P3 Health Partners Inc (PIII, Financial) released its 8-K filing on August 7, 2024, detailing its financial results for the second quarter ended June 30, 2024. P3 Health Partners Inc is a patient-centered and physician-led population health management company that focuses on improving patient outcomes, lowering costs, and enhancing the healthcare experience.
Performance Overview
In the second quarter of 2024, P3 Health Partners Inc reported total revenue of $379.2 million, a 15% increase from $329.1 million in the same period last year. However, this figure fell short of the analyst estimate of $383.47 million. The company's capitated revenue also grew by 15% to $374.3 million, up from $325.6 million in the prior year.
Despite the revenue growth, P3 Health Partners Inc faced challenges in profitability. The gross profit for the quarter was $14.0 million, down from $26.8 million in the previous year. The net loss widened slightly to $28.8 million compared to $27.6 million in Q2 2023. Adjusted EBITDA showed a loss of $8.8 million, a significant decline from the $0.2 million adjusted EBITDA reported in the same quarter last year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $379.2 million | $329.1 million |
| Capitated Revenue | $374.3 million | $325.6 million |
| Gross Profit | $14.0 million | $26.8 million |
| Net Loss | $28.8 million | $27.6 million |
| Adjusted EBITDA | -$8.8 million | $0.2 million |
Balance Sheet and Cash Flow
As of June 30, 2024, P3 Health Partners Inc reported total assets of $892.8 million, up from $861.0 million at the end of 2023. The company’s cash and restricted cash increased to $78.2 million from $40.9 million, reflecting a successful capital raise during the quarter.
On the liabilities side, total current liabilities rose to $352.3 million from $299.4 million, driven by an increase in claims payable and accrued interest. The company also reported a significant increase in long-term debt, which stood at $133.1 million, up from $108.3 million at the end of 2023.
Management Commentary
"In the second quarter, we experienced continued growth in our top line while simultaneously enhancing our balance sheet through a successful capital raise," said Aric Coffman, CEO of P3. "Building on P3’s key strengths, I have identified several initiatives during my first 90 days as CEO that will further enhance our capabilities and help achieve sustainable profitability."
Analysis and Outlook
P3 Health Partners Inc's revenue growth is a positive indicator of its expanding market presence and the effectiveness of its population health management model. However, the decline in gross profit and the widening net loss highlight ongoing challenges in cost management and profitability. The company's increased liabilities and long-term debt also pose potential risks that need to be monitored closely.
For the full fiscal year 2024, P3 Health Partners Inc has provided guidance with total revenues expected to range between $1.45 billion and $1.55 billion. The company also anticipates a medical margin between $230 million and $250 million, with an adjusted EBITDA ranging from $20 million to $40 million.
Value investors and potential GuruFocus.com members can find more detailed financial data and analysis on P3 Health Partners Inc (PIII, Financial) by visiting the 8-K filing.
Explore the complete 8-K earnings release (here) from P3 Health Partners Inc for further details.
