Company Quick10K Filing
R1 RCM
Price9.80 EPS-0
Shares166 P/E-1,082
MCap1,623 P/FCF37
Net Debt312 EBIT-3
TEV1,935 TEV/EBIT-717
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-05
10-Q 2020-03-31 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-02-20
10-Q 2019-09-30 Filed 2019-11-05
10-Q 2019-06-30 Filed 2019-08-06
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-09
10-Q 2017-09-30 Filed 2017-10-31
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-03-31 Filed 2015-07-07
10-K 2014-12-31 Filed 2015-06-23
10-Q 2014-12-31 Filed 2015-08-05
10-Q 2014-09-30 Filed 2015-06-23
10-Q 2014-06-30 Filed 2015-06-23
10-Q 2014-03-31 Filed 2015-06-23
10-K 2013-12-31 Filed 2014-12-30
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-10
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-12
10-K 2010-12-31 Filed 2011-03-18
10-Q 2010-09-30 Filed 2010-11-12
10-Q 2010-06-30 Filed 2010-08-13
8-K 2020-08-04 Earnings, Exhibits
8-K 2020-07-20 Regulation FD, Exhibits
8-K 2020-07-14 Officers, Exhibits
8-K 2020-06-03
8-K 2020-05-27
8-K 2020-05-05
8-K 2020-04-29
8-K 2020-04-01
8-K 2020-03-20
8-K 2020-02-20
8-K 2020-01-09
8-K 2019-12-27
8-K 2019-11-05
8-K 2019-09-20
8-K 2019-08-07
8-K 2019-08-06
8-K 2019-06-26
8-K 2019-06-13
8-K 2019-05-09
8-K 2019-04-16
8-K 2019-04-10
8-K 2019-03-07
8-K 2019-02-22
8-K 2019-01-07
8-K 2018-11-07
8-K 2018-10-01
8-K 2018-09-20
8-K 2018-08-09
8-K 2018-07-24
8-K 2018-06-24
8-K 2018-05-31
8-K 2018-05-30
8-K 2018-05-16
8-K 2018-05-09
8-K 2018-05-08
8-K 2018-04-26
8-K 2018-04-24
8-K 2018-04-17
8-K 2018-04-02
8-K 2018-03-26
8-K 2018-03-20
8-K 2018-03-09
8-K 2018-02-23
8-K 2018-01-24
8-K 2018-01-08

RCM 10Q Quarterly Report

Part I - Financial Information
Item 1.Consolidated Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Qualitative and Quantitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.Exhibits
EX-10.1 rachelwilsonofferletter.htm
EX-10.2 addendumno7r1imhservic.htm
EX-31.1 exhibit311-q22020.htm
EX-31.2 exhibit312-q22020.htm
EX-32.1 exhibit321-q22020.htm
EX-32.2 exhibit322-q22020.htm

R1 RCM Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.00.70.50.2-0.0-0.32014201620182020
Assets, Equity
0.40.30.20.10.0-0.12014201620182020
Rev, G Profit, Net Income
0.40.20.0-0.1-0.3-0.52014201620182020
Ops, Inv, Fin

ah-20200630
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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 June 30, 2020
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: 001-34746
R1 RCM INC.
(Exact name of registrant as specified in its charter)
Delaware02-0698101
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
401 North Michigan Avenue
60611
Suite 2700
Chicago
Illinois
(Address of principal executive offices)(Zip code)
(312324-7820
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareRCMNASDAQ
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.  Yes þ     No 
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 for such shorter period that the registrant was required to submit such files).  Yes þ    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerý
Accelerated filerNon-accelerated filerSmaller reporting companyEmerging 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 
As of July 28, 2020, the registrant had 115,578,971 shares of common stock, par value $0.01 per share, outstanding.






Table of Contents

 
 
 
 
  




PART I — FINANCIAL INFORMATION
ITEM 1.CONSOLIDATED FINANCIAL STATEMENTS
3


R1 RCM Inc.
Consolidated Balance Sheets
(In millions, except share and per share data)


