WASHINGTON, May 9, 2018
/PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH), a company
providing an integrated value-based care platform to the nation's
leading health systems and physician organizations, today announced
financial results for the quarter ended March 31, 2018.
Highlights from the first quarter of 2018 announcement include
(all comparisons are to the quarter ended March 31, 2017):
- GAAP revenue of $139.7 million,
an increase of 31.5%; Adjusted Revenue of $144.4 million, an increase of 35.3%
- Net income (loss) attributable to Evolent Health, Inc. of
$(13.6) million, Adjusted EBITDA of
$7.9 million
- Lives on platform of approximately 2.8 million, an increase of
1.4%
- New partnership agreement with Lee Health in Florida. Lee Health is a $1.7 billion, six-hospital health system with
more than 1,500 physicians organized in a clinically-integrated
network. Evolent will be supporting Lee in Medicaid and
Medicare.
-
- Evolent will provide health plan administration and operational
services to Best Care Assurance LLC, a Lee Health affiliate which
intends to offer a Managed Medical Assistance (MMA) plan to
Medicaid beneficiaries living in Region 8 in Florida. Lee Health has been notified by the
Florida Agency for Health Care Administration (AHCA) of its intent
to award a contract to Best Care Assurance LLC to provide physical
and behavioral health care services through Florida's Statewide Medicaid Managed Care
(SMMC) Program. Pending regulatory approval and successful
completion of readiness review, the plan's five-year agreement is
expected to commence between October 1,
2018 and January 1, 2019.
- Evolent also supports Lee Health's Next Generation ACO, Best
Care Collaborative.
- New partnership agreement with SOMOS IPA to accelerate
value-based care in the New York
metropolitan area. SOMOS is the largest IPA in the New York market, with a network of 3,500
affiliated physicians.
Frank Williams, chief executive
officer of Evolent Health, Inc., commented, "We are pleased with
our first quarter results and our strong start to 2018. We continue
to see clear interest and momentum within both the Medicare and
Medicaid segments of the market as providers look to enter into and
improve on their performance in value-based care arrangements."
Mr. Williams added, "We are excited to establish a market
presence in southwest Florida with
a nationally-recognized provider system at the forefront of
Medicaid transformation. Together, Lee Health and Evolent have a
significant opportunity to make an impact on how care is delivered
in Florida—the fourth largest Medicaid state in the U.S. We look
forward to collaborating with Lee Health to leverage our national
Medicaid Center of Excellence, value-based care platform, health
plan services and care management capabilities to help improve the
health of Medicaid beneficiaries in Region 8 and beyond."
Mr. Williams commented, "In addition, we are also very pleased
to announce our partnership with SOMOS IPA to accelerate
value-based care in New York City.
SOMOS is a top-performing, innovative provider network and
community leader integrating medical care, cultural fluency and
community support to make a significant impact on its communities.
We look forward to continuing to support SOMOS' efforts in the
New York's Delivery System Reform
Incentive Payment (DSRIP) program and expect our partnership to
serve as a platform to expand to other value-based care
arrangements."
Mr. Williams concluded, "Finally, we're pleased to report that
2018 is off to a great start operationally as we successfully
launched our 2018 Next Generation ACO cohort of ten partners and
are making good progress with our health plan services partner
implementations. We look forward to continuing to work with leading
provider organizations across the country to drive health care
transformation and make a significant impact on how health care is
delivered."
Financial Results of Evolent Health, Inc.
In our earnings releases, prepared remarks, conference calls,
slide presentations and webcasts, we may use or discuss non-GAAP
financial measures. Definitions of the non-GAAP financial measures,
as well as reconciliations of non-GAAP financial measures to the
most directly comparable GAAP financial measures are included in
this earnings release. See "Financial Statement Presentation" and
"Non-GAAP Financial Measures" for more information.
Reported Results
Evolent Health, Inc. reported the following United States of America generally accepted
accounting principles ("GAAP") results:
- Total revenue of $139.7 million
and $106.2 million for the three
months ended March 31, 2018 and 2017, respectively, an
increase of 31.5%;
-
- Services revenue of $120.1
million for the three months ended March 31, 2018,
before intersegment eliminations of $3.8
million; and
- True Health premiums revenue of $23.6
million before intersegment eliminations of $0.2 million.
- Cost of revenue of $72.0 million
and $67.5 million for the three
months ended March 31, 2018 and 2017, respectively, an
increase of 6.6%;
- Claims expenses of $16.7 million
for the three months ended March 31, 2018;
- Selling, general and administrative expenses of $55.5 million and $53.6
million for the three months ended March 31, 2018 and 2017, respectively, an
increase of 3.7%;
- Net income (loss) attributable to Evolent Health, Inc. of
$(13.6) million and $(18.0) million for the three months ended
March 31, 2018 and 2017,
respectively;
- Earnings (loss) available to common shareholders, basic and
diluted, of $(13.6) million and
$(18.0) million for the three months
ended March 31, 2018 and 2017,
respectively; and
- Earnings (loss) available to common shareholders, per basic and
diluted share, of $(0.18) and
$(0.34) for the three months ended
March 31, 2018 and 2017,
respectively.
Total cash and cash equivalents as of March 31, 2018, were
$200.3 million.
Adjusted Results
- Adjusted Revenue of $144.4
million and $106.8 million for
the three months ended March 31, 2018 and 2017, respectively,
an increase of 35.3%;
-
- Adjusted Services Revenue of $124.8
million for the three months ended March 31, 2018,
before intersegment eliminations of $3.8
million; and
- True Health premiums revenue of $23.6
million for the three months ended March 31, 2018,
before intersegment eliminations of $0.2
million.
