Agiliti announces financial results for first quarter 2021 and provides full year 2021 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, 2021, and provided a preliminary outlook for the full year 2021. highlights revenue growth of 31 percent to $235 million net income of $9.6 million, up $22.2 million from q1 2020, and diluted earnings per share of $0.09, up $0.22 per share from the prior year period adjusted ebitda growth of 77 percent to $86 million, and adjusted diluted earnings per share of $0.30, up $0.25 per share from the prior year period leverage ratio reduced to 3.3x following the close of its initial public offering full year 2021 guidance for revenue of $950-$975 million and adjusted ebitda of $275-$285 million “our strong first quarter results reflect the continued execution of our growth strategy and the extraordinary work of our entire team at agiliti,” said tom leonard, chief executive officer. “the challenges of the past year helped raise awareness of the unique and essential nature of what we do, while also demonstrating the stable and predictable nature of our business model. agiliti is a critical part of our national healthcare infrastructure, and as the events of 2020 highlight, the services we provide are always necessary and in high demand. this long term consistency gives us confidence in our 2021 outlook and beyond.” total revenue for the three months ended march 31, 2021, was $235.2 million, representing a 31 percent increase from total revenue of $179.2 million for the same period of 2020. net income for the first quarter was $9.6 million, representing a $22.2 million increase compared to a net loss of $12.6 million for the same period of 2020. adjusted ebitda for the three months ended march 31, 2021, was $86.2 million, a 77 percent increase from adjusted ebitda of $48.7 million for the same period of 2020. balance sheet following the close of its initial public offering (“ipo”) on april 27, 2021, the company used net proceeds from the offering to repay outstanding borrowings and related fees and expenses under the company’s credit facilities. post ipo proceeds and following its acquisition of northfield medical on march 19, 2021, it’s pro-forma leverage ratio approximates 3.3x. financial guidance for the full year 2021, the company expects revenue to be in the range of $950 million to $975 million and adjusted ebitda to be in the range of $275 million to $285 million. additionally, the company expects capital expenditures for 2021 to be in the range of $65 million to $70 million. 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 first quarter results on tuesday, may 18, 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 13719551. the replay will be available until may 25, 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. 2021 2020 235,245 179,240 133,922 121,433 101,323 57,807 69,224 56,566 32,099 1,241 18,021 17,817 14,078 (16,576 ) 4,495 (4,028 ) 9,583 (12,548 ) 30 74 9,553 (12,622 ) 0.10 (0.13 ) 0.09 (0.13 ) 99,103,933 98,954,862 106,090,703 98,954,862 2021 2020 13,328 206,505 168,679 154,625 27,699 27,062 13,129 14,175 222,835 402,367 295,398 285,723 124,054 112,646 (208,484 ) (183,953 ) 210,968 214,416 1,122,530 817,113 53,447 51,214 569,343 402,095 16,713 16,151 2,195,836 1,903,356 19,060 16,044 14,985 14,155 15,650 15,572 47,523 37,215 38,864 38,671 3,533 6,347 11,356 8,800 29,394 22,727 180,365 159,531 1,350,035 1,145,055 56,182 53,794 41,904 40,283 101,297 62,748 10 10 527,626 513,902 (58,939 ) (68,492 ) (2,768 ) (3,619 ) 465,929 441,801 124 144 466,053 441,945 2,195,836 1,903,356 2021 2020 9,583 (12,548 ) 26,217 23,377 18,399 17,756 4,148 — 18 656 1,532 233 2,412 2,383 (647 ) (165 ) 3,932 (4,195 ) 2,898 (10,709 ) 3,641 (1,539 ) 226 565 1,361 4,378 (10,811 ) 7,487 62,909 27,679 (4,415 ) (9,165 ) (3,915 ) (3,003 ) 1,003 524 (450,198 ) (89,495 ) (457,525 ) (101,139 ) 10,000 178,000 — (161,500 ) 198,052 124,844 (2,840 ) (1,650 ) (2,051 ) (1,857 ) — (199 ) (748 ) — (50 ) (124 ) (924 ) (1,115 ) — (145 ) — (1,771 ) 201,439 134,483 (193,177 ) 61,023 206,505 — 13,328 61,023 19,746 16,523 (715 ) 5 2021 2020 9,553 (12,622 ) 18,021 17,817 4,495 (4,028 ) 43,563 40,166 75,632 41,333 2,412 2,383 563 4,111 3,451 889 4,148 — 86,206 48,716 _________________________ (1) management and other expenses represent (a) the advisory services fees, which were 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. ebitda is defined as earnings attributable to agiliti 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 and remeasurement of the tax receivable agreement. 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. 2021 2020 $ 9,553 $ (12,622 ) 17,348 16,788 2,412 2,383 563 4,111 3,451 889 4,148 - (5,463 ) (6,223 ) $ 32,012 $ 5,326 106,091 103,695 $ 0.30 $ 0.05 ____________________________ (1) represents management and advisory fees, which were 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. (3) represents the change in the fair value of the tax receivable agreement. (4) 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.
