Here’s A Quick Way To get the best: Catasys, Inc. (NASDAQ: CATS)

On 22 Jan 2020, Catasys, Inc. (NASDAQ: CATS) changed 0.82% to recent value of $17.15. The stock transacted 56041 shares during most recent day however it has an average volume of 98.67K shares. It spotted trading -17.67% off 52-week high price. On the other end, the stock has been noted 80.53% away from the low price over the last 52-weeks.

Catasys, Inc. (CATS) recently stated its financial results for the third quarter ended September 30, 2019. The Company provides big data-based analytics and predictive identification and engagement capabilities to health plans and their members through its OnTrakTM solution on the Catasys PRETM (Predict, Recommend, Engage) platform.

2019 Third Quarter and Recent Operating Highlights

Catasys’ outreach pool of eligible members continued its rapid ramp, increasing to about 140,000 at the end of the third quarter of 2019Because of important expansion within existing contracts, a raise from about 112,000 at June 30, 2019, and up from 38,000 at the end of the third quarter of 2018. Catasys is presently outreaching to 113,000 eligible members and anticipates outreaching to the full pool in January 2020 when Medicare regulations allowing for telehealth engagement go into effect. While the Company has historically discussed a 20% enrollment rate at scale, some populations enroll at a higher rate and others at a lower rate depending on consumer product and disease mix. As Catasys dramatically grows its engagement team, the time to optimal enrollment efficiency also increases. Net new enrolled members, defined as total new enrollments less graduated and disenrolled members, in the third quarter of 2019 increased 366% to 1,473 from 316 in the prior-year period and 78% from 828 in the second quarter of 2019.

In September 2019, the Company reported a debt financing commitment of up to $45M from Goldman Sachs to support Catasys’ accelerating growth and technology and product investment.

2019 Third Quarter Financial Review


Revenue increased 102% to $8.8M for the third quarter of 2019, from $4.4M during the same period in 2018, as a result of the net increase in number of members enrolled in the Company’s OnTrak solution during the third quarter of 2019 contrast with the same period in 2018.

Gross Margin

Gross margin was 30.8% for the third quarter, contrast to 25.9% in the prior-year period and 43.2% in the second quarter of 2019. The sequential decrease from the previous quarter was a result of the Company’s continued ramp-up in hiring and training the necessary personnel to support the rapid and important growth in enrolled members predictable in the coming months.

Cost of Revenue consists primarily of salaries related to Catasys’ care coaches, outreach specialists, community care coordinators, healthcare provider claims payments to its network of physicians and psychologists, and fees charged by third party administrators for processing these claims.

The costs for such staff are included in Cost of Revenue during training and ramp-up periods. Margins will be influenced by the hiring of staff in preparation for anticipated future consumer contracts and corresponding increases in members eligible for OnTrak.

Operating Expenses

Operating expenses in the third quarter of 2019 were $8.3M, contrast to $5.2M in the prior-year period. This increase was mainly Because of higher expenses related to investments in new technology, new product innovation, servicing contracts and investments in key personnel to support future growth contrast to the prior-year period.

Net Income (Loss)

For the third quarter of 2019, net loss was $8.6M, or $0.52 per diluted share, contrast to a net loss of $4.4M, or $0.27 per diluted share, in the prior-year period. Adjusting for one-time debt termination costs and related fees of $1.1M and write-off of debt issuance costs of $1.5M, net loss would be $6.0M, or $0.36 per diluted share.

CATS has a gross margin of 44.20% and an operating margin of -49.30% while its profit margin remained -63.60% for the last 12 months. Its earnings per share (EPS) expected to touch remained 10.00% for this year while earning per share for the next 5-years is expected to reach at 30.00%. The company has 15.85M of outstanding shares and 6.31M shares were floated in the market. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 6.27% from the mean of 20 days, 7.16% from mean of 50 days SMA and performed 5.23% from mean of 200 days price. Company’s performance for the week was 3.31%, 4.70% for month and YTD performance remained 5.15%.

Jasmine Gerber

Jasmine Gerber – Market Movers I am known as Jasmine Gerber, I am a writer and an industrialist by profession. My age is 32 years. My aim is to gather the attention of the targeted audience without being boring and unexciting. I like to utilize the free time in writing my views and thoughts for my book lovers or readers. My most preferred articles are usually about technology and business; however, I have written various topics in my articles. I do not have a specific genre. I get very creative when I have to express myself, I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.

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