10-Q 1 agl-20220930.htm 10-Q 10-Q
Q3--12-31false00018310970001831097agl:SecuredTermLoanAndRevolvingFacilityMemberagl:OneMonthLIBORateMember2022-01-012022-09-300001831097us-gaap:FairValueInputsLevel2Memberagl:OtherMemberagl:MarketableSecuritiesMember2022-09-300001831097us-gaap:RetainedEarningsMember2021-07-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorsMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001831097us-gaap:UnassertedClaimMember2022-09-300001831097us-gaap:FederalFundsEffectiveSwapRateMemberagl:SecuredTermLoanAndRevolvingFacilityMember2022-01-012022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorBMemberagl:PayorsMember2021-01-012021-09-300001831097us-gaap:CommonStockMember2022-07-012022-09-300001831097us-gaap:CorporateDebtSecuritiesMemberagl:MarketableSecuritiesMember2022-09-300001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-04-152021-04-150001831097us-gaap:RetainedEarningsMember2021-09-300001831097agl:IndemnificationAssetsMember2021-12-310001831097agl:MedicalServicesRevenue1Member2022-01-012022-09-300001831097us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001831097agl:DepreciationAndAmortization1Member2022-07-012022-09-300001831097us-gaap:FairValueInputsLevel1Memberagl:OtherMemberagl:MarketableSecuritiesMember2022-09-300001831097us-gaap:StandbyLettersOfCreditMember2021-02-180001831097srt:MaximumMember2022-09-300001831097us-gaap:CommonStockMember2021-01-012021-09-300001831097us-gaap:NoncontrollingInterestMember2020-12-310001831097agl:LoansToPhysiciansPartnersMember2021-12-310001831097agl:HealthPlanDepositsMember2022-09-300001831097agl:StockOptionsServiceOnlyConditionMember2022-01-012022-09-300001831097agl:SecuredTermLoanAndRevolvingFacilityMembersrt:MaximumMember2022-01-012022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorDMemberagl:PayorsMember2021-07-012021-09-300001831097us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001831097us-gaap:AdditionalPaidInCapitalMember2021-09-3000018310972022-07-012022-09-300001831097agl:DirectContractingEntitiesMemberus-gaap:OtherAssetsMember2022-09-300001831097us-gaap:RetainedEarningsMember2022-06-300001831097us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-01-012022-09-300001831097us-gaap:NoncontrollingInterestMember2022-06-300001831097us-gaap:SalesRevenueNetMemberagl:PayorAMemberagl:PayorsMember2021-01-012021-09-300001831097us-gaap:FairValueInputsLevel1Member2022-09-300001831097us-gaap:StandbyLettersOfCreditMemberagl:DceInvestmentMember2022-09-300001831097agl:SecuredTermLoanAndRevolvingFacilityMembersrt:ScenarioForecastMemberus-gaap:BaseRateMember2023-10-012023-10-010001831097agl:SecuredTermLoanFacilityMember2021-02-182021-02-1800018310972021-12-310001831097srt:MinimumMemberagl:SecuredTermLoanFacilityMember2021-04-262021-04-260001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-04-300001831097agl:HawaiiReportingUnitMember2021-12-310001831097us-gaap:SalesRevenueNetMemberagl:PayorCMemberagl:PayorsMember2022-07-012022-09-300001831097agl:OtherOperatingRevenue1Member2022-07-012022-09-300001831097us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001831097agl:SecuredTermLoanAndRevolvingFacilityMember2022-01-012022-09-300001831097us-gaap:LondonInterbankOfferedRateLIBORMemberagl:SecuredTermLoanAndRevolvingFacilityMembersrt:MaximumMember2022-01-012022-09-300001831097agl:DirectContractingEntitiesMemberagl:MedicalServicesRevenueMember2022-01-012022-09-3000018310972022-09-300001831097agl:PayorAMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001831097agl:IndemnificationAssetsMember2022-09-300001831097agl:ContingentlyRedeemableCommonStockMember2020-12-310001831097agl:DirectContractingEntitiesMemberagl:MedicalServicesRevenueMember2021-07-012021-09-300001831097agl:MedicalServicesRevenue1Member2021-07-012021-09-300001831097us-gaap:CorporateDebtSecuritiesMemberagl:MarketableSecuritiesMember2022-01-012022-09-300001831097agl:SecuredRevolvingFacilityMembersrt:ScenarioForecastMemberus-gaap:UnfundedLoanCommitmentMember2023-10-012023-10-010001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-04-142021-04-140001831097us-gaap:OtherAssetsMemberagl:EquityMethodInvestmentsOtherMember2021-12-310001831097agl:ContingentlyRedeemableCommonStockMember2021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorsMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-3000018310972021-06-300001831097us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001831097us-gaap:AdditionalPaidInCapitalMember2020-12-310001831097agl:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorAMemberagl:PayorsMember2022-07-012022-09-300001831097us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001831097agl:GeneralAndAdministrative1Member2021-01-012021-09-300001831097agl:DirectContractingEntitiesMember2022-01-012022-09-300001831097us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberagl:MarketableSecuritiesMember2022-09-300001831097agl:GeneralAndAdministrative1Member2022-01-012022-09-300001831097agl:MedicalServicesRevenueMember2021-01-