Full Press Release Details
| Evolent Health, Inc. | ||
| 800 North Glebe Road, # 500 | ||
| Arlington, Virginia 22203 |
Evolent Health Announces Second Quarter 2015 Results
Arlington, VA, August 6, 2015 - Evolent Health, Inc. (NYSE: EVH), a pioneer in value-based care, today announced financial results for the quarter ended June 30, 2015.
Frank Williams, Chief Executive Officer of Evolent Health, Inc., commented, "We are pleased with our results for the quarter, our first as a public company, as we ended the quarter with over 590,000 lives on our platform driven by continued expansion of our existing clients and significant interest from new markets. We continue to see increased movement in the market towards value-based care arrangements as government and commercial payers seek higher-value alternatives to fee-for-service reimbursement. Our performance for the quarter keeps us on track with our objectives for 2015 as we anticipate continued demand for our integrated platform to support health systems in delivering improved clinical and financial outcomes."
Financial Results of Evolent Health, Inc.
Evolent Health, Inc. completed a reorganization of its corporate structure on June 4, 2015 (the "Reorganization") in connection with the initial public offering of its Class A common stock ("IPO"). Prior to the Reorganization, Evolent Health, Inc. had no operations. As a result, the financial statements of Evolent Health, Inc. for the three and six months ended June 30, 2015 and 2014 do not reflect a complete view of the operational results for those periods. In order to provide consistent and comparable metrics for the periods before and after June 4, 2015, the adjusted results of Evolent Health, Inc. presented and discussed in this release reflect the Reorganization as if it had occurred on the first day of the relevant period. The adjusted results include the operations of Evolent Health LLC for the period from January 1, 2014 through June 4, 2015 as well as certain other adjustments. See "Financial Statement Presentation" and "Non-GAAP Financial Measures" for more information.
Evolent Health, Inc. reported United States of America generally accepted accounting principles ("GAAP") revenue of $10.4 million for the three and six months ended June 30, 2015, which do not reflect the operating results of Evolent Health LLC prior to June 4, 2015 (the date of the Reorganization), compared to zero for the same periods in 2014. Adjusted Revenue was $36.5 million and $73.5 million for the three and six months ended June 30, 2015, respectively.
Cost of revenue was $7.9 million for the three and six months ended June 30, 2015, compared to zero for the same periods in 2014. Operating income (loss) was $(11.5) million for the three and six months ended June 30, 2015, compared to zero for the same periods in 2014. Net income (loss) attributable to Evolent Health, Inc. was $359.9 million and $(5.9) million for the three months ended June 30, 2015 and June 30, 2014, respectively, and $348.6 million and $(11.4) million for the six months ended June 30, 2015 and June 30, 2014, respectively. Earnings (loss) per share available for common shareholders was $25.69 per basic share and $9.73 per diluted share for the three months ended June 30, 2015 and $(3.17) per basic and diluted share for the three months ended June 30, 2014. Earnings (loss) per share available for common shareholders was $40.69 per basic share and $10.96 per diluted share for the six months ended June 30, 2015 and $(6.51) per basic and diluted share for the six months ended June 30, 2014.
Total cash, cash equivalents, and marketable securities for the quarter ended June 30, 2015 were $219.4 million.
Evolent Health, Inc. is providing the following guidance for Adjusted Revenue and Adjusted EBITDA.
Third Quarter 2015 Guidance
For the three months ended September 30, 2015, Adjusted Revenue is expected to be in the range of $42.0 million to $43.0 million and Adjusted EBITDA is expected to be in the range of $(8.0) million to $(9.0) million.
Fiscal Year 2015 Guidance
For the fiscal year 2015, Adjusted Revenue is expected to be in the range of $159.0 million to $161.0 million and Adjusted EBITDA is expected to be in the range of $(37.0) million to $(39.0) million.
This "Business Outlook" section contains forward-looking statements, and actual results may differ materially. Factors that may cause actual results to differ materially from our current expectations are set forth in "Forward Looking Statements - Cautionary Language" and Evolent Health, Inc.'s filings with the Securities and Exchange Commission ("SEC").
