Apria, Inc. (the “Company” or “Apria”) (Nasdaq: APR), a leading
provider of integrated home healthcare equipment and related
services in the United States, announced today financial results
for the second quarter ended June 30, 2021.
“We delivered another strong quarter as our second quarter 2021
financial results were ahead of our expectations on all three of
our key metrics, achieving organic net revenue growth of over 6.0%
as compared to the prior year quarter,” said Dan Starck, CEO of
Apria. “On July 30, we signed a definitive agreement to acquire
Airway Breathing Co., a provider of respiratory care services,
sleep equipment and supplies, and durable medical equipment. This
acquisition enhances our presence in some attractive markets in
Virginia and strengthens our relationships with the local health
care systems. We continue to have a robust active pipeline and we
expect to see more strategic M&A opportunities throughout the
remainder of the year.”
Mr. Starck continued, “As most of you are aware, in mid-June,
Philips/Respironics issued a product recall for a large portion of
their CPAPs, BiPaps and ventilators. The recall has created
significant disruption in the industry, and when coupled with the
component shortages being experienced by other manufacturers, the
availability of equipment to support newly diagnosed sleep and
ventilation patients may be limited. The Apria team has done an
excellent job managing the complexities of the recall, and our
entire organization continues to execute at a high level to help
deliver the highest quality of care and service to our patients
which positions us well to drive future growth.”
Second Quarter Financial Highlights
Comparisons are to the three months ended June 30, 2020.
- Net revenue of $286.3 million, up
6.4% compared to $268.9 million
- Net Income of $20.6 million, or
$0.54 per diluted share, up 153.1% from $8.1 million
- Adjusted EBITDA of $64.4 million, up
15.5% compared to $55.7 million
- Adjusted EBITDA less Patient
Equipment Capex of $44.1 million, up 2.2% from $43.1 million
2021 Financial Guidance
For the third quarter of 2021, Apria is currently projecting the
following financial results:
- Net revenue of $282 million to $290
million
- Adjusted EBITDA of $57 million to
$61 million
- Adjusted EBITDA less Patient
Equipment Capex of $35 million to $38 million
For the full year 2021, Apria is increasing guidance and is now
projecting the following financial results:
- Net revenue of $1.12 billion to
$1.15 billion; up from $1.12 billion to $1.14 billion
- Adjusted EBITDA of $221 million to
$231 million; up from $207 million to $216 million
- Adjusted EBITDA less Patient
Equipment Capex of $132 million to $142 million; up from $113
million to $120 million
Conference Call
Apria will host a conference call to discuss second quarter 2021
results on August 5, 2021 at 5:00 p.m. Eastern Time. The conference
call can be accessed by dialing (833) 362-0207 for U.S.
participants or (914) 987-7676 for international participants, and
referencing conference ID 5380517; or via a live audio webcast that
will be available online at https://ir.apria.com/. A replay of the
call will be available via webcast for on-demand listening shortly
after the completion of the call, at the same web link, and will
remain available for approximately 90 days.
About Apria
Apria is a leading provider of integrated home healthcare
equipment and related services in the United States. The Company
offers a comprehensive range of products and services for in-home
care and delivery across three core service lines: (1) home
respiratory therapy (including home oxygen and non-invasive
ventilation (“NIV”) services); (2) obstructive sleep apnea
(“OSA”) treatment (including continuous positive airway pressure
(“CPAP”) and bi-level positive airway pressure devices, and patient
support services); and (3) negative pressure wound therapy
(“NPWT”). Additionally, the Company supplies a wide range of home
medical equipment and other products and services to help improve
the quality of life for patients with home care needs. Our revenues
are generated through fee-for-service and capitation arrangements
with third-party healthcare payors, including government and
commercial payors for equipment, supplies, services and other items
we rent or sell to patients. Through our offerings, we also provide
patients with a variety of clinical and administrative support
services and related products and supplies, most of which are
prescribed by a physician as part of a care plan. We are focused on
being the industry’s highest-quality provider of home healthcare
equipment and related services, while maintaining our commitment to
being a low-cost operator. The Company serves over 2 million
patients annually and offers a compelling value proposition to
patients, providers and payors by allowing patients to receive
necessary care and services in the comfort of their own home,
while, at the same time, reducing the costs of treatment. Learn
more at www.apria.com.
