TORONTO, May 11, 2023
/CNW/ - Medical Facilities Corporation ("Medical Facilities,"
"MFC," or the "Corporation") (TSX: DR), reported its financial
results today for the first quarter ended March 31, 2023. All amounts are expressed in U.S.
dollars unless indicated otherwise.
Q1 2023 Highlights
(Compared to Q1 2022)
- Facility service revenue increased 8.4% to $109.3 million;
- Income from operations was $13.5
million, an increase of 4.9% when excluding government
stimulus income of $1.8 million in Q1
2022;
- EBITDA1 was $19.1
million, an increase of 6.3% when excluding government
stimulus income of $1.8 million in Q1
2022;
- Cash available for distribution increased by 20.6% on a per
common share basis; and,
- Arkansas Surgical Hospital, Black Hills Surgical Hospital, and
Sioux Falls Specialty Hospital named top hospitals for joint
replacements in their states by Healthgrades.
"It was a strong quarter from an operational standpoint as
higher surgical volumes from our surgical hospitals contributed to
an 8.4% increase in facility service revenue," said Jason Redman, President and CEO of Medical
Facilities. "We had strong cash flow and our income from operations
and EBITDA were up 4.9% and 6.3% respectively, when excluding
government stimulus income in the prior year. Moreover, our cash
available for distribution on a per common share basis and our
payout ratio benefited from the significant reduction in our share
count because of last year's Substantial Issuer Bid and our ongoing
Normal Course Issuer Bid program."
"We continue to be pleased with the strength of our surgical
hospitals. During the quarter, three of our hospitals were
recognized by Healthgrades as the leading hospitals for joint
replacements in their respective states. MFC is committed to
providing the highest-quality treatment and care to our patients,
and this recognition reflects the incredible efforts of our
physician partners and staff."
Financial Results
|
Financial
Results
|
For the three months
ended
|
|
March
31
|
|
(thousands of U.S.
dollars, except per
share amounts and where otherwise
noted)
|
2023
|
2022
|
% change
|
|
Facility service
revenue
|
109,250
|
100,788
|
8.4 %
|
|
Government stimulus
income
|
-
|
1,810
|
(100.0 %)
|
|
Total revenue and other
income
|
109,250
|
102,598
|
6.5 %
|
|
Consolidated operating
expenses
|
95,745
|
87,918
|
8.9 %
|
|
Income from
operations
|
13,505
|
14,680
|
(8.0 %)
|
|
Finance costs (net
interest income)
|
1,636
|
1,401
|
16.8 %
|
|
Finance costs (changes
in values of
derivative instruments and gain/loss
on foreign currency)
|
551
|
12,504
|
(95.6 %)
|
|
Impairment loss on
loan receivable
|
-
|
3,990
|
(100.0 %)
|
|
Share of equity income
in
associates
|
-
|
(6)
|
100.0 %
|
|
Income tax expense
(recovery)
|
1,652
|
(2,094)
|
178.9 %
|
|
Net income
(loss)2
|
9,666
|
(1,115)
|
966.9 %
|
|
Earnings (loss) per
share
|
|
|
|
|
Basic
|
$0.17
|
($0.26)
|
165.4 %
|
|
Diluted
|
$0.17
|
($0.26)
|
165.4 %
|
|
Reconciliation of
Net Income (Loss)
to EBITDA1
|
For the three months
ended
March
31
|
|
(thousands of U.S.
dollars, except
where otherwise noted)
|
2023
|
2022
|
% change
|
|
Net income
(loss)
|
9,666
|
(1,115)
|
966.9 %
|
|
Income tax expense
(recovery)
|
1,652
|
(2,094)
|
178.9 %
|
|
Share of equity income
in associates
|
-
|
(6)
|
100.0 %
|
|
Finance
costs
|
2,187
|
17,895
|
(87.8 %)
|
|
Depreciation and
amortization
|
5,640
|
5,137
|
9.8 %
|
|
EBITDA
|
19,145
|
19,817
|
(3.4 %)
|
|
Distributable Cash
Flow
|
For the three months
ended
|
|
March
31
|
|
(thousands of
dollars, except per
share amounts and where otherwise
noted)
|
2023
|
2022
|
% change
|
|
Cash available for
distribution1 (C$)
|
5,583
|
5,503
|
1.5 %
|
|
Distributions
(C$)
|
2,053
|
2,448
|
(16.1 %)
|
|
Distributions per
common share (C$)
|
0.08
|
0.08
|
-
|
|
Payout
ratio1
|
36.9 %
|
44.4 %
|
(16.9 %)
|
During the quarter, MFC paid a quarterly cash dividend of
C$0.0805 per common share (or
C$0.322 per share on an annualized
basis), which represented an annualized yield of 4.05% on the
March 31, 2023, closing price of
C$7.95 per common share.
On March 31, 2023, MFC had
consolidated net working capital of $31.9
million, compared to $32.5
million on December 31,
2022.
MFC's financial statements and management's discussion and
analysis, for the three-month period ended March 31, 2023, will be filed on SEDAR at
www.sedar.com on Thursday, May 11, 2023, and will also be
available on Medical Facilities' website at
www.medicalfacilitiescorp.ca.
Notice of Conference Call
Management of MFC will host a conference call today,
May 11, 2023, at 8:30 am ET
to discuss its first quarter financial results. All interested
parties may join the conference call by dialing 416-764-8650 or
1-888-664-6383 approximately 15 minutes prior to the call to secure
a line. To join the conference call without operator assistance,
you may register and enter your phone number at
https://emportal.ink/3o9IPRy to receive an instant automated call
back.
A live audio webcast of the call will be available at
https://bit.ly/MFC2023Q1. Please connect at least 15 minutes prior
to the call to ensure adequate time for any software download that
may be required to join the webcast. The webcast will be archived
on MFC's website following the call date.
About Medical Facilities
Medical Facilities, in partnership with physicians, owns a
portfolio of highly rated, high-quality surgical facilities in
the United States. MFC's ownership
includes controlling interest in four specialty surgical hospitals
located in Arkansas, Oklahoma, and South
Dakota, and an ambulatory surgery center ("ASC") located in
California. In addition, through a
partnership with NueHealth LLC, Medical Facilities owns a
controlling interest in five ambulatory surgery centers located in
Michigan, Missouri, Nebraska, Ohio, and Pennsylvania. MFC also owns a non-controlling
interest in an ASC in Missouri.
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 ASCs specialize in outpatient surgical
procedures, with patient stays of less than 24 hours. 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.
|
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.
|
|
2
Net Income (Loss) is attributable to the owners of the
Corporation and the non-controlling interest
holders.
|
SOURCE Medical Facilities Corporation