American Oncology Network, Inc. (NASDAQ: AONC), a leading oncology
platform with an innovative model of physician-led, community-based
oncology management, today announced financial results for the
three-month period (“First Quarter 2024”) ended March 31, 2024.
Todd Schonherz, AONC chief executive officer,
commented, “We delivered strong revenue growth in the first
quarter, continuing our momentum into 2024. During the quarter, we
announced a number of acquisitions that meaningfully grew the AON
footprint; we expanded in the Texas and Maryland markets, adding 17
new providers to the platform. Our momentum has continued into the
second quarter, as we’ve also announced partnerships expanding our
presence in Hawaii and Central Georgia, as well as the launch of
Meaningful Insights Biotech Analytics (MiBA), an innovative
healthcare technology startup which utilizes data analytics to
improve cancer care. These acquisitions and the creation of MiBA
allows us to ensure more patients have convenient and accessible
cancer care in their communities. We remain committed to delivering
the best outcomes for our patients and the highest level of support
for our physicians, while creating long-term value for our
shareholders.”
Three-month periods ended March 31, 2024 and March 31, 2023
Revenue was $364.3 million for the three-month
period ended March 31, 2024, as compared to $303.7 million for the
three-month period ended March 31, 2023, an increase of $60.6
million, or 20.0%. The overall increase was primarily attributable
to increased patient encounters of 7.1% between the comparable
periods, driving a $59.7 million increase in patient service
revenue. This revenue growth was constrained in part by
approximately $4.1 million of incremental implicit price
concessions associated with accounts receivable in our legacy
billing system as the Company transitioned its billing and
collection efforts to a new billing system in the fourth quarter of
2023.
For the three months ended March 31, 2024, cost
of revenue increased $76.4 million, or 27.4%, which was primarily
driven by higher drug and medical supply costs. Cost of revenue
also includes equity-based compensation of $13.3 million for the
quarter ended March 31, 2024, with no such costs incurred during
the comparable year ago quarter.
Net loss before non-controlling interest was
$24.9 million for the first quarter of 2024, as compared to net
loss before non-controlling interest of $1.5 million for the first
quarter of 2023.
Adjusted EBITDA was $2.0 million for the first
quarter of 2024, as compared to $4.1 million for the first quarter
of 2023, a decrease of $2.1 million. See “Key Non-GAAP Financial
Measures” Adjusted EBITDA table below.
Liquidity, Cash Flow, and Debt
- As of March 31,
2024, we had total liquidity of $132.7 million, composed of cash
and cash equivalents of $74.9 million, short-term marketable
securities of $30.1 million, $26.7 million of incremental borrowing
capacity under the PNC Loan Facility, and $1.0 million of
incremental borrowing capacity under the PNC Line of Credit.
- Net cash provided
by operating activities was $45.1 million, primarily driven by the
deferral of $48.3 million of drug payments that would have
otherwise been made in the first quarter of 2024, to the second
quarter of 2024, as a result of the Change Healthcare issue. This
$48.3 million will reduce operating cash flow during the second
quarter of 2024.
- As of March 31,
2024, we had $80.9 million outstanding under the PNC Loan Facility
and the PNC Line of Credit was undrawn.
Key Non-GAAP Financial Measures Used to Evaluate
Performance
This press release includes the non-GAAP
financial measure “Adjusted EBITDA”. Management views this metric
as a useful way to look at the performance of AONC operations
between periods and to exclude decisions on capital investment and
financing that might otherwise impact the review of profitability
of the business based on present market conditions. Management
believes this measure provides an additional way of viewing aspects
of AONC’s operations that, when viewed with the GAAP results,
provides a more complete understanding of AONC’s results of
operations and the factors and trends affecting the business.
Adjusted EBITDA is defined as net income prior
to interest income, interest expense, income taxes, and
depreciation and amortization, as adjusted to add back certain
other non-cash charges that may be recorded each year, such as
stock-compensation expense and non-cash valuation adjustments, as
well as non-recurring charges such as revenue cycle transformation
costs and transaction costs related to the Business Combination. We
believe these expenses and non-recurring charges are not considered
an indicator of ongoing company performance. The measures are used
as a supplement to GAAP results in evaluating certain aspects of
AONC business, as described below. We believe Adjusted EBITDA is
useful to investors in evaluating AONC performance because the
measure considers the performance of AONC operations, excluding
decisions made with respect to capital investment, financing, and
other non-recurring charges as outlined above.