This press release includes certain historical consolidated
financial and other data for Apria Healthcare Group LLC (formerly
known as Apria Healthcare Group Inc.) (“Apria Healthcare Group”)
and its subsidiaries. In connection with our initial public
offering (“IPO” or “offering”), we undertook certain reorganization
transactions as of February 10, 2021 so that Apria, Inc. directly
or indirectly owns all of the equity interests in Apria Healthcare
Group and is the holding company of our business. The merger was
accounted for as a reorganization of entities under common control.
As a result, the consolidated financial statements of the Company
recognize the assets and liabilities received in the merger at
their historical carrying amounts as reflected in the historical
consolidated financial statements of Apria Healthcare Group, the
accounting predecessor.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements include, but are not limited to,
statements regarding our expectations regarding pending or
potential acquisitions, product recalls, and the future performance
and financial results of our business and other non-historical
statements. Forward-looking statements include all statements that
do not relate solely to historical or current facts. In some cases,
you can identify these forward-looking statements by the use of
words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,”
“intends,” “trends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties, including, among others, risks related to the
COVID-19 public health emergency, product and related recalls, the
profitability of our capitation arrangements, renegotiation or
termination of our contracts, reimbursements by payors, our
reliance on relatively few vendors, competition in the home
healthcare industry, the inherent risk of liability in the
provision of healthcare services, and reductions in Medicare and
Medicaid and commercial payor reimbursement rates. Additional
factors that could cause our actual outcomes or results to differ
materially from those described in the forward-looking statements
can be found in the “Risk Factors" section of the Company’s Annual
Report on Form 10-K for the period ended December 31, 2020, and in
its other filings with the Securities and Exchange Commission
(“SEC”). Additional information will also be set forth in Apria’s
Quarterly Report on Form 10-Q for the period ended June 30, 2021,
which is expected to be filed on or about the date of this press
release. These reports are or will be accessible on the SEC’s
website at www.sec.gov. These factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included in this press release and
in the Company’s filings with the SEC. We undertake no obligation
to publicly update or review any forward-looking statement, whether
as a result of new information, future developments or otherwise,
except as required by law.
Use of
Non-GAAP Financial
Information and
Financial Guidance
This press release contains certain financial measures that are
not recognized under generally accepted accounting principles in
the United States (“GAAP”). The Company uses EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex, which are
financial measures that are not prepared in accordance with GAAP,
to analyze its financial results and believes that they are useful
to investors, as a supplement to GAAP measures.
EBITDA is a non-GAAP measure that represents net income for the
period before the impact of interest income, interest expense,
income taxes, and depreciation and amortization. EBITDA is widely
used by securities analysts, investors and other interested parties
to evaluate the profitability of companies. EBITDA eliminates
potential differences in performance caused by variations in
capital structures, tax positions, the cost and age of tangible
assets and the extent to which intangible assets are identifiable.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA before
certain items that impact comparison of the performance of our
business either period-over-period or with other businesses. The
Company uses Adjusted EBITDA as a key profitability measure to
assess the performance of our business. We believe that Adjusted
EBITDA should, therefore, be made available to securities analysts,
investors and other interested parties to assist in their
assessment of the performance of our business. Adjusted EBITDA less
Patient Equipment Capex is a non-GAAP measure that represents
Adjusted EBITDA less purchases of patient equipment net of
dispositions (“Patient Equipment Capex”). For purposes of this
metric, Patient Equipment Capex is measured as the value of the
patient equipment received less the net book value of dispositions
of patient equipment during the accounting period. This metric is
useful in evaluating the financial performance of the Company as
the business requires significant capital expenditures to maintain
its patient equipment fleet due to asset replacement and
contractual commitments. The Company believes that Adjusted EBITDA
less Patient Equipment Capex should, therefore, be made available
to securities analysts, investors, and other interested parties to
assist in their assessment of the performance of our business.
