TORONTO, March 29, 2019 /CNW/ - Akumin Inc. (TSX:
AKU, AKU.U) ("Akumin" or the "Corporation") announced
today its financial results for the quarter and year-ended
December 31, 2018 ("Q4 Fiscal 2018
and Fiscal 2018", respectively).
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
3-month period
ended Dec. 31,
2018
|
3-month period
ended Dec. 31,
2017
|
Year-ended
Dec. 31, 2018
|
15-month
period ended
Dec. 31, 2017
|
Revenue
|
45,452
|
35,238
|
154,782
|
105,473
|
EBITDA
(1)
|
5,137
|
6,142
|
19,304
|
3,476
|
Adjusted EBITDA
(1)
|
9,200
|
8,272
|
31,775
|
16,572
|
EPS
–Diluted
|
0.04
|
0.06
|
0.08
|
(0.27)
|
Adjusted EPS –
Diluted (1)
|
0.05
|
0.07
|
0.20
|
0.09
|
(1)See "Non-IFRS Measures"
below.
|
Commenting on the Q4 Fiscal 2018 and Fiscal 2018 financial
results, Riadh Zine, President and
Chief Executive Officer of the Corporation, said, "The quarter
ending December 31, 2018 represents
another fiscal quarter of solid financial performance with revenue
of $45.5 million and Adjusted
EBITDA of $9.2 million, in line with
management's expectations. If the acquisitions completed during Q4
Fiscal 2018 occurred at the beginning of the quarter, the Adjusted
EBITDA would have been approximately $10
million.
"Akumin's volume in Q4 Fiscal 2018 was approximately 1,020,000
RVUs, compared to approximately 850,000 RVUs in Q3 Fiscal
2018. The Corporation 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.
"The Corporation has experienced significant growth in the
year-ended December 31, 2018 relative
to the 15-month period ended December
31, 2017. Adjusted EBITDA has almost doubled from
$16.6 million to $31.8 million, while diluted Adjusted EPS has
more than doubled from $0.09 to
$0.20."
The Corporation's number of diagnostic imaging facilities as at
December 31, 2018 throughout
the United States was 95, compared
to 74 as at December 31, 2017.
Akumin would like to remind interested parties of the
Corporation's Fiscal 2018 Financial Results Call, to be held today
from 8:30 a.m. to 9:00 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 consolidated
financial statements for 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 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 March 29, 2019 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 and one-time adjustments.
"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 Akumin 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
Dec 31,
2018
|
Three-month
period
ended
Dec 31,
2017
|
Service fees – net of
allowances and discounts
|
44,769
|
34,332
|
Other
revenue
|
683
|
906
|
Revenue
|
45,452
|
35,238
|
|
|
|
Employee
compensation
|
19,266
|
11,354
|
Reading
fees
|
5,764
|
4,598
|
Rent and
utilities
|
4,974
|
3,261
|
Third party services
and professional fees
|
2,594
|
2,798
|
Administrative
|
2,407
|
2,156
|
Medical supplies and
other expenses
|
1,612
|
1,199
|
Depreciation and
amortization
|
3,003
|
2,063
|
Stock-based
compensation
|
1,238
|
570
|
Interest
expense
|
1,778
|
1,398
|
Impairment of property
and equipment
|
4
|
341
|
Settlement costs
(recoveries)
|
14
|
(221)
|
Acquisition related
costs
|
1,506
|
714
|
Public offering
costs
|
-
|
1,021
|
Financial instruments
revaluation, unrealized foreign exchange loss,
and other (gains) losses
|
524
|
(295)
|
Income before
income taxes
|
768
|
4,281
|
Income tax provision
(recovery)
|
(1,854)
|
102
|
Non-controlling
interests
|
412
|
1,600
|
Net income
attributable to shareholders of Akumin
|
2,210
|
2,579
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Dec 31,
2018
|
Three-month
period
ended
Dec 31,
2017
|
Revenue
|
45,452
|
35,238
|
Less:
|
|
|
Employee
compensation
|
19,266
|
11,354
|
Reading
fees
|
5,764
|
4,598
|
Rent and
utilities
|
4,974
|
3,261
|