Web and Conference Call Information
As previously announced, Evolent Health, Inc. will hold a conference call to discuss its second quarter performance this evening, August 6, 2015, at 5:00 p.m., Eastern Time. The conference call will be available via live webcast on the Company's Investor Relations website at http://ir.evolenthealth.com. To participate by telephone, dial 877-870-4263 and ask to join to the Evolent Health call. Participants are advised to dial in at least five minutes prior to the call to register. The call will be archived on the company's website for 90 days and will be available beginning later this evening. Evolent Health invites all interested parties to attend the conference call.
About Evolent Health
| Bob East | Robin Glass |
| (443) 213-0500 | (571) 389-6005 |
| Investor Relations | Media Relations |
| InvestorRelations@evolenthealth.com | RGlass@evolenthealth.com |
Financial Statement Presentation
Evolent Health, Inc. is a holding company and its principal asset is all of the Class A common units in its operating subsidiary, Evolent Health LLC, which has owned all of our operating assets and substantially all of our business since inception. Prior to the Reorganization on June 4, 2015, the predecessor of Evolent Health, Inc. accounted for Evolent Health LLC as an equity method investment. The financial results of Evolent Health LLC have been consolidated in the financial statements of Evolent Health, Inc. following the Reorganization. As a result, the financial statements of Evolent Health, Inc. for the three and six months ended June 30, 2015 and 2014, do not reflect a complete view of the operational results for those periods. In order to provide a consistent presentation for the periods before and after June 4, 2015 and effectively provide comparative results, the adjusted results of Evolent Health, Inc. presented and discussed in this release reflect the Reorganization as if it had occurred on the first day of the relevant period and therefore include the operations of Evolent Health LLC for the period from January 1, 2014 through June 4, 2015. Including Evolent Health LLC's results for this period is not consistent with U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to comparable GAAP measures. The details in the tabular presentation below reflect certain income statement line items as adjusted to reflect results from operations for the three and six month periods as if the Reorganization had occurred at the beginning of the respective periods. The presentation also reflects other adjustments described in "Non-GAAP Financial Measures."
Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with GAAP, we present and discuss Adjusted Revenue, Adjusted Transformation Revenue, Adjusted Platform and Operations Revenue, Adjusted Cost of Revenue, Adjusted Selling, General and Administrative Expenses, Adjusted Depreciation and Amortization, Adjusted Operating Income (Loss), Adjusted EBITDA and Adjusted Earnings (Loss) per Share Available for Common Shareholders, which are all non-GAAP financial measures, as a supplemental measure to help investors evaluate our fundamental operational performance. In addition to the adjustments described below, each of the following adjusted measures are also adjusted to reflect the Reorganization as if it had occurred on the first day of the relevant period as described in "Financial Statement Presentation" and are adjusted to exclude the impact of purchase accounting adjustments, stock-based compensation expenses and transaction expenses related to the Reorganization and IPO.
Adjusted EBITDA is also adjusted to exclude depreciation and amortization expense, other income (expense), interest (income) / expense, net income (loss) attributable to non-controlling interests, provision (benefit) for income taxes, income (loss) from affiliate and gain on consolidation.
Adjusted Earnings (Loss) per Share Available for Common Shareholders is also adjusted to exclude net income (loss) attributable to non-controlling interests and undeclared cumulative preferred dividends.
These adjusted measures do not represent and should not be considered as alternatives to GAAP measurements, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. A reconciliation of these adjusted measures to the comparable GAAP financial measures is presented in the attached tables. We believe these measures are useful across time in evaluating our fundamental core operating performance. Management also uses certain of these measures to manage our business, including in preparing its annual operating budget, financial projections and compensation plans. We believe that certain of these measures are also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries.
Evolent Health, Inc.
