Medical Facilities Corporation Reports First Quarter 2021 Financial Results

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 income^3	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 EBITDA^2 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 distribution^2 (C$)	7,899	(10.4%)	8,820
Distributions (C$)	2,177	-	2,177
Distributions per common share (C$)	0.07	-	0.07
Payout ratio^2	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

David Watson, Chief Financial Officer, Medical Facilities Corporation, [phone] or 1-877-402-7162, [email protected]; Trevor Heisler, Investor Relations, NATIONAL Capital Markets, [phone], [email protected]

Related Links

http://www.medicalfc.com