The Oncology Institute, Inc. (NASDAQ: TOI) (“TOI” or the
“Company”), one of the largest value-based community oncology
groups in the United States, today reported financial results for
its three and six months ended June 30, 2024 and updated its
full year 2024 guidance.
Recent Operational Highlights
Include
- 76% increase in Dispensary segment revenue compared to prior
year quarter
- 3 new capitation contracts signed across 2 states including
both medical and radiation oncology services, which brings our new
2024 newly signed capitation contracts to 10
- Exploring strategic alternatives to maximize shareholder
value
Second Quarter 2024 Financial
Highlights
- Consolidated revenue of $99 million, an increase of 22.9% from
$80 million compared to the prior year quarter
- Gross profit of $13 million, a decrease of 13.9% compared to
the prior year quarter, and gross margin of 13.2%, a decrease from
18.8% in the prior year quarter
- Net loss of $15.5 million compared to net loss of $16.9 million
for the prior year quarter
- Basic and diluted (loss) earnings per share of $(0.17) and
$(0.17), respectively, compared to $(0.19) and $(0.19),
respectively, for the prior year quarter
- Adjusted EBITDA of $(8.7) million compared to $(6.9) million
for the prior year quarter
- Cash, cash equivalents, and marketable securities of $46.4
million as of June 30, 2024
Management Commentary
Daniel Virnich, CEO of TOI, commented, "I am very pleased with
our performance in the second quarter of 2024, as we delivered
strong growth in revenue, while further reducing SG&A. Our Oral
drug revenue has seen tremendous growth as we continue to break
monthly fill records. While we are disappointed by the recent
pressured performance, we feel the worst is behind us. Looking
forward to the remainder of the year, 2023 DIR run-out is
substantially complete, IV margins in Q3 are improving and with
most of the capitated contracts signed in the first half of the
year going live in Q3, we expect significant improvement in our net
loss and in our adjusted EBITDA in the second half of the
year."
Outlook for Fiscal Year
2024
TOI uses Adjusted EBITDA, a non-GAAP metric, as
an additional tool to assess its operational performance. See
"Financial Information: Non-GAAP Financial Measures" below. In
reliance on the unreasonable efforts exception provided under
Regulation S-K, TOI is not reasonably able to provide a
quantitative reconciliation for forward-looking information of
Adjusted EBITDA to net (loss) income, the most directly comparable
GAAP financial measure, without unreasonable efforts due to
uncertainties regarding taxes, share-based compensation, goodwill
impairment charges, change in fair value of liabilities, unrealized
(gains) losses on investments, practice acquisition-related costs,
consulting and legal fees, transaction costs and other non-cash
items. The variability of these items could have an unpredictable,
and potentially significant, impact on TOI’s future GAAP financial
result.
TOI is updating its full-year 2024 guidance as
we have experienced slower than expected margin growth primarily
related to the prior year direct and indirect remuneration (DIR)
fees run out in 2024 and the termination of a capitation contract.
Additionally, we are constantly evaluating opportunities to create
efficiencies and reduce costs, while ensuring we maintain the
infrastructure needed to continue to provide quality patient care
and support our growth. TOI expects interest expense in the range
of $4 million to $5 million, other adjustment add backs in the
range of $2 million to $4 million, and depreciation and
amortization in the range of $4 million to $6 million.
Consequently, TOI updates its full year 2024 guidance as
follows:
|
|
2024 Guidance - Updated |
2024 Guidance - Previous |
|
Revenue |
$400 to $415 million |
$400 to $415 million |
|
Gross Profit |
$62 to $69 million |
$68 to $79 million |
|
Adjusted EBITDA |
$(21) to $(28) million |
$(8) to $(18) million |
| |
|
|
TOI's achievement of the anticipated results is
subject to risks and uncertainties, including those disclosed in
its filings with the U.S. Securities and Exchange Commission. The
outlook does not take into account the impact of any unanticipated
developments in the business or changes in the operating
environment, nor does it take into account the impact of TOI's
acquisitions, dispositions or financings. TOI's outlook assumes a
largely reopened global market, which would be negatively impacted
if closures or other restrictive measures persist or are
reimplemented.
