Apria, Inc. (the “Company” or “Apria”) (Nasdaq: APR), a leading
provider of integrated home healthcare equipment and related
services in the United States, announced today financial results
for the fourth quarter and full year ended December 31, 2021. As
previously announced, the Company will not be hosting a conference
call to discuss its financial results.
“We reported solid fourth quarter financial results and 2021 was
a good year for Apria. Our team did an excellent job operating and
executing at a high level while navigating the challenges from the
COVID-19 pandemic, as well as a major product recall and supply
chain constraints. Fourth quarter revenue and Adjusted EBITDA were
at the high end of our guidance ranges, while Adjusted EBITDA less
Patient Equipment Capex was in-line with our expectations,” said
Dan Starck, CEO of Apria. “During the fourth quarter, we continued
to be impacted by the Philips recall and the supply chain
disruption which slowed new sleep patient starts and new
ventilation patient starts in the quarter. That said, we continue
to see strong demand for CPAP and ventilation, and we expect demand
will remain strong for the foreseeable future. Overall, 2021
was a banner year for Apria despite the COVID pandemic and supply
chain constraints. I am proud of what we accomplished together in
2021 and we remain steadfast in our mission of Improving the
Quality of Life for our Patients at Home.”
Fourth Quarter 2021 Financial Highlights
Comparisons are to the three months ended December 31, 2020.
- Net revenue of $296.5 million, up
0.9% compared to $293.8 million
- Net Income of $17.0 million, or
$0.44 per diluted share, down 34.5% from $25.9 million
- Adjusted EBITDA of $58.4 million,
down 8.8% compared to $64.1 million
- Adjusted EBITDA less Patient
Equipment Capex of $28.3 million, down 19.1% from $34.9
million
Full Year 2021 Financial Highlights
Comparisons are to the full year ended December 31, 2020.
- Net revenue of $1,145.3 million, up
3.3% compared to $1,108.7 million
- Net Income of $64.9 million, or
$1.66 per diluted share, up 40.6% from $46.1 million
- Adjusted EBITDA of $232.0 million,
up 2.3% compared to $226.9 million
- Adjusted EBITDA less Patient
Equipment Capex of $136.0 million, up 1.3% from $134.2 million
About Apria
Apria is a leading provider of integrated home healthcare
equipment and related services in the United States, providing home
respiratory therapy, obstructive sleep apnea treatment and negative
pressure wound therapy. Its approximately 280 locations throughout
the continental United States and Hawaii serve nearly 2 million
patients each year. All of Apria’s locations are accredited by The
Joint Commission.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements include, but are not limited to,
statements regarding Apria, Inc.’s (“Apria”) expectations regarding
the proposed acquisition of Apria by Owens & Minor Inc. (the
“proposed merger”) and the future performance and financial results
of Apria’s business and other non-historical statements. Some of
these statements can be identified by terms and phrases such as
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “predicts,” “intends,”
“trends,” “plans,” “estimates,” “anticipates” or the negative
version of these words or other comparable words. Apria cautions
readers of this communication that such “forward looking
statements”, wherever they occur in this communication or in other
statements attributable to Apria, are necessarily estimates
reflecting the judgment of Apria’s senior management and involve a
number of risks and uncertainties that could cause actual results
to differ materially from those suggested by the “forward looking
statements.”
Factors that could cause Apria’s actual results to differ
materially from those expressed or implied in such forward-looking
statements include, but are not limited to: the occurrence of any
event, change or other circumstances that could give rise to the
termination of the merger agreement relating to the proposed
merger; the inability to complete the proposed merger due to the
failure to obtain approval of Apria’s stockholders for the proposed
merger or the failure to satisfy other conditions to completion of
the proposed merger, including that a governmental entity may
prohibit, delay or refuse to grant approval for the consummation of
the proposed merger; risks related to disruption of management’s
attention from Apria’s ongoing business operations due to the
proposed merger; the effect of the announcement of the proposed
merger on Apria’s relationships with its customers, suppliers and
other third parties, as well as its operating results and business
generally; the risk that the proposed merger will not be
consummated in a timely manner; exceeding the expected costs of the
merger; risks related to the COVID-19 public health emergency,
product and related recalls; the profitability of Apria’s
capitation arrangements; renegotiation or termination of Apria’s
contracts; reimbursements by payors; our reliance on relatively few
vendors; competition in the home healthcare industry; the inherent
risk of liability in the provision of healthcare services; and
reductions in Medicare and Medicaid and commercial payor
reimbursement rates.
