LIFEWORKS INC. Report to shareholders
Second quarter 2021
Three and six months ended June
Table of contents
Management's discussion and analysis
Preface Forward-looking information Business overview
About LifeWorks
2021 second quarter summary
Analysis of 2021 second quarter and year-to-date operating results
Liquidity and capital resources Equity and capital
Selected statement of financial position data
Critical accounting estimates Risks and uncertainties
Supplementary summary of quarterly results
Disclosure controls and procedures Internal control over financial reporting
Key performance indicators and non-IFRS financial metrics
Additional information
Unaudited condensed consolidated interim
1 financial statements
1 Unaudited condensed consolidated interim
2 | statements of financial position | 25 |
3 Unaudited condensed consolidated interim statements of financial position (continued) 26
5 Unaudited condensed consolidated interim statements of (loss) income and
6 | comprehensive (loss) income | 27 |
12 Unaudited condensed consolidated
13 | interim statements of changes in equity | 28 |
Unaudited condensed consolidated | ||
17 | interim statements of cash flows | 29 |
- Notes to unaudited
- condensed consolidated
19 interim financial statements
19 Notes 1 to 1131
20
We are a new age
20 digital health company
23
Company history | 37 |
For more information about LifeWorks (formerly Morneau Shepell),
visit our website lifeworks.com
Management's discussion and analysis
Three and six months ended June 30, 2021 and 2020
Preface
This Management's discussion and analysis ("MD&A") covers the three and six months ended June 30, 2021 and should be read in conjunction with the accompanying unaudited condensed consolidated interim financial statements ("interim financial statements") of LifeWorks1 (the "Company," "we," "us," and "our") and notes thereto for the three and six months ended June 30, 2021 and 2020, and the MD&A and audited consolidated financial statements and notes thereto for the year ended December 31, 2020 and 2019 ("annual financial statements").
Unless otherwise noted, all financial information presented has been rounded to the nearest thousand, and all financial information is presented in Canadian dollars, in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise noted. Certain totals, subtotals and percentages may not reconcile due to rounding.
Unless otherwise noted, all comparative results for Q2 2021 (three and six months ended June 30, 2021) are compared against Q2 2020 (three and six months ended June 30, 2020).
To assist investors in assessing the Company's financial performance, this MD&A makes reference to certain key performance indicators ("KPIs") and non-IFRS metrics which Management believes are useful in assessing the performance of the Company. Readers are cautioned that these measures do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. KPIs and non-IFRS metrics are described and reconciled to IFRS metrics in the "Key performance indicators and non-IFRS financial metrics" section of this MD&A.
Forward-looking information
This MD&A contains "forward-looking information" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Specific statements used in this MD&A that may contain "forward-looking information" include but are not limited to statements with respect to: the discussion of our business and operating segments, focuses and strategies; our expectations of future performance for our various operating segments and our consolidated financial results; the conversion of long-term incentive plan units into common shares; considerations in determining when to declare dividends and the amount of such dividends; the Company's management and monitoring of commitments and contractual obligations to ensure that they can be met with funding provided by operations and capital resources available; the ability to fund commitments and contractual obligations with funding provided by operations and capital resources available; future lease and credit facility commitments; and future consideration related to acquisitions. They are based on certain factors and assumptions, including expected growth, results of operations, business prospects and opportunities. The use of words such as "may," "will," "expect," "believe," "could," "would," "intend," or other words of similar effect may indicate "forward-looking information." Forward-looking information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in our publicly filed documents (available on SEDAR at sedar.com) and in this MD&A under the heading "Risks and Uncertainties".
Those risks and uncertainties include, among other things, the ability to maintain profitability and manage growth, competition, reliance on information systems and technology, reputational risk, satisfactory performance of client obligations, general economic conditions, and pandemics, natural disasters or other unanticipated events (including the novel coronavirus and variants thereof ("COVID-19") pandemic), dependence on key clients and key channel partners, risk of future legal proceedings, protection of intellection property, foreign exchange risk, insurance, indebtedness and interest rates, credit risk, dividends, market price and dilution of common shares. Many of these risks and uncertainties can affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information or statement made by the Company or on the Company's behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking information as a prediction of actual results.
All forward-looking information in this MD&A is qualified by these cautionary statements. These statements are made as of the date of this MD&A and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities.
1 LifeWorks Inc. ("LifeWorks") was incorporated pursuant to the laws of the Province of Ontario on October 19, 2010 under the name Morneau Shepell Inc. and completed a name change to LifeWorks Inc. on May 17, 2021.
LifeWorks Inc. | Report to shareholders Q2, 2021 | 1 |
Management's discussion and analysis
Business overview
LifeWorks is a world leader in providing digital and in-person solutions that support the total wellbeing of individuals - mental, financial, social and physical. We deliver a personalized continuum of care that helps our clients improve the lives of their people and by doing so, improve their business. It's the idea that by improving a person's life, we improve how they perform at work.
Client organizations that use our services in Canada, the United States and around the globe
25 thousand
Number of lives LifeWorks services cover
37 million
The Company's Purpose, Vision and Values are the pillars by which the Company operates.
Our purpose
Improving lives.
Improving business.
By helping our clients improve the wellbeing of their people, we help them improve workforce engagement and productivity, thereby improving the performance of our clients' organizations.
Our vision
To optimize the health and productivity of people - the heart of every successful organization.
Our values
We value long-term relationships
We treat others the way we want to be treated
We are innovative and entrepreneurial
2 LifeWorks Inc. | Report to shareholders Q2, 2021
Management's discussion and analysis
About LifeWorks
Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, and actuarial and investment services.
People with access to mobile integrated platform (millions)
Total number of lives | Number of lives |
covered by EAP - | covered by enhanced |
Direct | modules |
14.8 million | 1.2 million |
6
5
4
3
2
1
0
Dec 31 | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Mar 31 | Jun 30 |
2018 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 |
- Total number of lives with access to the platform
5.9 million
LifeWorks Inc. | Report to shareholders Q2, 2021 | 3 |
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LifeWorks Inc. published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 20:39:31 UTC.
