DocGo Announces Record Fourth Quarter and Full-Year 2023 Results
Company Updates 2024 Revenue Guidance to
Management to Host Conference Call and Webcast Today at
Fourth Quarter 2023 Financial Highlights
-
Total revenues for the fourth quarter of 2023 were
$199.2 million , compared to$108.8 million in the fourth quarter of 2022, an increase of 83%. - Gross margin for the fourth quarter of 2023 was 33.5%, compared to 39.0% in the fourth quarter of 2022. While gross margins improved sequentially, they were lower on a year-over-year basis, reflecting ongoing start-up costs related to the rapid growth on projects in the second half of 2023.
-
Net income was
$8.0 million for the fourth quarter of 2023, compared to net income of$7.1 million in the fourth quarter of 2022, an increase of 13%. -
Adjusted EBITDA2 was
$22.6 million for the fourth quarter of 2023 compared to$6.8 million for the fourth quarter of 2022, an increase of 232%. -
Mobile Health Services revenues in the fourth quarter of 2023 were$150.4 million , compared to$71.8 million for the fourth quarter of 2022, an increase of 110%. -
Transportation Services revenues in the fourth quarter of 2023 were
$48.8 million compared to$37.0 million for the fourth quarter of 2022, an increase of 32%.
Full-Year 2023 Highlights
-
Full-year 2023 revenues increased to
$624.2 million , compared to$440.5 million for the full-year 2022, an increase of 42%. - Gross margin for 2023 was 31.3%, compared to 35.1% in 2022, reflecting significant project start-up costs, particularly in the first and third quarters of the year.
-
Full-year net income for 2023 was
$10.0 million , compared to net income of$30.7 million for the full-year 2022, a decrease of 67%. The decline in net income in 2023 was due to the increase in non-cash, stock-based compensation and the recording of an income tax provision in 2023, compared to an income tax benefit in 2022. -
Full-year 2023 adjusted EBITDA2 was
$54.0 million compared to$41.3 million for full-year 2022, an increase of 31%. -
Mobile Health Services revenues were approximately$442.8 million in 2023, compared to$325.9 million in 2022, an increase of 36%. -
Transportation Services revenues were approximately
$181.5 million in 2023, compared to$114.6 million in 2022, an increase of 58%.
Cash Collections
-
As of
December 31, 2023 , the Company held total cash and cash equivalents, including restricted cash, of$72.2 million , compared to$67.3 million as ofSeptember 30, 2023 and$164.1 million as ofDecember 31, 2022 . -
Subsequent to year end, the Company has bolstered its balance sheet by receiving approximately
$120 million in payments fromJanuary 1, 2024 to present. - Subsequent to the end of the fourth quarter, the Company’s line of credit was paid down in full.
2024 Guidance
-
Full-year 2024 revenues are expected to be
$720-750 million . -
Full-year 2024 adjusted EBITDA1 is expected to be
$80-85 million . -
Full-year 2024 cash flow from operations is expected to be
$65-$75 million .
Select Corporate Highlights for the Fourth Quarter 2023 and Recent Weeks
-
Launched care gap closure services in
Michigan with one of the nation’s largest insurance companies during the fourth quarter. - Doubled the number of patients seen under our care gap closure programs in the fourth quarter of 2023, compared to the third quarter of 2023.
-
Received positive results from the initial phase of our innovative
Transitional Care Management program with LA Care, with statistically significant data showing that our program reduced 30-day hospital readmissions compared to the control group. With these results, the Company is now planning an expansion of this program. - Signed first payer partnership with one of the nation’s largest insurance companies that includes the option to share risk in a value-based care arrangement.
