Full Press Release Details
Astrana Health, Inc. Reports First Quarter 2025
Company to Host Conference Call on Thursday,
May 8, 2025, at 2:30 p.m. PT/5:30 p.m. ET
ALHAMBRA, Calif., May 8, 2025 /PRNewswire/
-- Astrana Health, Inc. ("Astrana," and together with its subsidiaries and affiliated entities, the "Company")
(NASDAQ: ASTH), a leading provider-centric, technology-powered healthcare company enabling providers to deliver accessible, high-quality,
and high-value care to all, today announced its consolidated financial results for the first quarter ended March 31, 2025.
"Astrana's strong start to the year
reflects the continued momentum behind our mission to build the nation's leading patient-centered healthcare platform. Our differentiated
clinical capabilities and technology-enabled delegated model continue to drive strong, profitable growth while delivering better outcomes
for both patients and providers. Even in a complex regulatory and economic environment, we continue to prove that value-based care can
deliver meaningful impact at scale with long-term sustainability," said Brandon Sim, President and CEO of Astrana Health.
Financial Highlights for three months ended
All comparisons are to the three months ended
March 31, 2024 unless otherwise stated.
(1) See "Reconciliation of Net
Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional
Recent Operating Highlights
Segment Results for three months ended March 31,
All comparisons are to the three months ended
March 31, 2024 unless otherwise stated.
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||
| (in thousands) | Care Partners | Care Delivery | Care Enablement | Intersegment Elimination | Corporate Costs | Consolidated Total | ||||||||||||||||||
| Total revenues | $ | 600,951 | $ | 33,388 | $ | 39,562 | $ | (53,511 | ) | $ | - | $ | 620,390 | |||||||||||
| % change vs. prior year quarter | 57 | % | 9 | % | 19 | % | ||||||||||||||||||
| Cost of services | 512,668 | 27,139 | 25,818 | (16,564 | ) | - | 549,061 | |||||||||||||||||
| General and administrative (1) | 44,068 | 9,357 | 10,209 | (36,950 | ) | 24,062 | 50,746 | |||||||||||||||||
| Total expenses | 556,736 | 36,496 | 36,027 | (53,514 | ) | 24,062 | 599,807 | |||||||||||||||||
| Income (loss) from operations | $ | 44,215 | $ | (3,108 | ) | $ | 3,535 | $ | 3 | (2) | $ | (24,062 | ) | $ | 20,583 | |||||||||
| % change vs. prior year quarter | 2 | % | * | 1 | % |
* Percentage change of over 500%
(1) Balance includes general and administrative
expenses and depreciation and amortization.
(2) Income from operations for the intersegment elimination
represents sublease income between segments. Sublease income is presented within other income that is not presented in the table.
Astrana is providing the following guidance for
total revenue and Adjusted EBITDA for the quarter ended June 30, 2025 and reiterating guidance for the year ended December 31, 2025 based
on the Company's existing business, current view of existing market conditions, and assumptions. The following guidance for the
year ended December 31, 2025 includes approximately $15 million in expected costs associated with continued strategic investments in automation
and AI, as well as ongoing and expected integration costs associated with planned acquisitions, but does not include contributions from
any acquisitions which have not yet closed.
| ($ in millions) | Three Months Ended June 30, 2025 | Year Ended December 31, 2025 | ||||||||||||||
| Guidance Range | Guidance Range | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Total revenue | $ | 615 | $ | 655 | $ | 2,500 | $ | 2,700 | ||||||||
| Adjusted EBITDA | $ | 45 | $ | 50 | $ | 170 | $ | 190 |
See "Guidance Reconciliation of Net Income
to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can
be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements"
below for additional information.
Conference Call and Webcast Information:
Astrana will host a conference call at 2:30 p.m.
PT/5:30 p.m. ET today (Thursday, May 8, 2025), during which management will discuss the results of the first quarter ended March 31,
2025. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference
U.S. & Canada (Toll-Free): +1 (877) 858-9810
International (Toll): +1 (201) 689-8517
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HE6dr7eJ
An accompanying slide presentation will be available
in PDF format on the "IR Calendar" page of the Company's website (https://ir.astranahealth.com/news-events/ir-calendar)
after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed
with the SEC, accessible at www.sec.gov.
Those who are unable to attend the live conference
call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
Note About Consolidated Entities
The Company consolidates entities in which it
has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of
the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling
interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The
amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.
About Astrana Health, Inc.
Astrana Health is a physician-centric, technology-enabled healthcare
company committed to delivering access to high-quality, patient-centered care. Through its proprietary end-to-end technology platform,
Astrana empowers providers to deliver more proactive, preventive care - improving patient outcomes, elevating patient experiences, improving
the well-being of providers, and driving greater value.
Today, Astrana supports more than 12,000 providers and over one million
Americans in value-based arrangements through its affiliated provider networks, management services organization, and primary, specialty,
and ancillary care delivery clinics. Together, Astrana is building what our healthcare system should be - one that delivers better care,
better experiences, and better outcomes for all. For more information, visit www.astranahealth.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance
for the quarter ending June 30, 2025 and the year ending December 31, 2025, ability to meet operational goals, ability to meet expectations
in deployment of care coordination and management capabilities, ability to decrease cost of care while improving quality and outcomes,
ability to deliver sustainable revenue and EBITDA growth as well as long-term value, ability to respond to the changing environment, statements
about the Company's liquidity, and successful completion and implementation of strategic growth plans, acquisition strategy, and
merger integration efforts. Forward-looking statements reflect current views with respect to future events and financial performance and
therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of the Company's management,
and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results
may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the
risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed
in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent quarterly reports on Form
10-Q. Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. The Company undertakes
no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise,
except as may be required by any applicable securities laws.
