Performant Financial Corporation (NASDAQ:PFMT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 05:00 pm ET

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Performant Financial Corporation (NASDAQ:PFMT) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Performant Financial Corporate Third Quarter 2019 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Zubek of Investor Relations. Thank you. You may begin, sir.

Executive
Richard Zubek

Thank you, operator and good afternoon, everyone. By now, you should have received a copy of the earnings release for the company's third quarter 2019 result. If you have not, a copy is available on the Investor Relations portion of our website. Today's call will be led by Lisa Im, Chief Executive Officer.

Before we begin, I'd like to remind you that some of the comments made on today's call, including our financial guidance, are forward-looking statements. These statements are subject to risks and uncertainties, including those described in the company's filings with the SEC. Actual results may differ materially from those described during the call.

In addition, all forward-looking statements are made as of today and the company does not undertake to update any forward-looking statements based on new circumstances or revised expectations. Also, all non-GAAP financial measures discussed during this call are reconciled to the most directly comparable GAAP measures in the table attached to our press release.

With that, I'd like to now turn the call over to Lisa Im. Lisa?

Executive
Lisa Im

Thank you, Rich. Good afternoon, everyone and thank you for joining us for our earnings call. If you haven't already, please find the financial supplement on our website that walks through our 2019 third quarter financial results in more detailed form.

Our results in the third quarter demonstrate our successful execution on our plans to move back to profitability, as we remain on track to achieve our internal long term goal of $200 million in revenue and 20% EBITDA margins in 2021. We are confident that the successes we have seen in the third quarter will continue into Q4 and beyond. In Q3 of 2019, we reported revenue of nearly $36 million, which was in line with our internal projections and up over 30% versus the prior year period. Adjusted EBITDA in the third quarter was a loss of just over $3 million compared to a loss of nearly $4.5 million in the prior year period.

Overall Healthcare revenues in the third quarter of 2019 totaled $11 million, which was nearly 50% higher than it was in third quarter of 2018. CMS related revenues in the third quarter of 2019 exceeded $7 million compared to just over $4 million in the prior year period, an increase of nearly 69% year-over-year. Commercial healthcare revenues accounted for nearly $4 million in the third quarter of 2019 compared to just under $3 million in the third quarter of last year. On a year-to-date basis, the results of our efforts to grow our healthcare operations are even more apparent, as year-to-date revenues in 2019 were just over $29 million, which is 80% higher than they were in 2018, after excluding the onetime CMS appeals reserve