PLANTATION, Fla., May 17, 2021 /CNW/ - Akumin Inc. (NASDAQ: AKU)
(TSX: AKU) ("Akumin" or the "Corporation") announced today its
financial results for the quarter ended March 31, 2021 ("Q1 Fiscal 2021").
Summary Consolidated Financial Results (in thousands, except for
per share amounts)
|
3-month period
ended
Mar. 31,
2021
|
3-month period
ended
Mar. 31,
2020
|
Volume in
RVUs
|
1,515
|
1,525
|
Revenue
|
66,889
|
71,262
|
EBITDA
(1)
|
14,906
|
15,129
|
Adjusted EBITDA
(1)
|
13,758
|
14,968
|
EPS
–Diluted
|
0.01
|
0.03
|
(1) See "Non-GAAP Measures"
below.
|
Commenting on the Q1 Fiscal 2021 financial results, Riadh Zine, President and Chief Executive
Officer of the Corporation, said, "During the quarter, we generated
revenue of $66.9 million and Adjusted
EBITDA of $13.8 million. The
results were in line with management expectations, even though our
operations in Central Texas were
significantly impacted by February's ice storm.
"Akumin's volume for the quarter was approximately 1,515,000
RVUs, compared to approximately 1,525,000 RVUs in the same quarter
last year. On an organic volume basis, RVUs decreased by only
1% compared to the same prior period, despite the impact of the ice
storm." 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.
"Subsequent to the quarter," Mr. Zine continued, "we closed two
acquisitions effective May 1, 2021
for a total of 7 new center in Florida, bringing us to a total of 79 centers
in Florida and 134 across our
network. One of these acquisitions included an issuance of
stock for $3.9 million, being
10% of the purchase price, based on a price per Akumin share of
$4.00.
"With the successful integration of our prior acquisitions over
the 2020 year, and with volume having returned as the effects of
the pandemic wane, we are excited to continue our acquisition and
organic growth strategies over 2021 and beyond," Mr. Zine
concluded.
First Quarter 2021 Financial Results Call
Akumin would like to invite interested parties to the
Corporation's First Quarter 2021 Financial Results Call, to be held
today on May 17, 2021 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/Q12021-ResultsCall. 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 Monday, May 24, 2021
by calling 416-849-0833 or toll-free 1-855-859-2056, using passcode
number 8897111.
Unless otherwise indicated, all amounts are expressed in U.S.
dollars. Certain metrics, including those expressed on an
adjusted or comparable basis, are non-GAAP measures. See
"Non-GAAP Measures" and "Selected Consolidated Financial
Information" of this press release for further details. The
Corporation's consolidated financial statements for Q1 Fiscal 2021
and related management's discussion and analysis are available in
Akumin's public disclosure at www.sedar.com and www.sec.gov.
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-GAAP Measures
This press release refers to certain non-GAAP measures. These
non-GAAP measures are not recognized measures under United States generally accepted accounting
principles ("GAAP") and do not have a standardized meaning
prescribed by GAAP. There is unlikely to be comparable or
similar measures presented by other companies. Rather, these
non-GAAP measures are provided as additional information to
complement those GAAP measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these non-GAAP measures should not be considered in
isolation nor as a substitute for analysis of our financial
information reported under GAAP. We use non-GAAP financial
measures, including "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA
Margin" and "Adjusted net income (loss) attributable to
shareholders of Akumin" (each as defined below). These non-GAAP
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
GAAP measures. We believe the use of these non-GAAP measures, along
with GAAP financial measures, enhances the reader's understanding
of our operating results and is useful to us and to investors in
comparing performance with competitors, estimating enterprise
value, and making investment decisions. We also believe that
securities analysts, investors, and other interested parties
frequently use non-GAAP measures in the evaluation of issuers. Our
management uses non-GAAP 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-GAAP measures to the relevant reported measures can be found in
our Management's Discussion and Analysis dated March 31, 2021 available in our public disclosure
at www.sedar.com and www.sec.gov.
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) attributable to
shareholders of the Company before interest expense (net), income
tax expense (benefit) 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, deferred rent expense (credit) and one-time
adjustments.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the
total revenue in the period.
