Convey Well being Options Broadcasts Fourth Quarter and Report Full Yr 2021 Monetary Outcomes

Offers 2022 Steerage

Fourth Quarter 2021 Highlights

• Internet revenues of $97.3 million, up 12% in comparison with This autumn 2020
• Internet earnings of $0.4 million, in comparison with internet earnings of $8.1 million in This autumn 2020 which included a one-time advantage of $10.8 million because of the valuation of sure earn-out funds
• Adjusted EBITDA or AEBITDA of $19.9 million, up 3% in comparison with This autumn 2020.  This autumn 2021 included beforehand introduced one-time implementation prices associated to a brand new consumer win

Full Yr 2021 Highlights

• Internet revenues of $337.6 million, up 19% in comparison with prior 12 months
• Internet lack of $10.0 million which included $18.0 million of one-time prices associated to the IPO, in comparison with internet lack of $6.5 million in prior 12 months which included a one-time advantage of $10.8 million because of the valuation of sure earn-out funds
• Adjusted EBITDA of $69.2 million, up 34% in comparison with prior 12 months

Full Yr 2022 Steerage

• Internet revenues of $390 million to $410 million, the midpoint of which represents 18% development over prior 12 months
• Adjusted EBITDA of $80 million to $84 million, the midpoint of which represents 18% development over prior 12 months¹

FORT LAUDERDALE, Fla., March 23, 2022 /PRNewswire/ –Convey Well being Options Holdings, Inc. (NYSE: CNVY) (the “Firm” or “Convey”), a number one healthcare expertise and providers firm within the U.S., introduced immediately monetary outcomes for the fourth quarter and 12 months ended December 31, 2021.

“We achieved new information when it comes to internet revenues and AEBITDA for the 12 months, which we imagine show the power of our buyer relationships, the recurring nature of our enterprise, the worth of our expertise, and the dedication of our crew,” mentioned Stephen Farrell, CEO of Convey. “We noticed strong ends in every of our three core choices in our Know-how Section in addition to our Advisory Section. Moreover, we’re happy to announce full 12 months 2022 steering, which represents 18% development in each internet revenues and AEBITDA.”

Mr. Farrell continued, “In 2021, we helped our well being plan shoppers drive membership development, enhance member engagement, and scale back payor prices by leveraging Convey’s proprietary expertise and tech-enabled providers.  Particularly, analyzing over 250,000 over-the-counter (“OTC”) beneficiaries throughout a three-year interval, we discovered that customers of Convey’s OTC program who had diabetes, heart problems, or a historical past of slip and fall accidents had between 6% and eight% decrease medical prices than members with related situations who didn’t use our OTC providing.  Moreover, this previous 12 months, Medicare Benefit (“MA”) plans providing OTC profit packages noticed common membership development of 11% vs. a 6% common membership decline for MA plans excluding such a profit. Leveraging the three.1 billion automated transactions and 29 million member touchpoints that Convey facilitated in 2021, our OTC program helps well being plans include member prices by addressing key social determinants of well being.”

Mr. Farrell concluded, “Along with sturdy execution throughout our present enterprise strains, we imagine our acquisition of HealthSmart, accomplished earlier this 12 months, strengthens Convey’s worth proposition for our well being plan shoppers. The acquisition helps be sure that well being plan members have entry to prime quality client healthcare merchandise, which have been proven to enhance their well being outcomes. Additionally, we additional strengthened our supplemental advantages providing by partnering with InComm Funds. This partnership will enable well being plan members to make use of their OTC profit throughout InComm’s community of 65,000 retail areas, in addition to by our present house supply channel. We are able to now present what we imagine is the best-in-class supplemental advantages resolution as we’re in a position to provide a well being plan the choice of permitting its members to entry their supplemental advantages by the retail setting utilizing a single money card or by the house supply channel, or a mixture of the 2. Because of this, we imagine Convey is now even higher positioned for go-forward development.”