- Adjusted Cost of Revenue of $70.3
million and $66.5 million for
the three months ended March 31, 2018 and 2017, respectively,
an increase of 5.8%;
- Claims expenses of $16.7 million
for the three months ended March 31, 2018;
- Adjusted Selling, General and Administrative Expenses of
$49.4 million and $45.0 million for the three months ended
March 31, 2018 and 2017, respectively, an increase of
9.8%;
- Adjusted EBITDA of $7.9 million
and $(4.8) million for the three
months ended March 31, 2018 and 2017, respectively;
-
- Services Adjusted EBITDA of $7.0
million for three months ended March 31, 2018; and
- True Health Adjusted EBITDA of $0.9
million for the three months ended March 31, 2018.
- Adjusted Earnings (Loss) Available for Class A and Class B
Shareholders of $1.2 million and
$(9.8) million for the three months
ended March 31, 2018 and 2017, respectively; and
- Adjusted Earnings (Loss) per Share Available for Class A and
Class B Shareholders of $0.02 and
$(0.14) for the three months ended
March 31, 2018 and 2017, respectively.
Business Outlook
For the full year 2018, Adjusted Revenue is expected to be in
the range of approximately $565.0
million to $585.0
million. The components of Adjusted Revenue include
Adjusted Services Revenue, which is forecasted to be approximately
$495.0 million to $510.0 million, and True Health premiums revenue,
which is forecasted to be approximately $90.0 million to $95.0
million; Intersegment eliminations are forecasted to be
approximately $(20.0) million for the
full year. Adjusted EBITDA is expected to be in the range of
approximately $18.0 million to
$23.0 million.
For the three months ended June 30,
2018, Adjusted Revenue is expected to be in the range of
approximately $139.0 million to
$143.0 million. The components of
Adjusted Revenue include Adjusted Services Revenue, which is
forecasted to be approximately $122.0
million to $124.0 million, and
True Health premiums revenue, which is forecasted to be
approximately $22.0 million to
$24.0 million; Intersegment
eliminations are forecasted to be approximately $(5.0) million for the quarter. Adjusted EBITDA
is expected to be in the range of approximately $3.0 million to $5.0
million.
This "Business Outlook" section contains forward-looking
statements, and actual results may differ materially. Factors that
may cause actual results to differ materially from our current
expectations are set forth in "Forward Looking Statements -
Cautionary Language" and Evolent Health, Inc.'s filings with the
Securities and Exchange Commission ("SEC").
Web and Conference Call Information
As previously announced, Evolent Health, Inc. will hold a
conference call to discuss its first quarter performance this
evening, May 9, 2018, at 5:00 p.m.,
Eastern Time. The conference call will be available via live
webcast on the Company's Investor Relations website at
http://ir.evolenthealth.com. To participate by telephone, dial
855.940.9467 or 412.317.6034 for international callers, and ask to
join to the Evolent Health call. Participants are advised to dial
in at least fifteen minutes prior to the call to register. The call
will be archived on the company's website for one week and will be
available beginning later this evening. Evolent Health invites all
interested parties to attend the conference call.
About Evolent Health, Inc.
Evolent Health, Inc.'s Services segment focuses on partnering
with leading provider organizations to achieve superior clinical
and financial results in value-based care. With a provider heritage
and over 20 years of health plan administration experience, Evolent
operates in more than 30 U.S. health care markets, actively
managing care across Medicare, Medicaid, commercial and self-funded
adult and pediatric populations. With the experience to drive
change, Evolent confidently stands by a commitment to achieve
results. Our True Health segment consists of a commercial health
plan we operate in New Mexico that
focuses on small and large businesses. For more information, visit
www.evolenthealth.com.
Financial Statement Presentation
Evolent Health, Inc. is a holding company and its principal
asset is all of the Class A common units in its operating
subsidiary, Evolent Health LLC, which has owned all of our
operating assets and substantially all of our business since
inception. The financial results of Evolent Health LLC are
consolidated in the financial statements of Evolent Health,
Inc.
Non-GAAP Financial Measures
In addition to disclosing financial results that are determined
in accordance with GAAP, we present and discuss Adjusted Revenue,
Adjusted Services Revenue, Adjusted Transformation Services
Revenue, Adjusted Platform and Operations Services Revenue,
Adjusted Cost of Revenue, Adjusted Selling, General and
Administrative Expenses, Adjusted Depreciation and Amortization
Expenses, Adjusted Operating Income (Loss), Adjusted Gross Margin,
Adjusted EBITDA, Adjusted Earnings (Loss) Available to Class A and
Class B Shareholders, Adjusted Earnings (Loss) per Share Available
to Class A and Class B Shareholders and Adjusted Weighted-Average
Class A and Class B Shares, which are all non-GAAP financial
measures, as supplemental measures to help investors evaluate our
fundamental operational performance.
Adjusted Transformation Services Revenue and Adjusted Platform
and Operations Services Revenue are defined as transformation
services revenue and platform and operations services revenue,
respectively, before the effect of intersegment eliminations and
adjusted to exclude the impact of purchase accounting adjustments.
In addition, the company's Adjusted Transformation Services Revenue
and Adjusted Platform and Operations Services Revenue for the three
months ended March 31, 2018, include
a $4.5 million adjustment related to
revenue that was contracted for prior to 2018 and that was properly
excluded from revenue in our 2017 results under the revenue
recognition rules then in effect under Accounting Standards
Codification ("ASC") 605. On January 1,
2018, we adopted the new revenue recognition rules under ASC
606 using the modified retrospective method, which required us to
include this $4.5 million as part of
the cumulative transition adjustment to beginning retained earnings
as of January 1, 2018. Under ASC 605,
and based on proportionate performance revenue recognition, we
would have recognized an additional $4.5
million in revenue during 2018, primarily within our
Adjusted Transformation Services Revenue. The company has therefore
included this revenue, and related profit, in its adjusted results
for the three months ended March 31,
2018, as they had not been previously reported prior to 2018
and the contracts are expected to be completed within
2018. This is a one-time adjustment and it will not reoccur in
future periods.