Second Quarter 2024 Results (for the
three months ended June 30, 2024)
Consolidated revenue for Q2 2024 was $98.6
million, an increase of 22.9% compared to Q2 2023, and a 4.1%
increase compared to Q1 2024.
Revenue for patient services was $52.5 million,
down 1.8% compared to Q2 2023. Dispensary revenue increased 76.4%
compared to Q2 2023 primarily due to an increase in the number of
filled prescriptions for our California pharmacy. Clinical trials
& other revenue increased by 4.7% compared to Q2 2023 primarily
due to an increase in California Proposition 56 revenue and TOI
Clinical Research revenue.
Gross profit in Q2 2024 was $13 million, a
decrease of 13.8% compared to Q2 2023. The decrease was primarily
driven by ongoing cost management fluctuations and DIR fee run out
of oral and IV drugs and. Gross profit is calculated by subtracting
direct costs of patient services, dispensary, and clinical trials
and other from consolidated revenues.
Selling, general and administrative ("SG&A")
expenses in Q2 2024 were $27.9 million or 28.3% of revenue,
compared with $28.7 million, or 35.8% of revenue, in Q2 2023.
During Q2 2024, share-based compensation expense was $3.4 million.
The decrease in SG&A expenses was due to a re-alignment of our
vendors and a decrease in share-based compensation expense of
approximately $700 thousand compared to same quarter prior
year.
Net loss for Q2 2024 was $15.5 million, a
decrease of $1.4 million compared to Q2 2023 primarily due to a
change in the fair value of conversion option derivative
liabilities of $2.6 million resulting in a gain in Q2 2024 as
compared to Q2 2023, offset by an increase in net interest expense
in Q2 2024 of $0.5 million as compared to Q2 2023.
Adjusted EBITDA was $(8.7) million, a decrease
of $1.8 million compared to Q2 2023, primarily due to a decrease in
gross profit.
First Half 2024 Results (for the six
months ended June 30, 2024)
Consolidated revenue for the first half of 2024 was $193.2
million, an increase of 23.5% compared to the first half of
2023.
Revenue for patient services in the first half of 2024 was
$104.9 million, up 1.2% compared to the first half of 2023.
Dispensary revenue increased 70.2% compared to the first half of
2023 due to an increase in the number of filled prescriptions
related to our California pharmacy. Clinical trials & other
revenue increased by 28.3% compared to the first half of 2023
primarily due to an increase in California Proposition 56 revenue
and TOI Clinical Research revenue.
Gross profit in the first half of 2024 was $25.0 million, a
decrease of 14.4% compared to the first half of 2023. The decrease
was primarily driven by ongoing cost management fluctuations and
DIR fee run out of oral and IV drugs. Gross profit is calculated by
subtracting direct costs of patient services, dispensary, and
clinical trials and other from consolidated revenues.
SG&A expenses in the first half of 2024 were $56.3 million
or 29.1% of revenue, compared with $57.6 million or 36.8% of
revenue, in the first half of 2023. During the first half of
2024, share-based compensation expense was $7.5 million compared to
$9.1 million for the same period of 2023.
Net loss for the first half of 2024 was $35.4 million, a
decrease of $11.5 million compared to the first half of 2023
primarily due to a $16.9 million goodwill impairment in the first
half of 2023 that did not occur in the same period of 2024.
Adjusted EBITDA was $(19.7) million, a decrease of $5.3 million
compared to the first half of 2023, primarily due to a decrease in
gross profit.
Review of Strategic
Alternatives
TOI has also announced that its Board of
Directors, in consultation with management and financial and legal
advisors, has unanimously decided to initiate a full review of a
broad range of alternatives to maximize shareholder value. To
assist in this process, TOI has engaged Leerink Partners as its
financial advisor and Latham & Watkins LLP as its legal
advisor. The Board has not set a timetable for completion of
its review. There can be no assurance that this review will result
in a transaction or other alternative of any kind. The Company does
not intend to provide updates on its review until it deems further
disclosure is appropriate or required.