-
Expanded vaccination and public health initiatives in
Arizona through a new contract with theDepartment of Health inSanta Cruz County, Arizona . -
Entered a new agreement with a large cardiology practice in
Chicago to provide CIED (Cardiac Implantable Electronic Device) monitoring, RPM (Remote Patient Monitoring) and VCM (Virtual Care Management). -
Announced share repurchase program for up to
$36 million , which the Company intends to commence promptly following the opening of its trading window in early March, subject to prevailing market conditions and other considerations.
|
1. |
Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net income). Forward-looking estimates of adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein. |
|
2. |
Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for additional information on this non-GAAP financial measure and a reconciliation to the most comparable GAAP measure. |
Conference call and webcast details:
1-877-407-0784 -
1-201-689-8560 - Int’l
Conference ID - 13743132
To access the Call me™ feature, which avoids the need to wait for an operator, click here.
The webcast can be accessed under Events on the Investors section of the Company’s website, https://ir.docgo.com/.
About
Forward-Looking Statements
This earnings release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the plans, strategies, outcomes, and prospects, both business and financial, of the Company. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, outcomes, results or expectations. Accordingly, you should not place undue reliance on such statements. All statements other than statements of historical fact are forward-looking, including, but not limited, to statements regarding the Company’s future actions, business strategies or models, plans, goals, future events, future revenues, future margins, current and future revenue guidance, future growth or performance, financing needs, business trends, results of operations, objectives and intentions with respect to future operations, services and products, and new and existing contracts or partnerships. In some cases, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “might,” “will,” “should,” “could,” “can,” “would,” “design,” “potential,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or the negative of these terms or similar expressions.
Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond the Company’s control, and which may cause the Company’s actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in the Company’s forward-looking statements, including, but not limited to the following: the Company’s ability to successfully implement its business strategy; the Company’s reliance on and ability to maintain its contractual relationships with its healthcare provider partners and clients; the Company’s ability to compete effectively in a highly competitive industry; the Company’s ability to maintain existing contracts; the Company’s reliance on government contracts; the Company’s ability to effectively manage its growth; the Company’s financial performance and future prospects; the Company’s ability to deliver on its business strategies or models, plans and goals; the Company’s ability to expand geographically; the Company’s ability to deliver on its margin normalization initiative; the Company’s ability to maintain and roll out its backlog; the Company’s M&A activity; the Company’s ability to retain its