Cano Health Inc. (CANO) stock prices were down 1.15% shortly after market trading commenced on August 31st 2021. This brought the price per share down to USD$12.02 early on in the trading day.
CANO Stock’s Revenue and Income
The second quarter of fiscal 2021 saw CANO stock report total revenues in the amount of USD$393.2 million. This is up from the USD$171.2 million reported for the second quarter of 2020. The year over year increase was largely attributable to acquisitions and membership growth. Net income for the 2021 quarter came out to USD$4.9 million, up from the USD$11.0 million net loss reported for the second quarter of 2020. Adjusted EBITDA for Q2 2021 came out to USD$24.8 million in the second quarter of fiscal 2021, representing a 53% increase from the USD$16.2 million reported in Q2 2020.
Covid-19 Regaining Traction
With the United States having entered into a fourth wave of the Covid-19 pandemic, Florida is experiencing a record number of new Covid-19 cases. The company observed a seven-day daily average of 14.3 cases in Cano Health members as of August 9th, 2021. This is compared to a seven day daily average of 24.0 cases at the pandemic peak in January 2021. August 2021 has seen 7.5 Covid-19 hospital admissions per 1,000 as compared to Cano Health’s pandemic peak of 21.2 in July 2020. Covid-19 mortality among Cano Health members remains at least 50% lower than the senior population in Florida.
Medical Claims Expense Ratio
Q2 2021 reported medical claims expense ratio in the amount of 77%, up from the 73% reported for the prior quarter. This quarter over quarter difference was largely driven by the inclusion of DCE members who were expected to have higher medical costs. The difference was also supported by higher elective procedure utilization and costs related to Covid-19.
CANO Stock’s Liquidity Position
CANO stock reported USD$319 million in cash, cash equivalents, and restricted cash as of June 30th 2021. The company concurrently reported having USD$557 million in debt. July 2nd 2021 saw the company borrow an additional USD$250 million through an unsecured loan in connection with the purchase of DMC.
Future Outlook for CANO Stock
The company reported a promising quarter, consolidated by the strength of its financial reports from earlier in August 2021. CANO stock is poised to capitalize on the opportunities presented by the persistent Covid-19 pandemic. Investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value.
