Premier Health Reports FY2022 Second Quarter Results

Premier Health Reports FY2022 Second Quarter Results

Premier Health of America Inc. (TSXV: PHA ) (the " Corporation "), a leading Canadian Healthtech company, announces it has filed its Condensed Interim Consolidated Financial Statements and Management Discussion and Analysis for its second quarter ended March 31, 2022.

Summary

  • The Corporation had revenues of $17.6M for the 3-month period compared to $17.0M for the same period in FY2021, representing a 3.4% increase mainly attributable to organic growth over the period.
  • The 24.7% gross margin for the quarter was close to the Corporation's 25% target.
  • EBITDA ( 1) for the quarter was $0.5M compared to $1.6M for the same period in FY2021.
  • Net income was -$0.8M compared to $0.3M for the same period in FY2021.

"We invested in our capacity to manage a wider geographical footprint" Said Martin Legault, CEO of Premier Health. "We believe these investments made upstream of contemplated acquisitions will facilitate integration and leverage operations in other provinces."

Second Quarter 2022 Results Highlights

March 31, 2022
(3 months)
March 31, 2021
(3 months)
March 31, 2022
(6 months)
March 31, 2021
(6 months)
Revenues $   17,583,869 $   17,003,358 $   35,999,588 $   30,363,667
From last period +3.4% +18.6%
Gross margin $   4,335,299 $   4,110,981 $   8,755,848 $   7,348,473
From last period +5.5% +19.2%
EBITDA (1) $   466,798 $   1,   582,256 $   1,952   ,448 $   2,900,975
From last period - 70.5% -32.7%
Net Income -$   770,594 $   338,508 -$   459,305 $   772,452
-327.6% -159.5%

(1) Adjusted EBITDA before non-recurring items

Business Highlights

  • The Corporation provided 227,748 hours of services during the quarter.
  • Revenues were slightly below budget due to Omicron variant related absenteeism and a variation in Premier Soin's unit business mix.
  • EBITDA was impacted by an increase in administrative expenses including an increase in management and technology expenses, higher than expected transport division maintenance costs, and acquisition expenses related to Canadian Health Care Agency.
  • The Corporation completed the acquisition of Canadian Health Care Agency on April 19 which is expected to add approximately $24M in annual turnover going forward.

Healthcare workforce solutions

During the second quarter, our Premier Soin business unit experienced a revenue contraction of 8% while Code Bleu's business unit revenue remained stable. The two subsidiaries offer similar services across the province of Quebec with different pricing strategy and resource profiles that sometimes lead to positive or negative revenue generation discrepancies. The decrease in revenue at Premier Soin was mainly caused by a lower demand for longer term replacement periods and a higher demand for short-term daily shifts. This business mix often results in a higher turnover rate and, by extension, a higher risk of not being able to fulfill every request for resources on short notice due to personnel availability. We believe this temporary impact is related to an adjustment period in the receding pandemic. We already experienced a shift from this situation in April but still expect a certain level of volatility in the near future. The Nordik business unit continued its organic growth steadily during the quarter with an increased deployment of resources in Northern Ontario, Northern Quebec, and James Bay. During the quarter, Premier Soin Nordik signed contractual arrangements with 6 additional hospitals. This follows the five contracts that were signed earlier in the first quarter in Northern Ontario.

Non-ambulatory transport services

The Corporation is still experimenting supply chain issues, which resulted in new vehicle deliveries being further postponed. The first 3 new transport units which delivery was postponed to March 2022 are now scheduled to be delivered only at the end of the third quarter. This resulted in higher-than-expected maintenance costs that are impacting EBTDA margins and net income.

About Premier Health

Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary PSweb platform to lead the healthcare services sector digital transformation to provide patients with faster, cheaper and more accessible care services.

Non-GAAP Measures

Earnings before interest, taxes, depreciation and amortization ("EBITDA"), is calculated as the net profit (loss), before non-recurring items excluding acquisition and transaction costs, non-cash expenses (including loss from disposal of assets, impairments, amortization and depreciation), interest expense, net of interest income and income tax expense.