Adjusted Services Revenue is defined as the sum of Adjusted
Transformation Revenue and Adjusted Platform and Operations
Revenue. Adjusted Revenue is defined as the sum of Adjusted
Services Revenue and True Health premiums revenue, less relevant
intersegment eliminations. Management uses Adjusted Revenue,
Adjusted Services Revenue, Adjusted Transformation Services Revenue
and Adjusted Platform and Operations Services Revenue as
supplemental performance measures because they reflect a complete
view of the operational results. The measures are also useful to
investors because they reflect the full view of our operational
performance in line with how we generate our long term
forecasts.
Adjusted Cost of Revenue and Adjusted Selling, General and
Administrative Expenses are defined as cost of revenue and selling,
general and administrative expenses, respectively, adjusted to
exclude the impact of stock-based compensation expenses, severance
costs, amortization of contract cost assets recorded as a result of
a one-time ASC 606 transition adjustment, transaction costs related
to acquisitions and business combinations, securities offerings and
other one-time adjustments. Management uses Adjusted Cost of
Revenue and Adjusted Selling, General and Administrative Expenses
as supplemental performance measures, which are also useful to
investors, because they facilitate an understanding of our long
term operational costs while removing the effect of costs that are
one-time (e.g. transaction costs) and non-cash (e.g. stock-based
compensation expenses) in nature. Additionally, these supplemental
performance measures facilitate understanding a breakdown of our
Adjusted Total Operating Expenses.
Adjusted Depreciation and Amortization Expenses is defined as
depreciation and amortization expenses adjusted to exclude the
impact of amortization expenses related to intangible assets
acquired through acquisitions and business combinations. Management
uses Adjusted Depreciation and Amortization Expenses as a
supplemental performance measure because it reflects a complete
view of the operational results. The measure is also useful to
investors because it facilitates understanding a breakdown of our
Adjusted Total Operating Expenses.
Adjusted Total Operating Expenses is defined as the sum of
Adjusted Cost of Revenue, Adjusted Selling, General and
Administrative Expenses and Adjusted Depreciation and Amortization
Expenses, and reflects the adjustments made in those non-GAAP
measures. Adjusted Total Operating Expenses is adjusted to exclude
the impact of one-time adjustments, such as goodwill impairment,
severance costs, and items arising from acquisitions and business
combinations, such as (gain) loss on change in fair value of
contingent consideration.
Adjusted Operating Income (Loss) is defined as Adjusted Revenue
less Adjusted Total Operating Expenses, and reflects the
adjustments made in those non-GAAP measures.
Adjusted Gross Margin is defined as Adjusted Revenue less
Adjusted Cost of Revenue, and reflects the adjustments made in
those non-GAAP measures.
Adjusted EBITDA is the sum of Services Adjusted EBITDA and True
Health Adjusted EBITDA and is defined as EBITDA (net income (loss)
attributable to Evolent Health, Inc. before interest income,
interest expense, (provision) benefit for income taxes,
depreciation and amortization expenses), adjusted to exclude,
(gain) loss on change in fair value of contingent consideration,
income (loss) from equity affiliates, other income (expense), net,
net (income) loss attributable to non-controlling interests,
purchase accounting adjustments, stock-based compensation expenses,
severance costs, amortization of contract cost assets recorded as a
result of a one-time ASC 606 transition adjustment, transaction
costs related to acquisitions and business combinations and other
one-time adjustments (which for the three months ended March 31, 2018 includes the ASC 606 transition
adjustment described above). Management uses Adjusted EBITDA as a
supplemental performance measure because the removal of transaction
costs, one-time or non-cash items (e.g. depreciation, amortization
and stock-based compensation expenses) allows us to focus on
operational performance. We believe that this measure is also
useful to investors because it allows further insight into the
period over period operational performance in a manner that is
comparable to other organizations in our industry and in the market
in general.
Adjusted Earnings (Loss) Available to Class A and Class B
Shareholders is defined as earnings (loss) available to common
shareholders adjusted to exclude, income (loss) from equity
affiliates, (provision) benefit for income taxes, (gain) loss on
change in fair value of contingent consideration, net (income) loss
attributable to non-controlling interests, purchase accounting
adjustments, stock-based compensation expenses, severance costs,
amortization of contract cost assets recorded as a result of a
one-time ASC 606 transition adjustment, transaction costs related
to acquisitions and business combinations and other one-time
adjustments (which for the three months ended March 31, 2018 includes the ASC transition
adjustment described above).
Adjusted Weighted-Average Class A and Class B Shares is defined
as weighted average common shares (diluted) adjusted to include, in
periods of net loss, the dilutive or potentially dilutive effect of
the assumed conversion of Class B common shares to Class A common
shares.
Adjusted Earnings (Loss) per Share Available to Class A and
Class B Shareholders is defined as Adjusted Earnings (Loss)
Available to Class A and Class B Shareholders divided by Adjusted
Weighted-Average Class A and Class B Shares, and reflects the
adjustments made in those non-GAAP measures.
Management uses Adjusted Earnings (Loss) Available to Class A
and Class B Shareholders, Adjusted Weighted-Average Class A and
Class B Shares and Adjusted Earnings (Loss) per Share Available to
Class A and Class B Shareholders because these performance measures
represent our core operating performance distributed amongst all of
our investors which is not represented by the GAAP results across
time due to our complex equity structure. We believe that
these measures are also useful to investors for the same
reason.
These adjusted measures do not represent and should not be
considered as alternatives to GAAP measurements, and our
calculations thereof may not be comparable to similarly entitled
measures reported by other companies. A reconciliation of these
adjusted measures to their most comparable GAAP financial measures
is presented in the tables below. We believe these measures are
useful across time in evaluating our fundamental core operating
performance.