012021-09-300001831097us-gaap:EquityMethodInvestmentsMember2022-09-300001831097us-gaap:FairValueInputsLevel3Memberagl:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2022-09-300001831097agl:DirectContractingEntitiesMember2021-07-012021-09-300001831097us-gaap:FairValueInputsLevel2Member2022-09-300001831097agl:PayorBMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001831097agl:SecuredRevolvingFacilityMember2022-01-012022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorsMemberagl:PayorDMember2021-01-012021-09-300001831097us-gaap:LondonInterbankOfferedRateLIBORMemberagl:SecuredTermLoanAndRevolvingFacilityMember2022-01-012022-09-300001831097agl:SecuredTermLoanFacilityMember2021-02-180001831097us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberagl:MarketableSecuritiesMember2022-09-300001831097agl:MedicalClaimsAndRelatedPayablesMemberus-gaap:SegmentDiscontinuedOperationsMember2022-01-012022-09-300001831097us-gaap:AdditionalPaidInCapitalMember2021-12-310001831097us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-04-192021-04-190001831097agl:GeneralAndAdministrative1Member2022-07-012022-09-300001831097agl:OtherMedicalExpenses1Member2021-07-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorsMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001831097us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001831097srt:MaximumMemberagl:PayorDMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001831097us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001831097agl:OtherMemberagl:MarketableSecuritiesMember2022-01-012022-09-300001831097us-gaap:CommonStockMember2022-09-300001831097us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001831097us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-01-012022-09-300001831097us-gaap:IPOMember2021-01-012021-09-300001831097us-gaap:RetainedEarningsMember2021-01-012021-09-300001831097agl:GeneralAndAdministrative1Member2021-07-012021-09-300001831097agl:OtherMember2022-09-300001831097agl:MedicalServicesExpense1Member2021-07-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorCMemberagl:PayorsMember2022-01-012022-09-300001831097agl:OtherOperatingRevenueMember2022-01-012022-09-300001831097agl:SecuredTermLoanFacilityMember2021-04-262021-04-260001831097us-gaap:NoncontrollingInterestMember2021-09-3000018310972022-10-310001831097us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001831097agl:SecuredTermLoanFacilityMember2022-01-012022-09-300001831097agl:OtherMedicalExpenses1Member2021-01-012021-09-300001831097us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberagl:MarketableSecuritiesMember2022-09-300001831097agl:OtherMedicalExpenses1Member2022-07-012022-09-300001831097us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-09-300001831097agl:HealthPlanDepositsMember2021-12-310001831097agl:DirectContractingEntitiesMemberus-gaap:OtherAssetsMember2021-12-310001831097us-gaap:StandbyLettersOfCreditMember2022-09-300001831097agl:OtherMember2021-12-310001831097us-gaap:RetainedEarningsMember2021-12-310001831097us-gaap:IPOMemberagl:ContingentlyRedeemableCommonStockMember2021-01-012021-09-300001831097us-gaap:UnassertedClaimMember2021-12-310001831097us-gaap:AdditionalPaidInCapitalMember2022-09-300001831097agl:MedicalServicesRevenue1Member2021-01-012021-09-300001831097us-gaap:RetainedEarningsMember2021-06-3000018310972020-12-3100018310972022-01-012022-01-010001831097us-gaap:NoncontrollingInterestMember2022-07-012022-09-3000018310972021-01-012021-09-300001831097us-gaap:CommonStockMember2022-06-300001831097us-gaap:AdditionalPaidInCapitalMember2022-06-300001831097us-gaap:NoncontrollingInterestMember2021-06-300001831097agl:DirectContractingEntitiesMember2022-07-012022-09-300001831097agl:MedicalClaimsAndRelatedPayablesMember2021-12-310001831097agl:OtherOperatingRevenueMember2022-07-012022-09-300001831097agl:DepreciationAndAmortization1Member2022-01-012022-09-300001831097us-gaap:RetainedEarningsMember2020-12-310001831097us-gaap:AdditionalPaidInCapitalMember2021-06-3000018310972021-07-012021-09-300001831097agl:StockOptionsServiceOnlyConditionMember2021-01-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorBMemberagl:PayorsMember2022-07-012022-09-300001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-01-012021-09-300001831097agl:PayorAMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001831097us-gaap:FairValueInputsLevel3Member2022-09-300001831097us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorsMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001831097agl:EquityAwardsMarketAndOrPerformanceConditionMember2021-01-012021-09-300001831097agl:PayorCMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorBMemberagl:PayorsMember2021-07-012021-09-300001831097agl:MedicalServicesExpense1Member2022-01-012022-09-300001831097agl:LoansToPhysiciansPartnersMember2022-09-300001831097us-gaap:CommonStockMemberus-gaap:IPOMember2021-04-140001831097us-gaap:SalesRevenueNetMemberagl:PayorAMemberagl:PayorsMember2022-01-012022-09-300001831097agl:DirectContractingEntitiesMember2021-01-012021-09-300001831097agl:SecuredRevolvingFacilityMember2021-02-180001831097us-gaap:NoncontrollingInterestMember2021-01-012021-09-3000018310972021-09-300001831097agl:OtherMemberus-gaap:FairValueInputsLevel3Memberagl:MarketableSecuritiesMember2022-09-300001831097agl:MedicalClaimsAndRelatedPayablesMember2022-09-300001831097agl:OtherOperatingRevenueMember2021-01-012021-09-300001831097us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001831097agl:PriorCreditFacilityAndUnsecuredDebtMember2021-02-182021-02-180001831097srt:MinimumMember2022-09-300001831097agl:MedicalServicesRevenueMember2021-07-012021-09-300001831097agl:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2022-01-012022-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorCMemberagl:PayorsMember2021-01-012021-09-300001831097us-gaap:NoncontrollingInterestMember2022-09-300001831097us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001831097agl:DirectContractingEntitiesMemberagl:MedicalServicesRevenueMember2021-01-012021-09-300001831097agl:PayorCMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001831097agl:MedicalServicesRevenueMember2022-07-012022-09-300001831097us-gaap:LondonInterbankOfferedRateLIBORMemberagl:SecuredTermLoanAndRevolvingFacilityMembersrt:ScenarioForecastMember2023-10-012023-10-010001831097us-gaap:SalesRevenueNetMemberagl:PayorCMemberagl:PayorsMember2021-07-012021-09-300001831097agl:HawaiiReportingUnitMember2022-09-300001831097agl:DirectContractingEntitiesMemberus-gaap:OtherLiabilitiesMember2022-09-300001831097agl:MedicalServicesExpense1Member2022-07-012022-09-300001831097agl:OtherOperatingRevenue1Member2021-07-012021-09-300001831097agl:SecuredTermLoanAndRevolvingFacilityMemberus-gaap:BaseRateMember2022-01-012022-09-300001831097agl:MedicalServicesRevenue1Member2022-07-012022-09-300001831097agl:DepreciationAndAmortization1Member2021-07-012021-09-300001831097agl:TwoThousandAndTwentyOneSecuredTermLoanFacilityMember2021-04-262021-04-260001831097agl:OtherMemberagl:MarketableSecuritiesMember2022-09-300001831097us-gaap:RetainedEarningsMember2022-09-300001831097agl:MedicalServicesExpense1Member2021-01-012021-09-300001831097us-gaap:FairValueInputsLevel2Memberagl:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2022-09-300001831097agl:OtherMedicalExpenses1Member2022-01-012022-09-300001831097agl:OtherOperatingRevenueMember2021-07-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorAMemberagl:PayorsMember2021-07-012021-09-300001831097us-gaap:CommonStockMember2021-07-012021-09-300001831097agl:MedicalClaimsAndRelatedPayablesMember2022-01-012022-09-300001831097us-gaap:AdditionalPaidInCapitalMemberus-gaap:IPOMember2021-01-012021-09-300001831097agl:OtherOperatingRevenue1Member2021-01-012021-09-300001831097us-gaap:SalesRevenueNetMemberagl:PayorBMemberagl:PayorsMember2022-01-012022-09-300001831097us-gaap:EquityMethodInvestmentsMember2021-12-310001831097agl:MedicalClaimsAndRelatedPayablesMember2021-01-012021-09-300001831097agl:SecuredRevolvingFacilityMemberus-gaap:UnfundedLoanCommitmentMember2022-01-012022-09-300001831097agl:MedicalClaimsAndRelatedPayablesMember2021-09-300001831097agl:MedicalServicesRevenueMember2022-01-012022-09-300001831097agl:SecuredTermLoanFacilityMember2022-09-300001831097agl:DirectContractingEntitiesMemberagl:MedicalServicesRevenueMember2022-07-012022-09-300001831097us-gaap:CommonStockMember2020-12-310001831097agl:PayorsMemberagl:PayorDMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001831097us-gaap:StandbyLettersOfCreditMember2022-01-012022-09-300001831097agl:OtherOperatingRevenue1Member2022-01-012022-09-300001831097agl:EquityMethodInvestmentsOtherMemberus-gaap:OtherAssetsMember2022-09-300001831097agl:DepreciationAndAmortization1Member2021-01-012021-09-300001831097agl:EquityAwardsMarketAndOrPerformanceConditionMember2022-01-012022-09-300001831097agl:MedicalClaimsAndRelatedPayablesMember2020-12-310001831097us-gaap:CommonStockMember2021-09-300001831097us-gaap:FairValueInputsLevel1Memberagl:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2022-09-300001831097agl:PayorBMemberagl:PayorsMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001831097us-gaap:RetainedEarningsMember2022-01-012022-09-300001831097us-gaap:RetainedEarningsMember2022-07-012022-09-300001831097us-gaap:IPOMember2021-04-012021-04-300001831097agl:MedicalClaimsAndRelatedPayablesMemberus-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-09-300001831097srt:MinimumMember2022-01-012022-09-3000018310972022-01-012022-09-3000018310972022-06-300001831097us-gaap:NoncontrollingInterestMember2021-12-310001831097us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001831097agl:DirectContractingEntitiesMemberus-gaap:OtherLiabilitiesMember2021-12-310001831097us-gaap:CommonStockMember2022-01-012022-09-300001831097us-gaap:CommonStockMember2021-06-300001831097us-gaap:CommonStockMember2021-12-31xbrli:pureagl:Geographiesagl:Equityxbrli:sharesagl:Dceiso4217:USDxbrli:sharesiso4217:USDagl:Physicianagl:Medicareagl:Entity