Additional factors that could cause Apria’s actual outcomes or
results to differ materially from those described in the
forward-looking statements can be found in the “Risk Factors”
sections of Apria’s Annual Report on Form 10-K for the period ended
December 31, 2020 and Quarterly Reports on Form 10-Q for the
periods ended June 30, 2021 and September 30, 2021, as such factors
may be further updated from time to time in Apria’s other filings
with the Securities and Exchange Commission (“SEC”) including the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, which is expected to be filed on or about the
date of this press release. These reports are or will be accessible
on the SEC’s website at www.sec.gov. These factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this press release
and in Apria’s filings with the SEC. Apria undertakes no obligation
to publicly update or review any forward-looking statement, whether
as a result of new information, future developments or otherwise,
except as required by law.
Use of
Non-GAAP Financial
Information
This press release contains certain financial measures that are
not recognized under generally accepted accounting principles in
the United States (“GAAP”). The Company uses EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex, which are
financial measures that are not prepared in accordance with GAAP,
to analyze its financial results and believes that they are useful
to investors, as a supplement to GAAP measures.
EBITDA is a non-GAAP measure that represents net income for the
period before the impact of interest income, interest expense,
other income and expense, income taxes, loss from equity method
investment, and depreciation and amortization. EBITDA is widely
used by securities analysts, investors and other interested parties
to evaluate the profitability of companies. EBITDA eliminates
potential differences in performance caused by variations in
capital structures, tax positions, the cost and age of tangible
assets and the extent to which intangible assets are identifiable.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA before
certain items that impact comparison of the performance of our
business either period-over-period or with other businesses. The
Company uses Adjusted EBITDA as a key profitability measure to
assess the performance of our business. We believe that Adjusted
EBITDA should, therefore, be made available to securities analysts,
investors and other interested parties to assist in their
assessment of the performance of our business. Adjusted EBITDA less
Patient Equipment Capex is a non-GAAP measure that represents
Adjusted EBITDA less purchases of patient equipment net of
dispositions (“Patient Equipment Capex”). For purposes of this
metric, Patient Equipment Capex is measured as the value of the
patient equipment received less the net book value of dispositions
of patient equipment during the accounting period. This metric is
useful in evaluating the financial performance of the Company as
the business requires significant capital expenditures to maintain
its patient equipment fleet due to asset replacement and
contractual commitments. The Company believes that Adjusted EBITDA
less Patient Equipment Capex should, therefore, be made available
to securities analysts, investors, and other interested parties to
assist in their assessment of the performance of our business.
Reconciliations of historical EBITDA, Adjusted EBITDA and
Adjusted EBITDA less Patient Equipment Capex to our net income, the
most directly comparable financial measure calculated and presented
in accordance with GAAP, are included in the tables attached to
this press release. EBITDA, Adjusted EBITDA and Adjusted EBITDA
less Patient Equipment Capex should not be considered alternatives
to net income or any other measure of financial performance
calculated and presented in accordance with GAAP. EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex may not be
comparable to similarly titled measures of other organizations
because other organizations may not calculate EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex in the same
manner as the Company calculates these measures.
The Company’s uses of EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex have limitations as analytical
tools, and you should not consider them in isolation or as a
substitute for analysis of our results as reported under GAAP. Some
of these limitations are:
- although depreciation and amortization are noncash charges, the
assets being depreciated and amortized may have to be replaced in
the future. EBITDA and Adjusted EBITDA do not reflect capital
expenditure requirements for such replacements or other contractual
commitments;
- EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex do not reflect changes in, or cash requirements
for, our working capital needs;
- EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex do not reflect the interest expense or the cash
requirements necessary to service interest or principal payments on
our indebtedness; and
- other companies, including companies in our industry, may
calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex measures differently, which reduces their
usefulness as a comparative measure.
EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex exclude items that can have a significant effect on
profit or loss and should, therefore, be used in conjunction with,
not as substitutes for, profit or loss for the period. The Company
compensates for these limitations by separately monitoring net
income for the period.
APRIA, INC. |
CONSOLIDATED BALANCE SHEETS (Unaudited) |
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
219,561 |
|
|
$ |
195,197 |
|
Accounts receivable |
|
|
81,720 |
|
|
|
74,774 |
|
Inventories |
|
|
8,754 |
|
|
|
6,680 |
|
Prepaid expenses and other current assets |
|
|
23,242 |
|
|
|
24,003 |
|
TOTAL CURRENT ASSETS |
|
|
333,277 |
|
|
|
300,654 |
|
NONCURRENT RESTRICTED
CASH |
|
|
515 |
|
|
|
— |
|
PATIENT EQUIPMENT, less
accumulated depreciation of $366,126 and $356,888 as of December
31, 2021 and December 31, 2020, respectively |
|
|
221,534 |
|
|
|
223,972 |
|
PROPERTY, EQUIPMENT AND
IMPROVEMENTS, NET |
|
|
21,281 |
|
|
|
25,419 |
|
INTANGIBLE ASSETS, NET |
|
|
71,651 |
|
|
|
61,497 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
|
71,808 |
|
|
|
57,869 |
|
GOODWILL |
|
|
28,985 |
|
|
|
— |
|
EQUITY METHOD INVESTMENT |
|
|
2,809 |
|
|
|
— |
|
DEFERRED INCOME TAXES,
NET |
|
|
4,338 |
|
|
|
18,258 |
|
NOTE RECEIVABLE, RELATED
PARTY |
|
|
2,071 |
|
|
|
— |
|
OTHER ASSETS |
|
|
17,160 |
|
|
|
17,315 |
|
TOTAL ASSETS |
|
$ |
775,429 |
|
|
$ |
704,984 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
133,485 |
|
|
$ |
116,886 |
|
Accrued payroll and related taxes and benefits |
|
|
52,484 |
|
|
|
55,628 |
|
Other accrued liabilities |
|
|
32,687 |
|
|
|
33,513 |
|
Deferred revenue |
|
|
28,296 |
|
|
|
25,821 |
|
Current portion of operating lease liabilities |
|
|
23,419 |
|
|
|
23,977 |
|
Current portion of long-term debt |
|
|
36,458 |
|
|
|
20,833 |
|
TOTAL CURRENT LIABILITIES |
|
|
306,829 |
|
|
|
276,658 |
|
LONG-TERM DEBT, less current
portion |
|
|
341,001 |
|
|
|
376,389 |
|
OPERATING LEASE LIABILITIES,
less current portion |
|
|
48,304 |
|
|
|
35,358 |
|
DEFERRED INCOME TAXES,
NET |
|
|
7,312 |
|
|
|
— |
|
OTHER NONCURRENT
LIABILITIES |
|
|
32,250 |
|
|
|
42,924 |
|
TOTAL LIABILITIES |
|
|
735,696 |
|
|
|
731,329 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
|
|
|
|
Preferred stock, $0.01 par value: 100,000,000 authorized; no shares
issued as of December 31, 2021 and February 10, 2021 |
|
|
|
|
|
|
Common stock, $0.01 par value: 1,000,000,000 authorized; 35,521,594
and 35,210,915 shares issued and outstanding as of December 31,
2021 and February 10, 2021, respectively |
|
|
355 |
|
|
|
— |
|
Additional paid-in capital |
|
|
954,933 |
|
|
|
954,087 |
|
Accumulated deficit |
|
|
(915,555 |
) |
|
|
(980,432 |
) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
39,733 |
|
|
|
(26,345 |
) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
$ |
775,429 |
|
|
$ |
704,984 |
|
