- WELL achieved optimistic Adjusted EBITDA(2) in Q4-2020 for the primary time, with Adjusted EBITDA(2) of $0.77 million because of this of important income and EBITDA contribution from its acquisitions, better contribution from increased margin Software and Services income and improved working efficiencies.
- WELL reported document quarterly revenues of $17.2 million in Q4-2020 reflecting a 75% YoY enhance. WELL’s development was led by its Software and Services revenues which elevated by 400% in Q4-2020 to $5.8 million, as in comparison with Software and Services income of $1.2 million in This autumn-2019.
- While complete annual income for WELL exceeded $50 million in the 12 months ended December 31, 2020, the Company is presently on an annualized income run-rate approaching $300 million, together with the proposed acquisitions of CRH Medical Corporation (NYSE: CRHM,TSX: CRH) (or “CRH Medical“) and Intrahealth Systems Limited (or “Intrahealth“).
- Subsequent to year-end, WELL introduced its largest acquisition so far and a serious growth into the US market with the proposed acquisition of CRH Medical. The fairness portion of the acquisition is valued at roughly US$292.7M with a complete transaction worth of roughly US$369.2M inclusive of CRH Medical’s withdrawn credit score facility.
VANCOUVER, BC, March 18, 2021 /CNW/ – WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL“), an organization centered on consolidating and modernizing scientific and digital property throughout the major healthcare sector, introduced as we speak its fiscal fourth quarter and annual monetary outcomes for the three and twelve months ended December 31, 2020.
Hamed Shahbazi, Chairman and CEO of WELL commented, “Q4-2020 was one other nice quarter for WELL in which we achieved document quarterly income and gross revenue, however I’m most happy to report that we achieved a major milestone in the fourth quarter with this being the primary time that we have reported optimistic Adjusted EBITDA(2) which exceeded analysts’ predictions. We have confirmed that our capital allocation mannequin works and shifting ahead, we’re solely anticipating profitability and money flows to develop. During This autumn we additionally accomplished seven transactions and that tempo has continued into Q1 with a quantity of accomplished and introduced transactions, together with the proposed acquisition of CRH Medical.”
Mr. Shahbazi added, “CRH Medical is a game-changing transaction for WELL because it accelerates our income development and considerably boosts our free money circulate, which might be used to make more money circulate producing acquisitions. Earlier this week CRH reported sturdy monetary outcomes which makes us much more excited with the proposed acquisition. CRH reported fourth quarter income of US$36.8M which mirrored a development price of roughly 21% on a YoY foundation with wholesome Adjusted EBITDA working margins of over 40%. CRH’s fourth quarter efficiency implies an annualized income run-rate of roughly CAD$184M and $80M in Adjusted Operating EBITDA with out adjusting for non-controlled pursuits. Aside from the monetary advantages of the deal, CRH is a powerful strategic match for WELL because it gives us with a significant U.S. primarily based channel of prospects and practitioners to which we will provide a various multi-pronged providing of digital well being instruments and capabilities. The shut of our transaction with CRH will signify the very begin of our worth creation journey with this very particular firm.”
Fiscal 2020 Annual Financial Highlights:
- Total income for the 12 months ended December 31, 2020 was $50.2 million, in comparison with complete income of $32.8 million for the prior 12 months, a rise of 53% pushed by acquisitions throughout the previous 12 months and the rise in software program and telehealth associated income.
- WELL achieved Software and Services revenues of $12.3 million for the 12 months ended December 31, 2020, representing a rise of 393% as in comparison with Software and Services income of $2.5 million in the prior 12 months.
- WELL achieved document Adjusted Gross Profit(1) of $21.2 million, representing 93% development in comparison with Adjusted Gross Profit(1) of $11.0 million in the prior 12 months. WELL achieved document Adjusted Gross Margin(1) share of 42.2% for the 12 months ended December 31, 2020 in comparison with Adjusted Gross Margin(1) share of 33.5% in the prior 12 months. The enhance in Adjusted Gross Margin(1) share is principally because of the addition of increased margin software program income over the previous 12 months.
- Adjusted EBITDA(2) loss was $0.1 million for the 12 months ended December 31, 2020, in comparison with Adjusted EBITDA(2) loss of $1.7 million in the prior 12 months.
Fourth Quarter 2020 Financial Highlights:
- WELL achieved document quarterly income of $17.2 million throughout Q4-2020, in comparison with income of $9.8 million generated throughout This autumn-2019, a rise of 75% pushed by acquisitions throughout the previous 12 months and the addition of telehealth associated income.
