- WELL reported record quarterly revenues of $61.8 million in Q2-2021 reflecting a 484%
year-over-year (YoY) increase compared to Q2-2020. WELL's
growth was mainly driven by the acquisition of CRH Medical
Corporation ("CRH") combined with a 432% YoY increase in the
Company's Virtual Services revenue(3) in the
quarter.
- WELL achieved its third quarter in a row of positive Adjusted
EBITDA(2), with Adjusted EBITDA(2) of
$11.9 million for Q2-2021, compared
to Adjusted EBITDA(2) loss of $0.5 million for Q2-2020.
- WELL's Adjusted Gross Profit(1) increased by 615% to
$30.2 million in Q2-2021, as compared
to Adjusted Gross Profit(1) of $4.2 million in Q2-2020. WELL achieved
record Adjusted Gross Margin(1) percentage of 48.9%
during Q2-2021 compared to Adjusted Gross Margin(1)
percentage of 40.0% in Q2-2020.
- WELL's strong outlook for Q3-2021 is attributed to the full
contribution of the CRH and MyHealth Partners Inc.
("MyHealth") acquisitions and catapults WELL's estimated
proforma annualized revenue run-rate to almost $400 million with Adjusted
EBITDA(2) run-rate approaching $100 million.
VANCOUVER, BC, Aug. 12, 2021 /CNW/ - WELL Health Technologies
Corp. (TSX: WELL) (the "Company" or "WELL"), a
company focused on consolidating and modernizing clinical and
digital assets within the primary healthcare sector, announced
today its results for the second quarter of 2021 ended June 30, 2021.
![TSX: WELL (CNW Group/WELL Health Technologies Corp.) TSX: WELL (CNW Group/WELL Health Technologies Corp.)](https://mma.prnewswire.com/media/1593489/WELL_Health_Technologies_Corp__WELL_Health_Achieves_Record_Reven.jpg)
Hamed Shahbazi, Chairman and CEO
of WELL commented, "Our practitioner enablement platform and
momentum around our acquisitions are delivering extremely strong
financial results. We are grateful to the healthcare
practitioners and clinicians that provide outstanding care every
day as well as the technology and administrative teams that support
them. There are some key take-aways worth noting from these
very strong results: firstly, Adjusted Gross
Profit(1) increased significantly by 615% YoY, and
secondly, we achieved Adjusted Gross Margin(1)
percentage of almost 49%. Furthermore, during Q2, we closed
the acquisition of CRH, followed by the acquisition of MyHealth in
Q3 which now puts us on track for a proforma annualized revenue
run-rate of almost $400 million and
an Adjusted EBITDA(2) run-rate approaching $100 million."
Mr. Shahbazi added, "In addition to the CRH and MyHealth
acquisitions, we continued to be active with our corporate
development activities. In Q2-2021 we completed the
acquisitions of Intrahealth Systems Limited ("Intrahealth"),
ExecHealth Inc. ("ExecHealth") and a 51% majority stake in
Doctors Services Group ("DSG") and our CRH business unit
made three majority stake acquisitions in the quarter. More
recently, we announced the formation of WELL Ventures Inc.
("Well Ventures"), a wholly-owned subsidiary whose mandate
is to invest in businesses that are advancing the global digital
health ecosystem."
Second Quarter 2021 Financial Highlights:
- WELL achieved record quarterly revenue of $61.8 million during Q2-2021, compared to revenue
of $10.6 million generated during
Q2-2020, an increase of 484% driven primarily by the CRH
acquisition, which accounted for revenue of $36.7 million during the quarter.
- WELL's Virtual Services revenues increased to $12.5 million in Q2-2021, representing 432% YoY
growth as compared to Virtual Services revenue of $2.3 million in Q2-2020.
- WELL achieved record Adjusted Gross Profit(1) of
$30.2 million in Q2-2021,
representing 615% YoY growth as compared to Adjusted Gross
Profit(1) of $4.2 million
in Q2-2020. WELL achieved record Adjusted Gross
Margin(1) percentage of 48.9% during Q2-2021 compared to
Adjusted Gross Margin(1) percentage of 40.0% in Q2-2020.
