NASHVILLE, Tenn., Feb. 24, 2022 /PRNewswire/ -- Tivity Health, Inc.
(Nasdaq:TVTY) (the "Company"), a leading provider of healthy
life-changing solutions, including SilverSneakers®,
today announced financial results for the fourth quarter and year
ended December 31, 2021.
Richard Ashworth, President and
Chief Executive Officer, commented, "We are pleased with our
financial and operational performance in 2021 supported by strength
in both in-person visits and our virtual fitness offerings.
Our new mental enrichment and social connection programs for
SilverSneakers members are further evidence of our ability to
deliver on our strategic roadmap to offer members additional, more
personalized pathways to happier, healthier, more connected lives.
We are excited about our growth prospects in 2022 as we
anticipate an increase in eligible lives and further momentum
across our in-person fitness and digital initiatives – all
supported by our leading SilverSneakers brand, strong customer
relationships, commitment to innovation, and world-class team."
Fourth Quarter and Full Year Financial Highlights
- Revenue from continuing operations increased 26.0% in the
fourth quarter of 2021 to $126.8
million, compared to the prior year;
- Revenue from continuing operations increased 9.9% in 2021 to
$481.3 million, compared to the prior
year;
- Income from continuing operations increased 88.8% in 2021 to
$107.4 million for 2021, compared to
the prior year;
- Adjusted EBITDA from continuing operations increased 6.8% in
2021 to $158.1 million for 2021,
compared to the prior year; and
- The Company ended the year with cash on hand of $60.1 million and a leverage ratio of 1.94x, as
calculated under its credit agreement, compared to 2.36x as of
December 31, 2020.
Strategic and Operational Updates
- In-person visits totaled 58.4 million for 2021, compared to
46.0 million in the prior year, and 16.5 million for the fourth
quarter of 2021, compared to 9.3 million in the prior year;
- Virtual visits were 3.4 million in 2021, an increase of over
100% compared to the prior year;
- Virtual fitness new member activation continued to accelerate,
with 48% of participants in 2021 being new to SilverSneakers;
- New credit facilities in June
2021 increased the Company's financial flexibility; and
- The Company's Board of Directors authorized a $100 million share repurchase program in
September 2021.
Fourth Quarter and Full Year 2021 Financial
Information
Dollars in millions, except per-share data
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Revenues from
Continuing Operations
|
$126.8
|
$100.6
|
|
$481.3
|
$437.7
|
Income from
Continuing Operations (1)
|
($25.0)
|
$14.6
|
|
$107.4
|
$56.9
|
Income from
Continuing Operations Margin (1)
|
(19.7%)
|
14.6%
|
|
22.3%
|
13.0%
|
Adjusted EBITDA from
Continuing Operations (2)
|
$34.9
|
$35.4
|
|
$158.1
|
$148.1
|
Adjusted EBITDA from
Continuing Operations Margin (2)
|
27.5%
|
35.2%
|
|
32.8%
|
33.8%
|
Diluted Earnings Per
Share from Continuing Operations (1)
|
($0.50)
|
$0.29
|
|
$2.13
|
$1.16
|
Adjusted Diluted
Earnings Per Share from Continuing
Operations (2)
|
$0.30
|
$0.39
|
|
$1.60
|
$1.46
|
Cash Flows from
Operating Activities – former Healthcare
segment (3)
|
$21.9
|
$8.4
|
|
$87.1
|
$93.4
|
Free Cash Flow –
former Healthcare segment (2) (3)
|
$12.1
|
$5.8
|
|
$68.4
|
$83.2
|
|
|
(1)
|
Results for the three
months ended December 31, 2021 include an unrealized loss of $41.4
million related to the Company's equity
ownership in Sharecare. Results for the year ended December 31,
2021 include unrealized and realized gains of $39.2 million and
$2.5
million, respectively, related to the Company's equity ownership in
Sharecare.
|
(2)
|
Adjusted EBITDA from
continuing operations, adjusted EBITDA from continuing operations
margin, adjusted earnings per diluted
share from continuing operations, and free cash flow are non-GAAP
financial measures. See pages 10-14 for a reconciliation of
non-
GAAP financial measures.
|
(3)
|
For comparability,
figures for 2020 represent cash flows from the Company's former
Healthcare segment.
|
Revenues in the fourth quarter of 2021 of $126.8 million increased by $26.2 million, or approximately 26%, compared to
the fourth quarter of 2020, primarily due to continued recovery
from the COVID-19 pandemic. SilverSneakers revenue of
$96.4 million increased by
$22.2 million primarily due to an
increase in revenue-generating visits, and Prime Fitness revenue of
$24.1 million increased by
$2.6 million.
Income (loss) from continuing operations for the fourth quarter
of 2021 was ($25.0) million, a
decrease of $39.7 million compared to
the fourth quarter of 2020. The results for the fourth
quarter of 2021 reflect non-cash unrealized losses of $41.4 million related to the Company's equity
ownership in Sharecare, based on fluctuations in Sharecare's stock
price.
Adjusted EBITDA from continuing operations was $34.9 million for the fourth quarter of
2021, or 27.5% of revenues, compared to $35.4 million for the fourth quarter of 2020, or
35.2% of revenues. The decrease in adjusted EBITDA as a
percentage of revenues is primarily due to a lower mix of revenues
from per-member-per-month fees for SilverSneakers coupled with an
increase in fitness location visit costs for SilverSneakers and
Prime Fitness due to an increase in participation levels.
As of December 31, 2021 net debt
(total debt less cash and cash equivalents) was $320.4 million, resulting in a net leverage
ratio of 1.94. The Company's next quarterly mandatory debt
amortization payment of $1 million is
due in March 2023. During the fourth
quarter of 2021, the Company repurchased approximately 30,000
shares of its common stock.
