PLANTATION, Fla., Nov. 11, 2020 /CNW/ - Akumin Inc. (NASDAQ: AKU)
(TSX: AKU) ("Akumin" or the "Corporation") announced today its
financial results for the quarter ended September 30, 2020 ("Q3 Fiscal 2020").
Summary Consolidated Financial Results (in thousands, except for
per share amounts)
|
3-month period
ended
Sep. 30,
2020
|
3-month period
ended
Sep. 30,
2019
|
9-month period
ended
Sep. 30,
2020
|
9-month period
ended
Sep. 30,
2019
|
Volume in
RVUs
|
1,490
|
1,435
|
4,109
|
3,664
|
Revenue
|
67,125
|
68,874
|
192,014
|
170,410
|
EBITDA
(1)
|
16,616
|
19,323
|
52,468
|
42,612
|
Adjusted EBITDA
(1)
|
17,827
|
18,039
|
46,518
|
39,581
|
EPS
–Diluted
|
(0.03)
|
0.03
|
(0.06)
|
0.05
|
Adjusted EPS –
Diluted (1)
|
0.04
|
0.06
|
0.07
|
0.17
|
(1) See "Non-IFRS Measures"
below.
|
Commenting on the Q3 Fiscal 2020 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "During the quarter ending
September 30, 2020 we generated
revenue of $67.1 million and
Adjusted EBITDA of $17.8
million. On a sequential quarter basis, RVU volume
increased approximately 36% versus that in Q2 Fiscal 2020, which
was severely impacted by the lockdowns implemented due to the
COVID-19 pandemic. This strong recovery is validation of
Akumin's platform as an essential healthcare service
provider.
"Akumin's volume in Q3 Fiscal 2020 was approximately 1,490,000
RVUs, compared to approximately 1,435,000 RVUs in Q3 Fiscal 2019,
an increase of 4%. On an organic volume basis, RVUs decreased
by 8% compared to the same prior period," 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.
"In addition, we finished the quarter with $27.4 million cash-on-hand.
"As announced on November 2, 2020,
Akumin closed its offering of $400
million in 7% senior secured notes due 2025 and a new
revolving credit facility of $55
million. The proceeds of the notes were used to
refinance all of Akumin's credit facilities with excess cash
proceeds for general corporate purposes. Our access to the
U.S. debt capital markets is another major milestone in the
Company's execution of its U.S. capital markets strategy. These
notes provide us with a flexible balance sheet, a platform for
funding future growth, and a broadening of our investor base.
We sincerely thank our Joint Book-Running Managers, Barclays,
Citigroup, Morgan Stanley and BBVA for their support in this
financing, as well as Co-Managers Raymond
James, Craig-Hallum Capital Group and William Blair. We also take this
opportunity to express our appreciation for all the lenders and
institutions that have supported the capital structure of the
Company to date."
Third Quarter Fiscal 2020 Financial Results Call
Akumin would like to invite interested parties to the
Corporation's Third Quarter Fiscal 2020 Financial Results Call, to
be held on November 12, 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/Q3-2020-Results. 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, November 19, 2020 by
calling 416-849-0833 or toll-free 1-855-859-2056, using passcode
number 5482562.
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 Q3 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 November 11, 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 Management's Discussion &
Analysis dated November 11, 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.
Selected Consolidated Financial Information
(in
thousands)
|
Three-month
period
ended
Sep 30,
2020
|
Three-month
period
ended
Sep 30,
2019
|
Service fees – net of
allowances and discounts
|
66,587
|
68,223
|
Other
revenue
|
538
|
651
|
Revenue
|
67,125
|
68,874
|
|
|
|
Employee
compensation
|
21,373
|
23,794
|
Reading
fees
|
9,507
|
9,476
|
Rent and
utilities
|
2,261
|
2,736
|
Third party services
and professional fees
|
5,396
|
5,122
|
Administrative
|
2,736
|
3,253
|
Medical supplies and
other expenses
|
2,456
|
1,797
|
Depreciation and
amortization
|
8,668
|
8,142
|
Stock-based
compensation
|
568
|
853
|
Interest
expense
|
11,361
|
9,591
|
Settlement costs and
other (recoveries)
|
1,612
|
(208)
|
Acquisition related
costs
|
174
|
444
|
Financial instruments
revaluation and other (gains) losses
|
3,573
|
1,693
|
Income (loss)
