MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a
technology-enabled pharmacy company, today reported financial
results for the three months ended September 30, 2021.
“We are encouraged by our third quarter results, highlighted by
our recent partnerships to broaden our footprint in Florida. Our
expansion opportunities demonstrate the value proposition of our
SpotRx embedded pharmacy model. With each new SpotRx deployment and
partnership in our targeted states, we are building a foundation to
deliver sustainable and scalable growth,” said Ed Kilroy, Chief
Executive Officer of MedAvail. “As we look to the remainder of
2021, we remain focused on continued execution across our
initiatives and are confident that we are well positioned with our
pipeline opportunities in key markets.”
Third Quarter 2021 Financial and Operational
Highlights
All comparisons, unless otherwise noted, are to the three months
ended September 30, 2020.
- Total net sales were $5.8 million
- Total net sales by segment
- Retail Pharmacy Services sales increased 149% to $5.4
million
- Pharmacy Technology sales decreased 93% to $0.3 million. Net
sales for the third quarter of 2020 included a non-recurring
benefit of $4.7 million recognized in conjunction with a commercial
agreement from 2018; excluding this benefit, Pharmacy Technology
sales increased 51%
- 14 MedCenter deployments compared to 11 total MedCenter
deployments
- Net Loss was $11.3 million compared to a net loss of $2.5
million
- Net loss of $2.5 million in the third quarter of 2020 included
the non-recurring benefit of $4.7 million noted above
- Adjusted EBITDA losses of $10.1 million compared to $5.1
million
- Cash, cash equivalents, and restricted cash totaled $36.3
million as of quarter-end
Full Year 2021 Financial Outlook
MedAvail is reaffirming its revenue guidance of at least $21
million for the full year ending December 31, 2021. The minimum
number of new clinics the company expects to deploy in 2021 remains
unchanged at 45.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m.
ET on Monday, November 8, 2021, to discuss its third quarter 2021
financial results. A webcast of the conference call can be accessed
at https://investors.medavail.com/. The webcast will be archived
and available for replay for at least 90 days after the event.
About MedAvail
MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled
pharmacy organization, providing turnkey in-clinic pharmacy
services through its proprietary robotic dispensing platform, the
MedAvail MedCenter, and home delivery operations, to Medicare
clinics. MedAvail helps patients to optimize drug adherence,
resulting in better health outcomes. Learn more at
www.medavail.com.
Forward-Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as "believe," "may," "will," "estimate,"
"continue," "anticipate," "intend," "expect," "should," "would,"
"plan," "predict," "potential," "seem," "seek," "future,"
"outlook," "project," and similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but
are not limited to, statements regarding MedAvail's business
strategy and market opportunity; potential future revenue
projections and expectations for growth; expansion plans; and
customer partnerships. These statements are based on various
assumptions, whether or not identified in this press release, and
on the current expectations of MedAvail's management and are not
predictions of actual performance. Forward-looking statements are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements, including but not limited to risks discussed under the
heading "Risk Factors" in both our Annual Report on Form 10-K,
filed with the Securities and Exchange Commission (“SEC”) on March
31, 2021, and our Quarterly Report on Form 10-Q, filed with the SEC
on August 12, 2021, and other filings MedAvail makes with the SEC
in the future. If any of these risks materialize or our assumptions
prove incorrect, actual results could differ materially from the
results implied by these forward-looking statements. These
forward-looking statements speak only as of the date hereof and
MedAvail specifically disclaims any obligation to update these
forward-looking statements.
SOURCE MedAvail Holdings, Inc.
MEDAVAIL HOLDINGS,
INC.
Consolidated Condensed
Statements of Operations
(US Dollars in thousands, except
share and per share data)
(Unaudited)
Three Months Ended September
30,
2021
2020
Sales:
Pharmacy and hardware sales
$
5,659
$
3,926
Service sales
133
3,219
Total sales
5,792
7,145
Cost of sales:
Pharmacy and hardware cost of sales
5,539
2,132
Service cost of sales
67
30
Total cost of sales
5,606
2,162
Gross profit
186
4,983
Pharmacy operations
2,395
1,450
General and administrative
6,805
3,464
Selling and marketing
1,779
624
Research and development
232
154
Merger expenses
—
1,324
Operating loss
(11,025
)
(2,033
)
Other gain (loss), net
7
—
Interest income
7
—
Interest expense
(260
)
(455
)
Loss before income taxes
(11,271
)
(2,488
)
Income tax
(2
)
—
Net loss
$
(11,273
)
$
(2,488
)
Net loss per share - basic and diluted
$
(0.34
)
$
(1.22
)
Weighted average shares outstanding -
basic and diluted
32,750,831
2,045,686
MEDAVAIL HOLDINGS,
INC.
