WELL Health Technologies Reports Record Results for Q3-2023, Provides Guidance of Over $900 Million in Revenue for 2024Tuesday, November 21, 2023
WELL Health Reports Record Results for Q3-2023, Raises Guidance for Balance of 2023 and Provides Guidance of Over $900 Million in Revenue for 2024
Vancouver, BC, November 20, 2023--(T-Net)--WELL Health Technologies Corp. (TSX: WELL), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, announced its interim consolidated financial results for the quarter ended September 30, 2023.
Hamed Shahbazi, Chairman & Chief Executive Officer, WELL Health Technologies Corp.
Hamed Shahbazi, Founder and CEO of WELL commented, "Q3 was an outstanding quarter for us, as we achieved record patient visits, Adjusted EBITDA¹ and posted our first quarter ever with more than $200M in revenues. While all our business units are executing extremely well, our Canadian business grew its Adjusted EBITDA by 24% and shows no signs of slowing down. We are expecting to have strong performance for the remainder of 2023 and into next year. We are ahead of our plan for reaching one billion in revenue and feel confident in introducing our guidance for 2024 of achieving over $900 million in annual revenue driven by organic growth. The backbone of our success has been the Company's continued focus on tech enabling healthcare providers and supporting them in simplifying their work lives, modernizing, and digitizing their clinical practices and delivering the best healthcare possible."
Mr. Shahbazi further added, "Our commitment to ensuring that we support our healthcare providers with the most advanced technology has led us to significant investments in Artificial Intelligence. During the quarter, we led an investment that resulted in the re-launch of a new senior listed public company called, HEALWELL AI, a healthcare AI technology and data science company focused on preventative care where we are the largest securityholder. We subsequently entered into a strategic alliance agreement with HEALWELL that enabled us to launch WELL AI Decision Support to our network of clinics and doctors. This is only the beginning as we have a compelling pipeline of opportunities that leverage the power of AI to give healthcare providers clinical decision support tools that will give them their time back, enhance clinic productivity and provide better patient outcomes. We are determined to faithfully support healthcare professionals with the very best technology available which now includes significant investments in AI-based products and services."
Eva Fong, Chief Financial Officer, WELL Health Technologies Corp.
Eva Fong, WELL's Chief Financial Officer, added, "In Q3 we achieved record revenue in both our Canadian and US patient services businesses. Furthermore, we've had a great year so far on our organic growth as we have delivered year-to-date vs year over year organic growth of 16%. I am also pleased to report that our leverage ratio³ of net bank debt to shareholder Adjusted EBITDA reduced from 2.9x at the end of Q3-2022 to 2.6x as of the end of Q3-2023. Our organic growth profile remains strong, and the M&A pipeline continues to be active, allowing us to provide a positive outlook for the remainder of 2023 and beyond."
Third Quarter 2023 Financial Highlights:
Third Quarter 2023 Business Highlights:
On July 1, 2023, the Company through its subsidiary CRH, acquired a 100% interest in CarePlus Medical Corporation ("CarePlus"). The acquisition of CarePlus provides CRH with a platform for provider recruitment and locum tenens staffing. The acquisition also expands CRH's US geographical footprint of Anesthesia providers and adds revenue cycle management (RCM) services.
On July 19, 2023, the Company advanced $3 million to MCI OneHealth Technologies Inc. (TSX: DRDR) as a secured promissory note, which was later credited and settled on October 1st.
On July 27, 2023, the Company announced that it has re-branded CRH Medical Corporation as WELL Health USA. WELL Health USA's goal is to mirror WELL's mission of tech enabling care providers in the United States while digitizing and modernizing healthcare businesses. WELL USA will be used henceforth to reflect WELL's total US based financial activity which includes lines of business such as CRH, Radar, Circle Medical and Wisp.
On August 1, 2023, WELL completed the acquisition of Seekintoo, a provider of Cybersecurity Operations Center services to enterprise clients, equipping them with a managed detection responder service that assures 24/7 vigilant protection against threats.
