TORONTO, May 13, 2021 /CNW/ - Medical Facilities
Corporation ("Medical Facilities," "MFC," or the "Corporation")
(TSX: DR), reported its financial results today for the first
quarter ended March 31, 2021. All amounts are expressed in
U.S. dollars unless indicated otherwise.
Q1 2021 Summary
(For continuing operations1
compared to Q1 2020)
- Facility service revenue increased 1.3% to $94.0 million;
- Total revenue and other income, including government stimulus
income of $4.1 million, increased
5.8% to $98.1 million;
- Income from operations increased 66.4% to $18.4 million; and,
- Adjusted EBITDA2 increased 35.4% to $25.1 million.
"We are pleased with our first quarter results as case volumes
continue to normalize to pre-COVID-19 levels," said Robert O. Horrar, President and CEO of Medical
Facilities. "As vaccines continue to roll out, we remain optimistic
on our outlook for 2021. We have a strong balance sheet and are
well-positioned to take advantage of the right growth
opportunities."
Financial Results
|
Financial Results
from Continuing Operations
|
For the three
months ended
|
|
March
31
|
|
(thousands of U.S.
dollars, except per share amounts and where otherwise
noted)
|
2021
|
% change
|
2020
|
|
Facility service
revenue
|
93,996
|
1.3%
|
92,762
|
|
Government stimulus
income
|
4,133
|
100.0%
|
-
|
|
Total revenue and
other income
|
98,129
|
5.8%
|
92,762
|
|
Consolidated
operating expenses
|
79,770
|
(2.4%)
|
81,727
|
|
Income from
operations
|
18,359
|
66.4%
|
11,035
|
|
Finance costs (net
interest expense)
|
1,542
|
7.4%
|
1,436
|
|
Finance costs (changes
in values of derivative instruments and gain/loss on foreign
currency)
|
4,649
|
191.4%
|
(5,086)
|
|
Share of equity loss
in associates
|
42
|
(90.8%)
|
458
|
|
Income tax expense
(recovery)
|
1,819
|
578.7%
|
(380)
|
|
Net
income3
|
10,307
|
(29.4%)
|
14,607
|
|
Earnings per
share
|
|
|
|
|
Basic
|
$0.11
|
(63.3%)
|
$0.30
|
|
Diluted
|
$0.11
|
(31.3%)
|
$0.16
|
|
Reconciliation of
Net Income to EBITDA2 and Adjusted
EBITDA
|
For the three
months ended
|
|
March
31
|
|
(thousands of U.S.
dollars, except where otherwise noted)
|
2021
|
% change
|
2020
|
|
Net income
|
10,307
|
(29.4%)
|
14,607
|
|
Income tax expense
(recovery)
|
1,819
|
578.7%
|
(380)
|
|
Share of equity loss
in associates
|
42
|
(90.8%)
|
458
|
|
Finance costs
(income)
|
6,191
|
269.6%
|
(3,650)
|
|
Depreciation and
amortization
|
6,773
|
(4.2%)
|
7,073
|
|
EBITDA
|
25,132
|
38.8%
|
18,108
|
|
Transaction costs on
sale of Unity Medical and Surgical Hospital
|
-
|
(100.0%)
|
450
|
|
Adjusted
EBITDA
|
25,132
|
35.4%
|
18,558
|
|
Distributable Cash
Flow
|
For the three
months ended
|
|
March
31
|
|
(thousands of U.S.
dollars, except per share amounts and where otherwise
noted)
|
2021
|
% change
|
2020
|
|
Cash available for
distribution2 (C$)
|
7,899
|
(10.4%)
|
8,820
|
|
Distributions
(C$)
|
2,177
|
-
|
2,177
|
|
Distributions per
common share (C$)
|
0.07
|
-
|
0.07
|
|
Payout
ratio2
|
27.6%
|
12.2%
|
24.6%
|
During the quarter, MFC paid a quarterly cash dividend of
C$0.07 per common share (or
C$0.28 per share on an annualized
basis), which represented an annualized yield of 3.85% on the March
31, 2021 closing price of $7.28
per common share.
As at March 31, 2021, MFC had
consolidated net working capital of $42.7
million, compared to $45.0
million on December 31,
2020.
Medical Facilities' 2021 first quarter financial statements and
management's discussion and analysis will be issued and filed on
SEDAR at www.sedar.com on Thursday, May 13, 2021 and will also
be available on Medical Facilities' website at
www.medicalfacilitiescorp.ca.
|
1
|
Continuing operations
is defined as consolidated operations excluding Unity Medical and
Surgical Hospital and RRI Mishawaka Hospital, LP which were treated
as discontinued operations in the financial results for the first
quarter ended March 31, 2021 and March 31, 2020.
|
|
2
|
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.sedar.com.
|
|
3
|
Net Income is
attributable to the owners of the Corporation and the
non-controlling interest holders.
|
Notice of Conference Call
Management of MFC will host a conference call today,
May 13, 2021 at 8:30 am ET
to discuss its first quarter financial results. You can join the
call by dialing 647-427-7450 or 1-888-231-8191. A
question-and-answer session will follow the conference call, at
which time the operator will provide instructions for submitting
questions.
A live audio webcast of the call will be available at
http://bit.ly/MFC2021Q1. 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.
SOURCE Medical Facilities Corporation