TORONTO, March 10, 2022 /CNW/ - Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the fourth quarter and year ended December 31, 2021. MFC also announces its intention to amend its current normal course issuer bid ("NCIB") to increase the authorized purchase limit to 10% of its common shares. All currency amounts are expressed in U.S. dollars unless indicated otherwise.

Q4 2021 Summary
(For continuing operations1 compared to Q4 2020)

  • Facility service revenue increased 3.3% to $110.7 million;
  • Total revenue and other income, including government stimulus income of $5.7 million, increased 6.3% to $116.4 million;
  • Income from operations increased 18.1% to $25.5 million;
  • EBITDA2 increased 12.4% to $32.0 million; and,
  • Completed the expansion project at Arkansas Surgical Hospital, adding two operating rooms and three new recovery beds in its post-anesthesia care unit.

Year 2021 Summary
(For continuing operations compared to 2020 year-end results)

  • Facility service revenue increased 9.6% to $398.6 million;
  • Total revenue and other income, including government stimulus income of $13.1 million, increased 5.6 % to $411.7 million;
  • Income from operations increased 14.1% to $77.4 million; and,
  • Adjusted EBITDA2 increased 8.3% to $104.1 million.

"We had a solid fourth quarter to cap a much-improved year compared to 2020," said Robert O. Horrar, President and CEO of Medical Facilities. "Surgical case volumes continued to approach pre-pandemic levels, despite COVID-19's effects on staffing and scheduling of cases. Our strong cash flow performance throughout the year translated to improved shareholder returns in 2021, including substantial share price appreciation, a higher dividend, and the repurchase of 310,000 common shares in the fourth quarter. Our balance sheet remains strong, and we are well positioned to capitalize on growth opportunities."

Financial Results

Financial Results from Continuing Operations

For the three months ended

For the year ended

December 31

December 31

(thousands of U.S. dollars, except per share amounts and where otherwise noted)

2021

% change

2020

2021

% change

2020

Facility service revenue

110,677

3.3%

107,111

398,633

9.6%

363,854

Government stimulus income

5,742

142.1%

2,372

13,099

(49.6%)

26,008

Total revenue and other income

116,419

6.3%

109,483

411,732

5.6%

389,862

Consolidated operating expenses

90,917

3.5%

87,882

334,374

3.8%

322,068

Income from operations

25,502

18.1%

21,601

77,358

14.1%

67,794

Finance costs (net interest expense)

1,439

(3.5%)

1,491

6,064

0.1%

6,058

Finance costs (changes in values of derivative instruments and gain/loss on foreign currency)

1,564

(90.0%)

15,594

20,280

11.9%

18,119

Share of equity loss (income) in associates

(12)

(105.2%)

231

125

(93.2%)

1,837

Income tax expense (recovery)

1,608

220.8%

(1,331)

4,396

0.9%

4,358

Net income3 

20,903

272.2%

5,616

46,493

24.2%

37,422

Earnings (loss) per share







Basic

$0.33

430.0%

($0.10)

$0.50

61.3%

$0.31

Diluted

$0.32

420.0%

($0.10)

$0.50

61.3%

$0.31

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

For the three months ended

For the year ended

December 31

December 31

(thousands of U.S. dollars, except where otherwise noted)

2021

% change

2020

2021

% change

2020

Net income

20,903

272.2%

5,616

46,493

24.2%

37,422

Income tax expense (recovery)

1,608

220.8%

(1,331)

4,396

0.9%

4,358

Share of equity loss (income) in associates

(12)

(105.2%)

231

125

(93.2%)

1,837

Finance costs

3,003

(82.4%)

17,085

26,344

9.0%

24,177

Depreciation and amortization

6,451

(5.4%)

6,820

26,769

(4.0%)

27,888

EBITDA

31,953

12.4%

28,421

104,127

8.8%

95,682

Transaction costs on sale of Unity Medical and Surgical Hospital

-

-

-

-

(100.0%)