AONC includes Adjusted EBITDA because it is an
important measure upon which management uses to assess the results
of operations, to evaluate factors and trends affecting the
business, and to plan and budget future periods. However, non-GAAP
financial measures should be considered a supplement to, and not as
a substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP. Non-GAAP financial measures
used by management may differ from the non-GAAP measures used by
other companies, including AONC’s competitors. Management
encourages investors and others to review AONC’s financial
information in its entirety, and not to rely on any single
financial measure. Adjusted EBITDA should not be considered as an
alternative to net income as an indicator of AONC performance or as
an alternative to any other measure prescribed by GAAP as there are
limitations to using such non-GAAP measures. These limitations are
compensated by providing disclosure of the differences between
Adjusted EBITDA and GAAP results, including providing a
reconciliation to GAAP results, to enable investors to perform
their own analysis of AONC’s operating results.
Adjusted EBITDA for recent comparative periods
is presented at the end of this earnings release.
Conference Call
AONC will host a conference call on Thursday,
May 16, 2024, at 8:30 am. Eastern Time to discuss our first quarter
2024 results. The conference call can be accessed live over the
phone by dialing 1-877-704-4453 (for the U.S.) or 1-201-389-0920
(for International). A telephonic replay of the conference call
will be available two hours after the call and can be accessed by
dialing 1-844-512-2921 (for the U.S.) or 1-412-317-6671 (for
International). The passcode for the call and replay is 13746298. A
live webcast of the conference call will also be available under
the Investor Relations section of AONC’s website at
investors.aoncology.com.
About American Oncology Network,
Inc.
American Oncology Network (AON) (Nasdaq: AONC)
is an alliance of physicians and seasoned healthcare leaders
partnering to ensure the long-term success and viability of
community oncology and other specialties. Founded in 2018, AON's
rapidly expanding network represents more than 240 providers
practicing across 21 states. AON pioneers innovative healthcare
solutions through its physician-led model, fostering value-based
care that improves patient outcomes while reducing costs and
expanding access to quality care. AON equips its network physicians
with the tools they need to thrive independently while providing
comprehensive support, integrated revenue-diversifying ancillary
services, and practice management expertise, enabling physicians to
focus on what matters most – providing the highest standard of care
for every patient. AON is committed to promoting health equity by
addressing disparities in cancer care and ensuring that all
patients have access to the care they need to achieve optimal
health outcomes. With a focus on innovation and collaboration, AON
is shaping the future of community oncology. Learn more at
www.AONcology.com.
Forward Looking Statements
This press release contains forward-looking
statements for purposes of the safe harbor provisions under the
United States Private Securities Litigation Reform Act of 1995,
including statements about the financial condition, results of
operations, earnings outlook and prospects of AONC. Any statements
that refer to projections, forecasts or other characterizations of
future events or circumstances, including any underlying
assumptions, are forward-looking statements. Forward-looking
statements are typically identified by words such as “plan,”
“believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,”
“forecast,” “project,” “continue,” “could,” “may,” “might,”
“possible,” “potential,” “predict,” “should,” “would” and other
similar words and expressions, but the absence of these words does
not mean that a statement is not forward-looking. The
forward-looking statements are based on current expectations and
projections about future events and various assumptions. AONC
cannot guarantee that it will actually achieve the plans,
intentions, or expectations disclosed in its forward-looking
statements and you should not place undue reliance on AONC’s
forward-looking statements.
These forward-looking statements involve a
number of risks, uncertainties (many of which are beyond the
control of AONC), or other assumptions that may cause actual
results or performance to differ materially from those expressed or
implied by these forward-looking statements. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in
AONC’s filings with the Securities and Exchange Commission,
including “Risk Factors” in AONC’s most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. The risks described in the “Risk Factors” sections are
not exhaustive. New risk factors emerge from time to time, and it
is not possible to predict all such risk factors, nor can AONC
assess the impact of all such risk factors on the business of AONC,
or the extent to which any factor or combination of factors may
cause actual results to differ materially from those contained in
any forward-looking statement. The statements made herein are made
as of the date of this press release and, except as may be required
by law, AONC undertakes no obligation to update them, whether as a
result of new information, developments, or otherwise.
