WELL Health Provides Corporate Update Reflecting Continued Strength in its US Businesses
- WELL's US based virtual services businesses, Circle Medical and Wisp, accelerated to 124% organic growth on a YoY basis in fiscal Q3 exceeding an annualized revenue run rate of US$100 million on a combined basis. Both businesses also operated profitably on an Adjusted EBITDA basis in Q3.
- CRH has acquired Grand Canyon Anesthesia which brings more than 100 credentialed providers into WELL's practitioner-centric business. The acquisition is expected to generate over US$16 million in annual revenue and Adjusted EBITDA of more than US$2 million.
- WELL expects to preview its full Q3 patient visit metrics in the coming weeks prior to its Q3 earnings disclosure.
VANCOUVER, BC, Oct. 17, 2022 /CNW/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (the "Company" or "WELL") — a practitioner focused digital health company that is positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to provide several key business updates including updates on its US based businesses Circle Medical Inc. ("Circle Medical"), Wisp Inc. ("Wisp") and CRH Medical Corp. ("CRH").
Hamed Shahbazi, CEO and Founder of WELL said, "Despite an increasingly difficult macroeconomic backdrop, the team at WELL continues to execute on our disciplined growth strategy reflecting strong overall organic and inorganic growth achievements. While both our US and Canadian businesses are healthy and growing, we felt that especially in light of the strong US dollar currency, we would highlight the tremendous growth and success we are experiencing in the US market. We look forward to providing further information on our Q3 clinical patient visits for both our US and Canadian businesses in the coming weeks. Our business has never been stronger and more resilient as we remain committed to demonstrating sustained healthy operating Adjusted EBITDA and organic growth metrics for the entire enterprise. We continue to demonstrate that our efforts to tech-enable and support healthcare providers is working and generating real results."
Circle Medical and Wisp, WELL's US-based virtual service businesses continue to demonstrate strong organic growth in Q3 2022. The combined annualized run-rate revenue of these two businesses exceeded US$100 million as of the end of September 30, 2022, having achieved WELL's previous guidance for annualized revenue run-rate of US$100 million by the end of 2022. Circle Medical achieved 116,989 patient visits in the third quarter, while Wisp achieved 186,952 asynchronous consultations in the same quarter. These achievements are record highs for the respective businesses and represents year-over-year growth rates of over 230% and over 50% respectively.
Eva Fong, CFO of WELL commented, "We are very pleased with the performances of our US virtual services businesses, Circle and Wisp, which achieved our previously provided guidance for annualized revenue run-rate of US$100 million, one quarter earlier than planned. Please keep in mind that we started the year in Q1 2022 at approximately US$70 million annualized revenue run rate. This is a major accomplishment, and I would like to recognize the outstanding effort, skill, and leadership by our teams at Circle Medical and Wisp to make this happen."
WELL's wholly owned subsidiary, CRH, continued to execute its tuck-in M&A strategy in Q3 2022. In September 2022, CRH completed the acquisition of Grand Canyon Anesthesia ("GCA"), a well-established group headquartered in Phoenix, Arizona and consisting of over 100 anesthesia providers supporting the delivery of anesthesia for more than 50,000 surgical cases annually. This acquisition marks CRH's entry into its 18th state of service, further supporting its disciplined growth and diligent focus on the provision of services while staying in the ambulatory surgical setting. GCA is expected to generate more than US16 million in annual revenue and US$2 million in shareholder EBITDA.
Jay Kreger, CEO of CRH commented "We are very pleased to welcome the team at GCA. This is one of CRH's largest single acquisitions ever, spanning over 7 sites and was in-line with our stringent capital allocation strategy. GCA also offers anesthesia services outside of the gastrointestinal procedures including orthopedic, spine, pain, dental, ENT and ophthalmology procedures. Furthermore, GCA expands CRH's geographic presence into the western United States, potentially acting as a gateway for expansion to other parts of western United States."
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
WELL is a practitioner focused digital healthcare company whose overarching objective is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end to end practice management tools inclusive of virtual care and digital patient engagement capabilities as well as Electronic Medical Records (EMR), Revenue Cycle Management (RCM) and data protection services. WELL uses this platform to power healthcare practitioners both inside and outside of WELL's own omni-channel patient services offerings. As such, WELL owns and operates Canada's largest network of outpatient medical clinics serving primary and specialized healthcare services and is the provider of a leading multi-national, multi-disciplinary telehealth offering. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on OTCQX under the symbol "WHTCF". To learn more about the Company, please visit: www.well.company.
This news release contains "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including without limitation the expected revenue associated with the assets, including its annualized run rate revenue, and clinic future growth. Forward-Looking Information is based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking Information involves known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by such Forward Looking Information and, which are not guarantees of future performance. WELL's statements expressed or implied by Forward Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such statements. Forward-Looking Information is qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
SOURCE WELL Health Technologies Corp.
Tyler Baba, Investor Relations Manager, [email protected], 604-628-7266
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