Webcast and Conference Call
TOI will host a conference call on Tuesday,
August 13, 2024 at 5:00 p.m. (Eastern Time) to discuss second
quarter results and management’s outlook for future financial and
operational performance.
The conference call can be accessed live over
the phone by dialing 1-877-407-0789, or for international callers,
1-201-689-8562. A replay will be available two hours after the call
and can be accessed by dialing 1-844-512-2921, or for international
callers, 1-412-317-6671. The passcode for the live call and the
replay is 13744947. The replay will be available until August 20,
2024.
Interested investors and other parties may also
listen to a simultaneous webcast of the conference call by logging
onto the Investor Relations section of TOI's website at
https://investors.theoncologyinstitute.com.
About The Oncology Institute,
Inc.
Founded in 2007, TOI is advancing oncology by
delivering highly specialized, value-based cancer care in the
community setting. TOI offers cutting-edge, evidence-based cancer
care to a population of approximately 2.1 million patients
including clinical trials, transfusions, and other services
traditionally associated with the most advanced care delivery
organizations. With nearly 126 employed clinicians and more than
700 teammates in over 73 clinic locations and growing, TOI is
changing oncology for the better. For more information visit
www.theoncologyinstitute.com.
Forward-Looking Statements
This press release includes certain statements
that are not historical facts but are forward-looking statements
for purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as
“preliminary,” “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “should,” “would,” “plan,”
“project,” “predict,” “potential,” “guidance,” “approximately,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding projections,
anticipated financial results, estimates and forecasts of revenue
and other financial and performance metrics and projections of
market opportunity and expectations. These statements are based on
various assumptions and on the current expectations of TOI and are
not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and are not
intended to serve as, and must not be relied on by anyone as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and will differ from assumptions. Many
actual events and circumstances are beyond the control of TOI.
These forward-looking statements are subject to a number of risks
and uncertainties, including the accuracy of the assumptions
underlying the 2024 outlook discussed herein, the outcome of
judicial and administrative proceedings to which TOI may become a
party or investigations to which TOI may become or is subject that
could interrupt or limit TOI’s operations, result in adverse
judgments, settlements or fines and create negative publicity;
changes in TOI’s patient or payors' preferences, prospects and the
competitive conditions prevailing in the healthcare sector; failure
to continue to meet stock exchange listing standards; the impact of
COVID-19 on TOI’s business; those factors discussed in the
documents of TOI filed, or to be filed, with the SEC, including the
Item 1A. "Risk Factors" section of TOI's Annual Report on Form 10-K
for the year ended December 31, 2023 filed with the SEC on March
28, 2024 and any subsequent Quarterly Reports on Form 10-Q or
Current Reports on Form 8-K. If the risks materialize or
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that TOI currently is evaluating or does
not presently know or that TOI currently believes are immaterial
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect TOI’s plans or forecasts of future events and
views as of the date of this press release. TOI anticipates that
subsequent events and developments will cause TOI’s assessments to
change. TOI does not undertake any obligation to update any of
these forward-looking statements. These forward-looking statements
should not be relied upon as representing TOI’s assessments as of
any date subsequent to the date of this press release. Accordingly,
undue reliance should not be placed upon the forward-looking
statements.
Financial Information; Non-GAAP
Financial Measures
Some of the financial information and data
contained in this press release, such as Adjusted EBITDA, have not
been prepared in accordance with United States generally accepted
accounting principles (“GAAP”). TOI’s non-GAAP financial measures
may be different from non-GAAP financial measures used by other
companies. The presentation of non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial measures determined in accordance with GAAP.
Because of the limitations of non-GAAP financial measures, you
should consider the non-GAAP financial measures presented in this
press release in conjunction with TOI’s financial statements and
the related notes thereto.
TOI believes that the use of Adjusted EBITDA
provides an additional tool to assess operational performance and
results of our performance to plan and forecast future periods, and
factors and trends in, and in comparing our financial measures
with, other similar companies, many of which present similar
non-GAAP financial measures to investors. The principal limitation
of Adjusted EBITDA is that it excludes significant expenses and
income that are required by GAAP to be recorded in TOI's financial
statements.
