TORONTO, March 31, 2020 /CNW/ - Akumin Inc. (TSX:
AKU.U, AKU) ("Akumin" or the "Corporation") announced today its
financial results for the quarter and year-ended December 31, 2019 ("Q4 Fiscal 2019").
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
3-month
period ended
Dec. 31, 2019
|
3-month
period ended
Dec. 31, 2018
|
Year ended
Dec. 31,
2019
|
Year ended
Dec. 31,
2018
|
RVUs
|
1,583
|
1,020
|
5,247
|
3,291
|
Revenue
|
77,026
|
45,452
|
247,436
|
154,782
|
EBITDA
(1)
|
23,840
|
5,137
|
66,453
|
19,304
|
Adjusted EBITDA
(1)
|
20,231
|
9,200
|
59,813
|
31,775
|
EPS
–Diluted
|
0.05
|
0.04
|
0.09
|
0.08
|
Adjusted EPS –
Diluted (1)
|
0.09
|
0.04
|
0.26
|
0.20
|
(1)
|
See "Non-IFRS
Measures" below.
|
Commenting on the Q4 Fiscal 2019 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "The quarter ending December 31, 2019 represents a record quarter of
financial performance. We generated, during the quarter,
revenue of $77.0 million and
Adjusted EBITDA of $20.2
million. The cash balance at the end of 2019 was
$23.4 million, an increase of
$5.9 million, compared to our cash
balance as at September 30,
2019. This increase in cash is partly due to stability in
total days of sales outstanding ("DSO") at 98 days, and a reduction
in DSO excluding attorney/auto payors to 66 days from 77 days as at
September 30, 2019".
"Akumin's volume in Q4 Fiscal 2019 was approximately 1,583,000
RVUs, compared to approximately 1,020,000 RVUs in Q4 Fiscal
2018, an increase of 55%. On an organic volume basis, RVUs
increased by 5% compared to Q4 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.
"We continue to monitor the impact of the novel coronavirus
(COVID-19), as we know it is top of mind for our employees,
patients, investors and other stakeholders. Shelter-in-place
or self-isolation in response to containment or avoidance of this
pandemic could impact a patient's ability to seek imaging services
which could have a significant impact on our volume leading to
temporary or prolonged staff layoffs, reduced hours, consolidation
of our network of centers and other cost containment efforts.
"Being a healthcare facility providing essential and medically
necessary services, it is imperative that we stay the course and
remain committed to our mission of providing an important tool for
diagnosing illnesses. As announced March 23, 2020, to help our communities in
dealing with this pandemic, we have dedicated imaging centers in
certain of our regions to focus specifically on patients who have
an active case of COVID-19 or have similar symptoms. Each of
our clinics is following CDC and local health authority guidelines
relating to infectious disease protocols. We will continue
our efforts to ensure our clinics remain a safe place for our
employees and patients and an alternative to hospitals for
essential imaging services".
Akumin would like to invite interested parties to the
Corporation's Fourth Quarter and Year-End Fiscal 2019 Financial
Results Call, to be held tomorrow, April 1,
2020, from 8:00 a.m. to 8:30 a.m.
Eastern Time. To access the conference call, register here
https://akum.in/AkuminFourthQuarter2019Results or 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 immediately
prior to the call. 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 2019 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 March 30,
2020 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 30, 2020, 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
Dec 31,
2019
|
Three-month
period
ended
Dec 31,
2018
|
Service fees – net of
allowances and discounts
|
76,253
|
44,769
|
Other
revenue
|
773
|
683
|
Revenue
|
77,026
|
45,452
|
|
|
|
Employee
compensation
|
25,442
|
19,266
|
Reading
fees
|
11,002
|
5,764
|
Rent and
utilities
|
2,793
|
4,974
|
Third party services
and professional fees
|
6,447
|
2,594
|
Administrative
|
3,562
|
2,407
|
Medical supplies and
other expenses
|
2,517
|
1,612
|
Depreciation and
amortization
|
7,364
|
3,003
|
Stock-based
compensation
|
749
|
1,238
|
Interest
expense
|
10,576
|
1,778
|
Impairment of property
and equipment
|
-
|
4
|
Settlement costs
(recoveries)
|
(443)
|
14
|
Acquisition related
costs
|
410
|
1,506
|
Financial instruments
revaluation and other (gains) losses
|
91
