Arizona Tribune - Cardiff Lexington Announces Third Quarter 2024 Financial Results

Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "Operationally, our business performed well during the quarter. We opened our 12^th Nova Ortho and Spine location in Orlando, Florida, establishing Nova Ortho and Spine in a major metropolitan area with greater population density and higher traffic, and saw an increase in booked procedures which generally bodes well for future revenues. That said, the severe weather across Florida during the quarter has delayed many procedures. Also, our GAAP revenue was negatively impacted in the quarter due to a change in estimate related to our claim settlement realization rate that better aligns third quarter revenue with 2024 annualized rates. Adjusted revenue for the quarter, excluding this one-time change in estimate, was $3.0 million. It is our expectation that revenue will return to more historical levels going forward and grow as we strengthen our working capital to support the long-term growth of our business."

"Demand is strong, and we continue to identify strategic locations to establish new Nova Ortho and Spine offices and expand our network of healthcare services. Our shareholders' equity has grown 410% since the beginning of the year, and with our visibility today, we believe that we are on track to deliver enhanced long-term performance supported by a robust network of locations and a strong reputation as a high-quality medical care provider," Mr. Cunningham concluded.

Third Quarter 2024 Financial Results

• Total revenue was $1,355,641. Revenue in the third quarter included a one-time non-cash adjustment of $1,650,474 to better align third quarter revenue with 2024 annualized claim settlement realization rates. Non-GAAP adjusted revenue, excluding the one-time non-cash adjustment, was $3,006,115

• Cost of sales in the quarter increased to $1,000,601 primarily related to laboratory fees

• Selling, general, and administrative expenses of $936,835 primarily related to increased salaries and wages as the Company continues to invest in its growth

• Loss from continuing operations was $585,160

• Non-GAAP adjusted EBITDA was $1,061,912

Nine Months 2024 Financial Results

• Total revenue was $5,149,416. Revenue for the nine months ended September 30, 2024, included a one-time non-cash adjustment of $1,650,474 to better align third quarter 2024 revenue with 2024 annualized claim settlement realization rates. Non-GAAP adjusted revenue, excluding this one-time non-cash adjustment, was $6,799,890

• Cost of sales for the nine-month period was $2,741,765

• Selling, general, and administrative expenses of $2,622,981 primarily related to increased salaries and wages as the Company continues to invest in its growth

• Loss from continuing operations was $525,651. Included in operating expenses for the nine months ended September 30, 2024 were Non-GAAP increased expenses associated with the anticipated growth of the business of $596,225

• Non-GAAP Adjusted EBITDA was $1,507,928

Balance Sheet Highlights (September 30, 2024, compared to December 31, 2023)

• 125% increase in cash to $1,949,600

• 13% increase in total assets to $23,514,762

• 410% increase in shareholders' equity to $3,729,120

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About Cardiff Lexington Corporation:

Cardiff Lexington Corporation is a unique targeted healthcare holding company focused on locating, acquiring, and building middle market, niche companies, primarily in Orthopedics, Spine Care, and Pain Management. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance.

A substantial majority of the Company's revenue is derived from Nova Ortho and Spine, LLC, which operates a group of regional primary specialty and ancillary care facilities throughout Florida that provide traumatic injury victims with a full range of diagnostic and surgical services, primary care evaluations, interventional pain management, and specialty consultation services.

For more information on Cardiff Lexington Corporation, you may access the company's website at https://cardifflexington.com/

FORWARD LOOKING STATEMENT: This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's business, the Company's liquidity position, the Company's ability to obtain new business, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.

Use of Non-GAAP Financial Measures

Cardiff Lexington Corporation prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to GAAP disclosures, this document contains financial information and measures considered to be "non-GAAP". These non-GAAP measures can be used in order to gain a more complete and accurate understanding of the Company's financial condition and results. Non-GAAP financial measures should be considered in conjunction with, and not as a substitute to GAAP financial measures.

Cardiff Lexington Investor Relations
[email protected]
(800) 628-2100 ext. 705

or

IMS Investor Relations
[email protected]

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(UNAUDITED)

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
(UNAUDITED)

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(UNAUDITED)

The following table reconciles Net (loss) income before discontinued operations (a GAAP measure) to EBITDA (a non-GAAP measure)

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF REVENUE FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024
(UNAUDITED)

Contact Information

Walter Frank
Investor Relations
[email protected]
2039729200

SOURCE: Cardiff Lexington Corporation

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