Agiliti announces financial results for first quarter 2022 and reaffirms 2022 outlook
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 march 31, 2022, and reaffirmed its financial outlook for 2022. first quarter 2022 highlights revenue growth of 25 percent to $294 million net income of $19.9 million, up $10.3 million from the prior year period; diluted income per share of $0.14, up $0.05 per share from the prior year period adjusted ebitda1 growth of 3 percent to $89 million, and adjusted earnings per share1 of $0.29, a three percent decrease over the prior year period total debt of $1,121 million; net debt1 of $1,069 million; and, net leverage ratio1 of 3.2x “we are pleased with our q1 performance, with results that reflect the importance of our value proposition and the durability of our business model,” said tom leonard, chief executive officer. “our customers are emerging from the pandemic with a new set of economic challenges, and we are proud to bring solutions that address many of the financial, clinical and operational constraints facing our healthcare system today. that critical work continues to drive the momentum in our business and gives us confidence in our outlook for the year.” first quarter 2022 financial results total revenue for the three months ended march 31, 2022, was $294.4 million, representing a 25.2 percent increase from total revenue of $235.2 million for the same period of 2021. net income for the three months ended march 31, 2022, was $19.9 million, a 108.2 percent increase from net income of $9.6 million for the same period of 2021. adjusted ebitda1 for the three months ended march 31, 2022, was $89.2 million, a 3.4 percent increase from adjusted ebitda1 of $86.2 million for the same period of 2021. 2022 financial outlook the company reaffirmed its guidance for 2022 as follows: revenue of $1,160 - $1,190 million adjusted ebitda of $305-315 million2 adjusted earnings per share of $0.89 – 0.94 per share2 capex investment expected in the range of $80 to $90 million __________________________ 1 non-gaap measures. see further discussion below. 2 with regard to the non-gaap adjusted ebitda guidance and adjusted earnings per share 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. see further discussion below regarding historical adjusted ebitda and historical adjusted earnings per share. conference call information agiliti will hold a conference call to discuss its first quarter 2022 results on tuesday, may 10, 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 13728694. the replay will be available until may 17, 2022. interested investors and other parties may also listen to a simultaneous webcast of the conference call by visiting the agiliti investor relations site at https://investors.agilitihealth.com. the online 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 9,000 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: certain statements in this press release are forward-looking in time, including financial outlook and other preliminary results, and 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 including our agreement with hhs/aspr; 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 annual report on form 10-k. 2022 2021 294,444 235,245 170,817 133,922 123,627 101,323 86,138 69,224 37,489 32,099 10,664 18,021 26,825 14,078 6,905 4,495 19,920 9,583 28 30 19,892 9,553 0.15 0.10 0.14 0.09 131,148,108 99,103,933 139,426,334 106,090,703 march 31, december 31, 2022 2021 52,103 74,325 213,547 209,308 55,954 55,307 14,614 18,549 6,453 395 342,671 357,884 256,667 258,370 1,213,121 1,213,121 85,960 80,676 551,996 573,159 36,846 32,537 2,487,261 2,515,747 17,693 17,534 22,883 22,826 29,397 29,187 57,454 53,851 36,396 47,951 3,269 3,473 6,918 5,808 29,539 27,900 203,549 208,530 1,103,785 1,174,968 31,196 29,629 73,142 63,241 149,571 143,307 13 13 943,517 938,888 (24,594 (44,486 ) 6,966 1,537 925,902 895,952 116 120 926,018 896,072 2,487,261 2,515,747 2022 2021 19,920 9,583 22,498 26,217 23,358 18,399 — 4,148 (27 18 325 1,532 4,637 2,412 (593 (647 4,398 3,932 (6,212 2,898 (972 3,641 1,132 226 5,351 1,361 (6,691 (10,811 67,124 62,909 (10,005 (4,415 (5,215 (3,915 644 1,003 — (450,198 (14,576 (457,525 — 10,000 — 198,052 (71,474 (2,840 (2,223 (2,051 — (748 (32 (50 978 — (906 (924 (792 — (321 (74,770 201,439 (22,222 (193,177 74,325 206,505 52,103 13,328 use of non-gaap information this press release contains non-gaap measures, including ebitda, adjusted ebitda, adjusted net income, adjusted eps, net debt and net leverage ratio. we use these internally as measures of operational performance, or liquidity, as applicable, and 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 these measures 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, adjusted ebitda, adjusted net income, adjusted eps, net debt and net leverage ratio, 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 to total debt as measures of liquidity or debt capacity. since ebitda, adjusted ebitda, adjusted net income, adjusted eps, net debt and net leverage ratio are not measures determined in accordance with gaap and are thus susceptible to varying interpretations and calculations, these measures, as presented, may not be comparable to other similarly titled measures of other companies. ebitda, adjusted ebitda, and adjusted net income 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. 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 share-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. ltm adjusted ebitda represents the last twelve months (“ltm”) of adjusted ebitda. 2022 2021 19,892 9,553 10,664 18,021 6,905 4,495 44,831 43,563 82,292 75,632 4,637 2,412 — 563 2,226 3,451 — 4,148 89,155 86,206 __________________________ (1) transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the northfield and sizewise acquisitions. 2022 2021 $ 19,892 $ 9,553 22,333 17,348 4,637 2,412 - 563 2,226 3,451 - 4,148 (7,969 ) (5,463 ) $ 41,119 $ 32,012 139,426 106,091 $ 0.29 $ 0.30 (1) transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the northfield and sizewise acquisitions. (2) tax receivable agreement remeasurement represents the change in the fair value of the tax receivable agreement. (3) income tax benefit associated with pre-tax adjustments represents the tax benefit or provision associated with the reconciling items between net income (loss) and adjusted net income and includes both the current and deferred income tax impact of the adjustments. 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. 2022 $ 1,111.6 26.0 (16.2 ) $ 1,121.5 (52.1 ) $ 1,069.4 $ 333.6
