PLANTATION, Fla., Dec. 13, 2021 /CNW/ - Akumin Inc. (NASDAQ: AKU)
(TSX: AKU) ("Akumin" or the "Company") announced today its
financial results for the quarter ended September 30, 2021 ("Q3 Fiscal 2021").
Third Quarter 2021 Highlights
- Akumin completed its acquisition of Alliance HealthCare
Services, Inc. ("Alliance") on September 1,
2021, transforming Akumin to the hospital partner of choice
in both Radiology and Oncology solutions.
- The Company operations now span 46 states, serving ~1,000
hospital and healthcare providers, operating over 230 radiology and
oncology fixed site locations, with over 2 million procedures and
treatments per year on pro forma basis.
- Akumin delivered strong quarterly same store volume performance
on a consolidated, pro forma basis:
-
- +8.5% for MRI
- +2.2% for PET/CT
- +8.9% for Total Radiology Procedures
- +10.1% for Oncology Patient Starts
- The Company reported revenue totaling $108.2 million for the third quarter, a
$45.0 million or 71.1% increase over
the third quarter of last year. On a sequential basis, revenue
increased $38.7 million or 55.7% over
second quarter of 2021.
- Akumin generated $18.0 million of
Adjusted EBITDA (as defined below) for the quarter, a $5.8 million or 47.4% increase over the third
quarter of last year. On a sequential basis, Adjusted EBITDA
increased $5.8 million or 47.1% over
second quarter of 2021.
- Based on our results thus far this year, Akumin is adjusting
its 2021 guidance for revenue to range from $421 million to $428
million and for Adjusted EBITDA to range from $65 million to $72
million.
Note that reported results include Alliance results only from
and after September 1, 2021 while
when pro forma results are referenced it assumes Alliance was
acquired at the beginning of the referenced period.
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
|
(Restated)
|
|
(Restated)
|
|
|
|
|
|
|
3-month period
ended
Sep. 30,
2021
|
3-month period
ended
Sep. 30,
2020
|
9-month period
ended
Sep. 30,
2021
|
9-month period
ended
Sep. 30,
2020
|
MRI Scans
|
138
|
83
|
322
|
240
|
PET-CT
Scans
|
11
|
2
|
14
|
4
|
Total
Scans
|
439
|
327
|
1,137
|
904
|
Oncology Patient
Starts
|
1
|
-
|
1
|
-
|
Revenue
|
108,177
|
63,213
|
241,636
|
178,747
|
Adjusted EBITDA
(1)
|
17,968
|
12,191
|
39,381
|
28,559
|
EPS
–Diluted
|
(0.02)
|
(0.10)
|
(0.16)
|
(0.26)
|
(1) See "Non-GAAP Measures"
below.
|
Commenting on the Q3 Fiscal 2021 financial results, Riadh Zine, Chairman and Co-Chief Executive
Officer of the Company, said, "We are pleased with the Q3 results,
which incorporate one month of results from the Alliance
acquisition. Our integration synergy initiatives are already
underway. We have also consolidated the financial planning
for the combined organization, while advancing the digital
transformation of the patient service delivery. With the
increased scale of the company and the depth of the management
team, we expect 2022 to be a milestone year as we continue to build
on this solid foundation."
As a result of filing the Q3 Fiscal 2021 financial results,
Akumin has now filed all continuous disclosure materials required
by applicable Ontario securities
laws through to today's date. As a result, Akumin expects the
previously announced Management Cease Trade Order issued by the
Ontario Securities Commission on August 20,
2021 will automatically be revoked in accordance with its
terms by December 16, 2021, being two
full business days after receipt of the filings by the Ontario
Securities Commission.
Unless otherwise indicated, all amounts are expressed in U.S.
dollars. Certain metrics, including those expressed on an
adjusted or comparable basis, are non-GAAP measures. See
"Non-GAAP Measures" and "Selected Consolidated Financial
Information" of this press release for further details. The
Company's consolidated financial statements for Q3 Fiscal 2021 and
related management's discussion and analysis are available in
Akumin's public disclosure at www.sedar.com and www.sec.gov.
Investor Presentation
Akumin would like to invite interested parties to an investor
presentation to be held on Friday, December
17, 2021 from 8:00 a.m. to 9:00 a.m.
Eastern Time where management will discuss changes to the
Company's business resulting from the closing of the Alliance
HealthCare Services acquisition, as well as Q3 Fiscal 2021
results. To access the conference call, dial toll-free in the
U.S. or Canada 888-394-8218 or,
for international callers, 647-484-0475. A related presentation
will be available from Akumin's public disclosure at www.sedar.com
or www.sec.gov and also from Akumin's website (www.akumin.com) and
at https://akum.in/InvestorPresentation. Participants are
asked to connect at least 10 minutes prior to the beginning of the
call to ensure participation. The webcast archive will be
available for 90 days. A replay of the presentation will also
be available until Friday, December 24,
2021 by calling 647-436-0148 or toll-free 1-888-203-1112,
using passcode number 6766278.