Evolent Health,
Inc. Consolidated Statements of Operations and
Comprehensive Income (Loss) (unaudited)
|
|
(in thousands, except
per share data)
|
For the
Three
|
|
Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Revenue
|
|
|
|
Transformation
services
|
$
|
6,505
|
|
|
$
|
10,235
|
|
Platform and
operations services
|
109,818
|
|
|
96,003
|
|
Premiums
|
23,391
|
|
|
—
|
|
Total
revenue
|
139,714
|
|
|
106,238
|
|
|
|
|
|
Expenses
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization
|
|
|
|
expenses presented
separately below)
|
71,975
|
|
|
67,528
|
|
Claims
expenses
|
16,749
|
|
|
—
|
|
Selling, general and
administrative expenses
|
55,526
|
|
|
53,550
|
|
Depreciation and
amortization expenses
|
9,496
|
|
|
6,615
|
|
Loss on change in
fair value of contingent consideration
|
100
|
|
|
—
|
|
Total operating
expenses
|
153,846
|
|
|
127,693
|
|
Operating income
(loss)
|
(14,132)
|
|
|
(21,455)
|
|
Interest
income
|
1,072
|
|
|
185
|
|
Interest
expense
|
(853)
|
|
|
(954)
|
|
Income (loss) from
equity affiliates
|
(131)
|
|
|
(522)
|
|
Other Income
(expense), net
|
(18)
|
|
|
2
|
|
Income (loss) before
income taxes and non-controlling interests
|
(14,062)
|
|
|
(22,744)
|
|
Provision (benefit)
for income taxes
|
3
|
|
|
405
|
|
Net income
(loss)
|
(14,065)
|
|
|
(23,149)
|
|
Net income (loss)
attributable to non-controlling interests
|
(439)
|
|
|
(5,137)
|
|
Net income (loss)
attributable to Evolent Health, Inc.
|
$
|
(13,626)
|
|
|
$
|
(18,012)
|
|
|
|
|
|
Earnings (Loss)
Available to Common Shareholders
|
|
|
Basic
|
$
|
(13,626)
|
|
|
$
|
(18,012)
|
|
Diluted
|
(13,626)
|
|
|
(18,012)
|
|
|
|
|
|
Earnings (Loss)
per Common Share
|
|
|
|
Basic
|
$
|
(0.18)
|
|
|
$
|
(0.34)
|
|
Diluted
|
(0.18)
|
|
|
(0.34)
|
|
|
|
|
|
Weighted-Average
Common Shares Outstanding
|
|
|
Basic
|
75,375
|
|
|
52,599
|
|
Diluted
|
75,375
|
|
|
52,599
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
Net income
(loss)
|
$
|
(14,065)
|
|
|
$
|
(23,149)
|
|
Other comprehensive
income (loss), net of taxes, related to:
|
|
|
|
Foreign currency
translation adjustment
|
—
|
|
|
—
|
|
Total comprehensive
income (loss)
|
(14,065)
|
|
|
(23,149)
|
|
Total comprehensive
income (loss) attributable to non-controlling interests
|
(439)
|
|
|
(5,137)
|
|
Total
comprehensive income (loss) attributable to Evolent Health,
Inc.
|
$
|
(13,626)
|
|
|
$
|
(18,012)
|
|
Evolent Health,
Inc. Condensed Consolidated Balance
Sheets (unaudited)
|
|
|
|
(in
thousands)
|
|
As
of
|
|
|
As
of
|
|
|
March
31,
|
December
31,
|
|
|
2018
|
|
|
2017
|
|
Cash and cash
equivalents
|
|
$
|
200,316
|
|
|
|
$
|
238,433
|
|
|
Restricted
cash
|
|
36,046
|
|
|
|
56,930
|
|
|
Restricted
investments
|
|
711
|
|
|
|
8,755
|
|
|
Note
receivable
|
|
16,000
|
|
|
|
20,000
|
|
|
Total current
assets
|
|
337,279
|
|
|
|
378,182
|
|
|
Intangible assets,
net
|
|
242,863
|
|
|
|
241,261
|
|
|
Goodwill
|
|
635,246
|
|
|
|
628,186
|
|
|
Total
assets
|
|
1,306,310
|
|
|
|
1,312,697
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of discount
|
|
121,623
|
|
|
|
121,394
|
|
|
Total
liabilities
|
|
251,396
|
|
|
|
266,391
|
|
|
Total shareholders'
equity (deficit) attributable to
|
|
|
|
|
|
|
Evolent Health,
Inc.
|
|
1,043,142
|
|
|
|
1,010,879
|
|
|
Non-controlling
interests
|
|
11,772
|
|
|
|
35,427
|
|
|
Total liabilities and
shareholders' equity (deficit)
|
|
1,306,310
|
|
|
|
1,312,697
|
|
|
Evolent Health,
Inc. Condensed Consolidated Statements of Cash
Flows (unaudited)
|
|
(in
thousands)
|
For the
Three
|
|
Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Net cash and
restricted cash provided by (used in) operating
activities
|
$
|
(24,705)
|
|
|
$
|
(34,765)
|
|
Net cash and
restricted cash provided by (used in) investing
activities
|
(12,685)
|
|
|
4,622
|
|
Net cash and
restricted cash provided by (used in) financing
activities
|
(21,607)
|
|
|
(8,626)
|
|
Effect of exchange
rate on cash and cash equivalents and restricted cash
|
(4)
|
|
|
—
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
(59,001)
|
|
|
(38,769)
|
|
Cash and cash
equivalents and restricted cash as of
beginning-of-period
|
295,363
|
|
|
170,029
|
|
Cash and cash
equivalents and restricted cash as of end-of-period
|
$
|
236,362
|
|
|
$
|
131,260
|
|
Evolent Health,
Inc. Adjusted Results of
Operations (unaudited)
|
|
(in
thousands)
|
For the Three
Months Ended March 31, 2018
|
|
|
For the Three
Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evolent Health,
Inc.