Reconciliations of historical EBITDA, Adjusted EBITDA and
Adjusted EBITDA less Patient Equipment Capex to our net income, the
most directly comparable financial measure calculated and presented
in accordance with GAAP, are included in the tables attached to
this press release. EBITDA, Adjusted EBITDA and Adjusted EBITDA
less Patient Equipment Capex should not be considered alternatives
to net income or any other measure of financial performance
calculated and presented in accordance with GAAP. EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex may not be
comparable to similarly titled measures of other organizations
because other organizations may not calculate EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex in the same
manner as the Company calculates these measures.
The Company’s uses of EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex have limitations as analytical
tools, and you should not consider them in isolation or as a
substitute for analysis of our results as reported under GAAP. Some
of these limitations are:
- although depreciation and amortization are noncash charges, the
assets being depreciated and amortized may have to be replaced in
the future. EBITDA and Adjusted EBITDA do not reflect capital
expenditure requirements for such replacements or other contractual
commitments;
- EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex do not reflect changes in, or cash requirements
for, our working capital needs;
- EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex do not reflect the interest expense or the cash
requirements necessary to service interest or principal payments on
our indebtedness; and
- other companies, including companies in our industry, may
calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex measures differently, which reduces their
usefulness as a comparative measure.
EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex exclude items that can have a significant effect on
profit or loss and should, therefore, be used in conjunction with,
not as substitutes for, profit or loss for the period. The Company
compensates for these limitations by separately monitoring net
income for the period.
There is no reliable or reasonably estimable comparable GAAP
measure for the Company’s non-GAAP financial guidance because the
Company is not able to reliably predict the impact of certain
items, including equity-based compensation expense, transaction
costs, and other non-recurring (income) expense for the third
quarter in 2021 and the full year 2021. As a result, reconciliation
of these forward-looking non-GAAP measures to the most directly
comparable GAAP measure is not available without unreasonable
effort. In addition,
the Company
believes such a reconciliation would imply a degree of precision
and certainty that could be confusing to investors. The variability
of the specified items may have a significant and unpredictable
impact on the Company’s future GAAP results.
In addition, the Company’s non-GAAP financial guidance in this
release excludes the impact of any potential additional future
strategic acquisitions and any specified items that have not yet
been identified and quantified. The guidance also excludes
macro-economic effects due to the COVID-19 pandemic and the Philips
recall that are not yet quantifiable. The financial guidance is
subject to risks and uncertainties applicable to all
forward-looking statements as described elsewhere in this press
release and in the Company’s filings with the SEC.
APRIA, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
(unaudited) |
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
205,944 |
|
|
$ |
195,197 |
|
Accounts receivable |
|
|
77,640 |
|
|
|
74,774 |
|
Inventories |
|
|
6,919 |
