HOUSTON, May 2, 2017 /CNW/
-- Nobilis Health Corp. (NYSE MKT: HLTH) ("Nobilis" or the
"Company") today announced financial results for the first quarter
ended March 31, 2017.
First Quarter Highlights
- Revenue was $68.3 million, a
33.2% increase compared to the same quarter last year
- Net loss was $2.4 million,
compared to net loss of $5.0 million
in the same quarter last year
- Adjusted EBITDA1 was $2.0
million, a 473.5% increase compared to the same quarter last
year
- Board authorizes share repurchase program
"I am pleased to report strong financial and operating results
for the first quarter of 2017. These results reflect the
significant progress we have made to date to reduce costs and
better align our resources," said Harry
Fleming, Chief Executive Officer of Nobilis Health. "In the
first quarter, we were better able to leverage facility operating
expenses, and we managed to decrease total corporate costs on an
absolute dollar basis, year over year. Specifically, total revenue
grew by 33% while total expenses increased by only 17%. These cost
reductions will allow us to operate more efficiently as we continue
to grow our organic revenue and ancillary services. We continue to
identify other cost saving opportunities which we plan to implement
going forward."
"Also, in the first quarter we announced and completed the
acquisition of Hamilton Vein Center. This acquisition
provides us two new markets in Texas and increases our in-network patient
revenue. Our growing portfolio of facilities and services
continues to provide patients with the highest level of treatment
and care available by our physician partners and staff. These
results keep us fully on track to deliver the full year 2017
financial guidance we originally provided in March of this
year."
First Quarter 2017 Financial Results
Total revenue for the first quarter of 2017 increased to
$68.3 million, a 33.2% increase over
the same period the prior year. Total case volume increased by 457
cases, or 11.5%, to 4,431 cases in the first quarter of 2017, as
compared to the same period last year. Revenue per case increased
to $15,415 or 19.5% in the first
quarter of 2017, as compared to $12,902 in the same period last year. This
increase was due to the growth of our Hospital and Ancillary
divisions. The increase in total revenue and total case
volume in the first quarter of 2017 compared to the same quarter
last year was primarily due to organic growth.
Net loss attributable to Nobilis for the first quarter of 2017
was $2.4 million, or $0.03 per fully diluted share, as compared to net
loss attributable to Nobilis of $5.0
million, or $0.07 per fully
diluted share, in the first quarter of 2016. Net loss in the
first quarter of 2017 included a $0.4
million change in fair value of warrants and stock
options.
Adjusted EBITDA1 for the first quarter of 2017, which
adds back certain non-cash and non-recurring expenses, was
$2.0 million, an increase of 473.5%
over $0.4 million in the same quarter
last year.
Total cash was $31.2 million,
accounts receivable was $102.7
million and total debt was $74.8
million as of March 31, 2017, compared to $24.6 million, $125.0
million and $67.8 million,
respectively, at December 31, 2016.
The Board of Directors recently approved a share repurchase
program under which the Company may repurchase up to 5% of shares
outstanding, or approximately 4 million shares, subject to any
applicable rules and regulations and/or banking requirements.
Full Year 2017 Guidance
Nobilis reiterates the full year 2017 guidance originally
provided on March 13, 2017.
- Revenue in the range of $310.0 million
to $325.0 million.
- Adjusted EBITDA1 of $40.0
million to $45.0 million.
Conference Call Information
Nobilis will host a conference call today, Tuesday, May 2, 2017, at 8:00 a.m.
CDT (9:00 a.m. EDT) to discuss
its financial results for the first quarter of 2017. To participate
in the conference call, please dial (866)
393-4306 in the U.S. and Canada, and +1 (734)
385-2616 internationally. Please enter conference ID
15328975. There will be a livestream of the conference call
available
at: http://investors.nobilishealth.com/investors/events-and-presentations/.
About Nobilis Health Corp.
Nobilis (www.NobilisHealth.com) is a full-service healthcare
development and management company, with 25 locations across
Texas and Arizona, including 4 hospitals, 10 ASCs and 11
clinics. In addition, Nobilis partners with an additional 38
facilities across the country. Marketing nine independent brands,
Nobilis deploys a unique patient acquisition strategy driven by
proprietary direct-to-consumer marketing technology, focusing on a
specified set of procedures that are performed at our centers by
local physicians.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of Canadian and United
States securities laws, including the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts and may be identified by the use of
words such as "may," "believe," "will," "expect," "project,"
"estimate," "anticipate," "plan" or "continue." These
forward-looking statements are based on current plans and
expectations and are subject to a number of risks, uncertainties
and other factors which could significantly affect current plans
and expectations and our future financial condition and results.
