Akumin Inc. Announces First Quarter Fiscal 2018 Financial Results

TORONTO, May 15, 2018 /CNW/ - Akumin Inc. (TSX:AKU) ("Akumin" or the "Corporation") announced today its financial results for the quarter ended March 31, 2018 ("Q1 Fiscal 2018").  

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





3-month period ended
Mar. 31, 2018

3-month period ended
Mar. 31, 2017

Revenue

33,425

14,323

EBITDA (1)

4,704

460

Adjusted EBITDA (1)

6,807

1,372

Net Income (loss) attributable to common shareholders

1,160

(1,267)

Basic earnings and diluted (loss) per share

0.02

(0.05)

(1) See "Non-Financial Measures" below.

 

Please note that the Corporation's condensed interim consolidated financial statements for Q1 Fiscal 2018 and related management's discussion and analysis are available under Akumin's profile on SEDAR (www.sedar.com).

Commenting on the Q1 Fiscal 2018 financial results, Riadh Zine, President and Chief Executive Officer of the Corporation, said,

"This represents another fiscal quarter of strong financial performance, with an Adjusted EBITDA of $6.8 million, taking into account the full contribution of all acquisitions completed in 2017. Despite seasonality and weather conditions in our Northeastern operations, the performance of the quarter was in-line with management expectations.

"For the quarter ended March 31, 2018, the Company commenced the reporting of the volume of procedures performed in its diagnostic imaging centers based on relative-value units, or RVUs.  RVUs are a standardized measure of value used in the U.S. Medicare reimbursement formula for physician services.  In Q1 Fiscal 2018, Akumin's volume was approximately 666,000 RVUs.

"Going forward, we continue to be focused on improving our existing operations and executing our acquisition growth strategy.  We recently closed the acquisition of the previously announced four centers located in Florida.  In addition, with the recent completion of a $35 million equity financing, Akumin expects in the second quarter of 2018 to close on its previously announced acquisition of all of the outstanding non-controlling interests in seven of its existing Texas-based diagnostic imaging centers."

At the end of Q1 Fiscal 2018, the Corporation had a total of 74 diagnostic imaging facilities throughout the United States, unchanged from December 31, 2017.

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 78 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.

(1) 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 May 15, 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 credit losses, 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


Three-month period
ended

Three-month period
ended

(in thousands)

Mar 31, 2018

Mar 31, 2017

Service fees – net of allowances and discounts

32,863

13,834

Other Revenue

562

489

Total revenue

33,425

14,323




Employee compensation

11,345

5,751

Reading fees

4,658

2,232

Rent and utilities

3,459

2,215

Third party services and professional fees

2,916

1,080

Administrative

1,985

718

Medical supplies and other expenses

1,303

955

Depreciation and amortization

2,108

862

Stock-based compensation

1,617

231

Interest expense

1,340

863

Impairment of property and equipment

187

-

Settlement costs (recoveries)

53

-

Provisions

-

730

Acquisition-related costs

177

-

Public offering costs

104

-

Financial instruments revaluation, unrealized foreign exchange loss,
and other (gains) losses

(35)

(49)

Income (loss) before income taxes

2,208

(1,265)

Income tax provision

96

2

Non-controlling interests

952

-

Net income (loss) and comprehensive income (loss) for period
attributable to shareholders of Akumin

1,160

(1,267)

Adjusted EBITDA

Three-month period
ended

Three-month period
ended

(in thousands)

Mar 31, 2018

Mar 31, 2017

Service fees – net of allowances and discounts

32,863

13,834

Other Revenue

562

489

Total revenue

33,425

14,323




Employee compensation

11,345

5,751

Reading fees

4,658

2,232

Rent and utilities

3,459

2,215

Third party services and professional fees

2,916

1,080

Administrative

1,985

718

Medical supplies and other expenses

1,303

955

Sub-total

25,666

12,951

Non-controlling interests

952

-

Adjusted EBITDA

6,807

1,372

Adjusted EBITDA Margin

20%

10%

 

SOURCE Akumin Inc.

View original content: http://www.newswire.ca/en/releases/archive/May2018/15/c1984.html

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