In the news release, CareSpan Health, Inc. Delivers Record 2021
Results with 67.4% YoY Revenue Growth, issued 05-May-2022 by CareSpan Health, Inc. over CNW, we
are advised by the company that the ticker symbol in the first
paragraph should read "(TSXV: CSPN)" rather than "(TSXV: CSPAN)" as
originally issued inadvertently. The complete, corrected release
follows:
CareSpan Health, Inc. Delivers Record 2021 Results with 67.4% YoY
Revenue Growth
- Revenues of US$5.76 million in
2021 compared to $3.44 million in
2020, an increase of 67.4%, driven by 65% growth in patient
encounters from 24,600 in 2020 to 40,600 in 2021.
- Adjusted EBITDA of US$(3.3)
million for 2021 compared to $(2.2)
million in 2020
- Ended the Year with 81 providers on the network compared to
50 at the end of 2020.
- Strong growth momentum has continued into 2022 with the
number of providers in the network crossing the 100 mark at the end
of Q1/2022.
- Recently launched Remote Patient Monitoring (RPM) services
are experiencing strong patient enrollments, currently
approaching 300 patients.
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BEEN AND WILL NOT BE REGISTERED UNDER THE
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"U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY
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VANCOUVER, BC, May 5, 2022
/CNW/ - CareSpan Health, Inc. (TSXV: CSPN) (the
"Company" or "CareSpan"), a company addressing the
shortage in primary care and mental health through its provider
networks, American-APN and American-MedPsych, and its leading
"Clinic-in-the-Cloud" platform, is pleased to announce its audited
consolidated annual results for the year ended December 31, 2021. All amounts are
expressed in U.S. dollars.
Rembert de Villa, Chief Executive
Officer of the Company stated, "our top line results in 2021
validates our focus on the underserved and leveraging Nurse
Practitioners to address the shortage in primary care and mental
health in the United States. We ended 2021 with 81 providers
in our networks, compared to 50 providers at the end of 2020,
representing 62% growth. Billable patients' visits grew 65%,
from 24,600 in 2020 to 40,600 in 2021, driven by the growth in
number of network providers and number of patient visits per
provider. In addition, we started to see initial revenue flow from
the disability assessment contract for U.S. military veterans, as
participating providers are credentialed and start to see
beneficiaries. Our business thesis and strategy—enabling
Nurse Practitioners and mental health providers with leading-edge
digital technology and business services— was validated in 2021 and
provided us the experience and capability set to scale the business
going forward."
Year-End 2021 Annual Financial
Highlights:
- CareSpan delivered record revenues of US$5.75 million in 2021, up 67.4% over 2020.
- Revenue growth was driven by 62% growth in number of in-network
providers, from 50 to 81 at the end of 2020 and 2021, respectively,
as well as 65% growth in patient encounters from 24,600 to 40,600
in the same period.
- Adjusted EBIDTA loss for 2021 was $(3,321,815) compared to loss of $(2,205,757) in 2020.
- The Company's cash balance was $948,662 as of December
31, 2021 compared to $1,474,177 as of the end of 2020.
Fourth Quarter 2021 Financial
Highlights:
- Fourth quarter 2021 revenues were $2,046,853 similar to $2,034,301 in Q4 2020. The Q4 2020 revenue number
was driven primarily by the large increase in patient visits
resulting from COVID-19 during that period.
- Comprehensive loss for the quarter was $(2,541,647) compared to $(2,527,494) in 2020.
- Adjusted EBIDTA loss for the quarter was $(660,666), compared to $(1,244,851 during the
fourth quarter of 2020.
Fourth Quarter 2021 Business
Highlights
- The Company added 21 providers to its networks, American-APN
and American‑MedPsych, ending the fourth quarter at 81 up from the
60 providers as of the end of the third quarter 2021. This
demonstrated continue traction in the growth of our networks.
- In November 2021, CareSpan's
American-APN provider network started to see the first group of
Nurse Practitioners credentialed for U.S. military veterans'
disability assessments.
