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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 June 30, 2022.
“We continued to execute on our strategic initiatives in the second quarter and are pleased to be introducing our full year revenue guidance. Our strong financial results are a testament to our focus on expanding our retail pharmacy and technology footprint, increasing utilization, and reducing costs across the enterprise,” said Mark Doerr, Chief Executive Officer of MedAvail. “We are delighted by the interest in our differentiated retail pharmacy and pharmacy technology solutions and are addressing this demand through our broadly scalable technology platform and hub and spoke model. As we enter the second half of the year, we see ourselves in a strong position to continue improving profitability and accelerating topline growth.”
Recent Operational Highlights
Second Quarter 2022 and Recent Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended June 30, 2021.
Full Year 2022 Financial Outlook
MedAvail expects total revenue for full year 2022 to be at least $42 million, representing growth of at least 90% over full year 2021 revenue.
The company is raising guidance of 25-30 net new dispensing deployments for full year 2022 to 30-35 net new dispensing deployments.
Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, August 11, 2022, to discuss its second 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
Net Dispensing Deployments
We define net dispensing deployments as sites that are live, meaning that such sites have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers.
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 company, 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 and cost savings projections and expectations for growth and profitability; customer demand and expansion plans; margin, utilization and cost reduction improvements; improvements in deployment efficiency and speed; 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 for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2022, MedAvail’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the SEC on May 13, 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, MedAvail’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30,
2022
2021 (1)
Revenue:
Pharmacy and hardware revenue
$
10,930
$
4,725
Service revenue
254
305
Total revenue
11,184
5,030
Cost of products sold and services:
Pharmacy and hardware cost of products sold
10,151
4,679
Service costs
115
178
Total cost of products sold and services
10,266
4,857
Operating expense:
Pharmacy operations
3,648
3,085
General and administrative
6,100
5,737
Selling and marketing
2,307
1,613
Research and development
281
201
Total operating expense
12,336
10,636
Operating loss
(11,418
)
(10,463
)
Other gain (loss), net
—
38
Interest income
—
27
Interest expense
(276
)
(66
)
Loss before income taxes
(11,694
)
(10,464
)
Income tax expense
(24
)
—
Net loss and comprehensive loss
$
(11,718
)
$
(10,464
)
Net loss per share - basic and diluted
$
(0.17
)
$
(0.32
)
Weighted average shares outstanding - basic and diluted
69,356,723
32,546,395
(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 June 30, 2021
Current presentation
As previously reported
Change
Pharmacy operations
$
3,085
$
2,292
$
793
General and administrative
5,737
6,646
(909
)
Selling and marketing
1,613
1,497
116
$
10,435
$
10,435
$
—
MEDAVAIL HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
June 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
29,202
$
19,689
Restricted cash
676
400
Accounts receivable (net of allowance for doubtful accounts of $123 thousand for June 30, 2022, $66 thousand for December 31, 2021)
2,076
1,189
Inventories
5,620
3,916
Prepaid expenses and other current assets
3,376
2,191
Total current assets
40,950
27,385
Property, plant and equipment, net
6,366
5,692
Intangible assets, net
2,851
2,300
Right-of-use assets
2,433
2,538
Other assets
233
228
Total assets
$
52,833
$
38,143
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
2,873
$
2,477
Accrued liabilities
1,696
1,530
Accrued payroll and benefits
3,047
2,733
Deferred revenue
91
83
Current portion of lease obligations
743
682
Total current liabilities
8,450
7,505
Long-term debt, net
9,679
9,538
Long-term portion of lease obligations
1,917
2,027
Total liabilities
20,046
19,070
Commitments and contingencies
Stockholders' deficit:
Common shares ($0.001 par value, 300,000,000 shares authorized, 70,609,972 and 32,902,048 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively)
71
33
Warrants
8,876
1,373
Additional paid-in-capital
247,598
216,685
Accumulated other comprehensive loss
(6,928
)
(6,928
)
Accumulated deficit
(216,830
)
(192,090
)
Total stockholders' equity
32,787
19,073
Total liabilities and stockholders' equity
$
52,833
$
38,143
MEDAVAIL HOLDINGS, INC.
Supplemental Financial Information - Segments
(in thousands)
(Unaudited)
Retail Pharmacy
Services
Pharmacy
Technology
Total
Three Months Ended June 30, 2022
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
10,641
$
—
$
10,641
Hardware
—
180
180
Subscription
—
109
109
Total pharmacy and hardware revenue
10,641
289
10,930
Service revenue:
Software
—
86
86
Maintenance and support
—
47
47
Installation
—
71
71
Professional services and other
—
50
50
Total service revenue
—
254
254
Total revenue
10,641
543
11,184
Cost of products sold and services
9,930
336
10,266
Segment gross profit
711
$
207
918
Retail Pharmacy
Services
Pharmacy
Technology
Total
Three Months Ended June 30, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue
4,494
$
—
$
4,494
Hardware
—
123
123
Subscription
—
108
108
Total pharmacy and hardware revenue
4,494
231
4,725
Service revenue:
Software
—
41
41
Maintenance and support
—
40
40
Installation
—
12
12
Professional services and other
—
212
212
Total service revenue
—
305
305
Total revenue
4,494
536
5,030
Cost of products sold and services
4,435
422
4,857
Segment gross profit
59
$
114
173
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 June 30,
2022
2021
Net loss
$
(11,718
)
$
(10,464
)
Adjustments to calculate EBITDA:
Interest income
—
(27
)
Interest expense
276
66
Income tax expense
24
—
Depreciation and amortization (1)
485
392
EBITDA
$
(10,933
)
$
(10,033
)
Adjustments as follows:
Share-based compensation expense
612
323
Adjusted EBITDA
$
(10,321
)
$
(9,710
)
(1) Excludes $169 thousand and $538 thousand in operating lease amortization for the three months ended June 30, 2022, and 2021, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005662/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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