Performant Financial Corporation (PFMT) Bundle
A Brief History of Performant Financial Corporation
Performant Financial Corporation (PFMT) has established itself as a key player in healthcare payment integrity services. As of 2024, the company has experienced notable financial fluctuations and operational developments.
Recent Financial Performance
For the nine months ended September 30, 2024, Performant reported total revenues of $88.2 million, which reflects a 9% increase compared to $81.2 million for the same period in 2023. The growth in revenue is attributed primarily to an increase in healthcare services, particularly claims-based services, which rose significantly by 32% to $40.3 million.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Total Revenues | $88.2 million | $81.2 million | 9% |
| Healthcare Revenues | $84.0 million | $75.3 million | 12% |
| Claims-Based Services Revenue | $40.3 million | $30.5 million | 32% |
| Net Loss | $(9.4) million | $(8.8) million | 7% |
Operational Highlights
Performant's operational expenses for the nine months ended September 30, 2024, totaled $97.0 million, a 9% increase from $89.2 million in the prior year. This increase was driven by higher salaries and benefits, which amounted to $73.7 million, reflecting a 10% rise compared to the $67.1 million reported in the same period of 2023.
Capital Structure and Liquidity
As of September 30, 2024, Performant had total assets of $101.8 million, with total liabilities of $26.6 million, resulting in stockholders’ equity of $75.2 million. The company’s cash and cash equivalents stood at $7.8 million, showing a slight increase from $7.3 million at the end of 2023.
Performant entered into a new credit agreement on October 27, 2023, with a $25 million revolving loan commitment. As of September 30, 2024, $8.0 million was drawn from this facility, with an additional $14.0 million available.
| Balance Sheet Item | 2024 (September 30) | 2023 (December 31) |
|---|---|---|
| Total Assets | $101.8 million | $99.0 million |
| Total Liabilities | $26.6 million | $18.3 million |
| Stockholders' Equity | $75.2 million | $80.7 million |
| Cash and Cash Equivalents | $7.8 million | $7.3 million |
Stock Performance and Market Position
Performant's stock has experienced volatility, primarily due to fluctuations in operational performance and market conditions. The company’s adjusted net income (loss) for the nine months ended September 30, 2024, was $(5.8) million, translating to an adjusted net loss per diluted share of $(0.08), consistent with the previous year's performance.
Overall, Performant Financial Corporation remains focused on enhancing its service offerings and operational efficiencies to navigate the competitive landscape of healthcare payment integrity solutions as of 2024.
A Who Owns Performant Financial Corporation (PFMT)
Ownership Structure
As of 2024, Performant Financial Corporation (PFMT) has a diverse ownership structure consisting of institutional investors, individual shareholders, and management. The major shareholders include:
- Institutional Investors: Various institutional investors hold significant shares in PFMT, including mutual funds and pension funds.
- Individual Shareholders: Retail investors also own a portion of the company’s stock.
- Management and Insider Ownership: Key executives and board members hold shares, reflecting their alignment with shareholder interests.
Major Shareholders
The following table outlines the major shareholders of Performant Financial Corporation as of early 2024:
| Shareholder | Type of Ownership | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Wells Fargo Bank | Institutional | 5,000,000 | 6.4% |
| BlackRock, Inc. | Institutional | 4,500,000 | 5.8% |
| Vanguard Group, Inc. | Institutional | 4,200,000 | 5.3% |
| Management (Top 5 Executives) | Insider | 3,000,000 | 3.8% |
| Other Individual Shareholders | Individual | 10,000,000 | 12.8% |
Stock Performance and Financial Data
As of September 30, 2024, Performant Financial Corporation reported a net loss of $9.4 million for the nine months ended September 30, 2024, compared to a net loss of $8.8 million for the same period in 2023. The total revenues for the company were $88.2 million for the nine months ended September 30, 2024, up from $81.2 million in 2023.
The company's stock performance is critical for its shareholders. The share price and market capitalization fluctuate based on market conditions and company performance. As of September 30, 2024, the stock price was approximately $3.01 per share.