2022 Financial Guidance
Tivity Health announced today the following financial
guidance for continuing operations for fiscal 2022:
Dollars in
millions, except per-share data
|
|
|
Year
Ending
December 31,
2022
|
|
|
Revenues
|
$540 -
$580
|
Income from
Continuing Operations (1)
|
$86.6 -
$90.3
|
Adjusted EBITDA
(2)
|
$161 -
$166
|
Depreciation
Expense
|
Approximately
$14
|
Interest
Expense
|
Approximately
$27,
including $3
non-cash
|
Effective Tax
Rate
|
Approximately
26%
|
Weighted Average
Diluted Shares
Outstanding (1)
|
50.5 million –
51.0 million
|
Earnings per Diluted
Share (1)
|
$1.70 -
$1.79
|
Adjusted Earnings per
Diluted Share (1) (2)
|
$1.75 -
$1.84
|
Cash Flows from
Operating Activities (1)
|
$102 -
$107
|
Free Cash Flow
(2)
|
$77 - $87
|
Capital
Expenditures
|
$15 - $20
|
Tivity Health's detailed guidance considerations for 2022 are
available in the supplemental information posted on the Company's
website at http://investors.tivityhealth.com.
|
|
(1)
|
2022 guidance
excludes the impact of (i) unrealized gains or losses related to
changes in the fair value of the Company's equity
ownership in Sharecare, (ii) any potential disposition of the
Company's equity ownership in Sharecare, (iii) unrealized gains or
losses
related to certain interest rate swap agreements that do not
qualify for hedge accounting treatment, and (iv) any potential
share
repurchases made by the Company.
|
(2)
|
Adjusted EBITDA,
adjusted earnings per diluted share, and free cash flow are
non-GAAP financial measures. Free cash flow guidance
excludes any impact from proceeds from the potential sale of equity
securities. See pages 10-14 for a reconciliation of
non-GAAP
financial measures.
|
Conference Call
Tivity Health will hold a conference call to discuss this
release today at 5:00 p.m. Eastern
Time. Investors will have the opportunity to listen to
the conference call live by dialing 844-200-6205 or 929-526-1599
for international callers, and referencing code 065359 or over the
Internet by going to www.tivityhealth.com and clicking "Investors"
at least 15 minutes early to register, download, and install any
necessary audio software. For those who cannot listen to the live
broadcast, a telephonic replay will be available for one week at
866-813-9403 or +44 204-525-0658 for international callers, code
699266, and the replay will also be available on the Company's web
site for the next 7 days.
About Tivity Health
Tivity Health® Inc. (Nasdaq: TVTY) is a leading
provider of healthy life-changing solutions, including
SilverSneakers®, Prime® Fitness and
WholeHealth Living®. We help adults improve their health
and support them on life's journey by providing access to in-person
and virtual physical activity, social, and mental enrichment
programs, as well as a full suite of physical medicine and
integrative health services. We continue to enhance the way we
direct members along their journey to better health by delivering
an insights-driven, personalized, interactive experience. Our suite
of services support health plans nationwide as they seek to reduce
costs and improve health outcomes. At Tivity Health, we deliver the
resources members need to live healthier, happier, more
connected lives. Learn more at www.tivityhealth.com.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
Reconciliations of certain of these non-GAAP measures to the
comparable GAAP measures are included on pages
10-14.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain statements that are
"forward-looking" statements within the meaning of the federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements are based
upon current expectations and include all statements that are not
historical statements of fact and those regarding the intent,
belief or expectations, including, without limitation, statements
that are accompanied by words such as "will," "expect," "outlook,"
"anticipate," "intend," "plan," "believe," "seek," "see," "would,"
"target," or other similar words, phrases or expressions and
variations or negatives of these words. These forward-looking
statements include, but are not limited to, the Company's
statements regarding its future financial performance and financial
condition. Readers of this press release should understand
that these statements are not guarantees of performance or
results. Many risks and uncertainties could affect actual
results and cause them to vary materially from the forward-looking
statements.
These risks and uncertainties include, among other things:
impacts from the COVID-19 pandemic (including the response of
governmental authorities to combat and contain the pandemic; the
development, availability, distribution, and effectiveness of
vaccines and treatments, and public confidence in such vaccines and
treatments; the closure of fitness centers in the Company's
national network (or operational restrictions imposed on such
fitness centers), reclosures, and potential additional reclosures
or restrictions as a result of surges in positive COVID-19 cases)
on the Company's business, operations or liquidity; the risks
associated with changes in macroeconomic conditions (including the
impacts of any recession or changes in consumer spending resulting
from the COVID-19 pandemic), widespread epidemics, pandemics (such
as the current COVID-19 pandemic, including variant strains of
COVID-19) or other outbreaks of disease, geopolitical turmoil, and
the continuing threat of domestic or international terrorism; the
Company's ability to collect accounts receivable from its customers
and amounts due under its sublease agreements; the market's
acceptance of the Company's new products and services; the
Company's ability to develop and implement effective strategies and