APRIA, INC. |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
(In thousands, except share and per share
data) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Fee-for-service arrangements |
|
$ |
240,838 |
|
|
$ |
237,216 |
|
|
$ |
917,652 |
|
|
$ |
883,846 |
|
Capitation |
|
|
55,687 |
|
|
|
56,573 |
|
|
|
227,623 |
|
|
|
224,871 |
|
TOTAL NET REVENUES |
|
|
296,525 |
|
|
|
293,789 |
|
|
|
1,145,275 |
|
|
|
1,108,717 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Product and supply costs |
|
|
53,444 |
|
|
|
51,104 |
|
|
|
206,167 |
|
|
|
192,667 |
|
Patient equipment depreciation |
|
|
25,409 |
|
|
|
25,479 |
|
|
|
101,040 |
|
|
|
101,319 |
|
Home respiratory therapists costs |
|
|
4,134 |
|
|
|
4,034 |
|
|
|
16,479 |
|
|
|
16,882 |
|
Other |
|
|
4,773 |
|
|
|
3,733 |
|
|
|
17,602 |
|
|
|
17,402 |
|
TOTAL COST OF NET REVENUES |
|
|
87,760 |
|
|
|
84,350 |
|
|
|
341,288 |
|
|
|
328,270 |
|
Selling, distribution and administrative |
|
|
183,698 |
|
|
|
175,189 |
|
|
|
706,633 |
|
|
|
709,299 |
|
TOTAL COSTS AND EXPENSES |
|
|
271,458 |
|
|
|
259,539 |
|
|
|
1,047,921 |
|
|
|
1,037,569 |
|
OPERATING INCOME |
|
|
25,067 |
|
|
|
34,250 |
|
|
|
97,354 |
|
|
|
71,148 |
|
Interest expense and
other |
|
|
2,899 |
|
|
|
2,261 |
|
|
|
11,781 |
|
|
|
6,308 |
|
Interest income and other |
|
|
(112 |
) |
|
|
(46 |
) |
|
|
(254 |
) |
|
|
(498 |
) |
Gain from derecognition of
nonfinancial asset |
|
|
— |
|
|
|
— |
|
|
|
(3,994 |
) |
|
|
— |
|
INCOME BEFORE INCOME TAXES |
|
|
22,280 |
|
|
|
32,035 |
|
|
|
89,821 |
|
|
|
65,338 |
|
Income tax expense |
|
|
4,538 |
|
|
|
6,164 |
|
|
|
24,153 |
|
|
|
19,199 |
|
Loss from equity method
investment |
|
|
791 |
|
|
|
— |
|
|
|
791 |
|
|
|
— |
|
NET INCOME |
|
$ |
16,951 |
|
|
$ |
25,871 |
|
|
$ |
64,877 |
|
|
$ |
46,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three |
|
|
|
|
February 10, 2021 |
|
|
|
|
|
|
Months Ended |
|
|
|
|
through |
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
December 31, 2021 |
|
|
|
Basic and diluted earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ |
16,951 |
|
|
|
|
|
$ |
63,338 |
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
35,485,376 |
|
|
|
|
|
|
35,325,734 |
|
|
|
|
Diluted |
|
|
38,210,148 |
|
|
|
|
|
|
38,113,601 |
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.48 |
|
|
|
|
|
$ |
1.79 |
|
|
|
|
Diluted |
|
$ |
0.44 |
|
|
|
|
|
$ |
1.66 |
|
|
|
|
_______________________(1) Prior to our initial
public offering (“IPO” or “offering”), our business was conducted
through Apria Healthcare Group LLC (formerly known as Apria
Healthcare Group Inc.) which did not have a common capital
structure with Apria, Inc. As such, we computed EPS for the period
the Company’s common stock was outstanding during 2021, referred to
as the Post-IPO period. We have defined the Post-IPO period as
February 10, 2021, the effective date of the pre-IPO
reorganization, through December 31, 2021.
