Akumin Inc. Announces Fiscal 2017 Financial Results

Published: Apr 02, 2018

TORONTO, April 2, 2018 /CNW/ - Akumin Inc. (TSX:AKU.U) ("Akumin" or the "Corporation") announced today its financial results for the quarter ended December 31, 2017 ("December 2017 Quarter") and the fifteen-month period ended December 31, 2017 ("Fiscal 2017"). Note that, in Fiscal 2017, the Corporation changed its year-end from September 30 to December 31. As a result, the Corporation is reporting a one-time, fifteen-month transition year, covering the period from October 1, 2016 to December 31, 2017. To facilitate period-to-period comparisons, the comparative period for December 2017 Quarter is the three-months ended December 31, 2016 and the comparative period for Fiscal 2017 is the twelve-months ended September 30, 2016 ("Fiscal 2016").

    Summary Consolidated Financial Results (in thousands, except for per share amounts)


                                                 15-months ended            12-months ended  3-months ended   3-months ended
                                                                                                               Dec. 31, 2016
                                                   Dec. 31, 2017              Sep. 30, 2016   Dec. 31, 2017
                                                   =============              =============   =============

    Revenue                                              110,746                      46,401           37,585            15,227

    EBITDA (1)                                             3,476                       4,381            6,142             1,397

    Adjusted EBITDA
     (1)                                                 16,572                       6,021            8,272             1,697

    Net Income (loss)
     attributable to
     common
     shareholders                                        (8,504)                    (1,986)           2,579             (342)

    Basic earnings
     (loss) per share                                     (0.27)                     (0.09)            0.06            (0.01)

    Diluted earnings
     (loss) per share                                     (0.27)                     (0.09)            0.06            (0.01)
    =================                                      =====                       =====             ====             =====
    (1) See "Non-Financial
     Measures" below.

 

Please note that the Corporation's consolidated financial statements for Fiscal 2017, related management's discussion and analysis, annual information form, and management information circular are available under Akumin's profile on SEDAR (www.sedar.com).

Commenting on the Fiscal 2017 financial results, Riadh Zine, President and Chief Executive Officer of the Corporation, said, "Fiscal 2017 was a seminal year for Akumin. We continued our investment in our operating infrastructure and our people, and we executed on our go public strategy. Our strong December 2017 Quarter and Fiscal 2017 performance demonstrates our ability to drive consistent profitable growth. Looking ahead, we remain focused on increasing our revenues organically and through acquisitions that fit our strategic criteria, and on reducing our expenses with continued implementation of operating efficiencies. Above all, we believe our commitment to provide customized care, convenience and consistency, all at competitive rates for our customers, has enabled us to deliver good results and will continue to distinguish us going forward."

At the end of Fiscal 2017, the Corporation had a total of 74 medical diagnostic imaging facilities throughout the United States, as compared to 39 facilities which existed at the end of Fiscal 2016.

Unless otherwise indicated, all amounts are expressed in U.S. dollars. Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures. See "Non-IFRS Measures" and "Selected Consolidated Financial Information" of this press release for further details.

About Akumin

Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of 74 owned and/or operated imaging centers located in Florida, Pennsylvania, Delaware, Texas, Illinois and Kansas. By combining our clinical expertise with the latest advances in technology and information systems, our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under the International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these non-IFRS measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these non-IFRS measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS financial measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin". These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our Management's Discussion and Analysis dated March 29, 2018 available at www.sedar.com.

We define such non-IFRS measures as follows:

"EBITDA" means net income (loss) attributable to shareholders of the Corporation before interest expense (net), income tax expense (recovery) and depreciation and amortization.

"Adjusted EBITDA" means EBITDA as further adjusted for stock-based compensation, impairment of property and equipment, provisions for certain bad debts, gains (losses) in the period, settlement costs, provisions and public offering and acquisition-related costs.

"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the total revenue in the period.

Forward-Looking Information

Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of our Annual Information Form and Management's Discussion and Analysis, each dated March 29, 2018 available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

Selected Consolidated Financial Information

                                    3-months ended     3-months ended     15-months ended      12-months ended
                                    --------------     --------------     ---------------      ---------------

    (in thousands)              Dec 31, 2017       Dec 31, 2016        Dec 31, 2017         Sep 30, 2016
    -------------               ------------       ------------        ------------         ------------

    Service fees - net of
     contractual allowances and
     discounts                              36,679              14,319              107,490                45,126
    ---------------------------             ------              ------              -------                ------

    Other Revenue                              906                 908                3,256                 1,275
    -------------                              ---                 ---                -----                 -----

    Total revenue                           37,585              15,227              110,746                46,401
    -------------                           ------              ------              -------                ------