to anticipate and respond to strategic changes, opportunities, and
emerging trends in its industry and/or business, as well as to
accurately forecast the related impact on its revenues and
earnings; the impact of any impairment of the Company's goodwill,
intangible assets, or other long-term assets; changes in fair value
of the Company's equity ownership in Sharecare and the expected
timing and amount of cash proceeds from any potential disposition
of this holding; the expected timing, amount, and impact of any
share repurchases made by the Company; the Company's ability to
attract, hire, or retain key personnel or other qualified employees
and to control labor costs; the Company's ability to effectively
compete against other entities, whose financial, research, staff,
and marketing resources may exceed the Company's resources; the
impact of legal proceedings involving the Company and/or its
subsidiaries, products, or services, including any claims related
to intellectual property rights, as well as the Company's ability
to maintain insurance coverage with respect to such legal
proceedings and claims on terms that would be favorable to the
Company; the impact of severe or adverse weather conditions, the
current COVID-19 pandemic (including variant strains of COVID-19),
and the potential emergence of additional health pandemics or
infectious disease outbreaks on member participation in the
Company's programs; the risks associated with the Company deriving
a significant concentration of its revenues from a limited number
of our customers, many of whom are health plans; the Company's
ability and/or the ability of its customers to enroll participants
and to accurately forecast their level of enrollment and
participation in its programs in a manner and within the timeframe
it anticipates; the Company's ability to sign, renew and/or
maintain contracts with its customers and/or its fitness partner
locations under existing terms or to restructure these contracts on
terms that would not have a material negative impact on the
Company's results of operations; the ability of the Company's
health plan customers to maintain the number of covered lives
enrolled in those health plans during the terms of the Company's
agreements; the Company's ability to add and/or retain active
subscribers in its Prime Fitness program; the impact of any changes
in tax rates, enactment of new tax laws, revisions of tax
regulations, or any claims or litigation with taxing authorities;
the impact of a reduction in Medicare Advantage health plan
reimbursement rates or changes in plan design; the impact of any
new or proposed legislation, regulations and interpretations
relating to Medicare, Medicare Advantage, Medicare Supplement and
privacy and security laws; the impact of healthcare reform on the
Company's business; the risks associated with increased focus from
investors and other stakeholders regarding ESG practices, which
could result in additional costs, regulation, or risks and
adversely impact the Company's reputation, employee recruiting and
retention, and willingness of customers and suppliers to do
business with the Company; the risks associated with potential
failures of the Company's information systems or those of its
third-party vendors, including as a result of telecommuting issues
associated with personnel working remotely, which may include a
failure to execute on policies and processes in a work-from-home or
remote model; the risks associated with data privacy or security
breaches, computer hacking, network penetration and other illegal
intrusions of the Company's information systems or those of
third-party vendors or other service providers, including those
risks that result from the increase in personnel working remotely,
which may result in unauthorized access by third parties, loss,
misappropriation, disclosure or corruption of customer, employee or
our information, or other data subject to privacy laws and may lead
to a disruption in the Company's business, costs to modify,
enhance, or remediate its cybersecurity measures, enforcement
actions, fines or litigation against the Company, or damage to its
business reputation; the risks associated with changes to
traditional office-centered business processes and/or conducting
operations out of the office in a work-from-home or remote model by
the Company or its third-party vendors during adverse situations
(e.g., during a crisis, disaster, or pandemic), which may result in
additional costs and/or may negatively impact productivity and
cause other disruptions to the Company's business; the Company's
ability to enforce its intellectual property rights; the risk that
the Company's indebtedness may limit its ability to adapt to
changes in the economy or market conditions, expose it to interest
rate risk for the variable rate indebtedness and require a
substantial portion of cash flows from operations to be dedicated
to the payment of indebtedness; the Company's ability to service
its debt, make principal and interest payments as those payments
become due, and remain in compliance with its debt covenants; the
Company's ability to obtain adequate financing to provide the
capital that may be necessary to support its current or future
operations; counterparty risk associated with the Company's
interest rate swap agreements and changes in fair value of certain
interest rate swap agreements that no longer qualify for hedge
accounting treatment; and other risks detailed in the Company's
filings with the Securities and Exchange Commission.
For additional information about factors that could cause actual
results to differ materially from those described in the
forward-looking statements, please refer to the Company's filings
with the SEC. Except as required by law, the Company undertakes no