workforce and management personnel and successfully manage leadership transitions; the Company’s ability to collect on customer receivables; the Company’s ability to maintain its cash position; risks associated with the Company’s share repurchase program; expected impacts of macroeconomic factors, including inflationary pressures, general economic slowdown or a recession, rising interest rates, foreign exchange rate volatility, changes in monetary pressure, financial institution instability or the prospect of a shutdown of the
Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this earnings release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this earnings release are based on events or circumstances as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this earnings release to reflect events or circumstances after the date of this earnings release or to reflect new information or the occurrence of unanticipated events, except as and to the extent required by law. The Company’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
---tables to follow---
|
CONDENSED CONSOLIDATED BALANCE SHEET |
||||||
|
|
2023 |
|
|
2022 |
|
|
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents |
$ |
59,286,147 |
|
$ |
157,335,323 |
|
| Accounts receivable, net of allowance of |
|
262,083,462 |
|
|
102,995,397 |
|
| Assets held for sale |
|
- |
|
|
4,480,344 |
|
| Prepaid expenses and other current assets |
|
17,499,953 |
|
|
6,269,841 |
|
| Total current assets |
|
338,869,562 |
|
|
271,080,905 |
|
| Property and equipment, net |
|
16,835,484 |
|
|
21,258,175 |
|
| Intangibles, net |
|
37,682,928 |
|
|
22,969,246 |
|
|
|
47,539,929 |
|
|
38,900,413 |
|
|
| Restricted cash |
|
12,931,839 |
|
|
6,773,751 |
|
| Operating lease right-of-use assets |
|
9,580,535 |
|
|
9,074,277 |
|
| Finance lease right-of-use assets |
|
12,003,919 |
|
|
9,039,663 |
|
| Equity method investments |
|
553,573 |
|
|
597,977 |
|
| Deferred tax assets |
|
11,888,539 |
|
|
9,957,967 |
|
| Other assets |
|
2,565,649 |
|
|
3,625,254 |
|
| Total assets |
$ |
490,451,957 |
|
$ |
393,277,628 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable |
$ |
19,827,258 |
|
$ |
21,582,866 |
|
| Accrued liabilities |
|
91,340,609 |
|
|
31,573,031 |
|
| Line of credit |
|
25,000,000 |
|
|
- |
|
| Notes payable, current |
|
28,131 |
|
|
664,913 |
|
| Due to seller |
|
7,823,009 |
|
|
26,244,133 |
|
| Contingent consideration |
|
19,792,982 |
|
|
10,555,540 |
|
| Operating lease liability, current |
|
2,773,020 |
|
|
2,325,024 |
|
| Liabilities held for sale |
|
- |
|
|
4,480,344 |
|
| Finance lease liability, current |
|
3,534,073 |
|
|
2,732,639 |
|
| Total current liabilities |
|
170,119,082 |
|
|
100,158,490 |
|
| Notes payable, non-current |
|
41,586 |
|
|
1,236,601 |
|
| Operating lease liability, non-current |
|
7,223,941 |
|
|
7,040,982 |
|
| Finance lease liability, non-current |
|
7,896,392 |
|
|
5,914,164 |
|
| Total liabilities |
|
185,281,001 |
|
|
114,350,237 |
|
| Commitments and contingencies | ||||||
| Stockholders’ equity: | ||||||
| Common stock ( |
|
10,406 |
|
|
10,241 |
|
| Additional paid-in-capital |
|
320,693,866 |
|
|
301,451,435 |
|
| Accumulated deficit |
|
(21,394,310 |
) |
|
(28,972,216 |
) |
| Accumulated other comprehensive income |
|
1,484,905 |
|
|
741,206 |
|
| Total stockholders’ equity attributable to |
|
300,794,867 |
|
|
273,230,666 |
|
| Noncontrolling interests |
|
4,376,089 |
|
|
