Cano Health Announces Financial Results for the Fourth Quarter and Full Year 2021

Cano Health, Inc. (“Cano Health” or the “Company”) (NYSE: CANO), a leading value-based primary care provider and population health company, today announced financial results for the fourth quarter and full year ended December 31, 2021.

Financial Results and Recent Highlights
Fourth quarter results

  • Total membership of 227,005, including 125,999 Medicare capitated members, an increase of 115% and 69%, respectively year-over-year
  • Total revenue of $492.3 million, an increase of 90% year-over-year
  • Net income of $0.5 million, benefiting from a $58.3 million fair value adjustment to warrant liabilities
  • Adjusted EBITDA(1) of $11.1 million, compared to $18.1 million for the fourth quarter of 2020

Full year results

  • Total revenue of $1.6 billion, an increase of 94% year-over-year
  • Full year net loss of $116.7 million, benefiting from an $82.9 million fair value adjustment to warrant liabilities
  • Full year Adjusted EBITDA(1) of $27.3 million, compared to $72.8 million for the year ended December 31, 2020

As of March 11, 2022, the Company had approximately 200 million shares of Class A common stock and 284 million shares of Class B common stock issued and outstanding. Total share count for the purposes of calculating market capitalization was approximately 484 million.

“Cano Health’s fourth quarter results reflect the continued positive momentum in the growth of our operations,” said Dr. Marlow Hernandez, Chairman and CEO of Cano Health.  “We exceeded our most recent membership guidance and expanded our clinical capacity in eight states and Puerto Rico, allowing us to accelerate growth in 2022.  Since founding the company over 10 years ago, I have never been more excited about what the Cano Health team is going to accomplish this year.”

(1) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the Reconciliation of Non-GAAP Adjusted EBITDA table included in this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

COVID-19 Update and Medical Claims Expense Ratio
In December of 2021, the highly transmissible Omicron variant of COVID-19 became prevalent in the U.S.  Cano Health members experienced a significant, but transient, increase in COVID-19 case incidence. However, Cano Health’s monthly total hospital admissions per thousand remained stable, and through February 2022, COVID-19 average admissions per thousand remained well below prior peak levels.  Additional detail is provided in the Financial Supplement found on the Investor Relations section of our website (   

Restatement of the Company’s 2021 Quarterly Periods
As disclosed in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2022, the Company concluded that the previously issued financial results for the quarterly periods for March 31, 2021, June 30, 2021 and September 30, 2021 require restatement.  The restatement results from the Company’s correction of its accounting for Medicare Risk Adjustment (MRA) revenue within Medicare Advantage contracts.  The correction changes the timing of the revenue recognition associated with MRA, which resulted in adjustments to capitated revenue, direct patient expense, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued expenses.  The restatement did not impact the Company’s cash from operations, its cash position, or estimated collectability of receivables. The Company’s restated quarterly financial results for 2021 will be included in the Annual Report on Form 10-K for the year ended December 31, 2021 to be filed today.  The Company, in consultation with its independent auditors, concluded that the effect of the adjustments was not material as of and for the fiscal years ended December 31, 2019 and 2020.

Impact on 2021 Results and 2022 Guidance 
As a result of the restatement, approximately $122 million of MRA revenue related to care provided in 2021 that would have previously been recognized in 2021 is expected to be recognized in 2022. The corresponding $122 million reduction in 2021 revenue is partially offset by $10 million in MRA revenue that was previously recognized in 2020 under the prior accounting methodology, for a net negative impact to 2021 revenue of approximately $112 million.

Also, as a result of the restatement, approximately $101 million of Adjusted EBITDA related to the change in MRA revenue described above, as well as other non-cash items, is expected to be recognized in 2022.  The corresponding $101 million reduction in 2021 Adjusted EBITDA is partially offset by $10 million of Adjusted EBITDA that was previously recognized in 2020 under the prior accounting methodology, for a negative impact to 2021 Adjusted EBITDA of $91 million.

For the fiscal year 2022 revenue guidance, the net positive impact from the restatement is expected to be approximately $69 million.  This consists of $122 million of MRA revenue related to care provided in 2021, net of $53 million of MRA revenue included in previous 2022 guidance that is now expected to be recognized in 2023.

For fiscal year 2022 Adjusted EBITDA guidance, the net positive impact from the restatement is expected to be approximately $58 million.  This consists of $101 million of Adjusted EBITDA that will now be recognized in 2022, partially offset by $43 million in Adjusted EBITDA included in previous 2022 guidance that is now expected to be recognized in 2023.

