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.
- 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 $0.3M for the same period in FY2021.
"We invested in our capacity to manage a wider geographical footprint" Said Martin Legault, CEO of Premier Health. "We believe these investments made upstream of contemplated acquisitions will facilitate integration and leverage operations in other provinces."
Second Quarter 2022 Results Highlights
| March 31, 2022 |
| March 31, 2021 |
| March 31, 2022 |
| March 31, 2021 |
|Revenues||$ 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|
(1) Adjusted EBITDA before non-recurring items
- 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.
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.
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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.