CareMax(US:CMAX)2024-05-09 21:09Revenue and Income - Government value-based care revenue increased to $18.8 million for the three months ended March 31, 2024, an increase of $8.8 million, or 88.0%, compared to $10.0 million for the same period in 2023[222]. - Medicare risk-based revenue increased to $168.5 million for the three months ended March 31, 2024, a rise of $46.9 million or 38.6% compared to $121.6 million for the same period in 2023, driven by a 23.5% increase in at-risk Medicare patients[353]. - Other income, net was $0.6 million for the three months ended March 31, 2024, an increase of $0.4 million, or 227.2%, compared to $0.2 million for the same period in 2023[226]. - Other revenue decreased to $7.3 million for the three months ended March 31, 2024, down $8.5 million or 53.8% from $15.8 million in the same period of 2023, primarily due to a decrease in capitation and partial risk revenue[354]. Expenses - Cost of care expenses were $43.1 million for the three months ended March 31, 2024, an increase of $4.5 million, or 11.7%, compared to $38.6 million for the same period in 2023[223]. - Sales and marketing expenses were $3.1 million for the three months ended March 31, 2024, a decrease of $0.7 million or 18.6% compared to $3.8 million for the same period in 2023, reflecting efforts to reduce operating expenses[355]. - Depreciation and amortization expenses were $6.7 million for the three months ended March 31, 2024, an increase of $0.1 million, or 2.0%, compared to $6.6 million for the same period in 2023[224]. Cash Flow and Financing - As of March 31, 2024, the company had cash and cash equivalents of $41.5 million[227]. - The company reported net cash used in operating activities of $(23,802) thousand, compared to $(21,746) thousand for the same period in 2023, indicating a 9.5% increase in cash outflow[237]. - The company reported net cash used in investing activities of $(126) thousand for the three months ended March 31, 2024, compared to $(2,286) thousand for the same period in 2023, indicating a significant reduction in investment outflows[237]. - The company paid off all outstanding indebtedness of $35.5 million in October 2023, terminating the Loan and Security Agreement[207]. - The company does not expect to comply with the maximum leverage ratio and minimum liquidity covenants specified in the Credit Agreement for the next twelve months[228]. - The company has secured debt financing of up to $1.0 million for each new center opened in partnership with Elevance Health[235]. - The Company drew $0 and $30.0 million of the Delayed Draw Term Loans during the three months ended March 31, 2024 and 2023, respectively[362]. - As of March 31, 2024, there was no remaining availability under the Delayed Draw Term Loans[362]. - In October 2023, the Company paid off all outstanding indebtedness of $35.5 million under the Loan and Security Agreement with proceeds from the MSSP payment from the federal government[365]. - A promissory note for $1.0 million was entered into in October 2022, due in October 2032, to finance costs of a new center opened in partnership with Elevance Health[366]. - The Company is required to maintain a minimum stockholder's equity of $100.0 million and a minimum cash balance of $25.0 million under its finance and operating leases[367]. Compliance and Agreements - The company was in compliance with all financial covenants under the Credit Agreement as of March 31, 2024[232]. - The company entered into a Waiver and Third Amendment to Credit Agreement on March 15, 2024, which included a 2.00% increase in the applicable margin rate during the specified period[231]. - The company has commitments under the Credit Agreement and operating and finance leases for its centers, with remaining lease durations ranging from 19 to 20 years[238]. Impairments and Losses - The company recorded a loss on fair value of derivative liabilities of $2.4 million for the three months ended March 31, 2024, a decrease of $3.5 million, or 315.1%, compared to a gain of $1.1 million for the same period in 2023[225]. - The company recognized a goodwill impairment of $0 for the three months ended March 31, 2024, a decrease of $98.0 million or 100.0% compared to $98.0 million for the same period in 2023[356]. Technology and Operations - Approximately 81% of revenue for the three months ended March 31, 2024, came from Medicare eligible seniors aged 65 and older[203]. - CareMax's CareOptimize technology platform is designed to drive better outcomes and lower costs by supporting informed care delivery decisions[202]. - There have been no changes to the Company's critical accounting policies and estimates as described in the Annual Report for the year ended December 31, 2023[369].