TORONTO, May 15, 2019 /CNW/ - Akumin Inc. (TSX: AKU,
AKU.U) ("Akumin" or the "Corporation") announced
today its financial results for the quarter -ended March 31, 2019 ("Q1 Fiscal 2019",
respectively).
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
3-month period
ended Mar. 31,
2019
|
3-month period
ended
Mar. 31, 2018
|
RVUs
|
1,066
|
666
|
Revenue
|
47,551
|
33,425
|
EBITDA
(1)
|
12,044
|
4,704
|
Adjusted EBITDA
(1)
|
9,251
|
6,807
|
EPS
–Diluted
|
0.03
|
0.02
|
Adjusted EPS –
Diluted (1)
|
0.05
|
0.05
|
(1)
See "Non-IFRS Measures" below.
|
|
Commenting on the Q1 Fiscal 2019 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "The quarter ending March 31, 2019 represents another fiscal quarter
of financial performance in-line with management's expectation,
including revenue of $47.6 million and Adjusted EBITDA of
$9.3 million.
"Akumin's volume in Q1 Fiscal 2019 was approximately 1,066,000
RVUs, compared to approximately 666,000 RVUs in Q1 Fiscal
2018, an increase of 60%. On a same-center volume basis, RVUs
increased by 8% compared to Q1 Fiscal 2018. The Corporation reports
the volume of procedures performed in its diagnostic imaging
centers based on relative-value units, or RVUs, instead of the
number of procedures. RVUs are a standardized measure of
value used in the U.S. Medicare reimbursement formula for physician
services which provides weighting to distinguish the complexity of
different procedures.
"As previously announced, the Corporation entered into purchase
agreements to acquire 21 imaging centers in Florida and exclusive management rights over 6
imaging centers in Georgia. This transaction and the related
financing are expected to close in Q2 2019, and will strengthen our
position in one of our key markets, Florida, as well as provide a platform for
expansion into Georgia."
Akumin would like to remind interested parties of the
Corporation's First Quarter Fiscal 2019 Financial Results Call, to
be held today from 8:30 a.m. to 9:00 a.m.
Eastern Time. To access the conference call, dial toll-free
in Canada or the U.S. 888-231-8191
or, for international callers, 647-427-7450. Participants are
asked to connect at least 10 minutes prior to the beginning of the
call to ensure participation.
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. The Corporation's consolidated
financial statements for Fiscal 2018 and related management's
discussion and analysis are available under Akumin's profile on
SEDAR (www.sedar.com).
About Akumin
Akumin is a leading provider of freestanding, fixed-site
outpatient diagnostic imaging services in the United States with a network of owned
and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, 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",
"Adjusted EBITDA Margin" and "Adjusted net income (loss)
attributable to shareholders of Akumin". 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 14, 2019 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, settlement costs, provisions,
acquisition-related and public offering costs, gains (losses) in
the period, one-time adjustments and IFRS 16 impact on leases.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by
the revenue in the period.
"Adjusted net income (loss) attributable to shareholders of
Akumin" means Adjusted EBITDA less depreciation and
amortization and interest expense (excluding IFRS 16 impact on
depreciation and interest expense), taxed at Akumin's estimated
effective tax rate, which is a blend of U.S. federal and state
statutory tax rates for Akumin for 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 dated
March 28, 2019, which is 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.
< Financial tables follow. >
Selected Consolidated Financial Information
(in
thousands)
|
Three-month
period
ended
Mar 31, 2019
|
Three-month
period
ended
Mar 31, 2018
|
Service fees – net of
allowances and discounts
|
46,955
|
32,863
|
Other
revenue
|
596
|
562
|
Revenue
|
47,551
|
33,425
|
|
|
|
Employee
compensation
|
17,803
|
11,345
|
Reading
fees
|
6,987
|
4,658
|
Rent and
utilities
|
1,892
|
3,459
|
Third party services
and professional fees
|
3,553
|
2,916
|
Administrative
|
2,711
|
1,985
|
Medical supplies and
other expenses
|
1,467
|
1,303
|
Depreciation and
amortization
|
6,130
|
2,108
|
Stock-based
compensation
|
1,018
|
1,617
|
Interest
expense
|
3,469
|
1,340
|
Impairment of property
and equipment
|
-
|
187
|
Settlement costs
(recoveries)
|
(1,217)
|
53
|
Acquisition related
costs
|
786
|
177
|
Public offering
costs
|
-
|
104
|
Financial instruments
revaluation and other (gains) losses
|
57
|
(35)
|
Income before
income taxes
|
2,895
|
2,208
|
Income tax
provision
|
276
|
96
|
Non-controlling
interests
|
450
|
952
|
Net income
attributable to shareholders of Akumin
|
2,169
|
1,160
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Mar 31, 2019
|
Three-month
period
ended
Mar 31, 2018
|
Revenue
|
47,551
|
33,425
|
Less:
|
|
|
Employee
compensation
|
17,803
|
11,345
|
Reading
fees
|
6,987
|
4,658
|
Rent and
utilities
|
1,892
|
3,459
|
Third party services
and professional fees
|
3,553
|
2,916
|
Administrative
|
2,711
|
1,985
|
Medical supplies and
other expenses
|
1,467
|
1,303
|
IFRS 16 impact on
leases
|
3,437
|
-
|
Sub-total
|
37,850
|
25,666
|
Non-controlling
interests
|
450
|
952
|
Adjusted
EBITDA
|
9,251
|
6,807
|
Adjusted EBITDA
Margin
|
19%
|
20%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Mar 31, 2019
|
Three-month
period
ended
Mar 31, 2018
|
Net income
attributable
to shareholders of Akumin
|
2,169
|
1,160
|
Income tax
provision
|
276
|
96
|
Depreciation and
amortization
|
6,130
|
2,108
|
Interest
expense
|
3,469
|
1,340
|
EBITDA
|
12,044
|
4,704
|
Adjustments:
|
|
|
Stock-based
compensation
|
1,018
|
1,617
|
Impairment of property
and equipment
|
-
|
187
|
Settlement costs
(recoveries)
|
(1,217)
|
53
|
Acquisition-related
costs
|
786
|
177
|
Public offering
costs
|
-
|
104
|
Financial instruments
revaluation and other
(gains) losses
|
57
|
(35)
|
Sub-total
|
12,688
|
6,807
|
IFRS 16 impact on
leases
|
(3,437)
|
-
|
Adjusted
EBITDA
|
9,251
|
6,807
|
Revenue
|
47,551
|
33,425
|
Adjusted EBITDA
Margin
|
19%
|
20%
|
|
|
|
Adjusted
EBITDA
|
9,251
|
6,807
|
Less:
|
|
|
Depreciation and
amortization
|
6,130
|
2,108
|
Interest
expense
|
3,469
|
1,340
|
Add:
|
|
|
IFRS 16 impact on
depreciation and interest
expense
|
4,591
|
-
|
Sub-total
|
4,243
|
3,359
|
Effective tax rate
(1)
|
24.3%
|
24.7%
|
Tax effect
|
1,029
|
830
|
Adjusted net
income attributable to
shareholders of Akumin
|
3,214
|
2,529
|
|
|
(1)
|
Effective tax rate is
the U.S. federal and state blended statutory tax rate estimated for
Akumin for the period.
|
SOURCE Akumin Inc.