before income taxes
|
(2,560)
|
2,181
|
Income tax provision
(recovery)
|
(986)
|
(398)
|
Non-controlling
interests
|
853
|
591
|
Net income (loss)
attributable to shareholders of Akumin
|
(2,427)
|
1,988
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Sep 30,
2020
|
Three-month
period
ended
Sep 30,
2019
|
Revenue
|
67,125
|
68,874
|
Less:
|
|
|
Employee
compensation
|
21,373
|
23,794
|
Reading
fees
|
9,507
|
9,476
|
Rent and
utilities
|
2,261
|
2,736
|
Third party services
and professional fees
|
5,396
|
5,122
|
Administrative
|
2,736
|
3,253
|
Medical supplies and
other expenses
|
2,456
|
1,797
|
IFRS 16 impact on
leases
|
4,716
|
4,066
|
Sub-total
|
48,445
|
50,244
|
Non-controlling
interests
|
853
|
591
|
Adjusted
EBITDA
|
17,827
|
18,039
|
Adjusted EBITDA
Margin
|
27%
|
26%
|
(in
thousands)
|
Nine-month
period
ended
Sep 30,
2020
|
Nine-month
period
ended
Sep 30,
2019
|
Service fees – net of
allowances and discounts
|
190,381
|
168,588
|
Other
revenue
|
1,633
|
1,822
|
Revenue
|
192,014
|
170,410
|
|
|
|
Employee
compensation
|
62,072
|
60,458
|
Reading
fees
|
27,854
|
24,242
|
Rent and
utilities
|
8,509
|
6,935
|
Third party services
and professional fees
|
16,503
|
12,637
|
Administrative
|
9,246
|
8,898
|
Medical supplies and
other expenses
|
6,961
|
4,939
|
Depreciation and
amortization
|
25,774
|
20,907
|
Stock-based
compensation
|
1,726
|
2,805
|
Interest
expense
|
31,587
|
18,361
|
Settlement costs and
other (recoveries)
|
1,418
|
(1,439)
|
Acquisition related
costs
|
474
|
2,994
|
Financial instruments
revaluation and other (gains) losses
|
2,829
|
3,745
|
Income (loss)
before income taxes
|
(2,939)
|
4,928
|
Income tax
provision
|
(966)
|
148
|
Non-controlling
interests
|
1,954
|
1,584
|
Net income (loss)
attributable to shareholders of Akumin
|
(3,927)
|
3,196
|
Adjusted
EBITDA
(in
thousands)
|
Nine-month
period
ended
Sep 30,
2020
|
Nine-month
period
ended
Sep 30,
2019
|
Revenue
|
192,014
|
170,410
|
Less:
|
|
|
Employee
compensation
|
62,072
|
60,458
|
Reading
fees
|
27,854
|
24,242
|
Rent and
utilities
|
8,509
|
6,935
|
Third party services
and professional fees
|
16,503
|
12,637
|
Administrative
|
9,246
|
8,898
|
Medical supplies and
other expenses
|
6,961
|
4,939
|
IFRS 16 impact on
leases
|
12,397
|
11,136
|
Sub-total
|
143,542
|
129,245
|
Non-controlling
interests
|
1,954
|
1,584
|
Adjusted
EBITDA
|
46,518
|
39,581
|
Adjusted EBITDA
Margin
|
24%
|
23%
|
Reconciliation of Non-IFRS Measures
(in
thousands)
|
Three-month
period
ended
Sep 30, 2020
|
Three-month
period
ended
Sep 30, 2019
|
Nine-month
period
ended
Sep 30, 2020
|
Nine-month
period
ended
Sep 30, 2019
|
Net income (loss)
attributable
to shareholders of Akumin
|
(2,427)
|
1,988
|
(3,927)
|
3,196
|
Income tax provision
(recovery)
|
(986)
|
(398)
|
(966)
|
148
|
Depreciation and
amortization
|
8,668
|
8,142
|
25,774
|
20,907
|
Interest
expense
|
11,361
|
9,591
|
31,587
|
18,361
|
EBITDA
|
16,616
|
19,323
|
52,468
|
42,612
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
568
|
853
|
1,726
|
2,805
|
Settlement costs and
other (recoveries)
|
1,612
|
(208)
|
1,418
|
(1,439)
|
Acquisition-related
costs
|
174
|
444
|
474
|
2,994
|
Financial instruments
revaluation and other (gains) losses
|
3,573
|
1,693
|
2,829
|
3,745
|
IFRS 16 impact on
leases
|
(4,716)
|
(4,066)
|
(12,397)
|
(11,136)
|
Adjusted
EBITDA
|
17,827
|
18,039
|
46,518
|
39,581
|
Revenue
|
67,125
|
68,874
|
192,014
|
170,410
|
Adjusted EBITDA
Margin
|
27%
|
26%
|
24%
|
23%
|
|
|
|
|
|
Adjusted
EBITDA
|
17,827
|
18,039
|
46,518
|
39,581
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
8,668
|
8,142
|
25,774
|
20,907
|
Interest
expense
|
11,361
|
9,591
|
31,587
|
18,361
|
Add:
|
|
|
|
|
IFRS 16 impact on
depreciation and interest expense
|
5,867
|
5,370
|
17,667
|
14,753
|
Sub-total
|
3,665
|
5,676
|
6,824
|
15,066
|
Effective tax rate
(1)
|
24.1%
|
24.3%
|
24.1%
|
24.3%
|
Tax effect
|
884
|
1,376
|
1,645
|
3,654
|
Adjusted net
income attributable to shareholders of Akumin
|
2,781
|
4,300
|
5,179
|
11,412
|
|
(1) Effective
tax rate is the U.S. federal and state blended statutory tax rate
estimated for Akumin for the period.
|
SOURCE Akumin Inc.