TOI defines Adjusted EBITDA as net (loss) income
plus depreciation, amortization, interest, taxes, non-cash items,
share-based compensation, goodwill impairment charges, change in
fair value of liabilities, unrealized gains or losses on
investments and other adjustments to add-back the following:
consulting and legal fees related to acquisitions, one-time
consulting and legal fees related to certain advisory projects,
software implementations and debt or equity financings, severance
expense and temporary labor and recruiting charges to build out our
corporate infrastructure. A reconciliation of Adjusted EBITDA to
net loss, the most comparable GAAP metric, is set forth below.
|
Adjusted EBITDA Reconciliation |
|
|
| |
Three Months Ended June 30, |
|
Change |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
Net loss |
$ |
(15,479 |
) |
|
$ |
(16,897 |
) |
|
$ |
1,418 |
|
|
|
(8.4 |
)% |
| Depreciation and
amortization |
|
1,518 |
|
|
|
1,329 |
|
|
|
189 |
|
|
|
14.2 |
% |
| Interest expense, net |
|
2,118 |
|
|
|
1,638 |
|
|
|
480 |
|
|
|
29.3 |
% |
| Income tax expense |
|
— |
|
|
|
99 |
|
|
|
(99 |
) |
|
|
(100.0 |
)% |
| Non-cash addbacks(1) |
|
(69 |
) |
|
|
23 |
|
|
|
(92 |
) |
|
|
(400.0 |
)% |
| Share-based compensation |
|
3,387 |
|
|
|
4,106 |
|
|
|
(719 |
) |
|
|
(17.5 |
)% |
| Changes in fair value of
liabilities |
|
(3,120 |
) |
|
|
(136 |
) |
|
|
(2,984 |
) |
|
|
2,194.1 |
% |
| Unrealized (gains) losses on
investments |
|
(34 |
) |
|
|
267 |
|
|
|
(301 |
) |
|
|
(112.7 |
)% |
| Practice acquisition-related
costs(2) |
|
— |
|
|
|
55 |
|
|
|
(55 |
) |
|
|
(100.0 |
)% |
| Post-combination compensation
expense(3) |
|
186 |
|
|
|
581 |
|
|
|
(395 |
) |
|
|
(68.0 |
)% |
| Consulting and legal
fees(4) |
|
245 |
|
|
|
929 |
|
|
|
(684 |
) |
|
|
(73.6 |
)% |
| Infrastructure and workforce
costs(5) |
|
2,539 |
|
|
|
1,042 |
|
|
|
1,497 |
|
|
|
143.7 |
% |
| Transaction costs(6) |
|
— |
|
|
|
20 |
|
|
|
(20 |
) |
|
|
(100.0 |
)% |
| Adjusted
EBITDA |
$ |
(8,709 |
) |
|
$ |
(6,944 |
) |
|
$ |
(1,765 |
) |
|
|
25.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the three months ended June 30, 2024,
non-cash addbacks were primarily comprised of non-cash rent of $107
offset by net credit loss of $37. During the three months ended
June 30, 2023, non-cash addbacks were primarily comprised of net
credit recovery of $2 and non-cash rent of $26.
(2) Practice acquisition-related costs were
comprised of consulting and legal fees incurred to perform due
diligence, execute, and integrate acquisitions of various oncology
practices.
(3) Deferred consideration payments for practice
acquisitions that are contingent upon the seller’s future
employment at the Company.
(4) Consulting and legal fees were comprised of
a subset of the Company’s total consulting and legal fees, and
related to certain non-recurring advisory projects during the three
months ended June 30, 2024. During the three months ended June 30,
2023, these fees related to non-recurring advisory projects and
software implementations.
(5) Infrastructure and workforce costs were
comprised of recruiting expenses to build out corporate
infrastructure of $336 and $430, software implementation fees of
$36 and $22, severance expenses resulting from cost rationalization
programs of $141 and $250, temporary labor of $74 and $339 and
non-recurring legal fees related to infrastructure build out of
$1,830 and $0 during the three months ended June 30, 2024 and 2023,
respectively.