The increase in Adjusted Gross Margin was due to the addition
of higher margin CRH and Virtual Services revenue in the
quarter.
- Adjusted EBITDA(2) was $11.9
million for Q2-2021, compared to Adjusted
EBITDA(2) loss of $0.5
million for Q2-2020. Adjusted EBITDA(2) was
positively impacted by the addition of CRH during the quarter.
- The Company delivered 559,008 total omni-channel patient visits
in Q2-2021, representing a YoY increase of 173%. In-person
patient visits accounted for 241,654 visits in the quarter, an
increase of 228% compared to Q2-2020, while telehealth patient
visits accounted for 317,354 patient visits, an increase of 142%
from Q2-2020.
Second Quarter 2021 Business Highlights:
- On April 23, 2021, the Company
completed the acquisition of CRH, a company focused on delivering
high quality healthcare services and has emerged as a leading
provider of anesthesia services to the GI (Gastroenterologist)
community.
- On April 25, 2021, the Company
announced it has entered into an amended senior credit arrangement
with a syndicate of lenders, for an aggregate amount of
US$300 million, including revolving
credit facilities of US$175 million
and access to a US$125 million
accordion feature.
- During the quarter, WELL completed the following acquisitions:
(i) the acquisition of Intrahealth, a provider of enterprise class
EMR and clinical healthcare software with customers in Canada, New
Zealand and Australia; (ii)
the acquisition of ExecHealth, an omni-channel healthcare provider
located in Ottawa, Ontario,
specializing in corporate and executive health, primary care and
integrated health; and (iii) a 51% stake in DSG, a leader in the
provision of uninsured services billing programs.
- WELL's newly acquired subsidiary CRH completed three
acquisitions in the quarter, namely an 85% majority stake position
in New England Anesthesia Associates, LLC based in Guilford, Connecticut and the acquisitions of
51% stakes in both Northern Indiana Anesthesia Associates, LLC in
Indiana, and an add-on practice
for FDHS Anesthesia Associates, LLC in Florida. These three accretive acquisitions
increase CRH's footprint to a total 75 ambulatory surgical centers
across the United States.
Acquisition of MyHealth:
On July 15, 2021, the Company
completed its acquisition of MyHealth, a leading primary care,
specialty care, telehealth services and accredited diagnostic
health services provider that owns and operates 48 locations across
Ontario. With this foundational acquisition, WELL is now the
largest owner-operator of outpatient medical clinics in
Canada with 74 combined
clinics. Approximately 75% of MyHealth's medical
consultations are currently conducted via telehealth, which when
combined with WELL's multiple telehealth businesses now make WELL
the leading multi-disciplinary telehealth service provider in
Canada.
The purchase price paid upon closing of C$206 million was fully funded via a combination
of WELL shares at $9.80 per share,
vendor takeback financing, and new senior credit facilities.
The transaction was financed in part by senior facilities providing
up to C$200 million of credit to
MyHealth provided by a syndicate of banks led by the Royal Bank of
Canada and including the Bank
of Montreal, HSBC Bank Canada, The Toronto-Dominion Bank,
ICICI Bank Canada and Laurentian Bank of Canada.
MyHealth represents a major acquisition for the Company for the
following reasons: (i) it significantly boosts WELL's free cash
flow, which would be used to make additional cash flow generating
acquisitions; (ii) it accelerates WELL's revenue and EBITDA growth
profile; (iii) it establishes a strong presence for WELL in
Ontario with 48 additional
healthcare clinic locations; and (iv) it expands WELL's expertise
into providing complementary diagnostic services and specialty
services.