- The Company also closed the previously-announced Qualifying
Transaction and completed the concurrent financing of C$2,297,947.40 through the issuance of an
aggregate of 3,282,782 subscription receipts at a price of
C$0.70 per subscription receipt.
- The Company commenced trading on the TSX Venture Exchange on
November 26, 2021 under the symbol
"CSPN."
Events Subsequent to December 31, 2021
- In March 2022, CareSpan launched
its Remote Patient Monitoring ("RPM") service with the
enrollment of the first 100 patients. RPM is a critical
value-add service that allows clinicians to monitor vital signs of
their enrolled patients (mainly patients with chronic illness) on a
continuous and regular basis using digital devices and CareSpan's
digital health platform. The Company plans to enroll about
2000 patients in the service in 2022. This will begin to be
an important contributor of both revenue and profitability.
- On April 13, 2022, the Company
closed a non-brokered private placement financing for gross
proceeds of C$1,185,000 through the
issuance of 3,385,714 common shares in the capital of the
Company.
- On April 22, 2022, the Company
entered into debt settlement agreements with three certain
arms-length creditors (together, the "Creditors", and each a
"Creditor") to settle US$193,461.71, C$21,818.30, and C$16,000.00 (collectively, the "Debt
Settlement") in respective debts for services provided by the
Creditors to the Company.
- On April 25, 2022, the Company
announced that the number of clinicians signed to its provider
networks has crossed 100. This marks an important milestone in the
Company's growth as it pursues its mission to provide solutions to
the primary care shortage in the United
States.
Outlook
After have its business model validated in 2021, CareSpan is
focused on executing its growth strategy in 2022 and beyond.
This growth plan centers on the following:
- Continuing to recruit clinicians (mainly Nurse Practitioners)
to grow and expand the reach of our provider networks, American-APN
and American MedPsych;
- Enrolling patients for the RPM service and leveraging
CareSpan's integrated digital care platform to achieve better
health outcomes, primarily for chronic care and Medicare
patients;
- Ramping the implementation of the disability assessment
contract for U.S. military veterans; and
- Improving individual practice revenue through improved billing
and collections, patient acquisition and engagement, and new payor
contracts.
About CareSpan Health,
Inc.
CareSpan is a healthcare technology and services company
incorporated in British Columbia.
CareSpan's proprietary "Clinic-in-the Cloud" is a clinical workflow
driven platform designed by doctors that integrates remote patient
monitoring, diagnostic tools, the patient's electronic health
record, care collaboration capabilities, patient engagement and
e-prescribing and lab ordering. CareSpan's platform seamlessly
supports both in-person and virtual/telehealth care. CareSpan is
using this platform combined with essential business services to
build provider networks across the U.S. that deliver primary and
chronic care, and urgent care as well as behavioral health
care.
About American-APN and
American-MedPsych
American-APN is one of the first professional "group practices
without walls" that brings highly qualified Nurse Practitioners to
those in need of health care under a collaborative care system that
uses digital technologies. American-APN was created for and
by advanced practice nurses and NPs (Nurse Practioners). It is
operated exclusively by its nurse practitioner membership with its
own executive leadership and board of directors.
American-MedPsych brings together behavioral health specialists
in their own "practice without walls," allowing them to collaborate
with American-APN and other primary care providers to address the
growing behavioral health shortage in the
United States.
American-MedPsych is a growing national group practice of
behavioral specialists delivering care using the CareSpan Clinic
and supported by CareSpan Integrated Network's management services
organization. American-MedPsych specialists uses sophisticated
digital care tools in collaboration with primary care counterparts
to manage reinforcing conditions such as depression and diabetes,
substance abuse and pain, stress, and job performance, to alleviate
suffering and improve outcomes.
Members of both networks benefit from the suite of technology
and business services and solutions offered by CareSpan Integrated
Networks.
ON BEHALF OF THE BOARD OF DIRECTORS:
Rembert de
Villa
Chief Executive Officer
For further information please visit:
http://www.carespanhealth.com, http://www.americanapn.com and
http://www.americanmedpsych.com.
Use of Non-IFRS Measures
This press release refers to certain non-IFRS (International
Financial Reporting Standards) measures including, but not limited
to Adjusted EBITDA (as defined herein). These measures do not have
a standardized meaning prescribed by IFRS and therefore they may
not be comparable to similarly titled measures presented by other
companies and should not be construed as an alternative to other
financial measures determined in accordance with IFRS.
Rather, these non-IFRS measures are provided as additional
information to complement IFRS measures by providing a further
understanding of operations from management's perspective.
Accordingly, non-IFRS measures should not be considered in
isolation nor as a substitute for analysis of financial information
reported under IFRS. Management believes that these non-IFRS
measures provide useful information to investors in measuring the
financial performance of Company for the reasons outlined
below.
Management uses Adjusted earnings before interest, income taxes,
depreciation, and amortization ("Adjusted EBITDA") as a key
financial metric to evaluate Company's operating performance as a
complement to results provided in accordance with IFRS. The term
"Adjusted EBITDA", as defined by management, refers to net income
(loss) before adjusting earnings for finance costs, income taxes,
stock-based compensation, amortization, non-recurring items, and
severance costs.
We believe that the items excluded from Adjusted EBITDA are not
connected to and do not represent the operating performance of
Company. We believe that Adjusted EBITDA is useful
supplemental information as it provides an indication of the
results generated by Company's main business activities prior to
taking into consideration how those activities are financed and
taxed as well as expenses related to stock-based compensation,
depreciation, amortization, restructuring costs, other expense
(income), and foreign exchange (gain) loss. Accordingly, we believe
that this measure may also be useful to investors in enhancing
their understanding of Company's operating performance. It is a key
measure used by Company's management and board of directors to
understand and evaluate Company's operating performance, to prepare
annual budgets and to help develop operating plans.
Forward-Looking
Statements
This news contains "forward-looking statements" within the
meaning of applicable Canadian securities laws (collectively,
"forward-looking statements") which reflect the current
expectations of management of the company's future growth, results
of operations, performance, and business prospects and
opportunities, including the statements made above with respect to:
(i) the Company's anticipation of scaling the business going
forward; (ii) the Company continuing to recruit Nurse Practioiners;
(iii) enrolling patients in RPM; (iv) the Company enrolling 2,000
patients in 2022 in their RPM servies which will be an important
revenue and profitability factor; and (v) ramping the
implementation of the disability assessment contract for U.S.
military veterans; and (vi) improving individual practive revenue
through improved billing and collections, patient acquisition and
engagement and new payor contracts. Forward-looking statements are
frequently, but not always, identified by words such as "may",
"would", "could", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential for", "intend" and
similar expressions or the negative of these terms or other
comparable terminology, although these words may not be present in
all forward-looking statements.
Forward-looking statements are based on management's
assumptions as at the date of the forward-looking statements are
provided, including but not limited to the following: the ability
of the Company to execute its growth plans and business strategies;
the ability of the Company to secure new contracts and assignments;
the growth of the NPs within CareSpan's network and acquiring
patients for its RPM services; and the ability of the Company to
generate meaningful revenue from such assignments and future
engagements. Though management believes that its assumptions are
reasonable in the circumstances, forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the Company's actual results, performance or achievements to
differ materially from all or any of the future results,
performance or achievements expressed or implied by forward-looking
statements. Risk factors that could cause the Company's actual
results, performance, or achievements to differ from the
forward-looking statements in this news release include, but may
not be limited to: general market and economic risk; any necessary
regulatory approvals required (if applicable) for the Company to
deliver the services under its previous engagements; the ability of
the Company's management to execute its strategy; unexpected or
adverse regulatory changes in the healthcare space; and the ability
of the Company to attract and retain new NPs; the Company's ability
to attract new paitents for its RPM services. These factors should
be considered carefully, and prospective investors should not place
undue reliance on the forward-looking statements. Although the
forward-looking statements contained in the news release are based
upon what management currently believes to be reasonable
assumptions, the Company cannot assure prospective investors that
actual results, performance or achievements will be consistent with
these forward-looking statements. Except as required by law, the
Company expressly disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE CareSpan Health, Inc.