For the Three Months Ended June 30, 2015 and 2014
| (in thousands) | For the Three Months Ended June 30, 2015 | For the Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
| Add: | Add: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Evolent | Evolent | Less: | Less: | Less: | Evolent | Evolent | Evolent | Less: | Evolent | ||||||||||||||||||||||||||||||||||||||||
| Health, Inc. | Health LLC | Purchase | Stock-based | Transaction | Health, Inc. | Health, Inc. | Health LLC | Stock-based | Health, Inc. | Change Over Prior Period | |||||||||||||||||||||||||||||||||||||||
| as Reported | Operations (1) | Accounting (2) | Compensation | Costs | as Adjusted | as Reported | Operations (3) | Compensation | Adjusted | $ | % | ||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||
| Transformation | $ | 2,703 | $ | 5,380 | $ | 364 | $ | - | $ | - | $ | 8,447 | $ | - | $ | 8,532 | $ | - | $ | 8,532 | $ | (85 | ) | (1.0 | )% | ||||||||||||||||||||||||
| Platform and operations | 7,711 | 19,394 | 911 | - | - | 28,016 | - | 15,657 | - | 15,657 | 12,359 | 78.9 | % | ||||||||||||||||||||||||||||||||||||
| Total revenue | 10,414 | 24,774 | 1,275 | - | - | 36,463 | - | 24,189 | - | 24,189 | 12,274 | 50.7 | % | ||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue (exclusive | |||||||||||||||||||||||||||||||||||||||||||||||||
| of depreciation and | |||||||||||||||||||||||||||||||||||||||||||||||||
| amortization presented | |||||||||||||||||||||||||||||||||||||||||||||||||
| separately below) | 7,887 | 18,385 | - | 1,343 | - | 24,929 | - | 18,045 | 225 | 17,820 | 7,109 | 39.9 | % | ||||||||||||||||||||||||||||||||||||
| Selling, general and | |||||||||||||||||||||||||||||||||||||||||||||||||
| administrative expenses | 13,082 | 30,006 | - | 18,529 | 2,777 | 21,782 | - | 18,477 | 2,744 | 15,733 | 6,049 | 38.4 | % | ||||||||||||||||||||||||||||||||||||
| Depreciation and | |||||||||||||||||||||||||||||||||||||||||||||||||
| amortization expenses | 984 | 1,154 | - | - | - | 2,138 | - | 641 | - | 641 | 1,497 | N/A | |||||||||||||||||||||||||||||||||||||
| Total operating | |||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | 21,953 | 49,545 | - | 19,872 | 2,777 | 48,849 | - | 37,163 | 2,969 | 34,194 | 14,655 | 42.9 | % | ||||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||||||||||||||||
| (loss) | $ | (11,539 | ) | $ | (24,771 | ) | $ | 1,275 | $ | (19,872 | ) | $ | (2,777 | ) | $ | (12,386 | ) | $ | - | $ | (12,974 | ) | $ | (2,969 | ) | $ | (10,005 | ) | $ | (2,381 | ) | 23.8 | % |
Evolent Health, Inc.
