Medical Facilities Corporation Reports First Quarter 2018 Financial Results
TORONTO, May 10, 2018 /CNW/ - Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Company") (TSX: DR), reported its financial results today for the three-month period ended March 31, 2018. All amounts are expressed in U.S. dollars unless indicated otherwise.
Q1 2018 Summary
(compared to three months ended March 31, 2017)
- On February 1, 2018, the Company completed the acquisition of a controlling interest in seven ambulatory surgery centers ("MFC Nueterra ASCs") for $46.5 million, in partnership with NueHealth, LLC
- Revenue increased by 9.7% to $97.6 million from $89.0 million
- Surgical cases increased by 29.1%
- Income from operations increased by 6.0% to $14.1 million from $13.3 million
- EBITDA1 was flat year-over-year at $20.1 million
- Cash available for distribution1 decreased by 12.6% to Cdn$9.4 million, from Cdn$10.8 million
- Payout ratio1 was 92.2% as compared with 80.9%
- Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
"A key focus in the first quarter of 2018 was that of building out our diversified facility network to ensure the Company continues to deliver reliable shareholder value" said Robert O. Horrar, President and CEO of Medical Facilities. "The addition of seven ambulatory surgical centers to our portfolio contributed strong case volume and revenue to our overall results based on two months of operations since the acquisition. Going forward, we expect the management of these seven ASCs by NueHealth will enhance their results and further complement our core portfolio" concluded Mr. Horrar.
As at March 31, 2018, the Company had consolidated net working capital of negative $7.9 million compared to $33.8 million as at December 31, 2017. The change was due mainly to the cash decline and corporate credit facility debt increase relating to the acquisition of the MFC Nueterra ASCs in the three months ending March 31, 2018. The level of working capital, including financing required to cover any deficiencies, is dependent on the operating performance of the Company and fluctuates from period to period.
Medical Facilities' complete first quarter 2018 financial statements and management's discussion and analysis will be issued and filed on SEDAR at www.sedar.com on Thursday, May 10, 2018 and will be available on the same day on Medical Facilities' website at www.medicalfacilitiescorp.ca.
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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. |
Notice of Conference Call
Management of Medical Facilities will host a conference call today, Thursday, May 10, 2018 at 8:30 am EDT to discuss its first quarter 2018 financial results. You can join the call by dialing 647.427.7450 or 1.888.231.8191. A taped replay of the conference call will be available until Thursday, May 17, 2018 by calling 416.849.0833 or 1.855.859.2056, reference number 2596608. A live audio webcast of the call will be available at https://bit.ly/2w51ZfS.
| Financial Results |
For the three months ended |
||||
| (thousands of U.S. dollars, except per share amounts and where otherwise noted) |
2018 |
2017 |
% change |
||
| Facility service revenue |
97,618 |
89,004 |
9.7% |
||
| Consolidated operating expenses |
83,495 |
75,684 |
10.3% |
||
| Income from operations |
14,123 |
13,320 |
6.0% |
||
| Finance costs (net interest expense) |
3,889 |
4,032 |
(3.6%) |
||
| Finance costs (changes in values of derivative instruments and gain/loss on foreign currency) |
(2,304) |
4,833 |
(147.7%) |
||
| Income tax expense (recovery) |
2,009 |
(284) |
|||
| Net income and comprehensive income for the period |
10,529 |
4,739 |
122.2% |
||
| Attributable to: |
|||||
| Owners of the Corporation |
4,228 |
(516) |
919.4% |
||
| Non-controlling interest |
6,301 |
5,255 |
19.9% |
||
| Earnings (loss) per share |
|||||
| Basic |
0.14 |
(0.02) |
|||
| Diluted |
0.12 |
(0.02) |
|||
| Cash available for distribution (C$) |
9,438 |
10,795 |
(12.6%) |
||
| Distributions (C$) |
8,705 |
8,732 |
(0.3%) |
||
| Cash available for distribution per common share (C$) |
0.31 |
0.35 |
(11.4%) |
||
| Distributions per common share (C$) |
0.28 |
0.28 |
|||
| Payout ratio |
92.2% |
80.9% |
14.0% |
||
| Reconciliation of net income and comprehensive income for the period to EBITDA |
|||||
| Net income and comprehensive income for the period |
10,529 |
4,739 |
122.2% |
||
| Income tax expense (recovery) |
2,009 |
(284) |
|||
| Finance costs |
1,585 |
8,865 |
|||
| Depreciation and amortization |
5,945 |
6,783 |
|||
| EBITDA |
20,068 |
20,103 |
(0.2%) |
||
Normal Course Issuer Bid ("NCIB")
During the three months ended March 31, 2018, the Corporation did not purchase any of its common shares.
As at March 31, 2018, the Company had 30,950,345 common shares outstanding.
To view Medical Facilities Q1 2018 financial statements and notes, please click here: http://files.newswire.ca/940/MFC_Q1_2018.pdf
About Medical Facilities
Medical Facilities, in partnership with physicians, owns surgical facilities in the United States. Medical Facilities' portfolio includes controlling interests in five specialty surgical hospitals located in Arkansas, Indiana, Oklahoma, and South Dakota, and an ambulatory surgery center located in California. In addition, through a partnership with NueHealth LLC, Medical Facilities owns controlling interests in seven ambulatory surgery centers located in Arkansas, Michigan, Missouri, Nebraska, Ohio, Oregon, and Pennsylvania. 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 ambulatory surgery centers specialize in outpatient surgical procedures, with patient stays of less than 24 hours. In addition, Medical Facilities owns a controlling interest in a diversified healthcare service company located in Oklahoma City that provides third-party business solutions to healthcare entities such as physician practices, facilities, and insurance companies. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. 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
Tyler Murphy, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, [email protected]; Craig MacPhail, Investor Relations, NATIONAL Equicom, 416.586.1938, [email protected]
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