CareMax, Inc. Reports Third Quarter 2022 Results; Raises Full Year Revenue Outlook

• Third Quarter 2022 Medicare Advantage Membership of 39,500, up 49% year-over-year
• Third Quarter 2022 GAAP Total Revenue of $157.7 million, up 51% year-over-year
• Expanded Presence with De Novo Openings in Brooklyn, New York; Queens, New York; and Plantation, Florida Since Quarter End
• Raising Full Year 2022 Revenue Guidance; Excludes Expected Impact from Steward Acquisition

CareMax, Inc. (NASDAQ:CMAX, CMAXW))) ("CareMax" or the "Company"), a leading technology-enabled provider of value-based care to seniors, today announced financial results for the third quarter ended September 30, 2022.

"Our solid third quarter results are a testament to our focus on executing our strategy, operational excellence and the hard work of our team," said Carlos de Solo, Chief Executive Officer. "Once again, member growth exceeded our expectations, as patients continue to demonstrate and validate the extent to which they value our whole person health model. As a result of this continued growth, we are pleased to increase our full-year revenue outlook."

Mr. de Solo continued, "Last week, CareMax's stockholders approved our issuance of stock as partial consideration for our transformative acquisition of Steward Health Care System's Medicare value-based care business. The transaction, which we anticipate will close promptly, will represent a major milestone in our efforts to redefine healthcare for seniors across the U.S. In the meantime, we are focused on our integration efforts, and look forward to realizing the benefits of this acquisition and leveraging our deep experience in managing at-risk populations to drive sustainable growth and enhanced value for our stakeholders."

Third Quarter 2022 Results

• Total revenue was $157.7 million, up 51% year-over-year.
• Medical Expense Ratio was 75.2%, compared to 75.4% for the third quarter of 2021.¹
• Net loss was $22.1 million, or $(0.25) per diluted share, compared to net loss of $14.5 million, or $(0.18) per diluted share for the third quarter of 2021.
• Adjusted EBITDA was $9.2 million, compared to $1.2 million for the third quarter of 2021.²
• Platform Contribution was $20.7 million, compared to $11.0 million for the third quarter of 2021.²

Recent Business Highlights

• Stockholders approved the issuance of stock as partial consideration for the acquisition of the Medicare value-based care business of Steward Health Care System on November 2, 2022.
• Expanded presence with de novo clinic openings in Brooklyn, New York; Queens, New York; and Plantation, Florida since quarter end, bringing total clinic count to 54.
• Continued to invest in our talent to support our platform infrastructure with the addition of a Chief Accounting Officer and Chief Digital Officer.

Financial Outlook for Full Year 2022; Excludes Expected Impact from Steward Acquisition^2,3

CareMax is raising the following full year 2022 financial guidance:

• Total revenue of $600 million to $620 million, up 49% to 54% year-over-year compared to $403 million for full year 2021, from prior guidance of $580 million to $600 million.

CareMax is reaffirming the following full year 2022 financial guidance:

• Year-end Medicare Advantage membership of greater than 40,000, up over 19% year-over-year.
• Adjusted EBITDA in the range of $30 million to $40 million, up 125% to 200% year-over-year, compared to $13.3 million for the prior year. For 2022, Adjusted EBITDA also excludes losses from de novo centers.
• The Company continues to expect to open 15 de novo centers in 2022, inclusive of 9 openings to-date.

¹Medical Expense Ratio equals external provider costs divided by Medicare and Medicaid risk-based revenues.

²Adjusted EBITDA and Platform Contribution are non-GAAP financial metrics. A reconciliation of non-GAAP metrics to the most directly comparable GAAP financial measures is included in this earnings release.

³Pro Forma year-over-year comparisons to 2021 reflect the business combinations of IMC Medical Group Holdings and Care Holdings as if they had occurred on January 1, 2021. A reconciliation of the pro forma financial information to GAAP financial statements is included in this earnings release.

Conference Call Details

Management will host a conference call at 8:30 am ET today to discuss the results. The conference call can be accessed by dialing (888) 330-2508 for U.S. participants, or (240) 789-2735 for international participants, and referencing conference ID 7874605. A live audio webcast as well as related presentation materials will also be available on the "Events & Presentations" section of CareMax's investor relations website at ir.caremax.com. Following the live call, a replay will be available on the Company's website.

About CareMax

CareMax is a technology-enabled care platform providing value-based care and chronic disease management to seniors. CareMax operates centers that offer a comprehensive suite of healthcare and social services, and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Learn more at www.caremax.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth, strategy and financial performance, the closing of the Steward transaction and the benefits thereof, and the filing of the Company's periodic reports. Words such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," or "will," or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important risks and uncertainties that could cause the Company's actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, whether the Company's pending acquisition of Steward Value-Based Care will close and the risks associated therewith, the impact of COVID-19 or any variant thereof on the Company's business and results of operation; the availability of sites for de novo centers and the costs of opening such de novo centers; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to the Company's services; the Company's ability to continue its growth, including in new markets; changes in laws and regulations applicable to the Company's business, in particular with respect to Medicare Advantage and Medicaid; the Company's ability to maintain its relationships with health plans and other key payers; any delay, modification or cancellation of government contracts; the Company's future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs and the Company's ability to comply with the covenants under its credit agreement; the Company's ability to recruit and retain qualified team members and independent physicians; and risks related to future acquisitions. For a detailed discussion of the risk factors that could affect the Company's actual results, please refer to the risk factors identified in the Company's reports filed with the SEC. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update or revise this information unless required by law, and forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release.

Use of Non-GAAP Financial Information

Certain financial information and data contained in this press release is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by the Company with the SEC. Some of the financial information and data contained in this press release, such as Adjusted EBITDA and Platform Contribution and margin thereof have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). These non-GAAP measures of financial results are not GAAP measures of our financial results or liquidity and should not be considered as an alternative to net income (loss) as a measure of financial results, cash flows from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company's management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes.

The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. For this reason, these non-GAAP measures may not be comparable to other Companies' similarly labeled non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review the Company's audited financial statements, which have been filed by the Company with the SEC.

A reconciliation for Adjusted EBITDA and Platform Contribution to the most directly comparable GAAP financial measures is included below. A reconciliation of projected 2022 Adjusted EBITDA to the most directly comparable GAAP financial measure is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate this. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company's future GAAP results.

Use of Pro Forma Financial Information and Pro Forma Non-GAAP Financial Information

Certain of the information presented in the Non-GAAP Financial Summary and in the reconciliations to non-GAAP financial measures includes pro forma information derived from the unaudited pro forma statements of operations which are provided for informational purposes only and are not necessarily indicative of the operating results or financial position that would have occurred if the acquisitions of IMC and Care Holdings had occurred in the stated historical periods, nor are they indicative of the future results or financial position of the combined company. The unaudited pro forma statements of operations do not give effect to the potential impact, of any anticipated synergies, operating efficiencies or cost savings that may result from the acquisitions of IMC and Care Holdings, any integration costs or tax deductibility of transaction costs.

Additionally, Adjusted EBITDA presented on a pro forma basis gives effect to the acquisitions of IMC and Care Holdings as if they had occurred in historical periods. Such non-GAAP financial measures do not necessarily reflect what the Company's Adjusted EBITDA would have been had the acquisitions occurred on the dates indicated.

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