TORONTO, May 10, 2018 /CNW/ - Medical Facilities
Corporation ("Medical Facilities," "MFC," or the "Company") (TSX:
DR), reported its financial results today for the three-month
period ended March 31, 2018. All amounts are expressed in
U.S. dollars unless indicated otherwise.
Q1 2018 Summary
(compared to three months ended
March 31, 2017)
- On February 1, 2018, the Company
completed the acquisition of a controlling interest in seven
ambulatory surgery centers ("MFC Nueterra ASCs") for $46.5 million, in partnership with NueHealth,
LLC
- Revenue increased by 9.7% to $97.6
million from $89.0
million
- Surgical cases increased by 29.1%
- Income from operations increased by 6.0% to $14.1 million from $13.3
million
- EBITDA1 was flat year-over-year at $20.1 million
- Cash available for distribution1 decreased by 12.6%
to Cdn$9.4 million, from Cdn$10.8 million
- Payout ratio1 was 92.2% as compared with 80.9%
- Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
"A key focus in the first quarter of 2018 was that of building
out our diversified facility network to ensure the Company
continues to deliver reliable shareholder value" said Robert O. Horrar, President and CEO of Medical
Facilities. "The addition of seven ambulatory surgical centers to
our portfolio contributed strong case volume and revenue to our
overall results based on two months of operations since the
acquisition. Going forward, we expect the management of these seven
ASCs by NueHealth will enhance their results and further complement
our core portfolio" concluded Mr. Horrar.
As at March 31, 2018, the Company
had consolidated net working capital of negative $7.9 million compared to $33.8 million as at December 31, 2017. The change was due mainly to
the cash decline and corporate credit facility debt increase
relating to the acquisition of the MFC Nueterra ASCs in the three
months ending March 31, 2018. The
level of working capital, including financing required to cover any
deficiencies, is dependent on the operating performance of the
Company and fluctuates from period to period.
Medical Facilities' complete first quarter 2018 financial
statements and management's discussion and analysis will be issued
and filed on SEDAR at www.sedar.com on Thursday, May
10, 2018 and will be available on the same day on Medical
Facilities' website at www.medicalfacilitiescorp.ca.
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_________________________________
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1
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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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Notice of Conference Call
Management of Medical
Facilities will host a conference call today, Thursday, May
10, 2018 at 8:30 am EDT to discuss its first quarter
2018 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, May 17, 2018 by calling
416.849.0833 or 1.855.859.2056, reference number 2596608. A live
audio webcast of the call will be available at
https://bit.ly/2w51ZfS.
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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)
|
2018
|
2017
|
% change
|
|
Facility service
revenue
|
97,618
|
89,004
|
9.7%
|
|
Consolidated
operating expenses
|
83,495
|
75,684
|
10.3%
|
|
Income from
operations
|
14,123
|
13,320
|
6.0%
|
|
Finance costs (net
interest expense)
|
3,889
|
4,032
|
(3.6%)
|
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Finance costs
(changes in values of derivative instruments and gain/loss on
foreign currency)
|
(2,304)
|
4,833
|
(147.7%)
|
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Income tax expense
(recovery)
|
2,009
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(284)
|
|
|
Net income and
comprehensive income for the period
|
10,529
|
4,739
|
122.2%
|
|
Attributable
to:
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|
|
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Owners of the
Corporation
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4,228
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(516)
|
919.4%
|
|
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Non-controlling
interest
|
6,301
|
5,255
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19.9%
|
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Earnings (loss) per
share
|
|
|
|
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Basic
|
0.14
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(0.02)
|
|
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Diluted
|
0.12
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(0.02)
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Cash available for
distribution (C$)
|
9,438
|
10,795
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(12.6%)
|
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Distributions
(C$)
|
8,705
|
8,732
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(0.3%)
|
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Cash available for
distribution per common share (C$)
|
0.31
|
0.35
|
(11.4%)
|
|
Distributions per
common share (C$)
|
0.28
|
0.28
|
|
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Payout
ratio
|
92.2%
|
80.9%
|
14.0%
|
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Reconciliation of
net income and comprehensive income for the period to
EBITDA
|
|
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Net income and
comprehensive income for the period
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10,529
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4,739
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122.2%
|
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Income tax expense
(recovery)
|
2,009
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(284)
|
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Finance
costs
|
1,585
|
8,865
|
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Depreciation and
amortization
|
5,945
|
6,783
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EBITDA
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20,068
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20,103
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(0.2%)
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Normal Course Issuer Bid ("NCIB")
During the three
months ended March 31, 2018, the
Corporation did not purchase any of its common shares.
As at March 31, 2018, the Company
had 30,950,345 common shares outstanding.
To view Medical Facilities Q1 2018 financial statements and
notes, please click here:
http://files.newswire.ca/940/MFC_Q1_2018.pdf
About Medical Facilities
Medical Facilities, in
partnership with physicians, owns surgical facilities in
the United States. Medical
Facilities' portfolio includes controlling interests in five
specialty surgical hospitals located in Arkansas, Indiana, Oklahoma, and South
Dakota, and an ambulatory surgery center located in
California. In addition, through a
partnership with NueHealth LLC, Medical Facilities owns controlling
interests in seven ambulatory surgery centers located in
Arkansas, Michigan, Missouri, Nebraska, Ohio, Oregon,
and Pennsylvania. The specialty
surgical 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 centers specialize in outpatient
surgical procedures, with patient stays of less than 24 hours. In
addition, Medical Facilities owns a 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