TORONTO, Nov. 14, 2018 /CNW/ - Akumin Inc. (TSX: AKU,
AKU.U) ("Akumin" or the "Corporation") announced
today its financial results for the quarter ended September 30, 2018 ("Q3 Fiscal 2018").
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
|
|
|
|
|
3-month
period
ended Sep.
30,
2018
|
3-month
period
ended Sep.
30,
2017
|
9-month
period
ended Sep.
30,
2018
|
9-month
period
ended Sep.
30,
2017
|
Revenue
|
39,131
|
24,107
|
109,331
|
55,581
|
|
|
|
|
|
EBITDA
(1)
|
4,278
|
(7,073)
|
14,168
|
(4,064)
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
8,285
|
2,184
|
23,353
|
6,603
|
|
|
|
|
|
EPS
–Diluted
|
0.00
|
(0.29)
|
0.05
|
(0.35)
|
|
|
|
|
|
Adjusted EPS –
Diluted (1)
|
0.05
|
(0.01)
|
0.16
|
(0.00)
|
|
|
|
|
|
(1)
See "Non-IFRS Measures" below.
|
Commenting on the Q3 Fiscal 2018 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "The quarter ending September 30, 2018 represents another fiscal
quarter of strong financial performance with revenue of
$39.1 million, Adjusted EBITDA
of $8.3 million and Adjusted EPS –
Diluted of $0.05, all of which are in
line with management's expectations given seasonal impact on this
quarter. The net income of the quarter was impacted by a
$2.4 million non-cash expense
resulting from the extinguishment of our previous credit facility,
which was refinanced during the quarter.
"As of this quarter, we commenced reporting Adjusted EPS and
other financial measures to help, when taken together with IFRS
measures, assess the Company's overall financial performance in
terms of scale, profitability and return on capital, as outlined in
our management's discussion and analysis.
"Akumin's volume in Q3 Fiscal 2018 was approximately 850,000
RVUs, compared to approximately 756,000 RVUs in Q2 Fiscal
2018. The Company reports the volume of procedures performed
in its diagnostic imaging centers based on relative-value units, or
RVUs, instead of the number of procedures. RVUs are a
standardized measure of value used in the U.S. Medicare
reimbursement formula for physician services.
"During Q3 Fiscal 2018, on August 15,
2018, we closed the acquisition of Rose Radiology Centers,
adding 11 Tampa-area centers, which we expect will add
approximately $27.5 million in
annual revenue. After Q3 Fiscal 2018, on November 12, 2018, we announced the closing of
two separate acquisitions in Florida for a total of five diagnostic
centers, which we expect to add on a combined basis approximately
$19.2 million in annual
revenue. We look forward to integrating these recently
acquired centers and continuing to execute on our growth
strategy."
The Corporation's current number of diagnostic imaging
facilities throughout the United
States is 95, compared to 74 as at December 31, 2017.
Akumin would like to remind interested parties of the
Corporation's Q3 Fiscal 2018 Financial Results Call, to be
held today at 8:30 a.m. Eastern Time.
To access the conference call, dial toll-free in Canada or the U.S. 888-231-8191 or, for
international callers, 647-427-7450. Participants are asked
to connect at least 10 minutes prior to the beginning of the call
to ensure participation.
Unless otherwise indicated, all amounts are expressed in U.S.
dollars. Certain metrics, including those expressed on an adjusted
or comparable basis, are non-IFRS measures. See "Non-IFRS Measures"
and "Selected Consolidated Financial Information" of this press
release for further details. The Corporation's condensed
interim consolidated financial statements for Q3 Fiscal 2018 and
related management's discussion and analysis are available under
Akumin's profile on SEDAR (www.sedar.com).
About Akumin
Akumin is a leading provider of freestanding, fixed-site
outpatient diagnostic imaging services in the United States with a network of 95 owned
and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, Illinois and Kansas. By combining our clinical expertise
with the latest advances in technology and information systems, our
centers provide physicians with imaging capabilities to facilitate
the diagnosis and treatment of diseases and disorders and may
reduce unnecessary invasive procedures, minimizing the cost and
amount of care for patients. Our imaging procedures include MRI,
CT, positron emission tomography (PET), ultrasound, diagnostic
radiology (X-ray), mammography, and other interventional
procedures.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures.