|
|
|
6,680 |
|
Prepaid expenses and other current assets |
|
|
27,374 |
|
|
|
24,003 |
|
TOTAL CURRENT ASSETS |
|
|
317,877 |
|
|
|
300,654 |
|
PATIENT EQUIPMENT, less
accumulated depreciation of $355,184 and $356,888 as of June 30,
2021 and December 31, 2020, respectively |
|
|
216,869 |
|
|
|
223,972 |
|
PROPERTY, EQUIPMENT AND
IMPROVEMENTS, NET |
|
|
24,553 |
|
|
|
25,419 |
|
INTANGIBLE ASSETS, NET |
|
|
61,209 |
|
|
|
61,497 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
|
58,384 |
|
|
|
57,869 |
|
DEFERRED INCOME TAXES,
NET |
|
|
6,681 |
|
|
|
18,258 |
|
OTHER ASSETS |
|
|
18,482 |
|
|
|
17,315 |
|
TOTAL ASSETS |
|
$ |
704,055 |
|
|
$ |
704,984 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
104,174 |
|
|
$ |
116,886 |
|
Accrued payroll and related taxes and benefits |
|
|
45,251 |
|
|
|
55,628 |
|
Other accrued liabilities |
|
|
38,284 |
|
|
|
33,513 |
|
Deferred revenue |
|
|
26,820 |
|
|
|
25,821 |
|
Current portion of operating lease liabilities |
|
|
23,139 |
|
|
|
23,977 |
|
Current portion of long-term debt |
|
|
26,042 |
|
|
|
20,833 |
|
TOTAL CURRENT LIABILITIES |
|
|
263,710 |
|
|
|
276,658 |
|
LONG-TERM DEBT, less current
portion |
|
|
361,277 |
|
|
|
376,389 |
|
OPERATING LEASE LIABILITIES,
less current portion |
|
|
36,812 |
|
|
|
35,358 |
|
OTHER NONCURRENT
LIABILITIES |
|
|
40,583 |
|
|
|
42,924 |
|
TOTAL LIABILITIES |
|
|
702,382 |
|
|
|
731,329 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
|
|
|
|
Preferred stock, $0.01 par value: 100,000,000 authorized; no shares
issued as of June 30, 2021 and February 10, 2021 |
|
|
|
|
|
|
Common stock, $0.01 par value: 1,000,000,000 authorized; 35,256,256
and 35,210,915 shares issued and outstanding as of June 30, 2021
and February 10, 2021, respectively |
|
|
353 |
|
|
|
— |
|
Additional paid-in capital |
|
|
956,632 |
|
|
|
954,087 |
|
Accumulated deficit |
|
|
(955,312 |
) |
|
|
(980,432 |
) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
1,673 |
|
|
|
(26,345 |
) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
$ |
704,055 |
|
|
$ |
704,984 |
|
|
|
|
|
|
|
|
|
|
APRIA, INC.CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(In
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Fee-for-service arrangements |
|
$ |
229,167 |
|
|
$ |
212,822 |
|
|
$ |
447,521 |
|
|
$ |
426,184 |
|
Capitation |
|
|
57,112 |
|
|
|
56,120 |
|
|
|
114,032 |
|
|
|
111,984 |
|
TOTAL NET REVENUES |
|
|
286,279 |
|
|
|
268,942 |
|
|
|
561,553 |
|
|
|
538,168 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Product and supply costs |
|
|
50,599 |
|
|
|
47,307 |
|
|
|
103,914 |
|
|
|
96,371 |
|
Patient equipment depreciation |
|
|
25,159 |
|
|
|
25,655 |
|
|
|
50,885 |
|
|
|
50,736 |
|
Home respiratory therapists costs |
|
|
4,264 |
|
|
|
3,780 |
|
|
|
8,322 |
|
|
|
8,862 |
|
Other |
|
|
4,726 |
|
|
|
4,125 |
|
|
|
8,545 |
|
|
|
9,252 |
|
TOTAL COST OF NET REVENUES |
|
|
84,748 |
|
|
|
80,867 |
|
|
|
171,666 |
|
|
|
165,221 |
|
Selling, distribution and administrative |
|
|
169,275 |
|
|
|
174,793 |
|
|
|
346,563 |
|
|
|
349,436 |
|
TOTAL COSTS AND EXPENSES |
|
|
254,023 |
|
|
|
255,660 |
|
|
|
518,229 |
|
|
|
514,657 |
|
OPERATING INCOME |
|
|
32,256 |
|
|
|
13,282 |
|
|
|
43,324 |
|
|
|
23,511 |
|
Interest expense |
|
|
2,928 |
|
|
|
1,243 |
|
|
|
5,944 |
|
|
|
2,930 |
|
Interest income |
|
|
(36 |
) |
|
|
(87 |
) |
|
|
(91 |
) |
|
|
(378 |
) |
INCOME BEFORE INCOME TAXES |
|
|
29,364 |
|
|
|
12,126 |
|
|
|
37,471 |
|
|
|
20,959 |
|
Income tax expense |
|
|
8,788 |
|
|
|
3,997 |
|
|
|
12,351 |
|
|
|
6,391 |
|
NET INCOME |
|
$ |
20,576 |
|
|
$ |
8,129 |
|
|
$ |
25,120 |
|
|
$ |
14,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three |
|
|
|
|
February 10, 2021 |
|
|
|
|
|
|
Months Ended |
|
|
|
|
through |
|
|
|
|
|