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended September 30, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission file number 001-40332

 

 

agilon health, inc.

(Exact name of registrant as specified in its charter)

 

Delaware

37-1915147

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

6210 E Hwy 290, Suite 450

Austin, TX 78723

(Address of principal executive offices)

(562) 256-3800

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

AGL

New York Stock Exchange

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesNo

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

  ☐

 

Accelerated Filer

  ☐

 

 

 

 

 

Non-accelerated Filer

  ☒

 

Smaller Reporting Company

 

 

 

 

 

 

 

 

Emerging Growth Company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES NO ☒

At October 31, 2022, there were 411,854,786 shares of the registrant’s $0.01 par value common stock outstanding.

 

 


 

agilon health, inc.

INDEX

 

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

Item 1.

Unaudited Financial Statements:

 

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021

3

 

 

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021

5

 

 

 

 

Condensed Consolidated Statements of Contingently Redeemable Common Stock and Stockholders’ Equity (Deficit) for the Three and Nine Months Ended September 30, 2022 and 2021

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021

8

 

 

 

 

Notes to the Condensed Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

 

 

 

Item 4.

Controls and Procedures

35

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

36

 

 

 

Item 1A.

Risk Factors

36

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

36

 

 

 

Item 5.

Other Information

36

 

 

 

Item 6.

Exhibits

38

 

 

 

Signatures

39

 

2

 


 

agilon health, inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

551,287

 

 

$

1,040,039

 

Restricted cash and equivalents

 

 

13,192

 

 

 

14,781

 

Marketable securities

 

 

407,993

 

 

 

 

Receivables, net

 

 

637,731

 

 

 

293,407

 

Prepaid expenses and other current assets, net

 

 

24,067

 

 

 

18,968

 

Total current assets

 

 

1,634,270

 

 

 

1,367,195

 

Property and equipment, net

 

 

17,940

 

 

 

9,161

 

Intangible assets, net

 

 

60,602

 

 

 

55,398

 

Goodwill

 

 

41,540

 

