Assure Holdings Corp. (the “
Company” or
“
Assure”) (NASDAQ: IONM), a provider of
intraoperative neuromonitoring (“
IONM”) and remote
neurology services, today reported its preliminary financial
results for the first quarter ended March 31, 2023.
Key Financial Highlights (in thousands of
USD) |
1Q'23 |
1Q'22 |
Gross Revenue |
|
$ 4,790 |
|
|
|
$ 9,136 |
|
Accounts
Receivable Reserve |
|
(1,238 |
) |
|
|
(4,435 |
) |
Revenue,
net |
|
3,552 |
|
|
|
4,701 |
|
Gross
margin |
|
179 |
|
|
|
824 |
|
Total
Operating Expenses |
|
3,523 |
|
|
|
4,751 |
|
Net
loss |
|
(4,314 |
) |
|
|
(2,459 |
) |
Adjusted EBITDA |
|
(3,087 |
) |
|
|
(1,661 |
) |
Management Commentary
“First quarter 2023 cash receipts increased from
the fourth quarter of 2022 and this strength has continued into the
second quarter,” said John Farlinger, Assure’s executive chairman
and CEO. “We collected approximately $4.5 million of cash and
reduced our average days to collect the first payment on services
rendered by 16 days in the first quarter. As a reminder, we
experience seasonality during the first quarter each year as more
of our volume is non-commercial, resulting in reduced revenue.
During 2023, we have continued to experience weakness in
reimbursement rates in certain markets that began in the second
half of 2022. Although managed cases improved slightly
year-over-year, gross revenue declined. However, we have continued
making strides towards improving our cash receipts and reducing
days to collect despite the challenging reimbursement environment
that persists across the industry.”
Farlinger continued, “On the cost side, we
realized the benefits of the cost reduction actions we initiated in
2022 and the first quarter of 2023. Our operating expenses in the
first quarter were down 26% compared to a year-ago and 19%
sequentially, when normalized for $6.6 million in one-time,
non-cash expenses in the fourth quarter of 2022.”
Farlinger concluded, “We provide an essential
service for surgeons, and demand for neuromonitoring remained
robust in the first quarter of 2023. Intraoperative neuromonitoring
is essential for invasive surgeries that place the nervous system
at risk and is considered the ‘standard of care’ in the U.S. We are
confident in the actions we are taking to reduce costs, increase
velocity of cash collections and scale our business in markets with
more attractive reimbursement rates and believe our financial
results for the first quarter of 2023 demonstrate the progress of
these actions.”
The foregoing and following financial results
are preliminary in nature. Final financial results and other
disclosures will be reported in Assure's quarterly report for the
quarter ended March 31, 2023 on Form 10-Q and may differ materially
from the results and disclosures today due to, among other things,
the completion of final review procedures, the occurrence of
subsequent events or the discovery of additional information. The
Form 10-Q is anticipated to be filed with the Securities and
Exchange Commission on May 15, 2023. You are encouraged to review
the Form 10-Q in detail.
Recent Business Highlights
- Approximately
400 claims filed in the federal portal awaiting adjudication under
the No Surprises Act.
- Expanded to a
new market with first neuromonitoring case in the state of
Montana.
- Filed for the
Employee Retention Credit (ERC) and expects to file amended federal
tax returns for the years ended 2020 and 2021 and expects a cash
refund from the IRS of approximately $3.3 million.
- Filed a
multi-million-dollar lawsuit against a Louisiana orthopedic and
spine surgical center related to the reimbursement of services
provided. The case is scheduled for a jury trial in July 2023.
- Filed a second
lawsuit against a Louisiana orthopedic and spine surgical center
related to the reimbursement of services provided.
First Quarter 2023 Financial Summary vs. First Quarter
2022
- Managed cases
were 5,200 versus 5,100.
- Net revenue was
$3.6 million versus $4.7 million.
- Operating
expense was $3.5 million versus $4.8 million, a reduction of
26%.
