R1 RCM Inc. (“R1” or the “Company”) (NASDAQ:RCM), a leading
provider of revenue cycle management and physician advisory
services to healthcare providers, today announced results for the
three months ended September 30, 2017.
Third Quarter 2017 Results:
- GAAP net services revenue of $123.2 million, up $23.8 million
sequentially
- GAAP net loss of $3.6 million, better by $3.1 million
sequentially
- Adjusted EBITDA of $3.1 million, better by $6.4 million
sequentially
- Free cash flow of $11.7 million, compared to ($9.0) million in
the second quarter of 2017
“We’re pleased to report our fifth consecutive quarter of
revenue growth, and more importantly, a turn to positive adjusted
EBITDA and free cash flow,” said Joe Flanagan, President and Chief
Executive Officer of R1. “Our core revenue cycle business and our
physician advisory services offering are both executing well. Our
competitive position is strong, and we continue to make
improvements to our offering to enhance our value proposition and
positioning in the market.”
“I’m very pleased with the execution that drove our results for
the third quarter,” added Chris Ricaurte, Chief Financial Officer
and Treasurer of R1. “With the progress we have made onboarding new
business, we remain on track to exit 2017 at an annualized revenue
run rate of approximately $650 million.”
2017 OutlookFor 2017, R1 currently expects to
generate:
- Revenue of between $425 million and $450 million
- GAAP operating loss of $25 million to $30 million
- Adjusted EBITDA of $0 to positive $5 million
Conference Call and Webcast DetailsR1’s
management team will host a conference call today at 4:30 p.m.
Eastern Time to discuss its financial results and business outlook.
To participate, please dial 877-880-5884 (631-601-2894 outside the
U.S. and Canada) using conference code number 3793709. A live
webcast and replay of the call will be available at the Investor
Relations section of the Company’s web site at r1rcm.com.
Non-GAAP Financial MeasuresIn order to provide
a more comprehensive understanding of the information used by R1’s
management team in financial and operational decision making, the
Company supplements its GAAP consolidated financial statements with
certain non-GAAP financial measures, which are included in this
press release.
For the three and nine months ended September 30, 2017: As
of January 1, 2017, the Company adopted Accounting Standards Update
("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic
606). Subsequent to adoption of Topic 606, the non-GAAP financial
measure referenced in the press release is adjusted EBITDA.
Adjusted EBITDA is defined as GAAP net income before net interest
income, income tax provision, depreciation and amortization
expense, share-based compensation expense, and severance &
certain other items.
For the three and nine ended September 30, 2016: Prior to
the adoption of Topic 606, non-GAAP financial measures utilized by
the company included gross cash generated from customer contracting
activities, and net cash generated from customer contacting
activities. Gross cash generated from customer contracting
activities was defined as GAAP net services revenue, plus the
change in deferred customer billings. Accordingly, gross cash
generated from customer contracting activities is the sum of (i)
invoiced or accrued net operating fees, (ii) cash collections on
incentive fees and (iii) other services fees. Net cash
generated from customer contracting activities was defined as net
income before net interest income, income tax provision,
depreciation and amortization expense, share-based compensation
expense, and severance and certain other items. Deferred customer
billings included the portion of both (i) invoiced or accrued net
operating fees and (ii) cash collections of incentive fees, in each
case, that have not met our revenue recognition criteria. Deferred
customer billings are included in the detail of our customer
liabilities and customer liabilities - related party balance in the
consolidated balance sheets available in the Company’s Quarterly
Report on Form 10-Q for the three months ended September 30,
2016.
Our board and management team use non-GAAP measures as (i) one
of the primary methods for planning and forecasting overall
expectations and for evaluating actual results against such
expectations and (ii) a performance evaluation metric in
determining achievement of certain executive incentive compensation
programs, as well as for incentive compensation programs for
employees.
Table 4 presents a reconciliation of GAAP net income to adjusted
EBITDA, and GAAP net income to net cash generated from customer
contracting activities. Table 9 presents a reconciliation of GAAP
operating income guidance to non-GAAP adjusted EBITDA guidance.
Adjusted EBITDA and net cash generated from customer contracting
activities are non-GAAP measures and should be considered in
addition to, but not as a substitute for, the information prepared
in accordance with GAAP.
Free cash flow is defined as cash flow from operations less
capital expenditures.
Forward Looking StatementsThis press release
includes information that may constitute “forward-looking
statements,” made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements relate to future, not past, events and often address our
expected future growth, plans and performance or forecasts. These
forward-looking statements are often identified by the use of words
such as “anticipate,” “believe,” “designed,” “estimate,” “expect,”
“forecast,” “intend,” “may,” “plan,” “predict,” “project,”
“target,” “will,” or “would,” and similar expressions or
variations, although not all forward-looking statements contain
these identifying words. Such forward-looking statements are based
on management’s current expectations about future events as of the
date hereof and involve many risks and uncertainties that could
cause our actual results to differ materially from those expressed
or implied in our forward-looking statements. Subsequent events and
developments, including actual results or changes in our
assumptions, may cause our views to change. We do not undertake to
update our forward-looking statements except to the extent required
by applicable law. Readers are cautioned not to place undue
reliance on such forward-looking statements. All forward-looking
statements included herein are expressly qualified in their
entirety by these cautionary statements. Our actual results and
outcomes could differ materially from those included in these
forward-looking statements as a result of various factors,
including, but not limited to our ability to successfully
integrate transitioned Ascension employees, our ability to
achieve or maintain profitability and retain existing customers or
acquire new customers, risks associated with the implementation of
our technologies or services with our customers or implementation
costs that exceed our expectations, fluctuations in our quarterly
results of operations and cash flows, as well as the factors
discussed under the heading “Risk Factors” in our annual report on
Form 10-K for the year ended December 31, 2016, our 2017 quarterly
reports on Form 10-Q and any other periodic reports that the
Company files with the Securities and Exchange Commission.
About R1 RCMR1 serves as the one revenue cycle
management partner for select hospitals and healthcare systems
regardless of their payment models, patient engagement strategies
or settings of care. The company uses a proven operating
model based on the R1 Performance StackSM designed to fit
seamlessly into any healthcare organization’s infrastructure and to
enhance the patient experience, improve provider economics and
provide revenue predictability. To learn more, visit r1rcm.com.
Contact:R1 RCM Inc.Investor and Media
Relations:Atif Rahim312.324.5476investorrelations@r1rcm.com
Table 1 |
R1 RCM Inc. |
Condensed Consolidated Balance
Sheets |
(In millions) |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
