PR Newswire
DELRAY BEACH, Fla., Aug. 15, 2022
Second Quarter Revenue of $43.7 million, a 21% increase on a Sequential Basis
Gross Margin Expanded to 51%, compared to 43% on a Sequential Basis
Nearly 50% of Transformation Initiatives Completed To-Date
Subsequent to Quarter End, Company Under New Leadership of CEO Samuel J. Meckey
Announced $67.5M Convertible Debt Financing, Further Extending Company's Maturity Profile
DELRAY BEACH, Fla., Aug. 15, 2022 /PRNewswire/ -- UpHealth, Inc. ("UpHealth" or the "Company") (NYSE: UPH), a global digital health company delivering technology platforms, infrastructure, and services to modernize care delivery and health management, today announced financial results for the second quarter ended June 30, 2022.
UpHealth CEO Sam Meckey said, "I joined UpHealth because the Company's assets are uniquely situated within the healthcare ecosystem, to solve some of the most pressing problems in healthcare today. The opportunities for UpHealth to create value for our clients are significant and I am eager to contribute my experience and knowledge in healthcare, to help drive our future growth."
"I am pleased to say that with the company's strategies in place and the foundation to support our transformation, we are well positioned for long-term growth. Together, we look forward to further implementing our strategic vision, uncovering additional ways to unlock value, and delivering for all constituents of UpHealth."
Meckey also said that he is focused on: "driving growth across all verticals; delivering high-quality, predictable revenue streams; conserving cash; and improving operational excellence, all while creating a culture that attracts and retains top talent who focus intensely on client needs and client service."
Second Quarter 2022 Financial Highlights:
Please refer to the discussion and tables under "Non-GAAP Financial Information."
Year-to-Date Second Quarter 2022 Financial Highlights:
Please refer to the discussion and tables under "Non-GAAP Financial Information."
Significant Second Quarter Business Highlights:
Convertible Debt Financing
The Company announced today the sale of $67.5 million in aggregate principal amount of a new series of variable rate convertible senior secured notes due December 15, 2025 (the "2025 Notes") in a private placement transaction, raising approximately $22.5 million in gross cash proceeds after paying for a repurchase of $45.0 million of its 6.25% convertible senior notes due 2026. The 2025 Notes are convertible into shares of UpHealth common stock at a conversion price of $1.75 per share, which represents a 101% premium over the most recent closing price of UpHealth's common stock.
The 2025 Notes will be senior secured obligations of UpHealth and will accrue interest at a rate equal to the daily secured overnight financing rate ("SOFR") plus 9.0% per annum, with a minimum rate of 10.5% per annum, payable quarterly in arrears. The 2025 Notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted. Holders will have the right to convert their 2025 Notes at any time. UpHealth will settle conversions solely in shares of its common stock, except for payments of cash in lieu of fractional shares.
"We are pleased to announce this milestone transaction. Importantly, the proceeds of this offering will be used to repay the outstanding Seller Notes that mature on September 1, 2022, as well as provide us with the liquidity to execute against our growth plans," commented Martin Beck, CFO of UpHealth. "This transaction provides us with more than three years until any significant borrowings reach maturity, while maintaining the Company's total leverage."
The 2025 Notes were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and, along with the shares of common stock underlying the 2025 Notes, have not been registered under the Securities Act or applicable state securities laws. Accordingly, the 2025 Notes and the underlying shares of common stock may not be offered, sold, pledged or otherwise transferred except to a qualified institutional buyer (within the meaning Rule 144A under the Securities Act) pursuant to an effective Securities Act registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
Oppenheimer & Co Inc. served as exclusive placement agent for the 2025 Notes.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Balance Sheet and Cash Flow
At June 30, 2022, UpHealth reported $41.1 million of cash, cash equivalents and restricted cash. On April 9, 2022, the Company repaid its forward share purchase agreement according to the terms of the contract.
Conference Call
UpHealth management will host a live question-and-answer session with investors and analysts beginning at 8:30 a.m. Eastern Time today, August 15, 2022. The call can be accessed live over the telephone by dialing (877) 344-8082, passcode 150118, from the U.S. or International callers can dial (213) 992-4618, passcode 150118. There will also be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at https://investors.uphealthinc.com/events-and-presentations/default.aspx or directly here. The webcast will be archived for approximately 30 days.
About UpHealth, Inc.
UpHealth is a global digital health company that delivers digital-first technology, infrastructure and services to dramatically improve how healthcare is delivered and managed. The UpHealth platform creates digitally enabled "care communities" that improve access and achieve better patient outcomes at lower cost, through digital health solutions and interoperability tools that serve patients wherever they are, in their native language. UpHealth's clients include global governments, health plans, healthcare providers and community-based organizations. For more information, please visit https://uphealthinc.com and follow us at @UpHealthInc on Twitter and UpHealth Inc on LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, the financial statements of UpHealth, its product offerings and developments and reception of its product by customers, statements regarding payments pursuant to the terms of UpHealth's debt obligations and the conversion or maturity of such debt and UpHealth's expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future revenue and the business plans of UpHealth's management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of UpHealth in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on UpHealth as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting UpHealth will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the ability of UpHealth to service or otherwise pay its debt obligations, the mix of services utilized by UpHealth's customers and such customers' needs for these services, market acceptance of new service offerings, the ability of UpHealth to expand what it does for existing customers as well as to add new customers, that UpHealth will have sufficient capital to operate as anticipated, and the impact that the novel coronavirus and the illness, COVID-19, that it causes, as well as government responses to deal with the spread of this illness and the reopening of economies that have been closed as part of these responses, may have on UpHealth's operations, the demand for UpHealth's products, global supply chains and economic activity in general. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
Investor Relations:
Shannon Devine (MZ North America)
Managing Director
203-741-8811
UPH@mzgroup.us
Media Inquiries:
Kelsie Aziz (Ketchum)
Vice President, Financial Communications
972-408-7103
kelsie.aziz@Ketchum.com
UPHEALTH, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands, except per share amounts, unaudited) | |||
| |||
| June 30, 2022 | | December 31, 2021 |
ASSETS | |||
Current Assets: | | | |
Cash and cash equivalents | $ 40,629 | | $ 58,192 |
Restricted cash | 508 | | 18,609 |
Accounts receivable, net | 28,658 | | 22,761 |
Inventories | 2,966 | | 2,928 |
Due from related parties | 31 | | 40 |
Prepaid expenses and other current assets | 3,785 | | 4,217 |
Total current assets | 76,577 | | 106,747 |
Property and equipment, net | 46,126 | | 56,072 |
Intangible assets, net | 110,563 | | 115,313 |
Goodwill | 284,177 | | 284,268 |
Other assets | 2,768 | | 6,907 |
Total assets | $ 520,211 | | $ 569,307 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | | | |
Accounts payable | $ 18,160 | | $ 13,604 |
Accrued expenses | 40,065 | | 36,084 |
Deferred revenue | 6,452 | | 2,649 |
Due to related party | 458 | | 47 |
Income taxes payable | 2,731 | | 739 |
Related-party long-term debt, current | 466 | | 657 |
Long-term debt, current | 18,827 Werbung Mehr Nachrichten zur Uphealth Aktie kostenlos abonnieren
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