TORONTO, Aug. 10, 2017 /CNW/ - Medical Facilities
Corporation ("Medical Facilities," "MFC," or the "Company") (TSX:
DR), today reported its financial results for the three and six
month period ended June 30, 2017. All amounts are
expressed in U.S. dollars unless indicated otherwise.
Second Quarter 2017 Summary
- Increased revenue by 25.2% to $96.1
million, from $76.7 million in
Q2 2016, due to contributions from acquisitions and increases at
existing facilities
- Surgical cases increased by 14.9%, and revenue per case was up
due to a higher proportion of complex cases
- Increased EBITDA1 by 22.2% to $23.1 million from $18.9
million in Q2 2016
- Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
- Payout ratio1 of 72.4% as compared with 82.8% in Q2
2016
"The second quarter of 2017 showed growth across all key metrics
and demonstrated the positive impact of initiatives made in the
past year," said Jeffrey C. Lozon,
Interim CEO of Medical Facilities. "The new orthopedic team that
joined Sioux Falls Surgical Hospital with the acquisition of
Prairie States Surgical Center has added meaningful case volume.
New surgeons have also recently joined Unity Medical and Surgical
Hospital, driving case growth at that facility. In addition, we
continue to see healthy growth at our same store facilities. We
anticipate that we will continue to generate positive results for
the second half of 2017 as we continue to focus on achieving both
organic and acquisition growth targets."
As at June 30, 2017, the Company
had consolidated net working capital of $72.8 million, including cash and cash
equivalents and short-term investments of $56.7 million and accounts receivable of
$51.7 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
$70.2 million and the corporate
credit facility was $47.8 million as
at June 30, 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 second quarter 2017 financial
statements and management's discussion and analysis will be issued
and filed on SEDAR at www.sedar.com on Thursday, August
10, 2017 and will be available on the same day on Medical
Facilities' website at www.medicalfacilitiescorp.ca.
Notice of Conference Call
Management of Medical
Facilities will host a conference call today, Thursday,
August 10, 2017 at 8:30 am ET to discuss its
second 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, August,
17, 2017 by calling 416.849.0833 or 1.855.859.2056, reference
number 60179938. A live audio webcast of the call will be available
at http://bit.ly/2tUN0idhttp://bit.ly/2drm5Hl.
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1 EBITDA,
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
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For the six months
ended
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June
30
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June
30
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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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2017
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% change
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2016
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Facility service
revenue
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96,085
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25.2%
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76,728
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185,089
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21.2%
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152,673
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Consolidated
operating expenses
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79,892
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26.9%
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62,963
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155,576
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25.4%
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124,084
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Income from
operations
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16,193
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17.6%
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13,765
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29,513
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3.2%
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28,589
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Finance costs (net of
interest expense)
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1,483
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113.1%
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696
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3,068
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114.1%
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1,433
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Finance costs
(changes in values of
derivative instruments and gain/loss
on
foreign currency)
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(14,105)
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17,430
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(6,825)
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33,650
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Income tax expenses
(recovery)
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6,691
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234.2%
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(4,986)
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6,407
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181.6%
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(7,849)
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Consolidated income
from operations
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22,124
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3,434.2%
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625
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26,863
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1,882.5%
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1,355
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Attributable
to:
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Owners of the
Corporation
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14,168
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347.8%
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(5,718)
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13,652
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218.5%
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(11,523)
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Non-controlling
interest
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7,956
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25.4%
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6,343
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13,211
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2.6%
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12,878
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Earnings per
share
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Basic
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0.46
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(0.18)
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0.44
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(0.37)
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Diluted
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0.18
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(0.18)
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0.44
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(0.37)
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Cash available for
distribution (C$)
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12,068
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14.5%
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10,544
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22,534
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0.4%
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22,447
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Distributions
(C$)
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8,732
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0.0%
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8,732
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17,463
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0.0%
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17,465
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Cash available for
distribution per common share (C$)
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0.39
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14.7%
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0.34
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0.73
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1.4%
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0.72
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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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0.56
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0.56
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Payout
ratio
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72.4%
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(12.6%)
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82.8%
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77.5%
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(0.4%)
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77.8%
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Reconciliation of
Consolidated Income from
Operations to
EBITDA
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Consolidated income
from operations
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22,124
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625
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26,863
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1,355
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Income tax expenses
(recovery)
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6,691
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(4,986)
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6,407
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(7,849)
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Finance
costs
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(12,622)
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18,126
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(3,757)
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35,083
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Depreciation and
amortization
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6,924
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5,159
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13,707
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10,230
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EBITDA
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23,117
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22.2%
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18,924
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43,220
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11.3%
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38,819
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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 six
months ended June 30, 2017, the Company purchased 60,000
of its common shares for $0.7
million.
As at June 30, 2017, the Company had 30,985,945 common
shares outstanding.
To view Medical Facilities Q2 2017 financial statements and
notes, please click here:
http://files.newswire.ca/940/MFC_Q2_2017.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