- Net loss was
($4.3) million versus ($2.5) million, 1Q’22 includes a one-time
gain on loan forgiveness of $1.7 million.
- Adjusted EBITDA
was ($3.1) million versus ($1.7) million*.
- Cash collected
on Assure-owned professional and technical services entities was
$4.5 million versus $5.6 million. Assure exited certain
underperforming markets during the third quarter 2022 reducing
total cash receipts but improving margin and profitability.
- Cash used in
operations was $660 thousand versus $2.3 million reflecting
increased velocity of cash receipts and implicit price concession
charges.
*See Explanation of Non-GAAP Financial Measures
below for an explanation of Adjusted EBITDA and a reconciliation to
GAAP financial measures. Note, 1Q’22 includes a one-time $1.7
million benefit as a component of other income related to the gain
on paycheck protection program loan forgiveness.
Explanation of Non-GAAP Financial
Measures
This press release includes certain measures
which have not been prepared in accordance with Generally Accepted
Accounting Principles (“GAAP”) such as Adjusted EBITDA. We define
EBITDA as net income/(loss) before interest expense, provision for
income taxes, depreciation and amortization. We calculate Adjusted
EBITDA as EBITDA further adjusted to exclude the effects of the
following items: share-based compensation and share option
liability gain (loss). We exclude share-based compensation because
this represents a non-cash charge and our mix of cash and
share-based compensation may differ from other companies, which
effects the comparability of results of operations and liquidity.
Adjusted EBITDA is not an earnings measure recognized by GAAP and
does not have a standardized meaning prescribed by GAAP. Management
believes that Adjusted EBITDA is an appropriate measure in
evaluating the Company’s operating performance. Management uses
Adjusted EBITDA to evaluate our ongoing operations and for internal
planning and forecasting purposes. Management believes that
non-GAAP financial information, when taken collectively, may be
helpful to investors because it provides consistency and
comparability with past financial performance. Readers are
cautioned that Adjusted EBITDA should not be construed as an
alternative to net income (as determined under GAAP), as an
indicator of financial performance or to cash flow from operating
activities (as determined under GAAP) or as a measure of liquidity
and cash flow. Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures
as an analytical tool. Other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. We attempt to
compensate for these limitations by providing specific information
regarding the GAAP items excluded from these non-GAAP financial
measures.
Investors are encouraged to review the related
GAAP financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures presented below and not rely on any single financial
measure to evaluate our business.
Key Performance Metrics
This announcement contains key performance
metrics that management of the Company utilizes to determine
operational performance from period to period. These metrics
include managed cases and remote neurology managed cases. We define
managed cases as all technical cases Assure performs and any cases
where the professional bill is from a 100% owned Assure entity and
excludes cases when a global bill is presented and we calculate it
based on bills presented during the relevant measurement period. We
define remote neurology managed cases as a subset of managed cases
where Assure’s remote neurology platform is utilized and billed.
Management believes that managed cases and remote neurology managed
cases are important measures of the Company’s operational
performance because they are a consistent measurement to evaluate
patient revenue streams.
About Assure Holdings
Assure Holdings Corp. is a best-in-class
provider of outsourced intraoperative neuromonitoring and remote
neurology services. The Company delivers a turnkey suite of
clinical and operational services to support surgeons and medical
facilities during invasive procedures that place the nervous system
at risk including neurosurgery, spine, cardiovascular, orthopedic
and ear, nose and throat surgeries. Assure employs highly trained
technologists that provide a direct point of contact in the
operating room. Physicians employed through Assure subsidiaries
simultaneously monitor the functional integrity of patients’ neural
structures throughout the procedure communicating in real-time with
the surgeon and technologist. Accredited by The Joint Commission,
Assure’s mission is to provide exceptional surgical care and a
positive patient experience. For more information, visit the
company’s website at www.assureneuromonitoring.com.
