CARESPAN HEALTH, INC. DELIVERS RECORD 2021 RESULTS WITH 67.4% YOY REVENUE GROWTH
VANCOUVER, BC , May 5, 2022 /CNW/ – CareSpan Health, Inc. (TSXV: CSPN) (the “Company” or “CareSpan” ), a company addressing the shortage in primary care and mental health through its provider networks, American-APN and American-MedPsych, and its leading “Clinic-in-the-Cloud” platform, is pleased to announce its audited consolidated annual results for the year ended December 31 , 2021. All amounts are expressed in U.S. dollars.
Rembert de Villa , Chief Executive Officer of the Company stated, “our top line results in 2021 validates our focus on the underserved and leveraging Nurse Practitioners to address the shortage in primary care and mental health in the United States. We ended 2021 with 81 providers in our networks, compared to 50 providers at the end of 2020, representing 62% growth. Billable patients’ visits grew 65%, from 24,600 in 2020 to 40,600 in 2021, driven by the growth in number of network providers and number of patient visits per provider. In addition, we started to see initial revenue flow from the disability assessment contract for U.S. military veterans, as participating providers are credentialed and start to see beneficiaries. Our business thesis and strategy—enabling Nurse Practitioners and mental health providers with leading-edge digital technology and business services— was validated in 2021 and provided us the experience and capability set to scale the business going forward.”
Year-End 2021 Annual Financial Highlights:
- CareSpan delivered record revenues of US$5.75 million in 2021, up 67.4% over 2020.
- Revenue growth was driven by 62% growth in number of in-network providers, from 50 to 81 at the end of 2020 and 2021, respectively, as well as 65% growth in patient encounters from 24,600 to 40,600 in the same period.
- Adjusted EBIDTA loss for 2021 was $(3,321,815) compared to loss of $(2,205,757) in 2020.
- The Company’s cash balance was $948,662 as of December 31, 2021 compared to $1,474,177 as of the end of 2020.
Fourth Quarter 2021 Financial Highlights:
- Fourth quarter 2021 revenues were $2,046,853 similar to $2,034,301 in Q4 2020. The Q4 2020 revenue number was driven primarily by the large increase in patient visits resulting from COVID-19 during that period.
- Comprehensive loss for the quarter was $(2,541,647) compared to $(2,527,494) in 2020.
- Adjusted EBIDTA loss for the quarter was $(660,666) , compared to $(1,244,851 during the fourth quarter of 2020.
Fourth Quarter 2021 Business Highlights
- The Company added 21 providers to its networks, American-APN and American‑MedPsych, ending the fourth quarter at 81 up from the 60 providers as of the end of the third quarter 2021. This demonstrated continue traction in the growth of our networks.
- In November 2021 , CareSpan’s American-APN provider network started to see the first group of Nurse Practitioners credentialed for U.S. military veterans’ disability assessments.
- The Company also closed the previously-announced Qualifying Transaction and completed the concurrent financing of C$2,297,947.40 through the issuance of an aggregate of 3,282,782 subscription receipts at a price of C$0.70 per subscription receipt.
- The Company commenced trading on the TSX Venture Exchange on November 26, 2021 under the symbol “CSPN.”
Events Subsequent to December 31, 2021
- In March 2022 , CareSpan launched its Remote Patient Monitoring (” RPM “) service with the enrollment of the first 100 patients. RPM is a critical value-add service that allows clinicians to monitor vital signs of their enrolled patients (mainly patients with chronic illness) on a continuous and regular basis using digital devices and CareSpan’s digital health platform. The Company plans to enroll about 2000 patients in the service in 2022. This will begin to be an important contributor of both revenue and profitability.
- On April 13, 2022 , the Company closed a non-brokered private placement financing for gross proceeds of C$1,185,000 through the issuance of 3,385,714 common shares in the capital of the Company.
- On April 22, 2022 , the Company entered into debt settlement agreements with three certain arms-length creditors (together, the ” Creditors “, and each a ” Creditor “) to settle US$193,461.71 , C$21,818.30 , and C$16,000.00 (collectively, the ” Debt Settlement “) in respective debts for services provided by the Creditors to the Company.
- On April 25, 2022 , the Company announced that the number of clinicians signed to its provider networks has crossed 100. This marks an important milestone in the Company’s growth as it pursues its mission to provide solutions to the primary care shortage in the United States.
After have its business model validated in 2021, CareSpan is focused on executing its growth strategy in 2022 and beyond. This growth plan centers on the following:
- Continuing to recruit clinicians (mainly Nurse Practitioners) to grow and expand the reach of our provider networks, American-APN and American MedPsych;
- Enrolling patients for the RPM service and leveraging CareSpan’s integrated digital care platform to achieve better health outcomes, primarily for chronic care and Medicare patients;
- Ramping the implementation of the disability assessment contract for U.S. military veterans;
- and Improving individual practice revenue through improved billing and collections, patient acquisition and engagement, and new payor contracts.
About CareSpan Health, Inc.
CareSpan is a healthcare technology and services company incorporated in British Columbia . CareSpan’s proprietary “Clinic-in-the Cloud” is a clinical workflow driven platform designed by doctors that integrates remote patient monitoring, diagnostic tools, the patient’s electronic health record, care collaboration capabilities, patient engagement and e-prescribing and lab ordering. CareSpan’s platform seamlessly supports both in-person and virtual/telehealth care. CareSpan is using this platform combined with essential business services to build provider networks across the U.S. that deliver primary and chronic care, and urgent care as well as behavioral health care.
About American-APN and American-MedPsych
American-APN is one of the first professional “group practices without walls” that brings highly qualified Nurse Practitioners to those in need of health care under a collaborative care system that uses digital technologies. American-APN was created for and by advanced practice nurses and NPs (Nurse Practitioners). It is operated exclusively by its nurse practitioner membership with its own executive leadership and board of directors.
American-MedPsych brings together behavioral health specialists in their own “practice without walls,” allowing them to collaborate with American-APN and other primary care providers to address the growing behavioral health shortage in the United States .
American-MedPsych is a growing national group practice of behavioral specialists delivering care using the CareSpan Clinic and supported by CareSpan Integrated Network’s management services organization. American-MedPsych specialists uses sophisticated digital care tools in collaboration with primary care counterparts to manage reinforcing conditions such as depression and diabetes, substance abuse and pain, stress, and job performance, to alleviate suffering and improve outcomes.
Members of both networks benefit from the suite of technology and business services and solutions offered by CareSpan Integrated Networks.
ON BEHALF OF THE BOARD OF DIRECTORS:
Rembert de Villa
Chief Executive Officer
For further information please visit:
http://www.carespanhealth.com , http://www.americanapn.com and http://www.americanmedpsych.com .
Use of Non-IFRS Measures
This press release refers to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to Adjusted EBITDA (as defined herein). These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of Company for the reasons outlined below.
Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ( “Adjusted EBITDA” ) as a key financial metric to evaluate Company’s operating performance as a complement to results provided in accordance with IFRS. The term “Adjusted EBITDA”, as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs.
We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Company. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Company’s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of Company’s operating performance. It is a key measure used by Company’s management and board of directors to understand and evaluate Company’s operating performance, to prepare annual budgets and to help develop operating plans.
This news contains “forward-looking statements” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”) which reflect the current expectations of management of the company’s future growth, results of operations, performance, and business prospects and opportunities, including the statements made above with respect to: (i) the Company’s anticipation of scaling the business going forward; (ii) the Company continuing to recruit Nurse Practitioners; (iii) enrolling patients in RPM; (iv) the Company enrolling 2,000 patients in 2022 in their RPM services which will be an important revenue and profitability factor; and (v) ramping the implementation of the disability assessment contract for U.S. military veterans; and (vi) improving individual practice revenue through improved billing and collections, patient acquisition and engagement and new payor contracts. Forward-looking statements are frequently, but not always, identified by words such as “may”, “would”, “could”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential for”, “intend” and similar expressions or the negative of these terms or other comparable terminology, although these words may not be present in all forward-looking statements.
Forward-looking statements are based on management’s assumptions as at the date of the forward-looking statements are provided, including but not limited to the following: the ability of the Company to execute its growth plans and business strategies; the ability of the Company to secure new contracts and assignments; the growth of the NPs within CareSpan’s network and acquiring patients for its RPM services; and the ability of the Company to generate meaningful revenue from such assignments and future engagements. Though management believes that its assumptions are reasonable in the circumstances, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to differ materially from all or any of the future results, performance or achievements expressed or implied by forward-looking statements. Risk factors that could cause the Company’s actual results, performance, or achievements to differ from the forward-looking statements in this news release include, but may not be limited to: general market and economic risk; any necessary regulatory approvals required (if applicable) for the Company to deliver the services under its previous engagements; the ability of the Company’s management to execute its strategy; unexpected or adverse regulatory changes in the healthcare space; and the ability of the Company to attract and retain new NPs; the Company’s ability to attract new patients for its RPM services. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CareSpan Health, Inc.