TORONTO, May 11, 2017 /CNW/ - Medical Facilities
Corporation ("Medical Facilities", or the "Company") (TSX: DR),
today reported its financial results for the three-month period
ended March 31, 2017. All amounts are expressed in U.S.
dollars unless indicated otherwise.
First Quarter 2017 Summary
- Increased revenue by 17.2% to $89.0
million, from $75.9 million in
Q1 2016, due to contributions from acquisitions and increases at
existing facilities
- Surgical cases increased by 10.3%, and revenue per case was up
due to a higher proportion of complex cases
- Income from operations of $13.3
million, compared to $14.8
million in Q1 2016, due to higher depreciation and
amortization costs of $1.7 million
relating to new acquisitions
- Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
- Payout ratio1 of 80.9% as compared with 73.2% in Q1
2016
"We are very pleased with the continued growth in case volume
and revenue, driven by growth from newly acquired centers as well
as organic growth initiatives at existing facilities," said
Britt T. Reynolds, President and CEO
of Medical Facilities. "Our facilities continue to hold leading
positions in their communities by building strong networks and
maintaining solid reputations for the highest-quality care and
optimum patient outcomes."
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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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Financial
Results
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For the three months ended
March 31
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(thousands of U.S.
dollars, except per share amounts and
where otherwise
noted)
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2017
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% change
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2016
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Revenue from
continuing operations
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89,004
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17.2%
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75,945
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Consolidated
operating expenses
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75,684
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23.8%
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61,121
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Income from
operations
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13,320
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(10.1%)
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14,824
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Finance costs (net
interest expense)
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1,586
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115.2%
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737
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Finance costs
(changes in value of derivative
instruments and
gain/loss on foreign currency)
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7,279
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(55.1%)
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16,220
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Income tax expenses
(recovery)
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(284)
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(90.1%)
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(2,863)
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Consolidated income
from continuing operations
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4,739
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549.2%
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730
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Income from
Discontinued Operations
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-
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-
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29
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Attributable
to:
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Owners of the
Corporation
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(516)
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(91.1%)
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(5,786)
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Non-controlling
interest
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5,255
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(19.7%)
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6,545
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Earnings per
share
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Basic
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(0.02)
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89.5%
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(0.19)
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Diluted
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(0.02)
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89.5%
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(0.19)
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Cash available for
distribution (C$)
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10,795
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(9.6%)
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11,937
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Distributions
(C$)
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8,732
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0.0%
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8,734
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Cash available for
distribution per common share (C$)
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0.35
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(7.9%)
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0.38
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Distributions per
common share (C$)
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0.28
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0.0%
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0.28
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Payout
ratio
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80.9%
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770 bps
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73.2%
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As at March 31, 2017, the Company
had consolidated net working capital of $71.1 million, including cash and cash
equivalents and short-term investments of $60.6 million and accounts receivable of
$50.2 million, compared with net
working capital of $74.0 million,
including cash and cash equivalents and short-term and long-term
investments of $67.6 million, and
accounts receivable of $61.1 million,
as at December 31, 2016. Long-term
debt at the Centers' level, including the current portion, was
$70.7 million and the corporate
credit facility was $47.8 million as
at March 31, 2017 compared with
$76.9 million of total long-term debt
at the Centers' level and the corporate credit facility of
$47.8 million as at December 31, 2016.
Medical Facilities' complete first quarter 2017 financial
statements and management's discussion and analysis will be issued
and filed on SEDAR at www.sedar.com on Thursday, May
11, 2017 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 three
months ended March 31, 2017, the Company did not purchase any
of its common shares.
As at March 31, 2017, the Company had 31,045,945
common shares outstanding.
Notice of Conference Call
Management of Medical
Facilities will host a conference call today, Thursday,
May 11, 2017 at 8:30 am ET to discuss its first
quarter 2017 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, March 30, 2017 by
calling 416.849.0833 or 1.855.859.2056, reference number 10555985.
A live audio webcast of the call will be available at
http://bit.ly/2pecZDx.
To view Medical Facilities Q1 2017 financial statements and
notes, please click here:
http://files.newswire.ca/940/MFC0511.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