Forward-Looking Statements
This news release may contain “forward-looking
statements” within the meaning of applicable securities laws.
Forward-looking statements may generally be identified by the use
of the words "anticipates," "expects," "intends," "plans,"
"should," "could," "would," "may," "will," "believes," "estimates,"
"potential," "target," or "continue" and variations or similar
expressions. Forward-looking statements include, but are not
limited to, the financial results presented herein which are
subject to final review procedures and subsequent events. These
statements are based upon the current expectations and beliefs of
management and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
described in the forward-looking statements. These risks include
risks regarding our patient volume or cases not growing as
expected, or decreasing, which could impact revenue and
profitability; unfavorable economic conditions could have an
adverse effect on our business; risks related to increased leverage
resulting from incurring additional debt; the policies of health
insurance carriers may affect the amount of revenue we receive; our
ability to successfully market and sell our products and services;
we may be subject to competition and technological risk which may
impact the price and amount of services we can sell and the nature
of services we can provide; regulatory changes that are unfavorable
in the states where our operations are conducted or concentrated;
our ability to comply and the cost of compliance with extensive
existing regulation and any changes or amendments thereto; changes
within the medical industry and third-party reimbursement policies
and our estimates of associated timing and costs with the same; our
ability to adequately forecast expansion and the Company’s
management of anticipated growth; and risks and uncertainties
discussed in our most recent annual and quarterly reports filed
with the United States Securities and Exchange Commission,
including our annual report for the fiscal year ended December 1,
2022 on Form 10-K filed with the Securities and Exchange Commission
on March 31, 2023, and with the Canadian securities regulators and
available on the Company’s profiles on EDGAR at www.sec.gov and
SEDAR at www.sedar.com, which risks and uncertainties are
incorporated herein by reference. Readers are cautioned not to
place undue reliance on forward-looking statements. Except as
required by law, Assure does not intend, and undertakes no
obligation, to update any forward-looking statements to reflect, in
particular, new information or future events.
Contact
Brett Maas, Managing PrincipalHayden IR ionm@haydenir.com (646)
536-7331
|
ASSURE HOLDINGS CORP.CONSOLIDATED BALANCE
SHEETS(in thousands of Dollars) |
|
|
|
March 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
|
$ |
505 |
|
|
$ |
905 |
|
Accounts receivable, net |
|
|
12,887 |
|
|
|
15,143 |
|
Other current assets |
|
|
401 |
|
|
|
340 |
|
Due from MSAs |
|
|
4,797 |
|
|
|
5,006 |
|
Total current assets |
|
|
18,590 |
|
|
|
21,394 |
|
Equity method investments |
|
|
273 |
|
|
|
310 |
|
Fixed assets |
|
|
66 |
|
|
|
76 |
|
Operating lease right of use asset |
|
|
617 |
|
|
|
672 |
|
Finance lease right of use asset |
|
|
305 |
|
|
|
382 |
|
Intangibles, net |
|
|
293 |
|
|
|
390 |
|
Goodwill |
|
|
1,025 |
|
|
|
1,025 |
|
Total assets |
|
$ |
21,169 |
|
|
$ |
24,249 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
3,615 |
|
|
$ |
2,919 |
|
Current portion of debt |
|
|
2,620 |
|
|
|
965 |
|
Current portion of lease liability |
|
|
524 |
|
|
|
550 |
|
Current portion of acquisition liability |
|
|
306 |
|
|
|
306 |
|
Total current liabilities |
|
|
7,201 |
|
|
|
4,971 |
|
Lease liability, net of current portion |
|
|
826 |
|
|
|
964 |
|
Debt, net of current portion |
|
|
10,429 |
|
|
|
11,874 |
|
Acquisition liability |
|
|
102 |
|
|
|
179 |
|
Deferred tax liability, net |
|
|
1,170 |
|
|
|
796 |
|
Total liabilities |
|
|
19,728 |
|
|
|
18,784 |
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Common stock |
|
|
22 |
|
|
|
21 |
|
Additional paid-in
capital |
|
|
50,289 |
|
|
|
50,000 |
|
Accumulated deficit |
|
|
(48,870 |
) |
|
|
(44,556 |
) |
Total shareholders’ equity |
|
|
1,441 |
|
|
|
5,465 |
|
Total liabilities and shareholders’ equity |
|
$ |
21,169 |
|
|
$ |
24,249 |
|
|
ASSURE HOLDINGS CORP.CONSOLIDATED
STATEMENT OF OPERATIONS(in thousands of Dollars, except
per share amounts) |
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Technical services |
|
$ |
1,234 |
|
|
$ |
1,396 |
|
Professional services |
|
|
1,874 |
|
|
|
2,473 |
|
Other |
|
|
444 |
|
|
|
832 |
|
Total revenue |
|
|
3,552 |
|
|
|
4,701 |
|
Cost of revenues |
|
|
3,373 |
|
|
|
3,877 |
|
Gross margin |
|
|
179 |
|
|
|
824 |
|
Operating expenses |
|
|
|
|
|
|
General and
administrative |
|
|
3,211 |
|
|
|
4,241 |
|
Sales and marketing |
|
|
128 |
|
|
|
252 |
|
Depreciation and
amortization |
|
|
184 |
|
|
|
258 |
|
Total operating expenses |
|
|
3,523 |
|
|
|
4,751 |
|
Loss from operations |
|
|
(3,344 |
) |
|
|
(3,927 |
) |
Other income (expenses) |
|
|
|
|
|
|
Income (loss) from equity method investments |
|
|
25 |
|
|
|
5 |
|
Gain on Paycheck Protection
Program loan forgiveness |
|
|
— |
|
|
|
1,665 |
|
Other income (expense), net |
|
|
58 |
|
|
|
38 |
|
Accretion expense |
|
|
(170 |
) |
|
|
(170 |
) |
Interest expense, net |
|
|
(509 |
) |
|
|
(407 |
) |
Total other expense |
|
|
(596 |
) |
|
|
1,131 |
|
Loss before income taxes |
|
|
(3,940 |
) |
|
|
(2,796 |
) |
Income tax benefit |
|
|
(374 |
) |
|
|
337 |
|
Net loss |
|
$ |
(4,314 |
) |
|
$ |
(2,459 |
) |
Loss per share |
|
|
|
|
|
|
Basic |
|
$ |
(4.09 |
) |
|
$ |
(3.81 |
) |
Diluted |
|
$ |
(4.09 |
) |
|
$ |
(3.81 |
) |
Weighted average number of shares used in per share calculation –
basic |
|
|
1,054,933 |
|
|
|
645,950 |
|
Weighted average number of shares used in per share calculation –
diluted |
|
|
1,054,933 |
|
|
|
645,950 |
|
|
ASSURE HOLDINGS CORP.RECONCILIATION OF
NON-GAAP ADJUSTED EBITDA TO NET LOSS (in thousands of
Dollars)(unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
2022 |
|
EBITDA |
|
|
|
|
Net loss |
|
|
($ 4,314 |
) |
|
|
($ 2,459 |
) |
Interest expense |
|
|
509 |
|
|
|
407 |
|
Accretion expense |
|
|
170 |
|
|
|
170 |
|
Income tax |
|
|
374 |
|
|
|
(337 |
) |
Depreciation and
amortization |
|
|
184 |
|
|
|
258 |
|
EBITDA |
|
|
(3,077 |
) |
|
|
(1,961 |
) |
Stock-based compensation |
|
|
(10 |
) |
|
|
323 |
|
Provision for option
liability |
|
|
— |
|
|
|
(23 |
) |
Adjusted EBITDA |
|
|
($ 3,087 |
) |
|
|
($ 1,661 |
) |
Assure (NASDAQ:IONM)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Assure (NASDAQ:IONM)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024