The Company is updating its guidance for full year 2022 provided on November 9, 2021.  Consistent with that guidance, the outlook below does not include the impact of additional acquisitions.  The updated outlook for full year 2022 is as follows:

  • Membership in the range of 290,000 to 295,000; an increase from the prior guidance of 280,000 to 285,000; membership as of March 31, 2022 is expected to be approximately 265,000, an increase from approximately 253,000 members as of January 1, 2022
  • Total revenue in the range of $2.8 billion to $2.9 billion, an increase from the prior guidance of $2.6 to $2.7 billion
  • Medical claims expense ratio (MCR) in the range of 76.0% to 76.5%, an improvement from 80.5% for 2021, primarily reflecting the recognition of MRA revenue associated with members cared for in 2020 and 2021, offset in part by a higher MCR for Direct Contracting Entity (DCE) members
  • Adjusted EBITDA in the range of $230 million to $240 million, an increase from the previous range of $170 millionto $175 million, reflecting the impact of the restatement and operational improvements
  • The Company plans to further expand clinical capacity during the year and expects to operate 184-189 medical centers by the end of 2022, compared to 130 medical centers in operation on December 31, 2021
  • The Company expects to be able to achieve its 2022 guidance without the need for additional financing

We have not reconciled our expectations as to non-GAAP measures in future periods to their most directly comparable GAAP measure because certain costs and expenses are outside of our control or cannot be reasonably predicted. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

Conference Call Information
Cano Health will host a conference call today at 5:00 PM Eastern Time to review the Company’s business and financial results for the quarter and full year ended December 31, 2021.

To access the live call and webcast, please dial (844) 684-0650 for U.S. participants, or +1 (343) 761-2594 for international participants, and reference the Cano Health Fourth Quarter 2021 Earnings Conference Call. The conference call will also be webcast live in the “Events & Presentations” section of the Investor page of the Cano Health website.

A replay will be available in the “Events & Presentations” section of the Cano Health website for on-demand listening shortly after the completion of the call and will be available for 30 days.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events and involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. Such forward-looking statement include, without limitation, our anticipated results of operations, including our financial guidance for the 2022 fiscal year, including the anticipated impact of the restatement on such guidance, the anticipated revenue and Adjusted EBITDA included in previous 2022 guidance that is now expected to be recognized in 2023, our business strategies, our projected costs, prospects and plans, and other aspects of our operations or operating results. These forward-looking statements generally can be identified by phrases such as “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations and financial condition. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; adverse effects on the Company’s business as a result of the restatement; our ability to realize expected results with respect to patient membership, total revenue and earnings; our ability to enter into new markets and continue our growth; our ability to integrate our acquisitions and achieve desired synergies; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of COVID-19 on our business and results of operation; our future capital requirements and sources and uses of cash, including funds to satisfy our liquidity needs; and our ability to recruit and retain qualified team members and independent physicians. For a detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission (the “SEC”). All information provided in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.

Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined by the SEC rules. EBITDA and Adjusted EBITDA have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). EBITDA is defined as GAAP net income (loss) before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA, adjusted to add back the effect of certain expenses, such as stock-based compensation expense, de novo losses (consisting of losses incurred in the twelve months after the opening of a new facility), acquisition transaction costs (consisting of transaction costs, fair value adjustments in contingent consideration, management fees and corporate development payroll costs), restructuring and other charges, changes in fair value of contingent consideration, loss on extinguishment of debt, changes in fair value of an embedded derivative, and changes in fair value of warrant liabilities. We believe these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing our financial measures with other similar companies. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense, income and other items are excluded or included in determining these non-GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of those measures to their most directly comparable GAAP measures is available under the heading “Reconciliation of Non-GAAP Measures.”

About Cano Health 
Cano Health (NYSE: CANO) is a high-touch, technology-powered healthcare company delivering personalized, value-based primary care to more than 250,000 members. With its headquarters in Miami, Florida, Cano Health is transforming healthcare by delivering primary care that measurably improves the health, wellness, and quality of life of its patients and the communities it serves. Founded in 2009, Cano Health has more than 4,000 employees, and operates primary care medical centers and supports affiliated providers in eight states and Puerto Rico. For more information, visit or

Investor Relations Contact:
Derek Fiebig
Cano Health, Inc.
(786) 206-1930
[email protected]  

Media Relations Contact:
Georgi Morales Pipkin
Cano Health, Inc.
(786) 206-3322
[email protected]

