Saturday, May 25, 2019

Catasys Reports 2018 Fourth Quarter and Year-end Financial Results

BWW News Desk
March 14, 2019

Catasys Inc NASDAQ CATS a leading AI and technologyenabled healthcare company today reported its financial results for the fourth quarter and year ended December 31 2018 The Company provides big databased analytics and predictive modeling driven healthcare services to health plans and their members through its OnTrak solution p p bManagement Commentary on Current Status of Business and Outlook for 2019b p p Mr Terren Peizer Chairman and CEO stated Catasys has had a strong start to 2019 as continued expansions with existing health plan partners significantly accelerated our outreach pool of eligible members to record levels The signing of contracts with new health plans launches in new states and program expansions led to solid enrollment growth for the Company in 2018 We are reiterating our previous guidance of 35 million of revenues for 2019 which we believe is a conservative estimation of this enrollment trend given the sizable increase in our outreach pool p p Catasys outreach pool of eligible members continued its rapid ramp increasing to current levels at March 1 2019 of 75000 due to significant expansion within existing contracts an increase from approximately 41000 at December 31 2018 and up from 38000 at the end of the third quarter of 2018 New customer launches continue to take approximately 12 months to ramp up to an approximate 20 yearly enrollment rate One year after launch the Company generally enrolls more than 20 of its outreach pool over a year Catasys generally receives approximately 6500 net per enrolled member p p Mr Peizer continued The Company continues to reinvest in our infrastructure to ensure that we are able to properly scale operations in anticipation of pending enrollment growth We are technologically preparing to handle additional volume and will be hiring and training additional care coaches to ensure that members of the OnTrak program continue to receive the best care while still optimizing our own productivity Finally we intend to devote continued time and resources to new products that utilize our existing platform and data driven analytics to widen Catasys potential outreach population even further Given these positive indicators and our ability to capitalize on growth opportunities we remain confident that our provided guidance is a conservative floor for this year p p b2019 Guidanceb p ul li classbwlistitemmargb Catasys expects to report revenues of at least 35 million in 2019 The Company anticipates that this revenue increase will be supported through accelerating enrollment growth during the remainder of this year with the largest portion of the revenue increase to occur in the second half of 2019 li li classbwlistitemmargb This guidance solely represents existing enrollment launches with current health plan partners and program expansions with existing customers li li classbwlistitemmargb Annual guidance does not include new contracts and subsequent launches initial launches of existing contracts and new expansions within existing contracts that may increase its outreach pool throughout the year As a result of these subsequent developments the Company may revise guidance at that time li ul p bFourth Quarter 2018 Operating Highlightsb p ul li classbwlistitemmargb Catasys new enrollment for the quarter ended December 31 2018 increased 126 year over year li li classbwlistitemmargb OnTrak program is currently available through eight health plans in 22 states across the United States li ul p bManagement Commentary on Fourth Quarter and Yearend 2018b p p Mr Rick Anderson President and COO stated We are very pleased with our enrollment growth trends which led to the Company achieving its previously announced guidance for 2018 billings and record revenue for both the quarter and the year This was largely due to our continued success at identifying engaging and treating those suffering from cooccurring behavioral and medical health conditions We have seen additional launches and notable programmatic expansion in recent months which have driven increases in our eligible members and we expect will drive enrollment in 2019 The Company is focused on continuing to expand its infrastructure through increased hiring and training as well as through the development and implementation of machinelearning AI and predictive analytics We believe this will help support our growth and expansion efforts throughout 2019 p p bFourth Quarter and Yearend 2018 Financial Reviewb p p span classbwulineRevenuesspan p ul li classbwlistitemmargb Revenuewas 56 million for the fourth quarter of 2018 compared to 30 million during the same period in 2017 There was a net increase in the number of members enrolled in our OnTrak solution during the fourth quarter of 2018 compared with the same period in 2017 Enrolled members as of December 31 2018 was 126 greater than December 31 2017 li li classbwlistitemmargb Revenuewas 152 million for the year ended December 31 2018 an increase of 967 compared to 77 million in 2017 li ul p span classbwulineGross Marginspan p ul li classbwlistitemmargb Gross Margin which consists of Cost of Healthcare Services as a percentage of revenue increased to 528 for the fourth quarter of 2018 compared to 331 in the prior year period li li classbwlistitemmargb Cost of Healthcare Services consists primarily of salaries related to Catasys care coaches outreach specialists healthcare provider claims payments to its network of physicians and psychologists and fees charged by third party administrators for processing these claims li li classbwlistitemmargb The costs for such staff are included in Cost of Healthcare Services during training and rampup periods margins will be impacted by the hiring of staff in preparation for anticipated future customer contracts and corresponding increases in members eligible for OnTrak li li classbwlistitemmargb Gross Margin was 267 for the year ended December 31 2018 compared to 172 in 2017 li ul p span classbwulineOperating Expensesspan p ul li classbwlistitemmargb Operating expenses in the fourth quarter of 2018 were 68 million compared to 58 million in the prioryear period This increase was mainly due to higher expenses in the fourth quarter of 2018 related to servicing contracts and investments in key personnel to support future growth compared to the prioryear period li li classbwlistitemmargb Operating expenses for the year ended December 31 2018 were 288 million compared to 184 million in the prior year li ul p span classbwulineNet Income Lossspan p ul li classbwlistitemmargb For the fourth quarter of 2018 net loss was 14 million or 009 per diluted share compared to a net loss of 27 million or 017 per diluted share in the prioryear period li li classbwlistitemmargb For the year ended December 31 2018 net loss was 142 million or 089 per basic and diluted share compared to a net loss of 136 million or 099 per basic and diluted share in the prior year li ul p bConference Call Thursday March 14 2019 430 pm ETb p p The Company will host a conference callwebcast on Thursday March 14 2019 at 430 pm ET130 pm PT p p Investors analysts employees and the public are invited to listen to the conference call via p p span classbwulineConference Callspan p p 8777052969 domestic or 2016898868 international p p span classbwulineWebcastspan p p a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2F78449themediaframecom2Fdataconf2Fproductusers2Fcats2Fmediaframe2F290772Findexlhtmlampesheet51955063ampnewsitemid20190314005783amplanenUSampanchorhttps3A2F2F78449themediaframecom2Fdataconf2Fproductusers2Fcats2Fmediaframe2F290772Findexlhtmlampindex1ampmd564858fb2a6d5a7d35d6a4e242889a4b1 relnofollowhttps78449themediaframecomdataconfproductuserscatsmediaframe29077indexlhtmla p p Those who are unable to attend the conference call live can use the following information to hear a replay version p div classbwreleasetabletable cellspacing0 classbwtablemarginb tr td td td td td td td td td td tr tr td classbwpadl0 bwvertalignt bwalignl Conference ID td td td td td td td td classbwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl 13672721 td tr tr td classbwpadl0 bwvertalignt bwalignl Conference Call Replay td td td td td td td td classbwpadl0 bwvertalignt bwalignl 8776606853 domestic or 2016127415 international td tr tr td classbwpadl0 bwvertalignt bwalignl Expiration Date td td td td td td td td classbwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl 3212019 td tr tr td td td td td td td td td td tr table

SOURCE: BUSINESS WIRE. ©2015 Business Wire

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