Other Events Subsequent to June 30,
2021:
- On July 21, 2021, the Company
formed WELL Ventures, a wholly-owned subsidiary of WELL, whose
mandate is to invest in exceptional leaders, entrepreneurs and
businesses supporting the global digital health ecosystem, with an
emphasis on advancing innovative digital health initiatives in
Canada. In addition, WELL Ventures
made a strategic investment of $250,000 in preferred equity in 10432423 CANADA
LTD. (dba "Bright"), a B2B technology service provider that has
developed a virtual amenities wellness program for on-site and
work-from-home teams.
- On August 2, 2021, the Company's
CRH subsidiary completed the majority stake acquisition for 51% of
Greater Washington Anesthesia Associates, LLC., a provider of GI
related anesthesia services at two locations in North Virginia. This brings the total number
to 77 endoscopy sites across the United
States.
Outlook:
WELL remains on track to achieve its goals for 2021, namely: (i)
build out and refine its practitioner enablement platform and
deploy its services both internally to WELL healthcare
practitioners as well as offer its services to healthcare
practitioners outside of WELL; (ii) achieve organic growth across
all of its operating business units; (iii) follow a disciplined
acquisition and capital allocation strategy; (iv) grow its Adjusted
EBITDA(2) throughout the year; (v) increase operating
cash flows through acquisitions, optimizing costs and digitizing
clinical assets; and (vi) increase market share of its digital
health and virtual care programs.
WELL is expecting its substantial revenue and EBITDA growth
experienced in Q2 will continue into Q3 as a result of a full
quarter of CRH contribution and the acquisition of MyHealth which
was completed on July 15, 2021.
With the acquisitions of CRH and MyHealth, the Company's financial
and operating profile makes it a clear leader in the Canadian
healthcare market and a strong emerging player in the U.S.
healthcare market. The Company estimates it is currently on
an annualized revenue run-rate of almost $400 million and approaching $100 million in operating Adjusted
EBITDA(2).
WELL continues to have an active pipeline of acquisition
opportunities of both clinical and digital assets. The
Company also now has three engines of M&A growth with corporate
development teams in CRH, MyHealth and WELL corporate; thereby
effectively scaling the Company's inorganic growth potential.
Conference Call:
WELL will hold a conference call to discuss its 2021 Second
Quarter financial results on Thursday,
August 12, 2021 at 1:00 pm ET
(10:00 am PT). Please use the
following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local) or 1-888-664-6383
(Toll-Free), with Conference ID: 7396 1229.
The conference call will also be simultaneously webcast and can
be accessed at the following audience URL:
https://www.well.company/for-investors/events/
Selected Unaudited Financial Highlights:
Please see SEDAR for complete copies of the Company's condensed
interim consolidated financial statements and interim MD&A for
the three and six months ended June 30,
2021 and 2020.
|
Three months ended
June 30, 2021
|
Three months ended
March
31, 2021
|
Three months ended
June 30, 2020
|
|
Six months ended
June
30, 2021
|
Six months ended
June
30, 2020
|
|
$
'000
|
$ '000
|
$ '000
|
|
$
'000
|
$ '000
|
Revenue
|
61,793
|
25,560
|
10,578
|
|
87,353
|
20,805
|
Cost of sales
(excluding depreciation and amortization)
|
-31,589
|
-15,521
|
-6,351
|
|
-47,110
|
-12,636
|
Adjusted Gross
Profit(1)
|
30,204
|
10,039
|
4,227
|
|
40,243
|
8,169
|
Adjusted Gross
Margin(1)
|
48.9%
|
39.3%
|
40.0%
|
|
46.1%
|
39.3%
|
Adjusted
EBITDA(2)
|
11,882
|
527
|
-543
|
|
12,409
|
-789
|
Net
loss
|
-14,109
|
-7,085
|
-3,388
|
|
-21,194
|
-5,402
|
Total comprehensive
loss for the period
|
-14,444
|
-7,131
|
-3,388
|
|
-21,575
|
-5,402
|
Net loss per share -
for the period, basic and diluted (in $)
|
-0.08
|
-0.04
|
-0.03
|
|
-0.13
|
-0.04
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and diluted
|
187,778,646
|
163,123,252
|
126,181,778
|
|
175,519,058
|
122,162,548
|
|
|
|
|
|
|
|
Reconciliation of
net loss to Adjusted EBITDA(2)
|
|
|
|
|
|
|
Net loss for the
period
|
-14,109
|
-7,085
|
-3,388
|
|
-21,194
|
-5,402
|
Depreciation and
amortization
|
12,144
|
1,442
|
826
|
|
13,586
|
1,554
|
Income tax expense
(recovery)
|
1,120
|
367
|
113
|
|
1,487
|
169
|
Interest
income
|
-94
|
-320
|
-85
|
|
-414
|
-174
|
Interest
expense
|
1,351
|
458
|
642
|
|
1,809
|
1,094
|
Rent expense on
finance leases
|
-856
|
-810
|
-516
|
|
-1,666
|
-1,004
|
Stock-based
compensation
|
4,309
|
2,993
|
1,044
|
|
7,302
|
1,676
|
Foreign exchange
loss
|
4,842
|
11
|
-
|
|
4,853
|
-
|
Time-based earn-out
expense
|
996
|
891
|
510
|
|
1,887
|
844
|
Share of loss
(profit) of associates
|
-8
|
64
|
-
|
|
56
|
-
|
Transaction,
restructuring, & integration costs expensed
|
2,187
|
2,516
|
311
|
|
4,703
|
454
|
Adjusted
EBITDA(2)
|
11,882
|
527
|
-543
|
|
12,409
|
-789
|
|
|
|
|
|
|
|
Attributable
to WELL shareholders
|
7,245
|
463
|
-559
|
|
7,708
|
-809
|
Attibutable to
Non-controlling interests
|
4,637
|
64
|
16
|
|
4,701
|
20
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
|
|
|
|
|
|
Canada and
others
|
-2,751
|
1,111
|
-543
|
|
-1,640
|
-789
|
US
operations
|
14,633
|
-584
|
-
|
|
14,049
|
-
|
Adjusted
EBITDA(2)attributable to WELL
shareholders
|
|
|
|
|
|
|
Canada and
others
|
-2,939
|
870
|
-559
|
|
-2,069
|
-809
|
US
operations
|
10,184
|
-407
|
-
|
|
9,777
|
-
|
Adjusted
EBITDA(2)attributable to Non-controlling
interests
|
|
|
|
|
|
|
Canada and
others
|
188
|
241
|
16
|
|
429
|
20
|
US
operations
|
4,449
|
-177
|
-
|
|
4,272
|
-
|
Notes:
|
|
(1)
|
Non-GAAP
measure. Adjusted gross profit and adjusted
gross margin do not have any standardized meaning under IFRS
and therefore may not be comparable to similar measures presented
by other issuers. The Company defines adjusted gross profit
as revenue less cost of sales (excluding depreciation and
amortization) and adjusted gross margin as adjusted gross profit as
a percentage of revenue. Adjusted gross profit and adjusted
gross margin should not be construed as an alternative for revenue
or net loss determined in accordance with IFRS. The Company
believes that adjusted gross profit and adjusted gross margin are
meaningful metrics in assessing the Company's financial performance
and operational efficiency.
|
(2)
|
Non-GAAP
measure. Earnings before interest, taxes, depreciation
and amortization ("EBITDA") and Adjusted EBITDA should not
be construed as alternatives to net income/loss determined in
accordance with IFRS. EBITDA and Adjusted EBITDA do not have
any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers.