    Provision for bad debts                  2,347                 573                5,273                 1,821
    -----------------------                  -----                 ---                -----                 -----

    Employee compensation                   11,354               5,674               38,468                15,721
    ---------------------                   ------               -----               ------                ------

    Reading fees                             4,598               2,240               15,582                 7,216
    ------------                             -----               -----               ------                 -----

    Rent and utilities                       3,261               2,037               12,987                 5,328
    ------------------                       -----               -----               ------                 -----

    Third party services and
     professional fees                       2,798               1,464                8,832                 5,623
    ------------------------                 -----               -----                -----                 -----

    Administrative                           2,156                 677                5,776                 2,149
    --------------                           -----                 ---                -----                 -----

    Medical supplies and other
     expenses                                1,199                 864                5,101                 2,522
    --------------------------               -----                 ---                -----                 -----

    Depreciation and
     amortization                            2,063                 853                6,480                 3,213
    ----------------                         -----                 ---                -----                 -----

    Stock-based compensation                   570                 231                3,242                   714
    ------------------------                   ---                 ---                -----                   ---

    Interest expense                         1,398                 876                5,376                 3,152
    ----------------                         -----                 ---                -----                 -----

    Provision for other bad
     debts related to
     transition services
     agreement                                   -                  -                   -                  313
    -----------------------                    ---                ---                 ---                  ---

    Impairment of property and
     equipment                                 341                 130                  601                   354
    --------------------------                 ---                 ---                  ---                   ---

    Settlement costs
     (recoveries)                            (221)                  -               (192)                  134
    ----------------                          ----                 ---                ----                   ---

    Provisions                                   -                 25                  725                 1,652
    ----------                                 ---                ---                  ---                 -----

    Acquisition-related costs                  714                   -               4,256                   125
    -------------------------                  ---                 ---               -----                   ---

    Public offering costs                    1,021                   -               1,520                     -
    ---------------------                    -----                 ---               -----                   ---

    Financial instruments
     revaluation, foreign
     exchange (gain) loss, and
     other (gains) losses                    (295)               (85)               2,944               (1,651)
    --------------------------                ----                 ---                -----                ------

    Income (loss) before income
     taxes                                   4,281               (332)             (6,225)              (1,985)
    ---------------------------              -----                ----               ------                ------

    Income tax provision                       102                  10                  124                     1
    --------------------                       ---                 ---                  ---                   ---

    Non-controlling interests                1,600                   -               2,155                     -
    -------------------------                -----                 ---               -----                   ---

    Net income (loss) and
     comprehensive income
     (loss) for period
     attributable to
     shareholders of Akumin                  2,579               (342)             (8,504)              (1,986)
    -----------------------                  -----                ----               ------                ------

                                    3-months ended     3-months ended     15-months ended      12-months ended
    Adjusted EBITDA
    ---------------

    (in thousands)              Dec 31, 2017       Dec 31, 2016        Dec 31, 2017         Sep 30, 2016
    -------------               ------------       ------------        ------------         ------------

    Service fees - net of
     contractual allowances and
     discounts                              36,679              14,319              107,490                45,126
    ---------------------------             ------              ------              -------                ------

    Other Revenue                              906                 908                3,256                 1,275
    -------------                              ---                 ---                -----                 -----

    Total revenue                           37,585              15,227              110,746                46,401
    -------------                           ------              ------              -------                ------


    Provision for bad debts                  2,347                 573                5,273                 1,821
    -----------------------                  -----                 ---                -----                 -----

    Employee compensation                   11,354               5,674               38,468                15,721
    ---------------------                   ------               -----               ------                ------

    Reading fees                             4,598               2,240               15,582                 7,216
    ------------                             -----               -----               ------                 -----

    Rent and utilities                       3,261               2,037               12,987                 5,328
    ------------------                       -----               -----               ------                 -----

    Third party services and
     professional fees                       2,798               1,464                8,832                 5,623
    ------------------------                 -----               -----                -----                 -----

    Administrative                           2,156                 677                5,776                 2,149
    --------------                           -----                 ---                -----                 -----

    Medical supplies and other
     expenses                                1,199                 864                5,101                 2,522
    --------------------------               -----                 ---                -----                 -----

    Sub-total                               27,713              13,529               92,019                40,380
    ---------                               ------              ------               ------                ------

    Non-controlling interests                1,600                   -               2,155                     -
    -------------------------                -----                 ---               -----                   ---

    Adjusted EBITDA                          8,272               1,697               16,572                 6,021
    ---------------                          -----               -----               ------                 -----

 

 

Riadh Zine, President and Chief Executive Officer, 416-613-1391

SOURCE Akumin Inc.

 

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