Q1 2022 Summary
- Revenue increased 54.9% to
$148.4 million , compared to$95.8 million in the three months endedMarch 31, 2021 ("Q1 2021"); - Operating income increased 45.0% to
$24.2 million , compared to$16.7 million in Q1 2021; - Net income increased 41.9% to
$16.5 million , compared to$11.6 million in Q1 2021; - Total comprehensive income increased to
$13.5 million , or$0.39 per share (diluted) compared to$11.6 million , or$0.30 per share (diluted) in Q1 2021; - EBITDA1 increased 54.5% to
$39.4 million , compared to$25.5 million in Q1 2021; - EBITDA Margin1 was 26.5%, compared to 26.6% in Q1 2021;
- AHG continued to provide logistics and distribution, specialized transportation, and packaging solutions to certain of its manufacturer, 3PL provider, wholesaler and government clients that are involved in the Canadian supply of COVID-19 vaccines and ancillary products. In Q1 2022, the Company's COVID-19 pandemic-related revenue comprised approximately 5.1% of total revenue, compared to approximately 3.9% in Q1 2021; and
- On
March 1, 2022 , AHG acquired 100% of the issued and outstanding shares ofLogistics Support Unit (LSU) Inc. ("LSU") for consideration of approximately$30.0 million before customary working capital adjustments. LSU is a third-party logistics provider offering specialty pharmacy, warehousing, distribution and order management services throughoutCanada to national and international companies as well as government clients in the pharmaceutical, medical and biotechnology sectors. The purchase price was financed through the issuance of 154,639 subordinate voting shares and cash of approximately$22.5 million provided by a combination of cash on hand and by drawing on the Company's credit facilities.
"Our strong financial performance in the first quarter, including year-over-year increases in revenue and EBITDA1 of greater than 50%, reflects the significant impact of our acquisitions in 2021 and steady organic growth," said
Selected Consolidated Financial Summary
Three months ended | ||||
($CAD 000s, except per share amounts) | 2022 | 2021 | Variance | |
Revenue | ||||
Logistics & Distribution | 33,245 | 27,628 | 20.3 % | |
Packaging Solutions | 5,758 | 5,651 | 1.9 % | |
Healthcare Logistics Segment | 39,003 | 33,279 | 17.2 % | |
Ground Transportation | 97,494 | 53,583 | 81.9 % | |
Air Freight Forwarding | 7,596 | 6,601 | 15.1 % | |
Dedicated and Last Mile Delivery | 15,445 | 11,218 | 37.7 % | |
Intersegment Revenue | (11,187) | (8,915) | 25.5 % | |
Specialized Transportation Segment | 109,348 | 62,487 | 75.0 % | |
Total revenue | 148,351 | 95,766 | 54.9 % | |
Operating expenses | 124,189 | 79,103 | 57.0 % | |
Operating income | 24,162 | 16,663 | 45.0 % | |
Net income | 16,471 | 11,611 | 41.9 % | |
Foreign currency translation adjustment | (2,967) | - | N/A | |
Total comprehensive income | 13,504 | 11,611 | 16.3 % | |
Earnings per share – basic | $ 0.39 | $ 0.31 | $ 0.08 | |
Earnings per share – diluted | $ 0.39 | $ 0.30 | $ 0.09 | |
Select financial metrics | ||||
EBITDA1 | 39,386 | 25,487 | 54.5% | |
EBITDA Margin1 | 26.5% | 26.6% | (0.1%) |
Q1 2022 Financial Results
Revenue for Q1 2022 increased by 54.9% to
Revenue for the healthcare logistics segment totaled
Revenue in the specialized transportation segment totaled
Cost of transportation and services was $72.7 million, or 49.0% of revenue, compared with $41.3 million, or 43.1% of revenue, for Q1 2021. The higher cost of transportation and services for Q1 2022 was primarily attributable to the acquisitions of Skelton,
Direct operating expenses were $24.8 million, or 16.7% of revenue, compared with $20.6 million, or 21.6% of revenue, for Q1 2021. The increase was primarily attributable to growth in the Accuristix logistics and distribution operations, and the acquisition of LSU. AHG's specialized transportation acquisitions (Skelton,
Selling, general and administrative ("SG&A") expenses were
Operating income for Q1 2022 was
Net income for Q1 2022 was
Total comprehensive income for Q1 2022 was
Earnings before interest, taxes, depreciation and amortization ("EBITDA")¹ increased by 54.5% to
Dividend
The Company paid a dividend (encompassing the period from
Subject to financial results, capital requirements, available cash flow, corporate law requirements and any other factors that AHG's Board of Directors may consider relevant, it is the Company's intention to declare a quarterly dividend of
Shares Outstanding
As at
Financial Statements
AHG's unaudited interim condensed consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for Q1 2022 are available on the Company's website at www.andlauerhealthcare.com and on the Company's profile on SEDAR at www.sedar.com.
Conference call and webcast
The call will be webcast live at: www.andlauerhealthcare.com/presentations-events.
To access a replay of the conference call dial (416) 764-8677 or (888) 390-0541, passcode: 596601 #. The replay will be available until
About AHG
AHG is a leading and growing supply chain management company offering a robust platform of customized third-party logistics ("3PL") and specialized transportation solutions for the healthcare sector. The Company's 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across
Forward-looking Information
This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information may relate to the Company's future financial outlook and anticipated events or results and may include information regarding the Company's financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans, objectives and responses to the outbreak of COVID-19. Particularly, information regarding the Company's growth expectations, performance, achievements, payment of dividends, prospects, financial targets or outlook, intentions, opportunities or the potential impact of, and response measures to be taken with respect to, COVID-19 is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", "commencing" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Cautionary Note Regarding Forward-Looking Information" in the Company's MD&A for the three-month period ended
(1) Non-IFRS Financial Measures
This news release contains certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. AHG uses non-IFRS measures including "EBITDA" and "EBITDA Margin". These non-IFRS measures are used to provide investors with supplemental measures of the Company's operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. AHG also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. AHG management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation.
EBITDA
AHG defines EBITDA as net income (loss) and comprehensive income (loss) for the period before: (i) income tax (recovery) expense; (ii) interest income; (iii) interest expense; and (iv) depreciation and amortization.
AHG believes EBITDA is a useful measure to assess the Company's financial performance because it provides a more relevant picture of operating results by excluding the effects of expenses that are not reflective of the Company's underlying business performance.
EBITDA Margin
AHG defines EBITDA Margin as EBITDA divided by revenue. EBITDA Margin represents a measure of the Company's profitability expressed as a percentage of revenue.
AHG believes EBITDA Margin is a useful measure to assess the Company's financial performance because it helps quantify the Company's ability to convert revenues generated from clients into EBITDA.
Reconciliation of EBITDA
($CAD 000s) | Three Months Ended | |
2022 | 2021 | |
Net income | 16,471 | 11,611 |
Income tax expense | 5,982 | 4,173 |
Interest expense | 1,544 | 1,368 |
Interest income | (102) | (105) |
Depreciation & amortization | 15,491 | 8,440 |
EBITDA | 39,386 | 25,487 |
SOURCE
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