 

 

41,540

 

Other assets, net

 

 

116,083

 

 

 

112,958

 

Total assets

 

$

1,870,435

 

 

$

1,586,252

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Medical claims and related payables

 

$

490,840

 

 

$

239,014

 

Accounts payable and accrued expenses

 

 

162,386

 

 

 

112,946

 

Current portion of long-term debt

 

 

5,000

 

 

 

5,000

 

Total current liabilities

 

 

658,226

 

 

 

356,960

 

Long-term debt, net of current portion

 

 

39,713

 

 

 

43,401

 

Other liabilities

 

 

87,207

 

 

 

94,295

 

Total liabilities

 

 

785,146

 

 

 

494,656

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficit):

 

 

 

 

 

 

Common stock, $0.01 par value: 2,000,000 shares authorized;
   
411,741 and 400,095 shares issued and outstanding, respectively

 

 

4,117

 

 

 

4,001

 

Additional paid-in capital

 

 

2,094,562

 

 

 

2,045,572

 

Accumulated deficit

 

 

(1,007,764

)

 

 

(957,677

)

Accumulated other comprehensive income (loss)

 

 

(5,098

)

 

 

 

Total agilon health, inc. stockholders' equity (deficit)

 

 

1,085,817

 

 

 

1,091,896

 

Noncontrolling interests

 

 

(528

)

 

 

(300

)

Total stockholders’ equity (deficit)

 

 

1,085,289

 

 

 

1,091,596

 

Total liabilities and stockholders’ equity (deficit)

 

$

1,870,435

 

 

$

1,586,252

 

 

The condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) as agilon health, inc., together with its consolidated subsidiaries and variable interest entities (the “Company”), is the primary beneficiary of these VIEs. The condensed consolidated balance sheets include total assets that can only be used to settle obligations of the Company’s consolidated VIEs totaling $805.9 million and $420.5 million as of September 30, 2022 and December 31, 2021, respectively, and total liabilities of the Company’s consolidated VIEs for which creditors do not have recourse to the general credit of the primary beneficiary of $587.8 million and $282.0 million as of September 30, 2022 and December 31, 2021, respectively. See Note 14 for additional details.

See accompanying Notes to the Condensed Consolidated Financial Statements.

3

 


 

agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Medical services revenue

 

$

693,934

 

 

$

457,646

 

 

$

2,015,541

 

 

$

1,367,736

 

Other operating revenue

 

 

924

 

 

 

967

 

 

 

2,896

 

 

 

2,937

 

Total revenues

 

 

694,858

 

 

 

458,613

 

 

 

2,018,437

 

 

 

1,370,673

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Medical services expense

 

 

618,287

 

 

 

414,202

 

 

 

1,771,635

 

 

 

1,217,039

 

Other medical expenses

 

 

50,659

 

 

 

29,454

 

 

 

144,512

 

 

 

86,809

 

General and administrative (including noncash stock-based
   compensation expense of $
7,907, $11,960, $18,430,
   and $
287,980, respectively)

 

 

51,980

 

 

 

46,643

 

 

 

143,738

 

 

 

401,981

 

Depreciation and amortization

 

 

3,450

 

 

 

3,915

 

 

 

9,865

 

 

 

10,923

 

Total expenses

 

 

724,376

 

 

 

494,214

 

 

 

2,069,750

 

 

 

1,716,752

 

Income (loss) from operations

 

 

(29,518

)

 

 

(35,601

)

 

 

(51,313

)

 

 

(346,079

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

574

 

 

 

(269

)

 

 

9,840

 

 

 

4,034

 

Gain (loss) on lease terminations

 

 

 

 

 

 

 

 

(5,458

)

 

 

 

Interest expense

 

 

(1,000

)

 

 

(867

)

 

 

(2,816

)

 

 

(5,306

)

Income (loss) before income taxes

 

 

(29,944

)

 

 

(36,737

)

 

 

(49,747

)

 

 

(347,351

)

Income tax benefit (expense)

 

 

(559

)

 

 

(256

)

 

 

(1,068

)

 

 

(707

)

Income (loss) from continuing operations

 

 

(30,503

)

 

 

(36,993

)

 

 

(50,815

)

 

 

(348,058

)

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(224

)

 

 

1,117

 

 

 

526

 

 

 

(1,781

)

Income tax benefit (expense)

 

 

(12

)

 

 

(82

)

 

 

(26

)

 

 

(211

)

Total discontinued operations

 

 

