Highlights for the First Quarter of 2020
- Revenue from continuing operations increased 3.0% to
$30.4 million ; - Average number of beds serviced increased 3.4% to 31,387;
- Adjusted EBITDA1 from continuing operations increased 10.0% to
$2.0 million ; and - Completed debt financing of up to
$42.7 million with Crown Capital Partners Inc. andYorkville Asset Management Inc. for and on behalf of certain managed funds.
Highlights Subsequent to Quarter-End
- Completed the acquisition of
Remedy Holdings Inc. ("RHI") and the Remedy'sRxSpecialty Pharmacy business ("Remedy's") onMay 7, 2020 ; and - Appointed
Jeff May to the role of Chief Operating Officer (formerly Executive Vice-President and General Manager of RHI).
"We had a strong start to the year with growth in revenue and profitability, as well as in the average number of beds serviced compared to this time last year," said
COVID-19 UPDATE
"We continue to play an essential role in the safe and timely supply of medications to Canadian seniors, which has meant that the COVID-19 pandemic has had no material effect on the Company's financial performance to date," said
FINANCIAL RESULTS
Selected Financial Information
(Thousands of Canadian dollars except per share amounts and percentages) | For the three month periods ended | |
2020 | 2019 | |
$ | $ | |
Revenue from | 30,426 | 29,533 |
Adjusted EBITDA1 from | 3,197 | 3,342 |
Adjusted EBITDA Margin from | 10.5% | 11.3% |
Corporate office costs | 1,152 | 1,483 |
Adjusted EBITDA from continuing operations | 2,045 | 1,859 |
Adjusted EBITDA Margin from continuing operations | 6.7% | 6.3% |
Adjusted EBITDA | 2,045 | 3,140 |
Per share - Basic2 | ||
Per share - Diluted2 | ||
Adjusted EBITDA Margin | 6.7% | 7.8% |
Net income (loss) | 5,314 | (5,271) |
Per share - Basic2 | ( | |
Per share - Diluted2 | ( | |
Cash provided by (used in) operations | (1,450) | 2,547 |
Total Assets | 92,566 | 138,967 |
Total Liabilities | 105,163 | 153,751 |
1 | See "Non-IFRS Measures" below. |
2 | Basic and diluted earnings per share is based on the profit or loss attributable to shareholders of |
Revenue from continuing operations for the quarter increased 3.0% to
Adjusted EBITDA from continuing operations for the quarter increased 10.0% to
The net impact of the ODBA amendments in the first quarter was a reduction to Adjusted EBITDA of approximately
DISCONTINUED OPERATIONS
During the year ended
CONFERENCE CALL
Telephone Dial-In Access Information
To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. Those participating in the conference call by telephone can view the slide presentation by accessing the online webcast (see instructions below) and choosing the Non-Streaming Audio option.
Webcast Access Information
A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's web site (http://www.centrichealth.ca/investors/events-and-presentations.html). 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. To view the webcast presentation with slides, please choose either the Real Streaming Audio or Windows Streaming Audio option. The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's web site (http://www.centrichealth.ca/investors/events-and-presentations.html).
For further information, please refer to the Company's complete filings at https://sedar.com.
ABOUT
With services that address the growing demand within the Canadian healthcare system,
FORWARD-LOOKING STATEMENTS
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's government regulation and funding, liquidity and capital requirements, the highly competitive nature of the Company's industry, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.
NON-IFRS MEASURES
This press release includes certain measures which have not been prepared in accordance with IFRS such as EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per share. These non-IFRS measures are not recognized under IFRS and, accordingly, shareholders are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.
The Company defines EBITDA as earnings before depreciation and amortization, finance (income) costs, net, and income tax expense (recovery). Adjusted EBITDA is defined as EBITDA before transaction and restructuring costs, change in fair value of contingent consideration liability, impairments, change in fair value of derivative financial instruments, gain on disposal of property and equipment and stock-based compensation expense. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA per share is defined as Adjusted EBITDA divided by the weighted average outstanding shares on both a basic and diluted basis. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are structured with certain financial performance covenants which includes Adjusted EBITDA as a key component of the covenant calculations. EBITDA and Adjusted EBITDA are not recognized measures under IFRS.
SOURCE
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