5,696,725 |
|
| Total stockholders’ equity |
|
305,170,956 |
|
|
278,927,391 |
|
| Total liabilities and stockholders’ equity |
$ |
490,451,957 |
|
$ |
393,277,628 |
|
|
|
|||||||||
| Year Ended |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
| Revenues, net |
$ |
624,288,642 |
|
$ |
440,515,746 |
|
$ |
318,718,580 |
|
| Expenses: | |||||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) |
|
428,906,225 |
|
|
285,794,520 |
|
$ |
208,971,062 |
|
| Operating expenses: | |||||||||
| General and administrative |
|
137,152,512 |
|
|
103,403,416 |
|
|
74,892,828 |
|
| Depreciation and amortization |
|
16,431,892 |
|
|
10,565,578 |
|
|
7,511,579 |
|
| Legal and regulatory |
|
13,082,569 |
|
|
8,780,590 |
|
|
3,907,660 |
|
| Technology and development |
|
10,858,724 |
|
|
5,384,853 |
|
|
3,320,183 |
|
| Sales, advertising and marketing |
|
2,801,740 |
|
|
4,755,161 |
|
|
4,757,970 |
|
| Total expenses |
|
609,233,662 |
|
|
418,684,118 |
|
|
303,361,282 |
|
| Income from operations |
|
15,054,980 |
|
|
21,831,628 |
|
|
15,357,298 |
|
| Other income: | |||||||||
| Interest income (expense), net |
|
1,684,399 |
|
|
762,685 |
|
|
(763,030 |
) |
| Gain on remeasurement of warrant liabilities |
|
- |
|
|
1,127,388 |
|
|
5,199,496 |
|
| Change in fair value of contingent liability |
|
1,437,525 |
|
|
- |
|
|
— |
|
| (Loss) gain on equity method investments |
|
(343,336 |
) |
|
8,919 |
|
|
(66,818 |
) |
| (Loss) gain on remeasurement of operating and finance leases |
|
(866 |
) |
|
1,388,273 |
|
|
— |
|
| Gain on bargain purchase |
|
- |
|
|
1,593,612 |
|
|
— |
|
| Gain from PPP loan forgiveness |
|
- |
|
|
- |
|
|
142,667 |
|
| Loss on disposal of fixed assets |
|
(852,544 |
) |
|
(21,173 |
) |
|
(34,342 |
) |
|
|
- |
|
|
(2,921,958 |
) |
|
— |
|
|
| Other expense |
|
(686,865 |
) |
|
(987,482 |
) |
|
(40,086 |
) |
| Total other income |
|
1,238,313 |
|
|
950,264 |
|
|
4,437,887 |
|
| Net income before (provision for) benefit from income tax |
|
16,293,293 |
|
|
22,781,892 |
|
|
19,795,185 |
|
| (Provision for) benefit from income taxes |
|
(6,244,965 |
) |
|
7,961,321 |
|
|
(615,697 |
) |
| Net income |
|
10,048,328 |
|
|
30,743,213 |
|
|
19,179,488 |
|
| Net income (loss) attributable to noncontrolling interests |
|
3,189,873 |
|
|
(3,841,285 |
) |
|
(4,564,270 |
) |
| Net income attributable to stockholders of |
|
6,858,455 |
|
|
34,584,498 |
|
|
23,743,758 |
|
| Other comprehensive income | |||||||||
| Foreign currency translation adjustment |
|
743,699 |
|
|
773,707 |
|
|
16,038 |
|
| Total comprehensive income |
$ |
7,602,154 |
|
$ |
35,358,205 |
|
$ |
23,759,796 |
|
| Net income per share attributable to |
$ |
0.07 |
|
$ |
0.34 |
|
$ |
0.30 |
|
| Weighted-average shares outstanding - Basic |
|
103,511,299 |
|
|
101,228,369 |
|
|
80,293,959 |
|
| Net income per share attributable to |
$ |
0.06 |
|
$ |
0.34 |
|
$ |
0.25 |
|
| Weighted-average shares outstanding - Diluted |
|
105,617,817 |
|
|
102,975,831 |
|
|
94,863,613 |
|
|
|
|||||||||
| Year Ended |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income |
$ |
10,048,328 |
|
$ |
30,743,213 |
|
$ |
19,179,488 |
|
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||
| Depreciation of property and equipment |
|
4,829,780 |
|
|
4,114,346 |
|
|
2,312,437 |
|
| Amortization of intangible assets |
|
5,249,358 |
|
|
3,214,814 |
|
|
1,845,193 |
|
| Amortization of finance lease right-of-use assets |
|
6,352,754 |
|
|
3,236,418 |
|
|