(6) Transaction costs incurred during the three
months ended June 30, 2023 were comprised of consulting, legal,
administrative and regulatory fees associated with non-recurring
due diligence projects.
| |
Six Months Ended June 30, |
|
Change |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
Net loss |
$ |
(35,368 |
) |
|
$ |
(46,895 |
) |
|
$ |
11,527 |
|
|
(24.6 |
)% |
| Depreciation and
amortization |
|
3,007 |
|
|
|
2,598 |
|
|
|
409 |
|
|
15.7 |
% |
| Interest expense, net |
|
4,103 |
|
|
|
3,081 |
|
|
|
1,022 |
|
|
33.2 |
% |
| Income tax expense |
|
— |
|
|
|
142 |
|
|
|
(142 |
) |
|
(100.0 |
)% |
| Non-cash addbacks(1) |
|
(108 |
) |
|
|
165 |
|
|
|
(273 |
) |
|
(165.5 |
)% |
| Share-based compensation |
|
7,474 |
|
|
|
9,072 |
|
|
|
(1,598 |
) |
|
(17.6 |
)% |
| Goodwill impairment
charges |
|
— |
|
|
|
16,867 |
|
|
|
(16,867 |
) |
|
N/A |
|
| Changes in fair value of
liabilities |
|
(3,120 |
) |
|
|
(4,348 |
) |
|
|
1,228 |
|
|
(28.2 |
)% |
| Unrealized (gains) losses on
investments |
|
(116 |
) |
|
|
125 |
|
|
|
(241 |
) |
|
N/A |
|
| Practice acquisition-related
costs(2) |
|
— |
|
|
|
71 |
|
|
|
(71 |
) |
|
(100.0 |
)% |
| Post-combination compensation
expense(3) |
|
316 |
|
|
|
1,162 |
|
|
|
(846 |
) |
|
N/A |
|
| Consulting and legal
fees(4) |
|
420 |
|
|
|
1,514 |
|
|
|
(1,094 |
) |
|
(72.3 |
)% |
| Infrastructure and workforce
costs(5) |
|
3,724 |
|
|
|
2,115 |
|
|
|
1,609 |
|
|
76.1 |
% |
| Transaction costs(6) |
|
18 |
|
|
|
28 |
|
|
|
(10 |
) |
|
(35.7 |
)% |
| Adjusted
EBITDA |
$ |
(19,650 |
) |
|
$ |
(14,303 |
) |
|
$ |
(5,347 |
) |
|
37.4 |
% |
| |
|
|
|
|
|
|
|
(1) During the six months ended June 30, 2024,
non-cash addbacks were primarily comprised of non-cash rent of
$158, offset by net reversal of bad debt recovery of $50. During
the six months ended June 30, 2023, non-cash addbacks were
primarily comprised of non-cash rent of $166 offset by net credit
losses of $1 .
(2) Practice acquisition-related costs were
comprised of consulting and legal fees incurred to perform due
diligence, execute, and integrate acquisitions of various oncology
practices.
(3) Deferred consideration payments for practice
acquisitions that are contingent upon the seller’s future
employment at the Company.
(4) Consulting and legal fees were comprised of
a subset of the Company’s total consulting and legal fees, and
related to certain non-recurring advisory projects during the six
months ended June 30, 2024. During the six months ended June
30, 2023, these fees related to certain non-recurring advisory
projects.
(5) Infrastructure and workforce costs were
primarily comprised of non-recurring legal fees related to
infrastructure build out of $2,359 and $0, recruiting expenses to
build out corporate infrastructure of $712 and $892, severance
expenses resulting from cost rationalization programs of $151 and
$265, and temporary labor of $326 and $907 during the six months
ended June 30, 2024 and 2023, respectively.