About Akumin
Akumin is a national partner of choice for U.S. hospitals,
health systems and physician groups, with comprehensive solutions
addressing outsourced radiology and oncology service line needs.
With the acquisition of Alliance HealthCare Services, Akumin now
provides (1) fixed-site outpatient diagnostic imaging services
through a network of more than 200 owned and/or operated imaging
locations; and (2) outpatient radiology and oncology services and
solutions to approximately 1,000 hospitals and health systems
across 46 states. By combining clinical and operational expertise
with the latest advances in technology and information systems,
Akumin and its ~4,000 Team Members facilitate more efficient and
effective diagnosis and treatment for patients and their providers
in 46 states. Akumin's imaging procedures include MRI, CT, positron
emission tomography (PET and PET/CT), ultrasound, diagnostic
radiology (X-ray), mammography, and other interventional
procedures; our cancer care services include a full suite of
radiation therapy and related offerings. For more information,
visit www.akumin.com and www.alliancehealthcareservices-us.com.
Non-GAAP Measures
This press release refers to certain non-GAAP measures. These
non-GAAP measures are not recognized measures under United States generally accepted accounting
principles ("GAAP") and do not have a standardized meaning
prescribed by GAAP. There is unlikely to be comparable or
similar measures presented by other companies. Rather, these
non-GAAP measures are provided as additional information to
complement those GAAP measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these non-GAAP measures should not be considered in
isolation nor as a substitute for analysis of our financial
information reported under GAAP. We use non-GAAP financial
measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted
EBITDA Margin" (each as defined below). These non-GAAP measures are
used to provide investors with supplemental measures of our
operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
GAAP measures. We believe the use of these non-GAAP measures, along
with GAAP financial measures, enhances the reader's understanding
of our operating results and is useful to us and to investors in
comparing performance with competitors, estimating enterprise
value, and making investment decisions. We also believe that
securities analysts, investors, and other interested parties
frequently use non-GAAP measures in the evaluation of issuers. Our
management uses non-GAAP measures to facilitate operating
performance comparisons from period to period, to prepare annual
operating budgets and forecasts and to determine components of
management compensation. Definitions and reconciliations of
non-GAAP measures to the relevant reported measures can be found in
our Management's Discussion and Analysis dated December 13, 2021 available in our public
disclosure at www.sedar.com and www.sec.gov.
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) before interest expense
(net), income tax expense (benefit), and depreciation and
amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for
stock-based compensation, asset impairments, settlement and related
costs (recoveries), financial instrument revaluation and related
losses (gains), acquisition-related costs, severance and related
costs, restructuring charges, other losses (gains), deferred rent
expense (credit), and one-time adjustments.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the
total revenue in the period.
Forward-Looking Information
Certain information in this press release constitutes
forward-looking information or forward-looking statements. In
some cases, but not necessarily in all cases, such statements or
information can be identified by the use of forward-looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "is positioned",
"estimates", "intends", "assumes", "anticipates" or "does not
anticipate" or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might", "will" or "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
projections or other characterizations of future events or
circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events. In particular, this
press release contains forward-looking information and statements
regarding the expected revocation of the Management Cease Trade
Order.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by Akumin as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of our management's discussion and analysis
for the quarter ended September 30,
2021 dated December 13, 2021,
which is available at www.sedar.com and www.sec.gov. These factors
are not intended to represent a complete list of the factors that
could affect Akumin; however, these factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking
statements contained in this press release are made as of the date
of this press release, and Akumin expressly disclaims any
obligation to update or alter statements containing any
forward-looking information, or the factors or assumptions
underlying them, whether as a result of new information, future
events or otherwise, except as required by law.
