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