All references to dollar values in this press release are in Canadian dollars, unless otherwise indicated.
'We are pleased to report our strongest quarterly results on record. Our performance is a testament to the hard work of our nearly 10,000 team members from coast to coast, and the resilience of our business as we benefitted from our strategy of balanced growth across organic, acquisitive and balance sheet deleveraging initiatives' said
Financial and Operating Results for the Three Months Ended
Revenue for the first quarter 2023 of
Same Practice Revenue Growth of 8.5% compared to the first quarter 2022, driven by overall demand for services, 2023 fee guide increases, and the Company's insourcing initiatives, and Same Practice EBITDA up 11.2%. Adjusted EBITDA Growth For Acquisitions Completed in Prior Period was 19.3% over comparable performance, driven by overall demand for services, pricing increases, the Company's insourcing initiatives, and the rigors of the Company's integration program.
Adjusted EBITDA increased to
Adjusted net income for the quarter was
Adjusted free cash flow for the quarter was
The Company acquired 6 dental practices during the first quarter 2023, which are budgeted to generate approximately
The Company ended the first quarter 2022 with liquidity of
Second Quarter 2023 Outlook
'Our first quarter results provide us with a solid backdrop for strong second quarter revenue growth driven by the performance of our same practice cohort and 2022 acquisitions,' said
The foregoing outlook with respect to the second quarter is based on the Company's current strategies and may be considered forward-looking information under applicable securities laws. Such targets are based on estimates and assumptions made by the Company regarding, among other things, the assumptions set out under 'Forward-Looking Information'. Readers are cautioned that actual results may vary materially from the above targets if the Company's assumptions are incorrect or as a result of the risks and uncertainties that may impact our business and that may cause actual results to vary.
Normal Course Issuer Bid
dentalcorp also announced today acceptance by the
'We believe that the market price of the Subordinate Voting Shares may, at certain times throughout the duration of the NCIB, be undervalued based on our financial performance and prospects,' said
Under the NCIB, dentalcorp may purchase up to 51,779 of its Subordinate Voting Shares on the TSX during any trading day, which represents 25% of the average daily trading volume of 207,119 Subordinate Voting Shares on the TSX for the 6 months ended
The NCIB will be conducted in accordance with TSX rules and policies through the facilities of the TSX and through alternative trading systems, if eligible. The price that dentalcorp will pay for any Subordinate Voting Shares will be the market price prevailing at the time of purchase or such other price as may be permitted.
In connection with the NCIB, the Company also announces that it has entered into an issuer automatic purchase plan agreement (the 'Plan') with an independent designated broker (the 'Broker') responsible for making purchases of Subordinate Voting Shares pursuant to the Plan. Under the Plan, the Broker will have sole discretion to purchase Subordinate Voting Shares pursuant to the NCIB during trading black-out periods established under the Company's Insider Trading Policy, subject to the price limitations and other terms of the Plan and the rules of the TSX. The Company may instruct the Broker to make specific purchases and suspend or terminate the Plan, provided in each case that the Company certifies to the Broker that it is not in possession of any material undisclosed information and such request is otherwise in compliance with the terms of the Plan.
Conclusion of Strategic Review Process
In
The Special Committee conducted an extensive review and evaluation of several alternatives available to the Company. The Special Committee provided its final report to the Board on
The Special Committee's recommendation has been accepted and endorsed by the Board. Accordingly, the work of the Special Committee has been completed, and the committee will be dissolved.
Non-IFRS and Other Measures
As appropriate, we supplement our results of operations determined in accordance with IFRS with certain non-IFRS financial measures that we believe are useful to investors, lenders, and others in assessing our performance and which highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management also uses non-IFRS measures for purposes of comparison to prior periods, to prepare annual operating budgets, for the development of future projections and earnings growth prospects, to measure the profitability of ongoing operations and in analyzing our financial condition, business performance and trends, including the run-rate of the business after taking into consideration the acquisitions of dental practices. As such, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective, including how we evaluate our financial performance and how we manage our capital structure. We also believe that securities analysts, investors, and other interested parties frequently use these non-IFRS measures and industry metrics in the evaluation of issuers. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and may include or exclude certain items as compared to similar IFRS measures, and such measures may not be comparable to similarly-titled measures reported by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
Forward-Looking Information
This news release includes forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including the Securities Act (
The purpose of disclosing such forward-looking information is to provide investors with more information concerning the financial results that the Company currently believes are achievable based on the assumptions below. Readers are cautioned that the information may not be appropriate for other purposes. While these targets are based on underlying assumptions that management believes are reasonable in the circumstances, readers are cautioned that actual results may vary materially from those described above.
Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. Such factors and assumptions include, but are not limited to, the following assumptions for the remainder of 2023 and the medium-term, as applicable: the Company's business, operations and capital structure continuing as currently maintained, that the Company's acquisition program continues without any divestitures of non-core assets or re-deployment of capital of the Company, the Company's ability to realize pricing increases, an increase in patient visit volumes in the second quarter of 2023, reductions in previously imposed industry wide regulatory restrictions, the impact of the investments the Company has made in its marketing and talent teams and the upgrades to its core information technology systems; the Company's ability to continue to make and integrate acquisitions at attractive valuations including a reduction in acquisition Practices Level EBITDA Purchase multiples as compared to prior periods, the impact of corporate investments made in 2022 and 2023 on the Company's operations, including the Company's corporate infrastructure and technology stack, including its new Human Resource Information system and ERP system, the Company benefiting from its unhedged borrowings due to future and forecasted rate decreases,the expansion of service offerings and frequency of patient visits which contribute to optimal patient care, the Company's ability to mitigate anticipated supply chain disruptions, geopolitical risks, inflationary pressures and labour shortages, ability to expand service offerings, cash flow generation ability, no changes in the competitive environment or legal or regulatory developments affecting our business; visits by patients to our Practices at the same rate as current visits; a steady improvement in the general COVID-19 environment including, the continued reopening of the economy and no further significant restrictions and other factors listing under the heading Risk Factors in the Company's Annual Information Form dated
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, the Company's potential inability to successfully execute its growth strategy and complete additional acquisitions; its dependence on the integration and success of its acquired dental practices; the potential adverse effect of acquisitions on its operations; its dependence on the parties with which the Company has contractual arrangements and obligations; changes in relevant laws, governmental regulations and policy and the costs incurred in the course of complying with such changes; competition in the dental industry; increases in operating costs; the risk of difficulty complying with public company reporting obligations and the risk of a failure in internal controls.
Although the Company has attempted to identify important factors that could cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, conditions, results, performance or achievements to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. Accordingly, investors should not place undue reliance on forward-looking statements. All the forward-looking statements are expressly qualified by the foregoing cautionary statements.
About dentalcorp
dentalcorp is
Contact:
Tel: 416.558.8338
Email: investors@dentalcorp.ca
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