These non-IFRS measures are not recognized measures under the
International Financial Reporting Standards ("IFRS") and do
not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these non-IFRS measures are provided as
additional information to complement those IFRS measures by
providing further understanding of our results of operations from
management's perspective. Accordingly, these non-IFRS measures
should not be considered in isolation nor as a substitute for
analysis of our financial information reported under IFRS. We use
non-IFRS financial measures, including "EBITDA", "Adjusted EBITDA",
"Adjusted EBITDA Margin" and "Adjusted net income (loss)
attributable to shareholders of Akumin". These non-IFRS measures
are used to provide investors with supplemental measures of our
operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors
and other interested parties frequently use non-IFRS measures in
the evaluation of issuers. Our management uses non-IFRS measures in
order to facilitate operating performance comparisons from period
to period, to prepare annual operating budgets and forecasts, and
to determine components of management compensation. Definitions and
reconciliations of non-IFRS measures to the relevant reported
measures can be found in our Management's Discussion and Analysis
dated November 13, 2018 available at
www.sedar.com.
We define such non-IFRS measures as follows:
"EBITDA" means net income (loss) attributable to
shareholders of the Corporation before interest expense (net),
income tax expense (recovery) and depreciation and
amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for
stock-based compensation, impairment of property and equipment,
provisions for certain credit losses, settlement costs, provisions,
acquisition-related and public offering costs, and gains (losses)
in the period.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by
the revenue in the period.
"Adjusted net income (loss) attributable to shareholders of
Akumin" means Adjusted EBITDA less depreciation and
amortization and interest expense, taxed at Akumin's estimated
effective tax rate, which is a blend of U.S. federal and state
statutory tax rates for the period.
Forward-Looking Information
Certain information in this press release constitutes
forward-looking information. In some cases, but not necessarily in
all cases, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "targets",
"expects" or "does not expect", "is expected", "an opportunity
exists", "is positioned", "estimates", "intends", "assumes",
"anticipates" or "does not anticipate" or "believes", or variations
of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might", "will" or "will be
taken", "occur" or "be achieved". In addition, any statements that
refer to expectations, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by Akumin as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of our Annual Information Form dated
March 29, 2018, which is available at
www.sedar.com. These factors are not intended to represent a
complete list of the factors that could affect Akumin; however,
these factors should be considered carefully. There can be no
assurance that such estimates and assumptions will prove to be
correct. The forward-looking statements contained in this press
release are made as of the date of this press release, and Akumin
expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
< Financial tables follow. >
Selected Consolidated Financial Information
(in
thousands)
|
Three-month
period
ended
Sep 30, 2018
|
Three-month
period
ended
Sep 30, 2017
|
Service fees – net of
allowances and discounts
|
38,317
|
23,489
|
Other
revenue
|
814
|
618
|
Revenue
|
39,131
|
24,107
|
|
|
|
Employee
compensation
|
14,734
|
9,529
|
Reading
fees
|
5,143
|
3,994
|
Rent and
utilities
|
4,292
|
3,019
|
Third party services
and professional fees
|
3,004
|
2,339
|
Administrative
|
1,779
|
1,391
|
Medical supplies and
other expenses
|
1,383
|
1,096
|
Depreciation and
amortization
|
2,577
|
1,623
|
Stock-based
compensation
|
1,424
|
1,981
|
Interest
expense
|
1,482
|
1,291
|
Impairment of property
and equipment
|
-
|
130
|
Settlement costs
(recoveries)
|
(99)
|
21
|
Provisions
|
-
|
(30)
|
Acquisition related
costs
|
256
|
3,413
|
Public offering
costs
|
-
|
499
|
Financial instruments
