"1- Clinic portfolio maintains strong
performance, 2- HQ shared services strategy continues to build out
and 3- WELL announces key updates related to its management
team"
VANCOUVER, Dec. 21, 2018 /CNW/ - WELL Health Technologies
Corp. (the 'Company' or 'WELL') (formerly Wellness
Lifestyles Inc.) (TSX.V:WELL) announces that it has filed its
condensed interim consolidated financial statements and Interim
Management Discussion and Analysis or "MD&A" - Quarterly
Highlights relating to its fourth quarter 2018 results.
The highlights below have been derived from the condensed
interim consolidated financial statements and Interim MD&A -
Quarterly Highlights. Readers are encouraged to review the entire
condensed interim consolidated financial statements and Interim
MD&A - Quarterly Results.
Fiscal
fourth quarter financial & business highlights (all figures in Canadian dollars):
- Revenue from continuing operations was $1,911,625, a
1,197% increase compared to Q4 2017 revenue of $147,374 which was entirely from now discontinued
operations related to non-medical clinic operations. All revenues
from continuing operations related to healthcare fees earned from
the six medical clinics acquired on February
9, 2018.
- Adjusted EBITDA1 loss from continuing operations was
$537,219.
- Net Loss from continuing operations was
$916,849. When including results of discontinued
operations and currency translation adjustment, the Total
Comprehensive Loss was $903,976.
Financial & business highlights subsequent to the fourth
quarter:
- On November 1, 2018, the Company
acquired 13 primary healthcare clinics in British Columbia. Post transaction, the
Company owns and operates a total of 19 clinics which supported
approximately 600,000 patient visits in the past year.
- On November 1, 2018, the Company
announced that Dr. Michael Frankel
had officially joined its executive management team as Chief
Medical Officer. Dr. Frankel is a highly accomplished physician
with a deep history of serving patients and running successful
medical clinics.
- On November 14, 2018, the Company
entered into a share purchase agreement with the shareholders of
Northwest Electronics Records and Design ("NerdEMR"), whereby the
Company has agreed to acquire all of the issued and outstanding
shares of NerdEMR. NerdEMR provides OSCAR
EMR services to approximately 220 medical clinics located
mainly in British Columbia. As
part of the transaction, WELL has also agreed to acquire Butterfly
Medical Ltd. ("Butterfly") which owns certain intellectual property
relating to the growth and consolidation of EMR companies related
to the OSCAR platform.
- The Company is already fully funded to support the above
acquisitions based on its previous financing including the funding
led by Sir Li Ka-shing and WELL's
CEO, Mr. Hamed Shahbazi which closed
on May 15, 2018.
- The Company announced that it has changed its financial
year-end from October 31 to December
31.
"We've had a very strong finish to the year with our
preparations to welcome the talented staff at 13 additional clinics
as well as the team at NerdEMR to our WELL family. We are now
19 clinics strong with more than 350 staff supporting approximately
600,000 patient visits which we understand makes us the largest
network of clinics in the province of British Columbia. We've
built out a capable HQ shared services team which is working hard
to support our clinical and digital ecosystem. As a purpose
driven company, our over-arching goal is to improve the patient
journey, support our physician partners such that they can elevate
clinical outcomes and deliver superior shareholder value" said
Hamed Shahbazi, Chairman and CEO of
WELL. "WELL management is laser focused on actions that
result in growth that is accretive to shareholder value over the
short and long term."
Appointment of New Chief Operating Officer
Mr. Amir Javidan has been
appointed Chief Operating Officer of the Company, effective
January 14, 2018. Mr. Javidan
has approximately 15 years of experience in key technology driven
leadership roles at companies such as Avigilon Corporation where he
served as Vice President of Information Technology and Customer
Service, TIO Networks Corp where he served as COO and most recently
with PayPal (NASDAQ: PYPL) Mr. Javidan's focus will be to
help the Company scale its operations through the implementation of
technology. Mr. Alex Read,
will continue to serve as WELL's current COO until January 11, 2018.