- WELL achieved Software and Services revenues of $5.8 million in Q4-2020, representing 400% YoY development as in comparison with Software and Services income of $1.2 million in This autumn-2019.
- WELL achieved document Adjusted Gross Profit(1) of $8.0 million in Q4-2020, representing 123% YoY development as in comparison with Adjusted Gross Profit(1) of $3.6 million in This autumn-2019. WELL achieved document Adjusted Gross Margin(1) share of 46.5% throughout Q4-2020 in comparison with Adjusted Gross Margin(1) share of 36.5% in This autumn-2019.
- Adjusted EBITDA(2) was $0.77 million for Q4-2020, in comparison with Adjusted EBITDA(2) loss of $0.31 million for This autumn-2019. Adjusted EBITDA(2) was positively impacted in the quarter by WELL’s current acquisitions.
Fourth quarter 2020 Business Highlights:
- Based on This autumn outcomes, WELL has now exceeded a million complete omni channel affected person visits on an annualized run-rate foundation. Total omni channel affected person visits in This autumn have been 263,699, representing a quarter-over-quarter enhance of 12% in comparison with 236,302 complete omni channel affected person visits in Q3. This determine has materially elevated because the quarter finish because of the new acquisitions which have been closed in late Q4-2020.
- On October 22, 2020, the Company accomplished a purchased deal public providing of 11.9 million widespread shares at a worth of $6.75 for gross proceeds of $80.5 million.
- During Q4-2020, WELL accomplished the next seven transactions, which positively contributed to the Company’s sturdy quarterly and annual outcomes: (i) a majority stake acquisition in Easy Allied Health Inc., a supplier of built-in allied care providers; (ii) the acquisition of DoctorCare Inc., a market chief in offering BaaS (“Billing-as-a-Service”) for medical doctors; (iii) the acquisition of the remaining shares of Insig Corporation which the Company didn’t already personal; (iv) the acquisition of San Francisco, CA primarily based Circle Medical Inc., a frontrunner in offering omni-channel healthcare providers in the United States; (v) the acquisition of Source44 Consulting Incorporated to reinforce its cybersecurity revenues and experience; (vi) a minority funding in Simpill Health Group Inc., a full service digital pharmacy that additionally gives e-prescription merchandise and providers; and (vii) the acquisition of ExcelleMD Inc. and its affiliate VirtuelMED Inc., marking the corporate’s growth for healthcare providers into the Province of Quebec.
Proposed acquisition of CRH Medical and Completion of Equity Offering:
- On February 8, 2021, the Company introduced a serious growth into the US market in accordance with an association settlement to accumulate all of the issued and excellent shares of CRH Medical (NYSE: CRHM,TSX: CRH) at a worth of US$4.00 per share in money, representing fairness consideration of roughly US$292.7M and a transaction worth of roughly US$369.2M inclusive of CRH Medical’s withdrawn credit score facility. CRH Medical gives merchandise and providers for the remedy of gastrointestinal illnesses together with anesthesia providers at 70 ambulatory surgical facilities in 13 states and it distributes the O’Regan System product to hundreds of gastroenterologists in all 48 decrease US states.
- On February 17, 2021, the Company introduced the completion and upsizing of its fairness providing to $302.5 million of subscription receipts at $9.80 per share. The fairness providing was led by Hong Kong businessman and investor, Mr. Li Ka-shing and included WELL’s CEO, board and senior administration staff in addition to a quantity of important institutional buyers. The proceeds of the providing are anticipated to be mixed with debt amenities collectively supplied by Canadian Imperial Bank of Commerce and HSBC Canada in addition to WELL’s current money to fund the acquisition of CRH Medical. The proceeds of the subscription receipts providing have been deposited in escrow pending closing of the CRH Medical acquisition.
Other Events Subsequent to December 31, 2020:
- In addition to the proposed acquisition of CRH, WELL has accomplished the next 5 transactions to date in 2021: (i) the acquisition of Adracare Inc., an omni-channel follow administration platform serving over 6,800 allied well being practitioners in 5 nations; (ii) the acquisition of Open Health Software Solutions Inc., an OSCAR service supplier to medical clinics primarily positioned in Ontario; (iii) profitable completion of the migration of all clinics from ClearMedica Corporation onto WELL’s OSCAR Pro platform underneath a buyer buy settlement; (iv) a minority funding into Twig Fertility Co., a reproductive start-up seeking to create the subsequent era fertility care; and (v) the subscription for added shares of Phelix.ai.