 Three Months Ended 
December 31,
Twelve Months Ended 
December 31,
(in thousands, except share and per share data)2021202020212020
Capitated revenue$         464,516$         248,257$      1,529,120$         796,373
Fee-for-service and other revenue27,73910,18380,24935,203
Total revenue492,255258,4401,609,369831,576
Operating expenses:    
Third-party medical costs362,870182,7081,231,047564,987
Direct patient expense59,14128,951179,353101,358
Selling, general and administrative expenses93,34733,728252,133103,962
Depreciation and amortization expense18,6955,75849,44118,499
Transaction costs and other7,98813,09144,26242,945
Change in fair value of contingent consideration(7,528)65(11,680)65
Total operating expenses534,513264,3011,744,556831,816
Income (loss) from operations(42,258)(5,861)(135,187)(240)
Other income and expense:    
Interest expense(14,928)(12,274)(51,291)(34,002)
Interest income814320
Loss on extinguishment of debt110(23,277)(13,115)(23,277)
Change in fair value of embedded derivative(7,320)(12,764)
Change in fair value of warrant liabilities58,34982,914
Other income (expense)6(300)(48)(450)
Total other income (expense)43,537(43,090)18,464(70,173)
Net loss before income tax benefit (expense)1,279(48,951)(116,723)(70,413)
Income tax expense (benefit)77635714651
Net income (loss)$                503$          (49,308)$        (116,737)$          (71,064)
Net income (loss) attributable to non-controlling interests(158)(98,717)
Net loss attributable to Class A common stockholders$                661$                   —$          (18,020)$                   —
Net loss per share attributable to Class A common stockholders, basic$                  —N/A$              (0.11)N/A
Net loss per share attributable to Class A common stockholders, diluted$             (0.12)N/A$              (0.28)N/A
Weighted-average shares used in computation of earnings per share:    
  As of,
(in thousands) December 31, 
 December 31, 
Current assets:    
Cash, cash equivalents and restricted cash $         163,170 $           33,807
Accounts receivable, net of unpaid service provider costs 133,433 67,353
Inventory 1,107 922
Prepaid expenses and other current assets 19,525 8,937
Total current assets 317,235 111,019
Property and equipment, net 85,261 38,126
Operating lease right of use assets 132,173 
Goodwill 769,667 234,328
Payor relationships, net 576,648 189,570
Other intangibles, net 248,973 36,785
Other assets 13,582 4,362
Total assets 2,143,539 614,190
Liabilities and stockholders’ equity / members’ capital    
Current liabilities:    
Current portion of notes payable 6,493 4,800
Current portion of equipment loans 510 314
Current portion of finance lease liabilities 1,295 876
Current portion of contingent consideration 3,123 
Accounts payable and accrued expenses 72,772 31,370
Deferred revenue 1,815 988
Current portions due to sellers 25,414 26,554
Current portion operating lease liabilities 15,275  
Other current liabilities 34,339 2,278
Total current liabilities 161,036 67,180
Notes payable, net of current portion and debt issuance costs 915,266 456,745
Long-term portion of operating lease liabilities 122,935 
Warrants liabilities 80,144 
Equipment loans, net of current portion 1,329 873
Long term portion of operating lease liabilities 2,181 1,580
Deferred revenue, net of current portion 4,244 4,277
Due to sellers, net of current portion 479 13,976
Contingent consideration 35,300 5,172
Other liabilities 22,057 14,762
Total liabilities 1,344,971 564,565
Stockholders’ Equity / Members’ Capital    
Shares of Class A common stock 18 
Shares of Class B common stock 30 
Members’ capital  157,591
Additional paid-in capital 397,443 
Accumulated deficit (78,760) (107,832)
Notes receivable, related parties  (134)
Total Stockholders’ Equity / Members’ Capitalattributed to Class A 318,731 49,625
Non-controlling interests 479,837 
Total Stockholders’ Equity / Members’ Capital 798,568 49,625
Total Liabilities and Stockholders’ Equity / Members’ Capital $      2,143,539 $         614,190
  Twelve Months Ended
  December 31,
(in thousands) 2021 2020
Cash Flows from Operating Activities:    
Net loss $       (116,737) $         (71,064)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 49,441 18,499
Change in fair value of contingent consideration (11,680) 65
Change in fair value of embedded derivative  12,764
Change in fair value of warrant liabilities (82,914) 
Loss on extinguishment of debt 13,115 23,277
Amortization of debt issuance costs 4,887 6,716
Non-cash lease expense 664 
Write off of other liabilities  531
Equity-based compensation 27,983 528
Paid in kind interest expense  7,287
Changes in operating assets and liabilities:    
Accounts receivable, net (15,135) (30,309)
Inventory (185) (275)
Other assets (16,409) (2,760)
Prepaid expenses and other current assets (11,779) (5,152)
Accounts payable and accrued expenses 33,723 27,325
Interest accrued due to seller 1,464 1,698
