TORONTO, March 14,
2024 /CNW/ - Medical Facilities Corporation
("Medical Facilities," "MFC," or the "Corporation") (TSX: DR),
reported its financial results today for the fourth quarter and
year ended December 31, 2023. All
amounts are expressed in U.S. dollars unless indicated
otherwise.
Q4 2023 Highlights
(Compared to Q4 2022 and excluding the divested MFC Nueterra
ambulatory surgery centers)
- Facility service revenue increased 7.8% to $122.2 million
- Surgical cases increased by 4.9%
- Income from operations, excluding the prior year impairment
charge, increased 144.0% to $25.6
million
- Adjusted EBITDA1 increased 97.3% to $30.5 million
- The Corporation repaid $8.0
million on its corporate credit facility and returned an
additional $2.0 million to
shareholders through the purchase of 299,800 of its common shares
under its normal course issuer bid ("NCIB")
"Our surgical volumes were up in the quarter, helping drive
higher revenue and profitability, and finishing off a strong year
overall for MFC," said Jason Redman,
President and CEO of Medical Facilities. "We used our cash flow to
further pay down debt, reducing the balance on our corporate credit
facility by $8 million in the quarter
and $20 million for the year. We also
remained active with our NCIB, returning $2
million to shareholders in the quarter and $7.4 million for the year. As a result of
executing our strategy in 2023, MFC is stronger, more focused, and
better positioned as we look forward to continuing our work in
2024."
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Financial
Results
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For the three months
ended
December
31
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For the year
ended
December
31
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(thousands of U.S.
dollars, except
per share amounts and where
otherwise noted)
|
2023
|
2022
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%
change
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2023
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2022
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%
change
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Facility service
revenue
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122,265
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119,434
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2.4 %
|
445,582
|
424,551
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5.0 %
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Government stimulus
income, net of
reversals
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-
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(12,335)
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100.0 %
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-
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(10,162)
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100.0 %
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Revenue and other
income
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122,265
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107,099
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14.2 %
|
445,582
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414,389
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7.5 %
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Operating expenses,
before
impairment
|
96,755
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97,177
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(0.4 %)
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378,473
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362,901
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4.3 %
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Impairment of
goodwill, other
intangibles and equipment
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-
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16,549
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(100.0 %)
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-
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16,549
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(100.0 %)
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Income from
operations
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25,510
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(6,627)
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484.9 %
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67,109
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34,939
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92.1 %
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Finance costs (changes
in values
of derivative instruments and
gain/loss on foreign currency)
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732
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(9,098)
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108.0 %
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10,010
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(859)
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1,265.3 %
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Finance costs (net
interest
expense)
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1,505
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1,668
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(9.8 %)
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6,156
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5,731
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7.4 %
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Impairment (gain) loss
on loans
receivable
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-
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(1,394)
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100.0 %
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786
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11,990
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(93.4 %)
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Non-operating (gains)
losses
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-
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303
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(100.0 %)
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(2,167)
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574
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(477.5 %)
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Income tax
expense
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2,962
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5,231
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(43.4 %)
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8,325
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5,208
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59.9 %
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Net income
(loss)2
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20,311
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(3,337)
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708.7 %
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43,999
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12,295
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257.9 %
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Earnings (loss) per
share
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Basic
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$0.44
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($0.08)
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650.0 %
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$0.73
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($0.15)
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586.7 %
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Diluted
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$0.39
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($0.26)
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250.0 %
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$0.73
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($0.15)
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586.7 %
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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.
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Reconciliation of
Net Income
(Loss) to EBITDA1 and Adjusted
EBITDA
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For the three months
ended
December
31
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For the year
ended
December
31
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(thousands of U.S.
dollars, except
where otherwise noted)
|
2023
|
2022
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%
change
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2023
|
2022
|
%
change
|
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Net income
(loss)
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20,311
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(3,337)
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708.7 %
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43,999
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12,295
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257.9 %
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Income tax
expense
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2,962
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5,231
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(43.4 %)
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8,325
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5,208
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59.9 %
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Non-operating (gains)
losses
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-
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303
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(100.0 %)
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(2,167)
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574
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(477.5 %)
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Finance costs
(income)
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2,237
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(8,824)
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125.4 %
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16,952
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16,862
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0.5 %
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Depreciation and
amortization
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5,024
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5,359
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(6.3 %)
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21,537
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20,763
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3.7 %
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EBITDA
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30,534
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(1,268)
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2,508.0 %
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88,646
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55,702
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59.1 %
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Impairment of
goodwill, other intangibles and equipment
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-
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16,549
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(100.0 %)
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-
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16,549
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(100.0 %)
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Adjusted
EBITDA
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30,534
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15,281
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99.8 %
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88,646
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72,251
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22.7 %
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Distributable Cash
Flow
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For the three months
ended
December
31
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For the year
ended
December
31
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(thousands of
dollars, except per share
amounts and where otherwise noted)
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2023
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2022
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%
change
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2023
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2022
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%
change
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Cash available for
distribution1 (C$)
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12,769
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9,900
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29.0 %
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30,302
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27,536
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10.0 %
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Distributions
(C$)
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1,991
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2,086
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(4.6 %)
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8,085
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9,302
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(13.1 %)
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Distributions per
common share (C$)
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0.08
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0.08
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-
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0.32
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0.32
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-
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Payout
ratio1
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15.6 %
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21.2 %
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(26.4 %)
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26.7 %
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33.8 %
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(21.0 %)
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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 3.59% on the
December 29, 2023, closing price of
C$8.98 per common share.
On December 31, 2023, MFC had
consolidated net working capital of $19.8
million and cash and cash equivalents of $24.1 million compared to net working capital of
$32.5 million and cash and cash
equivalents of $34.9 million as at
December 31, 2022. During the year
ended December 31, 2023, MFC made
repayments of $20.0 million against
the corporate credit facility and repurchased common shares under
the NCIB for aggregate consideration of $7.4
million.
MFC's financial statements and management's discussion and
analysis, for the three-month and twelve-month periods ended
December 31, 2023, will be filed on
SEDAR+ at www.sedarplus.ca on Thursday, March 14, 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,
March 14, 2024, at
8:30 am ET to discuss its fourth quarter and full-year
2023 financial results. All interested parties may join the
conference call by dialing 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/42uBfkl to receive an instant
automated call back.
A live audio webcast of the call will be available at
https://bit.ly/MFC2023Q4. 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
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.
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1 EBITDA, Adjusted
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.
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2 Net income (loss) is
attributable to the owners of the Corporation and the
non-controlling interest holders.
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SOURCE Medical Facilities Corporation