Premier Health Report FY2022 Second Quarter Results

Carolyn Harding

Release Date:

May 18, 2022 A 10 minutes ago A Read for 4 minutes A To join the conversation

Montreal, May 18, 2022 (Globe Newswire) – America Inc.’s Premier Health (TSXV: PHA) (The “Corporation“), A leading Canadian healthtech company, has announced that it has submitted its short-term consolidated financial statements and management discussion and analysis for the second quarter ending March 31, 2022.

Summary

  • The corporation’s revenue for the 3-month period was $ 17.6M, compared to $ 17.0M for the same period of FY2021, representing a 3.4% increase over the period mainly due to organic growth.
  • The 24.7% gross margin for the quarter was close to the corporation’s 25% target.
  • EBITDA(1) It was $ 0.5M for the quarter, compared to $ 1.6M for the same period in FY2021.
  • Net income for the same period of FY2021 was $ 0.3M – 0.8M.

“We’ve invested in our ability to manage a larger geographic footprint,” said Martin Legalt, CEO of Premier Health. “We believe these thoughtful investments will facilitate integration and leverage operations in other provinces upstream of the acquisition.”

Second Quarter 2022 Results Highlights

March 31, 2022
(3 months) 		March 31, 2021
(3 months) 		March 31, 2022
(6 months) 		March 31, 2021
(6 months)
Revenue 317,583,869 317,003,358 335,999,588 330,363,667
From the last period + 3.4% + 18.6%
Gross margin 34,335,299 34,110,981 36,855,848 36,346,463
From the last period + 5.5% + 19.2%
EBITDA (1) 3466,798 31,582,256 31,952448 32,900,975
From the last period –70.5% -32.7%
Net income –770,594 3338,508 –459,305 3772,452
-327.6% -159.5%

(1) Compatibility EBITDA before non-repeat items

Business highlights

  • The corporation provided 227,748 hours of service quarterly.
  • The revenue budget was slightly lower due to the absence regarding the Omicron variant and a discrepancy in the unit business mix of Premier Swine.
  • EBITDA was impacted by an increase in administrative and administrative costs, including increased management and technology costs, higher than expected transportation department maintenance costs, and acquisition costs related to the Canadian Health Care Agency.
  • The corporation completed the acquisition of the Canadian Health Care Agency on April 19, which is expected to add about $ 24M to the annual turnover up front.

Healthcare Workforce Solutions

During the second quarter, our Premier Swine business unit experienced a revenue contraction of 8% while Code Blue’s business unit earnings were stable. The two subsidiaries offer similar services with different pricing strategies and resource profiles across the province of Quebec which sometimes leads to inconsistencies in positive or negative revenue generation. The decline in revenue at Premier Swine was mainly due to lower demand for long-term replacement periods and higher demand for short-term daily shifts. This business mix often results in higher turnover rates and, increasingly, increased risk of not being able to meet every request for assets on short notice due to staff availability. We believe that this temporary effect is related to a adjustment period in the reducing epidemic. We have already experienced a change from this situation in April but still expect a certain level of instability in the near future. The Nordic Business Unit has continued its organic growth in the quarter with steady growth of assets in Northern Ontario, Northern Quebec and James Bay. During the quarter, Premier Swan Nordic signed contracts with six additional hospitals. It follows five agreements signed before the first quarter in Northern Ontario.

Non-ambulance transport service

The corporation is still investigating supply chain issues, which has led to further delays in the supply of new vehicles. The first 3 new transport units that were suspended until March 2022 are now scheduled to be delivered only at the end of the third quarter. This has resulted in higher maintenance costs which is affecting EBTDA margins and net income.

About Premier Health

Premier Health is a leading Canadian healthtech company that provides a wide range of outsourced service solutions to the healthcare needs of governments, corporations and individuals. Premier Health uses its proprietary PSweb platform to provide patients with faster, cheaper and more accessible care services to lead the digital transformation of the healthcare sector.

Non-GAAP measurement

Earnings before interest, tax, depreciation and repayment (“EBITDA”), are calculated as net profit (loss), before non-recurring items excluding acquisition and transaction costs, non-cash costs (loss from disposal of assets, including impediments) Payment and depreciation), interest expense, interest income net and income tax expense.

For more information, please contact:

Mr. Jean-Robert Pronovost
Vice-President, Corporate Development
American Premier Health Inc.
[email protected] / 1 800 231 9916

Neither the TSX Venture Exchange nor its regulation service providers (as defined in the TSX Venture Exchange Policy) accept responsibility for the adequacy or accuracy of this release.

Warning Statement for the Information Looking Forward:

This press release contains visionary information based on current expectations. Statement on the date of transaction of common shares of the corporation on the exchange and final regulatory approval, among others, the expected information. This statement should not be read as a guarantee of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may materially differ from the actual results, performance or achievements implied by such statements. The Corporation assumes no responsibility for updating or correcting farsighted information to reflect new events or situations unless required by law. These and other issues have been further discussed in the Corporation’s filings with the Canadian Securities Regulatory Authority, available at www.sedar.com.

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