These factors, which could cause actual results, performance and
achievements to differ materially from those anticipated, include,
but are not limited to our ability to successfully maintain
effective internal controls over financial reporting; our ability
to implement our business strategy, manage the growth in our
business, and integrate acquired businesses; the risk of litigation
and investigations, and liability claims for damages and other
expenses not covered by insurance; the risk that payments from
third-party payers, including government healthcare programs, may
decrease or not increase as costs increase; adverse developments
affecting the medical practices of our physician limited partners;
our ability to maintain favorable relations with our physician
limited partners; our ability to grow revenues by increasing case
and procedure volume while maintaining profitability at the Nobilis
Facilities; failure to timely or accurately bill for services; our
ability to compete for physician partners, patients and strategic
relationships; the risk of changes in patient volume and patient
mix; the risk that laws and regulations that regulate payments for
medical services made by government healthcare programs could cause
our revenues to decrease; the risk that contracts are canceled or
not renewed or that we are not able to enter into additional
contracts under terms that are acceptable to us; and the risk of
potential decreases in our reimbursement rates. The foregoing are
significant factors we think could cause our actual results to
differ materially from expected results. However, there could be
additional factors besides those listed herein that also could
affect us in an adverse manner.
We have not undertaken any obligation to publicly update or
revise any forward-looking statements. All of our forward-looking
statements speak only as of the date of the document in which they
are made or, if a date is specified, as of such date. Subject to
any mandatory requirements of applicable law, we disclaim any
obligation or undertaking to provide any updates or revisions to
any forward-looking statement to reflect any change in our
expectations or any changes in events, conditions, circumstances or
information on which the forward-looking statement is based. All
subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the foregoing factors and in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2016, filed
on March 14, 2017, as updated by
other filings with the Securities and Exchange Commission.
Nobilis Health
Corp.
Consolidated Balance Sheets
March 31, 2017 and December 31, 2016
(in thousands, except share amounts)
(unaudited)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
Current
Assets:
|
|
|
|
Cash
|
$
|
31,166
|
|
|
$
|
24,572
|
|
Trade accounts
receivable, net of allowance of $750 at March 31, 2017 and December
31, 2016
|
102,732
|
|
|
124,951
|
|
Medical
supplies
|
3,961
|
|
|
4,468
|
|
Prepaid expenses and
other current assets
|
12,798
|
|
|
10,082
|
|
Total current
assets
|
150,657
|
|
|
164,073
|
|
Property and
equipment, net
|
40,525
|
|
|
36,723
|
|
Intangible assets,
net
|
19,260
|
|
|
19,618
|
|
Goodwill
|
72,847
|
|
|
62,019
|
|
Deferred tax
asset
|
23,483
|
|
|
21,652
|
|
Other long-term
assets
|
1,389
|
|
|
1,350
|
|
Total
Assets
|
$
|
308,161
|
|
|
$
|
305,435
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade accounts
payable
|
$
|
17,391
|
|
|
$
|
22,184
|
|
Accrued
liabilities
|
31,250
|
|
|
30,145
|
|
Current portion of
capital leases
|
3,960
|
|
|
3,985
|
|
Current portion of
long-term debt
|
2,127
|
|
|
2,220
|
|
Current portion of
convertible promissory note
|
2,500
|
|
|
—
|
|
Current portion of
warrant and stock option derivative liabilities
|
—
|
|
|
3
|
|
Other current
liabilities
|
8,754
|
|
|
7,561
|
|
Total current
liabilities
|
65,982
|
|
|
66,098
|
|
Lines of
credit
|
18,000
|
|
|
15,000
|
|
Long-term capital
leases, net of current portion
|
13,293
|
|
|
12,387
|
|
Long-term debt, net
of current portion
|
47,403
|
|
|
48,323
|
|
Convertible
promissory note, net of current portion
|
4,750
|
|
|
2,250
|
|
Warrant and stock
option derivative liabilities, net of current portion
|
591
|
|
|
899
|
|
Other long-term
liabilities
|
3,863
|
|
|
3,999
|
|
Total
liabilities
|
153,882
|
|
|
148,956
|
|
Commitments and
Contingencies
|
|
|
|
Contingently
redeemable noncontrolling interest
|
14,287
|
|
|
14,304
|
|
Shareholder's
Equity:
|
|
|
|
Common shares, no par
value, unlimited shares authorized, 77,805,014 shares issued and
outstanding at March 31, 2017 and December 31, 2016
|
|
|
|
Additional paid in
capital
|
223,443
|
|
|
222,240
|
|
Accumulated
deficit
|
(81,440)
|
|
|
(79,042)
|
|
Total shareholders'
equity attributable to Nobilis Health Corp.