(6) Transaction costs incurred during the six
months ended June 30, 2024 were comprised of consulting, legal,
administrative and regulatory fees associated with non-recurring
due diligence projects.
|
Key Business Metrics |
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Clinics (1) |
|
87 |
|
|
|
83 |
|
|
|
87 |
|
|
|
83 |
|
| Markets |
|
14 |
|
|
|
15 |
|
|
|
14 |
|
|
|
15 |
|
| Lives under value-based
contracts (millions) |
|
2.1 |
|
|
|
1.8 |
|
|
|
2.1 |
|
|
|
1.8 |
|
| Adjusted EBITDA (in
thousands) |
$ |
(8,710 |
) |
|
$ |
(6,944 |
) |
|
$ |
(19,650 |
) |
|
$ |
(14,303 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes independent oncology practices
to which we provide limited management services, but do not bear
the operating costs.
Consolidated Balance Sheets
(Unaudited)(in thousands except share data)
| |
June 30, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
36,424 |
|
|
$ |
33,488 |
|
|
Marketable securities |
|
9,939 |
|
|
|
49,367 |
|
|
Accounts receivable, net |
|
54,017 |
|
|
|
42,360 |
|
|
Other receivables |
|
350 |
|
|
|
551 |
|
|
Inventories |
|
11,322 |
|
|
|
13,678 |
|
|
Prepaid expenses and other current assets |
|
4,157 |
|
|
|
4,049 |
|
|
Total current assets |
|
116,209 |
|
|
|
143,493 |
|
|
Property and equipment, net |
|
12,232 |
|
|
|
10,883 |
|
|
Operating right of use assets |
|
26,992 |
|
|
|
29,169 |
|
|
Intangible assets, net |
|
16,357 |
|
|
|
17,904 |
|
|
Goodwill |
|
7,230 |
|
|
|
7,230 |
|
|
Other assets |
|
582 |
|
|
|
561 |
|
| Total
assets |
$ |
179,602 |
|
|
$ |
209,240 |
|
| Liabilities and stockholders’
equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
15,750 |
|
|
$ |
14,429 |
|
|
Current portion of operating lease liabilities |
|
6,521 |
|
|
|
6,363 |
|
|
Accrued expenses and other current liabilities |
|
12,831 |
|
|
|
13,996 |
|
|
Total current liabilities |
|
35,102 |
|
|
|
34,788 |
|
|
Operating lease liabilities |
|
24,535 |
|
|
|
26,486 |
|
|
Derivative warrant liabilities |
|
84 |
|
|
|
636 |
|
|
Conversion option derivative liabilities |
|
514 |
|
|
|
3,082 |
|
|
Long-term debt, net of unamortized debt issuance costs |
|
89,950 |
|
|
|
86,826 |
|
|
Other non-current liabilities |
|
179 |
|
|
|
365 |
|
|
Deferred income taxes liability |
|
32 |
|
|
|
32 |
|
| Total
liabilities |
|
150,396 |
|
|
|
152,215 |
|
| Stockholders’ equity: |
|
|
|
|
Common Stock, $0.0001 par value, authorized 500,000,000 shares;
77,224,263 shares issued and 75,490,489 shares outstanding at
June 30, 2024 and 75,879,025 shares issued and 74,145,251
shares outstanding at December 31, 2023 |
|
8 |
|
|
|
8 |
|
|
Series A Convertible Preferred Stock, $0.0001 par value, authorized
10,000,000 shares; 165,045 shares issued and outstanding at
June 30, 2024 and December 31, 2023 |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
(1,019 |
) |
|
|
204,186 |
|
|
Treasury Stock at cost, 1,733,774 shares at June 30, 2024 and
December 31, 2023 |
|
211,735 |
|
|
|
(1,019 |
) |
|
Accumulated deficit |
|
(181,518 |
) |
|
|
(146,150 |
) |
| Total stockholders’
equity |
|
29,206 |
|
|
|
57,025 |
|
| Total liabilities and
stockholders’ equity |