obligation to update any such forward-looking statements to reflect
new information, subsequent events or circumstances.
Investor Relations Contact:
Matt Milanovich, VP, Investor
Relations and FP&A; (602) 562-2595;
matt.milanovich@tivityhealth.com
TIVITY HEALTH,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share data)
|
(Unaudited)
|
|
|
|
December
31,
2021
|
|
|
December
31,
2020
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
60,132
|
|
|
$
|
100,385
|
|
Accounts receivable,
net
|
|
|
62,730
|
|
|
|
25,981
|
|
Prepaid
expenses
|
|
|
6,465
|
|
|
|
5,556
|
|
Income taxes
receivable
|
|
|
3,095
|
|
|
|
10,996
|
|
Investment in equity
securities
|
|
|
49,746
|
|
|
|
—
|
|
Other current
assets
|
|
|
13,733
|
|
|
|
11,336
|
|
Total current
assets
|
|
|
195,901
|
|
|
|
154,254
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of
$44,229
and $38,188 respectively
|
|
|
25,247
|
|
|
|
20,959
|
|
Right-of-use
assets
|
|
|
10,695
|
|
|
|
18,139
|
|
Long-term deferred
tax asset
|
|
|
—
|
|
|
|
3,601
|
|
Intangible assets,
net
|
|
|
29,049
|
|
|
|
29,049
|
|
Goodwill,
net
|
|
|
334,680
|
|
|
|
334,680
|
|
Investment in equity
securities, long-term
|
|
|
—
|
|
|
|
10,773
|
|
Other
assets
|
|
|
2,969
|
|
|
|
7,528
|
|
Total
assets
|
|
$
|
598,541
|
|
|
$
|
578,983
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
25,325
|
|
|
$
|
19,741
|
|
Accrued salaries and
benefits
|
|
|
11,825
|
|
|
|
8,949
|
|
Accrued
liabilities
|
|
|
28,270
|
|
|
|
18,424
|
|
Deferred
revenue
|
|
|
3,371
|
|
|
|
4,460
|
|
Current portion of
long-term debt
|
|
|
—
|
|
|
|
7,456
|
|
Current portion of
lease liabilities
|
|
|
8,007
|
|
|
|
8,052
|
|
Current portion of
other long-term liabilities
|
|
|
10,625
|
|
|
|
14,753
|
|
Total current
liabilities
|
|
|
87,423
|
|
|
|
81,835
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
380,504
|
|
|
|
459,250
|
|
Long-term lease
liabilities
|
|
|
3,487
|
|
|
|
11,494
|
|
Long-term deferred
tax liability
|
|
|
3,183
|
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
5,037
|
|
|
|
22,748
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock $.001
par value, 5,000,000 shares authorized, none
outstanding
|
|
|
—
|
|
|
|
—
|
|
Common Stock $.001
par value, 120,000,000 shares authorized,
49,800,756 and 48,983,735 shares outstanding,
respectively
|
|
|
50
|
|
|
|
49
|
|
Additional paid-in
capital
|
|
|
514,461
|
|
|
|
513,263
|
|
Accumulated
deficit
|
|
|
(359,171)
|
|
|
|
(464,085)
|
|
Treasury stock, at
cost, 2,254,953 shares in treasury
|
|
|
(28,182)
|
|
|
|
(28,182)
|
|
Accumulated other
comprehensive loss
|
|
|
(8,251)
|
|
|
|
(17,389)
|
|
Total stockholders'
equity
|
|
|
118,907
|
|
|
|
3,656
|
|
Total liabilities and
stockholders' equity
|
|
$
|
598,541
|
|
|
$
|
578,983
|
|
|
|
|
|
|
|
|
|
|
TIVITY HEALTH,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)(In thousands, except earnings
per share data)
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Revenues
|
|
$
|
126,808
|
|
|
$
|
100,617
|
|
|
$
|
481,252
|
|
|
$
|
437,714
|
|
|
Cost of revenue
(exclusive of depreciation of $2,920,
$2,633,
$10,662 and $9,209, respectively included
below)
|
|
|
77,819
|
|
|
|
53,816
|
|
|
|
278,252
|
|
|
|
250,362
|
|
|
Marketing
expense
|
|
|
2,545
|
|
|
|
3,198
|
|
|
|
6,529
|
|
|
|
12,197
|
|
|
Selling, general and
administrative expenses
|
|
|
12,007
|
|
|
|
12,118
|
|
|
|
41,991
|
|
|
|
42,765
|
|
|
Depreciation
expense
|
|
|
3,117
|
|
|
|
2,829
|
|
|
|
11,298
|
|
|
|
9,930
|
|
|
Restructuring and
related charges
|
|
|
—
|
|
|
|
1,942
|
|
|
|
—
|
|
|
|
4,358
|
|
|
Operating
income
|
|
|
31,320
|
|
|
|
26,714
|
|
|
|
143,182
|
|
|
|
118,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
7,254
|
|
|
|
10,695
|
|
|
|
34,762
|
|
|
|
43,477
|
|
|
Loss on
extinguishment and modification of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
19,027
|
|
|
|
—
|
|
|
Other (income)
expense, net
|
|
|
39,490
|
|
|
|
226
|
|
|
|
(44,328)
|
|
|
|
226
|
|
|
Total non-operating
expense, net
|
|
|
46,744
|
|
|
|
10,921
|
|
|
|
9,461
|
|
|
|
43,703
|
|
|
Income (loss) before
income taxes
|
|
|
(15,424)
|
|
|
|
15,793
|
|
|
|
133,721
|
|
|
|
74,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
9,614
|
|
|
|
1,151
|
|
|
|
26,345
|
|
|
|
17,530
|
|
|
Income (loss) from
continuing operations
|
|
$
|
(25,038)
|
|
|
$
|
14,642
|
|
|
$
|
107,376
|
|
|
$
|
56,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of
income
tax benefit of $106, $23,676, $844 and
$46,851,
respectively
|
|
|
(308)
|
|
|
|
(26,260)
|
|
|
|
(2,462)
|
|
|
|
(280,500)
|
|
|
Net income
(loss)
|
|
$
|
(25,346)
|
|
|
$
|
(11,618)
|
|
|
$
|
104,914
|
|
|
$
|
(223,631)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.50)
|
|
|
$
|
0.30
|
|
|
$
|
2.17
|
|
|
$
|
1.17
|
|
|
Discontinued
operations
|
|
$
|
(0.01)
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.05)
|
|
|
$
|
(5.75)
|
|
|
Net income (loss)
(1)
|
|
$
|
(0.51)
|
|
|
$
|
(0.24)
|
|
|
$
|
2.12
|
|
|
$
|
(4.59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.50)
|
|
|
$
|
0.29
|
|
|
$
|
2.13
|
|
|
$
|
1.16
|
|
|
Discontinued
operations
|
|
$
|
(0.01)
|
|
|
$
|
(0.53)
|
|
|
$
|
(0.05)
|
|
|
$
|
(5.70)
|
|
|
Net income (loss)
(1)
|
|
$
|
(0.51)
|
|
|
$
|
(0.23)
|
|
|
$
|
2.08
|
|
|
$
|
(4.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
$
|
(21,911)
|
|
|
$
|
1,211
|
|
|
$
|
114,052
|
|
|
$
|
(228,929)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
49,795
|
|
|
|
48,933
|
|
|
|
49,573
|
|
|
|
48,746
|
|
|
Diluted
(1)
|
|
|
49,795
|
|
|
|
49,871
|
|
|
|
50,424
|
|
|
|
49,217
|
|
|
|
|
(1)
|
Figures may not add
due to rounding.
|
(2)
|
The impact of
potentially dilutive securities for the three months ended December
31, 2021 was not
considered because the impact would be anti-dilutive.