|
|
Evolent Health,
Inc.
|
|
Evolent
|
|
|
|
Evolent
|
|
|
Evolent
|
|
|
|
Evolent
|
|
as
Reported
|
|
as
Adjusted
|
|
Health,
Inc.
|
|
|
|
Health,
Inc.
|
|
|
Health,
Inc.
|
|
|
|
Health,
Inc.
|
|
Change Over Prior
Period
|
|
Change Over Prior
Period
|
|
as
Reported(1)
|
|
Adjustments
|
|
as
Adjusted(1)
|
|
|
as
Reported
|
|
Adjustments
|
|
as
Adjusted
|
|
$
|
|
%
|
|
$
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transformation
services (2)
|
$
|
6,505
|
|
|
$
|
3,655
|
|
|
$
|
10,160
|
|
|
|
$
|
10,235
|
|
|
$
|
—
|
|
|
$
|
10,235
|
|
|
$
|
(3,730)
|
|
|
(36.4)
|
%
|
|
$
|
(75)
|
|
|
(0.7)
|
%
|
Platform and
operations services (2)
|
109,818
|
|
|
1,060
|
|
|
110,878
|
|
|
|
96,003
|
|
|
531
|
|
|
96,534
|
|
|
13,815
|
|
|
14.4
|
%
|
|
14,344
|
|
|
14.9
|
%
|
Premiums
|
23,391
|
|
|
—
|
|
|
23,391
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,391
|
|
|
—
|
%
|
|
23,391
|
|
|
—
|
%
|
Total
revenue
|
139,714
|
|
|
4,715
|
|
|
144,429
|
|
|
|
106,238
|
|
|
531
|
|
|
106,769
|
|
|
33,476
|
|
|
31.5
|
%
|
|
37,660
|
|
|
35.3
|
%
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
presented
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
separately below)
(3)
|
71,975
|
|
|
(1,636)
|
|
|
70,339
|
|
|
|
67,528
|
|
|
(1,021)
|
|
|
66,507
|
|
|
4,447
|
|
|
6.6
|
%
|
|
3,832
|
|
|
5.8
|
%
|
Claims
expenses
|
16,749
|
|
|
—
|
|
|
16,749
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,749
|
|
|
—
|
%
|
|
16,749
|
|
|
—
|
%
|
Selling, general
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative
expenses (4)
|
55,526
|
|
|
(6,098)
|
|
|
49,428
|
|
|
|
53,550
|
|
|
(8,514)
|
|
|
45,036
|
|
|
1,976
|
|
|
3.7
|
%
|
|
4,392
|
|
|
9.8
|
%
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
(5)
|
9,496
|
|
|
(2,636)
|
|
|
6,860
|
|
|
|
6,615
|
|
|
(2,325)
|
|
|
4,290
|
|
|
2,881
|
|
|
43.6
|
%
|
|
2,570
|
|
|
59.9
|
%
|
Loss on change in
fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of contingent
consideration (6)
|
100
|
|
|
(100)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Total operating
expenses
|
153,846
|
|
|
(10,470)
|
|
|
143,376
|
|
|
|
127,693
|
|
|
(11,860)
|
|
|
115,833
|
|
|
26,153
|
|
|
20.5
|
%
|
|
27,543
|
|
|
23.8
|
%
|
Operating income
(loss)
|
$
|
(14,132)
|
|
|
$
|
15,185
|
|
|
$
|
1,053
|
|
|
|
$
|
(21,455)
|
|
|
$
|
12,391
|
|
|
$
|
(9,064)
|
|
|
$
|
7,323
|
|
|
34.1
|
%
|
|
$
|
10,117
|
|
|
111.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percentage of total
revenue
|
110.1
|
%
|
|
|
|
99.3
|
%
|
|
|
120.2
|
%
|
|
|
|
108.5
|
%
|
|
|
|
|
|
|
|
|
(1)
|
Evolent Health, Inc.
results in the table above for the three months ended March 31,
2018, are presented net of the impact of intersegment
eliminations.
|
(2)
|
Adjustments to
transformation services revenue and platform and operations
services revenue for the three months ended March 31, 2018,
include approximately $3.7 million and $0.8 million, respectively,
resulting from our transition adjustments related to the
implementation of ASC 606. Adjustments to platform and operations
services revenue also include deferred revenue purchase accounting
adjustments of approximately $0.2 million and $0.5 million for the
three months ended March 31, 2018 and 2017, respectively,
resulting from our acquisitions and business
combinations.
|
(3)
|
Adjustments to cost
of revenue include $0.3 million and $0.3 million in stock-based
compensation expense for the three months ended March 31, 2018
and 2017, respectively. Stock-based compensation expense includes
the value of equity awards granted to employees and non-employee
directors of the Company or its consolidated subsidiaries. The
adjustments also include $0.5 million related to the amortization
of contract cost assets recorded as a result of the one-time ASC
606 transition adjustment and $0.8 million of one-time severance
costs for the three months ended March 31, 2018. Adjustments
also include transaction costs of approximately $0.7 million for
the three months ended March 31, 2017, resulting from
acquisitions and business combinations.
|
(4)
|
Adjustments to
selling, general and administrative expenses include $3.5 million
and $4.8 million in stock-based compensation expense for the three
months ended March 31, 2018 and 2017, respectively.
