TORONTO, Nov. 14, 2019 /CNW/ - Akumin Inc. (TSX: AKU,
AKU.U) ("Akumin" or the "Corporation") announced
today its financial results for the quarter ended September 30, 2019 ("Q3 Fiscal 2019").
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
3-month
period ended
Sep. 30, 2019
|
3-month
period ended
Sep. 30, 2018
|
9-month
period ended
Sep. 30, 2019
|
9-month
period ended
Sep. 30, 2018
|
RVUs
|
1,435
|
850
|
3,664
|
2,271
|
Revenue
|
68,874
|
39,131
|
170,410
|
109,331
|
EBITDA
(1)
|
19,323
|
4,278
|
42,612
|
14,168
|
Adjusted EBITDA
(1)
|
18,039
|
8,285
|
39,581
|
23,353
|
EPS
–Diluted
|
0.03
|
0.00
|
0.05
|
0.05
|
Adjusted EPS –
Diluted (1)
|
0.06
|
0.05
|
0.17
|
0.16
|
|
|
(1)
|
See "Non-IFRS
Measures" below.
|
Commenting on the Q3 Fiscal 2019 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "The quarter ending September 30, 2019 represents another fiscal
quarter of growth and financial performance in-line with
management's expectation, including revenue of $68.9 million and Adjusted EBITDA of
$18.0 million.
"Akumin's volume in Q3 Fiscal 2019 was approximately 1,435,000
RVUs, compared to approximately 850,000 RVUs in Q3 Fiscal
2018, an increase of 69%. On an organic volume basis, RVUs
increased by 10% compared to Q3 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.
"Q3 Fiscal 2019 includes partial contribution of the recently
announced acquisition in El Paso,
Texas, completed on August 16,
2019. In early October 2019,
the Corporation also completed a tuck-in acquisition in
West Palm Beach, Florida, which is
not reflected in the quarter."
Akumin would like to remind interested parties of the
Corporation's Third 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. A related presentation
will be available for download on Akumin's website at
https://akum.in/Q3-presentation. Participants are asked to
connect at least 10 minutes prior to the beginning of the call to
ensure participation.
The Corporation has retained the services of Hinge Markets Inc.,
led by Jeffrey White, to provide
investor relations services and to increase awareness of the
Corporation and its activities with its existing and potential
shareholders. Mr. White, founder of Hinge Markets Inc., and a
lawyer by training, has spent more than 20 years in the capital
markets as a professional and a senior executive in both corporate
finance and institutional equity sales.
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, Kansas and Georgia. 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" , "Adjusted net income (loss) attributable
to shareholders of Akumin" and "Adjusted EPS – Diluted". 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 November 13,
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
Sep 30, 2019
|
Three-month
period
ended
Sep 30, 2018
|
Service fees – net of
allowances and discounts
|
68,223
|
38,317
|
Other
revenue
|
651
|
814
|
Revenue
|
68,874
|
39,131
|
|
|
|
Employee
compensation
|
23,794
|
14,734
|
Reading
fees
|
9,476
|
5,143
|
Rent and
utilities
|
2,736
|
4,292
|
Third party services
and professional fees
|
5,122
|
3,004
|
Administrative
|
3,253
|
1,779
|
Medical supplies and
other expenses
|
1,797
|
1,383
|
Depreciation and
amortization
|
8,142
|
2,577
|
Stock-based
compensation
|
853
|
1,424
|
Interest
expense
|
9,591
|
1,482
|
Settlement costs
(recoveries)
|
(208)
|
(99)
|
Acquisition related
costs
|
444
|
256
|
Financial instruments
revaluation and other (gains) losses
|
1,693
|
2,426
|
Income before
income taxes
|
2,181
|
730
|
Income tax provision
(recovery)
|
(398)
|
24
|
Non-controlling
interests
|
591
|
511
|
Net income
attributable to shareholders of Akumin
|
1,988
|
195
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Sep 30, 2019
|
Three-month
period
ended
Sep 30, 2018
|
Revenue
|
68,874
|
39,131
|
Less:
|
|
|
Employee
compensation
|
23,794
|
14,734
|
Reading
fees
|
9,476
|
5,143
|
Rent and
utilities
|
2,736
|
4,292
|
Third party services
and professional fees
|
5,122
|
3,004
|
Administrative
|
3,253
|
1,779
|
Medical supplies and
other expenses
|
1,797
|
1,383
|
IFRS 16 impact on
leases
|
4,066
|
-
|
Sub-total
|
50,244
|
30,335
|
Non-controlling
interests
|
591
|
511
|
Adjusted
EBITDA
|
18,039
|
8,285
|
Adjusted EBITDA
Margin
|
26%
|
21%
|
(in
thousands)
|
Nine-month
period
ended
Sep 30, 2019
|
Nine-month
period
ended
Sep 30, 2018
|
Service fees – net of
allowances and discounts
|
168,588
|
107,244
|
Other
revenue
|
1,822
|
2,087
|
Revenue
|
170,410
|
109,331
|
|
|
|
Employee
compensation
|
60,458
|
38,387
|
Reading
fees
|
24,242
|
14,796
|
Rent and
utilities
|
6,935
|
11,461
|
Third party services
and professional fees
|
12,637
|
8,706
|
Administrative
|
8,898
|
6,361
|
Medical supplies and
other expenses
|
4,939
|
4,105
|
Depreciation and
amortization
|
20,907
|
6,849
|
Stock-based
compensation
|
2,805
|
4,465
|
Interest
expense
|
18,361
|
4,201
|
Impairment of property
and equipment
|
-
|
638
|
Settlement costs
(recoveries)
|
(1,439)
|
29
|
Acquisition related
costs
|
2,994
|
920
|
Public offering
costs
|
-
|
814
|
Financial instruments
revaluation and other (gains) losses
|
3,745
|
2,319
|
Income before
income taxes
|
4,928
|
5,280
|
Income tax
provision
|
148
|
327
|
Non-controlling
interests
|
1,584
|
2,162
|
Net income
attributable to shareholders of Akumin
|
3,196
|
2,791
|
Adjusted
EBITDA
(in
thousands)
|
Nine-month
period
ended
Sep 30, 2019
|
Nine-month
period
ended
Sep 30, 2018
|
Revenue
|
170,410
|
109,331
|
Less:
|
|
|
Employee
compensation
|
60,458
|
38,387
|
Reading
fees
|
24,242
|
14,796
|
Rent and
utilities
|
6,935
|
11,461
|
Third party services
and professional fees
|
12,637
|
8,706
|
Administrative
|
8,898
|
6,361
|
Medical supplies and
other expenses
|
4,939
|
4,105
|
IFRS 16 impact on
leases
|
11,136
|
-
|
Sub-total
|
129,245
|
83,816
|
Non-controlling
interests
|
1,584
|
2,162
|
Adjusted
EBITDA
|
39,581
|
23,353
|
Adjusted EBITDA
Margin
|
23%
|
21%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Sep 30, 2019
|
Three-month
period
ended
Sep 30, 2018
|
Nine-month
period
ended
Sep 30, 2019
|
Nine-month
period
ended
Sep 30, 2018
|
Net income
attributable
to shareholders of Akumin
|
1,988
|
195
|
3,196
|
2,791
|
Income tax provision
(recovery)
|
(398)
|
24
|
148
|
327
|
Depreciation and
amortization
|
8,142
|
2,577
|
20,907
|
6,849
|
Interest
expense
|
9,591
|
1,482
|
18,361
|
4,201
|
EBITDA
|
19,323
|
4,278
|
42,612
|
14,168
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
853
|
1,424
|
2,805
|
4,465
|
Impairment of property
and equipment
|
-
|
-
|
-
|
638
|
Settlement costs
(recoveries)
|
(208)
|
(99)
|
(1,439)
|
29
|
Acquisition-related
costs
|
444
|
256
|
2,994
|
920
|
Public offering
costs
|
-
|
-
|
-
|
814
|
Financial instruments
revaluation and other (gains) losses
|
1,693
|
2,426
|
3,745
|
2,319
|
Sub-total
|
22,105
|
8,285
|
50,717
|
23,353
|
IFRS 16 impact on
leases
|
(4,066)
|
-
|
(11,136)
|
-
|
Adjusted
EBITDA
|
18,039
|
8,285
|
39,581
|
23,353
|
Revenue
|
68,874
|
39,131
|
170,410
|
109,331
|
Adjusted EBITDA
Margin
|
26%
|
21%
|
23%
|
21%
|
|
|
|
|
|
Adjusted
EBITDA
|
18,039
|
8,285
|
39,581
|
23,353
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
8,142
|
2,577
|
20,907
|
6,849
|
Interest
expense
|
9,591
|
1,482
|
18,361
|
4,201
|
Add:
|
|
|
|
|
IFRS 16 impact on
depreciation and interest expense
|
5,370
|
-
|
14,753
|
-
|
Sub-total
|
5,676
|
4,226
|
15,066
|
12,303
|
Effective tax rate
(1)
|
24.3%
|
24.7%
|
24.3%
|
24.7%
|
Tax effect
|
1,376
|
1,043
|
3,654
|
3,038
|
Adjusted net
income attributable to shareholders of Akumin
|
4,300
|
3,183
|
11,412
|
9,265
|
|
|
(1)
|
Effective tax rate is
the U.S. federal and state blended statutory tax rate estimated for
Akumin for the period.
|
SOURCE Akumin Inc.