2022-08-11 | TSX:DR | Press release

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TORONTO, August 11, 2022 /CNW/ – Medical Facilities Corporation (“Medical Facilities”, “MFC” or the “Company”) (TSX: DR), today announced its financial results for the three and six months ended June 30, 2022. All amounts are in US dollars unless otherwise specified.

Q2 2022 Highlights

(Compared to Q2 2021)

  • Surgical case volumes increased by 5.6%;
  • Facility Services revenue increased 4.7% to $102.2 million;
  • Total income and other income increased by 4.5% for $102.5 million;
  • Operating income fell by 2.8% to $16.5 million while consolidated operating expenses increased 6.0%, largely due to the impact of volume and case mix growth on drugs and supplies, as well as higher salaries and treatments;
  • EBITDA1 has been $21.5 million, a decrease of 9.1%; and,
  • At the end of the quarter, MFC had repurchased nearly 1.3 million of its common shares since the start of its normal course issuer bid (“NCIB”) in December 2021.

“Our surgical case volumes continued to improve during the quarter, particularly in the month of June when volumes exceeded June 2021 volumes of 8.1% and June 2019which was before the pandemic, by 8.9%,” said Robert O. Horrar, President and CEO of Medical Facilities. “However, like others in our industry, our profitability has been impacted by higher labor costs and other operating expenses.”

“Regardless of future uncertainty around COVID-19 and recent cost pressures, we continue to take a balanced approach to business. Our cash flow and balance sheet remain strong. We are paying a higher dividend per share. higher than the same period last year; we continue to repurchase shares under our NCIB; and our business is well aligned with two of the key growth drivers in our industry: the aging population and the growing outpatient procedures.

Financial results

Financial results

For the three months ended

For the six months ended

June 30th

June 30th

(in thousands of U.S. dollars, except

amounts per share and where

otherwise noted)

2022

% change

2021

2022

% change

2021

Facility services revenue

102 162

4.7%

97,572

202,950

5.9%

191,568

Government stimulus receipts

363

(36.5%)

572

2,173

(53.8%)

4,705

Total revenue and other revenue

102,525

4.5%

98 144

205 123

4.5%

196 273

Consolidated operating expenses

86,064

6.0%

81 202

173,982

8.1%

160,972

Revenue from operations

16,461

(2.8%)

16,942

31 141

(11.8%)

35,301

Financial charges (net interest

costs)

1,352

(16.3%)

1,615

2,753

(12.8%)

3,157

Financial costs (changes in values

derivatives and

foreign currency gain/loss)

(12,690)

6,509.4%

(192)

(186)

(104.2%)

4,457

Impairment on loan

admissible

3,990

100.0%

Share of loss of equity in associates

272

172.0%

100

266

87.3%

142

income tax expense

5,284

48.3%

3,563

3,190

(40.7%)

5,382

Net revenue2

22,243

87.6%

11,856

21,128

(4.7%)

22,163

Earnings per share

Basic

$0.54

217.6%

$0.17

$0.27

(3.6%)

$0.28

Diluted

$0.19

26.7%

$0.15

$0.25

(10.7%)

$0.28

Reconciliation of net income with

EBITDA

For the three months ended

June 30th

For the six months ended

June 30th

(in thousands of U.S. dollars, except

unless otherwise stated)

2022

% change

2021

2022

% change

2021

Net revenue

22,243

87.6%

11,856

21,128

(4.7%)

22,163

income tax expense

5,284

48.3%

3,563

3,190

(40.7%)

5,382

Share of loss of equity in associates

272

172.0%

100

266

87.3%

142

Finance charges (income)

(11,338)

(896.8%)

1,423

6,557

(13.9%)

7,614

Depreciation and amortization

5,082

(24.8%)

6,756

10,219

(24.5%)

13,529

EBITDA

21,543

(9.1%)

23,698

41,360

(15.3%)