$ |
179,602 |
|
|
$ |
209,240 |
|
| |
|
|
|
|
|
|
|
Consolidated Statements of Operations
(Unaudited)(in thousands except share data)
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenue |
|
|
|
|
|
|
|
|
Patient services |
$ |
52,461 |
|
|
$ |
53,426 |
|
|
$ |
104,914 |
|
|
$ |
103,699 |
|
|
Dispensary |
|
44,440 |
|
|
|
25,196 |
|
|
|
84,119 |
|
|
|
49,436 |
|
|
Clinical trials & other |
|
1,677 |
|
|
|
1,602 |
|
|
|
4,211 |
|
|
|
3,281 |
|
| Total operating
revenue |
|
98,578 |
|
|
|
80,224 |
|
|
|
193,244 |
|
|
|
156,416 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
Direct costs – patient services |
|
46,522 |
|
|
|
44,878 |
|
|
|
96,019 |
|
|
|
87,692 |
|
|
Direct costs – dispensary |
|
38,801 |
|
|
|
20,111 |
|
|
|
71,610 |
|
|
|
39,256 |
|
|
Direct costs – clinical trials & other |
|
229 |
|
|
|
118 |
|
|
|
620 |
|
|
|
252 |
|
|
Goodwill impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,867 |
|
|
Selling, general and administrative expense |
|
27,872 |
|
|
|
28,726 |
|
|
|
56,324 |
|
|
|
57,556 |
|
|
Depreciation and amortization |
|
1,518 |
|
|
|
1,329 |
|
|
|
3,007 |
|
|
|
2,598 |
|
| Total operating
expenses |
|
114,942 |
|
|
|
95,162 |
|
|
|
227,580 |
|
|
|
204,221 |
|
| Loss from
operations |
|
(16,364 |
) |
|
|
(14,938 |
) |
|
|
(34,336 |
) |
|
|
(47,805 |
) |
| Other non-operating expense
(income) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
2,118 |
|
|
|
1,638 |
|
|
|
4,103 |
|
|
|
3,081 |
|
|
Change in fair value of derivative warrant liabilities |
|
(552 |
) |
|
|
(118 |
) |
|
|
(552 |
) |
|
|
(261 |
) |
|
Change in fair value of earnout liabilities |
|
— |
|
|
|
(17 |
) |
|
|
— |
|
|
|
(769 |
) |
|
Change in fair value of conversion option derivative
liabilities |
|
(2,568 |
) |
|
|
— |
|
|
|
(2,568 |
) |
|
|
(3,318 |
) |
|
Other, net |
|
117 |
|
|
|
357 |
|
|
|
49 |
|
|
|
214 |
|
| Total other
non-operating (income) loss |
|
(885 |
) |
|
|
1,860 |
|
|
|
1,032 |
|
|
|
(1,053 |
) |
| Loss before provision for
income taxes |
|
(15,479 |
) |
|
|
(16,798 |
) |
|
|
(35,368 |
) |
|
|
(46,752 |
) |
|
Income tax expense |
|
— |
|
|
|
(99 |
) |
|
|
— |
|
|
|
(143 |
) |
| Net loss |
$ |
(15,479 |
) |
|
$ |
(16,897 |
) |
|
$ |
(35,368 |
) |
|
$ |
(46,895 |
) |
| Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.17 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.52 |
) |
|
Diluted |
$ |
(0.17 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.52 |
) |
| Weighted-average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
74,748,365 |
|
|
|
74,119,910 |
|
|
|
74,491,326 |
|
|
|
73,786,374 |
|
|
Diluted |
|
74,748,365 |
|
|
|
74,119,910 |
|
|
|
74,491,326 |
|
|
|
73,786,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash
Flows (Unaudited)(in thousands)
| |
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating
activities: |
|
|
|
|
Net loss |
$ |
(35,368 |
) |
|
$ |
(46,895 |
) |
|
Adjustments to reconcile net loss to cash and cash equivalents used
in operating activities: |
|
Depreciation and amortization |
|
3,007 |
|
|
|
2,598 |
|
|
Amortization of debt issuance costs and debt discount |
|
3,124 |
|
|
|
3,067 |
|
|
