(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
The |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
99.1 | |||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PERFORMANT FINANCIAL CORPORATION | |||||||||||
By: | /s/Rohit Ramchandani | ||||||||||
Rohit Ramchandani | |||||||||||
Chief Financial Officer |
June 30, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 14,982 | $ | 23,384 | |||||||
Restricted cash | 81 | 81 | |||||||||
Trade accounts receivable | 12,790 | 15,794 | |||||||||
Contract assets | 6,947 | 11,460 | |||||||||
Prepaid expenses and other current assets | 2,982 | 3,665 | |||||||||
Income tax receivable | 3,176 | 3,123 | |||||||||
Total current assets | 40,958 | 57,507 | |||||||||
Property, equipment, and leasehold improvements, net | 10,688 | 10,897 | |||||||||
Goodwill | 47,372 | 47,372 | |||||||||
Right-of-use assets | 602 | 2,057 | |||||||||
Other assets | 975 | 1,000 | |||||||||
Total assets | $ | 100,595 | $ | 118,833 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Current maturities of notes payable, net of unamortized debt issuance costs of $63 and $17, respectively | $ | 1,437 | $ | 983 | |||||||
Accrued salaries and benefits | 6,118 | 6,938 | |||||||||
Accounts payable | 1,195 | 1,262 | |||||||||
Other current liabilities | 1,920 | 2,252 | |||||||||
Contract liabilities | 112 | 438 | |||||||||
Estimated liability for appeals and disputes | 807 | 1,106 | |||||||||
Lease liabilities | 465 | 1,228 | |||||||||
Total current liabilities | 12,054 | 14,207 | |||||||||
Notes payable, net of current portion and unamortized debt issuance costs of $421 and $316, respectively | 9,579 | 18,184 | |||||||||
Lease liabilities | 148 | 1,076 | |||||||||
Other liabilities | 894 | 881 | |||||||||
Total liabilities | 22,675 | 34,348 | |||||||||
Commitments and contingencies (note 3 and note 4) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.0001 par value. Authorized, 500,000 shares at June 30, 2023 and December 31, 2022 respectively; issued and outstanding 76,088 and 75,505 shares at June 30, 2023 and December 31, 2022, respectively | 7 | 7 | |||||||||
Additional paid-in capital | 143,890 | 142,261 | |||||||||
Accumulated deficit | (65,977) | (57,783) | |||||||||
Total stockholders’ equity | 77,920 | 84,485 | |||||||||
Total liabilities and stockholders’ equity | $ | 100,595 | $ | 118,833 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues | $ | 25,485 | $ | 25,681 | $ | 51,214 | $ | 52,764 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Salaries and benefits | 21,710 | 20,903 | 44,159 | 41,342 | ||||||||||||||||||||||
Other operating expenses | 7,376 | 8,081 | 14,445 | 16,212 | ||||||||||||||||||||||
Total operating expenses | 29,086 | 28,984 | 58,604 | 57,554 | ||||||||||||||||||||||
Loss from operations | (3,601) | (3,303) | (7,390) | (4,790) | ||||||||||||||||||||||
Gain on sale of certain recovery contracts | — | 382 | 3 | 382 | ||||||||||||||||||||||
Interest expense | (351) | (216) | (765) | (371) | ||||||||||||||||||||||
Loss before provision for income taxes | (3,952) | (3,137) | (8,152) | (4,779) | ||||||||||||||||||||||
Provision for income taxes | 21 | 32 | 42 | 63 | ||||||||||||||||||||||
Net loss | $ | (3,973) | $ | (3,169) | $ | (8,194) | $ | (4,842) | ||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||||
Basic | $ | (0.05) | $ | (0.04) | $ | (0.11) | $ | (0.07) | ||||||||||||||||||
Diluted | $ | (0.05) | $ | (0.04) | $ | (0.11) | $ | (0.07) | ||||||||||||||||||
Weighted average shares | ||||||||||||||||||||||||||
Basic | 75,752 | 73,502 | 75,629 | 71,698 | ||||||||||||||||||||||
Diluted | 75,752 | 73,502 | 75,629 | 71,698 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (8,194) | $ | (4,842) | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
Loss on disposal of assets and impairment of long-lived assets | 36 | (15) | |||||||||
Depreciation and amortization | 2,512 | 2,260 | |||||||||
Right-of-use assets amortization | 1,455 | 588 | |||||||||
Stock-based compensation | 1,686 | 1,281 | |||||||||
Interest expense from debt issuance costs | 122 | 48 | |||||||||
Gain on sale of certain recovery contracts | (3) | (382) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable | 3,004 | 928 | |||||||||
Contract assets | 4,513 | (1,084) | |||||||||
Prepaid expenses and other current assets | 683 | (257) | |||||||||
Income tax receivable | (53) | (89) | |||||||||
Other assets | 25 | (6) | |||||||||
Accrued salaries and benefits | (820) | (1,081) | |||||||||
Accounts payable | (67) | (161) | |||||||||
Contract liabilities and other current liabilities | (658) | (1,860) | |||||||||
Estimated liability for appeals, disputes, and refunds | (299) | (114) | |||||||||
Lease liabilities | (1,691) | (704) | |||||||||
Other liabilities | 14 | 12 | |||||||||
Net cash provided by (used in) operating activities | 2,265 | (5,478) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property, equipment, and leasehold improvements | (2,339) | (1,589) | |||||||||
Proceeds from sale of certain recovery contracts | 3 | 382 | |||||||||
Net cash used in investing activities | (2,336) | (1,207) | |||||||||
Cash flows from financing activities: | |||||||||||
Repayment of notes payable | (8,000) | (250) | |||||||||
Debt issuance costs paid | (274) | (2) | |||||||||
Taxes paid related to net share settlement of stock awards | (57) | — | |||||||||
Proceeds from exercise of warrants | — | 5,563 | |||||||||
Proceeds from public offering, net of costs | — | — | |||||||||
Net cash (used in) provided by financing activities | (8,331) | 5,311 | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (8,402) | (1,374) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 23,465 | 19,550 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 15,063 | $ | 18,176 | |||||||
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | $ | 14,982 | $ | 15,973 | |||||||
Restricted cash | 81 | 2,203 | |||||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 15,063 | $ | 18,176 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for income taxes | $ | 143 | $ | 238 | |||||||
Cash paid for interest | $ | 721 | $ | 244 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||
Net income (loss) | $ | (3,973) | $ | (3,169) | $ | (8,194) | $ | (4,842) | ||||||||||||||||||
Provision for income taxes | 21 | 32 | 42 | 63 | ||||||||||||||||||||||
Interest expense (1) | 351 | 216 | 765 | 371 | ||||||||||||||||||||||
Stock-based compensation | 888 | 723 | 1,686 | 1,281 | ||||||||||||||||||||||
Depreciation and amortization | 1,265 | 1,158 | 2,512 | 2,260 | ||||||||||||||||||||||
Severance expenses (3) | 119 | 37 | 182 | 179 | ||||||||||||||||||||||
Other (4) | 30 | (380) | 29 | (376) | ||||||||||||||||||||||
Adjusted EBITDA | $ | (1,299) | $ | (1,383) | $ | (2,978) | $ | (1,064) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||
Adjusted Net Income (Loss): | ||||||||||||||||||||||||||
Net income (loss) | $ | (3,973) | $ | (3,169) | $ | (8,194) | $ | (4,842) | ||||||||||||||||||
Stock-based compensation | 888 | 723 | 1,686 | 1,281 | ||||||||||||||||||||||
Amortization of debt issuance costs (2) | 87 | 24 | 122 | 48 | ||||||||||||||||||||||
Severance expenses (3) | 119 | 37 | 182 | 179 | ||||||||||||||||||||||
Other (4) | 30 | (380) | 29 | (376) | ||||||||||||||||||||||
Tax adjustments (5) | (309) | (111) | (555) | (311) | ||||||||||||||||||||||
Adjusted net income (loss) | $ | (3,158) | $ | (2,876) | $ | (6,730) | $ | (4,021) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||
Adjusted Net Income (Loss) Per Diluted Share: | ||||||||||||||||||||||||||
Net income (loss) | $ | (3,973) | $ | (3,169) | $ | (8,194) | $ | (4,842) | ||||||||||||||||||
Plus: Adjustment items per reconciliation of adjusted net income (loss) | 815 | 293 | 1,464 | 821 | ||||||||||||||||||||||
Adjusted net income (loss) | $ | (3,158) | $ | (2,876) | $ | (6,730) | $ | (4,021) | ||||||||||||||||||
Adjusted net income (loss) per diluted share | $ | (0.04) | $ | (0.04) | $ | (0.09) | $ | (0.06) | ||||||||||||||||||
Diluted average shares outstanding | 75,752 | 73,502 | 75,629 | 71,698 |
Six Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||||||||
June 30, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||
Actual | Estimate | Estimate | Actual | |||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||
Net income (loss) | $ | (8,194) | $ 1,615 to 0 | $ (6,550) to (8,165) | $ | (6,537) | ||||||||||||||||||||
Provision for income taxes | 42 | (292) to 708 | (250) to 750 | 132 | ||||||||||||||||||||||
Interest expense (1) | 765 | 235 to 1,235 | 1,000 to 2,000 | 1,007 | ||||||||||||||||||||||
Stock-based compensation | 1,686 | 814 to 1,814 | 2,500 to 3,500 | 3,036 | ||||||||||||||||||||||
Depreciation and amortization | 2,512 | 2,738 to 3,988 | 5,250 to 6,500 | 4,524 | ||||||||||||||||||||||
Severance expenses (3) | 182 | (132) to 233 | 50 to 415 | 274 | ||||||||||||||||||||||
Other (4) | 29 | — | — | (372) | ||||||||||||||||||||||
Gain on sale of land and buildings (6) | — | — | — | (1,120) | ||||||||||||||||||||||
Adjusted EBITDA | $ | (2,978) | $ 4,978 to 7,978 | $ 2,000 to 5,000 | $ | 944 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
March 31, 2023 | June 30, 2023 | June 30, 2023 | ||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Eligibility-based | $ | 12,480 | $ | 14,131 | $ | 26,611 | ||||||||||||||
Claims-based | 10,412 | 9,798 | 20,210 | |||||||||||||||||
Healthcare Total | 22,892 | 23,929 | 46,821 | |||||||||||||||||
Recovery | 19 | 14 | 33 | |||||||||||||||||
Customer Care / Outsourced Services | 2,818 | 1,542 | 4,360 | |||||||||||||||||
Total | $ | 25,729 | $ | 25,485 | $ | 51,214 |
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||||
March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | December 31, 2022 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Eligibility-based | $ | 14,214 | $ | 12,417 | $ | 13,142 | $ | 13,511 | $ | 53,284 | ||||||||||||||||||||||
Claims-based | 9,150 | 9,339 | 10,377 | 12,516 | 41,382 | |||||||||||||||||||||||||||
Healthcare Total | 23,364 | 21,756 | 23,519 | 26,027 | 94,666 | |||||||||||||||||||||||||||
Recovery | 118 | 7 | 41 | 75 | 241 | |||||||||||||||||||||||||||
Customer Care / Outsourced Services | 3,601 | 3,918 | 3,618 | 3,140 | 14,277 | |||||||||||||||||||||||||||
Total | $ | 27,083 | $ | 25,681 | $ | 27,178 | $ | 29,242 | $ | 109,184 |
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||||
March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Eligibility-based | $ | 7,911 | $ | 11,577 | $ | 12,727 | $ | 16,061 | $ | 48,276 | ||||||||||||||||||||||
Claims-based | 5,375 | 7,025 | 7,280 | 9,498 | 29,178 | |||||||||||||||||||||||||||
Healthcare Total | 13,286 | 18,602 | 20,007 | 25,559 | 77,454 | |||||||||||||||||||||||||||
Recovery | 14,491 | 11,091 | 5,490 | 2,333 | 33,405 | |||||||||||||||||||||||||||
Customer Care / Outsourced Services | 3,613 | 3,149 | 3,085 | 3,687 | 13,534 | |||||||||||||||||||||||||||
Total | $ | 31,390 | $ | 32,842 | $ | 28,582 | $ | 31,579 | $ | 124,393 |
Cover |
Aug. 08, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 08, 2023 |
Entity Registrant Name | Performant Financial Corporation |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-35628 |
Entity Tax Identification Number | 20-0484934 |
Entity Address, Address Line One | 333 North Canyons Parkway |
Entity Address, City or Town | Livermore |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94551 |
City Area Code | (925) |
Local Phone Number | 960-4800 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Trading Symbol | PFMT |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Common Stock, par value $.0001 per share |
Entity Central Index Key | 0001550695 |
Amendment Flag | false |
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