- WELL has additionally entered right into a share buy settlement to accumulate Intrahealth Systems Limited, a transaction which is predicted to be accomplished in Q2-2021. Intrahealth is an enterprise class EMR supplier that helps a myriad of healthcare settings together with well being authorities, hospitals, public well being outpatient centres, group well being, residence care, ambulatory care and various well being care professionals.
Outlook:
WELL’s objectives for 2021 are to: (i) obtain natural development throughout all of its working enterprise items; (ii) comply with a disciplined acquisition and capital allocation technique; (iii) develop its optimistic EBITDA(2) all year long; (iv) enhance working money flows by finalizing key acquisitions, optimizing prices and digitizing scientific property; and (v) enhance market share of its digital well being associated merchandise and digital care packages.
WELL continues to have an lively pipeline of acquisition alternatives that span throughout its six enterprise items and embody scientific, digital, billing and cybersecurity alternatives. WELL operates as a decentralized group with every enterprise unit having a good quantity of autonomy, therefore WELL seems to draw acquisitions with sturdy operators to run these companies and generate income to help new development alternatives.
Conference Call:
WELL will maintain a convention name to debate its 2020 Fourth Quarter and Annual monetary outcomes on Thursday, March 18, 2021 at 1:00 pm ET (10:00 am PT). Please use the next dial-in numbers: 416-764-8650 (Toronto native), 778-383-7413 (Vancouver native) or 1-888-664-6383 (Toll-Free), with Conference ID: 2090 0288.
The convention name may also be concurrently webcast and might be accessed on the following viewers URL: https://www.properly.firm/for-investors/occasions/
Selected Unaudited Financial Highlights:
Please see SEDAR for full copies of the Company’s audited annual consolidated monetary statements and annual MD&A for the 12 months ended December 31, 2020.
|
Three months |
Twelve months |
Twelve months |
|
|
$ |
$ |
$ |
|
|
Revenue |
17,189,370 |
50,240,249 |
32,810,782 |
|
Cost of gross sales |
(9,188,130) |
(29,024,783) |
(21,821,367) |
|
Adjusted Gross Profit(1) |
8,001,240 |
21,215,466 |
10,989,415 |
|
Adjusted Gross Margin(1) |
46.6% |
42.2% |
33.5% |
|
Adjusted EBITDA(2) |
765,200 |
(92,012) |
(1,713,414) |
|
Net revenue (loss) |
5,772,483 |
(3,210,653) |
(7,793,914) |
|
Total complete revenue (loss) for the interval |
5,639,832 |
(3,343,304) |
(7,793,914) |
|
Net revenue (loss) per share – for the interval, primary and |
0.04 |
(0.03) |
(0.08) |
|
Weighted common quantity of widespread shares |
151,058,782 |
133,911,242 |
96,919,161 |
|
Weighted common quantity of widespread shares |
157,385,159 |
133,911,242 |
96,919,161 |
|
Reconciliation of web revenue (loss) to Adjusted EBITDA |
|||
|
Net revenue (loss) for the interval |
5,772,483 |
(3,210,653) |
(7,793,914) |
|
Depreciation and amortization |
1,867,232 |
4,270,370 |
2,155,046 |
|
Income tax (restoration) expense |
(4,507,907) |
(4,362,391) |
35,235 |
|
Interest revenue |
(218,311) |
(454,379) |
(241,402) |
|
Interest expense |
335,012 |
1,934,647 |
1,446,057 |
|
Rent expense on finance leases |
(657,359) |
(2,204,129) |
(1,642,680) |
|
Stock-based compensation |
1,986,693 |
4,974,781 |
2,935,912 |
|
Exchange distinction |
196,434 |
196,434 |
– |
|
Change in honest worth of investments |
(6,904,815) |
(6,904,815) |
– |
|
Special warrants associated acquire |
– |
– |
(243,450) |
|
Time-based earn-out expense |
627,754 |
1,863,794 |
948,603 |
|
Share of loss of associates |
341,410 |
586,705 |
|
|
Transaction, restructuring, & integration prices expensed |
1,926,574 |
3,217,624 |
687,179 |
|
Adjusted EBITDA(2) |
765,200 |
(92,012) |
(1,713,414) |
|
Footnotes: |
|
|
(1) |
Non-GAAP measure. Adjusted Gross revenue and Adjusted gross margin shouldn’t have any standardized that means underneath IFRS and due to this fact is probably not akin to related measures introduced by different issuers. The Company defines adjusted gross revenue as income much less value of gross sales (excluding depreciation and amortization) and adjusted gross margin as adjusted gross revenue as a share of income. Adjusted Gross revenue and adjusted gross margin shouldn’t be construed in its place for income or web loss decided in accordance with IFRS. The Company believes that adjusted gross revenue and adjusted gross margin are significant metrics in assessing the Company’s monetary efficiency and operational effectivity. |
|
(2) |