For Further Information Please Contact:

Mr. Jean-Robert Pronovost
Vice-President, Corporate Development
Premier Health of America Inc.
jrpronovost@premierhealth.ca / 1 800 231 9916

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Corporation's common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Corporation assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. These factors and others are more fully discussed in the filings of the Corporation with Canadian securities regulatory authorities available at www.sedar.com.


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Solventum Announces Sale of its Purification & Filtration Business to Thermo Fisher Scientific Inc. for $4.1B

  • Accelerates Solventum's business transformation and sharpens focus on strategic areas for growth to deliver long-term shareholder value

  • Strengthens balance sheet with proceeds to be used primarily for debt paydown

Solventum (NYSE: SOLV) today announced it has entered into a definitive agreement to sell its Purification & Filtration 1 business to Thermo Fisher Scientific Inc. (NYSE: TMO) (" Thermo Fisher ") for $4.1 billion . Solventum expects the transaction to be neutral to 2025 EPS and expects an estimated $3.4 billion in net proceeds, which it intends to use primarily to pay down debt. The transaction is expected to be completed by the end of 2025, subject to regulatory approval and customary closing conditions.

Solventum Logo (PRNewsfoto/3M Healthcare US Opco LLC)

"The sale of the Purification & Filtration business is part of phase three of our transformation plan and follows a thorough analysis of the value and strategic alignment of our businesses," said Bryan Hanson , Solventum CEO. "This transaction will enhance our strategic focus and key metrics while reducing leverage and significantly strengthening our balance sheet. It also enables us to invest in the innovation, programs and talent we need to execute our mission and deliver shareholder value."

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Morgan Stanley & Co. LLC, Perella Weinberg Partners and J.P. Morgan Securities LLC served as financial advisors to Solventum, and Cleary Gottlieb Steen & Hamilton served as legal advisor to Solventum.

1 Other than for its operations in Belgium , France and Ireland , for which Thermo Fisher granted a binding offer to Solventum

About Solventum  
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers' toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients' lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com .

Forward-Looking Statements
This news release contains forward-looking information about Solventum's financial results, estimates, and business prospects that involve substantial risks and uncertainties. In particular, statements regarding the future performance of Solventum, including guidance for 2024, are forward-looking statements. You can identify these statements by the use of words such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) the effects of, and changes in, worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises, and other events beyond Solventum's control; (2) operational execution risks; (3) damage to our reputation or our brands; (4) risks from acquisitions, strategic alliances, divestitures and other strategic events; (5) Solventum's business dealings involving third-party partners in various markets; (6) Solventum's ability to access the capital and credit markets and changes in Solventum's credit ratings; (7) exposure to interest rate and currency risks; (8) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (9) reduction in customers' research budgets or government funding; (10) the timing and market acceptance of Solventum's new product and service offerings; (11) ongoing working relationships with certain key healthcare professionals; (12) changes in reimbursement practices of governments or private payers or other cost containment measures; (13) Solventum's ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions, and disruptive factors; (14) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, Foreign Corrupt Practices Act (FCPA) and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (15) potential liabilities related to a broad group of perfluoroalkyl and polyfluoroalkyl substances, collectively known as "PFAS"; (16) risks related to the highly regulated environment in which Solventum operates; (17) risks associated with product liability claims; (18) climate change and measures to address climate change; (19) security breaches and other disruptions to information technology infrastructure; (20) Solventum's failure to obtain, maintain, protect, or effectively enforce its intellectual property ("IP") rights; (21) pension and postretirement obligation liabilities; (22) any failure by the 3M Company (" 3M ") to perform any of its obligations under the various separation agreements in connection with the separation from 3M (the "Spin-Off"); (23) any failure to realize the expected benefits of the Spin-Off, and/or that the Spin-Off will not be completed within the expected time frame, on the expected terms or at all; (24) a determination by the IRS or other tax authorities that the distribution or certain related transactions should be treated as taxable transactions; (25) expected financing transactions undertaken in connection with the separation and risks associated with additional indebtedness; (26) the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the separation will exceed Solventum's estimates; and (27) the impact of the Spin-Off on its businesses and the risk that the Spin-Off may be more difficult, time-consuming or costly than expected, including the impact on its resources, systems, procedures and controls, diversion of management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located under "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Solventum's periodic reports on file with the U.S. Securities & Exchange Commission. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

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SOURCE Solventum

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