revaluation, unrealized foreign exchange loss,
and other (gains) losses
|
2,426
|
3,243
|
Income (loss)
before income taxes
|
730
|
(9,432)
|
Income tax
provision
|
24
|
2
|
Non-controlling
interests
|
511
|
555
|
Net income (loss)
attributable to shareholders of Akumin
|
195
|
(9,989)
|
|
|
|
|
|
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Sep 30, 2018
|
Three-month
period
ended
Sep 30, 2017
|
Revenue
|
39,131
|
24,107
|
Less:
|
|
|
Employee
compensation
|
14,734
|
9,529
|
Reading
fees
|
5,143
|
3,994
|
Rent and
utilities
|
4,292
|
3,019
|
Third party services
and professional fees
|
3,004
|
2,339
|
Administrative
|
1,779
|
1,391
|
Medical supplies and
other expenses
|
1,383
|
1,096
|
Sub-total
|
30,335
|
21,368
|
Non-controlling
interests
|
511
|
555
|
Adjusted
EBITDA
|
8,285
|
2,184
|
Adjusted EBITDA
Margin
|
21%
|
9%
|
|
|
|
|
|
|
(in
thousands)
|
Nine-month
period
ended
Sep 30,
2018
|
Nine-month
period
ended
Sep 30,
2017
|
Service fees – net of
allowances and discounts
|
107,244
|
54,139
|
Other
revenue
|
2,087
|
1,442
|
Revenue
|
109,331
|
55,581
|
|
|
|
Employee
compensation
|
38,387
|
21,440
|
Reading
fees
|
14,796
|
8,745
|
Rent and
utilities
|
11,461
|
7,689
|
Third party services
and professional fees
|
8,706
|
4,569
|
Administrative
|
6,361
|
2,942
|
Medical supplies and
other expenses
|
4,105
|
3,038
|
Depreciation and
amortization
|
6,849
|
3,564
|
Stock-based
compensation
|
4,465
|
2,442
|
Interest
expense
|
4,201
|
3,102
|
Impairment of property
and equipment
|
638
|
130
|
Settlement
costs
|
29
|
30
|
Provisions
|
-
|
700
|
Acquisition related
costs
|
920
|
3,542
|
Public offering
costs
|
814
|
499
|
Financial instruments
revaluation, unrealized foreign exchange loss,
and other (gains) losses
|
2,319
|
3,324
|
Income (loss)
before income taxes
|
5,280
|
(10,175)
|
Income tax
provision
|
327
|
12
|
Non-controlling
interests
|
2,162
|
555
|
Net income (loss)
attributable to shareholders of Akumin
|
2,791
|
(10,742)
|
|
|
|
|
|
|
Adjusted
EBITDA
(in
thousands)
|
Nine-month
period
ended
Sep 30,
2018
|
Nine-month
period
ended
Sep 30,
2017
|
Revenue
|
109,331
|
55,581
|
Less:
|
|
|
Employee
compensation
|
38,387
|
21,440
|
Reading
fees
|
14,796
|
8,745
|
Rent and
utilities
|
11,461
|
7,689
|
Third party services
and professional fees
|
8,706
|
4,569
|
Administrative
|
6,361
|
2,942
|
Medical supplies and
other expenses
|
4,105
|
3,038
|
Sub-total
|
83,816
|
48,423
|
Non-controlling
interests
|
2,162
|
555
|
Adjusted
EBITDA
|
23,353
|
6,603
|
Adjusted EBITDA
Margin
|
21%
|
12%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Sep 30, 2018
|
Three-month
period
ended
Sep 30, 2017
|
Nine-month
period
ended
Sep 30, 2018
|
Nine-month
period
ended
Sep 30, 2017
|
Net income (loss)
attributable
to shareholders of Akumin
|
195
|
(9,989)
|
2,791
|
(10,742)
|
Income tax
provision
|
24
|
2
|
327
|
12
|
Depreciation and
amortization
|
2,577
|
1,623
|
6,849
|
3,564
|
Interest
expense
|
1,482
|
1,291
|
4,201
|
3,102
|
EBITDA
|
4,278
|
(7,073)
|
14,168
|
(4,064)
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
1,424
|
1,981
|
4,465
|
2,442
|
Impairment of property
and equipment
|
-
|
130
|
638
|
130
|
Settlement costs
(recoveries)
|
(99)
|
21
|
29
|
30
|
Provisions
|
-
|
(30)
|
-
|
700
|
Acquisition-related
costs
|
256
|
3,413
|
920
|
3,542
|
Public offering
costs
|
-
|
499
|
814
|
499
|
Financial instruments
revaluation, unrealized foreign exchange loss, and other (gains)
losses
|
2,426
|
3,243
|
2,319
|
3,324
|
Adjusted
EBITDA
|
8,285
|
2,184
|
23,353
|
6,603
|
Revenue
|
39,131
|
24,107
|
109,331
|
55,581
|
Adjusted EBITDA
Margin
|
21%
|
9%
|
21%
|
12%
|
|
|
|
|
|
Adjusted
EBITDA
|
8,285
|
2,184
|
23,353
|
6,603
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
2,577
|
1,623
|
6,849
|
3,564
|
Interest
expense
|
1,482
|
1,291
|
4,201
|
3,102
|
Sub-total
|
4,226
|
(730)
|
12,303
|
(63)
|
Effective tax rate
(1)
|
24.7%
|
36.5%
|
24.7%
|
36.5%
|
Tax effect
|
1,043
|
(266)
|
3,038
|
(23)
|
Adjusted net
income (loss) attributable to shareholders
of Akumin
|
3,183
|
(464)
|
9,265
|
(40)
|
|
|
|
|
|
EPS – Basic and
diluted
|
0.00
|
(0.29)
|
0.05
|
(0.35)
|
Adjusted EPS –
Basic and
diluted
|
0.05
|
(0.01)
|
0.16
|
(0.00)
|
(1) Akumin's
estimated effective tax rate is a blend of U.S. federal and state
statutory tax rates for the period.
|
SOURCE Akumin Inc.