CloudMD Reports Record Fourth Quarter 2020 Revenue; On Track for Significant Growth in 2021Monday, May 3, 2021
Victoria, BC, May 3, 2021--(T-Net)--CloudMD Software & Services Inc. (TSXV: DOC), a healthcare technology company, announced its financial results for the fourth quarter and year ended December 31, 2020. All financial information is presented in Canadian dollars unless otherwise indicated.
Fourth Quarter 2020 Financial Highlights
Fourth Quarter Operational Highlights
Key Highlights Subsequent to the Quarter
The Company says it is focused on revolutionizing the healthcare industry by leveraging technology to digitalize its delivery to provide better access to care, which leads to better health outcomes. CloudMD is building one, connected healthcare ecosystem that addresses all points of a patient's care from one platform.
CloudMD noted in a release that it has already started the integration of its health-tech solutions, and plans to launch a fully automated, connected platform later in 2021.
CloudMD's organic growth will be largely driven by its hybrid clinic network, digital services and EHS division. Through its recent acquisitions, there are opportunities for cross-functional synergies and cross selling that will drive further organic growth. CloudMD expects to see continued organic growth across all divisions of its business largely due to an increase in virtual healthcare visits, an increase in digital services and cross selling synergies in the EHS division. The Company has already seen over $5 million in organic revenue growth since January 2021 and has actualized cost synergies of over $500,000. Furthermore, the Company is on the road to profitability and expects to be Adjusted EBITDA-positive starting in Q3 2021.
CloudMD's current revenue run rate is over $120 million which does not take into consideration any expected organic growth or cross selling synergies. The Company has a strong cash position with approximately $100 million, and approximately $35 million left after the closing of the three outstanding acquisitions. With a strong balance sheet, CloudMD has an opportunity to look at debt facility options to conserve cash and decrease dilution.
CloudMD will continue to focus on delivering meaningful shareholder value by executing on its growth strategy through accretive, synergistic acquisitions, achieving meaningful organic growth across all divisions, and the full integration of its healthcare solutions to provide one, connected platform that addresses all points of care for patients.
CloudMD says it is positioned as a leader in digital healthcare and a leading provider to the employer healthcare market in Canada. The Company will continue expanding its footprint across North America and strategically in Europe. CloudMD anticipates reporting its Q1 2021 financial statements at the end of May 2021.
Selected Financial Information
All results were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.
|Three months ended||Year ended|
|(in thousands of Canadian dollars)||December 31,||December 31,|
|Cost of sales||(3,464)||(1,380)||151%||(9,256)||(3,731)||148%|
|Gross profit (1)||2,346||1,063||121%||5,760||3,039||90%|
|Loss before other items||(5,990)||(1,380)||334%||(12,711)||(4,378)||190%|
|Other items, taxes, non-controlling interest||786||(94)||-936%||372||(340)||-209%|
|Net comprehensive loss attributable to equity holders of the Company||(5,224)||(1,474)||254%||(12,339)||(4,718)||162%|
|Loss per share, basic and diluted||$||(0.04)||$||(0.02)||150%||$||(0.11)||$||(0.07)||57%|
|Three months ended||Year ended|
|(in thousands of Canadian dollars)||December 31,||December 31,|
|Net comprehensive loss attributable to equity holders of the Company||$||(5,224)||$||(1,474)||254%||$||(12,339)||$||(4,718)||162%|
|Interest and accretion expense||66||57||16%||256||209||22%|
|Deferred tax recovery||(1,628)||-||-100%||(1,628)||-||100%|
|Depreciation and amortization||701||297||136%||1,374||546||151%|
|EBITDA(1) for the period||(5,981)||(1,120)||434%||(12,214)||(3,963)||208%|
|Acquisition and other related costs||783||32||2347%||1,092||140||680%|
|Litigation costs and loss provision||1,115||-||100%||1,582||21||7433%|
|Change in fair value of contingent consideration||(140)||-||-100%||(140)||-||-100%|
|Loss from discontinued operations||-||(140)||-100%||-||(163)||-100%|
|Adjusted EBITDA(1) for the period||$||(1,516)||$||(601)||152%||$||(4,960)||$||(2,112)||135%|
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient's healthcare journey and provides better access to care and improved outcomes. Through CloudMD's proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, educational resources and artificial intelligence (AI).
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America. CloudMD's Enterprise Health Solutions Division includes one of the top 4 Employee Assistance Programs in Canada and offers one comprehensive, digitally connected platform for corporations, insurers and advisors to better manage the health and wellness of their employees and customers. For more information visit: https://investors.cloudmd.ca.
Financial Statements and Management's Discussion and Analysis
This news release should be read in conjunction with the Company's audited consolidated financial statements and related notes, and management's discussion and analysis for the years ended December 31, 2020 and 2019, copies of which can be found at www.sedar.com.
Non-GAAP Financial Measures
In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters and years. Details of such non-GAAP financial measures and how they are derived are provided below as well as in conjunction with the discussion of the financial information reported.
Since non-GAAP financial measures do not have any standardized meanings prescribed by IFRS, other companies may calculate these non-IFRS measures differently and our non-GAAP financial measures may not be comparable to similar titled measures of other companies. Accordingly, investors are cautioned not to place undue reliance on them and are also urged to read all IFRS accounting disclosures presented in the audited consolidated financial statements and the accompanying notes for the years ended December 31, 2020 and 2019.
EBITDA is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. EBITDA referenced herein relates to earnings before interest, taxes, depreciation and amortization. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the cash operating income (loss) of the business. Please refer to section on EBITDA for reconciliation.
Adjusted EBITDA is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Adjusted EBITDA referenced herein relates to earnings before interest; taxes; depreciation; amortization; share-based compensation; financing-related costs; acquisition and other related costs, net; litigation costs and loss provision; change in fair value of contingent consideration; and loss from discontinued operations. This measure does not have a comparable IFRS measure and is used by the Company to evaluate its cash operating income (loss) of the business, adjusted for factors that are unusual in nature or factors that are not indicative of the operating performance of the Company. Please refer to section on Adjusted EBITDA for reconciliation.
Gross Profit is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross Profit referenced herein relates to revenues less cost sales. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the business.
Gross Margin is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross Profit referenced herein is defined as gross profit as a percent of total revenue. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the business.
Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD's expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
 Gross margin is a non-GAAP measure as described in the Non-GAAP Financial Measures section of this News Release.
 Enterprise Health Solutions Division plus Re:Function Health Group, a rehabilitation clinic network for enterprise clients, insurers and corporations.
 Adjusted EBITDA is a non-GAAP measure as described in the Non-GAAP Financial Measures section of this News Release.
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