Pays Off Credit Line, Plans to Resume Preferred Dividends in Q1 2025
SOMERSET, N.J., Nov. 12, 2024 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and generative AI solutions for medical practices and health systems nationwide, announced financial and operational results for the quarter ended September 30, 2024 including that it has fully paid its credit line and that it plans to resume dividends on its Series A and B Preferred Stock on March 15, 2025. The Company's management will conduct a conference call with related slides today at 8:30 a.m. Eastern Time to discuss these results and management's outlook for the year.
Third Quarter 2024 Highlights
- GAAP net income of $3.1 million, compared to a net loss of $2.7 million in Q3 2023
- Adjusted net income of $3.5 million, compared to $200 thousand in Q3 2023, an increase of 1,610%
- Adjusted EBITDA of $6.8 million, compared to $3.2 million in Q3 2023, an increase of 111%
- Free cash flow of $5.4 million, compared to $1.1 million in Q3 2023, an increase of 405%, highest ever achieved by the Company
- Revenue of $28.5 million, compared to $29.3 million in Q3 2023, a decrease of 2.5%
- GAAP net income of $4.6 million, compared to a net loss of $5.0 million in the same period last year
- Adjusted net income of $6.6 million, compared to $4.0 million in the same period last year, an increase of 68%
- Adjusted EBITDA of $16.9 million, compared to $11.3 million in the same period last year, an increase of 50%
- Free cash flow of $10.3 million, compared to $2.4 million in the same period last year, an increase of 328%, highest ever achieved by the Company
- Revenue of $82.6 million, compared to $88.6 million in the same period last year, a decrease of 6.8%
- Plans to resume dividends on March 15, 2025 for Series A and B Preferred Stock
- Fully repaid the Silicon Valley Bank ("SVB”) credit facility balance, which was $10 million on January 1, 2024, utilizing internally generated free cash flow
- Reduced the SVB credit facility limit to $10 million, thereby reducing banking fees by $140,000
- CareCloud's Series A Preferred Stock Special Proxy was approved by the shareholders, which will provide additional protection to Series A shareholders in the future, and eventually reduce cash requirements for future dividend payments by approximately $2.5 million a year
"We are succeeding at transforming our cost structure and positioning CareCloud for future growth,” said Stephen Snyder, President of CareCloud. "We are very pleased to report that we have improved year-over-year free cash flow by 328%, a new record for CareCloud. Futher, we anticipate resuming dividend payments on our preferred shares in March 2025, achieving a significant goal we articulated at the beginning of the year.”
Third Quarter 2024 Financial Results
Revenue for the third quarter 2024 was $28.5 million, compared to $29.3 million for the third quarter of 2023, the majority of this slight decline was due to the non-recurring professional services.
Third quarter 2024 GAAP net income was $3.1 million, as compared to a net loss of $2.7 million in the same period last year. The GAAP net loss was $0.04 per share, based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends earned, whether or not they were declared or paid during the quarter.
Adjusted EBITDA for the third quarter 2024 was $6.8 million, or 24% of revenue, compared to $3.2 million in the same period last year, an increase of 111%.
Norman Roth, Interim Chief Financial Officer and Corporate Controller, commented "this is our second consecutive quarter returning to positive GAAP net income and our largest quarterly net income since Q4 2021. It was also the highest quarterly adjusted EBITDA we have reported in two years. We were able to use the profits and cash flows we generated to fully pay the outstanding balance on our Silicon Valley Bank line of credit. This will reduce interest costs in the future and allowed us to reduce the size of our $25 million line of credit, giving us additional financial flexibility, with no concern about needing to satisfy bank covenants. We have accomplished what we set out to achieve in 2024, leaving ourselves in a strong position for 2025 to execute on our strategic and growth objectives.”
Nine Month 2024 Financial Results
Revenue for the first nine months of 2024 was $82.6 million, compared to $88.6 million in the first nine months of 2023.
For the first nine months of 2024, the Company's GAAP net income was $4.6 million, compared to a GAAP net loss of $5.0 million in the first nine months of 2023.
During this period, adjusted EBITDA was $16.9 million, an increase of $5.6 million from $11.3 million in the same period last year.
Cash Balances and Capital
As of September 30, 2024, the Company had approximately $2.8 million of cash. Net working capital was $732,000. During the first nine months of 2024, cash flow from operations was approximately $15.4 million, compared to $11.7 million in the same period last year.
2024 Full-Year Guidance
CareCloud is reaffirming analyst expectations for its revenue guidance of $109 - $111 million and increasing its adjusted EBITDA guidance to $23 - $25 million for the fiscal year ending December 31, 2024.
Conference Call Information
CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the third quarter 2024 results. The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing (201) 389-0920 and referencing "CareCloud Third Quarter 2024 Earnings Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.
A replay of the conference call and related presentation slides will be available approximately one hour after conclusion of the call at the same link. An audio-only option can also be accessed by dialing (412) 317-6671 and providing the access code 13749163.
Use of Non-GAAP Financial Measures
In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.
Forward-Looking Statements
This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may,” "might,” "will,” "shall,” "should,” "could,” "intends,” "expects,” "plans,” "goals,” "projects,” "anticipates,” "believes,” "seeks,” "estimates,” "forecasts,” "predicts,” "possible,” "potential,” "target,” "approximately,” or "continue” or the negative of these terms or other comparable terminology.
Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.
These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry's) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company's ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies' products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled "Risk Factors” in the Company's filings with the Securities and Exchange Commission.
The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About CareCloud
CareCloud (Nasdaq: CCLD, CCLDP, CCLDO) brings disciplined innovation and generative AI solutions to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at www.carecloud.com.
Follow CareCloud on LinkedIn, X and Facebook.
For additional information, please visit our website at www.carecloud.com. To listen to video presentations by CareCloud's management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.
SOURCE CareCloud
Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
Investor Contact:
Stephen Snyder
President
CareCloud, Inc.
CARECLOUD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share and per share amounts)
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,782 | $ | 3,331 | ||||
| Accounts receivable - net | 11,992 | 11,888 | ||||||
| Contract asset | 4,617 | 5,094 | ||||||
| Inventory | 514 | 465 | ||||||
| Current assets - related party | 16 | 16 | ||||||
| Prepaid expenses and other current assets | 2,741 | 2,449 | ||||||
| Total current assets | 22,662 | 23,243 | ||||||
| Property and equipment - net | 4,894 | 5,317 | ||||||
| Operating lease right-of-use assets | 3,310 | 4,365 | ||||||
| Intangible assets - net | 20,106 | 25,074 | ||||||
| Goodwill | 19,186 | 19,186 | ||||||
| Other assets | 536 | 641 | ||||||
| TOTAL ASSETS | $ | 70,694 | $ | 77,826 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,567 | $ | 5,798 | ||||
| Accrued compensation | 2,545 | 3,444 | ||||||
| Accrued expenses | 5,138 | 5,065 | ||||||
| Operating lease liability (current portion) | 1,424 | 1,888 | ||||||
| Deferred revenue (current portion) | 1,312 | 1,380 | ||||||
| Notes payable (current portion) | 506 | 292 | ||||||
| Dividend payable | 5,438 | 5,433 | ||||||
| Total current liabilities | 21,930 | 23,300 | ||||||
| Notes payable | 29 | 37 | ||||||
| Borrowings under line of credit | - | 10,000 | ||||||
| Operating lease liability | 1,900 | 2,516 | ||||||
| Deferred revenue | 327 | 256 | ||||||
| Total liabilities | 24,186 | 36,109 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Preferred stock, $0.001 par value - authorized 7,000,000 shares. Series A, issued and outstanding 4,526,231 shares at September 30, 2024 and December 31, 2023. Series B, issued and outstanding 1,482,792 and 1,468,792 shares at September 30, 2024 and December 31, 2023, respectively | 6 | 6 | ||||||
| Common stock, $0.001 par value - authorized 35,000,000 shares. Issued 16,962,619 and 16,620,891 shares at September 30, 2024 and December 31, 2023, respectively. Outstanding 16,221,820 and 15,880,092 shares at September 30, 2024 and December 31, 2023, respectively | 17 | 17 | ||||||
| Additional paid-in capital | 121,033 | 120,706 | ||||||
| Accumulated deficit | (69,926 | ) | (74,481 | ) | ||||
| Accumulated other comprehensive loss | (3,960 | ) | (3,869 | ) | ||||
| Less: 740,799 common shares held in treasury, at cost at September 30, 2024 and December 31, 2023 | (662 | ) | (662 | ) | ||||
| Total shareholders' equity | 46,508 | 41,717 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 70,694 | $ | 77,826 | ||||
CARECLOUD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
($ in thousands, except share and per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| NET REVENUE | $ | 28,546 | $ | 29,280 | $ | 82,598 | $ | 88,643 | ||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Direct operating costs | 15,420 | 18,260 | 45,839 | 53,843 | ||||||||||||
| Selling and marketing | 1,375 | 2,337 | 4,809 | 7,529 | ||||||||||||
| General and administrative | 4,378 | 5,482 | 12,127 | 16,518 | ||||||||||||
| Research and development | 800 | 1,260 | 2,768 | 3,523 | ||||||||||||
| Depreciation and amortization | 3,241 | 3,903 | 10,885 | 10,282 | ||||||||||||
| Loss on lease terminations, unoccupied lease charges and restructuring costs | 67 | 8 | 505 | 430 | ||||||||||||
| Total operating expenses | 25,281 | 31,250 | 76,933 | 92,125 | ||||||||||||
| OPERATING INCOME (LOSS) | 3,265 | (1,970 | ) | 5,665 | (3,482 | ) | ||||||||||
| OTHER: | ||||||||||||||||
| Interest income | 17 | 52 | 68 | 124 | ||||||||||||
| Interest expense | (179 | ) | (352 | ) | (832 | ) | (829 | ) | ||||||||
| Other income (expense) - net | 60 | (422 | ) | (227 | ) | (591 | ) | |||||||||
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 3,163 | (2,692 | ) | 4,674 | (4,778 | ) | ||||||||||
| Income tax provision | 41 | 57 | 119 | 204 | ||||||||||||
| NET INCOME (LOSS) | $ | 3,122 | $ | (2,749 | ) | $ | 4,555 | $ | (4,982 | ) | ||||||
| Preferred stock dividend | 3,789 | 3,916 | 9,024 | 11,757 | ||||||||||||
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