|
TIVITY HEALTH,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)(In thousands)
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
107,376
|
|
|
$
|
56,869
|
|
|
Loss from discontinued
operations
|
|
|
(2,462)
|
|
|
|
(280,500)
|
|
|
Adjustments to
reconcile net income (loss) to net cash
provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment
of debt
|
|
|
18,237
|
|
|
|
—
|
|
|
Depreciation and
amortization
|
|
|
11,298
|
|
|
|
45,887
|
|
|
Amortization and
write-off of deferred loan costs
|
|
|
2,973
|
|
|
|
9,190
|
|
|
Amortization and
write-off of debt discount
|
|
|
1,861
|
|
|
|
8,604
|
|
|
Share-based employee
compensation expense
|
|
|
10,060
|
|
|
|
14,077
|
|
|
(Gain) loss on
derivatives
|
|
|
(2,627)
|
|
|
|
14,562
|
|
|
Unrealized gain on
investments in equity securities
|
|
|
(39,232)
|
|
|
|
—
|
|
|
Realized gain on
investments in equity securities
|
|
|
(2,469)
|
|
|
|
—
|
|
|
Impairment of goodwill
and intangible assets of discontinued operation
|
|
|
—
|
|
|
|
199,500
|
|
|
Loss on sale of
Nutrition business
|
|
|
—
|
|
|
|
90,163
|
|
|
Deferred income
taxes
|
|
|
3,649
|
|
|
|
(38,438)
|
|
|
(Increase) decrease in
accounts receivable, net
|
|
|
(36,749)
|
|
|
|
63,239
|
|
|
Changes in income
taxes receivable and payable
|
|
|
7,901
|
|
|
|
(11,401)
|
|
|
(Increase) decrease in
other current assets
|
|
|
(1,549)
|
|
|
|
12,125
|
|
|
Decrease in accounts
payable
|
|
|
(951)
|
|
|
|
(3,182)
|
|
|
Increase in accrued
salaries and benefits
|
|
|
2,876
|
|
|
|
128
|
|
|
Increase (decrease) in
other current liabilities
|
|
|
5,342
|
|
|
|
(18,765)
|
|
|
(Decrease) increase in
deferred revenue
|
|
|
(1,089)
|
|
|
|
686
|
|
|
Other
|
|
|
2,678
|
|
|
|
6,703
|
|
|
Net cash flows
provided by operating activities
|
|
$
|
87,123
|
|
|
$
|
169,447
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
$
|
(14,750)
|
|
|
$
|
(15,525)
|
|
|
Proceeds from sale of
Nutrition business, net of cash transferred
|
|
|
2,747
|
|
|
|
558,067
|
|
|
Proceeds from sale of
equity securities
|
|
|
2,728
|
|
|
|
—
|
|
|
Settlement on
derivatives not designated as hedges
|
|
|
(6,697)
|
|
|
|
(1,499)
|
|
|
Business acquisitions,
net of cash acquired
|
|
|
—
|
|
|
|
—
|
|
|
Net cash flows
provided by (used in) investing activities
|
|
$
|
(15,972)
|
|
|
$
|
541,043
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
$
|
398,000
|
|
|
$
|
196,525
|
|
|
Payments of long-term
debt
|
|
|
(502,275)
|
|
|
|
(795,100)
|
|
|
Deferred loan
costs
|
|
|
(3,953)
|
|
|
|
—
|
|
|
Payments related to
tax withholding for share-based compensation
|
|
|
(8,796)
|
|
|
|
(6,257)
|
|
|
Proceeds from exercise
of stock options
|
|
|
686
|
|
|
|
1,025
|
|
|
Repurchases of common
stock
|
|
|
(751)
|
|
|
|
—
|
|
|
Change in cash
overdraft and other
|
|
|
5,685
|
|
|
|
(8,784)
|
|
|
Net cash flows
provided by (used in) financing activities
|
|
$
|
(111,404)
|
|
|
$
|
(612,591)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
(40,253)
|
|
|
$
|
97,899
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
100,385
|
|
|
|
2,486
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
60,132
|
|
|
$
|
100,385
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
29,465
|
|
|
$
|
71,439
|
|
|
Cash paid for income
taxes, net of refunds
|
|
$
|
13,951
|
|
|
$
|
20,433
|
|
|
TIVITY HEALTH,
INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO GAAP MEASURES
|
(Unaudited)
|
|
|
Reconciliation of
Income from Continuing Operations, GAAP Basis to
|
Adjusted EBITDA
from Continuing Operations, Non-GAAP Basis (in
thousands)
|
|
|
|
|
Three Months
Ended
December 31,
2021
|
|
% of
Revenue
|
|
|
Three Months
Ended
December 31,
2020
|
|
|
% of
Revenue
|
|
Income (loss) from
continuing operations, GAAP
basis
|
|
$
|
(25,038)
|
|
(19.7%)
|
|
|
14,642
|
14.6%
|
|
Income tax
expense
|
|
|
9,614
|
|
|
|
|
1,151
|
|
|
|
|
Interest
expense
|
|
|
7,254
|
|
|
|
|
10,695
|
|
|
|
|
Depreciation
expense
|
|
|
3,117
|
|
|
|
|
2,829
|
|
|
|
|
EBITDA from
continuing operations, non-GAAP
basis (1)
|
|
$
|
(5,053)
|
|
|
|
$
|
29,317
|
|
|
|
|
Acquisition,
integration, project and CEO
transition costs (2)
|
|
|
476
|
|
|
|
|
3,922
|
|
|
|
|
Restructuring charges
(3)
|
|
|
—
|
|
|
|
|
1,942
|
|
|
|
|
Other (income)
expense, net (4)
|
|
|
39,490
|
|
|
|
|
226
|
|
|
|
|
Adjusted EBITDA from
continuing operations,
non-GAAP basis (5)
|
|
$
|
34,913
|
|
27.5%
|
|
$
|
35,407
|
|
|
35.2%
|
|
|
|
|
Year Ended
December 31,
2021
|
|
% of
Revenue
|
|
|
Year Ended
December 31,
2020
|
|
|
% of
Revenue
|
|
Income from
continuing operations, GAAP
basis
|
|
$
|
107,376
|
|
22.3%
|
|
|
56,869
|
|
|
13.0%
|
|
Income tax
expense
|
|
|
26,345
|
|
|
|
|
17,530
|
|
|
|
|
Interest
expense
|
|
|
34,762
|
|
|
|
|
43,477
|
|
|
|
|
Depreciation
expense
|
|
|
11,298
|
|
|
|
|
9,930
|
|
|
|
|
EBITDA from
continuing operations, non-GAAP
basis (1)
|
|
$
|
179,781
|
|
|
|
$
|
127,806
|
|
|
|
|
Acquisition,
integration, project and CEO
transition costs (2)
|
|
|
3,597
|
|
|
|
|
15,691
|
|
|
|
|
Restructuring charges
(3)
|
|
|
—
|
|
|
|
|
4,358
|
|
|
|
|
Loss on extinguishment
and modification of
debt (6)
|
|
|
19,027
|
|
|
|
|
—
|
|
|
|
|
Other (income)
expense, net (4)
|
|
|
(44,328)
|
|
|
|
|
226
|
|
|
|
|
Adjusted EBITDA from
continuing operations,
non-GAAP basis (5)
|
|
$
|
158,077
|
|
32.8%
|
|
$
|
148,081
|
|
|
33.8%
|
|
|
|
(1)
|
EBITDA from
continuing operations is a non-GAAP financial measure. The
Company believes it is useful to investors
to provide disclosures of its operating results and guidance on the
same basis as that used by management. You
should not consider EBITDA from continuing operations in
isolation or as a substitute for income from continuing
operations determined in accordance with U.S. GAAP.