|
524
|
Income before
income taxes
|
6,516
|
768
|
Income tax provision
(recovery)
|
2,645
|
(1,854)
|
Non-controlling
interests
|
616
|
412
|
Net income
attributable to shareholders of Akumin
|
3,255
|
2,210
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Dec 31,
2019
|
Three-month
period
ended
Dec 31,
2018
|
Revenue
|
77,026
|
45,452
|
Less:
|
|
|
Employee
compensation
|
25,442
|
19,266
|
Reading
fees
|
11,002
|
5,764
|
Rent and
utilities
|
2,793
|
4,974
|
Third party services
and professional fees
|
6,447
|
2,594
|
Administrative
|
3,562
|
2,407
|
Medical supplies and
other expenses
|
2,517
|
1,612
|
IFRS 16 impact on
leases
|
4,416
|
-
|
Sub-total
|
56,179
|
36,617
|
Non-controlling
interests
|
616
|
412
|
One-time
adjustments
|
-
|
(777)
|
Adjusted
EBITDA
|
20,231
|
9,200
|
Adjusted EBITDA
Margin
|
26%
|
20%
|
(in
thousands)
|
Year
ended
Dec 31, 2019
|
Year
ended
Dec 31, 2018
|
Service fees – net of
allowances and discounts
|
244,841
|
152,013
|
Other
revenue
|
2,595
|
2,769
|
Revenue
|
247,436
|
154,782
|
|
|
|
Employee
compensation
|
85,900
|
57,653
|
Reading
fees
|
35,244
|
20,560
|
Rent and
utilities
|
9,728
|
16,435
|
Third party services
and professional fees
|
19,084
|
11,301
|
Administrative
|
12,459
|
8,768
|
Medical supplies and
other expenses
|
7,456
|
5,716
|
Depreciation and
amortization
|
28,271
|
9,852
|
Stock-based
compensation
|
3,555
|
5,702
|
Interest
expense
|
28,938
|
5,979
|
Impairment of property
and equipment
|
-
|
643
|
Settlement costs
(recoveries)
|
(1,881)
|
43
|
Acquisition related
costs
|
3,403
|
2,426
|
Public offering
costs
|
-
|
814
|
Financial instruments
revaluation and other (gains) losses
|
3,835
|
2,843
|
Income before
income taxes
|
11,444
|
6,047
|
Income tax provision
(recovery)
|
2,793
|
(1,527)
|
Non-controlling
interests
|
2,200
|
2,574
|
Net income
attributable to shareholders of Akumin
|
6,451
|
5,000
|
Adjusted
EBITDA
(in
thousands)
|
Year
ended
Dec 31, 2019
|
Year
ended
Dec 31, 2018
|
Revenue
|
247,436
|
154,782
|
Less:
|
|
|
Employee
compensation
|
85,900
|
57,653
|
Reading
fees
|
35,244
|
20,560
|
Rent and
utilities
|
9,728
|
16,435
|
Third party services
and professional fees
|
19,084
|
11,301
|
Administrative
|
12,459
|
8,768
|
Medical supplies and
other expenses
|
7,456
|
5,716
|
IFRS 16 impact on
leases
|
15,552
|
-
|
Sub-total
|
185,423
|
120,433
|
Non-controlling
interests
|
2,200
|
2,574
|
Adjusted
EBITDA
|
59,813
|
31,775
|
Adjusted EBITDA
Margin
|
24%
|
21%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Dec 31, 2019
|
Three-month
period
ended
Dec 31, 2018
|
Year
ended
Dec 31, 2019
|
Year
ended
Dec 31, 2018
|
Net income
attributable
to shareholders of Akumin
|
3,255
|
2,210
|
6,451
|
5,000
|
Income tax provision
(recovery)
|
2,645
|
(1,854)
|
2,793
|
(1,527)
|
Depreciation and
amortization
|
7,364
|
3,003
|
28,271
|
9,852
|
Interest
expense
|
10,576
|
1,778
|
28,938
|
5,979
|
EBITDA
|
23,840
|
5,137
|
66,453
|
19,304
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
749
|
1,238
|
3,555
|
5,702
|
Impairment of property
and equipment
|
-
|
4
|
-
|
643
|
Settlement costs
(recoveries)
|
(443)
|
14
|
(1,881)
|
43
|
Acquisition-related
costs
|
410
|
1,506
|
3,403
|
2,426
|
Public offering
costs
|
-
|
-
|
-
|
814
|
Financial instruments
revaluation and other (gains) losses
|
91
|
524
|
3,835
|
2,843
|
One-time
adjustments
|
-
|
777
|
-
|
-
|
IFRS 16 impact on
rent
|
(4,416)
|
-
|
(15,552)
|
-
|
Adjusted
EBITDA
|
20,231
|
9,200
|
59,813
|
31,775
|
Revenue
|
77,026
|
45,452
|
247,436
|
154,782
|
Adjusted EBITDA
Margin
|
26%
|
20%
|
24%
|
21%
|
|
|
|
|
|
Adjusted
EBITDA
|
20,231
|
9,200
|
59,813
|
31,775
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
7,364
|
3,003
|
28,271
|
9,852
|
Interest
expense
|
10,576
|
1,778
|
28,938
|
5,979
|
Add:
|
|
|
|
|
IFRS 16 impact on
depreciation and interest expense
|
5,865
|
-
|
20,618
|
-
|
Sub-total
|
8,156
|
4,419
|
23,222
|
15,944
|
Effective tax rate
(1)
|
24.3%
|
24.7%
|
24.3%
|
24.7%
|
Tax effect
|
1,978
|
1,091
|
5,631
|
3,938
|
Adjusted net
income
attributable to
shareholders of
Akumin
|
6,178
|
3,328
|
17,591
|
12,006
|
(1)
|
Effective tax rate is
the U.S. federal and state blended statutory tax rate estimated for
Akumin for the period.
|
SOURCE Akumin Inc.