FOR MORE INFORMATION, PLEASE CONTACT:
ASTRANA HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| March 31, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 258,517 | $ | 288,455 | ||||
| Investment in marketable securities | 2,397 | 2,378 | ||||||
| Receivables, net | 241,078 | 225,733 | ||||||
| Receivables, net - related parties | 56,846 | 50,257 | ||||||
| Income taxes receivable | 15,802 | 19,316 | ||||||
| Other receivables | 14,919 | 29,496 | ||||||
| Prepaid expenses and other current assets | 23,711 | 22,861 | ||||||
| Total current assets | 613,270 | 638,496 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 16,849 | 14,274 | ||||||
| Intangible assets, net | 111,916 | 118,179 | ||||||
| Goodwill | 416,386 | 419,253 | ||||||
| Income taxes receivable | 15,943 | 15,943 | ||||||
| Loans receivable, non-current | 48,134 | 51,266 | ||||||
| Investments in other entities - equity method | 38,005 | 39,319 | ||||||
| Investments in privately held entities | 8,896 | 8,896 | ||||||
| Restricted cash | 647 | 646 | ||||||
| Operating lease right-of-use assets | 30,698 | 32,601 | ||||||
| Other assets | 30,512 | 16,021 | ||||||
| Total non-current assets | 717,986 | 716,398 | ||||||
| Total assets (1) | $ | 1,331,256 | $ | 1,354,894 | ||||
| Liabilities, Mezzanine Deficit, and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 105,559 | $ | 106,142 | ||||
| Fiduciary accounts payable | 4,840 | 8,223 | ||||||
| Medical liabilities | 204,101 | 209,039 | ||||||
| Dividend payable | 638 | 638 | ||||||
| Finance lease liabilities | 471 | 554 | ||||||
| Operating lease liabilities | 4,979 | 5,350 | ||||||
| Current portion of long-term debt | 12,500 | 9,375 | ||||||
| Other liabilities | 28,180 | 26,287 | ||||||
| Total current liabilities | 361,268 | 365,608 | ||||||
| Non-current liabilities | ||||||||
| Deferred tax liability | 4,197 | 4,555 | ||||||
| Finance lease liabilities, net of current portion | 543 | 607 | ||||||
| Operating lease liabilities, net of current portion | 28,963 | 30,654 | ||||||
| Long-term debt, net of current portion and deferred financing costs | 403,894 | 425,299 | ||||||
| Other long-term liabilities | 14,685 | 14,003 | ||||||
| Total non-current liabilities | 452,282 | 475,118 | ||||||
| Total liabilities (1) | 813,550 | 840,726 | ||||||
| Mezzanine deficit | ||||||||
| Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") | (232,733 | ) | (202,558 | ) | ||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.001 par value per share; 5,000,000 shares authorized as of March 31, 2025 and December 31, 2024 | ||||||||
| Series A Preferred stock, zero authorized and issued and zero outstanding as of March 31, 2025 and zero authorized and issued and zero outstanding as of December 31, 2024 | - | - | ||||||
| Series B Preferred stock, zero authorized and issued and zero outstanding as of March 31, 2025 and zero authorized and issued and zero outstanding as of December 31, 2024 | - | - | ||||||
| Common stock, $0.001 par value per share; 100,000,000 shares authorized, 49,028,624 (2) and 47,929,872 shares issued and outstanding, excluding 9,903,953 and 10,603,849 treasury shares, as of March 31, 2025 and December 31, 2024, respectively | 49 | 48 | ||||||
| Additional paid-in capital | 452,439 | 426,389 | ||||||
| Retained earnings | 292,880 | 286,283 | ||||||
| Total stockholders' equity | 745,368 | 712,720 | ||||||
| Non-controlling interest | 5,071 | 4,006 | ||||||
| Total equity | 750,439 | 716,726 | ||||||
| Total liabilities, mezzanine deficit, and stockholders' equity | $ | 1,331,256 | $ | 1,354,894 |
(1) The Company's condensed consolidated
balance sheets include the assets and liabilities of its consolidated VIEs. The condensed consolidated balance sheets include total assets
that can be used only to settle obligations of the Company's consolidated VIEs totaling $678.1 million and $712.3 million as of
March 31, 2025 and December 31, 2024, respectively, and total liabilities of the Company's consolidated VIEs for which
creditors do not have recourse to the general credit of the primary beneficiary of $212.1 million and $207.9 million as of March 31,
2025 and December 31, 2024, respectively. These VIE balances do not include $190.2 million of investment in affiliates and $4.5 million
of amounts due to affiliates as of March 31, 2025, and $224.9 million of investment in affiliates and $48.1 million of amounts due
to affiliates as of December 31, 2024, as these are eliminated upon consolidation and not presented within the condensed consolidated
(2) As of May 5, 2025, there were 56,061,712
shares of common stock of the registrant issued and outstanding, which includes 6,132,802 treasury shares that are owned by Allied Physicians
of California, a Professional Medical Corporation d.b.a. Allied Pacific of California IPA ("APC"). The shares owned by APC
are legally issued and outstanding but excluded from shares of common stock outstanding in the Company's consolidated financial