Premier Health of America Inc. (TSXV:
PHA) (the
“
Corporation”), a leading Canadian Healthtech
company, announces it has filed its Unaudited Quarterly
Consolidated Financial Statements and MD&A for its third
quarter ended June 30, 2023.
Third Quarter 2023 Highlights |
|
|
|
|
|
(in Canadian dollars) |
June 30, 2023(3 months) |
June 30, 2022(3 months) |
June 30, 2023(9 months) |
June 30, 2022(9 months) |
Revenues |
23,614,057 |
22,420,149 |
66,984,402 |
58,419,737 |
Gross margin |
6,463,737 |
5,476,682 |
17,308,196 |
14,232,530 |
Gross margin as a % of revenues |
27.4% |
24.4% |
25.8% |
24.4% |
Adjusted EBITDA (1) |
2,714,832 |
1,585,647 |
6,154,047 |
3,538,095 |
Net Income (Loss) |
544,236 |
397,167 |
228,643 |
(74,193 |
(1) See the
Corporation’s MD&A for details on this non-Gaap measure.
Summary – third quarter
- The Corporation had revenues of
$23.6M for the third quarter ($22.4M for the same period in
2022).
- Gross margin for the quarter was
27.4%, slightly above our long-term target of 25%.
- Adjusted EBITDA for the quarter was
$2.7M ($1.6M for the same period in 2022).
- Higher revenue and Adjusted EBITDA
are the result of the termination of COVID-19 emergency measures
set last year by the Quebec Ministry of Health.
- Net Income for the quarter was
$0.5M ($0.4M for the same period in 2022).
“We are pleased to show improved results driven
by a return to normal of our gross margins. CHCA continues to
deliver results in-line with the expectations we had when we
purchased it last year, and we are looking forward to closing our
recently announced transaction in British Columbia. The addition of
Solutions Staffing Inc. to our portfolio will further improve our
diversification as we reach our goal of having a coast-to-coast
footprint. Our eyes remain open to consolidate more assets in
Ontario and the rest of Canada,” said Martin Legault, CEO of
Premier Health. “We’ll continue to rigorously manage our existing
assets, as we monitor the evolving Quebec market.”
Business Highlights
- The Corporation provided 217,100
hours of service during the quarter.
- The special measures imposed by the
Ministry of Health last year were lifted as of January 1st, 2023.
As a reminder, these measures were adopted in response to the
pandemic. They imposed pricing below existing contracts awarded
through a competitive public procurement process.
- The Corporation’s four subsidiaries
were awarded contracts under Quebec RFP 2023-8017. The contracts
became effective respectively on June 1st for remote regions and
June 19th for metropolitan areas.
- Acquisition of Solutions Staffing
(British Columbia, Canada), announced on July 4th, 2023. Closing is
expected before the end of the current financial year.
- Continued development of our LiPHe
platform to further improve automation of our business processes.
Deployment is in process at some of our subsidiaries.
Province of Quebec
We expected a gradual return to normality in
2023. However, the National Assembly of Quebec sanctioned Bill 10
on April 20th, 2023. Bill 10 mainly states that the Ministry of
Health can decide where, when and for how long institutions can use
independent labour. Such decisions need to be enacted through the
issuance of specific directives. On July 26th,2023, a draft of the
directives was issued. The directives call for certain target dates
by which specific regions should stop using independent labor,
restrictions on who can be placed, rules on pricing and other
reimbursable costs, obligations of placement agencies, and what
constitutes a violation exposing an agency to financial sanctions.
The directives specifically state that the recent contract awards,
RFP 2023-8017, are exempted from the new rules. Also, most northern
regions are out of scope, meaning that Premier Soin Nordik and
Solution Nursing PHA are mostly unaffected. On August 16th, 2023,
the Quebec Minister of Health declared that he had received
comments on the draft directives and set the date of October 3rd,
2023, as the target for publishing the final set of directives.
Answering questions form the Association of Health and Social
Services Establishments Managers (AGESSS), the minister also stated
that dates included in the directives could be reevaluated in the
future, if necessary to implement a smooth transition.
PHA will endeavour to work within the proposed
framework, as it expects many smaller competitors to fail complying
to these new rules. We believe that our services offer flexibility
to both professionals and institutions, and as such, play a vital
role in providing quality healthcare to the population. According
to the Quebec Ministry of Health, the province is spending $1.32
billion annually on healthcare independent labor provided by
placement agencies.
Canadian Health Care Agency
The Ontario agency was acquired in April of 2022
and contributed to the company’s results for the full first nine
months of 2023. For the period CHCA contributed around 27% of the
consolidated revenues. The integration of CHCA is going as planned
with a solid and well-established management team. CHCA is an
important service provider to the Federal Government and is also
providing services to provincial entities namely in Manitoba and
British Columbia.
Solutions Staffing Inc
On July 4th, 2023, PHA announced the signature
of a binding share purchase agreement aiming to buy 100% of the
shares of Solutions Staffing Inc (“SSI”), a British Columbia
healthcare placement agency. The transaction is proceeding as
expected. The closing is subject to customary conditions, the
performance of which is ongoing, and is expected to close before
the end of PHA’s fiscal year. This acquisition is a major milestone
in terms of geographical diversification of PHA. It also expands
our base in the travel nurse segment, which, because of longer term
assignments, is simpler to manage. Based on its 2022 fiscal year,
SSI had revenues of $74.0M and an EBITDA of $6.7M. On a proforma
basis, PHA’s revenue base outside Quebec will represent 60% of
total revenues.
Issuance of Deferred Shared Units
(“DSU”)
On August 28th, 2023, 462,500 DSUs will be
issued to PHA’s administrators as compensation for services
performed in 2023. The price of each unit was set to $0.80/unit on
the award date which was March 23rd, 2023. However, the units could
not be issued until now because of restrictions linked to blackout
periods. This issuance is made from the normal administrators’
remuneration plan.
About Premier Health
Premier Health is a leading Canadian Healthtech
company that provides a comprehensive range of outsourced services
solutions for healthcare needs to governments, corporations, and
individuals. Premier Health uses its proprietary LiPHe platform to
lead the healthcare services sector digital transformation to
provide patients with faster, cheaper, and more accessible care
services.
Non-GAAP Measures
Earnings before interest, taxes, depreciation,
and amortization (“EBITDA”), is calculated as the net profit
(loss), before non-recurring items excluding acquisition and
transaction costs, non-cash expenses (including loss from disposal
of assets, impairments, amortization, and depreciation), interest
expense, net of interest income and income tax expense. More detail
can be found in PHA’s Management Discussion and Analysis.
For Further Information Please
Contact:
Mr. Guy DaoustChief Financial
OfficerPremier Health of America
Inc.gdaoust@premierhealth.ca / 1 800 231 9916
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION:
This press release contains forward-looking
information based on current expectations. Statements about events
taking place in the future, the achievement of acquisitions or
growth objectives, the effects of regulatory changes, amongst
others, are forward-looking information. These statements should
not be read as guarantees of future performance or results. Such
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance, or achievements
to be materially different from those implied by such statements.
The Corporation assumes no responsibility to update or revise
forward-looking information to reflect new events or circumstances
unless required by law. These factors and others are more fully
discussed in the filings of the Corporation with Canadian
securities regulatory authorities available at www.sedar.com.
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