Consolidated Condensed Balance
Sheets
(US Dollars in thousands, except
share amounts)
September 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
35,875
$
57,936
Restricted cash
400
60
Accounts receivable (net of allowance for
doubtful accounts of $27 thousand for September 30, 2021, $40
thousand for December 31, 2020)
1,075
1,520
Inventories
4,253
2,817
Prepaid expenses and other current
assets
762
1,534
Total current assets
42,365
63,867
Property, plant and equipment, net
4,632
3,795
Right-of-use assets
2,902
1,239
Other assets
248
203
Intangible assets
1,950
227
Total assets
$
52,097
$
69,331
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
7,075
$
4,512
Short-term debt
1,000
2,161
Contract liability
317
275
Current portion of lease obligations
742
665
Total current liabilities
9,134
7,613
Long-term debt, net
9,466
—
Long-term portion of lease obligations
2,279
651
Total liabilities
20,879
8,264
Commitments and contingencies
Stockholders' deficit:
Common shares ($0.001 par value,
100,000,000 shares authorized, 32,754,925 and 31,816,020 shares
issued and outstanding at September 30, 2021 and December 31, 2020,
respectively)
33
32
Warrants
1,373
2,614
Additional paid-in-capital
216,204
213,624
Accumulated other comprehensive loss
(6,928
)
(6,928
)
Accumulated deficit
(179,464
)
(148,275
)
Total stockholders' equity
31,218
61,067
Total liabilities and stockholders'
equity
$
52,097
$
69,331
MEDAVAIL HOLDINGS,
INC.
Supplemental Financial
Information - Segments
(US Dollars in thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy Technology
Total
Three Months Ended September 30,
2021
Sales:
Pharmacy and hardware sales:
Retail pharmacy sales
$
5,445
$
—
$
5,445
Hardware
—
106
106
Subscription sales
—
108
108
Total pharmacy and hardware sales
5,445
214
5,659
Service sales:
Software integration
—
—
—
Software
—
51
51
Maintenance and support
—
44
44
Installation
—
11
11
Professional services and other
—
27
27
Total service sales
—
133
133
Total sales
5,445
347
5,792
Cost of sales
5,366
240
5,606
Gross profit
$
79
$
107
$
186
Retail Pharmacy
Services
Pharmacy Technology
(1)
Total
Three Months Ended September 30,
2020
Sales:
Pharmacy and hardware sales:
Retail pharmacy sales
$
2,186
$
—
$
2,186
Hardware
—
1,625
1,625
Subscription sales
—
115
115
Total pharmacy and hardware sales
2,186
1,740
3,926
Service sales:
Software integration
—
3,168
3,168
Software
—
15
15
Maintenance and support
—
17
17
Installation
—
—
—
Professional services and other
—
19
19
Total service sales
—
3,219
3,219
Total sales
2,186
4,959
7,145
Cost of sales
2,042
120
2,162
Gross profit
$
144
$
4,839
$
4,983
(1) Includes $1.5 million of hardware sales and $3.2 million of
software integration sales associated with a non-recurring
commercial agreement.
Non-GAAP Financial Measures
To supplement our consolidated condensed financial statements,
which are prepared and presented in accordance with GAAP, we use
the following non-GAAP financial measures: EBITDA, and adjusted
EBITDA. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP.
We define Adjusted EBITDA for a particular period as net (loss)
income before interest, taxes, depreciation and amortization, and
as further adjusted for non-recurring revenue from a commercial
agreement, merger-related expenses, and stock-based compensation
expense.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. We believe that these non-GAAP
financial measures provide meaningful supplemental information
regarding our performance by excluding certain items that may not
be indicative of our recurring core business operating results,
like one-time transaction costs related to the reverse merger. We
believe that both management and investors benefit from referring
to these non-GAAP financial measures in assessing our performance
and when planning, forecasting, and analyzing future periods. These
non-GAAP financial measures also facilitate management's internal
comparisons to our historical performance and liquidity as well as
comparisons to our competitors' operating results. We believe these
non-GAAP financial measures are useful to investors both because
(1) they allow for greater transparency with respect to key metrics
used by management in its financial and operational decision-making
and (2) they are used by our institutional investors and the
analyst community to help them analyze the health of our
business.
There are a number of limitations related to the use of non-GAAP
financial measures. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures and evaluating these
non-GAAP financial measures together with their relevant financial
measures in accordance with GAAP.
MEDAVAIL HOLDINGS,
INC.
Unaudited Reconciliation of
GAAP to Non-GAAP Measures
(US Dollars in
thousands)
Three Months Ended September
30,
2021
2020
Net loss
$
(11,273
)
$
(2,488
)
Adjustments to calculate EBITDA:
Interest income
(7
)
—
Interest expense
260
455
Income tax expense
2
—
Depreciation and amortization (1)
526
283
EBITDA
$
(10,492
)
$
(1,750
)
Adjustments as follows:
Non-recurring commercial agreement (2)
—
(4,729
)
Merger expenses
—
1,324
Share-based compensation expense
365
65
Adjusted EBITDA
$
(10,127
)
$
(5,090
)
(1) Excludes $213 thousand and $150 thousand in operating lease
amortization for the three month periods ended September 30, 2021,
and 2020, respectively. (2) Includes $1.5 million of hardware sales
and $3.2 million of software integration sales associated with a
non-recurring commercial agreement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211108005874/en/
Investor Relations Caroline Paul Gilmartin Group
ir@medavail.com
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