Revenue Increases 29% Over Prior Year Period
HOUSTON, Aug. 2, 2017
/CNW/ -- Nobilis Health Corp. (NYSE American: HLTH) ("Nobilis"
or the "Company") today announced financial results for the second
quarter ended June 30, 2017.
Second Quarter Highlights
- Revenue was $80.0 million, a
29.2% increase compared to the same quarter last year
- Net income attributable to Nobilis was $1.6 million, compared to $4.8 million in the same quarter last year
- Adjusted EBITDA1 was $10.1
million, a 18.1% increase compared to the same quarter last
year
"Our strong second quarter operating results reflect the
continued focus on our marketing and cost cutting initiatives, as
well as diversification of our revenues," said Harry Fleming, Chief Executive Officer of
Nobilis Health. "Total revenue and adjusted EBITDA for the
second quarter grew by 29% and 18%, respectively, compared to the
same period last year while total operating expenses and corporate
costs as a percent of revenue decreased by 5% and 4%, respectively,
compared to the same period in the prior year. Our businesses
complement one another and as we enter the second half of the year
we see continued revenue growth, particularly in the ancillary
service lines.
"We continued to make solid progress reducing costs in the
second quarter. The cost cuts we set out earlier this year
remain on track and the focus for the second half of the year
continues to be on growing our portfolio of facilities with
improved efficiencies."
Second Quarter 2017 Results
Total revenue for the
second quarter of 2017 increased to $80.0
million, a 29.2% increase over the same period in the prior
year. Total case volume decreased by 266 cases to 4,597 cases, or
5.5%, compared to 4,863 cases in the prior corresponding
period. Revenue per case increased to $17,394, or 36.7%, in the second quarter of 2017,
as compared to $12,723 in the same
period last year. The revenue per case increase was due to
higher acuity cases, growth in our ancillary services and the
addition of the vein business.
Net income attributable to Nobilis for the second quarter of
2017 was $1.6 million or $0.02 per fully diluted share, as compared to
$4.8 million, or $0.06 per fully diluted share, in the second
quarter of 2016. This was impacted by higher income tax,
interest expense and increased profitability from our minority
owned facilities.
Adjusted EBITDA1 for the second quarter of 2017,
which adds back certain non-cash and non-recurring expenses, was
$10.1 million, an increase of 18.1%
over $8.5 million in the same quarter
last year.
Total cash was $29.2 million,
accounts receivable was $110.4
million and total bank debt was $66.9
million as of June 30, 2017, compared to $24.6 million, $125.0
million and $65.5 million,
respectively, at December 31, 2016.
Six Months Ended 2017 Results
Total revenue for the
first six months of 2017 increased to $148.3
million, a 31.1% increase over the same prior year
period. Total case volume for the first six months of 2017
increased by 191 cases to 9,028 cases, or 2.2%, compared to 8,837
cases in the same prior year period. Revenue per case
increased to $16,423 or 28.3%,
compared to $12,803 in the same prior
year period. The increase in total revenue and total case
volume for the first six months of 2017 compared to the prior
corresponding period was due primarily to higher acuity cases,
growth in our ancillary services and the addition of the vein
business.
Net loss attributable to Nobilis for the first six months of
2017 was $0.8 million or $0.01 per fully diluted share, as compared to net
loss attributable to Nobilis of $0.2
million or $0.00 per fully
diluted share, in the same prior year period.
Adjusted EBITDA1 for the first six months of 2017 was
$12.1 million, an increase of 36.2%
compared to Adjusted EBITDA1 of $8.9 million for the same prior year period.
Full Year 2017 Guidance
Nobilis reiterates the full year 2017 guidance originally
provided on March 13, 2017.
- Revenue in the range of $310.0 million
to $325.0 million.
- Adjusted EBITDA1 of $40.0
million to $45.0 million.
Conference Call Information
Nobilis will host a
conference call Thursday, August 3,
2017, at 8:00 a.m. CT (9:00
a.m. ET) to discuss its financial results for the second
quarter of 2017. To participate in the conference call, please
dial (844) 579-6824 in the U.S. and Canada,
and +1 (763) 488-9145 internationally. Please
enter conference ID 60257317. There will be a livestream of the
conference call available
at: http://investors.nobilishealth.com/investors/events-and-presentations/.
About Nobilis Health Corp.
Nobilis
(www.NobilisHealth.com) is a full-service healthcare development
and management company, with 24 locations across Texas and Arizona, including 4 hospitals, 10 ASCs and 10
clinics. In addition, Nobilis partners with an additional 35
facilities across the country. Marketing nine independent brands,
Nobilis deploys a unique patient acquisition strategy driven by
proprietary direct-to-consumer marketing technology, focusing on a
specified set of procedures that are performed at our centers by
local physicians.
Forward Looking Statements
This press release contains
certain forward-looking statements within the meaning of Canadian
and United States securities laws,
including the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995, as
amended. Forward-looking statements include all statements that do
not relate solely to historical or current facts and may be
identified by the use of words such as "may," "believe," "will,"
"expect," "project," "estimate," "anticipate," "plan" or
"continue." These forward-looking statements are based on current
plans and expectations and are subject to a number of risks,
uncertainties and other factors which could significantly affect
current plans and expectations and our future financial condition
and results. These factors, which could cause actual results,
performance and achievements to differ materially from those
anticipated, include, but are not limited to our ability to
successfully maintain effective internal controls over financial
reporting; our ability to implement our business strategy, manage
the growth in our business, and integrate acquired businesses; the
risk of litigation and investigations, and liability claims for
damages and other expenses not covered by insurance; the risk that
payments from third-party payers, including government healthcare
programs, may decrease or not increase as costs increase; adverse
developments affecting the medical practices of our physician
limited partners; our ability to maintain favorable relations with
our physician limited partners; our ability to grow revenues by
increasing case and procedure volume while maintaining
profitability at the Nobilis Facilities; failure to timely or
accurately bill for services; our ability to compete for physician
partners, patients and strategic relationships; the risk of changes
in patient volume and patient mix; the risk that laws and
regulations that regulate payments for medical services made by
government healthcare programs could cause our revenues to
decrease; the risk that contracts are canceled or not renewed or
that we are not able to enter into additional contracts under terms
that are acceptable to us; and the risk of potential decreases in
our reimbursement rates. The foregoing are significant factors we
think could cause our actual results to differ materially from
expected results. However, there could be additional factors
besides those listed herein that also could affect us in an adverse
manner.
We have not undertaken any obligation to publicly update or
revise any forward-looking statements. All of our forward-looking
statements speak only as of the date of the document in which they
are made or, if a date is specified, as of such date. Subject to
any mandatory requirements of applicable law, we disclaim any
obligation or undertaking to provide any updates or revisions to
any forward-looking statement to reflect any change in our
expectations or any changes in events, conditions, circumstances or
information on which the forward-looking statement is based. All
subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the foregoing factors and in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2016, filed
on March 14, 2017, as updated by
other filings with the Securities and Exchange Commission.
Nobilis Health
Corp. Consolidated Balance Sheets June 30,
2017 and December 31, 2016 (in thousands, except share
amounts) (unaudited)
|
|
|
June 30,
2017
|
|
December
31, 2016
|
Assets
|
|
|
|
Current
Assets:
|
|
|
|
Cash
|
$
|
29,225
|
|
$
|
24,572
|
Trade accounts
receivable, net of allowance of $750 at June 30, 2017 and
December 31, 2016
|
110,419
|
|
124,951
|
Medical
supplies
|
3,463
|
|
4,468
|
Prepaid expenses and
other current assets
|
12,999
|
|
10,083
|
Total current
assets
|
156,106
|
|
164,074
|
Property and
equipment, net
|
40,883
|
|
36,723
|
Intangible assets,
net
|
20,769
|
|
19,618
|
Goodwill
|
69,397
|
|
62,018
|
Deferred tax
asset
|
21,532
|
|
21,652
|
Other long-term
assets
|
1,402
|
|
1,350
|
Total
Assets
|
$
|
310,089
|
|
$
|
305,435
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade accounts
payable
|
$
|
14,339
|
|
$
|
22,184
|
Accrued
liabilities
|
33,403
|
|
30,145
|
Current portion of
capital leases
|
3,325
|
|
3,985
|
Current portion of
long-term debt
|
2,127
|
|
2,220
|
Current portion of
convertible promissory note
|
2,500
|
|
—
|
Current portion of
warrant and stock option derivative liabilities
|
—
|
|
3
|
Other current
liabilities
|
9,841
|
|
7,561
|
Total current
liabilities
|
65,535
|
|
66,098
|
Lines of
credit
|
18,000
|
|
15,000
|
Long-term capital
leases, net of current portion
|
12,808
|
|
12,387
|
Long-term debt, net
of current portion
|
46,828
|
|
48,323
|
Convertible
promissory notes, net of current portion
|
4,750
|
|
2,250
|
Warrant and stock
option derivative liabilities, net of current portion
|
715
|
|
899
|
Other long-term
liabilities
|
3,810
|
|
3,999
|
Total
liabilities
|
152,446
|
|
148,956
|
Commitments and
Contingencies
|
|
|
|
Contingently
redeemable noncontrolling interest
|
15,174
|
|
14,304
|
Shareholder's
Equity:
|
|
|
|
Common shares, no par
value, unlimited shares authorized, 77,805,014 shares
issued and outstanding at June 30, 2017 and December 31,
2016
|
|
|
|
Additional paid in
capital
|
223,873
|
|
222,240
|
Accumulated
deficit
|
(79,855)
|
|
(79,042)
|
Total shareholders'
equity attributable to Nobilis Health Corp.
