash Flow and Liquidity - Cash used in operating activities for the three months ended March 31, 2023, was $29,470,000, an improvement from $37,203,000 in the prior year[87]. - The company experienced a net cash inflow of $56,488,000 from financing activities during the three months ended March 31, 2023[87]. - The company’s cash, cash equivalents, and restricted cash at the end of the period were $44,888,000, down from $113,052,000 at the beginning of the year[87]. - Cash and cash equivalents increased to $44.9 million as of March 31, 2023, from $27.3 million as of December 31, 2022[106]. - The company expects to incur approximately $81,000,000 in cash interest payments in 2023[154]. Equity and Stock - The company issued 21,620,941 shares of Class A common stock in connection with a $150 million senior secured term loan, with an interest rate of 14% per annum until February 2025[35]. - The unrecognized compensation cost of outstanding restricted stock units (RSUs) as of March 31, 2023, was $61.1 million for service-based awards and $1.0 million for performance-based awards[43]. - Cano Health's total equity increased to $504.4 million as of March 31, 2023, up from $494.3 million at the end of 2022[50]. - The company has a weighted average remaining service period of 1.3 years for service-based RSUs and 1.1 years for performance-based RSUs[43]. Operational Strategy - The company aims to expand its medical center base, leveraging technology solutions to improve patient care and reduce healthcare costs[30]. - CanoPanorama, the company's proprietary population health management platform, enhances clinical care by providing healthcare providers with a comprehensive view of their members[53]. - The company is focused on improving health outcomes and patient experience, aligning incentives among patients, payors, and providers[30]. - The company utilizes stop-loss insurance to mitigate exposure to large medical claims[58]. - The company focuses on high-quality care, membership growth, and effective medical cost management to meet payor expectations[72]. - The company leverages a proprietary technology platform to deliver high-quality healthcare services, particularly in underserved communities[94]. - The company plans to significantly reduce investments in new medical centers in 2023[57]. - As of March 31, 2023, the company operates 170 medical centers, indicating a strong capacity for new members[57].