Full Press Release Details
Astrana Health, Inc. Reports Fourth Quarter
and Year-End 2023 Results
Company to Host Conference Call on Tuesday,
Feb. 27, 2024, at 2:30 p.m. PT/5:30 p.m. ET
ALHAMBRA, Calif., February 27, 2024 /PRNewswire/
-- Astrana Health, Inc. (together with its subsidiaries and affiliated entities, "Astrana") (NASDAQ: ASTH), a leading provider-centric,
technology-powered healthcare company focused on enabling providers in the successful delivery of value-based care, today announced its
consolidated financial results for the fourth quarter and year ended December 31, 2023.
"We are proud to announce another year marked
by rapid scaling of our unique care model to empower providers and improve healthcare for local communities at Astrana Health. We coupled
that with robust financial achievements, ensuring that our growth efforts are sustainable and maintaining a focus on profitability. We
continue to execute against our strategic roadmap: 1) focusing on expanding our membership base across existing and new geographies, 2)
increasing the level of accountability and risk we are responsible for in our value-based care contracts, 3) empowering our providers
to achieve superior patient outcomes, and 4) executing strategic acquisitions to further accelerate our growth trajectory for the foreseeable
future," said Brandon K. Sim, President and Chief Executive Officer of Astrana Health.
Financial Highlights for the Year Ended December 31,
All comparisons are to year ended December
31, 2022 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
Financial Highlights for Fourth Quarter 2023:
All comparisons are to the quarter ended December
31, 2022 unless otherwise stated.
| - | Total revenue of $353.0 million, up 20% from $294.2 million | |
| - | Care Partners revenue of $333.7 million, up 24% from $269.3 million | |
| - | Net income attributable to Astrana of $12.4 million, compared to a loss of $3.7 million | |
| - | EPS - diluted of $0.26, compared to $(0.08) per share | |
| - | Adjusted EBITDA (1) of $29.0 million, up 23% from $23.7 million |
(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 the Year Ended December 31,
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||
| (in thousands) | Care Partners | Care Delivery | Care Enablement | Other | Intersegment Elimination | Corporate Costs | Consolidated Total | |||||||||||||||||||||
| Total revenues | $ | 1,300,112 | $ | 119,904 | $ | 135,824 | $ | 937 | $ | (170,116 | ) | $ | - | $ | 1,386,661 | |||||||||||||
| % change vs. prior year | 24 | % | 25 | % | 13 | % | ||||||||||||||||||||||
| Cost of services | 1,182,484 | 96,265 | 59,075 | 296 | (166,417 | ) | - | 1,171,703 | ||||||||||||||||||||
| General and administrative (1) | 25,907 | 17,766 | 57,672 | 3,752 | (7,923 | ) | 33,171 | 130,345 | ||||||||||||||||||||
| Total expenses | 1,208,391 | 114,031 | 116,747 | 4,048 | (174,340 | ) | 33,171 | 1,302,048 | ||||||||||||||||||||
| Income (loss) from operations | $ | 91,721 | $ | 5,873 | $ | 19,077 | $ | (3,111 | ) | $ | 4,224 | (2) | $ | (33,171 | ) | $ | 84,613 | |||||||||||
| % change vs. prior year | 8 | % | (35 | )% | (29 | )% |
(1) Balance includes general and administrative
expenses and depreciation and amortization.
(2) Income from operations for the
intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other
income which is not presented in the table.
Astrana is providing the following guidance for
total revenue, net income attributable to Astrana, Adjusted EBITDA, and EPS - diluted. These guidance assumptions are based on
the Company's existing business, current view of existing market conditions and assumptions for the year ending December 31, 2024.
| 2024 Guidance Range | ||||||||
| ($ in millions) | Low | High | ||||||
| Total revenue | $ | 1,650.0 | $ | 1,850.0 | ||||
| Net income attributable to Astrana Health, Inc. | $ | 61.0 | $ | 73.0 | ||||
| Adjusted EBITDA | $ | 165.0 | $ | 185.0 | ||||
| EPS - diluted | $ | 1.28 | $ | 1.52 |
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 (Tuesday, February 27, 2024), during which management will discuss the results of the fourth quarter and year ended December 31,
2023. 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 or; |
| + 1 (201) 689-8517 |
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=EM7HqFSl
An accompanying slide presentation will be available
in PDF format on the "IR Calendar" page of the Company's website (ir.astranahealth.com) after issuance of the
earnings release and will be filed as an exhibit to Astrana's current report on Form 8-K to be filed with the SEC, accessible at
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.
Note About Stockholders' Equity, Certain
Treasury Stock and Earnings Per Share
As of the date of this press release, 41,048
holdback shares have not been issued to certain former shareholders of the Company's subsidiary, Astrana Health Management, Inc.
("AHM"), formerly known as Network Medical Management, Inc., who were AHM shareholders at the time of closing of the merger,
as they have yet to submit properly completed letters of transmittal to Astrana in order to receive their pro rata portion of Astrana's
common stock and warrants as contemplated under that certain Agreement and Plan of Merger, dated December 21, 2016, among Astrana, AHM,
Apollo Acquisition Corp. ("Merger Subsidiary") and Kenneth Sim, M.D., as amended, pursuant to which Merger Subsidiary merged
with and into AHM, with AHM as the surviving corporation. Pending such receipt, such former AHM shareholders have the right to receive,
without interest, their pro rata share of dividends or distributions with a record date after the effectiveness of the merger. The Company's
consolidated financial statements have treated such shares of common stock as outstanding, given the receipt of the letter of transmittal
is considered perfunctory and Astrana is legally obligated to issue these shares in connection with the merger.
Shares of Astrana's common stock owned
by Allied Physicians of California, a Professional Medical Corporation ("APC"), a VIE of the Company, are legally issued
and outstanding but excluded from shares of common stock outstanding in the Company's consolidated financial statements, as such
shares are treated as treasury shares for accounting purposes. Such shares, therefore, are not included in the number of shares of common
stock outstanding used to calculate the Company's earnings per share.
About Astrana Health
Astrana is a leading provider-centric,
technology-powered healthcare company enabling providers to deliver accessible, high-quality, and high-value care to all. Leveraging
its proprietary end-to-end technology solutions, Astrana operates an integrated healthcare delivery platform that enables providers to
successfully participate in value-based care arrangements, thus empowering them to deliver high quality care to patients in a cost-effective
Alhambra, California, Astrana serves over 10,000 providers and 900,000 Americans in value-based care arrangements. Its subsidiaries and
affiliates include management services organizations (MSOs), affiliated independent practice associations (IPAs), accountable care organizations
(ACOs), and care delivery entities across primary, multi-specialty, and ancillary care. For more information, please 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 year ending December 31, 2024, 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, and successful 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, 2023, which will
be filed with the SEC, 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: