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MISSISSAUGA, Ontario & PHOENIX--(BUSINESS WIRE)-- MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months ended March 31, 2022.
“I am proud of our team’s strong start to the year. We delivered robust sales growth in the first quarter and achieved a milestone in our Pharmacy Technology business with the completion of our integration with Epic,” said Mark Doerr, Chief Executive Officer of MedAvail. “There is clear momentum and demand for our differentiated pharmacy technology solutions, and we are deliberately investing in our teams and business to drive this growth. We are excited for our path forward and the significant opportunity ahead, as we focus on execution of our expansion strategy with new and existing clinic partners and driving initiatives to deliver sustainable and profitable growth.”
Recent Operational Highlights
First Quarter 2022 and Recent Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended March 31, 2021.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, May 12, 2022, to discuss its first quarter 2022 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.
Definition of Key Metrics
Dispensing Deployments
We define dispensing deployments as sites that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks.
Net Cumulative Deployments
Net cumulative deployments includes dispensing deployments and installed not yet dispensing deployments, but excludes decommissioned clinics, pilots and demo sites.
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.
Non-GAAP Financial Measures
MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures.
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 and profitability; customer demand and expansion plans; margin improvement; improvements in deployment efficiency and speed; anticipated proceeds from private offerings; 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 MedAvail’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2022, and other filings MedAvail makes with the SEC in the future. Additional information is also set forth in MedAvail’s Annual Report on Form 10-K for the year ended December 31, 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
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31,
2022
2021 (1)
Revenue:
Pharmacy and hardware revenue
$
9,014
$
3,781
Service revenue
100
246
Total revenue
9,114
4,027
Cost of products sold and services:
Pharmacy and hardware cost of products sold
8,563
3,526
Service costs
50
181
Total cost of products sold and services
8,613
3,707
Operating expenses:
Pharmacy operations
3,929
2,593
General and administrative
6,535
5,676
Selling and marketing
2,313
1,534
Research and development
493
168
Merger expenses
—
—
Total operating expense
13,270
9,971
Operating loss
(12,769
)
(9,651
)
Other gain (loss), net
—
161
Interest income
1
40
Interest expense
(254
)
(2
)
Loss before income taxes
(13,022
)
(9,452
)
Income tax expense
—
—
Net loss
$
(13,022
)
$
(9,452
)
(1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow.
MEDAVAIL HOLDINGS, INC.
Operating Expense Reclassifications
(in thousands)
(Unaudited)
Three Months Ended March 31, 2021
Current presentation
As previously reported
Change
Pharmacy operations
$
2,593
$
1,911
$
682
General and administrative
5,676
6,515
(839
)
Selling and marketing
1,534
1,377
157
$
9,803
$
9,803
$
—
MEDAVAIL HOLDINGS, INC.
Consolidated Condensed Balance Sheets
(in thousands, except share and per share amounts)
March 31,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
5,274
$
19,689
Restricted cash
676
400
Accounts receivable (net of allowance for doubtful accounts of $96 thousand for March 31, 2022, $60 thousand for December 31, 2021)
1,748
1,189
Inventories
5,088
3,916
Prepaid expenses and other current assets
3,105
2,191
Total current assets
15,891
27,385
Property, plant and equipment, net
6,175
5,692
Intangible assets, net
2,765
2,300
Right-of-use assets
2,628
2,538
Other assets
233
228
Total assets
$
27,692
$
38,143
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities
$
8,527
$
6,740
Short-term debt
—
—
Deferred revenue
107
83
Current portion of lease obligations
733
682
Total current liabilities
9,367
7,505
Long-term debt, net
9,608
9,538
Long-term portion of lease obligations
2,102
2,027
Other liabilities
—
—
Total liabilities
21,077
19,070
Commitments and contingencies
Stockholders' deficit:
Common shares ($0.001 par value, 100,000,000 shares authorized, 32,908,922 and 32,902,048 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively)
33
33
Warrants
1,373
1,373
Additional paid-in-capital
217,249
216,685
Accumulated other comprehensive loss
(6,928
)
(6,928
)
Accumulated deficit
(205,112
)
(192,090
)
Total stockholders' equity
6,615
19,073
Total liabilities and stockholders' equity
$
27,692
$
38,143
MEDAVAIL HOLDINGS, INC.
Supplemental Financial Information - Segments
(in thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy
Technology
Total
Three Months Ended March 31, 2022
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
8,849
$
—
$
8,849
Hardware
—
56
56
Subscription
—
109
109
Total pharmacy and hardware revenue
8,849
165
9,014
Service revenue:
Software integration
—
—
—
Software
—
48
48
Maintenance and support
—
32
32
Installation
—
6
6
Professional services and other
—
14
14
Total service revenue
—
100
100
Total revenue
8,849
265
9,114
Cost of products sold and services
8,482
131
8,613
Segment gross profit
$
367
$
134
501
Retail Pharmacy
Services
Pharmacy
Technology
Total
Three Months Ended March 31, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
$
3,418
$
—
$
3,418
Hardware
—
241
241
Subscription
—
122
122
Total pharmacy and hardware revenue
3,418
363
3,781
Service revenue:
Software integration
—
—
—
Software
—
33
33
Maintenance and support
—
31
31
Installation
—
16
16
Professional services and other
—
166
166
Total service revenue
—
246
246
Total revenue
3,418
609
4,027
Cost of products sold and services
3,329
378
3,707
Segment gross profit
$
89
$
231
320
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 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
(in thousands)
Three Months Ended March 31,
2022
2021 (1)
Net loss
$
(13,022
)
$
(9,452
)
Adjustments to calculate EBITDA:
Interest income
(1
)
(40
)
Interest expense
254
2
Income tax expense
—
—
Depreciation and amortization (1)
432
340
EBITDA
$
(12,337
)
$
(9,150
)
Adjustments as follows:
Share-based compensation expense
564
260
Adjusted EBITDA
$
(11,773
)
$
(8,890
)
(1) Excludes $166 thousand and $162 thousand in operating lease amortization for the three months ended March 31, 2022, and 2021, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512006020/en/
Investor Relations
Caroline Paul
Gilmartin Group
ir@medavail.com
Source: MedAvail Holdings Inc.
1.877.830.0826
info@medavail.com
ir@medavail.com
Home office:
4720 E. Cotton Gin Loop
Suite 220
Phoenix, AZ 85040
Canada office:
6665 Millcreek Dr. Unit 1
Mississauga, ON L5N 5M4 Canada
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