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- Achieved record quarterly revenue and adjusted EBITDA<\/b><\/li>\n
- Total medical services revenue increased by 22% to $14.2 million in the quarter<\/b><\/li>\n
- Adjusted EBITDA margin improved to 7.3% vs. 4.5% in the comparable prior year quarter<\/b><\/li>\n
- Building on strong quarterly results by working to expand network and service offerings<\/b><\/li>\n<\/ul>\n
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TORONTO–(BUSINESS WIRE<\/a>)–
\nNeuPath Health Inc. (TSXV:NPTH), (\u201cNeuPath\u201d or the \u201cCompany\u201d), owner and operator of a network of clinics that deliver category-leading treatment for chronic pain, as well as spinal injuries, sports-related injuries, and concussions, today announced its financial and operating results for the three months ended March 31, 2021. All figures are in Canadian dollars, unless otherwise noted.\n<\/p>\nFinancial and Operational Highlights <\/b><\/p>\n
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- \nTotal medical services revenue increased by 22% to $14.2 million for the three months ended March 31, 2021 compared to $11.6 million in Q1 2020;\n<\/li>\n<\/ul>\n
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- \nAdjusted EBITDA(1) <\/sup>improved to $1.0 million or 7.3% of revenue for the three months ended March 31, 2021 compared to $0.5 million or 4.5% of revenue in Q1 2020; and\n<\/li>\n<\/ul>\n
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- \nOn February 8, 2021, the Company announced the acquisition of HealthPointe Medical Centres Ltd. (\u201cHealthPointe\u201d), a leading pain, spine and sport medicine clinic located in Edmonton, Alberta. HealthPointe provides a strong platform to build out the Company\u2019s network and operations in Western Canada. The Company is currently working on opportunities to build out its network in Alberta and the rest of Canada.\n<\/li>\n<\/ul>\n
\n\u201cAcross our network, despite continuing to operate under pandemic protocols, our physicians, nurses, and other health care providers continue to provide critical care to patients. The significant revenue growth this quarter was driven by both the acquisition of HealthPointe and organic growth from capacity utilization improvements across our clinic network. We also saw strength in our employer and insurance carrier channels; revenue from independent medical assessments increased over 50% this quarter versus the prior year period,\u201d said Grant Connelly, CEO of NeuPath. \u201cThe significant improvement in adjusted EBITDA margins also demonstrates the operating leverage in the business; incremental revenue gains led to fairly significant improvements in profitability. These results are also confirmation of our strategy to identify strategic, platform acquisitions and utilize the Company\u2019s evidence-based approach and technology to unlock access to care for patients and drive strong financial performance for shareholders.\u201d\n<\/p>\n
Q1 2021 Financial Results <\/b><\/p>\n
\nTotal medical services revenue was $14.2 million for the three months ended March 31, 2021 compared to $11.6 million for the three months ended March 31, 2020. Clinic revenue for the current quarter increased by 25% to $13.5 million compared to $10.8 million in the comparative quarter. The increase in total medical services revenue was related to the acquisition of HealthPointe and improvement in capacity utilization across the Company\u2019s clinic network.\n<\/p>\n
\nTotal operating expenses increased to $14.4 million for the three months ended March 31, 2021 compared to $12.2 million for the three months ended March 31, 2020. The increase was related to the acquisition of HealthPointe, offset by lower interest costs.\n<\/p>\n
\nFor the three months ended March 31, 2021, adjusted EBITDA increased to $1.0 million compared to $0.5 million in the comparative quarter due to an improvement in revenue and gross margins.\n<\/p>\n
(1)\u00a0<\/sup>Non-International Financial Reporting Standard (\u201cIFRS\u201d) financial measure defined by the Company below.\n<\/p>\n
Non-IFRS Financial Measures<\/b><\/p>\n
\nThis news release contains financial terms (such as adjusted EBITDA) that are not considered in IFRS. Such financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Company. The Company’s determination of these non-IFRS measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS. These financial measures are included because management uses this information to analyze operating performance and liquidity.\n<\/p>\n
Adjusted EBITDA <\/span><\/i><\/p>\n
\nManagement believes adjusted EBITDA is a useful supplemental measure to determine the Company\u2019s ability to generate cash available for working capital, capital expenditures, debt repayments, interest expense and income taxes.\n<\/p>\n
\nEBITDA refers to net income (loss) determined in accordance with IFRS, before depreciation and amortization, net interest expense (income) and income tax expense (recovery). The Company defines adjusted EBITDA as EBITDA, plus stock-based compensation expense, restructuring, fair value adjustments, listing expense and transaction costs, impairment and finance income.\n<\/p>\n
\nA reconciliation of adjusted EBITDA to net income (loss) is as follows:\n<\/p>\n
- \nOn February 8, 2021, the Company announced the acquisition of HealthPointe Medical Centres Ltd. (\u201cHealthPointe\u201d), a leading pain, spine and sport medicine clinic located in Edmonton, Alberta. HealthPointe provides a strong platform to build out the Company\u2019s network and operations in Western Canada. The Company is currently working on opportunities to build out its network in Alberta and the rest of Canada.\n<\/li>\n<\/ul>\n
- \nAdjusted EBITDA(1) <\/sup>improved to $1.0 million or 7.3% of revenue for the three months ended March 31, 2021 compared to $0.5 million or 4.5% of revenue in Q1 2020; and\n<\/li>\n<\/ul>\n
- Total medical services revenue increased by 22% to $14.2 million in the quarter<\/b><\/li>\n