Tim Fairbanks, CFO of Convey, mentioned, “Convey continued its development trajectory in 2021, pushed by sturdy execution and one of many strongest secular developments in U.S. healthcare – the expansion of the MA inhabitants. We imagine our proprietary expertise and tech-enabled providers proceed to ship a robust worth proposition for our well being plan clients, and by doing so, present enticing income development alternatives for Convey. Additional, Convey ended 2021 with a strong stability sheet, which allowed us to finish our first tuck-in acquisition as a public firm with out shareholder dilution. We’re excited to proceed this momentum in 2022 and stay up for one other sturdy 12 months.”

Fourth Quarter 2021 Monetary Outcomes

• Internet revenues of $97.3 million, up 12% in comparison with $87.1 million within the fourth quarter of 2020. Fourth quarter income development was pushed by Know-how Enabled Options (TES) phase income of $84.4 million, up 13% 12 months over 12 months from $74.5 million in fourth quarter 2020, and $12.9 million of income in our Advisory Providers phase, which was up 2% 12 months over 12 months from $12.6 million in fourth quarter 2020.
• Internet earnings was $0.4 million in comparison with internet earnings of $8.1 million for the fourth quarter of 2020.
• Adjusted EBITDA of $19.9 million elevated 3% 12 months over 12 months from $19.3 million within the fourth quarter of 2020. This autumn 2021 included beforehand introduced one time implementation prices associated to a brand new consumer win
• As of December 31, 2021, Convey had money and money equivalents of $38.8 million and $39.4 million accessible on the Firm’s revolver. Complete debt, excluding unamortized value of $3.0 million, was $192.6 million.

Yr Ended December 31, 2021 Monetary Outcomes

• For the 12 months ended December 31, 2021, internet revenues of $337.6 million have been up 19% in comparison with $282.9 million for the 12 months ended December 31, 2020.
• Internet loss in 2021 was $10.0 million in comparison with internet lack of $6.5 million for the 12 months ended December 31, 2020. Internet loss for 2021 included $18.0 million of one-time prices attributed to our IPO consisting of $7.9 million for prior acts D&O insurance coverage premium, $5.0 million expense associated to the June 2021 extinguishment of debt, $2.8 million of public firm readiness prices, and $2.3 million associated to the one-time termination of the administration service settlement with TPG.
• Adjusted EBITDA for the 12 months ended December 31, 2021 was $69.2 million, up 34% 12 months over 12 months from $51.5 million for the 12 months of 2020.

Full Yr 2022 Steerage

• Internet revenues of $390 million to $410 million, the midpoint of which represents 18% development over prior 12 months
• Adjusted EBITDA of $80 million to $84 million, the midpoint of which represents 18% development over prior 12 months²

Fourth Quarter and Full Yr 2021 Convention Name

Convey will host a convention name to debate fourth quarter and 12 months finish 2021 outcomes on March 23, 2022 at 5:00 p.m. Jap Time. The convention name might be accessed by dialing (844) 200-6205 for U.S. members or +1 (929) 526-1599 for worldwide members, and referencing convention ID 637508; or by way of a dwell audio webcast that shall be accessible on-line at https://ir.conveyhealthsolutions.com. A replay of the decision shall be accessible by way of webcast for on-demand listening shortly after the completion of the decision, on the identical net hyperlink, and can stay accessible for about 90 days.

About Convey Well being Options

Convey Well being Options is a specialised healthcare expertise and providers firm that’s dedicated to offering shoppers with healthcare-specific, compliant member help options using expertise, engagement, and analytics. Convey Well being Options’ administrative options for government-sponsored well being plans assist to optimize member interactions, guarantee compliance, and help end-to-end Medicare processes. By combining its best-in-class, built-for-purpose expertise platforms with devoted and versatile enterprise course of options, Convey Well being Options creates higher enterprise outcomes and higher healthcare client experiences on behalf of enterprise clients and companions. Convey Well being Options’ shoppers embrace among the nation’s main medical insurance plans and pharmacy profit administration companies. Their healthcare-focused groups assist a number of million Individuals every year to navigate the advanced Medicare Benefit and Half D panorama. To be taught extra about Convey Well being Options, please go to www.ConveyHealthSolutions.com.