(236

)

 

 

1,035

 

 

 

500

 

 

 

(1,992

)

Net income (loss)

 

 

(30,739

)

 

 

(35,958

)

 

 

(50,315

)

 

 

(350,050

)

Noncontrolling interests’ share in (earnings) loss

 

 

71

 

 

 

115

 

 

 

228

 

 

 

284

 

Net income (loss) attributable to common shares

 

$

(30,668

)

 

$

(35,843

)

 

$

(50,087

)

 

$

(349,766

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share, basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.07

)

 

$

(0.09

)

 

$

(0.12

)

 

$

(0.95

)

Discontinued operations

 

$

 

 

$

 

 

$

 

 

$

(0.01

)

Weighted average shares outstanding, basic and diluted

 

 

411,065

 

 

 

391,229

 

 

 

406,823

 

 

 

365,018

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

4

 


 

agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

(30,739

)

 

$

(35,958

)

 

$

(50,315

)

 

$

(350,050

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on marketable securities,
   net of tax

 

 

(5,611

)

 

 

 

 

 

(5,098

)

 

 

 

Total comprehensive income (loss)

 

 

(36,350

)

 

 

(35,958

)

 

 

(55,413

)

 

 

(350,050

)

Comprehensive (income) loss attributable to
   noncontrolling interests

 

 

71

 

 

 

115

 

 

 

228

 

 

 

284

 

Total comprehensive income (loss) attributable to
   agilon health, inc.

 

$

(36,279

)

 

$

(35,843

)

 

$

(55,185

)

 

$

(349,766

)

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

5

 


 

agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(in thousands)

(unaudited)

For the three months ended September 30, 2022:

 

 

Total Stockholders’ Equity

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Noncontrolling

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (loss)

 

 

Interest

 

 

(Deficit)

 

July 1, 2022

 

 

408,204

 

 

$

4,082

 

 

$

2,076,329

 

 

$

(977,096

)

 

$

513

 

 

$

(457

)

 

$

1,103,371

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

(30,668

)

 

 

 

 

 

(71

)

 

 

(30,739

)

Other comprehensive
   income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,611

)

 

 

 

 

 

(5,611

)

Exercise of stock options

 

 

3,390

 

 

 

33

 

 

 

10,356

 

 

 

 

 

 

 

 

 

 

 

 

10,389

 

Vesting of restricted stock units

 

 

149

 

 

 

2

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld related to
   net share settlement

 

 

(2

)

 

 

 

 

 

(28

)

 

 

 

 

 

 

 

 

 

 

 

(28

)

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

7,907

 

 

 

 

 

 

 

 

 

 

 

 

7,907

 

September 30, 2022

 

 

411,741

 

 

$

4,117

 

 

$

2,094,562

 

 

$

(1,007,764

)

 

$

(5,098

)

 

$

(528

)

 

$

1,085,289

 

For the nine months ended September 30, 2022:

 

 

Total Stockholders’ Equity

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Noncontrolling

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (loss)

 

 

Interest

 

 

(Deficit)

 

January 1, 2022

 

 

400,095

 

 

$

4,001

 

 

$

2,045,572

 

 

$

(957,677

)

 

$

 

 

$

(300

)

 

$

1,091,596

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

(50,087

)

 

 

 

 

 

(228

)

 

 

(50,315

)

Other comprehensive
   income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,098

)

 

 

 

 

 

(5,098

)

Exercise of stock options

 

 

11,392

 

 

 

113

 

 

 

31,349

 

 

 

 

 

 

 

 

 

 

 

 

31,462

 

Vesting of restricted stock units

 

 

289

 

 

 

3

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld related to
   net share settlement

 

 

(35

)

 

 

 

 

 

(786

)

 

 

 

 

 

 

 

 

 

 

 

(786

)

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

18,430

 

 

 

 

 

 

 

 

 

 

 

 

18,430

 

September 30, 2022

 

 

411,741

 

 

$

4,117

 

 

$

2,094,562

 

 

$

(1,007,764

)

 

$

(5,098

)

 

$

(528

)

 

$

1,085,289

 

 

6

 


 

agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(in thousands)

(unaudited)

 

For the three months ended September 30, 2021:

 

 

 

Total Stockholders’ Equity

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated

 

 

Noncontrolling

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Interest

 

 

(Deficit)

 

July 1, 2021

 

 

390,883

 

 

$

3,909

 

 

$

2,011,651

 

 

$

(865,113

)

 

$

(169