|
June 30, 2021 |
|
|
|
|
June 30, 2021 |
|
|
|
Basic and diluted earnings per
share: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ |
20,576 |
|
|
|
|
|
$ |
23,581 |
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
35,238,773 |
|
|
|
|
|
|
35,228,894 |
|
|
|
|
Diluted |
|
|
38,067,371 |
|
|
|
|
|
|
37,980,369 |
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.58 |
|
|
|
|
|
$ |
0.67 |
|
|
|
|
Diluted |
|
$ |
0.54 |
|
|
|
|
|
$ |
0.62 |
|
|
|
|
____________ |
(1) |
Prior to our IPO, our business was conducted through Apria
Healthcare Group which did not have a common capital structure with
Apria, Inc. As such, we computed EPS for the period the Company’s
common stock was outstanding during 2021, referred to as the
Post-IPO period. We have defined the Post-IPO period as February
10, 2021, the effective date of the pre-IPO reorganization, through
June 30, 2021. |
APRIA, INC.NET
REVENUES FOR EACH CORE SERVICE LINE (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in
thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Home respiratory therapy |
|
$ |
116,005 |
|
$ |
111,531 |
|
$ |
230,328 |
|
$ |
221,282 |
OSA treatment |
|
|
121,479 |
|
|
109,649 |
|
|
235,664 |
|
|
218,984 |
NPWT |
|
|
10,273 |
|
|
9,631 |
|
|
20,384 |
|
|
19,790 |
Other equipment and
services |
|
|
38,522 |
|
|
38,131 |
|
|
75,177 |
|
|
78,112 |
Net revenues |
|
$ |
286,279 |
|
$ |
268,942 |
|
$ |
561,553 |
|
$ |
538,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
APRIA, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
(in
thousands) |
|
2021 |
|
|
2020 |
|
Net cash provided by operating activities |
|
$ |
82,635 |
|
|
$ |
84,598 |
|
Net cash used in investing
activities |
|
|
(53,865 |
) |
|
|
(46,354 |
) |
Net cash used in financing
activities |
|
|
(18,023 |
) |
|
|
(13,189 |
) |
Net decrease in cash and cash
equivalents |
|
|
10,747 |
|
|
|
25,055 |
|
Cash and cash equivalents at
beginning of period |
|
|
195,197 |
|
|
|
74,691 |
|
Cash and cash equivalents at
end of period |
|
$ |
205,944 |
|
|
$ |
99,746 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial InformationThis press
release presents Apria’s EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex for the three and six months
ended June 30, 2021 and 2020.
EBITDA is a non-GAAP measure that represents net income for the
period before the impact of interest income, interest expense,
income taxes, and depreciation and amortization.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA
before certain items that impact comparison of the performance of
our business either period-over-period or with other
businesses.
Adjusted EBITDA less Patient Equipment Capex is a non-GAAP
measure that represents Adjusted EBITDA less purchases of patient
equipment net of dispositions (“Patient Equipment Capex”). For
purposes of this metric, Patient Equipment Capex is measured as the
value of the patient equipment received less the net book value of
dispositions of patient equipment during the accounting period.
Below, we have provided a reconciliation of EBITDA, Adjusted
EBITDA and Adjusted EBITDA less Patient Equipment Capex to our net
income, the most directly comparable financial measure calculated
and presented in accordance with GAAP. EBITDA, Adjusted EBITDA and
Adjusted EBITDA less Patient Equipment Capex should not be
considered alternatives to net income or any other measure of
financial performance calculated and presented in accordance with
GAAP. Our EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex may not be comparable to similarly titled measures
of other organizations because other organizations may not
calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient
Equipment Capex in the same manner as we calculate these
measures.