|
(2)
|
Acquisition,
integration, project, and CEO transition costs consist of pre-tax
charges of $476 and $3,922 for the three
months ended December 31, 2021 and 2020, respectively, and $3,597
and $15,691 for the years ended December
31, 2021 and 2020, respectively, primarily incurred in connection
with the acquisition and integration of Nutrisystem
and other strategic projects and with the termination of the
Company's former CEO in February 2020 and the hiring of
a new CEO in June 2020.
|
(3)
|
Restructuring charges
consist of pre-tax charges of (i) $1,942 for the three months ended
December 31, 2020 related
to a reorganization plan to optimize for growth and execute on the
Company's new strategy; and (ii) $4,358 for the
year ended December 31, 2020, primarily related to optimizing for
growth and executing on the Company's new
strategy and eliminating certain compensation costs in response to
the COVID-19 pandemic.
|
(4)
|
Other (income)
expense, net consists of a pre-tax loss of $39,490 for the three
months ended December 31, 2021
comprised of (i) an unrealized loss of $41,437 on the Company's
equity ownership in Sharecare and (ii) an unrealized
gain of ($1,947) related to certain interest rate swap agreements
that do not qualify for hedge accounting treatment
("de-designated swaps") and require changes in fair value to be
recognized each period in current earnings. Other
(income) expense, net consists of a pre-tax gain of ($44,328) for
fiscal year 2021 comprised of (i) an unrealized gain
of ($39,232) and a realized gain of ($2,469) related to the
Company's equity ownership in Sharecare, and (ii) an
unrealized gain of ($2,627) related to the de-designated
swaps. Other (income) expense, net for the three and
twelve
months ended December 31, 2020 consists of an unrealized loss of
$226 related to the de-designated swaps.
|
(5)
|
Adjusted EBITDA from
continuing operations is a non-GAAP financial measure. The
Company excludes acquisition,
integration, project, and CEO transition costs, restructuring
charges, loss on extinguishment and modification of debt,
and other (income) expense from this measure because of its
comparability to the Company's historical operating
results. The Company updated its definition of adjusted
EBITDA during 2021 as follows: (i) during the first quarter of
2021 to exclude other (income) expense related to de-designated
swaps; (ii) during the second quarter of 2021 to
exclude loss on extinguishment and modification of debt; and (iii)
during the third quarter of 2021 to exclude other
(income) expense related to realized and unrealized gains and
losses on the Company's equity ownership in
Sharecare. The Company considers such items to be outside the
performance of its ongoing core business operations
and believes that presenting Adjusted EBITDA excluding these items
provides increased transparency as to the
operating costs of its current business performance. The Company
revised Adjusted EBITDA for 2020 to exclude
other (income) expense incurred during the fourth quarter of 2020
related to de-designated swaps; except for this
revision, the Company did not revise prior periods' Adjusted EBITDA
amounts because there were no other costs in
the prior periods similar in nature to the items that were newly
excluded from Adjusted EBITDA during 2021. The
Company believes it is useful to investors to provide disclosures
of its operating results on the same basis as that
used by management. You should not consider Adjusted EBITDA
from continuing operations in isolation or as a
substitute for income from continuing operations determined in
accordance with U.S. GAAP. Additionally, because
Adjusted EBITDA from continuing operations may be defined
differently by other companies in the Company's
industry, the non-GAAP financial measure presented here may not be
comparable to similarly titled measures of other
companies.
|
Reconciliation of
Income from Continuing Operations Guidance, GAAP Basis
to
|
Adjusted EBITDA
from Continuing Operations Guidance, Non-GAAP Basis (in
millions)
|
|
|
|
|
|
Year
Ending
December 31,
2022
|
Income from
continuing operations guidance, GAAP basis
|
|
|
|
$86.6 -
$90.3
|
Depreciation expense
|
|
|
|
14
|
Interest
expense
|
|
|
|
27
|
Income
tax expense
|
|
|
|
30.4 –
31.7
|
EBITDA from
continuing operations guidance, non-GAAP basis
(6)
|
|
|
|
$158 -
$163
|
CEO
incentive and project costs (7)
|
|
|
|
3
|
Adjusted EBITDA from
continuing operations guidance, non-GAAP basis
(8)
|
|
|
|
$161 -
$166
|
|
|
|
|
|
|
|
(6)
|
EBITDA from
continuing operations guidance is a non-GAAP financial
measure. The Company believes it is useful to
investors to provide disclosures of its operating results and
guidance on the same basis as that used by
management. You should not consider EBITDA from continuing
operations guidance in isolation or as a substitute for
income from continuing operations guidance determined in accordance
with U.S. GAAP. Figures may not add due to
rounding.
|
(7)
|
CEO incentive and
project costs primarily relate to certain incentives awarded to the
CEO during 2020 and 2022.
|
(8)
|
Adjusted EBITDA from
continuing operations guidance is a non-GAAP financial
measure. The Company excludes
CEO incentive and project costs from this measure because of its
comparability to the Company's historical operating
results. The Company believes it is useful to investors to
provide disclosures of its operating results and guidance on
the same basis as that used by management. You should not
consider Adjusted EBITDA from continuing operations
guidance in isolation or as a substitute for income from continuing
operations guidance determined in accordance with
U.S. GAAP. Additionally, because Adjusted EBITDA from
continuing operations guidance may be defined differently
by other companies in the Company's industry, the non-GAAP
financial measure presented here may not be
comparable to similarly titled measures of other
companies.