Ahead-Wanting Statements

This press launch accommodates “forward-looking statements.” These statements are made pursuant to the secure harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements are neither historic information nor assurances of future efficiency. As a substitute, they’re based mostly on our present beliefs, expectations, and assumptions concerning the way forward for our enterprise, future plans and techniques and different future situations. Such forward-looking statements could embrace, with out limitation, statements about future alternatives for us and our services and products, our future operations, monetary or working outcomes, together with our 2022 monetary steering, our perception that the acquisition of HealthSmart strengthens Convey’s worth proposition for our well being plan shoppers, our perception that Convey is now even higher positioned for go-forward development, and are excited for an additional sturdy 12 months in 2023, our perception that our proprietary expertise and tech-enabled providers proceed to ship a robust worth proposition for our well being plan clients, and by doing so, present enticing income development alternatives for Convey, that we’re excited to proceed this momentum in 2022 and stay up for one other sturdy 12 months, anticipated enterprise ranges, our capacity to create worth for our shoppers and serve their enterprise aims, future earnings, deliberate actions, anticipated development, market alternatives and our expectations with respect to the expansion of the markets by which we compete, together with the Medicare Benefit market, developments within the markets by which we compete, methods, competitions and different expectations and targets for future intervals. In some instances, you possibly can establish forward-looking statements as a result of they include phrases resembling “anticipate,” “imagine,” “estimate,” “count on,” “intend,” “could,” “predict,” “mission,” “goal,” “potential,” “search,” “will,” “would,” “might,” “ought to,” proceed,” “ponder,” “plan” and different phrases and phrases of comparable that means. Ahead-looking statements are topic to recognized and unknown dangers and uncertainties, lots of which can be past our management. We warning you that forward-looking statements aren’t ensures of future efficiency or outcomes and that precise efficiency and outcomes could differ materially from these made in or prompt by the forward-looking statements contained on this press launch. As well as, even when our outcomes of operations, monetary situation and money flows, and the event of the markets by which we function, are per the forward-looking statements contained on this press launch, these outcomes or developments will not be indicative of outcomes or developments in subsequent intervals. New components emerge sometimes that will trigger our enterprise to not develop as we count on, and it isn’t doable for us to foretell all of them. Elements that might trigger precise outcomes and outcomes to vary from these mirrored in forward-looking statements embrace, amongst others, the next: our capacity to retain our present shoppers or appeal to new shoppers, and promote extra options and providers to our shoppers; our dependence on a small variety of shoppers for a considerable portion of our complete income; limitations of our shoppers’ development prospects, and the failure of the dimensions of the entire addressable markets by which we compete or count on that we could compete sooner or later to develop at charges presently anticipated; dangers associated to acquisitions of different companies or applied sciences and different vital transactions; will increase in labor prices, together with attributable to altering minimal wage legal guidelines, and an total tightening of the labor market; an financial downturn or volatility, together with because of the continuing COVID-19 pandemic; current and future developments within the Medicare Benefit market or the healthcare business typically, together with with respect to altering legal guidelines and rules; safety breaches or incidents, failures and different disruptions of the knowledge expertise programs utilized in our enterprise operations and of the delicate data we accumulate, course of, transmit, use and retailer; disruptions in service, and different software program and programs failures, affecting us and our distributors; our capacity to acquire, keep, defend and implement our mental property and proprietary rights; our capacity to function our enterprise with out infringing, misappropriating or in any other case violating the mental property or proprietary rights of third events; our substantial indebtedness, and the restrictions imposed by our indebtedness on our subsidiaries; recognized materials weaknesses in our inner management over monetary reporting and a failure to remediate these materials weaknesses, and the effectiveness of our inner management over monetary reporting; and the numerous affect our principal stockholder, TPG, has over us. For an extra dialogue of those and different components that might influence our future outcomes, efficiency or transactions, see the part Half II, Merchandise 1A “Threat Elements” included in our Type 10-Q for the interval ended September 30, 2021 and our different filings with the SEC. Given these uncertainties, you shouldn’t place undue reliance on these forward-looking statements. It’s not doable for us to foretell all dangers, nor can we assess the influence of all components on our enterprise or the extent to which any issue, or mixture of things, could trigger precise outcomes to vary materially from these contained in any forward-looking statements we could make. We qualify the entire forward-looking statements on this press launch by these cautionary statements. Besides as required by legislation, we undertake no obligation to publicly replace any forward-looking statements, whether or not because of new data, future occasions or in any other case.