450

Adjusted EBITDA

31,953

12.4%

28,421

104,127

8.3%

96,132

 

Distributable Cash Flow

For the three months ended

For the year ended

December 31

December 31

(thousands of dollars, except per share amounts and percentage data)

2021

% change

2020

2021

% change

2020

Cash available for distribution2 (C$)

14,650

44.5%

10,136

37,448

(6.4%)

40,005

Distributions (C$)

2,479

13.8%

2,178

9,011

3.5%

8,710

Distributions per common share (C$)

$0.08

14.3%

$0.07

$0.29

3.6%

$0.28

Payout ratio2

16.9%

(21.4%)

21.5%

24.1%

10.6%

21.8%

MFC declared a quarterly cash dividend of C$0.0805 per common share (or C$0.32 per share on an annualized basis) to shareholders of record at the close of business on December 31, 2021, reflecting the 15% increase to the quarterly cash dividend announced on November 11, 2021. This was paid subsequent to the quarter end, on January 15, 2022, and represented an annualized yield of 3.42% on the December 31, 2021, closing price of $9.35 per common share.

As at December 31, 2021, MFC had consolidated net working capital of $67.4 million compared to $45.0 million as at December 31, 2020.

MFC's financial statements and management's discussion and analysis, for the three-month and twelve-month periods ended December 31, 2021, will be filed on SEDAR at www.sedar.com on Thursday, March 10, 2022, and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Normal Course Issuer Bid

The Board of Directors has approved an amendment to the Corporation's current NCIB, allowing the Corporation to purchase up to 10% of its issued and outstanding common shares during the remaining term of the NCIB, which is in effect until November 30, 2022, and subject to the other requirements of the TSX.

Under the existing NCIB, the Corporation purchased 310,000 of its common shares from the open market during the year ended December 31, 2021, for a total consideration of $2.1 million.

Notice of Conference Call

Management of MFC will host a conference call today, March 10, 2022, at 8:30 am ET to discuss its fourth quarter and year-to-date financial results. All interested parties may join the conference call by dialing 647-794-4605 or 1-888-204-4368 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/MFC2021Q4. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on MFC's website following the call date.

About Medical Facilities

Medical Facilities, in partnership with physicians, owns a diverse portfolio of highly rated, high-quality surgical facilities in the United States. MFC's ownership includes controlling interest in four specialty surgical hospitals located in Arkansas, Oklahoma, and South Dakota, and an ambulatory surgery center ("ASC") located in California. In addition, through a partnership with NueHealth LLC, Medical Facilities owns a controlling interest in five ambulatory surgery centers located in Michigan, Missouri, Nebraska, Ohio, and Pennsylvania. MFC also owns non-controlling interests in a specialty surgical hospital in Indiana and an ASC in Missouri. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ASCs specialize in outpatient surgical procedures, with patient stays of less than 24 hours. For more information, please visit www.medicalfacilitiescorp.ca.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions.  All forward-looking statements presented herein should be considered in conjunction with such filings.  Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.

1 Continuing operations is defined as consolidated operations excluding Unity Medical and Surgical Hospital and RRI Mishawaka Hospital, LP, which were treated as discontinued operations in the financial results for the year ended December 31, 2020.

2 EBITDA, adjusted EBITDA, cash available for distribution and payout ratio are non-IFRS financial measures. While Medical Facilities believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers, and should not be considered as alternatives to comparable measures determined in accordance with IFRS. For further 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 refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR at www.sedar.com.

3 Net Income is attributable to the owners of the Corporation and the non-controlling interest holders.

SOURCE Medical Facilities Corporation

Copyright 2022 Canada NewsWire

Medical Facilities (TSX:DR)
Historical Stock Chart
Von Feb 2024 bis Mär 2024 Click Here for more Medical Facilities Charts.
Medical Facilities (TSX:DR)
Historical Stock Chart
Von Mär 2023 bis Mär 2024 Click Here for more Medical Facilities Charts.