2,913,925 |
|
| Loss on disposal of assets |
|
852,544 |
|
|
21,173 |
|
|
34,342 |
|
| Deferred income tax |
|
(1,981,519 |
) |
|
(9,957,967 |
) |
|
- |
|
| Gain from PPP loan forgiveness |
|
- |
|
|
- |
|
|
(142,667 |
) |
| Loss (gain) on equity method investments |
|
343,336 |
|
|
(8,919 |
) |
|
66,818 |
|
| Bad debt expense |
|
3,601,520 |
|
|
3,815,187 |
|
|
4,467,956 |
|
| Stock-based compensation |
|
20,969,174 |
|
|
8,054,571 |
|
|
1,376,353 |
|
| Loss on remeasurement of operating and finance leases |
|
866 |
|
|
(1,388,273 |
) |
|
- |
|
| Loss on liquidation of business |
|
70,284 |
|
|
- |
|
|
- |
|
| Gain on remeasurement of warrant liabilities |
|
- |
|
|
(1,127,388 |
) |
|
(5,199,496 |
) |
| Gain on bargain purchase |
|
- |
|
|
(1,593,612 |
) |
|
- |
|
|
|
- |
|
|
2,921,958 |
|
|
- |
|
|
| Change in fair value of contingent consideration |
|
(1,437,525 |
) |
|
- |
|
|
- |
|
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable |
|
(160,524,934 |
) |
|
(8,415,793 |
) |
|
(57,996,613 |
) |
| Asset held for sale |
|
- |
|
|
190,312 |
|
|
- |
|
| Prepaid expenses and other current assets |
|
(10,843,890 |
) |
|
(4,181,035 |
) |
|
(961,165 |
) |
| Other assets |
|
1,059,605 |
|
|
1,557,655 |
|
|
(2,490,564 |
) |
| Accounts payable |
|
(1,780,403 |
) |
|
3,637,305 |
|
|
11,879,850 |
|
| Accrued liabilities |
|
58,968,844 |
|
|
(5,964,064 |
) |
|
20,766,723 |
|
| Net cash (used in) provided by operating activities |
|
(64,221,878 |
) |
|
28,869,901 |
|
|
(1,947,420 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Acquisition of property and equipment |
$ |
(7,584,561 |
) |
|
(3,198,234 |
) |
|
(4,808,409 |
) |
| Acquisition of intangibles |
|
(2,541,661 |
) |
|
(2,299,558 |
) |
|
(1,849,136 |
) |
| Acquisition of businesses |
|
(20,203,464 |
) |
|
(32,953,179 |
) |
|
(1,300,000 |
) |
| Equity method investments |
|
(298,932 |
) |
|
- |
|
|
(655,876 |
) |
| Proceeds from disposal of property and equipment |
|
747,088 |
|
|
3,000 |
|
|
74,740 |
|
| Acquisition of leased assets |
|
- |
|
|
- |
|
|
(50,504 |
) |
| Net cash used in investing activities |
|
(29,881,530 |
) |
|
(38,447,971 |
) |
|
(8,589,185 |
) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Proceeds from revolving credit line |
$ |
25,000,000 |
|
|
- |
|
|
8,000,000 |
|
| Repayments of revolving credit line |
|
- |
|
|
(25,881 |
) |
|
(8,000,000 |
) |
| Repayments of notes payable |
|
(25,926 |
) |
|
(925,151 |
) |
|
(604,826 |
) |
| Due to seller |
|
(13,590,382 |
) |
|
(2,535,521 |
) |
|
(595,528 |
) |
| Earnout payments on contingent liabilities |
|
(5,266,681 |
) |
|
- |
|
|
- |
|
| Noncontrolling interest contributions |
|
- |
|
|
2,063,000 |
|
|
333,025 |
|
| Proceeds from exercise of stock options |
|
1,581,183 |
|
|
1,980,585 |
|
|
628,592 |
|
| Acquisition of |
|
- |
|
|
- |
|
|
(479,331 |
) |
| Payments for taxes related to shares withheld for employee taxes |
|
(2,308,954 |
) |
|
- |
|
|
- |
|
| Common stock repurchased |
|
- |
|
|
(3,731,712 |
) |
|
- |
|
| Equity costs |
|
- |
|
|
(19,570 |
) |
|
- |
|
| Payments on obligations under finance lease |
|
(4,270,553 |
) |
|
(2,985,568 |
) |
|
(2,216,309 |
) |
| Issuance costs related to merger recapitalization |
|
- |
|
|
- |
|
|
(19,961,460 |
) |
| Proceeds from issuance of Class A common stock, net of transaction cost |
|
- |
|
|
- |
|
|
178,102,313 |
|
| Net cash provided (used) in financing activities |
|
1,118,687 |
|
|
(6,179,818 |
) |
|