|
144,018
|
|
143,198
|
Noncontrolling
interests
|
(1,549)
|
|
(1,023)
|
Total shareholders'
equity
|
142,469
|
|
142,175
|
Total Liabilities and
Shareholders' Equity
|
$
|
310,089
|
|
$
|
305,435
|
Nobilis Health
Corp. Consolidated Statements of Operations (in
thousands, except share and per share
amounts) (unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Patient
and net professional fees
|
$
|
77,073
|
|
$
|
55,176
|
|
$
|
141,974
|
|
$
|
101,533
|
Contracted marketing revenues
|
1,573
|
|
4,668
|
|
2,952
|
|
8,150
|
Factoring revenues
|
1,316
|
|
2,027
|
|
3,338
|
|
3,461
|
Total revenues
|
79,962
|
|
61,871
|
|
148,264
|
|
113,144
|
Operating
expenses:
|
|
|
|
|
|
|
|
Salaries
and benefits
|
15,417
|
|
12,591
|
|
30,738
|
|
25,168
|
Drugs
and supplies
|
12,579
|
|
12,177
|
|
25,323
|
|
24,197
|
General
and administrative
|
35,150
|
|
27,474
|
|
68,838
|
|
52,483
|
Depreciation and amortization
|
2,728
|
|
1,981
|
|
5,066
|
|
4,510
|
Total operating expenses
|
65,874
|
|
54,223
|
|
129,965
|
|
106,358
|
Corporate
expenses:
|
|
|
|
|
|
|
|
Salaries
and benefits
|
3,623
|
|
2,030
|
|
6,062
|
|
3,312
|
General
and administrative
|
2,595
|
|
4,497
|
|
6,848
|
|
10,408
|
Legal
expenses
|
405
|
|
990
|
|
976
|
|
2,575
|
Depreciation
|
80
|
|
76
|
|
163
|
|
130
|
Total corporate expenses
|
6,703
|
|
7,593
|
|
14,049
|
|
16,425
|
Income (loss) from operations
|
7,385
|
|
55
|
|
4,250
|
|
(9,639)
|
Other expense
(income):
|
|
|
|
|
|
|
|
Change
in fair value of warrant and stock
option derivative liabilities
|
188
|
|
(1,657)
|
|
(187)
|
|
(1,699)
|
Interest
expense
|
1,363
|
|
687
|
|
2,618
|
|
1,371
|
Other
expense (income), net
|
330
|
|
(1,159)
|
|
72
|
|
(2,813)
|
Total other expense (income)
|
1,881
|
|
(2,129)
|
|
2,503
|
|
(3,141)
|
Income (Loss) before
income taxes and noncontrolling interests
|
5,504
|
|
2,184
|
|
1,747
|
|
(6,498)
|
Income tax expense
(benefit), net
|
2,249
|
|
(331)
|
|
698
|
|
(2,249)
|
Net income (loss)
|
3,255
|
|
2,515
|
|
1,049
|
|
(4,249)
|
Net income (loss)
attributable to noncontrolling interests
|
1,670
|
|
(2,291)
|
|
1,862
|
|
(4,090)
|
Net income (loss)
attributable to Nobilis Health Corp.