Financial Metrics
The following table summarizes key financial metrics for Performant Financial Corporation for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $88.2 million |
| Net Loss | $(9.4 million) |
| Operating Expenses | $97.0 million |
| Adjusted Net Income (Loss) | $(5.8 million) |
| Cash and Cash Equivalents | $7.8 million |
| Debt Outstanding | $8.0 million |
Performant Financial Corporation (PFMT) Mission Statement
Company Overview
Performant Financial Corporation (PFMT) focuses on providing healthcare payment integrity services, specializing in claims-based and eligibility-based services. The company aims to enhance operational efficiency and improve financial outcomes for healthcare payers while ensuring regulatory compliance.
Mission Statement
As of 2024, Performant Financial Corporation's mission statement emphasizes its commitment to utilizing technology-enabled solutions to deliver innovative services that enhance the integrity of healthcare payments. The company aims to recover improper payments for its clients and reduce waste in the healthcare system.
Financial Performance Overview
For the nine months ended September 30, 2024, Performant reported total revenues of $88.2 million, marking an increase of approximately $7.0 million, or 9%, compared to $81.2 million for the same period in 2023. This growth is largely attributed to the rise in healthcare revenues, which reached $84.0 million, reflecting a 12% increase from the previous year.
| Financial Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $88.2 million | $81.2 million | $7.0 million | 9% |
| Healthcare Revenues | $84.0 million | $75.3 million | $8.7 million | 12% |
| Customer Care Revenues | $4.2 million | $5.8 million | ($1.6 million) | (28%) |
| Net Loss | ($9.4 million) | ($8.8 million) | ($0.6 million) | 7% |
Operational Highlights
Performant's operational strategy includes leveraging advanced analytics and technology to streamline processes. The company has secured several Medicare Recovery Audit Contractor (RAC) contracts, enhancing its service offerings and market position. For instance, the CMS RAC Region 2 contract has contributed significantly to the company's revenue growth.
Investment in Technology
As part of its mission, Performant is committed to investing in technology to improve efficiency and service delivery. For the nine months ended September 30, 2024, the company reported capital expenditures of $5.7 million, related primarily to software and technology acquisitions.
Employee and Operational Expenses
Employee-related expenses have risen to support business growth, with salaries and benefits totaling $73.7 million for the nine months ended September 30, 2024, reflecting a 10% increase from $67.1 million in the same period of 2023.
| Expense Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Salaries and Benefits | $73.7 million | $67.1 million | $6.6 million | 10% |
| Other Operating Expenses | $23.3 million | $22.1 million | $1.2 million | 5% |
Future Outlook
Looking ahead, Performant Financial Corporation aims to continue expanding its service offerings and enhancing operational efficiencies. The growth of healthcare revenues and strategic investments in technology are expected to position the company favorably in the marketplace.
How Performant Financial Corporation (PFMT) Works
Business Model
Performant Financial Corporation operates primarily in the healthcare payment integrity sector, providing services that include claims-based and eligibility-based services. The company generates revenue through contingency fees based on a percentage of the dollar amount of improper claims recovered as a result of its auditing efforts.
Revenue Breakdown
For the nine months ended September 30, 2024, total revenues were $88.2 million, representing an increase of approximately $7.0 million, or 9%, compared to $81.2 million for the same period in 2023. The revenue breakdown is as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Healthcare Revenues | $84,012 | $75,311 | $8,701 | 12% |
| Customer Care / Outsourced Services | $4,203 | $5,832 | $(1,629) | (28%) |
| Total Revenues | $88,215 | $81,176 | $7,039 | 9% |
Operating Expenses
Operating expenses totaled $97.0 million for the nine months ended September 30, 2024, an increase from $89.2 million in 2023. The expense components are detailed below:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Salaries and Benefits | $73,721 | $67,139 | $6,582 | 10% |
| Other Operating Expenses | $23,305 | $22,077 | $1,228 | 6% |
| Total Operating Expenses | $97,026 | $89,216 | $7,810 | 9% |
Net Loss and Earnings
For the nine months ended September 30, 2024, Performant reported a net loss of $9.4 million, an increase of $0.6 million compared to a net loss of $8.8 million in the same period of 2023. The net loss per share for the nine months ended September 30, 2024 was $(0.12), consistent with the prior year.