(Unaudited)
 June 30,December 31,
 20202019
Assets
Current assets:
Cash and cash equivalents$123.1  $92.0  
Accounts receivable, net of $5.1 million and $2.8 million allowance
64.3  52.3  
Accounts receivable, net of $0.1 million and $0.0 million allowance - related party
25.3  30.8  
Prepaid expenses and other current assets48.0  41.6  
Total current assets260.7  216.7  
Property, equipment and software, net112.3  116.9  
Operating lease right-of-use assets68.3  77.9  
Intangible assets, net240.0  164.7  
Goodwill379.8  253.2  
Non-current deferred tax assets39.1  64.2  
Non-current portion of restricted cash equivalents1.0  0.5  
Other assets39.7  35.0  
Total assets$1,140.9  $929.1  
Liabilities
Current liabilities:
Accounts payable$24.2  $20.2  
Current portion of customer liabilities19.9  14.0  
Current portion of customer liabilities - related party23.4  34.1  
Accrued compensation and benefits52.4  95.1  
Current portion of operating lease liabilities13.4  12.8  
Current portion of long-term debt25.8  16.3  
Other accrued expenses46.4  40.0  
Total current liabilities205.5  232.5  
Non-current portion of customer liabilities - related party18.2  18.6  
Non-current portion of operating lease liabilities76.5  82.7  
Long-term debt538.6  337.7  
Other non-current liabilities15.9  10.4  
Total liabilities854.7  681.9  
8.00% Series A convertible preferred stock, par value $0.01, 370,000 shares authorized, 277,296 shares issued and outstanding as of June 30, 2020 (aggregate liquidation value of $282.8); 370,000 shares authorized, 266,529 shares issued and outstanding as of December 31, 2019 (aggregate liquidation value of $271.9)
240.1  229.1  
Stockholders’ equity:
Common stock, $0.01 par value, 500,000,000 shares authorized, 129,289,960 shares issued and 115,374,788 shares outstanding at June 30, 2020; 127,807,546 shares issued and 114,021,280 shares outstanding at December 31, 2019
1.3  1.3  
Additional paid-in capital375.2  372.7  
Accumulated deficit(245.3) (277.8) 
Accumulated other comprehensive loss(10.4) (4.5) 
Treasury stock, at cost, 13,915,172 shares as of June 30, 2020; 13,786,266 shares as of December 31, 2019
(74.7) (73.6) 
Total stockholders’ equity46.1  18.1  
Total liabilities and stockholders’ equity$1,140.9  $929.1  
See accompanying notes to consolidated financial statements.
4


R1 RCM Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
(In millions, except share and per share data)

 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Net services revenue ($206.4 million and $414.8 million for the three and six months ended June 30, 2020, respectively, and $199.0 million and $380.8 million for the three and six months ended June 30, 2019, respectively, from related party)
$314.7  $295.0  $635.2  $570.9  
Operating expenses:
Cost of services248.3  246.1  502.2  483.3  
Selling, general and administrative23.3  25.8  48.8  48.3  
Other expenses18.0  10.7  26.7  19.5  
Total operating expenses289.6  282.6  577.7  551.1  
Income from operations25.1  12.4  57.5  19.8  
Loss on debt extinguishment  18.8    18.8  
Net interest expense4.8  9.9  8.6  20.1  
Income (loss) before income tax provision (benefit)20.3  (16.3) 48.9  (19.1) 
Income tax provision (benefit)5.2  (11.1) 15.6  (14.1) 
Net income (loss)$15.1  $(5.2) $33.3  $(5.0) 
Net income (loss) per common share:
Basic$0.04  $(0.09) $0.10  $(0.14) 
Diluted$0.03  $(0.09) $0.08  $(0.14) 
Weighted average shares used in calculating net income (loss) per common share:
Basic115,067,552  110,956,014  114,754,298  110,382,509  
Diluted165,887,964  110,956,014  167,809,324  110,382,509  
Consolidated statements of comprehensive income (loss)
Net income (loss)15.1  (5.2) 33.3  (5.0) 
Other comprehensive income (loss):
Net change on derivatives designated as cash flow hedges, net of tax0.8  0.1  (3.6) 0.3  
Foreign currency translation adjustments(0.2)   (2.3) 0.5  
Comprehensive income (loss)$15.7  $(5.1) $27.4  $(4.2) 

Basic:
Net income (loss)$15.1  $(5.2) $33.3  $(5.0) 
Less dividends on preferred shares(5.6) (5.1) (11.0) (10.1) 
Less income allocated to preferred shareholders(4.7)   (11.0)   
Net income (loss) available/allocated to common shareholders - basic$4.8  $(10.3) $11.3  $(15.1) 
Diluted:
Net income (loss)$15.1  $(5.2) $33.3  $(5.0) 
Less dividends on preferred shares(5.6) (5.1) (11.0) (10.1) 
Less income allocated to preferred shareholders(3.8)   (8.9)   
Net income (loss) available/allocated to common shareholders - diluted$5.7  $(10.3) $13.4  $(15.1) 
See accompanying notes to consolidated financial statements.
5


R1 RCM Inc.
Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited)
(In millions, except share and per share data)

