TORONTO, Nov. 10, 2016 /CNW/ - Medical Facilities
Corporation ("Medical Facilities," "MFC," or the "Company") (TSX:
DR), today reported its financial results for the three-month and
nine-month periods ended September 30, 2016. All amounts are
expressed in U.S. dollars unless indicated otherwise.
"In the third quarter of 2016 we achieved some important
milestones in growing the Company," said Britt T. Reynolds, CEO of Medical Facilities.
"This included the first addition to our executive management team
and finalizing some strategic acquisitions that will add to
operations in the fourth quarter. We expect continued progress
through the rest of the year."
Third Quarter 2016 Summary
- Revenue from continuing operations of $78.8 million, up 7.8% as compared with
$73.1 million in Q3 2015, due in
large part to higher surgical case volume up 4.6% compared to the
prior year
- Income from operations of $14.2
million, down 3.7% as compared with $14.7 million in Q3 2015. While volumes and
revenue were up over prior year, a shift in payor mix and increased
expenses due to case type contributed to lower income and
margins
- Cash available for distribution1 of Cdn$10.5 million, up 7.3% as compared with
Cdn$9.8 million in Q3 2015
- Paid monthly dividends of C$0.0975 per share, representing an annualized
dividend of C$1.13 per share. At
quarter end, the company has paid 149 consecutive dividends since
inception
- Payout ratio1 of 83.1% as compared with 89.8% in Q3
2015
- Appointed James Rolfe as Chief
Development Officer of the Company
- Closed previously announced transaction to acquire an indirect
62%, and ultimately, in stages, an 83%, interest in Unity Medical
and Surgical Hospital ("Unity"), a physician-owned medical and
surgical hospital located in Mishawaka,
Indiana
- Ambulatory surgical center in Sioux
Falls South Dakota acquired by Sioux Falls Specialty
Hospital for approximately $20.0
million effective October 3,
2016
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1 Cash available for
distribution and payout ratio are non-IFRS financial measures.
While Medical Facilities believes that these measures are useful
for the evaluation and assessment of its performance, they do not
have any standard meaning prescribed by IFRS, are unlikely to be
comparable to similar measures presented by other issuers, and
should not be considered as alternatives to comparable measures
determined in accordance with IFRS. For further information on
these non-IFRS financial measures, including a reconciliation of
each of these non-IFRS financial measures to the most directly
comparable measure calculated in accordance with IFRS, please refer
to Medical Facilities' most recently filed management's discussion
and analysis, available on SEDAR at www.sedar.com.
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"Along with growth, an equally important initiative we are
focusing on is aligning our operating expenses with our payor mix,"
added Mr. Reynolds. "This includes addressing supply chain costs
and matching our labour costs to case volume. We are committed to
continuing to deliver the high quality of care our facilities are
known for, in an efficient and cost-effective manner."
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Financial
Results
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For the three
months ended
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For the nine
months ended
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September
30
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September
30
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(thousands of U.S.
dollars, except per share
amounts and where otherwise noted)
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2016
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% change
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2015
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2016
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% change
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2015
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Revenue from
continuing operations
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78,806
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7.8%
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73,137
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231,479
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5.7%
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219,018
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Consolidated
operating expenses
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64,624
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10.6%
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58,404
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188,708
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9.6%
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172,120
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Income from
operations
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14,182
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-3.7%
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14,733
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42,771
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-8.8%
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46,898
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Finance Costs (Net
interest expense)
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1,079
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39.4%
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774
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2,512
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10.6%
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2,271
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Finance Costs
(Changes in values of derivative instruments and gain/loss on
foreign currency)
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15,210
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(266)
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48,859
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(15,459)
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Income tax expenses
(recovery)
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(1,730)
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-147.9%
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3,614
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(9,578)
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-162.9%
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15,219
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Consolidated income
from operations
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(377)
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-103.6%
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10,611
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978
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-97.8%
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44,867
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Attributable to:
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Owners of the
Corporation
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(6,836)
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-286.6%
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3,663
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(18,360)
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-177.6%
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23,674
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Non-controlling
interest
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6,459
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-7.0%
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6,948
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19,338
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-8.8%
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21,193
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Earnings per
share
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Basic
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(0.22)
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0.12
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(0.59)
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0.76
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Diluted
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(0.22)
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0.08
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(0.59)
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0.32
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Cash available for
distribution (C$)
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10,510
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7.3%
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9,796
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32,904
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-1.3%
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33,330
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Distributions
(C$)
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8,732
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-0.7%
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8,795
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26,197
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-0.8%
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26,421
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Cash available for
distribution per common share (C$)
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0.34
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9.7%
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0.31
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1.06
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1.06
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Distributions per
common share (C$)
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0.28
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0.28
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0.84
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0.84
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Payout
Ratio
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83.1%
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-7.5%
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89.8%
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79.6%
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0.4%
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79.3%
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As at September 30, 2016, the
Company had consolidated net working capital of $60.5 million, including cash and cash
equivalents and short-term investments of $70.9 million and accounts receivable of $$50.8
million, compared with net working capital of $85.7 million, including cash and cash
equivalents and short-term investments of $70.9 million, and accounts receivable of
$48.8 million, as at December 31, 2015. Long-term debt at the Centers'
level, including the current portion, was $63.1 million as at September 30, 2016 compared with $35.4 million as at December 31, 2015.
