Sizewise talent1/1/2023 As we optimize our combined operations network, including facilities, vehicles, staff, products, and our business operating systems, we will further improve our local market presence and our customer reach. Sizewise builds on Agiliti's unique at-scale infrastructure. But first and foremost, this acquisition is about long-term profitable growth. However, we see a clear path to achieving meaningful cost synergies as we integrate, targeting $5 million in year one EBITDA and growing to $15 million by year three. We're early in our integration of Sizewise. Acquisition was finalized on October 1, and we will account for Sizewise future revenue contribution within our equipment solutions service line. In our announcement, we noted that during the 12 months ended June 30, 2021, the Sizewise business generated revenue of $155 million and adjusted EBITDA of $30 million, which was inclusive of an estimated benefit from COVID-19 of approximately $5 million in adjusted EBITDA. On September 14, we announced that Agiliti had finalized an agreement to acquire Sizewise, the manufacturer and distributor of standard and specialty bed frames, therapeutic support services, and patient mobility equipment. I'd like to spend some time today on another recent highlight: our acquisition of Sizewise. As such, the information we can discuss today is limited to what the federal government discloses publicly and will be provided here in our prepared remarks. And as we've shared on previous calls, we operate under a strict nondisclosure agreement with HHS regarding the details of this contract and the work we perform at their direction. I'll remind you that our financial guidance for 2021 continues to include the assumption that Agiliti is successful in securing a renewal of this government contract. Until such time the new contract is awarded, we expect that HHS will continue to ensure the continuity of our support for the maintenance, storage, and deployments of these critical resources by use of short-term extensions. We have no visibility into the timing of either the RFP or a contract award. #SIZEWISE TALENT SERIES#Agiliti continues to operate under a series of short-term extensions to our existing contract while we await the federal government's reissue of an RFP for a contract renewal. #SIZEWISE TALENT UPDATE#Remaining on the topic of our government stockpile agreement for a moment, let me offer a brief update on our contract status. I'll note that this difference in timing does not increase our view on the total financial contribution of this contract in the balance of the year. So this reflects an acceleration in timing from our prior expectations. We previously expected a portion of this revenue to occur in Q4 of this year. We recognized higher than anticipated time and materials-based revenue in Q3. Additionally, we're working at the direction of the federal government on our national stockpile management contract. This late demand exceeded our initial expectations for the quarter. Our results also reflect the increased customer demand for our medical device rental equipment during August and September as providers continued to combat the impact of COVID-19 and its variants across the country. I previously described the stable and highly predictable nature of the Agiliti business, which is clearly evident in our consistent performance, including our most recent results. First, we once again delivered our commercial goals for the quarter. I'd like to start today with a few insights into our overall performance and our direction. #SIZEWISE TALENT DRIVERS#Jim's going to provide more detail on our financial outlook and the principal drivers behind our Q3 results later on in the call. #SIZEWISE TALENT FULL#In line with our performance and adjusting for the October 1st close of the Sizewise acquisition, we have raised our guidance for full year 2021 to reflect expected revenue in the range of $1.01 billion to $1.02 billion and adjusted EBITDA in the range of $300 million to $310 million. And our adjusted earnings per share for the third quarter was $0.23, compared to an adjusted EPS of $0.13 for the prior-year period, representing an increase of 76%. Adjusted EBITDA was $82 million, a 46% increase compared to Q3 of last year. Starting with the highlights, total revenue for the quarter was $262 million, representing a 35% increase from Q3 2020. Today, we'll walk through the factors that drove our performance in the third quarter and provide color on our updated guidance for the full year.
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