Agiliti announces financial results for fourth quarter and full-year 2021 and provides 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 fourth quarter and year ended december 31, 2021, and provides its financial outlook for 2022. fourth quarter 2021 highlights revenue growth of 36 percent to $290 million net income of $10.0 million, up $10.5 million from the prior year period, and diluted income per share of $0.07, up $0.07 per share from the prior year period adjusted ebitda1 growth of 18 percent to $85 million, and adjusted earnings per share1 of $0.25, a 25 percent increase over the prior year period entered into a new one-year agreement with the u.s. department of health and human services’ assistant secretary for preparedness and response for the comprehensive maintenance and management services of medical ventilator equipment closed acquisition of sizewise on october 1 and realized $10 million of adjusted ebitda1 contribution in the quarter full-year 2021 highlights revenue growth of 34 percent year-over-year to $1,039 million net income of $24.0 million, up $46.5 million from the prior year, and diluted income per share of $0.19, up $0.42 per share from the prior year adjusted ebitda1 growth of 41 percent year-over-year to $331 million, and adjusted diluted earnings per share1 of $0.99, up $0.48 per share from the prior year total debt of $1,193 million; net debt1 of $1,118 million; net leverage ratio1 at 3.4x successfully completed ipo in april 2021 to raise proceeds of approximately $390 million completed acquisitions of northfield medical and sizewise “our results in 2021 reflect the extraordinary efforts of our teams to meet the needs of health systems across the country as we helped ensure the readiness and availability of critical medical devices, including supporting frontline response to the covid-19 pandemic,” said tom leonard, chief executive officer. “as we turn the corner to 2022, we are even more excited about the momentum in our business and the opportunity ahead of us.” fourth quarter and year-to-date 2021 financial results total revenue for the three months ended december 31, 2021, was $290.5 million, representing a 35.6 percent increase from total revenue of $214.2 million for the same period of 2020. total revenue for the year ended december 31, 2021, was $1,038.7 million, representing a 34.3 percent increase from total revenue of $773.3 million for the same period of 2020. net income for the three months ended december 31, 2021, was $10.0 million compared to a net loss of $0.5 million for the same period of 2020. net income for the year ended december 31, 2021, was $24.0 million, representing a $46.5 million increase compared to a net loss of $22.5 million for the same period of 2020. adjusted ebitda1 for the three months ended december 31, 2021, was $84.9 million, a 17.9 percent increase from adjusted ebitda1 of $72.0 million for the same period of 2020. adjusted ebitda1 for the year ended december 31, 2021, was $330.7 million, a 41.2 percent increase from adjusted ebitda1 of $234.2 million for same period of 2020. 2022 financial outlook revenue of $1,160 - $1,190 million adjusted ebitda2 of $305-315 million adjusted earnings per share2 of $0.89 – 0.94 per share 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. subsequent event on february 28, 2022, agiliti entered into a new one-year agreement with the u.s. department of health and human services’ (“hhs”) assistant secretary for preparedness and response (“aspr”) for the comprehensive maintenance and management services of medical ventilator equipment. this agreement consolidates several prior agreements, and it is comprised of an initial 6-month base term, and a 6-month option term. on march 1, 2022, agiliti publicly released the details of this award. in summary, the term of this new agreement, for up to 12 months, is intended to provide sufficient time for hhs/aspr to run a competitive, multi-year contract award process while minimizing the risk of interruption to the critical services