EX-99.1 16 d191411dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Selected Historical Combined Financial and Other Data of Cano Health

The following tables summarize PCIH’s consolidated financial data. The summary consolidated statement of operations data for the years ended December 31, 2020 and 2019 and the summary consolidated balance sheet data as of December 31, 2020 are derived from PCIH’s audited consolidated financial statements that are set forth in the Proxy Statement/Prospectus beginning on page F-25 and are incorporated in Item 9.01(a) by reference. The summary consolidated statement of operations data for the three months ended March 31, 2021 and 2020 and the summary consolidated balance sheet data as of March 31, 2021 are derived from PCIH’s unaudited interim consolidated financial statements that are filed as Exhibit 99.2. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of PCIH’s management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair statement of PCIH’s unaudited interim consolidated financial statements.

The summary historical financial data below also includes references to EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. A non-GAAP financial measure is a performance metric that departs from GAAP because it excludes earnings components that are required under GAAP. Other companies may define non-GAAP financial measures differently and, as a result, PCIH’s non-GAAP financial measures may not be directly comparable to those of other companies. The presentation of non-GAAP financial measures provides additional information to investors regarding PCIH’s results of operations and is useful for trending, analyzing and benchmarking the performance and value of PCIH’s business.

Our historical results are not necessarily indicative of future results, and the results for any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. You should read the summary historical financial data below in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Cano Health” filed as Exhibit 99.3, the consolidated financial statements and related notes of Primary Care (ITC) Intermediate Holdings, LLC and Subsidiaries as of December 31, 2020 and 2019 incorporated in Item 9.01(a), and the unaudited condensed consolidated financial statements of Primary Care (ITC) Intermediate Holdings, LLC and Subsidiaries for the three month periods ended March 31, 2021 and 2020 and as of March 31, 2021 and December 31, 2020 filed as Exhibit 99.2.


     Years Ended
December 31,
     Three Months Ended
March 31,
 
(in thousands)    2020      2019      2021      2020  

Revenue:

           

Capitated revenue

   $ 794,164    $ 343,903    $ 267,051    $ 127,716

Fee-for-service and other revenue

     35,203      20,483      13,084      7,582
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     829,367      364,386      280,135      135,298

Operating expenses:

           

Third-party medical costs

     564,987      241,089      195,046      85,313

Direct patient expense

     102,284      43,020      34,287      17,779

Selling, general, and administrative expenses

     103,962      59,148      34,848      20,984

Depreciation and amortization expense

     18,499      6,822      5,846      3,384

Transaction costs and other

     42,604      17,156      8,516      6,238

Fair value adjustment—contingent consideration

     65      2,845      285      —    

Management fees

     916      427      438      214
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     833,317      370,507      279,266      133,912
  

 

 

    

 

 

    

 

 

    

 

 

 

(Loss) income from operations

     (3,950      (6,121      869      1,386

Interest expense

     (34,002      (10,163      (10,626      (3,665

Interest income

     320      319      1      79

Loss on extinguishment of debt

     (23,277      —          —          —    

Fair value adjustment—embedded derivative

     (12,764      —          —          —    

Other expenses

     (450      (250      —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other expense

     (70,173      (10,094      (10,625      (3,586
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss before income tax benefit/(expense)

     (74,123      (16,215      (9,756      (2,200

Income tax benefit/(expense)

     (651      —          (714      12
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss

     (74,774      (16,215      (10,470      (2,188

Net loss attributable to non-controlling interests

     —          (93      —          (4
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss attributable to PCIH

   $ (74,774    $ (16,122    $ (10,470    $ (2,184
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Years Ended
December 31,
     Three Months Ended
March 31,
 
(in thousands)    2020      2019      2021      2020  

Non-GAAP Financial Measures:

           

EBITDA (1)

   $ (21,942    $ 451    $ 6,715    $ 4,770
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (2)

   $   69,697    $   27,209    $   22,811    $    12,920
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

We define EBITDA as net income (loss) before interest, income taxes, depreciation and amortization.

(2)

We define Adjusted EBITDA as EBITDA adjusted to add back the effect of certain expenses, such as stock-based compensation expense, de novo losses, acquisition transaction costs, restructuring and other charges, fair value adjustments to an embedded derivative, and loss on extinguishment of debt. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Cano Health—Non-GAAP Financial Metrics” for more information as to how we define and calculate Adjusted EBITDA and for a reconciliation of net loss, the most comparable measure under U.S. generally accepted accounting principles, or GAAP, to Adjusted EBITDA.


     March 31,      December 31,  
(in thousands)    2021      2020  

Consolidated Balance Sheet Data:

     

Cash and restricted cash

   $ 6,602    $ 33,807

Accounts receivable, net of unpaid service provider costs

   $ 88,007    $ 76,709

Working capital (1)

   $ 23,945      $ 51,755  

Total assets

   $ 616,740    $ 623,546

Notes payable, net of current portion, debt discounts and debt issuance costs

   $ 456,102    $ 456,745

Total members’ capital

   $ 47,144    $ 57,544

 

(1)

We define working capital as current assets less current liabilities.