Stock-based compensation expense includes the value of equity
awards granted to employees and non-employee directors of the
Company or its consolidated subsidiaries. Adjustments also include
transaction costs of $1.8 million and $3.8 million for the three
months ended March 31, 2018 and 2017, respectively, resulting
from acquisitions and business combinations and costs relating to
our securities offerings. The adjustments also include less than
$0.1 million related to the amortization of contract cost assets
recorded as a result of the one time ASC 606 transition adjustment
and $0.8 million of one-time severance costs for the three months
ended March 31, 2018.
|
(5)
|
Adjustments to
depreciation and amortization expenses of approximately $2.6
million and $2.3 million for the three months ended March 31,
2018 and 2017, respectively, relate to amortization of intangible
assets acquired via asset acquisition and business
combinations.
|
(6)
|
The adjustment
represents a loss of $0.1 million for the three months ended
March 31, 2018, due to a change in the fair value of
contingent consideration related to our Passport
transaction.
|
Evolent Health,
Inc. Segment Results (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
|
|
|
|
|
|
Services
|
|
True
Health
|
Eliminations
|
Consolidated
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Transformation Services
|
|
$
|
10,160
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
10,160
|
|
|
Adjusted Platform and
Operations Services
|
|
114,675
|
|
|
|
—
|
|
|
|
(3,797)
|
|
|
|
110,878
|
|
|
Adjusted Services
Revenue
|
|
124,835
|
|
|
|
—
|
|
|
|
(3,797)
|
|
|
|
121,038
|
|
|
True
Health:
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
|
|
—
|
|
|
|
23,585
|
|
|
|
(194)
|
|
|
|
23,391
|
|
|
Adjusted
Revenue
|
|
124,835
|
|
|
|
23,585
|
|
|
|
(3,991)
|
|
|
|
144,429
|
|
|
ASC 606 transition
adjustment (1)
|
|
(4,498)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,498)
|
|
|
Purchase accounting
adjustments (2)
|
|
(217)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(217)
|
|
|
Total
revenue
|
|
$
|
120,120
|
|
|
|
$
|
23,585
|
|
|
|
$
|
(3,991)
|
|
|
|
$
|
139,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Transformation Services
|
|
$
|
10,235
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
10,235
|
|
|
Adjusted Platform and
Operations Services
|
|
96,534
|
|
|
|
—
|
|
|
|
—
|
|
|
|
96,534
|
|
|
Adjusted Services
Revenue
|
|
106,769
|
|
|
|
—
|
|
|
|
—
|
|
|
|
106,769
|
|
|
Adjusted
Revenue
|
|
106,769
|
|
|
|
—
|
|
|
|
—
|
|
|
|
106,769
|
|
|
Purchase accounting
adjustments (2)
|
|
(531)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(531)
|
|
|
Total
revenue
|
|
$
|
106,238
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
106,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
|
|
|
|
Services
|
|
True
Health
|
Total
|
|
Three months ended
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
6,966
|
|
|
|
$
|
947
|
|
|
|
7,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(4,774)
|
|
|
|
—
|
|
|
|
(4,774)
|
|
|
|
|
|
(1)
|
Adjustment to
Adjusted Transformation Services Revenue was approximately $3.7
million and the adjustment to Adjusted Transformation and
Operations Services Revenue was approximately $0.8 million. See
"Non-GAAP Financial Measures" above for more information on
adjustments pertaining to the implementation of ASC 606.
|
(2)
|
Purchase accounting
adjustments pertain to platform and operations services revenue.
There were no purchase accounting adjustments in relation to
transformations services or premiums revenue.
|
Evolent Health,
Inc. Reconciliation of Adjusted EBITDA to Net Income
(Loss) Attributable to Evolent Health,
Inc. (unaudited)
|
|
|
(in
thousands)
|
For the
Three
|
|
Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Net Income (Loss)
Attributable to
|
|
|
|
Evolent Health,
Inc.
|
$
|
(13,626)
|
|
|
$
|
(18,012)
|
|
Less:
|
|
|
|
Interest
income
|
1,072
|
|
|
185
|
|
Interest
expense
|
(853)
|
|
|
(954)
|
|
(Provision) benefit
for income taxes
|
(3)
|
|
|
(405)
|
|
Depreciation and
amortization expenses
|
(9,496)
|
|
|
(6,615)
|
|
EBITDA
|
(4,346)
|
|
|
(10,223)
|
|
Less:
|
|
|
|
Income (loss) from
equity affiliates
|
(131)
|
|
|
(522)
|
|
Loss on change in
fair value
|
|
|
|
of contingent
consideration
|
(100)
|
|
|
—
|
|
Other income
(expense), net
|
(18)
|
|
|
2
|
|
Net (income) loss
attributable to
|
|
|
|
non-controlling interests
|
439
|
|
|
5,137
|
|
ASC 606 transition
adjustments
|
(4,498)
|
|
|
—
|
|
Purchase accounting
adjustments
|
(217)
|
|
|
(531)
|
|
Stock-based
compensation expense
|
(3,795)
|
|
|
(5,104)
|
|
Severance
costs
|
(1,594)
|
|
|
—
|
|
Amortization of
contract cost assets
|
(561)
|
|
|
—
|
|
Transaction
costs
|
(1,784)
|
|
|
(4,431)
|
|
Adjusted
EBITDA
|
$
|
7,913
|
|
|
$
|
(4,774)
|
|
Evolent Health,
Inc. Reconciliation of Adjusted Earnings (Loss) Available
to Class A and Class B Shareholders to Earnings (Loss)
Available to Common Shareholders (unaudited)
|
|
(in thousands, except
per share data)
|
For the
Three
|
|
Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Earnings (Loss)
Available to
|
|
|
|
Common
Shareholders - Basic and Diluted (a)
|
$
|
(13,626)
|
|
|
$
|
(18,012)
|
|
Less:
|
|
|
|
Income (loss) from
equity affiliates
|
(131)
|
|
|
(522)
|
|
(Provision) benefit
for income taxes
|
7
|
|
|
(420)
|
|
Loss on change in
fair value
|
|
|
|
of contingent
consideration
|
(100)
|
|
|
—
|
|
Net (income) loss
attributable to
|
|
|
|
non-controlling interests
|
439
|
|
|
5,137
|
|
ASC 606 Transition
Adjustment
|
(4,498)
|
|
|
—
|
|
Purchase accounting
adjustments
|
(2,853)
|
|
|
(2,900)
|
|
Stock-based
compensation expense
|
(3,795)
|
|
|
(5,104)
|
|
Severance
costs
|
(1,594)
|
|
|
—
|
|
Amortization of
contract cost assets
|
(561)
|
|
|
—
|
|
Transaction
costs
|
(1,784)
|
|
|
(4,431)
|
|
Adjusted Earnings
(Loss) Available
|
|
|
|
to Class A and
Class B Shareholders (b)
|
$
|
1,244
|
|
|
$
|
(9,772)
|
|
|
|
|
|
Earnings (Loss)
per Share Available to
|
|
|
|
Common
Shareholders - Basic and Diluted (a) (1)
|
$
|
(0.18)
|
|
|
$
|
(0.34)
|
|
|
|
|
|
Adjusted Earnings
(Loss) per Share Available
|
|
|
|
to Class A and
Class B Shareholders (b) (2)
|
$
|
0.02
|
|
|
$
|
(0.14)
|
|
|
|
|
|
Weighted-average
common shares - basic
|
75,375
|
|
|
52,599
|
|
Weighted-average
common shares - diluted
|
75,375
|
|
|
52,599
|
|
Adjusted
Weighted-Average Class A
|
|
|
|
and Class B Shares
(3)
|
77,516
|
|
|
67,946
|
|
(1)
|
For periods of net
loss, shares used in both the basic and diluted earnings per share
calculation represent basic shares as using diluted shares would be
anti-dilutive.
|
(2)
|
Represents Adjusted
Earnings (Loss) Available to Class A and Class B Shareholders
divided by Adjusted Weighted-Average Class A and Class B Shares as
described in footnote 3 below.
|
(3)
|
Represents the
weighted-average common shares (diluted) adjusted to include, in
periods of net loss, the dilutive or potentially dilutive effect of
the assumed conversion of Class B common shares to Class A common
shares. See the reconciliation of Adjusted Weighted-Average Class A
and Class B Shares to diluted weighted-average common shares on the
following page.
|
Evolent Health,
Inc. Reconciliation of Adjusted Weighted-Average Class A
and Class B Shares to Diluted Weighted-Average Common
Shares (unaudited)
|
|
(in
thousands)
|
For the
Three
|
|
Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Weighted-average
common shares - diluted
|
75,375
|
|
|
52,599
|
|
Assumed conversion of
Class B common
|
|
|
|
shares to Class A
common shares
|
2,141
|
|
|
15,347
|
|
Adjusted
Weighted-Average Class A and Class B Shares
|
77,516
|
|
|
67,946
|
|
Evolent Health,
Inc. Guidance
Reconciliation (unaudited)
|
|
(in
thousands)
|
For the
Three
|
For the
Twelve
|
|
Months
Ended
|
Months
Ended
|
|
June
30,
|
December
31,
|
|
|
2018
|
|
|
2018
|
|
Services
revenue
|
|
$
|
122,800
|
|
|
|
$
|
497,200
|
|
|
Purchase accounting
adjustments
|
|
200
|
|
|
|
800
|
|
|
ASC 606 transition
adjustments
|
|
—
|
|
|
|
4,500
|
|
|
Adjusted Services
Revenue
|
|
123,000
|
|
|
|
502,500
|
|
|
True Health premiums
revenue
|
|
23,000
|
|
|
|
92,500
|
|
|
Intersegment
eliminations
|
|
(5,000)
|
|
|
|
(20,000)
|
|
|
Adjusted
Revenue
|
|
$
|
141,000
|
|
|
|
$
|
575,000
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to
|
|
|
|
|
|
|
Evolent Health,
Inc.
|
|
$
|
(12,100)
|
|
|
|
$
|
(47,000)
|
|
|
Less:
|
|
|
|
|
|
|
Interest
income
|
|
900
|
|
|
|
3,500
|
|
|
Interest
expense
|
|
(1,000)
|
|
|
|
(4,000)
|
|
|
Depreciation and
amortization expenses
|
|
(9,200)
|
|
|
|
(37,000)
|
|
|
EBITDA
|
|
(2,800)
|
|
|
|
(9,500)
|
|
|
Less:
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
|
(125)
|
|
|
|
(500)
|
|
|
Net (income) loss
attributable to
|
|
|
|
|
|
|
non-controlling interests
|
|
(175)
|
|
|
|
(1,000)
|
|
|
Stock-based
compensation expense
|
|
(5,000)
|
|
|
|
(20,000)
|
|
|
Severance
costs
|
|
(500)
|
|
|
|
(3,000)
|
|
|
Amortization of
contract cost assets
|
|
(500)
|
|
|
|
(2,000)
|
|
|
Transaction
costs
|
|
(500)
|
|
|
|
(3,500)
|
|
|
Adjusted
EBITDA
|
|
$
|
4,000
|
|
|
|
$
|
20,500
|
|
|
The guidance reconciliation provided above reconciles the
midpoint of the respective guidance ranges to the most comparable
GAAP measure.
FORWARD-LOOKING STATEMENTS - CAUTIONARY
LANGUAGE
Certain statements made in this release and in other written or
oral statements made by us or on our behalf are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 ("PSLRA"). A forward-looking statement is a
statement that is not a historical fact and, without limitation,
includes any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain
words like: "believe," "anticipate," "expect,"
"estimate," "aim," "predict," "potential," "continue," "plan,"
"project," "will," "should," "shall," "may," "might" and other
words or phrases with similar meaning in connection with a
discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
trends in our businesses, prospective services, future performance
or financial results and the outcome of contingencies, such as
legal proceedings. We claim the protection afforded by the
safe harbor for forward-looking statements provided by the
PSLRA.
These statements are only predictions based on our current
expectations and projections about future events.
