TORONTO, May 12, 2022
/CNW/ - Medical Facilities Corporation ("Medical Facilities,"
"MFC," or the "Corporation") (TSX: DR), reported its financial
results today for the first quarter ended March 31, 2022. All currency amounts are
expressed in U.S. dollars unless indicated otherwise.
Q1 2022 Summary
(Compared to Q1 2021)
- Facility service revenue increased 7.2% to $100.8 million;
- Surgical case volumes increased 6.1%;
- Total revenue and other income, including government stimulus
income of $1.8 million, increased
4.6% to $102.6 million;
- Income from operations decreased 20.0% to $14.7 million due to higher operating expenses
and a decrease in government stimulus income;
- Consolidated operating expenses1 increased 10.2% to
$87.9 million due to volume growth
and inflationary pressures; and,
- EBITDA2 decreased 21.1% to $19.8 million.
"Our surgical case volumes and facility service revenue
increased 6.1% and 7.2% respectively for the quarter, despite
COVID-19 significantly impacting our operations in the month of
January," said Robert O. Horrar,
President and CEO of Medical Facilities. "As the Omicron surge
began to subside, our case volumes improved dramatically in the
last half of the quarter. Our balance sheet remains strong, and we
are in a good position to execute on potential growth
opportunities."
Financial Results
Financial
Results
|
For the three months
ended
|
March
31
|
(thousands of U.S.
dollars, except
per share amounts and where
otherwise noted)
|
2022
|
% change
|
2021
|
Facility
service revenue
|
100,788
|
7.2%
|
|
93,996
|
Government
stimulus income
|
1,810
|
(56.2%)
|
|
4,133
|
Total revenue and other
income
|
102,598
|
4.6%
|
|
98,129
|
Consolidated operating
expenses
|
87,918
|
10.2%
|
|
79,770
|
Income from
operations
|
14,680
|
(20.0%)
|
|
18,359
|
Finance
costs (net interest
expense)
|
1,401
|
(9.1%)
|
|
1,542
|
Finance
costs (changes in values
of derivative instruments and
gain/loss on foreign currency)
|
16,494
|
254.8%
|
|
4,649
|
Share of
equity loss (income) in
associates
|
(6)
|
(114.3%)
|
|
42
|
Income tax
expense (recovery)
|
(2,094)
|
(215.1%)
|
|
1,819
|
Net income
(loss)3
|
(1,115)
|
(110.8%)
|
|
10,307
|
Earnings (loss) per
share
|
|
|
|
|
Basic
|
$(0.26)
|
(336.4%)
|
|
$0.11
|
Diluted
|
$(0.26)
|
(336.4%)
|
|
$0.11
|
Reconciliation of
Net Income
(Loss) to EBITDA
|
For the three months
ended
|
March
31
|
(thousands of U.S.
dollars, except
where otherwise noted)
|
2022
|
% change
|
2021
|
Net income
(loss)
|
(1,115)
|
(110.8%)
|
|
10,307
|
Income tax expense
(recovery)
|
(2,094)
|
(215.1%)
|
|
1,819
|
Share of equity loss
(income) in
associates
|
(6)
|
(114.3%)
|
|
42
|
Finance
costs
|
17,895
|
189.0%
|
|
6,191
|
Depreciation and
amortization
|
5,137
|
(24.2%)
|
|
6,773
|
EBITDA
|
19,817
|
(21.1%)
|
|
25,132
|
Distributable Cash
Flow
|
For the three months
ended
|
March
31
|
(thousands of
dollars, except per
share amounts and percentage data)
|
2022
|
% change
|
2021
|
Cash available for
distribution2 (C$)
|
5,503
|
(30.3%)
|
|
7,899
|
Distributions
(C$)
|
2,448
|
12.4%
|
|
2,177
|
Distributions per
common share (C$)
|
0.08
|
14.3%
|
|
0.07
|
Payout
ratio2
|
44.4%
|
60.9%
|
|
27.6%
|
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 March 31, 2022. This was paid subsequent to the
quarter end, on April 14, 2022, and
represented an annualized yield of 2.83% on the March 31, 2022, closing price of C$11.32 per common share.
As at March 31, 2022, MFC had
consolidated net working capital of $61.4
million compared to $67.4
million as at December 31,
2021.
MFC's financial statements and management's discussion and
analysis, for the three-month period ended March 31, 2022, will be filed on SEDAR at
www.sedar.com on Thursday, May 12, 2022, and will also be
available on Medical Facilities' website at
www.medicalfacilitiescorp.ca.
Normal Course Issuer Bid
The Corporation has a normal course issuer bid ("NCIB") in
effect from December 1, 2021, to
November 30, 2022. Under the NCIB,
the Corporation may purchase up to 3,101,774 of its common shares
(increased from 1,555,312, effective April
7, 2022), subject to certain purchase restrictions and in
compliance with the rules of the Toronto Stock Exchange. During the
three months ended March 31, 2022,
the Corporation purchased 391,100 of its common shares for a total
consideration of $3.0 million from
the open market.
Notice of Conference Call
Management of MFC will host a conference call today,
May 12, 2022, at 8:30 am ET
to discuss its first quarter financial results. All interested
parties may join the conference call by dialing 647-484-0478 or
1-888-256-1007 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/MFCQ12022. 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 Consolidated operating
expenses include increases in drugs and supplies of $3.7 million,
salaries and benefits of $0.8 million, share-based compensation of
$1.5 million, and anesthesia service costs at one facility of $1.2
million which have a corresponding revenue increase of $1.0
million.
|
|
2 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 (loss) is
attributable to the owners of the Corporation and the
non-controlling interest holders.
|
SOURCE Medical Facilities Corporation