EX-99.1 2 a991-amendedandupdatedtabl.htm EX-99.1 Document
Exhibit 99.1

Restated Financial Information
The Company is furnishing herein amended and updated Tables 1 through 7 of the Earnings Release (with the amended information identified by a “^”), which supersede entirely the corresponding tables included in the Earnings Release. Tables 8 and 9 were not impacted by the restatements.






Table 1
R1 RCM Inc.
Consolidated Balance Sheets
(In millions)
(Unaudited)
 September 30,December 31,
 20232022
(As Restated)
Assets
Current assets:
Cash and cash equivalents$164.9 $110.1 
Accounts receivable, net of $38.1 million and $15.1 million allowance as of September 30, 2023 and December 31, 2022, respectively
248.7 ^235.2 
Accounts receivable - related party, net of $0.1 million allowance as of September 30, 2023 and December 31, 2022
23.9 25.0 
Current portion of contract assets, net89.2 83.9 
Prepaid expenses and other current assets112.7 110.3 
Total current assets639.4 ^564.5 
Property, equipment and software, net183.6 164.8 
Operating lease right-of-use assets65.4 80.5 
Non-current portion of contract assets, net37.8 32.0 
Non-current portion of deferred contract costs31.3 26.7 
Intangible assets, net1,362.4 1,514.5 
Goodwill2,629.4 ^2,640.3 ^
Deferred tax assets10.4 10.4 
Other assets80.4 88.1 ^
Total assets$5,040.1 ^$5,121.8 ^
Liabilities
Current liabilities:
Accounts payable$20.1 $33.4 
Current portion of customer liabilities44.4 ^57.5 
Current portion of customer liabilities - related party5.8 7.4 
Accrued compensation and benefits120.7 109.0 
Current portion of operating lease liabilities19.0 18.0 
Current portion of long-term debt67.0 53.9 
Accrued expenses and other current liabilities60.7 70.5 ^
Total current liabilities337.7 ^349.7 ^
Non-current portion of customer liabilities2.9 5.0 
Non-current portion of customer liabilities - related party12.2 13.7 
Non-current portion of operating lease liabilities83.1 94.4 
Long-term debt1,646.0 1,732.6 
Deferred tax liabilities190.7 ^200.8 ^
Other non-current liabilities24.1 ^23.1 
Total liabilities2,296.7 ^2,419.3 
Stockholders’ equity:
Common stock4.4 4.4 
Additional paid-in capital3,180.0 3,123.3 ^
Accumulated deficit(138.1)^(140.0)^
Accumulated other comprehensive loss(1.7)(3.4)
Treasury stock(301.2)(281.8)
Total stockholders’ equity2,743.4 ^2,702.5 ^
Total liabilities and stockholders’ equity$5,040.1 ^$5,121.8 ^


Table 2
R1 RCM Inc.
Consolidated Statements of Operations (Unaudited)
(In millions, except share and per share data)
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
(As Restated)(As Restated)
Net operating fees$368.0 $323.7 ^$1,086.8 $964.8 ^
Incentive fees30.1 20.8 84.5 80.9 
Modular and other174.7 151.0 507.8 227.4 
Net services revenue572.8 495.5 ^1,679.1 1,273.1 ^
Operating expenses:
Cost of services447.5 403.9 ^1,328.1 1,011.4 ^
Selling, general and administrative54.7 58.3 ^164.3 118.2 ^
Other expenses29.4 28.5 ^87.9 142.5 ^
Total operating expenses531.6 490.7 ^1,580.3 1,272.1 ^
Income from operations41.2 4.8 ^98.8 1.0 ^
Net interest expense32.1 23.7 95.3 35.3 
Income (loss) before income tax provision (benefit)9.1 (18.9)^3.5 (34.3)^
Income tax provision (benefit)7.8 9.8 ^1.6 (7.6)
Net income (loss)$1.3 $(28.7)^$1.9 $(26.7)^
Net income (loss) per common share:
Basic$— $(0.07)$— $(0.08)^
Diluted$— $(0.07)$— $(0.08)^
Weighted average shares used in calculating net income (loss) per common share:
Basic419,008,998 417,700,782 418,299,910 330,877,880 
Diluted456,364,024 417,700,782 454,837,597 330,877,880 











