Catasys (CATS) Tops Q4 EPS by 17c, Revenues Beat; Offers FY19 Revenue Guidance Above Consensus

Catasys (NASDAQ: CATS) reported Q4 EPS of ($0.09), $0.17 better than the analyst estimate of ($0.26). Revenue for the quarter came in at $5.6 million versus the consensus estimate of $4.89 million.

• Q4 2018 Record Revenue of $5.6 Million, up 85.3% Year over Year and Up 28.7% from Q3 2018
• YE 2018 Record Revenue of $15.2 Million, Up 96.7% from YE 2017
• Outreach Pool of Eligible Members Increased to approximately 75,000 Members at March 1, 2019 (up 97% from 38,000 at Q3 2018) as a Result of Significant Expansion within Existing Plans
• Reiterates 2019 GAAP Revenue Guidance of $35 Million
• Company to Host Conference Call at 4:30 pm ET on March 14, 2019

Mr. Terren Peizer, Chairman and CEO, stated, “Catasys has had a strong start to 2019, as continued expansions with existing health plan partners significantly accelerated our outreach pool of eligible members to record levels. The signing of contracts with new health plans, launches in new states, and program expansions led to solid enrollment growth for the Company in 2018. We are reiterating our previous guidance of $35 million of revenues for 2019, which we believe is a conservative estimation of this enrollment trend given the sizable increase in our outreach pool.”

Catasys’ outreach pool of eligible members continued its rapid ramp, increasing to current levels at March 1, 2019 of 75,000 due to significant expansion within existing contracts, an increase from approximately 41,000 at December 31, 2018 and up from 38,000 at the end of the third quarter of 2018. New customer launches continue to take approximately 12 months to ramp up to an approximate 20% yearly enrollment rate. One year after launch, the Company generally enrolls more than 20% of its outreach pool over a year. Catasys generally receives approximately $6,500 net per enrolled member.

Mr. Peizer continued, “The Company continues to re-invest in our infrastructure to ensure that we are able to properly scale operations in anticipation of pending enrollment growth. We are technologically preparing to handle additional volume, and will be hiring and training additional care coaches to ensure that members of the OnTrak program continue to receive the best care while still optimizing our own productivity. Finally, we intend to devote continued time and resources to new products that utilize our existing platform and data driven analytics to widen Catasys’ potential outreach population even further. Given these positive indicators and our ability to capitalize on growth opportunities, we remain confident that our provided guidance is a conservative floor for this year.”

GUIDANCE:

Catasys sees FY2019 revenue of $35 million, versus the consensus of $34.63 million.

For earnings history and earnings-related data on Catasys (CATS) click here.

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