155,206,476 |
|
| Effect of exchange rate changes on cash and cash equivalents |
$ |
1,093,633 |
|
|
761,232 |
|
|
(21,414 |
) |
| Net (decrease) increase in cash and restricted cash |
|
(91,891,088 |
) |
|
(14,996,656 |
) |
|
144,648,457 |
|
| Cash and restricted cash at beginning of period |
|
164,109,074 |
|
|
179,105,730 |
|
|
34,457,273 |
|
| Cash and restricted cash at end of period |
$ |
72,217,986 |
|
$ |
164,109,074 |
|
$ |
179,105,730 |
|
| Year Ended |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
| Supplemental disclosure of cash and non-cash transactions: | |||||||||
| Cash paid for interest |
$ |
250,100 |
|
$ |
197,005 |
|
$ |
315,272 |
|
| Cash paid for interest on finance lease liabilities |
$ |
600,239 |
|
$ |
559,596 |
|
$ |
525,476 |
|
| Cash paid for income taxes |
$ |
4,251,658 |
|
$ |
1,505,235 |
|
$ |
615,697 |
|
| Right-of-use assets obtained in exchange for lease liabilities |
$ |
7,621,538 |
|
$ |
5,035,201 |
|
$ |
5,271,662 |
|
| Fixed assets acquired in exchange for notes payable |
$ |
- |
|
$ |
923,377 |
|
$ |
1,113,102 |
|
| Gain from PPP loan forgiveness |
$ |
- |
|
$ |
- |
|
$ |
142,667 |
|
| Due to seller non-cash |
$ |
- |
|
$ |
- |
|
$ |
434,494 |
|
| Acquisition of remaining |
$ |
7,000,000 |
|
$ |
- |
|
$ |
- |
|
| Acquisition of CRMS through issuance of stock |
$ |
1,000,000 |
|
$ |
- |
|
$ |
- |
|
| Receivable exchanged for trade credits |
$ |
1,500,000 |
|
$ |
- |
|
$ |
- |
|
| Accruals of stock based compensation |
$ |
565,892 |
|
$ |
- |
|
$ |
- |
|
| Reconciliation of cash and restricted cash | |||||||||
| Cash |
$ |
59,286,147 |
|
$ |
157,335,323 |
|
$ |
175,537,221 |
|
| Restricted cash |
|
12,931,839 |
|
|
6,773,751 |
|
|
3,568,509 |
|
| Total cash and restricted cash shown in statement of cash flows |
$ |
72,217,986 |
|
$ |
164,109,074 |
|
$ |
179,105,730 |
|
|
|
|||||||
| Three Months Ended |
|||||||
|
|
2023 |
|
|
2022 |
|
||
| Revenues, net |
$ |
199,246,269 |
|
$ |
108,784,996 |
|
|
| Expenses: | |||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) |
|
132,559,805 |
|
|
66,375,647 |
|
|
| Operating expenses: | |||||||
| General and administrative |
|
43,514,996 |
|
|
32,719,146 |
|
|
| Depreciation and amortization |
|
4,615,235 |
|
|
3,311,922 |
|
|
| Legal and regulatory |
|
3,493,572 |
|
|
2,170,367 |
|
|
| Technology and development |
|
3,185,455 |
|
|
1,721,554 |
|
|
| Sales, advertising and marketing |
|
203,548 |
|
|
2,406,244 |
|
|
| Total expenses |
|
187,572,611 |
|
|
108,704,880 |
|
|
| Income from operations |
|
11,673,658 |
|
|
80,116 |
|
|
| Other income: | |||||||
| Interest income (expense), net |
|
6,979 |
|
|
465,794 |
|
|
| Gain on remeasurement of warrant liabilities |
|
- |
|
|
(9,682 |
) |
|
| Change in fair value of contingent liability |
|
1,277,551 |
|
|
- |
|
|
| (Loss) gain on equity method investments |
|
(41,974 |
) |
|
(90,921 |
) |
|
| (Loss) gain on remeasurement of operating and finance leases |
|
(5,700 |
) |
|
- |
|
|
| Gain on bargain purchase |
|
- |
|
|
1,593,612 |
|
|
| Gain from PPP loan forgiveness |
|
- |
|
|
- |
|
|
| Loss on disposal of fixed assets |
|
(689,092 |
) |
|
(63,840 |
) |
|
|
|
- |
|
|
(2,921,958 |
) |
||
| Other expense |
|
(25,040 |
) |
|
(1,029,770 |
) |
|
| Total other income |
|
522,724 |
|
|
(2,056,765 |
) |
|
| Net income before (provision for) benefit from income tax |
|
12,196,382 |
|
|
(1,976,649 |
) |
|
| (Provision for) benefit from income taxes |
|