|
142,003
|
|
|
143,198
|
|
Noncontrolling
interests
|
(2,011)
|
|
|
(1,023)
|
|
Total shareholders'
equity
|
139,992
|
|
|
142,175
|
|
Total Liabilities and
Shareholders' Equity
|
$
|
308,161
|
|
|
$
|
305,435
|
|
Nobilis Health
Corp.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
Patient
and net professional fees
|
$
|
64,901
|
|
|
$
|
46,357
|
|
Contracted marketing revenues
|
1,379
|
|
|
3,482
|
|
Factoring revenues
|
2,022
|
|
|
1,434
|
|
Total revenues
|
68,302
|
|
|
51,273
|
|
Operating
expenses:
|
|
|
|
Salaries
and benefits
|
15,321
|
|
|
12,577
|
|
Drugs
and supplies
|
12,744
|
|
|
12,020
|
|
General
and administrative
|
33,688
|
|
|
25,009
|
|
Depreciation and amortization
|
2,338
|
|
|
2,529
|
|
Total operating expenses
|
64,091
|
|
|
52,135
|
|
Corporate
expenses:
|
|
|
|
Salaries
and benefits
|
2,439
|
|
|
1,282
|
|
General
and administrative
|
4,253
|
|
|
5,911
|
|
Legal
expenses
|
571
|
|
|
1,585
|
|
Depreciation
|
83
|
|
|
54
|
|
Total corporate expenses
|
7,346
|
|
|
8,832
|
|
Loss from operations
|
(3,135)
|
|
|
(9,694)
|
|
Other (income)
expense:
|
|
|
|
Change
in fair value of warrant and stock
option
derivative liabilities
|
(375)
|
|
|
(42)
|
|
Interest
expense
|
1,255
|
|
|
684
|
|
Other
income, net
|
(258)
|
|
|
(1,654)
|
|
Total other (income) expense
|
622
|
|
|
(1,012)
|
|
Loss before income
taxes and noncontrolling interests
|
(3,757)
|
|
|
(8,682)
|
|
Income tax benefit,
net
|
(1,551)
|
|
|
(1,918)
|
|
Net loss
|
(2,206)
|
|
|
(6,764)
|
|
Net income (loss)
attributable to noncontrolling interests
|
192
|
|
|
(1,799)
|
|
Net loss attributable
to Nobilis Health Corp.