 
 Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
 SharesAmountSharesAmount    
Balance at December 31, 2019127,807,546  $1.3  (13,786,266) $(73.6) $372.7  $(277.8) $(4.5) $18.1  
Impact of credit-loss standard adoption, net of tax of $0.3 million
—  —  —  —  —  (0.8) —  (0.8) 
Adjusted balance at January 1, 2020127,807,546  $1.3  (13,786,266) $(73.6) $372.7  $(278.6) $(4.5) $17.3  
Share-based compensation expense—  —  —  —  4.8  —  —  4.8  
Issuance of common stock related to share-based compensation plans1,720  —  —  —  —  —  —  —  
Exercise of vested stock options553,520  —  —  —  3.1  —  —  3.1  
Dividends paid/accrued—  —  —  —  (5.4) —  —  (5.4) 
Acquisition of treasury stock related to share-based compensation plans—  —  (545) —  —  —  —  —  
Net change on derivatives designated as cash flow hedges, net of tax of $1.5 million
—  —  —  —  —  —  (4.4) (4.4) 
Foreign currency translation adjustments—  —  —  —  —  —  (2.1) (2.1) 
Net income—  —  —  —  —  18.2  —  18.2  
Balance at March 31, 2020128,362,786  $1.3  (13,786,811) $(73.6) $375.2  $(260.4) $(11.0) $31.5  
Share-based compensation expense—  —  —  —  4.4  —  —  4.4  
Issuance of common stock related to share-based compensation plans463,038  —  —  —  —  —  —  —  
Exercise of vested stock options464,136  —  —  —  1.2  —  —  1.2  
Dividends paid/accrued—  —  —  —  (5.6) —  —  (5.6) 
Acquisition of treasury stock related to share-based compensation plans—  —  (128,361) (1.1) —  —  —  (1.1) 
Net change on derivatives designated as cash flow hedges, net of tax of $0.3 million
—  —  —  —  —  —  0.8  0.8  
Foreign currency translation adjustments—  —  —  —  —  —  (0.2) (0.2) 
Net income—  —  —  —  —  15.1  —  15.1  
Balance at June 30, 2020129,289,960  $1.3  (13,915,172) $(74.7) $375.2  $(245.3) $(10.4) $46.1  
See accompanying notes to consolidated financial statements.

6


R1 RCM Inc.
Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited)
(In millions, except share and per share data)

 Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
 SharesAmountSharesAmount    
Balance at December 31, 2018123,353,656  $1.2  (12,811,755) $(62.6) $361.0  $(289.8) $(3.5) $6.3  
Share-based compensation expense—  —  —  —  4.5  —  —  4.5  
Issuance of common stock related to share-based compensation plans2,613  —  —  —  —  —  —  —  
Exercise of vested stock options145,235  —  —  —  0.4  —  —  0.4  
Dividends paid/accrued—  —  —  —  (5.0) —  —  (5.0) 
Acquisition of treasury stock related to share-based compensation plans—  —  (342,998) (3.3) —  —  —  (3.3) 
Forfeitures—  —  (1,208) —  —  —  —  —  
Net change on derivatives designated as cash flow hedges, net of tax of $0.1 million
—  —  —  —  —  —  0.2  0.2  
Foreign currency translation adjustments—  —  —  —  —  —  0.5  0.5  
Net income (loss)—  —  —  —  —  0.2  —  0.2  
Balance at March 31, 2019123,501,504  $1.2  (13,155,961) $(65.9) $360.9  $(289.6) $(2.8) $3.8  
Share-based compensation expense—  —  —  —  4.8  —  —  4.8  
Issuance of common stock related to share-based compensation plans359,488  —  —  —  —  —  —  —  
Exercise of vested stock options1,329,175  0.1  —  —  7.3  —  —  7.4  
Dividends paid/accrued—  —  —  —  (5.1) —  —  (5.1) 
Acquisition of treasury stock related to share-based compensation plans—  —  (143,739) (1.4) —  —  —  (1.4) 
Forfeitures—  —    —  —  —  —  —  
Net change on derivatives designated as cash flow hedges, net of tax of $0.0 million
—  —  —  —  —  —  0.1  0.1  
Foreign currency translation adjustments—  —  —  —  —  —  —    
Net income (loss)—  —  —  —  —  (5.2) —  (5.2) 
Balance at June 30, 2019125,190,167  $1.3  (13,299,700) $(67.3) $367.9  $(294.8) $(2.7) $4.4  
See accompanying notes to consolidated financial statements.
7


R1 RCM Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)


 Six Months Ended June 30,
 20202019
Operating activities
Net income (loss)$33.3  $(5.0) 
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization33.6  25.8