that agiliti currently provides under the agreement in support of our nation’s ongoing covid-19 response. agiliti fully intends to compete for any future contract award. conference call information agiliti will hold a conference call to discuss its fourth quarter and full year 2021 results on tuesday, march 8, 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 13726349. the replay will be available until march 15, 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. three months ended year ended december 31, december 31, 2021 2020 2021 2020 290,478 214,190 1,038,690 773,312 169,727 127,726 614,073 486,965 120,751 86,464 424,617 286,347 95,053 69,450 320,387 250,289 25,698 17,014 104,230 36,058 — — 10,116 — 13,070 14,998 53,514 61,530 12,628 2,016 40,600 (25,472 ) 2,601 2,444 16,433 (3,234 ) 10,027 (428 ) 24,167 (22,238 ) 44 42 161 240 9,983 (470 ) 24,006 (22,478 ) 0.08 (0.00 ) 0.20 (0.23 ) 0.07 (0.00 ) 0.19 (0.23 ) 130,666,105 98,983,296 120,877,480 98,976,226 138,525,173 98,983,296 128,497,220 98,976,226 december 31, december 31, 2021 2020 74,325 206,505 209,308 154,625 55,307 27,062 18,549 13,549 395 626 357,884 402,367 359,284 285,723 174,669 112,646 (275,583 ) (183,953 ) 258,370 214,416 1,213,121 817,113 80,676 51,214 573,159 402,095 32,537 16,151 2,515,747 1,903,356 17,534 16,044 22,826 14,155 29,187 15,572 53,851 37,215 47,951 38,671 3,473 6,347 5,808 8,800 27,900 22,727 208,530 159,531 1,174,968 1,145,055 29,629 53,794 63,241 40,283 143,307 62,748 13 10 938,888 513,902 (44,486 ) (68,492 ) 1,537 (3,619 ) 895,952 441,801 120 144 896,072 441,945 2,515,747 1,903,356 year ended december 31, 2021 2020 24,167 (22,238 ) 103,805 99,638 88,240 73,456 4,542 12,931 7,716 — 2,023 1,959 2,424 722 13,960 10,334 (3,735 ) (1,191 ) 12,004 (4,944 ) (8,915 ) (39,763 ) 3,052 (9,712 ) (9,044 ) (13,597 ) 718 552 (30,640 ) 29,780 210,317 137,927 (37,377 ) (31,668 ) (29,121 ) (27,597 ) 9,242 3,486 (676,878 ) (95,953 ) (734,134 ) (151,732 ) 35,000 199,500 (35,000 ) (233,000 ) 346,927 273,344 (329,119 ) (7,860 ) (9,097 ) (8,024 ) (229 ) (199 ) (15,577 ) — (185 ) (397 ) 1,409 — (928 ) (1,138 ) 402,815 — (4,379 ) — — (145 ) — (1,771 ) 391,637 220,310 (132,180 ) 206,505 206,505 — 74,325 206,505 52,341 55,161 3,214 1,260 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. three months ended year ended 2021 2020 2021 2020 9,983 (470) 24,006 (22,478) 13,070 14,998 53,514 61,530 2,601 2,444 16,433 (3,234) 49,287 44,582 187,963 169,241 74,941 61,554 281,916 205,059 3,833 2,677 13,960 10,334 286 927 7,926 671 5,797 2,138 12,222 3,837 — 4,700 4,542 14,300 — — 10,116 — 84,857 71,996 330,682 234,201 (1) management and other expenses represent (a) management fees and buyout termination fee under the advisory services agreement, which was terminated in connection with the initial public offering and (b) employee related non-recurring expenses. (2) transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the northfield and sizewise acquisitions for the year ended december 31, 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. three months ended year ended december 31, december 31, 2021 2020 2021 2020 $ 9,983 $ (470 ) $ 24,006 $ (22,478 ) 23,731 17,900 84,158 69,602 3,833 2,677 13,960 10,334 286 960 7,926 671 5,797 2,103 12,222 3,837 - 4,700 4,542 14,300 - - 10,116 - (9,462 ) (6,258 ) (29,920 ) (21,785 ) $ 34,168 $ 21,612 $ 127,010 $ 54,481 138,525 106,091 128,497 106,084 $ 0.25 $ 0.20 $ 0.99 $ 0.51 (1) management and other expenses represent (a) management fees and buyout termination fee under the advisory services agreement, which was terminated in connection with the initial public offering and (b) employee related non-recurring expenses. (2) transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the northfield and sizewise acquisitions for the year ended december 31, 2021. (3) tax receivable agreement remeasurement 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) 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. 2021 $ 1,183.1 26.6 (17.2 ) $ 1,192.5 (74.3 ) $ 1,118.2 $ 330.7