48,830

Distributable cash flow

For the three months ended

For the six months ended

June 30th

June 30th

(in thousands of dollars, except by

the amounts of the shares and, where applicable,

Noted)

2022

% change

2021

2022

% change

2021

Cash available for distribution1 (C$)

8,398

12.3%

7,475

13,889

(9.6%)

15,369

Distributions (in Canadian dollars)

2,401

10.2%

2,178

4,849

11.3%

4,355

Distributions per common share (CAD)

0.08

15.0%

0.07

0.16

15.0%

0.14

The payout ratio1

28.8%

(1.4%)

29.2%

35.0%

23.7%

28.3%


During the quarter, MFC paid a quarterly cash dividend of CA$0.0805 per ordinary share (or CA$0.322 per share on an annualized basis), which represented an annualized return of 3.68% on the June 30, 2022closing price of CA$8.74 per ordinary share.

On June 30, 2022MFC had a consolidated net working capital of $62.4 millioncompared to $67.4 million on December 31, 2021.

Financial statements and management report of MFC, for the three and six month periods ended June 30, 2022will be filed on SEDAR at www.sedar.com on Thursday, August 11, 2022 and will also be available on Medical Facilities’ website at www.medicalfacilitiescorp.ca.

Notice of conference call

MFC management will hold a conference call today, August 11, 2022, at 8:30 a.m. ET to discuss its second-quarter financial results. All interested parties may join the conference call by dialing 647-484-0475 or 1-888-220-8451 approximately 15 minutes prior to the call to secure a line.

A live audio webcast of the call will be available at https://bit.ly/MFC2022Q2. Please tune in at least 15 minutes before the conference call to ensure enough time for any software downloads that may be required to join the webcast. The webcast will be archived on the MFC website after the date of the call.

About medical facilities

Medical Facilities, in partnership with physicians, has a diverse portfolio of highly rated, high quality surgical facilities in United States. MFC’s ownership includes a controlling interest in four specialty surgical hospitals located in Arkansas, Oklahomaand South Dakotaand an Ambulatory Surgery Center (“ASC”) located at California. Additionally, through a partnership with NueHealth LLC, Medical Facilities owns a controlling interest in five ambulatory surgery centers located in Michigan, Missouri, Nebraska, Ohioand Pennsylvania. MFC also has non-controlling interests in a specialty surgical hospital in Indiana and an ASC in Missouri. Specialty surgical hospitals perform surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their income from fees charged for the use of their facilities. ASCs specialize in outpatient surgery, with stays of less than 24 hours. For more information, please visit www.medicalfacilitiescorp.ca.

Caution Regarding Forward-Looking Statements

Statements made in this press release, other than those regarding historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Certain forward-looking statements may be identified by words such as “may”, “will”, “anticipate”, “estimate”, “expect”, “intend” or “continue” or their negative form or similar variants. Certain important factors or assumptions are applied to make forward-looking statements and actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to vary include those identified in the medical facilities’ filings with Canadian securities regulators, such as legislative or regulatory developments, increased competition, changes in technology and market conditions. general economics. All forward-looking statements presented herein should be read in conjunction with these materials. Medical Facilities does not undertake to update any forward-looking statements; these statements speak only as of the date on which they were made.

1EBITDA, cash available for distribution and payout ratio are non-IFRS financial measures. Although Medical Facilities believes these measures to be useful in evaluating and evaluating its performance, they do not have any standardized meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other other issuers and should not be considered alternatives to comparable measures determined in accordance with IFRS. For additional information on these non-IFRS financial measures, including a reconciliation of each of these non-IFRS financial measures to the most directly comparable measure calculated in accordance with IFRS, please see the most recently filed MD&A. by Medical Facilities, available on SEDAR at www.sedar.com.

2 Net income is attributable to owners of the Company and non-controlling shareholders.

SOURCE Medical Facilities Society

Quote View original content: http://www.newswire.ca/en/releases/archive/August2022/11/c6974.html

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