InnovAge (INNV) Q3 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Ryan Kubota - Director of Investor RelationsPatrick Blair - President & CEOBen Adams - CFOBenjamin Rossi - Equity Research AssociateJared Haase - Equity Research AssociateMichael Scarbrough - President & COO Conference Call Participants Matthew Gillmor - Director & Equity Research AnalystJamie Perse - Equity Research Analyst Operator Good day, and thank you for standing by. Welcome to the InnovAge Third Quarter twenty twenty ...

Financial Data and Key Metrics Changes - The company reported revenue of $218.1 million, representing a 13% year-over-year increase from $193.1 million in the same quarter last year [8][23] - Adjusted EBITDA was $10.8 million, with a margin of 4.9%, significantly improving from $3 million in the third quarter of fiscal year 2024 [9][30] - The net loss for the quarter was $11.1 million, compared to a net loss of $6.2 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Census grew to approximately 7,530 participants, reflecting a 10% annual increase [10][23] - Center level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year [8][27] - External provider costs were $107.9 million, a 7.9% increase compared to the same quarter last year, driven by an increase in member months [25][26] Market Data and Key Metrics Changes - The increase in member months was primarily due to growth in existing California and Colorado centers, along with new centers in Florida [24] - The company experienced a modest sequential growth in census due to seasonal headwinds during Medicare's Annual Enrollment Period [12] Company Strategy and Development Direction - The company is focused on operational excellence and greater organizational efficiency, aiming to build a scalable, tech-enabled platform for sustainable growth [11][19] - The transformation efforts are described as more ambitious than previous improvement initiatives, with a comprehensive approach to reimagine operations and value creation [11][20] - The company is actively engaging with policymakers to advocate for the PACE model, emphasizing its value for seniors and the healthcare system [7][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a healthcare environment marked by policy uncertainty, reaffirming fiscal year 2025 earnings guidance [6][33] - The company is optimistic about the long-term value of the PACE model, which is seen as resilient in uncertain policy environments [20][21] - Management highlighted the importance of maintaining strong cost discipline while delivering quality outcomes for participants [14][19] Other Important Information - The company has successfully integrated pharmacy services into its clinical model, which is expected to enhance medication adherence and reduce costs [18] - The flu vaccination rate for participants is reported at 77%, significantly above the national average for seniors [15] Q&A Session Summary Question: Initial 2026 guidance and Medicare/Medicaid rate development - Management indicated that it is early for 2026 guidance but expects reasonable Medicare rates and some positive indications for Medicaid rates [36][38] Question: Changes in pharmacy utilization trends - Management noted no significant changes in pharmacy utilization trends, emphasizing that their reimbursement model differs from traditional Medicare Advantage [42][43] Question: Engagement with regulators regarding PACE - Management confirmed increased engagement with regulators, focusing on the value of PACE and the populations served, while addressing potential risks related to eligibility and state budgets [46][49] Question: De novo losses and enrollment trends - Management reported that de novo losses are tracking with expectations, with positive momentum in new markets [66][68] Question: Cost of care and investments - Management acknowledged increased costs due to insourcing certain services but expects a more normalized growth rate going forward [73][75]

Core Viewpoint - InnovAge Holding Corp. reported strong revenue growth but faced increased losses in its fiscal third quarter ended March 31, 2025, indicating challenges in cost management despite a growing participant base [2][3]. Financial Results - Total revenues for the third quarter reached $218.1 million, a 13.0% increase from $193.1 million in the same quarter of the previous year [3][22]. - Loss Before Income Taxes was $11.1 million, up 72.6% from a loss of $6.4 million in the prior year [3][22]. - Net loss was $11.1 million, compared to a net loss of $6.2 million in the same quarter of the previous year, with a net loss margin of 5.1%, an increase of 1.9 percentage points [3][22]. - Adjusted EBITDA was $10.8 million, significantly up from $3.0 million in the same quarter of the previous year, with an adjusted EBITDA margin of 4.9% [3][22]. Operational Metrics - The company served approximately 7,530 participants, an increase from 6,820 participants in the same quarter of the previous year [3][10]. - Center-level Contribution Margin was $40.7 million, a 19.9% increase compared to $34.0 million in the same quarter of the previous year [3][22]. Cash and Debt Position - As of March 31, 2025, InnovAge had $60.5 million in cash and cash equivalents and $41.3 million in short-term investments, with total debt of $77.3 million [3][19]. Full Fiscal Year 2025 Financial Guidance - The company expects total revenues for the fiscal year to be between $815 million and $865 million, with adjusted EBITDA projected between $24 million and $31 million [5][6]. Leadership Changes - Dr. Richard Feifer, the Chief Medical Officer, departed the company effective April 25, 2025, to pursue other opportunities [4].

Ensign Group (ENSG) reported $1.17 billion in revenue for the quarter ended March 2025, representing a year- over-year increase of 16.1%. EPS of $1.52 for the same period compares to $1.30 a year ago. The reported revenue represents a surprise of +0.23% over the Zacks Consensus Estimate of $1.17 billion. With the consensus EPS estimate being $1.50, the EPS surprise was +1.33%. Here is how Ensign Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall ...

Investor Contact About Alignment Healthcare Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health's mission-focused team makes high-quality, low-cost care a reality for its Medicare Advantage members every day. Based in California, the company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customiz ...