Forward-looking statements involve risks and uncertainties that may
cause actual results, level of activity, performance or
achievements to differ materially from the results contained in the
forward-looking statements. Risks and uncertainties that may
cause actual results to vary materially, some of which are
described within the forward-looking statements, include, among
others:
- the structural change in the market for health care in
the United States;
- uncertainty in the health care regulatory framework;
- uncertainty in the public exchange market;
- the uncertain impact of Centers for Medicare and Medicaid
Services waivers to Medicaid rules;
- the uncertain impact of the results of the 2018 congressional,
state and local elections, as well as subsequent elections, may
have on health care laws and regulations;
- our ability to effectively manage our growth;
- the significant portion of revenue we derive from our largest
partners, and the potential loss, termination or renegotiation of
customer contracts;
- our ability to offer new and innovative products and
services;
- risks related to completed and future acquisitions, investments
and alliances, including the acquisition of assets from New Mexico
Health Connections ("NMHC") and the acquisitions of Valence Health,
Inc., excluding Cicerone Health Solutions, Inc. ("Valence Health"),
and Aldera Holdings, Inc. ("Aldera"), which may be difficult to
integrate, divert management resources, result in unanticipated
costs or dilute our stockholders;
- certain risks and uncertainties associated with the acquisition
of assets from NMHC and the acquisition of Valence Health,
including future revenues may be less than expected, the timing and
extent of new lives expected to come onto the platform may not
occur as expected and the expected results of Evolent may not be
impacted as anticipated;
- the growth and success of our partners, which is difficult to
predict and is subject to factors outside of our control, including
premium pricing reductions, selection bias in at risk membership
and the ability to control and, if necessary, reduce health care
costs, particularly in New
Mexico;
- our ability to attract new partners;
- the increasing number of risk-sharing arrangements we enter
into with our partners;
- our ability to recover the significant upfront costs in our
partner relationships;
- our ability to estimate the size of our target market;
- our ability to maintain and enhance our reputation and brand
recognition;
- consolidation in the health care industry;
- competition which could limit our ability to maintain or expand
market share within our industry;
- risks related to governmental payor audits and actions,
including whistleblower claims;
- our ability to partner with providers due to exclusivity
provisions in our contracts;
- restrictions and penalties as a result of privacy and data
protection laws;
- adequate protection of our intellectual property, including
trademarks;
- any alleged infringement, misappropriation or violation of
third-party proprietary rights;
- our use of "open source" software;
- our ability to protect the confidentiality of our trade
secrets, know-how and other proprietary information;
- our reliance on third parties and licensed technologies;
- our ability to use, disclose, de-identify or license data and
to integrate third-party technologies;
- data loss or corruption due to failures or errors in our
systems and service disruptions at our data centers;
- online security risks and breaches or failures of our security
measures;
- our reliance on Internet infrastructure, bandwidth providers,
data center providers, other third parties and our own systems for
providing services to our users;
- our reliance on third-party vendors to host and maintain our
technology platform;
- our ability to contain health care costs, implement increases
in premium rates on a timely basis, maintain adequate reserves for
policy benefits or maintain cost effective provider
agreements;
- the risk of a significant reduction in the enrollment in our
health plan;
- our dependency on our key personnel, and our ability to
attract, hire, integrate and retain key personnel;
- the risk of potential future goodwill impairment on our results
of operations;
- our indebtedness and our ability to obtain additional
financing;
- our ability to achieve profitability in the future;
- the requirements of being a public company;
- our adjusted results may not be representative of our future
performance;
- the risk of potential future litigation;
- our holding company structure and dependence on distributions
from Evolent Health LLC;
- our obligations to make payments to certain of our pre-IPO
investors for certain tax benefits we may claim in the future;
- our ability to utilize benefits under the tax receivables
agreement described herein;
- our ability to realize all or a portion of the tax benefits
that we currently expect to result from past and future exchanges
of Class B common units of Evolent Health LLC for our Class A
common stock, and to utilize certain tax attributes of Evolent
Health Holdings and an affiliate of TPG;
- distributions that Evolent Health LLC will be required to make
to us and to the other members of Evolent Health LLC;
- our obligations to make payments under the tax receivables
agreement that may be accelerated or may exceed the tax benefits we
realize;
- different interests among our pre-IPO investors, or between us
and our pre-IPO investors;
- the terms of agreements between us and certain of our pre-IPO
investors;
- the potential volatility of our Class A common stock
price;
- the potential decline of our Class A common stock price if a
substantial number of shares are sold or become available for sale
or if a large number of Class B common units are exchanged for
shares of Class A common stock;
- provisions in our second amended and restated certificate of
incorporation and amended and restated by-laws and provisions of
Delaware law that discourage or
prevent strategic transactions, including a takeover of us;
- the ability of certain of our investors to compete with us
without restrictions;
- provisions in our second amended and restated certificate of
incorporation which could limit our stockholders' ability to obtain
a favorable judicial forum for disputes with us or our directors,
officers or employees;
- our intention not to pay cash dividends on our Class A common
stock;
- our ability to remediate the material weakness in our internal
control over financial reporting;
- our expectations regarding the additional management attention
and costs that will be required as we transition from an "emerging
growth company" to a "large accelerated filer"; and
- our lack of public company operating experience.
The risks included here are not exhaustive. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance or achievements. Our Annual Report on Form 10-K
for the year ended December 31, 2017,
and other documents filed with the SEC include additional factors
that could affect our businesses and financial
performance. Moreover, we operate in a rapidly changing and
competitive environment. New risk factors emerge from time to time,
and it is not possible for management to predict all such risk
factors.
Further, it is not possible to assess the effect of all risk
factors on our businesses or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. In addition, we disclaim any
obligation to update any forward-looking statements to reflect
events or circumstances that occur after the date of this
release.
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SOURCE Evolent Health