Table 3
R1 RCM Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
 Nine Months Ended September 30,
 20232022
(As Restated)
Operating activities
Net income (loss)$1.9 $(26.7)^
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization205.6 107.8 
Amortization of debt issuance costs4.3 2.2 
Share-based compensation48.9 43.9 ^
CoyCo 2 share-based compensation5.4 3.0 
Loss on disposal and right-of-use asset write-downs10.3 3.9 
Provision for credit losses24.1 10.7 
Deferred income taxes(1.5)(9.1)
Non-cash lease expense8.7 10.5 
Other3.6 1.5 
Changes in operating assets and liabilities:
Accounts receivable and related party accounts receivable(36.7)^(29.2)^
Contract assets(10.0)(12.8)
Prepaid expenses and other assets(22.0)(39.2)^
Accounts payable(15.0)(23.9)
Accrued compensation and benefits12.0 (71.3)^
Lease liabilities(13.4)(11.4)
Other liabilities12.9 (3.3)^
Customer liabilities and customer liabilities - related party(17.8)^3.9 ^
Net cash provided by (used in) operating activities221.3 (39.5)
Investing activities
Purchases of property, equipment, and software(81.1)(74.6)
Acquisition of Cloudmed, net of cash acquired— (847.7)
Proceeds from disposal of assets— 0.4 
Other5.5 — 
Net cash used in investing activities(75.6)(921.9)
Financing activities
Issuance of senior secured debt, net of discount and issuance costs— 1,016.6 
Borrowings on revolver30.0 30.0 
Payment of debt issuance costs— (1.0)
Repayment of senior secured debt(37.1)(13.1)
Repayments on revolver(70.0)(30.0)
Payment of equity issuance costs— (2.0)
Exercise of vested stock options1.3 4.6 
Purchase of treasury stock— (12.5)
Shares withheld for taxes(20.0)(26.9)
Other5.3 (0.2)
Net cash (used in) provided by financing activities(90.5)965.5 
Effect of exchange rate changes in cash, cash equivalents and restricted cash(0.4)(3.1)
Net increase in cash, cash equivalents and restricted cash54.8 1.0 
Cash, cash equivalents and restricted cash, at beginning of period110.1 130.1 
Cash, cash equivalents and restricted cash, at end of period$164.9 $131.1 





Table 4
R1 RCM Inc.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA (Unaudited)
(In millions)
 Three Months Ended September 30,2023 vs. 2022
Change		Nine Months Ended September 30,2023 vs. 2022
Change
 20232022Amount%20232022Amount%
Net income (loss)$1.3 $(28.7)^$30.0 ^(105)%^$1.9 $(26.7)^$28.6 ^(107)%^
Net interest expense32.1 23.7 8.4 35 %95.3 35.3 60.0 170 %
Income tax provision (benefit)7.8 9.8 ^(2.0)^(20)%^1.6 (7.6)9.2 (121)%
Depreciation and amortization expense70.8 64.2 6.6 10 %205.6 107.8 97.8 91 %
Share-based compensation expense18.4 22.1 ^(3.7)^(17)%^48.9 43.9 ^5.0 ^11 %^
CoyCo 2 share-based compensation expense1.7 3.0 (1.3)(43)%5.4 3.0 2.4 80 %
Other expenses29.4 28.5 ^0.9 ^3 %^87.9 142.5 ^(54.6)^(38)%^
Adjusted EBITDA (non-GAAP)$161.5 $122.6 ^$38.9 ^32 %^$446.6 $298.2 ^$148.4 ^50 %^



Table 5
R1 RCM Inc.
Reconciliation of GAAP Cost of Services to Non-GAAP Cost of Services (Unaudited)
(In millions)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Cost of services$447.5 $403.9 ^$1,328.1 $1,011.4 ^
Less:
Share-based compensation expense11.9 11.3 30.7 20.7 
CoyCo 2 share-based compensation expense0.5 1.0 1.4 1.0 
Depreciation and amortization expense70.4 63.9 204.6 107.0 
Non-GAAP cost of services$364.7 $327.7 ^$1,091.4 $882.7 ^






Table 6
R1 RCM Inc.
Reconciliation of GAAP Selling, General and Administrative to Non-GAAP Selling, General and Administrative (Unaudited)
(In millions)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Selling, general and administrative$54.7 $58.3 ^$164.3 $118.2 ^
Less:
Share-based compensation expense6.5 10.8 ^18.2 23.2 ^
CoyCo 2 share-based compensation expense1.2 2.0 4.0 2.0 
Depreciation and amortization expense0.4 0.3 1.0 0.8 
Non-GAAP selling, general and administrative$46.6 $45.2 ^$141.1 $92.2 ^



Table 7
R1 RCM Inc.
Consolidated Non-GAAP Financial Information (Unaudited)
(In millions)
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Net operating fees$368.0 $323.7 ^$1,086.8 $964.8 ^
Incentive fees30.1 20.8 84.5 80.9 
Modular and other174.7 151.0 507.8 227.4 
Net services revenue 572.8 495.5 ^1,679.1 1,273.1 ^
Operating expenses:
        Cost of services (non-GAAP)364.7 327.7 ^1,091.4 882.7 ^
        Selling, general and administrative (non-GAAP)46.6 45.2 ^141.1 92.2 ^
Sub-total411.3 372.9 ^1,232.5 974.9 ^
Adjusted EBITDA $161.5 $122.6 ^$446.6 $298.2 ^