APRIA, INC. |
NET REVENUES FOR EACH CORE SERVICE LINE
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(in
thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home respiratory therapy |
|
$ |
118,283 |
|
$ |
118,549 |
|
$ |
467,422 |
|
$ |
453,826 |
OSA treatment |
|
|
126,328 |
|
|
123,442 |
|
|
480,245 |
|
|
454,407 |
NPWT |
|
|
10,197 |
|
|
12,215 |
|
|
40,455 |
|
|
42,966 |
Other equipment and
services |
|
|
41,717 |
|
|
39,583 |
|
|
157,153 |
|
|
157,518 |
Net revenues |
|
$ |
296,525 |
|
$ |
293,789 |
|
$ |
1,145,275 |
|
$ |
1,108,717 |
APRIA, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) |
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
(in
thousands) |
|
2021 |
|
2020 |
Net cash provided by operating activities |
|
$ |
211,997 |
|
|
$ |
196,713 |
|
Net cash used in investing
activities |
|
|
(144,208 |
) |
|
|
(91,727 |
) |
Net cash (used in) provided by
financing activities |
|
|
(42,910 |
) |
|
|
15,520 |
|
Net increase in cash and cash
equivalents and restricted cash |
|
|
24,879 |
|
|
|
120,506 |
|
Cash and cash equivalents and
restricted cash at beginning of period |
|
|
195,197 |
|
|
|
74,691 |
|
Cash and cash equivalents and
restricted cash at end of period |
|
$ |
220,076 |
|
|
$ |
195,197 |
|
Non-GAAP Financial InformationThis press
release presents Apria’s EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex for the three and twelve months
ended December 31, 2021 and 2020.
EBITDA is a non-GAAP measure that represents net income for the
period before the impact of interest income, interest expense,
other income and expense, income taxes, loss from equity method
investment, and depreciation and amortization.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA
before certain items that impact comparison of the performance of
our business either period-over-period or with other
businesses.
Adjusted EBITDA less Patient Equipment Capex is a non-GAAP
measure that represents Adjusted EBITDA less purchases of patient
equipment net of dispositions (“Patient Equipment Capex”). For
purposes of this metric, Patient Equipment Capex is measured as the
value of the patient equipment received less the net book value of
dispositions of patient equipment during the accounting period.
Below, we have provided a reconciliation of EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex to our net
income, the most directly comparable financial measure calculated
and presented in accordance with GAAP. EBITDA, Adjusted EBITDA and
Adjusted EBITDA less Patient Equipment Capex should not be
considered alternatives to net income or any other measure of
financial performance calculated and presented in accordance with
GAAP. Our EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex may not be comparable to similarly titled measures
of other organizations because other organizations may not
calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex in the same manner as we calculate these
measures.