Goodwill impairment charges |
|
— |
|
|
|
16,867 |
|
|
Share-based compensation |
|
7,474 |
|
|
|
9,072 |
|
|
Change in fair value of liability classified warrants |
|
(552 |
) |
|
|
(261 |
) |
|
Change in fair value of liability classified earnouts |
|
— |
|
|
|
(769 |
) |
|
Change in fair value of liability classified conversion option
derivatives |
|
(2,568 |
) |
|
|
(3,318 |
) |
|
Realized loss on sale of investments |
|
— |
|
|
|
11 |
|
|
Unrealized (gain) loss on investments |
|
(121 |
) |
|
|
113 |
|
|
Accretion of discount on investment securities |
|
(451 |
) |
|
|
(1,589 |
) |
|
Deferred taxes |
|
— |
|
|
|
(30 |
) |
|
Credit losses |
|
— |
|
|
|
(2 |
) |
|
Loss on disposal of property and equipment |
|
50 |
|
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
Accounts receivable |
|
(11,657 |
) |
|
|
(6,576 |
) |
|
Other receivables |
|
201 |
|
|
|
118 |
|
|
Inventories |
|
2,356 |
|
|
|
(2,907 |
) |
|
Prepaid expenses and other current assets |
|
(108 |
) |
|
|
1,091 |
|
|
Operating right-of-use assets |
|
2,177 |
|
|
|
3,125 |
|
|
Other assets |
|
(21 |
) |
|
|
(80 |
) |
|
Accounts payable |
|
898 |
|
|
|
3,751 |
|
|
Current and long-term operating lease liabilities |
|
(1,793 |
) |
|
|
(2,529 |
) |
|
Accrued expenses and other current liabilities |
|
1,976 |
|
|
|
1,350 |
|
|
Income taxes payable |
|
— |
|
|
|
1 |
|
|
Other non-current liabilities |
|
(167 |
) |
|
|
(320 |
) |
| Net cash and cash
equivalents used in operating activities |
|
(31,543 |
) |
|
|
(24,112 |
) |
| Cash flows from investing
activities: |
|
|
|
|
Purchases of property and equipment |
|
(2,436 |
) |
|
|
(2,776 |
) |
|
Cash paid for practice acquisitions, net |
|
— |
|
|
|
(4,300 |
) |
|
Purchases of marketable securities/investments |
|
— |
|
|
|
(9,747 |
) |
|
Sales of marketable securities/investments |
|
40,000 |
|
|
|
60,127 |
|
| Net cash and cash
equivalents provided by investing activities |
|
37,564 |
|
|
|
43,304 |
|
| Cash flows from financing
activities: |
|
|
|
|
Payments made for financing of insurance payments |
|
(1,002 |
) |
|
|
(2,576 |
) |
|
Payment of deferred consideration liability for acquisition |
|
(2,140 |
) |
|
|
(759 |
) |
|
Principal payments on financing leases |
|
(18 |
) |
|
|
(81 |
) |
|
Common stock repurchase |
|
— |
|
|
|
(894 |
) |
|
Common stock issued for options exercised |
|
75 |
|
|
|
— |
|
| Net cash and cash
equivalents used in financing activities |
|
(3,085 |
) |
|
|
(4,310 |
) |
| Net increase in cash and cash
equivalents |
|
2,936 |
|
|
|
14,882 |
|
| Cash and cash
equivalents at beginning of period |
|
33,488 |
|
|
|
14,010 |
|
| Cash and cash
equivalents at end of period |
$ |
36,424 |
|
|
$ |
28,892 |
|
| |
|
|
|
|
|
|
|
Contacts
Media
The Oncology Institute, Inc.Daniel Virnich,
MDdanielvirnich@theoncologyinstitute.com(562) 735-3226 x 81125
ReviveMichael
Petronempetrone@reviveagency.com(615) 760-4542
Investors
Solebury Strategic
Communicationsinvestors@theoncologyinstitute.com
Grafico Azioni Oncology Institute (NASDAQ:TOI)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Oncology Institute (NASDAQ:TOI)
Storico
Da Nov 2023 a Nov 2024
