TORONTO, Nov. 7, 2024
/CNW/ - Medical Facilities Corporation ("Medical Facilities,"
"MFC," or the "Corporation") (TSX: DR), reported its financial
results today for the three-month and nine-month periods ended
September 30, 2024. All amounts are
expressed in U.S. dollars unless indicated otherwise.
Q3 2024 Highlights
(Compared to Q3 2023 and excluding
the divested MFC Nueterra ambulatory surgery centers)
- Facility service revenue increased 0.2% to $103.6 million
- Recognized government stimulus income of $11.4 million ($12.0
million when including $0.6
million in relation to MFC Nueterra) after receiving
forgiveness on all outstanding Paycheck Protection Program ("PPP")
loans
- Income from operations increased 11.7% to $14.2 million when excluding government stimulus
income and non-controllable, non-cash corporate level charges
related to share-based compensation plans
- EBITDA1 increased 8.3% to $19.1 million when excluding government stimulus
income and non-controllable, non-cash corporate level charges
related to share-based compensation plans
- Surgical case volumes increased 3.1%
- Purchased 554,900 of its common shares for a total
consideration of $5.7 million under
its normal course issuer bid ("NCIB")
- Repaid $2.0 million on its
corporate credit facility
"In addition to higher facility service revenue and a net
decrease in operating expenses, our third quarter results got a big
lift from the recognition of PPP government stimulus income after
receiving forgiveness on all of our facilities' outstanding PPP
loans," said Jason Redman, President
and CEO of Medical Facilities. "We remained very active on the NCIB
front, repurchasing 554,900 shares during the quarter and 1,230,600
in the first nine months, returning $5.7
million and $11.3 million to
shareholders during those respective periods. We also continued to
pay down our corporate debt, reducing the balance by $2 million during the quarter and $12 million in the first nine months."
|
Financial
Results
|
For the three months
ended
September 30
|
For the nine months
ended
September 30
|
|
(thousands of U.S.
dollars, except per
share amounts and where otherwise
noted)
|
2024
|
2023
|
%
change
|
2024
|
2023
|
%
change
|
|
Facility service
revenue
|
103,573
|
104,579
|
(1.0 %)
|
319,006
|
323,317
|
(1.3 %)
|
|
Government stimulus
income
|
11,957
|
-
|
100.0 %
|
11,957
|
-
|
100.0 %
|
|
Revenue and other
income
|
115,530
|
104,579
|
10.5 %
|
330,963
|
323,317
|
2.4 %
|
|
Operating
expenses
|
89,995
|
92,037
|
(2.2 %)
|
270,049
|
281,718
|
(4.1 %)
|
|
Income from
operations
|
25,535
|
12,542
|
103.6 %
|
60,914
|
41,599
|
46.4 %
|
|
Finance costs (net
interest expense)
|
1,100
|
1,450
|
(24.1 %)
|
3,621
|
4,651
|
(22.1 %)
|
|
Finance costs (changes
in values of
derivative instruments and gain/loss
on foreign currency)
|
6,875
|
4,971
|
38.3 %
|
24,429
|
9,278
|
163.3 %
|
|
Impairment loss on
loan receivable
|
-
|
786
|
(100.0 %)
|
-
|
786
|
(100.0 %)
|
|
Gain on sale of
subsidiaries and
equity investments
|
-
|
(2,487)
|
100.0 %
|
-
|
(2,487)
|
100.0 %
|
|
Share of equity loss
in associates
|
-
|
320
|
(100.0 %)
|
-
|
320
|
(100.0 %)
|
|
Income tax
expense
|
141
|
2,709
|
(94.8 %)
|
340
|
5,363
|
(93.7 %)
|
|
Net
income2
|
17,419
|
4,793
|
263.4 %
|
32,524
|
23,688
|
37.3 %
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$0.30
|
($0.01)
|
3,100.0 %
|
$0.36
|
$0.30
|
20.0 %
|
|
Diluted
|
$0.30
|
($0.01)
|
3,100.0 %
|
$0.36
|
$0.30
|
20.0 %
|
Net income fluctuates significantly between the periods,
primarily due to variations in non-cash finance costs (change in
the value of exchangeable interest liability) and income taxes;
these charges are incurred at the corporate level rather than at
the facility level.
|
Reconciliation of
Net Income to
EBITDA1
|
For the three months
ended
September 30
|
For the nine months
ended
September 30
|
|
(thousands of U.S.
dollars, except
where otherwise noted)
|
2024
|
2023
|
%
change
|
2024
|
2023
|
%
change
|
|
Net income
|
17,419
|
4,793
|
263.4 %
|
32,524
|
23,688
|
37.3 %
|
|
Income tax
expense
|
141
|
2,709
|
(94.8 %)
|
340
|
5,363
|
(93.7 %)
|
|
Non-operating (gains)
losses
|
-
|
(2,167)
|
100.0 %
|
-
|
(2,167)
|
100.0 %
|
|
Finance
costs
|
7,975
|
7,207
|
10.7 %
|
28,050
|
14,715
|
90.6 %
|
|
Depreciation and
amortization
|
4,879
|
5,200
|
(6.2 %)
|
14,644
|
16,513
|
(11.3 %)
|
|
EBITDA
|
30,414
|
17,742
|
71.4 %
|
75,558
|
58,112
|
30.0 %
|
|
Distributable Cash
Flow
|
For the three months
ended
September 30
|
For the nine months
ended
September 30
|
|
(thousands of
dollars, except per share
amounts and where otherwise noted)
|
2024
|
2023
|
%
change
|
2024
|
2023
|
%
change
|
|
Cash available for
distribution1 (C$)
|
6,141
|
5,429
|
13.1 %
|
23,096
|
17,596
|
31.3 %
|
|
Distributions
(C$)
|
2,115
|
2,014
|
5.0 %
|
6,249
|
6,094
|
2.5 %
|
|
Distributions per
common share (C$)
|
0.089
|
0.080
|
11.3 %
|
0.258
|
0.240
|
7.5 %
|
|
Payout
ratio1
|
34.5 %
|
36.9 %
|
(6.5 %)
|
27.0 %
|
34.6 %
|
(22.0 %)
|
During the quarter, MFC paid a quarterly cash dividend of
C$0.09 per common share (or
C$0.36 per share on an annualized
basis), which represented an annualized yield of 2.67% on the
September 30, 2024, closing price of
C$13.49 per common share.
On September 30, 2024, MFC had
consolidated net working capital of $11.4
million, compared to $19.8
million on December 31, 2023,
with the decrease partly reflecting repayments of $12.0 million against the corporate credit
facility since December 31, 2023,
including $2.0 million during the
third quarter.
MFC's financial statements and management's discussion and
analysis, for the three-month and nine-month periods ended
September 30, 2024, will be filed on
SEDAR+ at www.sedarplus.ca on Thursday, November 7, 2024, 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,
November 7, 2024, at
8:30 am ET to discuss its third quarter financial
results. Interested parties may join the conference call by dialing
1-888-510-2154 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/3NuTXlr to receive an instant automated call
back.
A live audio webcast of the call will be available at
https://bit.ly/MFC2024Q3. Please connect 15 minutes prior to the
call to allow 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. 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
ASC specializes 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.sedarplus.ca.
|
|
2 Net income is
attributable to the owners of the Corporation and the
non-controlling interest holders.
|
SOURCE Medical Facilities Corporation