142.8 |
|
|
$ |
181.2 |
|
Accounts
receivable, net |
|
7.7 |
|
|
4.0 |
|
Accounts
receivable, net - related party |
|
18.0 |
|
|
1.8 |
|
Prepaid income
taxes |
|
0.9 |
|
|
3.8 |
|
Prepaid expenses
and other current assets |
|
16.1 |
|
|
13.8 |
|
Total current
assets |
|
185.5 |
|
|
204.6 |
|
Property, equipment and
software, net |
|
50.2 |
|
|
32.8 |
|
Non-current deferred
tax assets |
|
105.8 |
|
|
169.9 |
|
Restricted cash
equivalents |
|
1.5 |
|
|
1.5 |
|
Other assets |
|
11.4 |
|
|
6.3 |
|
Total assets |
|
$ |
354.4 |
|
|
$ |
415.1 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
6.9 |
|
|
$ |
7.9 |
|
Current portion
of customer liabilities |
|
0.9 |
|
|
69.7 |
|
Current portion
of customer liabilities - related party |
|
20.1 |
|
|
14.2 |
|
Accrued
compensation and benefits |
|
29.2 |
|
|
24.8 |
|
Other accrued
expenses |
|
16.1 |
|
|
18.5 |
|
Total current
liabilities |
|
73.2 |
|
|
135.1 |
|
Non-current portion of
customer liabilities |
|
0.3 |
|
|
1.0 |
|
Non-current portion of
customer liabilities - related party |
|
9.1 |
|
|
110.0 |
|
Other non-current
liabilities |
|
12.2 |
|
|
9.7 |
|
Total liabilities |
|
$ |
94.8 |
|
|
$ |
255.8 |
|
|
|
|
|
|
Preferred Stock |
|
184.7 |
|
|
171.6 |
|
Stockholders’
equity: |
|
|
|
|
Common stock |
|
1.2 |
|
|
1.2 |
|
Additional paid-in
capital |
|
339.8 |
|
|
349.2 |
|
Accumulated
deficit |
|
(204.3 |
) |
|
(304.7 |
) |
Accumulated other
comprehensive loss |
|
(2.2 |
) |
|
(2.8 |
) |
Treasury stock |
|
(59.6 |
) |
|
(55.2 |
) |
Total stockholders’
equity (deficit) |
|
74.9 |
|
|
(12.3 |
) |
Total liabilities and
stockholders’ equity (deficit) |
|
$ |
354.4 |
|
|
$ |
415.1 |
|
Table 2 |
R1 RCM Inc. |
Consolidated Statements of
Operations |
(In millions, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
(Unaudited) |
RCM services: net
operating fees |
|
104.6 |
|
|
49.0 |
|
|
255.4 |
|
|
300.3 |
|
RCM services: incentive
fees |
|
7.5 |
|
|
68.5 |
|
|
20.2 |
|
|
166.5 |
|
RCM services:
other |
|
2.8 |
|
|
3.8 |
|
|
9.8 |
|
|
8.3 |
|
Other services
fees |
|
8.3 |
|
|
4.2 |
|
|
24.1 |
|
|
11.3 |
|
Net services
revenue |
|
123.2 |
|
|
125.5 |
|
|
309.5 |
|
|
486.4 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Cost of
services |
|
111.8 |
|
|
47.4 |
|
|
289.1 |
|
|
137.6 |
|
Selling, general
and administrative |
|
15.1 |
|
|
16.2 |
|
|
41.6 |
|
|
58.4 |
|
Other |
|
1.4 |
|
|
0.5 |
|
|
2.6 |
|
|
20.0 |
|
Total operating
expenses |
|
128.3 |
|
|
64.1 |
|
|
333.3 |
|
|
216.0 |
|
Income (loss) from
operations |
|
(5.1 |
) |
|
61.4 |
|
|
(23.8 |
) |
|
270.4 |
|
Net interest
income |
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
Income (loss) before
income tax provision |
|
(5.1 |
) |
|
61.5 |
|
|
(23.7 |
) |
|
270.6 |
|
Income tax provision
(benefit) |
|
(1.5 |
) |
|
24.1 |
|
|
(5.1 |
) |
|
106.6 |
|
Net income (loss) |
|
(3.6 |
) |
|
37.4 |
|
|
(18.6 |
) |
|
164.0 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.08 |
) |
|
$ |
0.18 |
|
|
$ |
(0.31 |
) |
|
$ |
0.62 |
|
Diluted |
|
$ |
(0.08 |
) |
|
$ |
0.18 |
|
|
$ |
(0.31 |
) |
|
$ |
0.62 |
|
Weighted average shares
used in calculating net income (loss) per common share: |
|
|
|
|
|
|
|
|
Basic |
|
102,225,422 |
|
|
100,934,561 |
|
|
102,022,129 |
|
|
99,870,685 |
|
Diluted |
|
102,225,422 |
|
|
102,176,280 |
|
|
102,022,129 |
|
|
101,018,450 |
|
Table 3 |
R1 RCM Inc. |
Condensed Consolidated Statements of Cash
Flows |
(In millions) |
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
Operating
activities |
|
|
|
|
Net income (loss) |
|
$ |
(18.6 |
) |
|
$ |
164.0 |
|
Adjustments to
reconcile net income (loss) to net cash used in operations: |
|
|
|
|
Depreciation and amortization |
|
11.5 |
|
|
7.3 |
|
Share-based compensation |
|
8.2 |
|
|
25.2 |
|
Loss on
disposal |
|
0.2 |
|
|
— |
|
Provision
(recovery) for doubtful receivables |
|
0.1 |
|
|
0.1 |
|
Deferred
income taxes |
|
(5.6 |
) |
|
106.5 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Accounts receivable and related party
accounts receivable |
|
(15.4 |
) |
|
1.2 |
|
Prepaid income taxes |
|
3.0 |
|
|
0.2 |
|
Prepaid expenses and other assets |
|
(6.7 |
) |
|
(7.9 |
) |
Accounts payable |
|
0.3 |
|
|
(1.4 |
) |
Accrued compensation and benefits |
|
4.3 |
|
|
8.3 |
|
Other liabilities |
|
(0.3 |
) |
|
3.0 |
|
Customer liabilities and customer liabilities -
related party |
|
14.7 |
|
|
(375.8 |
) |
Net cash used in
operating activities |
|
(4.3 |
) |
|
(69.3 |
) |
Investing
activities |
|
|
|
|
Purchases
of property, equipment, and software |
|
(30.1 |
) |
|
(10.4 |
) |
Proceeds
from maturation of short-term investments |
|
— |
|
|
1.0 |
|
Net cash used in
investing activities |
|
(30.1 |
) |
|
(9.4 |
) |
Financing
activities |
|
|
|
|
Series A
convertible preferred stock and warrant issuance, net of issuance
costs |
|
— |
|
|
178.7 |
|
Exercise
of vested stock options |
|
— |
|
|
0.1 |
|
Purchase
of treasury stock |
|
(2.0 |
) |
|
(2.0 |
) |
Shares
withheld for taxes |
|
(2.4 |
) |
|
— |
|
Net cash (used in)
provided by financing activities |
|
(4.4 |
) |
|
176.8 |
|
Effect of exchange rate
changes in cash |
|
0.4 |
|
|
0.3 |
|
Net increase (decrease)
in cash and cash equivalents |
|
(38.4 |
) |
|
98.4 |
|
Cash and cash
equivalents, at beginning of period |
|
181.2 |
|
|
103.5 |
|
Cash and cash
equivalents, at end of period |
|
$ |
142.8 |
|
|
$ |
201.9 |
|
Table 4 |
R1 RCM Inc. |
Reconciliation of GAAP to
Non-GAAP |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
2017 vs. 2016 Change |
|
Nine Months Ended September 30, |
|
2017 vs. 2016 Change |
|
|
2017 |
|
2016 |
|
Amount |
|
% |
|
2017 |
|
2016 |
|
Amount |
|
% |
|
|
(Unaudited) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RCM
services: net operating fees |
|
104.6 |
|
|
49.0 |
|
|
55.6 |
|
|
113.5 |
% |
|
255.4 |
|
|
300.3 |
|
|
(44.9 |
) |
|
(15.0 |
)% |
RCM
services: incentive fees |
|
7.5 |
|
|
68.5 |
|
|
(61.0 |
) |
|
(89.1 |
)% |
|
20.2 |
|
|
166.5 |
|
|
(146.3 |
) |
|
(87.9 |
)% |
RCM
services: other |
|
2.8 |
|
|
3.8 |
|
|
(1.0 |
) |
|
(26.3 |
)% |
|
9.8 |
|
|
8.3 |
|
|
1.5 |
|
|
18.1 |
% |
Other
services fees |
|
8.3 |
|
|
4.2 |
|
|
4.1 |
|
|
97.6 |
% |
|
24.1 |
|
|
11.3 |
|
|
12.8 |
|
|
113.3 |
% |
Net Services Revenue |
|
123.2 |
|
|
125.5 |
|
|
(2.3 |
) |
|
(1.8 |
)% |
|
309.5 |
|
|
486.4 |
|
|
|
(176.9 |
) |
|
(36.4 |
)% |
Change in deferred customer billings (non-GAAP) |
|
n.a. |
|
(65.8 |
) |
|
n.m. |
|
n.m. |
|
n.a. |
|
(347.5 |
) |
|
n.m. |
|
n.m. |
Gross cash generated from customer contracting activities
(non-GAAP) |
|
n.a. |
|
59.7 |
|
|
n.m. |
|
n.m. |
|
n.a. |
|
138.9 |
|
|
n.m. |
|
n.m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(3.6 |
) |
|
37.4 |
|
|
(41.0 |
) |
|
(109.6 |
)% |
|
(18.6 |
) |
|
164.0 |
|
|
(182.6 |
) |
|
(111.3 |
)% |
Net interest income |
|
— |
|
|
(0.1 |
) |
|
0.1 |
|
|
(100.0 |
)% |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
0.1 |
|
|
(50.0 |
)% |
Income tax provision (benefit) |
|
(1.5 |
) |
|
24.1 |
|
|
(25.6 |
) |
|
(106.2 |
)% |
|
(5.1 |
) |
|
106.6 |
|
|
(111.7 |
) |
|
(104.8 |
)% |
Depreciation and amortization expense (GAAP) |
|
4.5 |
|
|
2.7 |
|
|
1.8 |
|
|
66.7 |
% |
|
11.5 |
|
|
7.3 |
|
|
4.2 |
|
|
57.5 |
% |
Share-based compensation expense (GAAP) |
|
2.4 |
|
|
4.8 |
|
|
(2.4 |
) |
|
(50.0 |
)% |
|
8.2 |
|
|
23.5 |
|
|
(15.3 |
) |
|
(65.1 |
)% |
Other (GAAP) |
|
1.4 |
|
|
0.5 |
|
|
0.9 |
|
|
180.0 |
% |
|
2.6 |
|
|
20.0 |
|
|
(17.4 |
) |
|
(87.0 |
)% |
Adjusted EBITDA (non-GAAP) |
|
3.1 |
|
|
69.4 |
|
|
(66.3 |
) |
|
(95.5 |
)% |
|
(1.6 |
) |
|
321.2 |
|
|
(322.8 |
) |
|
(100.5 |
)% |
Change in deferred customer billings (non-GAAP) |
|
n.a. |
|
(65.8 |
) |
|
n.m. |
|
n.m. |
|
n.a. |
|
(347.5 |
) |
|
n.m. |
|
n.m. |
Net cash
generated from customer contracting activities
(non-GAAP) |
|
n.a. |
|
3.6 |
|
|
n.m. |
|
n.m. |
|
n.a. |
|
(26.4 |
) |
|
n.m. |
|
n.m. |
n.m. - not meaningfuln.a. - Due to the adoption of Topic 606 as
of January 1, 2017, the non-GAAP measure of gross and net cash
generated from customer contracting activities, that was utilized
by the Company in 2016, is not applicable for 2017. Gross and net
cash generated from customer contracting activities have been
provided for the three and nine months ended September 30,
2016 as they are the most comparable metric to net services revenue
and adjusted EBTIDA for the three and nine months ended
September 30, 2017.
Due to rounding, numbers presented in this document may not add
up precisely to the totals provided.
Table 5 |
R1 RCM Inc. |
Share-Based Compensation Expense Allocation
Details |
(In millions) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Cost of services |
$ |
1.2 |
|
|
$ |
1.3 |
|
|
$ |
3.3 |
|
|
$ |
4.8 |
|
Selling, general and
administrative |
1.2 |
|
|
3.5 |
|
|
4.8 |
|
|
18.7 |
|
Other |
— |
|
|
— |
|
|
0.1 |
|
|
1.8 |
|
Total share-based
compensation expense |
$ |
2.4 |
|
|
$ |
4.8 |
|
|
$ |
8.2 |
|
|
$ |
25.3 |
|
Table 6 |
R1 RCM Inc. |
Depreciation and Amortization Expense
Allocation Details |
(In millions) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Cost of services |
$ |
4.0 |
|
|
$ |
2.6 |
|
|
$ |
10.4 |
|
|
$ |
6.9 |
|
Selling, general and
administrative |
0.5 |
|
|
0.1 |
|
|
1.1 |
|
|
0.4 |
|
Total depreciation and
amortization expense |
$ |
4.5 |
|
|
$ |
2.7 |
|
|
$ |
11.5 |
|
|
$ |
7.3 |
|
Table 7 |
R1 RCM Inc. |
Reconciliation of GAAP Net Services Revenue to
Non-GAAP Gross Cash Generated from Customer Contracting
Activities |
(In millions) |
|
Three Months Ended September 30,
2016 |
|
Nine Months Ended September 30,
2016 |
|
Net Services Revenue |
Change in deferred customer
billings |
Gross cash generated |
|
Net Services Revenue |
Change in deferred customer
billings |
Gross cash generated |
RCM services: net
operating fees |
49.0 |
|
(2.9 |
) |
46.1 |
|
|
300.3 |
|
(205.5 |
) |
94.8 |
|
RCM services: incentive
fees |
68.5 |
|
(61.0 |
) |
7.5 |
|
|
166.5 |
|
(142.7 |
) |
23.8 |
|
RCM services:
other |
3.8 |
|
(2.0 |
) |
1.8 |
|
|
8.3 |
|
0.7 |
|
9.0 |
|
Other services
fees |
4.2 |
|
0.1 |
|
4.3 |
|
|
11.3 |
|
— |
|
11.3 |
|
Total |
125.5 |
|
(65.8 |
) |
59.7 |
|
|
486.4 |
|
(347.5 |
) |
138.9 |
|
(1) Due to the adoption of Topic 606 as of January 1, 2017, the
non-GAAP measure of gross cash generated from customer contracting
activities that was utilized by the Company in 2016 is not
applicable for 2017. Gross cash generated from customer contracting
activities has been provided for the three and nine months ended
September 30, 2016 as it is the most comparable metric to net
services revenue for the three and nine months ended
September 30, 2017.Due to rounding, numbers presented in this
document may not add up precisely to the totals provided.
Table 8 |
R1 RCM Inc. |
Condensed Consolidated Non-GAAP Financial
Information |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
(Unaudited) |
RCM services: net
operating fees |
|
104.6 |
|
|
46.1 |
|
|
255.4 |
|
|
94.8 |
|
RCM services: incentive
fees |
|
7.5 |
|
|
7.5 |
|
|
20.2 |
|
|
23.8 |
|
RCM services:
other |
|
2.8 |
|
|
1.8 |
|
|
9.8 |
|
|
9.0 |
|
Other services
fees |
|
8.3 |
|
|
4.3 |
|
|
24.1 |
|
|
11.3 |
|
Net services
revenue (GAAP) (2017), Gross cash generated from customer
contracting activities (non-GAAP) (2016) (2) |
|
123.2 |
|
|
59.7 |
|
|
309.5 |
|
|
138.9 |
|
|
|
|
|
|
|
|
|
|
Operating expenses (1)
: |
|
|
|
|
|
|
|
|
Cost of services
(non-GAAP) |
|
106.6 |
|
|
43.5 |
|
|
275.4 |
|
|
125.9 |
|
Selling, general
and administrative (non-GAAP) |
|
13.4 |
|
|
12.6 |
|
|
35.7 |
|
|
39.3 |
|
Sub-total |
|
120.0 |
|
|
56.1 |
|
|
311.1 |
|
|
165.2 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP) (2017), Net cash generated from customer contracting
activities (non-GAAP) (2016) (2) |
|
$ |
3.1 |
|
|
$ |
3.6 |
|
|
$ |
(1.6 |
) |
|
$ |
(26.4 |
) |
(1) Excludes share-based compensation, depreciation and
amortization and other costs(2) Due to the adoption of Topic 606 as
of January 1, 2017, the non-GAAP measure of gross and net cash
generated from customer contracting activities that were utilized
by the Company in 2016 are not applicable for 2017. Gross and net
cash generated from customer contracting activities have been
provided for the three and nine months ended September 30,
2016 as they are the most comparable metric to net services revenue
and adjusted EBITDA, respectively, for the three and nine months
ended September 30, 2017.Due to rounding, numbers presented in
this document may not add up precisely to the totals provided.
Table 9 |
R1 RCM Inc. |
Reconciliation of GAAP Operating Income
Guidance to non-GAAP Adjusted EBITDA Guidance |
(In millions) |
|
GAAP Operating Income Guidance |
($25) - ($30) |
|
|
Plus: |
|
|
|
Depreciation and amortization expense |
~$13 |
|
|
Share-based compensation expense |
~$13 |
|
|
Severance and other costs |
~$5 |
|
|
Adjusted EBITDA Guidance |
$0 - $5 |
|
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