TORONTO, Aug. 11,
2022 /CNW/ - Medical Facilities Corporation ("Medical
Facilities," "MFC," or the "Corporation") (TSX: DR), reported its
financial results today for the three-month and six-month periods
ended June 30, 2022. All amounts are
expressed in U.S. dollars unless indicated otherwise.
Q2 2022 Highlights
(Compared to Q2 2021)
- Surgical case volumes increased 5.6%;
- Facility service revenue increased 4.7% to $102.2 million;
- Total revenue and other income increased 4.5% to $102.5 million;
- Income from operations decreased 2.8% to $16.5 million as consolidated operating expenses
increased 6.0%, largely due to the impact of volume growth and case
mix on drugs and supplies, and higher wages and salaries;
- EBITDA1 was $21.5
million, a decrease of 9.1%; and,
- By the end of the quarter, MFC had repurchased nearly 1.3
million of its common shares since the commencement of its normal
course issuer bid ("NCIB") in December
2021.
"Our surgical case volumes continued to improve in the quarter,
particularly in the month of June, when volumes exceeded
June 2021 volumes by 8.1% and
June 2019, which was before the
pandemic, by 8.9%," said Robert O.
Horrar, President and CEO of Medical Facilities. "However,
much like others in our industry, our profitability was impacted by
higher labor costs and other operating expenses."
"Regardless of the future uncertainty over COVID-19 and recent
cost pressures, we continue to take a balanced approach to the
business. Our cash flow and balance sheet remain strong. We're
paying a higher dividend per share than this time last year; we
continue to buy back shares under our NCIB; and our business is
well aligned for two of the major growth drivers for our industry –
the aging population and the growth in outpatient procedures."
Financial Results
|
Financial
Results
|
For the three months
ended
|
For the six months
ended
|
|
June
30
|
June
30
|
|
(thousands of U.S.
dollars, except
per share amounts and where
otherwise noted)
|
2022
|
% change
|
2021
|
2022
|
% change
|
2021
|
|
Facility service
revenue
|
102,162
|
4.7 %
|
97,572
|
202,950
|
5.9 %
|
191,568
|
|
Government stimulus
income
|
363
|
(36.5 %)
|
572
|
2,173
|
(53.8 %)
|
4,705
|
|
Total revenue and other
income
|
102,525
|
4.5 %
|
98,144
|
205,123
|
4.5 %
|
196,273
|
|
Consolidated operating
expenses
|
86,064
|
6.0 %
|
81,202
|
173,982
|
8.1 %
|
160,972
|
|
Income from
operations
|
16,461
|
(2.8 %)
|
16,942
|
31,141
|
(11.8 %)
|
35,301
|
|
Finance costs (net
interest
expense)
|
1,352
|
(16.3 %)
|
1,615
|
2,753
|
(12.8 %)
|
3,157
|
|
Finance costs (changes
in values
of derivative instruments and
gain/loss on foreign currency)
|
(12,690)
|
6,509.4 %
|
(192)
|
(186)
|
(104.2 %)
|
4,457
|
|
Impairment loss on
loan
receivable
|
-
|
-
|
-
|
3,990
|
100.0 %
|
-
|
|
Share of equity loss
in associates
|
272
|
172.0 %
|
100
|
266
|
87.3 %
|
142
|
|
Income tax
expense
|
5,284
|
48.3 %
|
3,563
|
3,190
|
(40.7 %)
|
5,382
|
|
Net
income2
|
22,243
|
87.6 %
|
11,856
|
21,128
|
(4.7 %)
|
22,163
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$0.54
|
217.6 %
|
$0.17
|
$0.27
|
(3.6 %)
|
$0.28
|
|
Diluted
|
$0.19
|
26.7 %
|
$0.15
|
$0.25
|
(10.7 %)
|
$0.28
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to
EBITDA
|
For the three months
ended
June
30
|
For the six months
ended
June
30
|
|
(thousands of U.S.
dollars, except
where otherwise noted)
|
2022
|
% change
|
2021
|
2022
|
% change
|
2021
|
|
Net income
|
22,243
|
87.6 %
|
11,856
|
21,128
|
(4.7 %)
|
22,163
|
|
Income tax
expense
|
5,284
|
48.3 %
|
3,563
|
3,190
|
(40.7 %)
|
5,382
|
|
Share of equity loss in
associates
|
272
|
172.0 %
|
100
|
266
|
87.3 %
|
142
|
|
Finance costs
(income)
|
(11,338)
|
(896.8 %)
|
1,423
|
6,557
|
(13.9 %)
|
7,614
|
|
Depreciation and
amortization
|
5,082
|
(24.8 %)
|
6,756
|
10,219
|
(24.5 %)
|
13,529
|
|
EBITDA
|
21,543
|
(9.1 %)
|
23,698
|
41,360
|
(15.3 %)
|
48,830
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
For the three months
ended
|
For the six months
ended
|
|
June
30
|
June
30
|
|
(thousands of
dollars, except per
share amounts and where otherwise
noted)
|
2022
|
% change
|
2021
|
2022
|
% change
|
2021
|
|
Cash available for
distribution1 (C$)
|
8,398
|
12.3 %
|
7,475
|
13,889
|
(9.6 %)
|
15,369
|
|
Distributions
(C$)
|
2,401
|
10.2 %
|
2,178
|
4,849
|
11.3 %
|
4,355
|
|
Distributions per
common share (C$)
|
0.08
|
15.0 %
|
0.07
|
0.16
|
15.0 %
|
0.14
|
|
Payout
ratio1
|
28.8 %
|
(1.4 %)
|
29.2 %
|
35.0 %
|
23.7 %
|
28.3 %
|
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 3.68% on the
June 30, 2022, closing price of
C$8.74 per common share.
On June 30, 2022, MFC had
consolidated net working capital of $62.4
million, compared to $67.4
million on December 31,
2021.
MFC's financial statements and management's discussion and
analysis, for the three-month and six-month periods ended
June 30, 2022, will be filed on SEDAR
at www.sedar.com on Thursday, August 11, 2022, 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,
August 11, 2022, at
8:30 am ET to discuss its second quarter financial
results. All interested parties may join the conference call by
dialing 647-484-0475 or 1-888-220-8451 approximately 15 minutes
prior to the call to secure a line.
A live audio webcast of the call will be available at
https://bit.ly/MFC2022Q2. Please connect at least 15 minutes prior
to the conference 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
diverse 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 non-controlling
interests in a specialty surgical hospital in Indiana and 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 is
attributable to the owners of the Corporation and the
non-controlling interest holders.
|
SOURCE Medical Facilities Corporation
