Cano Health Highlights Long-Term Value Creation Strategy in New Investor Presentation
Cano Health, Inc. ("Cano Health" or the "Company"), a leading value-based primary care provider and population health company, today announced that it has published an investor presentation to its investor relations website in connection with its upcoming Annual Stockholders' Meeting (the "Annual Meeting"), scheduled for
Highlights of the presentation include:
Cano Health's Strong Foundation and Opportunity for Long-Term Value Creation
Cano Health is transforming healthcare by delivering better outcomes at lower cost for patients, who are predominantly from underserved populations. As the Company continues to advance this mission, it expects to capture a significant share of a
- Established scale with a growing membership base that currently stands at approximately 390,000 across 9 states and
Puerto Rico ; - Leading clinical outcomes, with 25% fewer hospital admissions1, 69% fewer ER visits2, and a 60% lower mortality rate3 relative to 2021 Medicare fee-for-service benchmarks4; and
- 5 consecutive quarters of positive Adjusted EBITDA.
Cano Health's Clear Path to Sustainable Profitability
Cano Health believes that it is meaningfully undervalued relative to peers based on its Medicare membership base, recent earnings performance of core operations, and cash burn per net new member5. The Company's Board and management are taking immediate and decisive action to realize the full potential of the platform and close the gap between intrinsic value and current market value.
This plan consists of sharpening the Company's focus on Medicare Advantage including conducting a process to divest non-core assets; unlocking embedded medical center profitability; streamlining operations; strengthening cash flows; and optimizing Cano Health's management team and governance. Cano Health is confident in its ability to achieve this plan for the following reasons:
- The Company continues to benefit from a growing and highly profitable
Florida market with a path to unlock tremendous embedded value in high-growth, non-Florida markets. - A vintage analysis of Cano Health's 60 de novo medical centers demonstrates a significant inflection point in average member growth and profitability between years one and three of those centers' openings, as well as average Adjusted EBITDA6 profitability of approximately
$4 million by Year 4. We believe that the maturation of de novo and existing medical centers presents a significant Adjusted EBITDA opportunity over time. - The appointment of
Mark Kent as Chief Strategy Officer has already enabled the Company to consolidate functions and increase internal cooperation amongst essential areas. Further, the Company recently appointedFrederick Green as its Interim Chief Legal Officer to work with the Board and the Company's management team to implement and maintain best-in-class corporate governance practices, support execution of the stockholder value creation strategy, and identify a permanent successor for his position.
Cano Health's Highly Qualified and Independent Board
The Company's current Board has the right mix of skills and experience to oversee the Company's action plan, strengthen governance practices, and create value for all stockholders:
- The two independent directors standing for re-election, Dr.
Alan Muney andKim Rivera , bring to the Board significant healthcare experience and demonstrated track records of driving stockholder value. For example:- While
Dr. Muney served as Chief Medical Officer at Oxford Health Plans and Cigna, both companies outperformed the S&P 500 by 224% and 189%, respectively.7 - During
Ms. Rivera's tenure as Chief Legal Officer at DaVita and HP, both companies outperformed the S&P 500 by 53% and 76%, respectively, and Thomson Reuters has outperformed the S&P 500 by 57%8 during her time on the Board of Directors.
- While
- Over the past several months, the Board has implemented necessary and ongoing governance improvements, including the recent separation of the Chairman and CEO positions as well as a review and enhancement of certain company policies and procedures.
The Former Directors' Self-Interested, Disruptive, and Misleading Campaign
Rather than work constructively with the Board to realize the full potential of the business, the former directors resigned to launch a highly disruptive campaign intended to further their own short-term interests. They have expressed no plan for long-term value creation and their interests are not aligned with those of all stockholders:
- The former directors have publicly stated their singular objective is to dismantle Cano Health's platform and sell it for parts—it is difficult to see how public agitation to sell an attractively positioned company while its stock price is undervalued would be in the best interests of all stockholders.
- Throughout their campaign, they have intentionally distorted the facts, spread false and misleading claims, and selectively criticized past decisions that they themselves architected, advocated, and approved—including authoring public company by-laws they now claim not to be stockholder friendly, and championing multiple acquisitions within weeks of most of the current directors first joining the Board.
Cano Health is at a pivotal moment in its trajectory. Now is not the time to disrupt the Board and management's value creation plan.
Cano Health urges stockholders to vote on the WHITE proxy card "FOR" re-election of the Company's two highly qualified, independent directors and the proposed reverse stock split.
Your vote is important,
please vote your shares today by telephone or internet.
If you have any questions or need assistance with
voting your WHITE proxy card please call
proxy@mackenziepartners.com
(212) 929-5500 Or TOLL-FREE (800) 322-2885
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