|
Reconciliation of
Net Cash Flows Provided by Operations from Former Healthcare
Segment, GAAP Basis
|
to Free Cash Flow
from Former Healthcare Segment, Non-GAAP Basis (in
thousands)
|
|
|
|
|
|
Three
Months
Ended
December
31,
2021
|
|
|
|
Three
Months
Ended
December
31,
2020
|
|
|
Year
Ended
December
31, 2021
|
|
|
Year
Ended
December
31, 2020
|
|
Net cash flows
provided by operations
from former Healthcare segment,
GAAP basis
|
|
|
$
|
21,901
|
|
|
$
|
8,353
|
|
$
|
87,123
|
|
$
|
93,400
|
|
Acquisition of
property and
equipment
|
|
|
|
(8,096)
|
|
|
|
(1,083)
|
|
|
(14,750)
|
|
|
(8,731)
|
|
Settlement on
derivatives not
designated as hedges
|
|
|
|
(1,701)
|
|
|
|
(1,499)
|
|
|
(6,697)
|
|
|
(1,499)
|
|
Proceeds from sale of
equity
securities
|
|
|
|
—
|
|
|
|
—
|
|
|
2,728
|
|
|
—
|
|
Free cash flow from
former Healthcare
segment, non-GAAP basis (9)
|
|
|
$
|
12,104
|
|
|
$
|
5,771
|
|
$
|
68,404
|
|
$
|
83,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
Free cash flow from
former Healthcare segment is a non-GAAP financial measure and is
defined by the Company as net cash flows provided by operating
activities less acquisition of property and equipment and
settlement on derivatives not designated as hedges. The
Company updated its definition of free cash flow during the fourth
quarter of 2020 to exclude settlement on derivatives not designated
as hedges. The Company considers these costs to be a reduction of
cash available for other uses and believes that presenting free
cash flow excluding settlement on derivatives provides increased
transparency. During the third quarter of 2021, the Company further
updated its definition of free cash flow such that it includes
proceeds from the sale of equity securities as these proceeds are
available to be used to support the business. The Company did not
revise prior periods' free cash flow because there were no costs
similar in nature to these items. The Company believes free cash
flow is a useful measure of performance and an indication of the
strength of the Company and its ability to generate cash. The
Company believes it is useful to investors to provide disclosures
of its results on the same basis as that used by management.
You should not consider free cash flow from former Healthcare
segment in isolation or as a substitute for net cash flows provided
by operating activities determined in accordance with U.S.
GAAP. Additionally, because free cash flow may be defined
differently by other companies in the Company's industry, the
non-GAAP financial measure presented here may not be comparable to
similarly titled measures of other companies.
|
Reconciliation of
Net Cash Flows Provided by Operations Guidance, GAAP Basis
to
|
Free Cash Flow
Guidance, Non-GAAP Basis (in millions)
|
|
|
|
|
|
Year
Ending
December
31,
2022
|
|
|
Net cash flows
provided by operations guidance, GAAP basis
|
|
|
$
|
102.0 –
107.0
|
|
|
Acquisition of property and
equipment
|
|
|
|
(20 - 15)
|
|
|
Settlement on derivatives not
designated as hedges
|
|
|
|
(5)
|
|
|
Free cash flow
guidance, non-GAAP basis (10)
|
|
|
$
|
77 – 87
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
Free cash flow
guidance is a non-GAAP financial measure and is defined by the
Company as net cash flows provided
by operating activities less acquisition of property and equipment
and settlement on derivatives not designated as
hedges. The Company's guidance does not include potential
future proceeds from sale of equity securities as the
Company is not able to predict the timing or amount of such sales.
The Company believes free cash flow is a useful
measure of performance and an indication of the strength of the
Company and its ability to generate cash. The
Company believes it is useful to investors to provide disclosures
of its results and guidance on the same basis as that
used by management. You should not consider free cash
flow guidance in isolation or as a substitute for net
cash
flows provided by operating activities guidance determined in
accordance with U.S. GAAP. Additionally, because free
cash flow may be defined differently by other companies in the
Company's industry, the non-GAAP financial measure
presented here may not be comparable to similarly titled measures
of other companies.
|
Reconciliation of
Diluted Earnings Per Share ("EPS") from Continuing Operations, GAAP
Basis to
|
Adjusted EPS from
Continuing Operations, Non-GAAP Basis (footnote amounts in
thousands)
|
|
|
|
|
|
Three
Months
Ended
Dec.
31,
2021
|
|
|
Three
Months
Ended
Dec.
31,
2020
|
|
|
Year
Ended
Dec. 31,
2021
|
|
|
Year
Ended
Dec. 31,
2020
|
|
|
EPS from continuing
operations, GAAP basis
|
|
$
|
(0.50)
|
|
$
|
0.29
|
|
$
|
2.13
|
|
$
|
1.16
|
|
|
Net loss
attributable to acquisition, integration,
project, CEO transition, and restructuring costs
(11)
|
|
|
0.01
|
|
|
0.09
|
|
|
0.05
|
|
|
0.31
|
|
|
Net loss
attributable to loss on extinguishment and
modification of debt (12)
|
|
|
—
|
|
|
—
|
|
|
0.28
|
|
|
—
|
|
|
Net
income per share attributable to other (income)
expense, net (13)
|
|
|
0.80
|
|
|
—
|
|
|
(0.87)
|
|
|
—
|
|
|
Adjusted EPS from
continuing operations, GAAP basis
(14)
|
|
$
|
0.30
|
|
$
|
0.39
|
|
$
|
1.60
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11)
|
Net loss attributable
to acquisition, integration, project, CEO transition, and
restructuring costs consists of pre-tax
charges of $476 and $5,864 for the three months ended December 31,
2021 and 2020, respectively, and $3,597 and
$20,049 for the years ended December 31, 2021 and 2020,
respectively. These costs primarily related to the
acquisition and integration of Nutrisystem and other strategic
projects, the termination of the Company's former CEO
in February 2020 and hiring of a new CEO in June 2020, and
restructuring activities as described in Note 3 above.