Medical Facilities' complete third quarter 2016 financial
statements and management's discussion and analysis will be issued
and filed on SEDAR at www.sedar.com on Thursday, November
10, 2016 and will be available on the same day on Medical
Facilities' website at www.medicalfacilitiescorp.ca.
Normal Course Issuer Bid ("NCIB")
The Company
repurchases its common shares in the open market. By repurchasing
and cancelling its common shares, Medical Facilities reduces the
total amount of dividends payable, resulting in cash savings for
the Company. The remaining shareholders also benefit from the NCIB
as the distributable cash per share increases. During the
nine-month period ended September 30, 2016, the Company
purchased 67,500 of its common shares at an average price of
Cdn$13.55 per share, for a total
consideration of Cdn$0.9 million. The Company did not
purchase any of its common shares during the three-month period
ended September 30, 2016.
As at September 30, 2016, the Company had 31,045,945
common shares outstanding.
Notice of Conference Call
Management of Medical
Facilities will host a conference call today, Thursday,
November 10, 2016 at 8:30 am ET to discuss its
third quarter 2016 financial results. You can join the call by
dialing 647.427.7450 or 1.888.231.8191. A taped replay of the
conference call will be available until Thursday, November
17, 2016 by calling 416.849.0833 or 1.855.859.2056, reference
number 2995612. A live audio webcast of the call will be available
at http://bit.ly/2drm5Hl.
To view Medical Facilities Q3 2016 financial statements and
notes, please click here:
http://files.newswire.ca/940/MFC-Q32016.pdf
About Medical Facilities
Medical Facilities owns
controlling interests in five specialty surgical hospitals located
in Arkansas, Indiana, Oklahoma and South
Dakota, as well as an ambulatory surgery center in
California. The specialty
hospitals perform scheduled surgical, imaging, diagnostic and other
procedures, including primary and urgent care, and derive their
revenue from the fees charged for the use of their facilities. The
ambulatory surgery center specializes in outpatient surgical
procedures, with patient stays of less than 24 hours. In addition,
Medical Facilities owns controlling interest in a diversified
healthcare service company located in Oklahoma City that provides third-party
business solutions to healthcare entities such as physician
practices, facilities, and insurance companies. Medical Facilities
is structured so that a majority of its free cash flow from
operations is distributed to the holders of its common shares in
the form of dividends. For more information, please visit
www.medicalfacilitiescorp.ca.
Caution concerning forward-looking
statements
Statements made in this news release, other
than those concerning historical financial information, may be
forward-looking and therefore subject to various risks and
uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate",
"expect", "intend", or "continue" or the negative thereof or
similar variations. Certain material factors or assumptions are
applied in making forward-looking statements and actual results may
differ materially from those expressed or implied in such
statements. Factors that could cause results to vary include
those identified in Medical Facilities' filings with Canadian
securities regulatory authorities such as legislative or regulatory
developments, intensifying competition, technological change and
general economic conditions. All forward-looking statements
presented herein should be considered in conjunction with such
filings. Medical Facilities does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
SOURCE Medical Facilities Corporation