Assure (US:IONM)2023-05-17 01:46Financial Data and Key Metrics Changes - The company reported a gross revenue of $4.8 million and a net revenue of $3.6 million for Q1 2023, with a net loss of $4.3 million and an adjusted EBITDA loss of $3.1 million [37] - Operating expenses decreased by 26% year-over-year to $3.5 million, down from $4.8 million in the same quarter last year [17][29] - Cash collections for Q1 2023 were approximately $5 million, compared to $5.6 million in Q1 2022 and $4.3 million in Q4 2022 [39] Business Line Data and Key Metrics Changes - The total managed case volume for Q1 2023 was 5,200, reflecting a slight increase year-over-year [3][37] - The cost of revenues decreased by 13% to $3.4 million compared to $3.9 million in the prior year [38] Market Data and Key Metrics Changes - The company is experiencing challenges with reimbursement rates across the industry, with the time from claims submission to resolution remaining lengthy [30] - The total accounts receivable reserve was approximately $15.2 million, or 54% of outstanding gross accounts receivable, compared to $14 million or nearly 50% as of December 31, 2022 [16] Company Strategy and Development Direction - The company aims to achieve profitability on an adjusted EBITDA basis and positive cash flow from operations in the latter part of 2023 [8][34] - Plans are in place to exit MSA revenue sharing agreements by the end of Q2 2023, transitioning over 70% of remaining MSA volume to wholly-owned entities [19] - The company is actively evaluating tuck-in M&A opportunities in attractive markets to scale its business [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about improvements in the reimbursement process and believes the current challenges are temporal [4][10] - The company is focused on running leaner operations and reducing costs to adapt to ongoing lower reimbursement rates [18][24] Other Important Information - The company closed a public offering of 5 million common shares at $1.20 per share, which is expected to provide liquidity for growth and operational needs [12][34] - The company has filed for employee retention credits, expecting a cash refund from the IRS of approximately $3.3 million [13][21] Q&A Session Summary Question: What are the company's plans regarding the lawsuits in Louisiana? - Management is optimistic about settling one or both lawsuits prior to the year-end, which could materially impact cash position [24][42] Question: How does the company plan to improve cash collections? - The company is focusing on enhancing its revenue cycle management and has seen improvements in collections and cash management compared to competitors [9][31] Question: What is the outlook for the neuromonitoring market? - The company believes neuromonitoring is becoming a standard-of-care and is optimistic about expanding operations in high-performing markets like Texas and Colorado [10][32]