Use of Non-GAAP Monetary Measures

This press launch contains the presentation and dialogue of sure monetary data that differs from what’s reported underneath accounting rules typically accepted in the US (“GAAP”). EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP monetary measures and are introduced in an effort to complement buyers’ and different readers’ understanding and evaluation of the monetary efficiency of the Firm. We use EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to evaluate our monetary efficiency and in addition for inner planning and forecasting functions. We imagine EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin present buyers with helpful data as a result of such metrics provide a constant and comparable overview of our operations throughout historic monetary intervals. In evaluating EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, try to be conscious that sooner or later we could incur bills just like these eradicated within the presentation.

Non-GAAP measures needs to be thought-about as a complement to, and never as an alternative choice to, or superior to, the corresponding measures calculated in accordance with GAAP. There are limitations to using the non-GAAP monetary measures introduced on this press launch. For instance, our non-GAAP monetary measures will not be akin to equally titled measures of different firms. Different firms, together with firms in our business, could calculate non-GAAP monetary measures in a different way than we do, limiting the usefulness of these measures for comparative functions.

The non-GAAP monetary measures we current aren’t meant to be thought-about as indicators of efficiency in isolation from or as an alternative choice to measures ready in accordance with GAAP, and needs to be learn solely along side monetary data introduced on a GAAP foundation. Reconciliations of every of those non-GAAP measures to probably the most straight comparable GAAP monetary measure are introduced beneath. We encourage you to assessment our monetary data in its entirety, to not depend on any single monetary measure and to view the reconciliations along side the presentation of the non-GAAP monetary measures for every of the intervals introduced. In future intervals, we could exclude such gadgets, could incur earnings and bills just like these excluded gadgets, and embrace different bills, prices, and non-recurring gadgets.

Convey just isn’t offering forward-looking steering for U.S. GAAP reported monetary measures (aside from internet revenues) or a quantitative reconciliation of forward-looking non-GAAP monetary measures to probably the most straight comparable U.S. GAAP measure because of the inherent issue in forecasting and quantifying sure quantities which can be mandatory for such reconciliations, together with internet (loss) earnings and changes that might be made for earnings tax expense/advantages, contract termination prices, and extinguishment of debt in its reconciliation of historic numbers. These things are unsure, rely upon varied components, and will have a cloth influence on U.S. GAAP reported outcomes for the steering interval.

Non-GAAP Reconciliations

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

We outline EBITDA as internet earnings (loss) much less earnings (loss) from discontinued operations adjusted for curiosity, internet, earnings tax expense (profit), and depreciation and amortization expense. We outline Adjusted EBITDA as EBITDA additional adjusted for sure gadgets of a major or uncommon nature, together with however not restricted to, change in honest worth contingent consideration, COVID-19 value impacts, non-cash inventory compensation, transaction associated prices, acquisition bonus expense, loss on extinguishment of debt, director and officer prior act legal responsibility insurance coverage coverage and different prices. Different contains prices resembling contract termination charges, administration, and board of administrators’ charges, and association charges paid to TPG in reference to acquiring the incremental time period loans.

Adjusted EBITDA Margin is outlined as Adjusted EBITDA divided by internet revenues.

The next desk presents a reconciliation of internet earnings (loss) to EBITDA and Adjusted EBITDA for the intervals introduced:

Investor Contacts

Kevin Ellich
ICR Westwicke
[email protected]

Media Contact

Tom Pelegrin
Senior Vice President & Chief Income Officer
[email protected]

Investor Contacts

Kevin Ellich
ICR Westwicke
[email protected]

Media Contact

Tom Pelegrin
Senior Vice President & Chief Income Officer
[email protected]

SOURCE Convey Well being Options