Assure Holdings Corp.

For Q2 2023, Assure reported gross revenue of $4 million and net revenue of $1.5 million. Net loss was $5.3 million and adjusted EBITDA was a loss of $4.9 million. Managed case volume was 4,900, down sequentially from 5,200 in Q1 2023 and lower year over year, while cost of revenues fell to $3.4 million from $4 million a year ago and operating expenses declined to $3.6 million from $4.1 million. Cash collections were approximately $5 million, and days to collect increased slightly to 48 from 46 in Q1. Looking ahead, management expects further expense reduction, nearly $2 million of additional cost cutting, higher volumes and margins in Q3 and Q4 from a greater mix of commercial cases, and approximately $3.2 million of IRS cash refunds from ERC claims, subject to timing.

John Farlinger framed the quarter as a period of continued industry-wide reimbursement pressure, noting average reimbursement has fallen nearly 67% over three years, from nearly $6,000 at the end of 2020 to just above $2,000 per procedure by mid-2023. He emphasized that Assure is trying to run leaner, cut another nearly $2 million of costs, and use its scale and data-driven collections capability to position itself as a consolidator in a fragmented industry. His tone was cautious but constructive, with optimism tied to better second-half mix, M&A, and possible non-operating cash inflows.

John Price said the company’s managed case volume was 4,900 in Q2, down from 5,200 in Q1, mainly because of exiting unprofitable markets. He highlighted that gross revenue was $4 million, net revenue was $1.5 million, net loss was $5.3 million, and adjusted EBITDA loss was $4.9 million. He also noted approximately $5 million in cash collections, days to collect of 48 versus 46 in Q1, bad debt of about $2.5 million, cost of revenues of $3.4 million versus $4 million last year, and operating expenses of $3.6 million versus $4.1 million last year; year-to-date operating expenses were down nearly 20%. He said the company expects another decline in overall expenses and plans to fully exit remaining MSAs by year-end.

There was no live analyst Q&A in the transcript, so the main investor concerns surfaced in management’s prepared remarks. The biggest issues discussed were worsening reimbursement dynamics, including the halted federal IDR process and a recent reset lower in Texas benchmarks, which management said could affect future financials in that market. Management also fielded the broader question of how it will offset these pressures by pointing to cost cuts, higher commercial-case mix in the second half, acquisitions, and possible recovery from litigation and ERC filings.