|
$
|
(2,398)
|
|
|
$
|
(4,965)
|
|
Net loss per basic
common share
|
$
|
(0.03)
|
|
|
$
|
(0.07)
|
|
Net loss per fully
diluted common share
|
$
|
(0.03)
|
|
|
$
|
(0.07)
|
|
Weighted average
shares outstanding (basic)
|
77,805,014
|
|
|
74,806,441
|
|
Weighted average
shares outstanding (fully diluted)
|
77,805,014
|
|
|
74,806,441
|
|
Nobilis Health
Corp.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net
loss
|
$
|
(2,206)
|
|
|
$
|
(6,764)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation
and amortization
|
2,421
|
|
|
2,583
|
|
Share-based
compensation
|
1,264
|
|
|
1,836
|
|
Change in fair
value of warrant and stock option derivative liabilities
|
(375)
|
|
|
(42)
|
|
Deferred income
taxes
|
(1,831)
|
|
|
(2,158)
|
|
Gain on sale of
property and equipment
|
—
|
|
|
(265)
|
|
Loss (earnings)
from equity method investment
|
61
|
|
|
(689)
|
|
Amortization of
deferred financing fees
|
109
|
|
|
33
|
|
Changes in
operating assets and liabilities, net of assets acquired and
liabilities assumed:
|
|
|
|
Trade accounts receivable
|
22,966
|
|
|
18,341
|
|
Medical supplies
|
802
|
|
|
596
|
|
Prepaid expenses and other current assets
|
(2,514)
|
|
|
(2,111)
|
|
Other long-term assets
|
—
|
|
|
4
|
|
Trade accounts payable and accrued liabilities
|
(5,170)
|
|
|
(7,775)
|
|
Other current liabilities
|
1,194
|
|
|
300
|
|
Other long-term liabilities
|
(189)
|
|
|
102
|
|
Distributions from equity method investments
|
—
|
|
|
471
|
|
Net cash provided by operating activities
|
16,532
|
|
|
4,462
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchase of
property and equipment
|
(3,506)
|
|
|
(1,525)
|
|
Investment in
associate
|
—
|
|
|
150
|
|
Purchase of
equity method investment
|
—
|
|
|
(609)
|
|
Acquisition of
Hamilton Vein, net of cash acquired
|
(7,883)
|
|
|
—
|
|
Net cash used for investing activities
|
(11,389)
|
|
|
(1,984)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Distributions
to noncontrolling interests
|
(1,200)
|
|
|
(2,958)
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
1,853
|
|
Payments on
capital lease obligations
|
773
|
|
|
(1,038)
|
|
Proceeds from
line of credit
|
3,000
|
|
|
500
|
|
Payments on
debt
|
(656)
|
|
|
(277)
|
|
Deferred
financing fees
|
(466)
|
|
|
—
|
|
Net cash provided by (used for) financing
activities
|
1,451
|
|
|
(1,920)
|
|
|
|
|
|
NET INCREASE IN
CASH
|
6,594
|
|
|
558
|
|
CASH — Beginning of
period
|
24,572
|
|
|
15,666
|
|
CASH — End of
period
|
$
|
31,166
|
|
|
$
|
16,224
|
|
Nobilis Health
Corp.
Reconciliation of
Non-GAAP Financial Measures
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2,016
|
|
|
|
|
|
Net income (loss)
attributable to Nobilis Health Corp.
|
|
$
|
(2,398)
|
|
|
$
|
(4,965)
|
|
Interest
|
|
1,255
|
|
|
684
|
|
Income tax benefit,
net
|
|
(1,551)
|
|
|
(1,918)
|
|
Depreciation and
amortization
|
|
2,421
|
|
|
2,583
|
|
EBITDA
|
|
$
|
(273)
|
|
|
$
|
(3,616)
|
|
|
|
|
|
|
Non-cash compensation
expenses
|
|
$
|
1,264
|
|
|
$
|
1,836
|
|
Change in fair value
of warrant and stock option derivative liabilities
|
|
(375)
|
|
|
(42)
|
|
Acquisition
expenses
|
|
634
|
|
|
364
|
|
Non-recurring
expenses
|
|
763
|
|
|
1,809
|
|
Adjusted
EBITDA1
|
|
$
|
2,013
|
|
|
$
|
351
|
|
1 Use of
Non-GAAP Financial Measures
|
Adjusted EBITDA is defined as earnings before interest,
income taxes, depreciation and amortization, non-cash compensation
expenses, change in fair value of warrant and stock option
derivative liabilities, acquisition expenses, and non-recurring
expenses. Adjusted EBITDA should not be considered a measure of
financial performance required by accounting principles generally
accepted in the United States of
America ("U.S. GAAP"). Items excluded from Adjusted EBITDA
are significant components in understanding and assessing financial
performance. Adjusted EBITDA is an analytical indicator used by
management and the health care industry to evaluate company
performance, allocate resources and measure leverage and debt
service capacity. Adjusted EBITDA should not be considered in
isolation or as an alternative to net income, cash flows generated
by operations, investing or financing activities, or other
financial statement data presented in the consolidated financial
statements as indicators of financial performance or liquidity.
Because Adjusted EBITDA is not a measurement determined in
accordance with U.S. GAAP and is thus susceptible to varying
calculations, Adjusted EBITDA as presented may not be comparable to
other similarly titled measures of other companies.
Contact Information:
Tuan
Tran
Vice President, Investor Relations
IR@nobilishealth.com
281-925-0950
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nobilis-health-reports-first-quarter-2017-financial-results-300449265.html
SOURCE Nobilis Health Corp.