The Company defines Adjusted EBITDA as EBITDA (i) less net
rent expense on premise leases considered to be finance leases
under IFRS and (ii) before transaction, restructuring, and
integration costs, time-based earn-out expense, change in fair
value of investments, share of loss of associates, foreign exchange
gain/loss, and stock-based compensation expense. The Company
believes that Adjusted EBITDA is a meaningful financial metric as
it measures cash generated from operations which the Company can
use to fund working capital requirements, service future interest
and principal debt repayments and fund future growth
initiatives.
|
(3)
|
Virtual Services
revenue means all SaaS, services or product revenues associated
with the company's Practitioner enablement platform that is billed
to companies or practitioners outside of WELL's patient service
businesses including any patient services business that has little
to no reliance on physical brick and mortar clinics (such as Tia
Health, VirtualClinic+ and Circle Medical). This group of
revenue does not include WELL's omni-channel patient services
businesses which include a combination of virtual and/or brick and
mortar operations (such as WELL's primary clinic network, and CRH
Medical)
|
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed
Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is an innovative technology enabled healthcare company
whose overarching objective is to positively impact health outcomes
by leveraging technology to empower and support healthcare
practitioners and their patients. WELL has built an
innovative practitioner enablement platform that includes
comprehensive end to end practice management tools inclusive of
virtual care and digital patient engagement capabilities as well as
Electronic Medical Records (EMR), Revenue Cycle Management (RCM)
and data protection services. WELL uses this platform to
power healthcare practitioners both inside and outside of WELL's
own omni-channel patient services offerings. WELL owns and
operates Canada's largest network of outpatient medical
clinics serving primary and specialized healthcare services and is
the provider of a leading multi-national multi-disciplinary
telehealth offering. WELL is publicly traded on the Toronto
Stock Exchange under the symbol "WELL". To
access the Company's Canadian telehealth service, visit:
tiahealth.com, and for corporate information, visit:
www.well.company.
Forward-Looking Information
This news release may contain "Forward-Looking Information"
within the meaning of applicable Canadian securities laws,
including, without limitation: information regarding the Company's
goals, strategies and growth plans; expectations regarding
continued revenue and EBITDA growth; the expected benefits and
synergies of completed acquisitions; the expected financial
performance as well as information in the "Outlook" section herein.
Forward-looking information are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties, and
contingencies. Forward-looking information generally can be
identified by the use of forward-looking words such as "may",
"should", "will", "could", "intend", "estimate", "plan",
"anticipate", "expect", "believe" or "continue", or the negative
thereof or similar variations. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause future results, performance or achievements to be
materially different from the estimated future results, performance
or achievements expressed or implied by those forward-looking
statements and the forward-looking statements are not guarantees of
future performance. WELL's statements expressed or implied by
these forward-looking statements are subject to a number of risks,
uncertainties, and conditions, many of which are outside of WELL 's
control, and undue reliance should not be placed on such
statements. Forward-looking statements are qualified in their
entirety by inherent risks and uncertainties, including: direct and
indirect material adverse effects from the COVID-19 pandemic;
adverse market conditions; risks inherent in the primary healthcare
sector in general; regulatory and legislative changes; that future
results may vary from historical results; inability to obtain any
requisite future financing on suitable terms; any inability to
realize the expected benefits and synergies of acquisitions; that
market competition may affect the business, results and financial
condition of WELL and other risk factors identified in documents
filed by WELL under its profile at www.sedar.com, including its
most recent Annual Information Form. Except as required by
securities law, WELL does not assume any obligation to update or
revise any forward-looking statements, whether as a result of new
information, events or otherwise.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI")
about estimated annual run-rate revenue and Adjusted EBIDTA, all of
which are subject to the same assumptions, risk factors,
limitations, and qualifications as set out in the above paragraph.
The actual financial results of WELL may vary from the
amounts set out herein and such variation may be material.
WELL and its management believe that the FOFI has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments. However, because this information is
subjective and subject to numerous risks, it should not be relied
on as necessarily indicative of future results. Except as
required by applicable securities laws, WELL undertakes no
obligation to update such FOFI. FOFI contained in this news
release was made as of the date hereof and was provided for the
purpose of providing further information about WELL's anticipated
future business operations on an annual basis. Readers are
cautioned that the FOFI contained in this news release should not
be used for purposes other than for which it is disclosed
herein.
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