"With the growth of our clinical and digital businesses, WELL
has unique opportunities to implement technology which results in
operational efficiencies and improved health outcomes. We are
very pleased to welcome Mr. Javidan, a proven operational and
technology leader to our leadership team. The Board of
Directors of WELL and management team would like to offer Mr. Read
our sincere and heartfelt gratitude for his valuable service during
his tenure with WELL and wish him luck in his future endeavors,"
said Hamed Shahbazi, Chairman and
CEO of WELL.
Summary of Selected Financial and Operational
Highlights
|
For the
three
months ended October
31
|
For the
twelve
months ended October
31
|
|
2018
|
2017
|
2018
|
2017
|
|
$
|
$
|
$
|
$
|
Total
Revenue
|
1,911,625
|
-
|
5,897,344
|
-
|
Gross
Profit
|
559,135
|
-
|
1,730,024
|
-
|
Adjusted
EBITDA(1)
|
(537,219)
|
(83,221)
|
(1,006,925)
|
(595,392)
|
Net loss from
continuing operations
|
(916,849)
|
(107,747)
|
(2,043,664)
|
(620,691)
|
Total comprehensive
loss for the period
|
(903,976)
|
(4,881,341)
|
(2,254,999)
|
(5,558,360)
|
|
|
|
|
|
Reconciliation of
EBITDA and adjusted EBITDA
|
Total comprehensive
loss for the period
|
(903,976)
|
(4,881,341)
|
(2,254,999)
|
(5,558,360)
|
Amortization
|
12,470
|
-
|
35,939
|
-
|
Interest
income
|
(42,484)
|
-
|
(75,144)
|
-
|
Interest
expense
|
6,837
|
-
|
19,296
|
-
|
Income tax
expense
|
435
|
-
|
9,442
|
-
|
EBITDA(1)
|
(926,718)
|
(4,881,341)
|
(2,265,466)
|
(5,558,360)
|
Stock-based
compensation
|
221,762
|
7,000
|
771,061
|
17,300
|
Net loss from
discontinued operations
|
(9,387)
|
4,791,120
|
212,953
|
4,945,668
|
Transaction and
restructuring costs expensed
|
177,124
|
-
|
274,527
|
-
|
Adjusted
EBITDA(1)
|
(537,219)
|
(83,221)
|
(1,006,925)
|
(595,392)
|
Note:
|
(1)
|
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
EBITDA as earnings before depreciation and amortization, interest
expense/income and income tax expense/recovery. Adjusted EBITDA is
defined as EBITDA before transaction and restructuring costs,
discontinued operations 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.
|
About WELL
Backed by legendary investor and business magnate Sir
Li Ka-shing, WELL owns and operates
Primary Healthcare Facilities in Canada. WELL's overarching
objective is to empower primary care doctors to provide the best
and most advanced care possible leveraging the latest trends in
digital health. WELL physicians support approximately 600,000
patient visits per year through its network of clinics. WELL
is publicly traded on the TSX Venture Exchange under the symbol
WELL.V. WELL was recognized as a TSX Venture 50 Company
in 2018.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed
Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this news release related to the Company
are forward-looking statements and are prospective in nature.
Forward-looking statements are not based on historical facts, but
rather on current expectations and projections about future events,
and are therefore subject to risks and uncertainties which could
cause actual results to differ materially from the future results
expressed or implied by the forward-looking statements. These
statements generally can be identified by the use of
forward-looking words such as "may", "should", "could", "intend",
"estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations.
Forward-looking statements in this news release include statements
regarding: the acquisition of NerdEMR and Butterfly;
establishing best in class shared services to create a scalable
growth model for the Company; modernizing the Company's operation
with the use of technology to benefit doctors and patients;
improving the patient journey and elevating clinical outcomes;
delivering superior shareholder value over the short and long term;
scaling the Company's operations through the implementation of
technology; obtaining operational efficiencies and improved health
outcomes; expected number of patient visits, and executing on a
disciplined and highly accretive capital allocation program.
There are numerous risks and uncertainties that could cause actual
results and WELL's plans and objectives to differ materially from
those expressed in the forward-looking information, including: (i)
adverse market conditions; (ii) risks inherent in the primary
healthcare sector in general; and (iii) other factors beyond
the control of the Company. Actual results and future events could
differ materially from those anticipated in such information. These
and all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, the Company does not intend to update
these forward-looking statements.
SOURCE WELL Health Technologies Corp.