For the Six Months Ended June 30, 2015 and 2014
| (in thousands) | For the Six Months Ended June 30, 2015 | For the Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
| Add: | Add: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Evolent | Evolent | Less: | Less: | Less: | Evolent | Evolent | Evolent | Less: | Evolent | ||||||||||||||||||||||||||||||||||||||||
| Health, Inc. | Health LLC | Purchase | Stock-based | Transaction | Health, Inc. | Health, Inc. | Health LLC | Stock-based | Health, Inc. | Change Over Prior Period | |||||||||||||||||||||||||||||||||||||||
| as Reported | Operations (1) | Accounting (2) | Compensation | Costs | as Adjusted | as Reported | Operations (3) | Compensation | Adjusted | $ | % | ||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||
| Transformation | $ | 2,703 | $ | 15,755 | $ | 364 | $ | - | $ | - | $ | 18,822 | $ | - | $ | 15,951 | $ | - | $ | 15,951 | $ | 2,871 | 18.0 | % | |||||||||||||||||||||||||
| Platform and operations | 7,711 | 46,059 | 911 | - | - | 54,681 | - | 28,314 | - | 28,314 | 26,367 | 93.1 | % | ||||||||||||||||||||||||||||||||||||
| Total revenue | 10,414 | 61,814 | 1,275 | - | - | 73,503 | - | 44,265 | - | 44,265 | 29,238 | 66.1 | % | ||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue (exclusive | |||||||||||||||||||||||||||||||||||||||||||||||||
| of depreciation and | |||||||||||||||||||||||||||||||||||||||||||||||||
| amortization presented | |||||||||||||||||||||||||||||||||||||||||||||||||
| separately below) | 7,887 | 44,839 | - | 1,783 | - | 50,943 | - | 32,867 | 323 | 32,544 | 18,399 | 56.5 | % | ||||||||||||||||||||||||||||||||||||
| Selling, general and | |||||||||||||||||||||||||||||||||||||||||||||||||
| administrative expenses | 13,082 | 58,457 | - | 26,109 | 3,775 | 41,655 | - | 34,719 | 4,074 | 30,645 | 11,010 | 35.9 | % | ||||||||||||||||||||||||||||||||||||
| Depreciation and | |||||||||||||||||||||||||||||||||||||||||||||||||
| amortization expenses | 984 | 2,637 | - | - | - | 12,068 | - | 1,297 | - | 1,297 | 10,771 | 830.5 | % | ||||||||||||||||||||||||||||||||||||
| Total operating | |||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | 21,953 | 105,933 | - | 27,892 | 3,775 | 96,219 | - | 68,883 | 4,397 | 64,486 | 40,180 | 62.3 | % | ||||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||||||||||||||||
| (loss) | $ | (11,539 | ) | $ | (44,119 | ) | $ | 1,275 | $ | (27,892 | ) | $ | (3,775 | ) | $ | (22,716 | ) | $ | - | $ | (24,618 | ) | $ | (4,397 | ) | $ | (20,221 | ) | $ | (10,942 | ) | 54.1 | % |
Evolent Health, Inc.
Reconciliation of Adjusted EBITDA to Net Income (Loss)
| (in thousands) | For the Three | For the Six | |||||||||||||
| Months Ended | Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net Income (Loss) Attributable to | |||||||||||||||
| Evolent Health, Inc. | $ | 359,912 | $ | (5,939 | ) | $ | 348,593 | $ | (11,381 | ) | |||||
| Add: | |||||||||||||||
| Net income (loss) of Evolent Health LLC (1) | (24,764 | ) | (12,916 | ) | (44,079 | ) | (24,542 | ) | |||||||
| Less: | |||||||||||||||
| Purchase accounting adjustments | (1,275 | ) | - | (1,275 | ) | - | |||||||||
| Gain on consolidation | 414,133 | - | 414,133 | - | |||||||||||
| Income (loss) from affiliate | (16,846 | ) | (5,939 | ) | (28,165 | ) | (11,381 | ) | |||||||
| (Provision) benefit for income taxes | (29,273 | ) | - | (29,273 | ) | - | |||||||||
| Net (income) loss attributable to | - | ||||||||||||||
| non-controlling interests | 3,424 | - | 3,424 | - | |||||||||||
| Stock-based compensation | (19,872 | ) | (2,969 | ) | (27,892 | ) | (4,397 | ) | |||||||
| Transaction costs | (2,777 | ) | - | (3,775 | ) | - | |||||||||
| Interest (income) expense, net | 20 | 58 | 51 | 85 | |||||||||||
| Other income (expense), net | - | - | 2 | (9 | ) | ||||||||||
| Depreciation and amortization expense | (2,138 | ) | (641 | ) | (3,621 | ) | (1,297 | ) | |||||||
| Adjusted EBITDA | $ | (10,248 | ) | $ | (9,364 | ) | $ | (19,095 | ) | $ | (18,924 | ) |
Evolent Health, Inc.
Reconciliation of Adjusted Earnings (Loss) per Share Available for Common Shareholders to
Earnings (Loss) per Share Available for Common Shareholders
| (in thousands, except per share data) | For the Three | For the Six | |||||||||||||
| Months Ended | Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Earnings (Loss) Available for | |||||||||||||||
| Common Shareholders - Diluted (a) | $ | 356,488 | $ | (7,210 | ) | $ | 345,169 | $ | (13,947 | ) | |||||
| Less: | |||||||||||||||
| Net income (loss) attributable to | |||||||||||||||
| non-controlling interests | (3,424 | ) | - | (3,424 | ) | - | |||||||||
| Undeclared cumulative preferred dividends | 894 | - | 2,184 | - | |||||||||||
| Earnings (Loss) Available for | |||||||||||||||
| Common Shareholders - Basic (b) | 359,018 | (7,210 | ) | 346,409 | (13,947 | ) | |||||||||
| Add: | |||||||||||||||
| Net income (loss) of Evolent Health LLC (1) | (24,764 | ) | (12,916 | ) | (44,079 | ) | (24,542 | ) | |||||||
| Less: | |||||||||||||||
| Purchase accounting adjustments | (1,275 | ) | - | (1,275 | ) | - | |||||||||
| Gain on consolidation | 414,133 | - | 414,133 | - | |||||||||||
| Income (loss) from affiliate | (16,846 | ) | (5,939 | ) | (28,165 | ) | (11,381 | ) | |||||||
| (Provision) benefit for income taxes | (29,273 | ) | - | (29,273 | ) | - | |||||||||
| Net (income) loss attributable to | |||||||||||||||
| non-controlling interests | 3,424 | - | 3,424 | - | |||||||||||
| Stock-based compensation | (19,872 | ) | (2,969 | ) | (27,892 | ) | (4,397 | ) | |||||||
| Transaction costs | (2,777 | ) | - | (3,775 | ) | - | |||||||||
| Adjusted Earnings (Loss) Available | |||||||||||||||
| for Common Shareholders (c) (2) | $ | (13,260 | ) | $ | (11,218 | ) | $ | (24,847 | ) | $ | (22,711 | ) | |||
| Earnings (Loss) per Share Available | |||||||||||||||
| for Common Shareholders - Diluted (a) (2) | $ | 9.73 | $ | (3.17 | ) | $ | 10.96 | $ | (6.51 | ) | |||||
| Earnings (Loss) per Share Available | |||||||||||||||
| for Common Shareholders - Basic (b) (2) | $ | 25.69 | $ | (3.17 | ) | $ | 40.69 | $ | (6.51 | ) | |||||
| Adjusted Earnings (Loss) per Share Available | |||||||||||||||
| for Common Shareholders - Basic (c) (1) | $ | (0.95 | ) | $ | (4.94 | ) | $ | (2.92 | ) | $ | (10.61 | ) | |||
| Weighted-average common shares - basic | 13,976 | 2,272 | 8,513 | 2,141 | |||||||||||
| Weighted-average common shares - diluted | 36,643 | 2,272 | 31,488 | 2,141 |
Evolent Health, Inc.
Condensed Consolidated Balance Sheets
| (in thousands) | As of | As of | |||||
| June 30, | December 31, | ||||||
| 2015 | 2014 | ||||||
| Cash and cash equivalents | $ | 219,367 | - | ||||
| Total current assets | 251,640 | 1,074 | |||||
| Goodwill | 608,903 | - | |||||
| Intangible assets, net | 168,170 | - | |||||
| Total assets | 1,039,837 | 38,277 | |||||
| Total liabilities | 91,133 | 1,074 | |||||
| Total redeemable preferred stock | - | 39,273 | |||||
| Total shareholders' equity (deficit) attributable to Evolent Health, Inc. | 654,210 | (2,070 | ) | ||||
| Non-controlling interests | 294,494 | - | |||||
| Total liabilities, redeemable preferred stock and shareholders' equity (deficit) | 1,039,837 | 38,277 |
Evolent Health, Inc.