The following table reconciles net income, the most directly
comparable GAAP measure, to EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
(in
thousands) |
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
Net income |
|
$ |
16,951 |
|
|
$ |
25,871 |
|
|
|
$ |
64,877 |
|
|
$ |
46,139 |
|
Interest (income) expense and
other, net |
|
|
2,787 |
|
|
|
2,215 |
|
|
|
|
7,533 |
|
|
|
5,810 |
|
Income tax expense |
|
|
4,538 |
|
|
|
6,164 |
|
|
|
|
24,153 |
|
|
|
19,199 |
|
Loss from equity method
investment |
|
|
791 |
|
|
|
— |
|
|
|
|
791 |
|
|
|
— |
|
Depreciation and
amortization |
|
|
28,567 |
|
|
|
28,315 |
|
|
|
|
115,048 |
|
|
|
115,230 |
|
EBITDA |
|
$ |
53,634 |
|
|
$ |
62,565 |
|
|
|
$ |
212,402 |
|
|
$ |
186,378 |
|
Strategic transformation
initiatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Simplify(a) |
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
$ |
1,159 |
|
Financial system(b) |
|
|
385 |
|
|
|
432 |
|
|
|
|
1,466 |
|
|
|
1,846 |
|
Other initiatives(c) |
|
|
23 |
|
|
|
366 |
|
|
|
|
137 |
|
|
|
465 |
|
Stock-based compensation
one-time award at IPO(d) |
|
|
606 |
|
|
|
— |
|
|
|
|
4,103 |
|
|
|
— |
|
Stock-based
compensation(e) |
|
|
2,221 |
|
|
|
2,910 |
|
|
|
|
6,046 |
|
|
|
4,839 |
|
Legal settlements(f) |
|
|
— |
|
|
|
(3,634 |
) |
|
|
|
1,750 |
|
|
|
28,891 |
|
Merger and acquisition
costs(g) |
|
|
1,295 |
|
|
|
— |
|
|
|
|
1,697 |
|
|
|
— |
|
Offering costs(h) |
|
|
283 |
|
|
|
1,454 |
|
|
|
|
4,434 |
|
|
|
3,280 |
|
Adjusted
EBITDA |
|
$ |
58,447 |
|
|
$ |
64,093 |
|
|
|
$ |
232,035 |
|
|
$ |
226,858 |
|
Patient Equipment Capex |
|
|
(30,186 |
) |
|
|
(29,153 |
) |
|
|
|
(96,008 |
) |
|
|
(92,635 |
) |
Adjusted EBITDA less
Patient Equipment Capex |
|
$ |
28,261 |
|
|
$ |
34,940 |
|
|
|
$ |
136,027 |
|
|
$ |
134,223 |
|
_______________________
(a) Simplify represents one-time advisory fees
and implementation costs associated with a key 2019 business
transformation initiative focused on shifting to a patient-centric
platform and optimizing end-to-end customer
service.(b) Costs associated with the
implementation of a new financial system.(c) Other
initiatives include one-time costs associated with customer service
initiatives, one-time costs associated with implementation of an
electronic sales, service and rental agreement, and one-time costs
associated with moving the corporate headquarters in
2021.(d) The offering resulted in a one-time
restricted stock unit (“RSUs”) grant to the Company’s Chief
Financial Officer (“CFO”). The RSUs vest in tranches and are
classified as liability awards since each tranche of RSUs can be
settled in either cash or shares of our common stock at the CFO’s
election. The first tranche of RSUs vested upon completion of the
IPO and was settled in cash. The second tranche was settled in cash
during the three months ended September 30, 2021. Compensation
expense is recognized over the requisite service period subject to
continued employment and adjusted each reporting period for changes
in the fair value pro-rated for the portion of the requisite
service period rendered until
settlement.(e) Stock-based compensation has
historically been granted to certain of our employees and
non-employee directors in the form of profit interest units of
Apria Holdings LLC, RSUs, performance-based RSUs, and stock
appreciation rights (“SARs”). For time-based only RSUs and SARs,
compensation expense for each separately vesting portion of the
award is recognized on a straight-line basis over the vesting
period for that portion of the award subject to continued service.
For RSUs with performance conditions, compensation expense is
recognized over the requisite service period subject to
management’s estimation of the probability of vesting of such
awards. Stock compensation also includes expense related to the
Company’s long-term incentive plan awards which will be settled in
stock.(f) In 2021, the amount represents the final
settlement amount of a claim brought under the Private Attorneys
General Act of California. In 2020, the amount represents the
increase in the settlement amount in relation to a series of civil
investigative demands from the United States Attorney’s Office for
the Southern District of New York. (g) Acquisition
costs include one-time costs associated with the acquisition of
certain companies in 2021 and the pending merger agreement with
Owens & Minor Inc. entered on January 7, 2022.
(h) Offering costs represent one-time costs
relating to public offerings. As the Company did not receive any
proceeds from the offerings, these costs were expensed as incurred
in selling, distribution and administrative expenses in the
condensed consolidated statements of income.
Investor Contacts
Kevin EllichICR Westwicke
ApriaIR@westwicke.com
Media Contacts
ApriaPR@westwicke.com
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