InnovAge expands share repurchase program by $2.5 million

DENVER - InnovAge Holding Corp. (NASDAQ: INNV), a company specializing in care management for high-cost, frail seniors, announced an expansion of its share repurchase program today. The board of directors has approved an additional $2.5 million for the repurchase of its common stock, on top of the previously authorized $5.0 million initiated in June 2024.

Since the original authorization, InnovAge has repurchased a total of 837,372 shares of common stock, amounting to an aggregate market value of $5.0 million. The company's repurchase activities may continue on the open market, through privately negotiated transactions, or by other legal means, potentially including Rule 10b5-1 trading plans.

The timing and volume of repurchases are subject to a variety of factors such as stock price, trading volume, corporate and regulatory requirements, and overall market conditions. InnovAge has stated that there is no obligation to repurchase any specific number of shares, and the program may be halted or terminated at any time without prior notice.

InnovAge's mission is to allow seniors to live independently at home for as long as possible, providing a patient-centered care model intended to enhance the quality of care and reduce unnecessary high-cost care settings. As of June 30, 2024, the company served around 7,020 participants through 20 centers across six states.

The expansion of the share repurchase program reflects a possible strategic move to enhance shareholder value, although the company cautions that such forward-looking statements involve risks and uncertainties. Factors that could influence actual results include the company's growth strategy viability, regulatory inspections, audits, and the broader macroeconomic environment.

This announcement is based on a press release statement and does not necessarily reflect future performance. InnovAge's future results may differ from current expectations due to various factors, including those outside of the company's control.

In other recent news, InnovAge has reported an upward trend in its financial results for the Fourth Quarter and Fiscal Year 2024, with a 3.3% quarterly revenue increase to $199 million and an 11% year-over-year increase to $764 million. The company has also forecasted a rise in participants and improved profitability for fiscal year 2025, despite acknowledging operational challenges. InnovAge served approximately 7,020 participants as of June 2024, with projections for the upcoming fiscal year suggesting a participant census of 7,300 to 7,750 and revenue between $815 million and $865 million. The company's adjusted EBITDA for fiscal year 2025 is expected to be between $24 million and $31 million. InnovAge reported a net loss of $23.2 million for fiscal 2024, an improvement from the previous year's loss of $43.6 million. Despite facing challenges with enrollment processing times in certain states and working through regulatory audits in California, the company remains confident in its business model and future prospects. These developments are part of the company's recent activities and outlook.

InvestingPro Insights

In light of InnovAge Holding Corp.'s (NASDAQ: INNV) announcement regarding its expanded share repurchase program, certain metrics and analyst insights from InvestingPro provide a deeper understanding of the company's financial health and market performance. Despite not expecting to be profitable this year, InnovAge operates with a moderate level of debt, which can be a balancing factor in their financial strategy. The company has shown a strong return over the last three months, with a 22.76% price total return, and an even more impressive six-month price total return of 38.68%.

InvestingPro data indicates a market capitalization of $796.09 million, which reflects the company's current valuation in the market. Although InnovAge has a negative P/E ratio of -37.71, indicating that it is not currently generating profits, the gross profit margin for the last twelve months stands at a healthy 70.05%. This suggests that while the company is facing challenges to profitability, it maintains a strong gross profit on the revenue generated.

With a revenue growth of 11.01% over the last twelve months, InnovAge is demonstrating its capacity to increase its earnings, which may be a positive signal for investors considering the company's growth potential. These financial metrics, alongside the InvestingPro Tips, can be valuable for investors looking to make informed decisions. For more insights, InvestingPro offers additional tips and detailed analysis for InnovAge, which can be found at InvestingPro.

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