"Adjusted net income (loss) attributable to shareholders of
Akumin" means Adjusted EBITDA less depreciation and
amortization 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, 2021, which is available at
www.sedar.com and www.sec.gov. 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, 2021
|
Three-month
period
ended
Mar 31, 2020
|
Service fees – net of
allowances and discounts
|
66,392
|
70,637
|
Other
revenue
|
497
|
625
|
Revenue
|
66,889
|
71,262
|
|
|
|
Employee
compensation
|
23,118
|
24,818
|
Reading
fees
|
9,984
|
10,924
|
Rent and
utilities
|
7,684
|
7,510
|
Third party services
and professional fees
|
5,548
|
6,291
|
Administrative
|
3,648
|
3,884
|
Medical supplies and
other expenses
|
3,141
|
2,927
|
Depreciation and
amortization
|
5,576
|
4,987
|
Stock-based
compensation
|
427
|
593
|
Operational financial
instruments revaluation and other (gains) losses
|
90
|
(6,267)
|
Interest
expense
|
8,368
|
7,462
|
Settlement costs
(recoveries)
|
(24)
|
356
|
Acquisition related
costs
|
1,279
|
219
|
Other financial
instruments revaluation and other (gains) losses
|
(3,365)
|
4,263
|
Income (loss)
before income taxes
|
1,415
|
3,295
|
Income tax provision
(benefit)
|
281
|
445
|
Non-controlling
interests
|
453
|
615
|
Net income (loss)
attributable to shareholders of Akumin
|
681
|
2,235
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Mar 31, 2021
|
Three-month
period
ended
Mar 31, 2020
|
Revenue
|
66,889
|
71,262
|
Less:
|
|
|
Employee
compensation
|
23,118
|
24,818
|
Reading
fees
|
9,984
|
10,924
|
Rent and
utilities
|
7,684
|
7,510
|
Third party services
and professional fees
|
5,548
|
6,291
|
Administrative
|
3,648
|
3,884
|
Medical supplies and
other expenses
|
3,141
|
2,927
|
Deferred rent
(expense) credit
|
(445)
|
(675)
|
Sub-total
|
52,678
|
55,679
|
Non-controlling
interests
|
453
|
615
|
Adjusted
EBITDA
|
13,758
|
14,968
|
Adjusted EBITDA
Margin
|
21%
|
21%
|
Reconciliation of Non-GAAP Measures
(in
thousands)
|
Three-month
period ended
Mar 31, 2021
|
Three-monthperiod
ended
Mar 31, 2020
|
Net income (loss)
attributable
to shareholders of Akumin
|
681
|
2,235
|
Income tax provision
(benefit)
|
281
|
445
|
Depreciation and
amortization
|
5,576
|
4,987
|
Interest
expense
|
8,368
|
7,462
|
EBITDA
|
14,906
|
15,129
|
Adjustments:
|
|
|
Stock-based
compensation
|
427
|
593
|
Settlement costs
(recoveries)
|
(24)
|
356
|
Acquisition-related
costs
|
1,279
|
219
|
Operational financial
instrument revaluation and other (gains) losses
|
90
|
(6,267)
|
Other financial
instruments revaluation and other (gains) losses
|
(3,365)
|
4,263
|
Deferred rent expense
(credit)(1)
|
445
|
675
|
Adjusted
EBITDA
|
13,758
|
14,968
|
Revenue
|
66,889
|
71,262
|
Adjusted EBITDA
Margin
|
21%
|
21%
|
|
|
|
Adjusted
EBITDA
|
13,758
|
14,968
|
Less:
|
|
|
Depreciation and
amortization
|
5,576
|
4,987
|
Interest
expense
|
8,368
|
7,462
|
Sub-total
|
(186)
|
2,519
|
Effective tax
rate(2)
|
23.9%
|
24.1%
|
Tax effect
|
(44)
|
607
|
Adjusted net
income attributable to shareholders of Akumin
|
(142)
|
1,912
|
(1)
|
Based on note 7 of
the Company's Q1 2021 Financial Statements; Deferred rent expense
(credit) is defined as operating lease cost less operating cash
flows from operating leases.
|
(2)
|
Akumin's estimated
effective tax rate is a blend of U.S. federal and state statutory
tax rates for the period.
|
SOURCE Akumin Inc.