(4,203,122 |
) |
|
9,125,076 |
|
|
| Net income |
|
7,993,260 |
|
|
7,148,427 |
|
|
| Net income (loss) attributable to noncontrolling interests |
|
422,789 |
|
|
(916,293 |
) |
|
| Net income attributable to stockholders of |
|
7,570,471 |
|
|
8,064,720 |
|
|
| Other comprehensive income | |||||||
| Foreign currency translation adjustment |
|
676,734 |
|
|
520,853 |
|
|
| Total comprehensive income |
|
8,247,205 |
|
|
8,585,573 |
|
|
|
|
||||
| Three months ended |
Three months ended |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
|
Net income |
7,993,260 |
|
7,148,427 |
|
|
Adjustments to reconcile net income to net cash (used in) |
||||
|
provided by operating activities: |
||||
|
Depreciation of property and equipment |
132,063 |
|
1,522,102 |
|
|
Amortization of intangible assets |
953,400 |
|
945,391 |
|
|
Amortization of finance lease right-of-use assets |
3,529,772 |
|
844,429 |
|
|
Loss (gain) on disposal of assets |
689,092 |
|
63,840 |
|
|
Deferred income tax |
(3,030,755 |
) |
(9,957,967 |
) |
|
Loss (gain) from equity method investments |
41,974 |
|
90,921 |
|
|
Bad debt expense |
3,912,961 |
|
1,112,208 |
|
|
Stock-based compensation |
5,807,327 |
|
3,438,515 |
|
|
Loss (gain) on remeasurement of operating and finance leases |
5,700 |
|
- |
|
|
Loss on liquidation of business |
- |
|
- |
|
|
Gain on remeasurement of warrant liabilities |
- |
|
9,682 |
|
|
Gain on bargain purchase |
- |
|
(1,593,612 |
) |
|
|
- |
|
2,921,958 |
|
|
Change in fair value of contingent consideration |
(1,277,551 |
) |
- |
|
|
Changes in operating assets and liabilities: |
- |
|
||
|
Accounts receivable |
(57,040,937 |
) |
(11,310,443 |
) |
|
Asset held for sale |
- |
|
190,312 |
|
|
Prepaid expenses and other current assets |
(10,507,797 |
) |
(3,898,367 |
) |
|
Other assets |
362,621 |
|
675,223 |
|
|
Accounts payable |
10,860,517 |
|
7,620,688 |
|
|
Accrued liabilities |
31,649,586 |
|
(8,560,951 |
) |
|
Net cash provided by operating activities |
(5,918,767 |
) |
(8,737,644 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
| Acquisition of property and equipment |
(3,223,754 |
) |
(1,204,073 |
) |
| Acquisition of intangibles |
(62,853 |
) |
(343,124 |
) |
| Acquisition of businesses |
- |
|
890,194 |
|
| Equity method investments |
(148,422 |
) |
- |
|
| Proceeds from disposal of property and equipment |
472,878 |
|
3,000 |
|
| Acquisition of leased assets |
- |
|
- |
|
| Net cash used in investing activities |
(2,962,151 |
) |
(654,003 |
) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
| Proceeds from revolving credit line |
25,000,000 |
|
(1,000,000 |
) |
| Repayments of revolving credit line |
(25,881 |
) |
||
| Repayments of notes payable |
503,657 |
|
(339,440 |
) |
| Due to seller |
(5,172,446 |
) |
(1,527,721 |
) |
| Earnout payments on contingent liabilities |
(5,266,681 |
) |
||
| Noncontrolling interest contributions |
- |
|
- |
|
| Proceeds from exercise of stock options |
31,885 |
|
100,017 |
|
| Equity costs |
- |
|
- |
|
| Payment for taxes related to shares withheld for employee taxes |
(141,972 |
) |
- |
|
| Common stock repurchased |
- |
|
(3,233,953 |
) |
| Payments on obligations under finance lease |
(1,977,223 |
) |
(838,711 |
) |
| Net cash provided by financing activities |
12,977,220 |
|
(6,865,689 |
) |
| Effect of exchange rate changes on cash and cash equivalents |
865,746 |
|
1,014,086 |
|
| Net increase in cash and restricted cash |
4,962,048 |