|
$
|
1,585
|
|
$
|
4,806
|
|
$
|
(813)
|
|
$
|
(159)
|
Net income (loss) per
basic common share
|
$
|
0.02
|
|
$
|
0.06
|
|
$
|
(0.01)
|
|
$
|
—
|
Net income (loss) per
fully diluted common share
|
$
|
0.02
|
|
$
|
0.06
|
|
$
|
(0.01)
|
|
$
|
—
|
Weighted average
shares outstanding (basic)
|
77,805,014
|
|
76,754,950
|
|
77,805,014
|
|
75,780,695
|
Weighted average
shares outstanding (fully diluted)
|
78,115,242
|
|
77,616,886
|
|
77,805,014
|
|
75,780,695
|
Nobilis Health
Corp. Consolidated Statements of Cash Flows (in
thousands) (unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
(loss)
|
$
|
1,049
|
|
$
|
(4,249)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation
and amortization
|
5,229
|
|
4,640
|
Share-based
compensation
|
1,630
|
|
3,504
|
Change in fair
value of warrant and stock option derivative liabilities
|
(187)
|
|
(1,699)
|
Deferred income
taxes
|
120
|
|
(2,770)
|
Gain on sale of
property and equipment
|
—
|
|
(265)
|
Loss (earnings)
from equity method investment
|
108
|
|
(1,078)
|
Amortization of
deferred financing fees
|
233
|
|
66
|
Capital lease
interest payments
|
(594)
|
|
(745)
|
Changes in
operating assets and liabilities, net of assets acquired and
liabilities assumed:
|
|
|
|
Trade
accounts receivable
|
15,279
|
|
14,961
|
Medical
supplies
|
1,300
|
|
(231)
|
Prepaid
expenses and other current assets
|
(2,714)
|
|
(785)
|
Other
long-term assets
|
—
|
|
174
|
Trade
accounts payable and accrued liabilities
|
(5,130)
|
|
(5,801)
|
Other
current liabilities
|
2,280
|
|
352
|
Other
long-term liabilities
|
(303)
|
|
275
|
Distributions from equity method investments
|
—
|
|
1,085
|
Net cash provided by operating activities
|
18,300
|
|
7,434
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchase of property and equipment
|
(3,208)
|
|
(1,717)
|
Purchase of equity method investment
|
—
|
|
(609)
|
Note receivable, net
|
—
|
|
150
|
Acquisition, net of cash acquired
|
(7,883)
|
|
—
|
Net cash used for investing activities
|
(11,091)
|
|
(2,176)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Distributions to noncontrolling interests
|
(1,520)
|
|
(4,964)
|
Proceeds from exercise of stock options
|
—
|
|
2,067
|
Payments on capital lease obligations
|
(2,214)
|
|
(2,017)
|
Proceeds from line of credit
|
3,000
|
|
3,500
|
Payments on debt
|
(1,356)
|
|
(688)
|
Deferred financing fees
|
(466)
|
|
—
|
Net cash used for financing activities
|
(2,556)
|
|
(2,102)
|
|
|
|
|
NET INCREASE IN
CASH
|
4,653
|
|
3,156
|
CASH — Beginning of
period
|
24,572
|
|
15,666
|
CASH — End of
period
|
$
|
29,225
|
|
$
|
18,822
|
Nobilis Health
Corp.
Reconciliation of
Non-GAAP Financial Measures
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Nobilis Health Corp.
|
|
$
|
1,585
|
|
$
|
4,806
|
|
$
|
(813)
|
|
$
|
(159)
|
Interest
|
|
1,363
|
|
687
|
|
2,618
|
|
1,371
|
Income tax expense
(benefit), net
|
|
2,249
|
|
(331)
|
|
698
|
|
(2,249)
|
Depreciation and
amortization
|
|
2,808
|
|
2,057
|
|
5,229
|
|
4,640
|
EBITDA
|
|
$
|
8,005
|
|
$
|
7,219
|
|
$
|
7,732
|
|
$
|
3,603
|
|
|
|
|
|
|
|
|
|
Non-cash compensation
expenses
|
|
$
|
570
|
|
$
|
1,668
|
|
$
|
1,835
|
|
$
|
3,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant and stock option derivative liabilities
|
|
188
|
|
(1,657)
|
|
(187)
|
|
(1,699)
|
Acquisition
expenses
|
|
558
|
|
818
|
|
1,192
|
|
1,183
|
Non-recurring
expenses
|
|
732
|
|
462
|
|
1,495
|
|
2,271
|
Adjusted
EBITDA1
|
|
$
|
10,053
|
|
$
|
8,510
|
|
$
|
12,067
|
|
$
|
8,862
|
|
|
|
|
|
|
|
|
|
1 Use of Non-GAAP Financial
Measures
Adjusted EBITDA is defined as earnings before interest,
income taxes, depreciation and amortization, non-cash compensation
expenses, change in fair value of warrant and stock option
derivative liabilities, acquisition expenses, and non-recurring
expenses. Adjusted EBITDA should not be considered a measure of
financial performance required by accounting principles generally
accepted in the United States of
America ("U.S. GAAP"). Items excluded from Adjusted EBITDA
are significant components in understanding and assessing financial
performance. Adjusted EBITDA is an analytical indicator used by
management and the health care industry to evaluate company
performance, allocate resources and measure leverage and debt
service capacity. Adjusted EBITDA should not be considered in
isolation or as an alternative to net income, cash flows generated
by operations, investing or financing activities, or other
financial statement data presented in the consolidated financial
statements as indicators of financial performance or liquidity.
Because Adjusted EBITDA is not a measurement determined in
accordance with U.S. GAAP and is thus susceptible to varying
calculations, Adjusted EBITDA as presented may not be comparable to
other similarly titled measures of other companies.
Contact Information:
Tuan
Tran
Vice President, Investor Relations
IR@nobilishealth.com
346-207-6342
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SOURCE Nobilis Health Corp.