CareMax Inc. – a pioneering force behind the value-based healthcare delivery system – recently revealed a significant net loss of $465.77 million in its fourth-quarter report, a drastic contrast from the net income of $10.43 million reported last year.
The company's basic loss per share stands at $124.53, whereas, in the previous year, the firm reported a profit of $3.10 per share. It's crucial to note that these figures have been recalculated to account for the 1-for-30 reverse stock split that CareMax finalised on January 31, 2024.
The latest quarter's results include a $369.2 million non-cash goodwill impairment. Besides, the adjusted EBITDA shows a loss of $71.8 million, compared to a profit of $4.5 million last year.
The company's total revenue has fallen by 8 percent, now standing at $151.84 million down from last year's $164.26 million. Yet, CareMax's losses seem to encroach upon expert expectations, which according to Thomson Reuters, predicted a loss of $4.73 per share on sales of $190.83 million. However, these prospective figures usually do not factor in extraordinary items.
In terms of membership, CareMax, however, reports growth. Its total membership has increased by 4 percent year-over-year, hitting a mark of 270,000. The firm's Medicare Advantage membership also experienced a 19 percent rise, standing at 111,500.
Further, CareMax hinted at a possibility of strategic shifts across its business to augment the value of specific assets and boost further liquidity. However, these plans' potential impacts on the company's financial performance remain blurry. Hence, CareMax refrains from projecting their financial outlook for the year 2024 at this moment.