|
(15,243,250 |
) |
| Cash and restricted cash at beginning of period |
67,255,938 |
|
179,352,324 |
|
| Cash and restricted cash at end of period |
72,217,986 |
|
164,109,074 |
|
Non-GAAP Financial Measures
The following information provides definitions and reconciliation of the non-GAAP financial measures used by the Company to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures used by the Company may differ from similarly titled measures used by other companies.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (“SEC”) rules because it excludes certain amounts included in net income (loss) calculated in accordance with GAAP. Specifically, adjusted EBITDA is arrived at by taking reported GAAP net income and adding back the following items: net interest expense (income), provision for (benefit from) income taxes, depreciation and amortization, other (income) expense, non-cash equity-based compensation and certain other non-recurring expenses consisting of certain one-time legal settlements and certain other one-time expenses incurred in connection with acquisitions and other corporate activities, beyond those that are typically incurred.
The Company’s management believes that its adjusted EBITDA measure is useful in evaluating DocGo’s operating performance, as the calculation of this measure generally eliminates the effect of financing and income taxes and the accounting effects of capital spending and acquisitions, as well as other items of a non-recurring and/or non-cash nature. Adjusted EBITDA is not intended to be a measure of GAAP cash flow, as this measure does not consider certain cash-based expenses, such as payments for taxes or debt service.
Management believes that using adjusted EBITDA in conjunction with GAAP measures such as net income assists investors in getting a more complete picture of the Company’s financial results and operations, affording them with a more complete view of what management considers to be the Company’s core operating performance as well as offering the ability to assess such performance as compared with that of prior periods and management’s public guidance. While many companies use adjusted EBITDA as a performance measure, not all companies use identical calculations for determining adjusted EBITDA. As such, DocGo’s presentation of adjusted EBITDA might not be comparable to similarly titled measures of other companies.
Adjusted EBITDA Margin
Adjusted EBITDA margin is considered a non-GAAP measure under
Reconciliation of Non-GAAP Measures
The table below reflects the reconciliation of net income to adjusted EBITDA for the three and twelve months ended
|
|
Q4 |
YTD |
||
|
|
2023 |
2022 |
2023 |
2022 |
|
Net income (GAAP) |
|
|
|
|
|
(+) Net interest expense (income) |
|
( |
( |
( |
|
(+) Income tax |
|
( |
|
( |
|
(+) Depreciation & amortization |
|
|
|
|
|
(+) Other (income) expense |
( |
|
|
( |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
(+) Non-cash stock compensation |
|
|
|
|
|
(+) Other non-recurring expenses |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
Pretax income margin |
6.1% |
-1.8% |
2.6% |
5.2% |
|
Net margin |
4.0% |
6.5% |
1.6% |
7.0% |
|
Adjusted EBITDA margin |
11.3% |
6.3% |
8.7% |
9.4% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228632295/en/
949-444-1341
mike.cole@docgo.com
ir@docgo.com
646-876-6455
shalper@lifesciadvisors.com
ir@docgo.com
DocGo Media:
docgo@5wpr.com
pr@docgo.com
Source: