Agiliti announces financial results for second quarter 2021 and raises full year 2021 guidance
Minneapolis--(business wire)--agiliti, inc. (nyse: agti) (“agiliti”), a nationwide provider of healthcare technology management and service solutions to the united states healthcare industry, today announced its financial results for the quarter ended june 30, 2021, and raised its full-year guidance for 2021. second quarter 2021 highlights revenue growth of 35 percent year-over-year to $251 million net loss of $5.2 million, down $6.0 million from the prior year period, and diluted loss per share of $0.04, down $0.05 per share from the prior year period adjusted ebitda1 growth of 35 percent year-over-year to $78 million, and adjusted diluted earnings per share of $0.23, up $0.09 per share from the prior year period leverage ratio1 further reduced to 3.2x raised full year 2021 guidance with expected revenue of $965-980 million and adjusted ebitda of $280-290 million2 “our strong results from q2 and our increased guidance for the year reflect our confidence in this team’s ability to consistently execute on our strategy,” said tom leonard, chief executive officer. “we remain focused on meeting the needs of our customers—helping them navigate the ongoing impact of covid-19 while also supporting their long-term operational objectives. agiliti holds a unique and essential role supporting our nation’s healthcare system, and our strong track record and performance further demonstrate that the services we provide are always necessary and in high demand.” second quarter and first half 2021 financial results total revenue for the three months ended june 30, 2021, was $250.5 million, representing a 35.3 percent increase from total revenue of $185.2 million for the same period of 2020. total revenue for the six months ended june 30, 2021, was $485.8 million, representing a 33.3 percent increase from total revenue of $364.4 million for the same period of 2020. net loss for the three months ended june 30, 2021, was $5.2 million compared to a net income of $0.8 million for the same period of 2020. net income for the six months ended june 30, 2021, was $4.4 million, representing a $16.2 million increase compared to a net loss of $11.8 million for the same period of 2020. adjusted ebitda for the three months ended june 30, 2021, was $77.7 million, a 35.3 percent increase from adjusted ebitda of $57.4 million for the same period of 2020. adjusted ebitda for the six months ended june 30, 2021, was $163.9 million, a 54.4 percent increase from adjusted ebitda of $106.2 million for same period of 2020. subsequent event on august 10, 2021, agiliti and the u.s. department of health and human services (“hhs”) and the assistant secretary for preparedness and response extended agiliti’s agreement for the comprehensive maintenance and management services of medical ventilator equipment for a period of 60 days from the initial contract expiration date of july 27, 2021. the company expects that hhs will issue a public request for proposal and make a new contract award prior to the september 27, 2021 expiration of the extension period. agiliti intends to compete for the new contract award. 2021 financial outlook for the full year 2021, the company now expects revenue to be in the range of $965 million to $980 million, an increase from the prior range of $950 million to $975 million, representing growth of 25 to 27 percent. in addition, the company now expects adjusted ebitda to be in the range of $280 million to $290 million, an increase from the prior range of $275 million to $285 million, representing growth of 20 to 24 percent. consistent with its previously reported guidance, the company expects capital expenditures for 2021 to be in the range of $65 million to $70 million. 1 non-gaap measures. see further discussion below. 2 with regard to the non-gaap adjusted ebitda guidance provided above, a reconciliation to gaap net income has not been provided as the quantification of certain items included in the calculation of gaap net income cannot be calculated or predicted at this time without unreasonable efforts. for example, the non-gaap adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-gaap adjustment for certain reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. for the same reasons, the company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future gaap financial results. conference call information agiliti will hold a conference call to discuss its 2021 second quarter results on thursday, august 12, at 5 p.m. eastern time (4 p.m. central time). the conference call can be accessed live over the phone by dialing 1-877-407-0792 or for international callers, 1-201-689-8263. 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 13721390. the replay will be available until august 19, 2021. interested investors and other parties may view a simultaneous webcast of the conference call by visiting the agiliti investor relations site at https://investors.agilitihealth.com. the webcast replay will be available for a limited time shortly following the call. about agiliti agiliti is an essential service provider to the u.s. healthcare industry with solutions that help support a more efficient, safe and sustainable healthcare delivery system. agiliti serves more than 7,000 national, regional and local acute care and alternate site providers across the u.s. for more than eight decades, agiliti has delivered medical equipment management and service solutions that help healthcare providers reduce costs, increase operating efficiencies and support optimal patient outcomes. forward-looking statements safe harbor statement under the private securities litigation reform act of 1995: agiliti, inc., believes statements in this presentation looking forward in time, including preliminary results, involve risks and uncertainties. the following factors, among others, could adversely affect our business, operations and financial condition causing our actual results to differ materially from those expressed in any forward-looking statements: our history of net losses and substantial interest expense; our need for substantial cash to operate and expand our business as planned; our substantial outstanding debt and debt service obligations; restrictions imposed by the terms of our debt; a decrease in the number of patients our customers are serving; our ability to effect change in the manner in which health care providers traditionally procure medical equipment; the absence of long-term commitments with customers; our ability to renew contracts with group purchasing organizations and integrated delivery networks; changes in reimbursement rates and policies by third-party payors; the impact of health care reform initiatives; the impact of significant regulation of the health care industry and the need to comply with those regulations; the effect of prolonged negative changes in domestic and global economic conditions; difficulties or delays in our continued expansion into certain of our businesses/geographic markets and developments of new businesses/geographic markets; additional credit risks in increasing business with home care providers and nursing homes, impacts of equipment product recalls or obsolescence; increases in vendor costs that cannot be passed through to our customers; and other risk factors as detailed in our final prospectus filed with the securities and exchange commission (“sec”), on april 26, 2021, and our quarterly reports on form 10-q. three months ended six months ended june 30, june 30, 2021 2020 2021 2020 250,543 185,161 485,788 364,400 151,435 117,691 285,358 239,124 99,108 67,470 200,430 125,276 81,056 52,540 150,279 109,104 18,052 14,930 50,151 16,172 10,116 — 10,116 — 11,713 15,156 29,733 32,974 (3,777 ) (226 ) 10,302 (16,802 ) 1,394 (1,077 ) 5,890 (5,105 ) (5,171 ) 851 4,412 (11,697 ) 27 29 57 103 (5,198 ) 822 4,355 (11,800 ) (0.04 ) 0.01 0.04 (0.12 ) (0.04 ) 0.01 0.04 (0.12 ) 122,908,065 98,983,296 111,071,756 98,969,079 122,908,065 103,694,384 118,760,837 98,969,079 june 30, december 31, 2021 2020 103,670 206,505 164,975 154,625 32,060 27,062 11,378 14,175 312,083 402,367 303,160 285,723 131,562 112,646 (232,776 ) (183,953 ) 201,946 214,416 1,122,530 817,113 55,048 51,214 548,716 402,095 18,371 16,151 2,258,694 1,903,356 15,421 16,044 15,364 14,155 15,613 15,572 49,965 37,215 33,726 38,671 2,970 6,347 6,549 8,800 25,315 22,727 164,923 159,531 1,028,502 1,145,055 57,030 53,794 44,130 40,283 102,110 62,748 13 10 928,623 513,902 (64,137 ) (68,492 ) (2,618 ) (3,619 ) 861,881 441,801 118 144 861,999 441,945 2,258,694 1,903,356 six months ended june 30, 2021 2020 4,412 (11,697 ) 52,884 47,916 40,955 36,025 4,345 — 7,716 — 573 1,179 2,226 382 5,766 4,451 (840 ) (448 ) 4,694 (5,297 ) 6,047 (19,805 ) (1,414 ) (2,748 ) (412 ) 342 5,352 (125 ) (24,796 ) 10,271 107,508 60,446 (16,269 ) (16,557 ) (10,612 ) (8,511 ) 2,013 1,011 (450,198 ) (89,706 ) (475,066 ) (113,763 ) 35,000 189,500 (35,000 ) (173,000 ) 198,052 124,844 (324,805 ) (3,930 ) (4,270 ) (3,813 ) (229 ) (199 ) (748 ) — (83 ) (206 ) 373 — (924 ) (1,132 ) 401,441 — (4,084 ) — (145 ) — (1,771 ) 264,723 130,148 (102,835 ) 76,831 206,505 — 103,670 76,831 31,017 27,884 1,541 415 three months ended six months ended june 30, june 30, 2021 2020 2021 2020 (5,198 ) 822 4,355 (11,800 ) 11,713 15,156 29,733 32,974 1,394 (1,077 ) 5,890 (5,105 ) 48,250 41,894 91,814 82,060 56,159 56,795 131,792 98,129 3,355 2,068 5,766 4,451 7,064 (1,100 ) 7,626 3,010 801 (327 ) 4,252 562 197 — 4,345 — 10,116 — 10,116 — 77,692 57,436 163,897 106,152 (1) management and other expenses represent (a) management fees and buyout termination fee under the advisory services agreement, which was subsequently terminated in connection with the initial public offering and (b) employee related non-recurring expenses. (2) transaction costs represent costs associated with potential mergers and acquisitions and are primarily related to the northfield acquisition for the six months ended june 30, 2021. (3) loss on extinguishment of debt consists of the write-off of the unamortized deferred financing costs and debt discount and an additional 1% redemption price related to the repayment of our second lien term loan and the write-off of the unamortized deferred financing costs related to the amendment of our revolving credit facility. ebitda is defined as earnings attributable to agiliti, inc. before interest expense, income taxes, depreciation and amortization. adjusted ebitda is defined as ebitda excluding non-cash shared-based compensation expense, management fees and other non-recurring gains, expenses or losses, transaction costs, remeasurement of the tax receivable agreement and loss on extinguishment of debt. in addition to using ebitda and adjusted ebitda internally as measures of operational performance, we disclose them externally to assist analysts, investors and lenders in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. we believe the investment community frequently uses ebitda and adjusted ebitda in the evaluation of similarly situated companies. adjusted ebitda is also used by the company as a factor to determine the total amount of incentive compensation to be awarded to executive officers and other employees. ebitda and adjusted ebitda, however, are not measures of financial performance under accounting principles generally accepted in the united states of america (“gaap”) and should not be considered as alternatives to, or more meaningful than, net income as measures of operating performance or to cash flows from operating, investing or financing activities or as measures of liquidity. since ebitda and adjusted ebitda are not measures determined in accordance with gaap and are thus susceptible to varying interpretations and calculations, ebitda and adjusted ebitda, as presented, may not be comparable to other similarly titled measures of other companies. ebitda and adjusted ebitda do not represent amounts of funds that are available for management’s discretionary use. ebitda and adjusted ebitda presented may not be the same as ebitda and adjusted ebitda calculations as defined in the first lien credit facilities. three months ended six months ended june 30, june 30, 2021 2020 2021 2020 $ (5,198 ) $ 822 $ 4,355 $ (11,800 ) 21,582 17,356 38,930 34,144 3,355 2,068 5,766 4,451 7,064 (1,100 ) 7,626 3,010 801 (327 ) 4,252 562 197 - 4,345 - 10,116 - 10,116 - (8,267 ) (4,571 ) (13,728 ) (10,794 ) $ 29,650 $ 14,248 $ 61,662 $ 19,573 130,699 103,694 118,761 103,680 $ 0.23 $ 0.14 $ 0.52 $ 0.19 (1) represents management fees and buyout termination fee under the advisory services agreement, which was subsequently terminated in connection with the initial public offering and employee related non-recurring expenses. (2) represents costs associated with potential mergers and acquisitions and are primarily related to the northfield acquisition for the six months ended june 30, 2021. (3) represents the change in the fair value of the tax receivable agreement. (4) loss on extinguishment of debt consists of the write-off of the unamortized deferred financing costs and debt discount and an additional 1% redemption price related to the repayment of our second lien term loan and the write-off of the unamortized deferred financing costs related to the amendment of our revolving credit facility. (5) represents the tax benefit or provision associated with the reconciling items between net income (loss) and adjusted net income. to determine the aggregate tax effect of the reconciling items, we utilized statutory income tax rates ranging from 0% to 26%, depending upon the applicable jurisdictions of each adjustment. june 30, 2021 $ 1,037.4 24.6 (18.0 ) $ 1,044.0 (103.7 ) $ 940.3 $ 291.9