Condensed Consolidated Statements of Operations
| (in thousands) | For the Three | For the Six | |||||||||||||
| Months Ended | Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Revenue | |||||||||||||||
| Transformation | $ | 2,703 | - | $ | 2,703 | - | |||||||||
| Platform and operations | 7,711 | - | 7,711 | - | |||||||||||
| Total revenue | 10,414 | - | 10,414 | - | |||||||||||
| Expenses | |||||||||||||||
| Cost of revenue (exclusive of depreciation | |||||||||||||||
| and amortization presented below) | 7,887 | - | 7,887 | - | |||||||||||
| Selling, general and administrative expenses | 13,082 | - | 13,082 | - | |||||||||||
| Depreciation and amortization expenses | 984 | - | 984 | - | |||||||||||
| Total operating expenses | 21,953 | - | 21,953 | - | |||||||||||
| Operating income (loss) | (11,539 | ) | - | (11,539 | ) | - | |||||||||
| Interest income (expense), net | 13 | - | 13 | - | |||||||||||
| Gain on consolidation | 414,133 | - | 414,133 | - | |||||||||||
| Income (loss) from affiliate | (16,846 | ) | (5,939 | ) | (28,165 | ) | (11,381 | ) | |||||||
| Income (loss) before income taxes | |||||||||||||||
| and non-controlling interests | 385,761 | (5,939 | ) | 374,442 | (11,381 | ) | |||||||||
| Provision (benefit) for income taxes | 29,273 | - | 29,273 | - | |||||||||||
| Net income (loss) | 356,488 | (5,939 | ) | 345,169 | (11,381 | ) | |||||||||
| Net income (loss) attributable to | |||||||||||||||
| non-controlling interests | (3,424 | ) | - | (3,424 | ) | - | |||||||||
| Net income (loss) attributable to | |||||||||||||||
| Evolent Health, Inc. | $ | 359,912 | $ | (5,939 | ) | $ | 348,593 | $ | (11,381 | ) | |||||
| Earnings (Loss) Available to Common Shareholders | |||||||||||||||
| Basic | $ | 359,018 | $ | (7,210 | ) | $ | 346,409 | $ | (13,947 | ) | |||||
| Diluted | 356,488 | (7,210 | ) | 345,169 | (13,947 | ) | |||||||||
| Earnings (Loss) per Common Share | |||||||||||||||
| Basic | $ | 25.69 | $ | (3.17 | ) | $ | 40.69 | $ | (6.51 | ) | |||||
| Diluted | 9.73 | (3.17 | ) | 10.96 | (6.51 | ) | |||||||||
| Weighted-Average Common Shares Outstanding | |||||||||||||||
| Basic | 13,976 | 2,272 | 8,513 | 2,141 | |||||||||||
| Diluted | 36,643 | 2,272 | 31,488 | 2,141 |
Evolent Health, Inc.
Condensed Consolidated Statements of Cash Flows
| (in thousands) | For the Six | |||||
| Months Ended | ||||||
| June 30, | ||||||
| 2015 | 2014 | |||||
| Net cash provided by (used in) operating activities | $ | (5,808 | ) | - | ||
| Net cash provided by (used in) investing activities | 16,050 | - | ||||
| Net cash provided by (used in) financing activities | 209,125 | - | ||||
| Net increase (decrease) in cash and cash equivalents | 219,367 | - | ||||
| Cash and cash equivalents as of beginning-of-period | - | - | ||||
| Cash and cash equivalents as of end-of-period | $ | 219,367 | - |
Forward Looking Statements - Cautionary Language
Certain statements made in this release and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical or current fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe", "anticipate", "expect", "estimate", "aim", "predict", "potential", "continue", "plan", "project", "will", "should", "shall", "may", "might" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services, future performance or financial results and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.
These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:
The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. The prospectus for our IPO filed with the SEC on June 5, 2015 and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this release.