Agiliti (AGTI): Q3 2021 Financial Results

By Amit Chowdhry ● Nov 10, 2021
  • Agiliti Inc. (NYSE: AGTI) recently announced its Q3 2021 financial results. These are the details.

Agiliti Inc. (NYSE: AGTI) – a nationwide provider of healthcare technology management and service solutions to the United States healthcare industry – recently announced its Q3 2021 financial results and full-year guidance for 2021. These are the highlights:

— Revenue growth of 35 percent year-over-year to $262 million

— Net income of $9.7 million, up $19.9 million from the prior-year period, and diluted income per share of $0.07, up $0.17 per share from the prior-year period

— Adjusted EBITDA growth of 46 percent year-over-year to $82 million, and adjusted diluted earnings per share of $0.23, up $0.10 per share from the prior-year period

— Total debt of $1,044.4 million; Net debt of $920.7 million; Net Leverage ratio further reduced to 2.9x

— Raised full-year 2021 guidance with expected revenue of $1,010-1,020 million and Adjusted EBITDA of $300-310 million

Third Quarter and Year-to-Date 2021 Financial Results

— Total revenue for the three months ended September 30, 2021, was $262.4 million, representing a 34.8 percent increase from total revenue of $194.7 million for the same period of 2020. And total revenue for the nine months ended September 30, 2021, was $748.2 million, representing a 33.8 percent increase from total revenue of $559.1 million for the same period of 2020.

— Net income for the three months ended September 30, 2021, was $9.7 million compared to a net loss of $10.2 million for the same period of 2020. And net income for the nine months ended September 30, 2021, was $14.0 million, representing a $36.0 million increase compared to a net loss of $22.0 million for the same period of 2020.

— Adjusted EBITDA for the three months ended September 30, 2021, was $81.9 million, a 46.2 percent increase from Adjusted EBITDA of $56.1 million for the same period of 2020. And adjusted EBITDA for the nine months ended September 30, 2021, was $245.8 million, a 51.6 percent increase from Adjusted EBITDA of $162.2 million for same period of 2020.

Subsequent Events

On October 1, 2021, Agiliti completed its acquisition of Sizewise Rentals, a manufacturer and distributor of specialty hospital beds, surfaces, and patient handling equipment. The deal was financed with a combination of cash on hand as well as an incremental $150 million Term Loan B (fungible with the existing 0% LIBOR floor tranche). And the combination enables Agiliti to broaden its portfolio and clinical expertise within the growing specialty equipment services market, expand its total addressable market opportunity and target meaningful growth and cost reduction synergies.

2021 Financial Outlook

For the full year 2021, the company now expects revenue to be in the range of $1,010 million to $1,020 million, an increase from the prior range of $965 million to $980 million, representing growth of 31 to 32 percent. And the company now expects Adjusted EBITDA to be in the range of $300 million to $310 million, an increase from the prior range of $280 million to $290 million, representing growth of 28 to 31 percent. Finally, the company expects capital expenditures for 2021 to be in the range of $67 million to $72 million, an increase from the prior range of $65 million to $70 million. Capex as a percentage of revenue is expected to remain in the range of 6 to 7 percent.

KEY QUOTE:

“Our strong results from the quarter and our increased financial guidance for the year reflect the powerful fundamentals of our business. Agiliti’s nationwide maintenance and logistics infrastructure places us within the local community of the healthcare providers we serve each day. This same operations network is now supporting our recent acquisitions, with a unique and differentiated value proposition for our customers, delivered though our local service teams.”

— Tom Leonard, Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.