Third party services
and professional fees
|
2,594
|
2,798
|
Administrative
|
2,407
|
2,156
|
Medical supplies and
other expenses
|
1,612
|
1,199
|
Sub-total
|
36,617
|
25,366
|
Non-controlling
interests
|
412
|
1,600
|
One-time
adjustments
|
(777)
|
-
|
Adjusted
EBITDA
|
9,200
|
8,272
|
Adjusted EBITDA
Margin
|
20%
|
23%
|
(in
thousands)
|
Year
ended
Dec 31, 2018
|
15-month
period
ended
Dec 31, 2017
|
Service fees – net of
allowances and discounts
|
152,013
|
102,217
|
Other
revenue
|
2,769
|
3,256
|
Revenue
|
154,782
|
105,473
|
|
|
|
Employee
compensation
|
57,653
|
38,468
|
Reading
fees
|
20,560
|
15,582
|
Rent and
utilities
|
16,435
|
12,987
|
Third party services
and professional fees
|
11,301
|
8,832
|
Administrative
|
8,768
|
5,576
|
Medical supplies and
other expenses
|
5,716
|
5,101
|
Depreciation and
amortization
|
9,852
|
6,480
|
Stock-based
compensation
|
5,702
|
3,242
|
Interest
expense
|
5,979
|
5,376
|
Impairment of property
and equipment
|
643
|
601
|
Settlement costs
(recoveries)
|
43
|
(192)
|
Provisions
|
-
|
725
|
Acquisition related
costs
|
2,426
|
4,256
|
Public offering
costs
|
814
|
1,520
|
Financial instruments
revaluation, unrealized foreign exchange loss,
and other (gains) losses
|
2,843
|
2,944
|
Income (loss)
before income taxes
|
6,047
|
(6,225)
|
Income tax provision
(recovery)
|
(1,527)
|
124
|
Non-controlling
interests
|
2,574
|
2,155
|
Net income (loss)
attributable to shareholders of Akumin
|
5,000
|
(8,504)
|
Adjusted
EBITDA
(in
thousands)
|
Year
ended
Dec 31, 2018
|
15-month
period
ended
Dec 31, 2017
|
Revenue
|
154,782
|
105,473
|
Less:
|
|
|
Employee
compensation
|
57,653
|
38,468
|
Reading
fees
|
20,560
|
15,582
|
Rent and
utilities
|
16,435
|
12,987
|
Third party services
and professional fees
|
11,301
|
8,832
|
Administrative
|
8,768
|
5,576
|
Medical supplies and
other expenses
|
5,716
|
5,101
|
Sub-total
|
120,433
|
86,746
|
Non-controlling
interests
|
2,574
|
2,155
|
Adjusted
EBITDA
|
31,775
|
16,572
|
Adjusted EBITDA
Margin
|
21%
|
16%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Dec 31, 2018
|
Three-month
period
ended
Dec 31, 2017
|
Year
ended
Dec 31, 2018
|
15-month
period
ended
Dec 31, 2017
|
Net income (loss)
attributable
to shareholders of Akumin
|
2,210
|
2,579
|
5,000
|
(8,504)
|
Income tax provision
(recovery)
|
(1,854)
|
102
|
(1,527)
|
124
|
Depreciation and
amortization
|
3,003
|
2,063
|
9,852
|
6,480
|
Interest
expense
|
1,778
|
1,398
|
5,979
|
5,376
|
EBITDA
|
5,137
|
6,142
|
19,304
|
3,476
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
1,238
|
570
|
5,702
|
3,242
|
Impairment of property
and equipment
|
4
|
341
|
643
|
601
|
Settlement costs
(recoveries)
|
14
|
(221)
|
43
|
(192)
|
Provisions
|
-
|
-
|
-
|
725
|
Acquisition-related
costs
|
1,506
|
714
|
2,426
|
4,256
|
Public offering
costs
|
-
|
1,021
|
814
|
1,520
|
Financial
instruments
revaluation, unrealized
foreign exchange loss, and
other (gains) losses
|
524
|
(295)
|
2,843
|
2,944
|
One-time
adjustments
|
777
|
-
|
-
|
-
|
Adjusted
EBITDA
|
9,200
|
8,272
|
31,775
|
16,572
|
Revenue
|
45,452
|
35,238
|
154,782
|
105,473
|
Adjusted EBITDA
Margin
|
20%
|
23%
|
21%
|
16%
|
|
|
|
|
|
Adjusted
EBITDA
|
9,200
|
8,272
|
31,775
|
16,572
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
3,003
|
2,063
|
9,852
|
6,480
|
Interest
expense
|
1,778
|
1,398
|
5,979
|
5,376
|
Sub-total
|
4,419
|
4,811
|
15,944
|
4,716
|
Effective tax rate
(1)
|
24.7%
|
36.5%
|
24.7%
|
36.5%
|
Tax effect
|
1,091
|
1,756
|
3,938
|
1,721
|
Adjusted net
income
attributable to shareholders of
Akumin
|
3,328
|
3,055
|
12,006
|
2,995
|
|
(1) Effective tax
rate is the U.S. federal and state blended statutory tax rate
estimated for Akumin for the period.
|
SOURCE Akumin Inc.