Selected Consolidated Financial Information
|
|
(Restated)
|
|
|
|
|
|
|
|
(in
thousands)
|
Three-month
period
ended
Sep 30, 2021
|
Three-month
period
ended
Sep 30, 2020
|
$ Change
|
% Change
|
Service fees – net of
allowances and discounts
|
107,162
|
62,675
|
44,487
|
71%
|
Other
revenue
|
1,015
|
538
|
477
|
89%
|
Revenue
|
108,177
|
63,213
|
44,964
|
71%
|
|
|
|
|
|
Employee
compensation
|
41,779
|
21,373
|
20,406
|
95%
|
Reading
fees
|
10,797
|
9,507
|
1,290
|
14%
|
Rent and
utilities
|
9,507
|
7,066
|
2,441
|
35%
|
Third party services
and professional fees
|
15,928
|
7,693
|
8,235
|
107%
|
Administrative
|
6,382
|
2,631
|
3,751
|
143%
|
Medical supplies and
other expenses
|
7,103
|
2,775
|
4,328
|
156%
|
Depreciation and
amortization
|
11,286
|
4,359
|
6,927
|
159%
|
Stock-based
compensation
|
785
|
568
|
217
|
38%
|
Operational financial
instruments revaluation and other (gains) losses
|
(68)
|
3,630
|
(3,698)
|
(102%)
|
Interest
expense
|
16,932
|
8,961
|
7,971
|
89%
|
Settlement and related
costs (recoveries)
|
(52)
|
1,611
|
(1,663)
|
(103%)
|
Acquisition related
costs
|
8,784
|
174
|
8,610
|
nmf
|
Other financial
instruments revaluation and other (gains) losses
|
(96)
|
(286)
|
190
|
(66%)
|
Income (loss)
before income taxes
|
(20,890)
|
(6,849)
|
(14,041)
|
205%
|
Income tax expense
(benefit)
|
(22,070)
|
(473)
|
(21,597)
|
nmf
|
Non-controlling
interest
|
2,517
|
835
|
1,682
|
201%
|
Net income (loss)
attributable to common shareholders
|
(1,337)
|
(7,211)
|
5,874
|
(81%)
|
|
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
(in
thousands)
|
Nine-month period
ended
Sep 30, 2021
|
Nine-month period
ended
Sep 30, 2020
|
$ Change
|
% Change
|
Service fees – net of
allowances and discounts
|
238,872
|
176,041
|
62,831
|
36%
|
Other
revenue
|
2,764
|
2,706
|
58
|
2%
|
Revenue
|
241,636
|
178,747
|
62,889
|
35%
|
|
|
|
|
|
Employee
compensation
|
88,688
|
62,072
|
26,616
|
43%
|
Reading
fees
|
31,642
|
27,854
|
3,788
|
14%
|
Rent and
utilities
|
24,853
|
22,884
|
1,969
|
9%
|
Third party services
and professional fees
|
32,068
|
22,914
|
9,154
|
40%
|
Administrative
|
14,044
|
8,880
|
5,164
|
58%
|
Medical supplies and
other expenses
|
13,111
|
7,984
|
5,127
|
64%
|
Depreciation and
amortization
|
20,359
|
13,001
|
7,358
|
57%
|
Stock-based
compensation
|
1,997
|
1,726
|
271
|
16%
|
Operational financial
instruments revaluation and other (gains) losses
|
278
|
(4,482)
|
4,760
|
(106%)
|
Interest
expense
|
34,221
|
24,437
|
9,784
|
40%
|
Settlement and related
costs (recoveries)
|
(394)
|
2,491
|
(2,885)
|
(116%)
|
Acquisition related
costs
|
14,412
|
474
|
13,938
|
nmf
|
Other financial
instruments revaluation and other (gains) losses
|
(3,462)
|
4,189
|
(7,651)
|
(183%)
|
Income (loss)
before income taxes
|
(30,181)
|
(15,677)
|
(14,504)
|
93%
|
Income tax expense
(benefit)
|
(21,999)
|
498
|
(22,497)
|
nmf
|
Non-controlling
interest
|
3,388
|
1,876
|
1,512
|
81%
|
Net income (loss)
attributable to common shareholders
|
(11,570)
|
(18,051)
|
6,481
|
(36%)
|
Reconciliation of Non-GAAP Measures
|
|
(Restated)
|
|
(Restated)
|
|
|
|
|
|
(in
thousands)
|
Three-month
period ended
Sep 30, 2021
|
Three-month
period ended
Sep 30, 2020
|
Nine-month
period ended
Sep 30, 2021
|
Nine-month
period ended
Sep 30, 2020
|
Net income
(loss)
|
1,180
|
(6,376)
|
(8,182)
|
(16,175)
|
Income tax expense
(benefit)
|
(22,070)
|
(473)
|
(21,999)
|
498
|
Depreciation and
amortization
|
11,286
|
4,359
|
20,359
|
13,001
|
Interest
expense
|
16,932
|
8,961
|
34,221
|
24,437
|
EBITDA
|
7,328
|
6,471
|
24,399
|
21,761
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
785
|
568
|
1,997
|
1,726
|
Settlement and related
costs (recoveries)
|
(52)
|
1,611
|
(394)
|
2,491
|
Acquisition-related
costs
|
8,784
|
174
|
14,412
|
474
|
Financial instrument
revaluation and related losses (gains)
|
(50)
|
2,895
|
(3,410)
|
(1,178)
|
Other losses
(gains)
|
20
|
63
|
320
|
283
|
Severance,
restructuring and other charges
|
532
|
-
|
532
|
-
|
Deferred rent
expense(1)
|
621
|
409
|
1,525
|
3,002
|
Adjusted
EBITDA
|
17,968
|
12,191
|
39,381
|
28,559
|
Revenue
|
108,177
|
63,213
|
241,636
|
178,747
|
Adjusted EBITDA
Margin
|
17%
|
19%
|
16%
|
16%
|
(1)
|
Deferred rent expense
is defined as operating lease cost less operating cash flows from
operating leases and adjusted for any prepayments or related
items.
|
View original
content:https://www.prnewswire.com/news-releases/akumin-inc-announces-third-quarter-2021-financial-results-301443663.html
SOURCE Akumin Inc.