Non-GAAP measure. Earnings earlier than curiosity, taxes, depreciation and amortization (“EBITDA“) and Adjusted EBITDA shouldn’t be construed as options to web revenue/loss decided in accordance with IFRS. EBITDA and Adjusted EBITDA shouldn’t have any standardized that means underneath IFRS and due to this fact is probably not akin to related measures introduced by different issuers. The Company defines Adjusted EBITDA as EBITDA (i) much less web lease expense on premise leases thought of to be finance leases underneath IFRS and (ii) earlier than transaction, restructuring, and integration prices, time-based earn-out expense, particular warrants associated bills, change in honest worth of investments, share of loss of affiliate, alternate distinction, and stock-based compensation expense. The Company believes that Adjusted EBITDA is a significant monetary metric because it measures money generated from operations which the Company can use to fund working capital necessities, service future curiosity and principal debt repayments and fund future development initiatives. The Adjusted EBITDA figures famous herein haven’t been adjusted for non-controlled pursuits. |
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.:
WELL is an omni-channel digital well being firm whose overarching goal is to empower medical doctors to offer the most effective and most superior care attainable whereas leveraging the most recent tendencies in digital well being. As such, WELL owns and operates 27 major healthcare clinics, is Canada’s third largest digital Electronic Medical Records (EMR) provider serving over 2,200 medical clinics, operates a number one nationwide telehealth service in Canada and the United States, and is a supplier of digital well being, billing and cybersecurity associated know-how options. WELL is an acquisitive firm that follows a disciplined and accretive capital allocation technique. WELL is publicly traded on the Toronto Stock Exchange underneath the image “WELL“. To entry the Company’s telehealth service, go to: tiahealth.com and for company data, go to: www.WELL.company.
Forward-Looking Statements:
This information launch could comprise “forward-looking statements” throughout the that means of relevant Canadian securities legal guidelines, together with, with out limitation: all statements in the “Outlook” part of this information launch, together with the Company’s objectives for 2021; the proposed acquisition of CRH Medical and the financing thereof; the expectation that profitability and money flows will enhance on a going ahead foundation; and that WELL is ready to notice on its pipeline of acquisitions, and that such acquisitions will generate income to help new development alternatives. Forward-looking statements are essentially primarily based upon a quantity of estimates and assumptions that, whereas thought of affordable by administration, are inherently topic to important enterprise, financial and aggressive uncertainties, and contingencies. These statements usually might be recognized by the use of forward-looking phrases resembling “could”, “ought to”, “will”, “may”, “intend”, “estimate”, “plan”, “anticipate”, “anticipate”, “consider” or “proceed”, or the unfavourable thereof or related variations. Forward-looking statements contain recognized and unknown dangers, uncertainties and different elements which will trigger future outcomes, efficiency or achievements to be materially completely different from the estimated future outcomes, efficiency or achievements expressed or implied by these forward-looking statements and the forward-looking statements aren’t ensures of future efficiency. WELL’s statements expressed or implied by these forward-looking statements are topic to a quantity of dangers, uncertainties, and circumstances, many of that are outdoors of WELL ‘s management, and undue reliance shouldn’t be positioned on such statements. Forward-looking statements are certified in their entirety by inherent dangers and uncertainties, together with: direct and oblique materials opposed results from the COVID-19 pandemic; opposed market circumstances; dangers inherent in the first healthcare sector in common; regulatory and legislative modifications; that future outcomes could fluctuate from historic outcomes; incapability to acquire future financing on appropriate phrases; and that market competitors could have an effect on the enterprise, outcomes and monetary situation of WELL. Except as required by securities legislation, WELL doesn’t assume any obligation to replace or revise any forward-looking statements, whether or not because of this of new data, occasions or in any other case.
Neither the TSX nor its Regulation Services Provider (as that time period is outlined in insurance policies of the TSX) accepts accountability for the adequacy or accuracy of this launch.
SOURCE WELL Health Technologies Corp.
For additional data: Pardeep S. Sangha, VP Corporate Strategy and Investor Relations, [email protected], 604-572-6392
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