Payment of in kind interest on extinguishment of debt  (7,287)
Deferred rent  1,147
Deferred revenue 693 5,265
Other liabilities (5,658) 2,510
Net cash used in operating activities (128,527) (9,235)
Cash Flows from Investing Activities:    
Purchase of property and equipment (34,354) (12,072)
Acquisitions of subsidiaries including non-compete intangibles, net of cash acquired (1,070,307) (207,625)
Payments to sellers (26,587) (53,201)
Other  4,532
Net cash used in investing activities (1,131,248) (268,366)
Cash Flows from Financing Activities:    
Contributions from member  103,016
Distributions to member  (106,143)
Business combination and PIPE financing 935,362 
Payments of long-term debt (657,917) (318,754)
Debt issuance costs (17,394) (31,111)
Proceeds from long-term debt 1,120,000 664,096
Prepayment fees on extinguishment of debt  (27,969)
Proceeds from revolving credit facility  9,700
Repayments of revolving credit facility  (9,700)
Proceeds from insurance financing arrangements 1,701 2,865
Payments of principal on insurance financing arrangements (1,701) (2,865)
Repayments of equipment loans (314) (235)
Repayments of capital lease obligations (1,227) (684)
ESPP Contributions 10,494 
Other 134 
Net cash provided by financing activities 1,389,138 282,216
Net increase (decrease) in cash, cash equivalents and restricted cash 129,363 4,615
Cash, cash equivalents and restricted cash at beginning of year 33,807 29,192
Cash, cash equivalents and restricted cash at end of period $        163,170 $          33,807
Reconciliation of Non-GAAP
Adjusted EBITDA
  Three Months Ended 
December 31, 
 Twelve Months Ended 
December 31,
(in thousands) 2021 2020 2021 2020
Net income (loss) $          503 $    (49,308) $ (116,737) $    (71,064)
Interest income  (81) (4) (320)
Interest expense 14,928 12,274 51,291 34,002
Income tax expense (benefit) 776 357 14 651
Depreciation and amortization expense 18,695 5,758 49,441 18,499
EBITDA $     34,902 $    (31,000) $   (15,995) $    (18,232)
Stock-based compensation 14,853 351 27,983 528
De novo losses (1) 16,001 4,289 40,562 8,662
Acquisition transaction costs (2) 9,006 13,212 48,303 43,333
Restructuring and other 2,370 606 7,883 2,435
Change in fair value of contingent consideration (7,528) 65 (11,680) 65
Loss on extinguishment of debt (110) 23,277 13,115 23,277
Change in fair value of embedded derivative  7,320  12,764
Change in fair value of warrant liabilities (58,349)  (82,914) 
Adjusted EBITDA $     11,146 $     18,120 27,257 $     72,832
(1) De novo losses include those costs associated with the ramp up of new facilities and that are not expected to be incurred past the first 12 months after opening. These costs collectively are higher than comparable expenses incurred once such a facility has been open and generating revenue and would not have been incurred unless a new facility was being opened.
(2) Acquisition transaction costs included  $4.0 million and $0.4 million of corporate development payroll costs for the twelve months ended December 31, 2021 and 2020, respectively, and $1.0 million and $0.1 million of corporate development payroll costs for the three months ended December 31, 2021 and 2020, respectively. Corporate development payroll costs include those expenses directly related to the additional staff needed to support our increased acquisition activity.
Key Metrics
  Three Months Ended 
December 31,
  2021 2020 % Change
Medicare Advantage 118,348 74,644 58.5%
Medicare DCE 7,651  100.0%
Medicaid 66,500 19,314 244.3%
ACA 34,506 11,749 193.7%
Total members 227,005 105,707 114.7%
Member months:      
Medicare Advantage 346,967 224,627 54.5%
Medicare DCE 23,068  100.0%
Medicaid 196,754 57,191 244.0%
ACA 90,715 32,742 100.0%
Total member months 657,504 314,560 109.0%
Per Member Per Month (“PMPM”):      
Medicare Advantage $             1,098 $                949 15.7%
Medicare DCE $             1,261 $                  — 100.0%
Medicaid $                258 $                605 (57.4)%
ACA $                  43 $                  17 152.9%
Total PMPM $                706 $                789 (10.5)%
Owned medical centers      
  Twelve Months Ended 
December 31,
  2021 2020 % Change
Medicare Advantage 118,348 74,644 58.5%
Medicare DCE 7,651  100.0%
Medicaid 66,500 19,314 244.3%
ACA 34,506 11,749 193.7%
Total members 227,005 105,707 114.7%
Member months:      
Medicare Advantage 1,167,848 708,505 64.8%
Medicare DCE 69,707  100.0%
Medicaid 518,335 193,849 167.4%
ACA 286,005 125,319 128.2%
Total member months 2,041,895 1,027,673 98.7%
Per Member Per Month (“PMPM”):      
Medicare Advantage $             1,066 $                949 12.3%
Medicare DCE $             1,276 $                  — 100.0%
Medicaid $                355 $                623 (43.0)%
ACA $                  39 $                  24 62.5%
Total PMPM $                749 $                775 (3.4)%
Owned medical centers 130 71  

SOURCE Cano Health, Inc.

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