CHICAGO, May 05, 2020 (GLOBE NEWSWIRE) — R1 RCM Inc. (NASDAQ: RCM), a leading provider of technology-enabled revenue cycle management services to healthcare providers, today announced results for the three months ended March 31, 2020.
First Quarter 2020 Results:Revenue of $320.5 million, up $44.6 million and 16.2% compared to the same period last year
 GAAP net income of $18.2 million, compared to net income of $0.2 million in the same period last year
 Adjusted EBITDA of $61.6 million, up $28.2 million compared to the same period last year“I am grateful to all of our employees for their positive attitude and efforts to help our healthcare provider customers in the current environment. The R1 team has mobilized quickly, demonstrating a steadfast commitment to the success of our customers and the patients they serve,” said Joe Flanagan, President and Chief Executive Officer of R1. “While COVID-19 has resulted in a near-term decline in patient volumes, we are prepared to successfully navigate a variety of scenarios while simultaneously ensuring R1 is positioned for sustained long-term growth.”“I am pleased with our team’s continued focus on execution which helped drive solid first quarter results,” added Richard Evans, Interim Chief Financial Officer and Chief Accounting Officer. “Our strong business model, balance sheet, and the actions we are taking give us the confidence to be able to weather the ongoing crisis and emerge as a leaner and more efficient company that is well positioned to drive continued strong performance for our customers as well as our shareholders.”OutlookAs a result of the uncertainty created by COVID-19 on the healthcare industry and broader US economy, the company is suspending prior financial guidance provided on February 20, 2020. The company will continue to share near-term updates and expects to provide updated 2020 guidance when there is improved visibility into revenues for the second half of the year.Conference Call and Webcast DetailsR1’s management team will host a conference call today at 8:00 a.m. Eastern Time to discuss its financial results and business outlook. To participate, please dial 833-968-2190 (778-560-2796 outside the U.S. and Canada) using conference code number 3155137. A live webcast and replay of the call will be available at the Investor Relations section of the Company’s web site at ir.r1rcm.com.Non-GAAP Financial MeasuresIn order to provide a more comprehensive understanding of the information used by R1’s management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial performance measures, including adjusted EBITDA and net debt. Adjusted EBITDA is defined as GAAP net income before net interest income/expense, income tax provision/benefit, depreciation and amortization expense, share-based compensation expense, expense arising from debt extinguishment, strategic initiatives costs, transitioned employee restructuring expense, digital transformation office expenses, and certain other items. Net debt is defined as debt less cash and cash equivalents, inclusive of restricted cash.Our board of directors and management team use adjusted EBITDA as (i) one of the primary methods for planning and forecasting overall expectations and for evaluating actual results against such expectations and (ii) a performance evaluation metric in determining achievement of certain executive incentive compensation programs, as well as for incentive compensation programs for employees.Tables 4 through 8 present a reconciliation of GAAP financial measures to non-GAAP financial measures, including adjusted EBITDA. Adjusted EBITDA should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.Forward Looking StatementsThis press release includes information that may constitute “forward-looking statements,” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future, not past, events and often address our expected future growth, plans and performance or forecasts. These forward-looking statements are often identified by the use of words such as “anticipate,” “believe,” “designed,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “will,” or “would,” and similar expressions or variations, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about the potential impacts of the COVID-19 pandemic, our strategic initiatives, our capital plans, our costs, our ability to successfully deliver on our commitments to our customers, our ability to deploy new business as planned, our ability to successfully implement new technologies, our future financial performance, and our liquidity. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. We do not undertake to update our forward-looking statements except to the extent required by applicable law. Readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by these cautionary statements. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to, the severity, magnitude and duration of the COVID-19 pandemic; responses to the pandemic by the government and healthcare providers and the direct and indirect impacts of the pandemic on our customers and personnel; the disruption of national, state and local economies as a result of the pandemic; the impact of the pandemic on our financial results, including possible lost revenue and increased expenses; and the factors discussed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2019 and any other periodic reports that the Company files with the Securities and Exchange Commission.About R1 RCMR1 is a leading provider of technology-enabled revenue cycle management services which transform a health system’s revenue cycle performance across settings of care. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.comContact:R1 RCM Inc.Investor Relations:Atif Rahim
312-324-5476
[email protected]Media Relations:Natalie Joslin
678-585-1206
[email protected]


n.m. – not meaningful


 

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