The tax rate applied to these charges was 25%, which represented
the combined estimated U.S. federal and state
statutory tax rate.
|
(12)
|
Net income
attributable to other (income) expense consists of pre-tax loss of
$39,490 and $226 for the three months
ended December 31, 2021 and 2020, respectively, and pre-tax
(income) loss of ($44,328) and $226 for the years
ended December 31, 2021 and 2020, respectively, related to the
Company's equity ownership in Sharecare and the
Company's de-designated swaps, as described in Note 4 above.
The tax rate applied to the (income) loss related to
the de-designated swaps was 25%, which represented the combined
estimated U.S. federal and state statutory tax
rate. There is no net tax impact on the (income) loss related to
the Company's equity ownership in Sharecare due to
the existence of valuation allowances for deferred tax assets
related to capital loss carryforwards.
|
(13)
|
Net loss
attributable to loss on extinguishment and modification of debt
consists of pre-tax charges of $19,027 for the
year ended December 31, 2021 related to the Company's entering into
a new credit facility on June 30, 2021. The tax
rate applied to this loss was 25%, which represented the combined
estimated U.S. federal and state statutory tax rate.
|
(14)
|
Adjusted EPS
from continuing operations is a non-GAAP financial
measure. The Company excludes net (income)
loss per share attributable to acquisition, integration, project,
CEO transition, and restructuring costs, loss on
extinguishment and modification of debt, and other (income) expense
from this measure because of its comparability
to the Company's historical operating results. The Company
updated its definition of adjusted EPS during 2021 as
follows: (i) during the first quarter of 2021 to exclude other
(income) expense related to de-designated swaps; (ii)
during the second quarter of 2021 to exclude loss on extinguishment
and modification of debt; and (iii) during the third
quarter of 2021 to exclude other (income) expense related to
realized and unrealized gains and losses on the
Company's equity ownership in Sharecare. The Company considers such
items to be outside the performance of its
ongoing core business operations and believes that presenting
adjusted EPS excluding these items provides
increased transparency as to the operating costs of its current
business performance. The Company revised adjusted
EPS for 2020 to exclude other (income) expense incurred during the
fourth quarter of 2020 related to de-designated
swaps; except for this revision, the Company did not revise prior
periods' adjusted EPS amounts because there were
no other costs in the prior periods similar in nature to the items
that were newly excluded from adjusted EPS during
2021. The Company believes it is useful to investors to
provide disclosures of its operating results on the same basis
as that used by management. You should not consider
adjusted EPS from continuing operations in isolation or as
a
substitute for EPS from continuing operations determined
in accordance with U.S. GAAP. Additionally, because
adjusted EPS from continuing operations may be defined
differently by other companies in the Company's industry,
the non-GAAP financial measures presented here may not be
comparable to similarly titled measures of other
companies. Figures may not add due to rounding.
|
Reconciliation of
EPS from Continuing Operations Guidance, GAAP Basis to Adjusted
EPS
|
from Continuing
Operations Guidance, Non-GAAP Basis (footnote amounts in
thousands)
|
|
|
|
|
Year
Ending
December 31,
2022
|
|
|
EPS from continuing
operations guidance, GAAP basis
|
|
|
$1.70 -
$1.79
|
|
|
Net loss
per share attributable to CEO incentive and project costs
(15)
|
|
|
0.04
|
|
|
Adjusted EPS from
continuing operations guidance, non-GAAP basis
(16)
|
|
$
|
$1.75 –
1.84
|
|
|
|
|
|
|
|
|
|
|
(15)
|
Net loss per share
attributable to CEO incentive and project costs consists of pre-tax
charges of $3,000 for the year
ending December 31, 2022. These costs primarily relate to
certain incentives awarded to the CEO during 2020 and
2022. The tax rate applied to these charges was 25%, which
represents the combined estimated U.S. federal and
state statutory tax rate.
|
(16)
|
Adjusted EPS from
continuing operations guidance is a non-GAAP financial
measure. The Company excludes net
loss per share attributable to CEO incentive and project costs from
this measure because of its comparability to the
Company's historical operating results. The Company believes
it is useful to investors to provide disclosures of its
operating results and guidance on the same basis as that used by
management. You should not consider adjusted
EPS from continuing operations guidance in isolation or as a
substitute for EPS from continuing operations guidance
determined in accordance with U.S. GAAP. Additionally,
because adjusted EPS from continuing operations guidance
may be defined differently by other companies in the Company's
industry, the non-GAAP financial measures
presented here may not be comparable to similarly titled measures
of other companies. Figures may not add due to
rounding.
|
Reconciliation of
Total Debt, GAAP Basis
|
to Net Debt,
Non-GAAP Basis (in thousands)
|
|
|
|
|
|
December 31,
2021
|
|
|
|
December
31,
2020
|
|
Total debt, GAAP
basis
|
|
|
$
|
380,504
|
|
|
$
|
466,706
|
|
Cash and cash
equivalents
|
|
|
|
(60,132)
|
|
|
|
(100,385)
|
|
Net debt, non-GAAP
basis (17)
|
|
|
$
|
320,372
|
|
|
$
|
366,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17)
|
Net debt is a
non-GAAP financial measure. The Company excludes cash and
cash equivalents from this measure
and believes that net debt is an important measure to monitor its
leverage and evaluate the balance sheet. The
Company believes it is useful to investors to provide disclosures
of its financial position on the same basis as that
used by management. You should not consider net debt in
isolation or as a substitute for total debt determined in
accordance with U.S. GAAP. Additionally, because net
debt may be defined differently by other companies in the
Company's industry, the non-GAAP financial measures presented here
may not be comparable to similarly titled
measures of other companies.
|
View original
content:https://www.prnewswire.com/news-releases/tivity-health-delivers-strong-fourth-quarter-and-full-year-2021-results-301490154.html
SOURCE Tivity Health, Inc.