TORONTO, June 3, 2020 /CNW/ - Akumin Inc. (TSX:
AKU.U) (TSX: AKU) ("Akumin" or the "Corporation") announced
today its financial results for the quarter ended March 31, 2020 ("Q1 Fiscal 2020") and an
amendment to its existing credit agreement effective June 2, 2020.
Summary Consolidated Financial Results (in thousands, except
for per share amounts)
|
3-month period
ended
Mar. 31,
2020
|
3-month period
ended
Mar. 31,
2019
|
RVUs
|
1,525
|
1,066
|
Revenue
|
71,262
|
47,551
|
EBITDA
(1)
|
20,311
|
12,044
|
Adjusted EBITDA
(1)
|
14,968
|
9,251
|
EPS
–Diluted
|
0.02
|
0.03
|
Adjusted EPS –
Diluted (1)
|
0.03
|
0.05
|
(1) See "Non-IFRS Measures"
below.
|
Commenting on the Q1 Fiscal 2020 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "During the quarter ending
March 31, 2020 we generated revenue
of $71.3 million and Adjusted
EBITDA of $15.0 million.
"Akumin's volume in Q1 Fiscal 2020 was approximately 1,525,000
RVUs, compared to approximately 1,066,000 RVUs in Q1 Fiscal 2019,
an increase of 43%. On an organic volume basis, RVUs decreased
by 1% compared to the same prior period, however excluding
March which was impacted by the COVID-19 pandemic, RVUs increased
by 7%," Mr. Zine continued. 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 states and local authorities have begun to lift social
distancing requirements and other restraints affecting our referral
network," added Mr. Zine, "we have seen some volume return in those
markets. Compared to the first week of March 2020, our daily average volume is
recovering from a low point of an approximate 55% decline in
mid-April 2020 to an estimated 25%
decline by late-May 2020. This rebound demonstrates the
resiliency of the Akumin platform providing an essential healthcare
service. Although we expect the reduction in volume caused by the
COVID-19 pandemic to impact our Q2 revenue, such revenue reduction
should be partly offset by our cost containment initiatives.
"In addition, we finished the quarter with $16.6 million cash-on-hand and we have not
needed to draw on our revolving credit facility for working capital
purposes since the COVID-19 pandemic began. Our amended credit
facility will add greater flexibility and liquidity."
Credit Agreement Amendment
Pursuant to the amendment to its senior secured credit facility,
Akumin's revolving credit facility has been increased from
$50 million to $69 million. Any draw on the revolving
credit facility above a principal amount of $50 million will
require consent of lenders holding two-thirds of the outstanding
principal of Term Loan B facility and lenders holding two-thirds of
the outstanding principal of the other senior credit
facilities. As at the time of the amendment, the Corporation
had approximately $28.4 million
drawn on its revolving credit facility.
In addition, the amendment will, among other things, adjust
Akumin's leverage and fixed charge ratios for the next four
quarters providing the Corporation with greater flexibility in its
financial ratio covenants. While no prepayment is required, if
a prepayment is made on the Term Loan B facility, an additional
payment equal to 2% of the amount prepaid will need to be paid at
the time of prepayment within the next 12 months and equal to 1% of
the amount prepaid within the subsequent 12 months.
First Quarter Fiscal 2020 Financial Results Call
Akumin would like to invite interested parties to the
Corporation's First Quarter Fiscal 2020 Financial Results Call, to
be held on June 4, 2020 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 (www.akumin.com) and at
https://akum.in/AkuminFirstQuarter2020Results. Participants are
asked to connect at least 10 minutes prior to the beginning of the
call to ensure participation. The webcast archive will be available
for 90 days. A replay of the conference call will also be
available until Thursday, June 11,
2020 by calling 416-849-0833 or toll-free 1-855-859-2056,
using passcode number 9891317.
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 Q1 Fiscal 2020 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 refers 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 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 June 3, 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 31, 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 Mar 31,
2020
|
Three-month
period ended Mar 31,
2019
|
Service fees – net of
allowances and discounts
|
70,637
|
46,955
|
Other
revenue
|
625
|
596
|
Revenue
|
71,262
|
47,551
|
|
|
|
Employee
compensation
|
24,818
|
17,803
|
Reading
fees
|
10,924
|
6,987
|
Rent and
utilities
|
2,713
|
1,892
|
Third party services
and professional fees
|
6,291
|
3,553
|
Administrative
|
3,884
|
2,711
|
Medical supplies and
other expenses
|
2,557
|
1,467
|
Depreciation and
amortization
|
8,504
|
6,130
|
Stock-based
compensation
|
593
|
1,018
|
Interest
expense
|
9,825
|
3,469
|
Settlement costs
(recoveries)
|
356
|
(1,217)
|
Acquisition related
costs
|
219
|
786
|
Financial instruments
revaluation and other (gains) losses
|
(2,019)
|
57
|
Income before
income taxes
|
2,597
|
2,895
|
Income tax
provision
|
445
|
276
|
Non-controlling
interests
|
615
|
450
|
Net income
attributable to shareholders of Akumin
|
1,537
|
2,169
|
Adjusted EBITDA (in thousands)
|
Three-month
period ended Mar 31,
2020
|
Three-month
period ended Mar 31,
2019
|
Revenue
|
71,262
|
47,551
|
Less:
|
|
|
Employee
compensation
|
24,818
|
17,803
|
Reading
fees
|
10,924
|
6,987
|
Rent and
utilities
|
2,713
|
1,892
|
Third party services
and professional fees
|
6,291
|
3,553
|
Administrative
|
3,884
|
2,711
|
Medical supplies and
other expenses
|
2,557
|
1,467
|
IFRS 16 impact on
leases
|
4,492
|
3,437
|
Sub-total
|
55,679
|
37,850
|
Non-controlling
interests
|
615
|
450
|
Adjusted
EBITDA
|
14,968
|
9,251
|
Adjusted EBITDA
Margin
|
21%
|
19%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Mar 31, 2020
|
Three-month
period
ended
Mar 31, 2019
|
Net income
attributable
to shareholders of Akumin
|
1,537
|
2,169
|
Income tax
provision
|
445
|
276
|
Depreciation and
amortization
|
8,504
|
6,130
|
Interest
expense
|
9,825
|
3,469
|
EBITDA
|
20,311
|
12,044
|
Adjustments:
|
|
|
Stock-based
compensation
|
593
|
1,018
|
Settlement costs
(recoveries)
|
356
|
(1,217)
|
Acquisition-related
costs
|
219
|
786
|
Financial instruments
revaluation and other (gains) losses
|
(2,019)
|
57
|
IFRS 16 impact on
rent
|
(4,492)
|
(3,437)
|
Adjusted
EBITDA
|
14,968
|
9,251
|
Revenue
|
71,262
|
47,551
|
Adjusted EBITDA
Margin
|
21%
|
19%
|
|
|
|
Adjusted
EBITDA
|
14,968
|
9,251
|
Less:
|
|
|
Depreciation and
amortization
|
8,504
|
6,130
|
Interest
expense
|
9,825
|
3,469
|
Add:
|
|
|
IFRS 16 impact on
depreciation and interest expense
|
5,931
|
4,591
|
Sub-total
|
2,570
|
4,243
|
Effective tax rate
(1)
|
24.1%
|
24.3%
|
Tax effect
|
620
|
1,029
|
Adjusted net
income attributable to shareholders of Akumin
|
1,950
|
3,214
|
(1) Effective
tax rate is the U.S. federal and state blended statutory tax rate
estimated for Akumin for the period.
|
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SOURCE Akumin Inc.