Cash Flow and Liquidity
As of September 30, 2024, cash and cash equivalents totaled $7.8 million, up from $7.3 million at December 31, 2023. Key cash flow components for the nine months ended September 30, 2024 are as follows:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $3,395 |
| Net Cash Used in Investing Activities | $(5,744) |
| Net Cash Provided by Financing Activities | $2,791 |
| Net Increase in Cash | $442 |
Debt and Credit Agreement
As of September 30, 2024, Performant had $8.0 million outstanding under a credit agreement with Wells Fargo Bank, with an additional $14.0 million available for borrowing. The credit agreement includes a $25 million revolving loan commitment with an annual interest rate of 8.0%.
Stock-Based Compensation
For the nine months ended September 30, 2024, stock-based compensation expenses totaled $4.1 million, an increase from $2.8 million in the prior year. As of September 30, 2024, there were approximately 6.1 million restricted stock units outstanding, with an unrecognized compensation cost of $14.5 million expected to be recognized over approximately 2.8 years.
Tax Considerations
The effective income tax rate for the nine months ended September 30, 2024 was (1)%, compared to 4% for the same period in 2023. The tax expense recognized was $47 thousand for 2024.
How Performant Financial Corporation (PFMT) Makes Money
Revenue Streams
Performant Financial Corporation generates revenue primarily through two main segments: healthcare services and customer care/outsource services.
Healthcare Services
Healthcare revenues are derived from both claims-based and eligibility-based services. For the nine months ended September 30, 2024, total healthcare revenues amounted to $84.0 million, marking a 12% increase compared to $75.3 million for the same period in 2023.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Eligibility-based Services | $16,070 | $18,165 | -12% |
| Claims-based Services | $14,217 | $10,325 | +38% |
| Total Healthcare Revenues | $30,287 | $28,490 | +6% |
The increase in claims-based services was primarily driven by ongoing growth from prior implementations and the CMS RAC Region 2 contract. Claims-based revenues for the nine months ended September 30, 2024, were $40.3 million, an increase of 32% from $30.5 million in the prior year.
Customer Care / Outsourced Services
Customer care revenues were approximately $4.2 million for the nine months ended September 30, 2024, which is a decrease of 28% from $5.8 million in the same period of 2023.
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $97.0 million, compared to $89.2 million for the same period in 2023, representing a 9% increase.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Salaries and Benefits | $73,721 | $67,139 | +10% |
| Other Operating Expenses | $23,305 | $22,077 | +6% |
| Total Operating Expenses | $97,026 | $89,216 | +9% |
Net Loss
The net loss for the nine months ended September 30, 2024, was $9.4 million, compared to a net loss of $8.8 million in the same period in 2023, reflecting an increase in losses of approximately 7%.
Liquidity and Capital Resources
As of September 30, 2024, cash and cash equivalents totaled $7.8 million, up from $7.3 million at December 31, 2023. The company had $8.0 million outstanding under a new credit agreement with Wells Fargo Bank, which includes a $25 million revolving loan commitment.
| Financial Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $7,775 | $7,333 |
| Outstanding Debt | $8,000 | $5,000 |
| Available Borrowing Capacity | $14,000 | N/A |
Conclusion of Financial Performance
Performant Financial Corporation's revenue model largely hinges on success-based fees associated with healthcare payment integrity services, which are critical in their operational strategy. The company continues to face challenges in their customer care segment while maintaining growth in their healthcare services.
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Resources:
- Performant Financial Corporation (PFMT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Performant Financial Corporation (PFMT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Performant Financial Corporation (PFMT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.