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WELL Health Technologies Delivers Record Third Quarter 2020 Results with New Acquisitions Driving Annualized Revenue Run-Rate to $68M
Friday, November 20, 2020Company Profile | Follow Company
Vancouver, BC, November 20, 2020--(T-Net)--WELL Health Technologies Corp. (TSX: WELL), a company focused on consolidating and modernizing clinical and digital assets within the primary healthcare sector, announces it has filed its condensed interim consolidated financial statements and MD&A for Fiscal Third Quarter 2020, representing the three and nine months ended September 30, 2020.
"Third Quarter 2020 was another outstanding record quarter as we experienced a strong rebound of physical in-clinic patient visits following the COVID-19 related lock-downs while continuing to maintain and expand our telehealth patient care volumes demonstrating the value of WELL's resilient clicks-and-bricks hybrid service delivery approach," said Hamed Shahbazi, Chairman and CEO of WELL.
"The Company has also appreciably diversified itself into several business units(3) and made a number of key acquisitions over the past several months. The acquisition of Cycura has added critical expertise in healthcare related cybersecurity, while DoctorCare has allowed us to provide additional billing and back-office services to clinics and practitioners across the country. We are also very pleased to have announced the closing of WELL's 100% ownership of INSIG earlier this morning. We believe the combination of INSIG's Tia Health and WELL's VirtualClinic+ platforms positions WELL as one of the top providers of telehealth services in Canada. Also, in the third quarter the Company launched its apps.health marketplace for healthcare practitioners to browse and engage with integrated EMR apps built by third-party application developers. This marketplace now features 26 apps related to clinical efficiency and improved patient care. WELL is extremely well positioned to continue to carry out its disciplined capital allocation strategy given its strong treasury position and robust pipeline of highly accretive acquisition opportunities."
Third Quarter 2020 Financial Highlights:
Third Quarter 2020 Business Highlights:
Subsequent Events:
Outlook:
The Company's outlook for Q4-2020 is boosted from the benefit of having recently completed acquisitions of Cycura, Easy Allied, DoctorCare, INSIG and the imminent closing of the Circle Medical transaction. Thus far in Q4-2020, WELL has experienced steady growth in its patient services revenue with an increase of both in-clinic patient visits as well as virtual care consultations.
WELL's goals for the foreseeable future, are to: (i) achieve organic revenue growth in its operating businesses; (ii) continue to follow a disciplined acquisition and capital allocation strategy; and (iii) increase market share and awareness of its digital health initiatives.
Selected Unaudited Interim Financial Highlights:
Please see SEDAR for complete copies of the Company's condensed interim consolidated financial statements and MD&A for the three and nine months ended September 30, 2020.
Three months ended September 30, 2020 | Three months ended September 30, 2019 | Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | |
$ | $ | $ | $ | |
Revenue | 12,245,735 | 8,189,678 | 33,050,879 | 22,979,992 |
Cost of clinical, digital and cybersecurity services | (7,200,295) | (5,309,054) | (19,836,653) | (15,580,976) |
Gross Profit(1) | 5,045,440 | 2,880,624 | 13,214,226 | 7,399,016 |
Gross Margin(1) | 41.2% | 35.2% | 40.0% | 32.2% |
Adjusted EBITDA(2) | (153,488) | (512,076) | (857,212) | (1,406,796) |
Net loss and total comprehensive loss | (3,581,182) | (4,833,216) | (8,983,136) | (8,009,981) |
Net loss per share - for the period | (0.03) | (0.05) | (0.07) | (0.09) |
Weighted average number of common shares outstanding (basic and diluted) | 134,411,897 |
97,791,445 |
126,275,468 |
91,957,814 |
Reconciliation of net loss to Adjusted EBITDA(2) | ||||
Net loss for the period | (3,581,182) | (4,833,216) | (8,983,136) | (8,009,981) |
Depreciation and amortization | 848,597 | 422,983 | 2,403,138 | 1,210,158 |
Income tax | (23,489) | 76,176 | 145,516 | 161,176 |
Interest income | (60,761) | (59,186) | (236,068) | (139,812) |
Interest expense | 505,915 | 553,805 | 1,599,635 | 1,079,013 |
Rent expense on finance leases | (542,717) | (469,029) | (1,546,770) | (1,291,799) |
Stock-based compensation | 1,311,995 | 1,023,857 | 2,988,088 | 2,250,975 |
Special warrants related expenses | - | 2,458,790 | - | 2,458,790 |
Time-based earn-out expense | 391,415 | 115,934 | 1,236,040 | 388,376 |
Transaction, restructuring, & integration costs expensed | 836,667 | 197,810 | 1,291,050 | 486,308 |
Share of loss of associate | 160,072 | - | 245,295 | - |
Adjusted EBITDA(2) | (153,488) | (512,076) | (857,212) | (1,406,796) |
About WELL
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 20 primary healthcare clinics, is Canada's third largest digital Electronic Medical Records (EMR) supplier serving over 2,000 medical clinics, operates a leading national telehealth service and is a provider of digital health and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and was recognized as a TSX Venture 50 Company three years in a row in 2018, 2019 and 2020. To access the Company's telehealth service, visit: virtualclinics.ca and for corporate information, visit: www.WELL.company.
Footnotes:
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation: all statements in the "Outlook" section of this news release, including the Company's goals for 2020 and the intention to achieve organic growth, follow a disciplined capital allocation strategy and increase market share of its VirtualClinic+ telehealth service; the belief that WELL has a robust pipeline of acquisition opportunities; and the intention to execute on its acquisition strategy. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. WELL's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain future financing on suitable terms; and that market competition may affect the business, results and financial condition of WELL. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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WELL Health Technologies Corp.
Vancouver (Other Tech Sectors)
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