The following table reconciles net income, the most directly
comparable GAAP measure, to EBITDA, Adjusted EBITDA and Adjusted
EBITDA less Patient Equipment Capex:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
(in thousands) |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Net income |
|
$ |
20,576 |
|
|
$ |
8,129 |
|
|
|
$ |
25,120 |
|
|
$ |
14,568 |
|
Interest expense, net |
|
|
2,892 |
|
|
|
1,156 |
|
|
|
|
5,853 |
|
|
|
2,552 |
|
Income tax expense |
|
|
8,788 |
|
|
|
3,997 |
|
|
|
|
12,351 |
|
|
|
6,391 |
|
Depreciation and
amortization |
|
|
28,972 |
|
|
|
29,544 |
|
|
|
|
58,585 |
|
|
|
58,191 |
|
EBITDA |
|
$ |
61,228 |
|
|
$ |
42,826 |
|
|
|
$ |
101,909 |
|
|
$ |
81,702 |
|
Strategic transformation
initiatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Simplify(a) |
|
$ |
— |
|
|
$ |
787 |
|
|
|
$ |
— |
|
|
$ |
837 |
|
Financial system(b) |
|
|
382 |
|
|
|
547 |
|
|
|
|
741 |
|
|
|
1,063 |
|
Other initiatives(c) |
|
|
39 |
|
|
|
12 |
|
|
|
|
39 |
|
|
|
45 |
|
Stock-based compensation
one-time award at IPO(d) |
|
|
491 |
|
|
|
— |
|
|
|
|
2,440 |
|
|
|
— |
|
Stock-based
compensation(e) |
|
|
1,526 |
|
|
|
749 |
|
|
|
|
2,295 |
|
|
|
1,323 |
|
Legal settlements(f) |
|
|
— |
|
|
|
10,800 |
|
|
|
|
1,750 |
|
|
|
12,800 |
|
Offering costs(g) |
|
|
685 |
|
|
|
— |
|
|
|
|
3,452 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
64,351 |
|
|
$ |
55,721 |
|
|
|
$ |
112,626 |
|
|
$ |
97,770 |
|
Patient Equipment Capex |
|
|
(20,250 |
) |
|
|
(12,588 |
) |
|
|
|
(43,782 |
) |
|
|
(37,057 |
) |
Adjusted EBITDA less
Patient Equipment Capex |
|
$ |
44,101 |
|
|
$ |
43,133 |
|
|
|
$ |
68,844 |
|
|
$ |
60,713 |
|
____________ |
(a) |
Simplify represents one-time advisory fees and implementation costs
associated with a key 2019 business transformation initiative
focused on shifting to a patient-centric platform and optimizing
end-to-end customer service. |
(b) |
Costs associated with the implementation of a new financial
system. |
(c) |
Other initiatives include one-time costs associated with customer
service initiatives and costs associated with moving the corporate
headquarters. |
(d) |
The offering resulted in a one-time restricted stock unit (“RSU”)
grant to the Company’s Chief Financial Officer (“CFO”). The RSUs
vest in tranches and are classified as liability awards since each
tranche of RSUs can be settled in either cash or shares of our
common stock at the CFO’s election. The first tranche of RSUs
vested upon completion of the IPO and was settled in cash.
Compensation expense for the remaining tranches is recognized over
the requisite service period subject to continued employment and
adjusted each reporting period for changes in the fair value
pro-rated for the portion of the requisite service period rendered
until settlement. |
(e) |
Stock-based compensation has historically been granted to certain
of our employees and non-employee directors in the form of profit
interest units of Apria Holdings LLC, RSUs, performance-based RSUs,
and SARs. For time-based only RSUs and SARs, compensation expense
for each separately vesting portion of the award is recognized on a
straight-line basis over the vesting period for that portion of the
award subject to continued service. For RSUs with performance
conditions, compensation expense is recognized over the requisite
service period subject to management’s estimation of the
probability of vesting of such awards. Stock compensation also
includes expense related to the Company’s long-term incentive plan
which will be settled in stock. |
(f) |
In 2021, the amount represents the final settlement amount of a
claim brought under the Private Attorneys General Act of
California. In 2020, the amount represents the increase in the
settlement amount in relation to a series of civil investigative
demands from the United States Attorney’s Office for the Southern
District of New York. |
(g) |
Offering costs represent one-time costs relating to our IPO and
follow-on offering. As the Company did not receive any proceeds
from the offerings, these costs were expensed as incurred in
SD&A expenses in the unaudited condensed consolidated
statements of income. |
Investor Contacts
Kevin EllichWestwicke
ApriaIR@westwicke.com
Media Contacts
ApriaPR@westwicke.com
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