The following table summarizes AONC’s
consolidated results of operations for the periods indicated
(amounts in thousands):
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
Patient service revenue, net |
$ |
361,508 |
|
|
$ |
301,773 |
|
Other revenue |
|
2,831 |
|
|
|
1,958 |
|
Total revenue |
|
364,339 |
|
|
|
303,731 |
|
Costs and
expenses |
|
|
|
Cost of revenue (1) |
|
354,948 |
|
|
|
278,534 |
|
General and administrative expenses (2) |
|
28,277 |
|
|
|
23,717 |
|
Transaction expenses |
|
352 |
|
|
|
1,971 |
|
Total costs and expenses |
|
383,577 |
|
|
|
304,222 |
|
Loss from operations |
|
(19,238 |
) |
|
|
(491 |
) |
|
|
|
|
Other income
(expense) |
|
|
|
Interest expense |
|
(1,763 |
) |
|
|
(1,417 |
) |
Interest income |
|
793 |
|
|
|
57 |
|
Other (expense) income, net |
|
(1,908 |
) |
|
|
466 |
|
Loss before income taxes, equity loss in affiliate, and
noncontrolling interest |
|
(22,116 |
) |
|
|
(1,385 |
) |
Income tax expense |
|
2,894 |
|
|
|
- |
|
Loss before equity loss in affiliate and noncontrolling
interest |
|
(25,010 |
) |
|
|
(1,385 |
) |
Equity in loss of affiliate |
|
49 |
|
|
|
(101 |
) |
Net loss before noncontrolling interest |
|
(24,961 |
) |
|
|
(1,486 |
) |
Net income attributable to noncontrolling interest |
|
43 |
|
|
|
- |
|
Net loss before redeemable noncontrolling interest |
|
(25,004 |
) |
|
|
(1,486 |
) |
Net loss and noncontrolling interest attributable to Legacy AON
Stockholders prior to the reverse recapitalization |
|
- |
|
|
|
(1,486 |
) |
Net loss attributable to redeemable noncontrolling interest |
|
(17,163 |
) |
|
|
- |
|
Net loss attributable to Class A Common
Stockholders |
$ |
(7,841 |
) |
|
$ |
- |
|
|
|
|
|
Loss per share of Class A
Common Stock: |
|
|
|
Basic |
$ |
(1.22 |
) |
|
$ |
- |
|
Diluted |
$ |
(1.22 |
) |
|
$ |
- |
|
Weighted average shares of
Class A Common Stock Outstanding: |
|
|
|
Basic |
|
7,527,882 |
|
|
|
- |
|
Diluted |
|
7,527,882 |
|
|
|
- |
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
Unrealized gain (loss) on marketable securities |
|
(22 |
) |
|
|
64 |
|
Other comprehensive gain (loss) |
|
(22 |
) |
|
|
64 |
|
Comprehensive loss |
$ |
(25,026 |
) |
|
$ |
(1,422 |
) |
Other comprehensive loss attributable to Legacy AON
Shareholders |
|
— |
|
|
|
(1,422 |
) |
Other comprehensive loss attributable to noncontrolling
interests |
|
(17,180 |
) |
|
|
— |
|
Total comprehensive loss attributable to Class A Common
Stockholders |
$ |
(7,846 |
) |
|
$ |
— |
|
(1) Includes related party inventory expense of $310,877 and
$178,166 for the three months ended March 31, 2024 and 2023,
respectively.(2) Includes related party rent of $706 and $679 for
the three months ended March 31, 2024 and 2023,
respectively.
The following table provides a reconciliation of net income, the
most closely comparable GAAP financial measure, to Adjusted
EBITDA:
|
|
Three Months Ended March 31, |
|
Change |
(dollars in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
Net loss |
|
$ |
(24,961 |
) |
|
$ |
(1,486 |
) |
|
$ |
(23,475 |
) |
|
|
* |
|
Interest expense, net |
|
|
970 |
|
|
|
1,360 |
|
|
|
(390 |
) |
|
|
(28.7 |
%) |
Depreciation and amortization |
|
|
2,506 |
|
|
|
2,207 |
|
|
|
299 |
|
|
|
13.5 |
% |
Income tax expense |
|
|
2,894 |
|
|
|
— |
|
|
|
2,894 |
|
|
|
* |
|
Non-cash stock compensation |
|
|
13,353 |
|
|
|
— |
|
|
|
13,353 |
|
|
|
* |
|
Revenue cycle transformation (a) |
|
|
4,736 |
|
|
|
— |
|
|
|
4,736 |
|
|
|
* |
|
Gain/loss on derivative liabilities |
|
|
1,590 |
|
|
|
— |
|
|
|
1,590 |
|
|
|
* |
|
Transaction expenses (b) |
|
|
352 |
|
|
|
1,971 |
|
|
|
(1,619 |
) |
|
|
(82.1 |
%) |
Acquisition related costs (c) |
|
|
522 |
|
|
|
— |
|
|
|
522 |
|
|
|
* |
|
Adjusted EBITDA |
|
$ |
1,962 |
|
|
$ |
4,052 |
|
|
$ |
(2,090 |
) |
|
|
(51.6 |
%) |
* — % not meaningful(a) During the three months
ended March 31, 2024, represents approximately $4.1 million of
incremental implicit price concessions associated with exiting a
legacy billing system which commenced in the fourth quarter, and
approximately $0.6 million of duplicative billing system costs as
the legacy system is sunset.(b) Transaction expenses are one-time
non-recurring and are a result of expenses incurred in connection
with the Business Combination.(c) Costs associated with activity
related to M&A deals that have been completed and/or are to be
completed.
Investor Contact:Solebury Strategic
CommunicationsInvestors@AONcology.com
American Oncology Network (NASDAQ:AONC)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
American Oncology Network (NASDAQ:AONC)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024