On August 10, 2023, WELL announced that it had signed a $38.5 million contract with British Columbia's Public Health Services Authority to provide an array of digital services such as eReferrals, eConsults and eOrders to help further empower providers with best-in-class interoperability tools. This is the third Canadian province, in addition to Ontario and Nova Scotia, that has materially partnered with OceanMD.
Events Subsequent to September 30, 2023:
On October 1, 2023, the Company completed its transaction with MCI that was previously announced on July 19, 2023 (the "HEALWELL Transaction"). MCI changed its name to HEALWELL AI Inc. (TSX: AIDX) and re-launched as a healthcare technology company focused on AI and data science.
As part of the HEALWELL Transaction, the Company acquired clinical assets in Ontario, obtained representation on HEALWELL's board of directors and acquired a call option to purchase up to approximately 30 million Class A Subordinate Voting shares and Class B Multiple Voting shares in HEALWELL over time, subject to the achievement of certain performance metrics.
On October 1, 2023, the Company acquired a 100% interest in Proack Security Inc. ("Proack"), a leading provider of offensive security assessments, offering services such as penetration testing, red teaming, and social engineering to proactively identify and mitigate cybersecurity threats. Proack enhances WELL's capabilities in safeguarding sensitive data and maintaining robust security across healthcare and corporate networks.
On October 18, 2023, the Company announced the launch of WELL AI Decision Support. WELL AI Decision Support is a solution that utilizes artificial intelligence to aid healthcare providers in early disease diagnosis and preventative health, particularly in identifying over 110 complex or rare diseases. Developed by HEALWELL AI, this technology has been validated in both Canadian and U.S. healthcare systems. It aims to bridge the gap in healthcare diagnostics and patient care, ensuring more accurate and timely diagnoses, and is available through WELL's digital marketplace for EMR tools and applications.
On November 9, 2023, the Company announced the launch of the WELL Longevity+ Program, enhancing preventative health with advanced precision diagnostics and AI technologies for the early detection of serious health conditions. Expansion plans include rolling out WELL Longevity+ services through WELL Health's network of preventative health clinics throughout Canada.
WELL is expecting its strong performance to continue into the fourth quarter of 2023 and into 2024. WELL's objective is to invest in and achieve significant growth while effectively managing its costs and delivering strong growth and sustained cashflow to shareholders. Management provided the following update to its revenue guidance, which only includes announced acquisitions:
WELL says it is focused on growing and acquiring as much market share as possible while delivering solid and sustained Adjusted EBITDA and cashflow growth each year. This is part of our management team's approach to providing shareholders with sustained profitable growth and industry leadership.
WELL is the largest owner and operator of healthcare Clinics in Canada. WELL expects to continue to grow its industry leading Canadian Patient Services business both organically and inorganically and enhance its market leadership as the country's first pan-Canadian clinical network with a highly integrated network of tech-enabled outpatient healthcare clinics across the country. Meanwhile, growth in the Company's WELL Health USA Patient Services business is expected to be primarily driven by organic growth, augmented by the Company's recent acquisition of CarePlus.
As a company with deep tech experience and capabilities, WELL has also made investments in AI technologies a key priority within the Company and expects to develop compelling new products and enhancements to roll out to WELL's vast provider network.
WELL's strong organic growth and robust cash flow profile allows the Company to continue to successfully execute on its acquisition plans, according to the company. Management expects additional cash flows generated by the Company will be re-invested in the business and allocated in a disciplined manner.
Selected Unaudited Financial Highlights:
Please see SEDAR for complete copies of the Company's condensed interim consolidated financial statements and interim MD&A for the quarter ended September 30, 2023.
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices.
WELL's solutions enable more than 33,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 150 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, mental health, revenue cycle management, and practitioner recruiting.
WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more about the Company, please visit: www.well.company.
Adjusted Gross Profit and Adjusted Gross Margin
The Company defines Adjusted Gross Profit as revenue less cost of sales (excluding depreciation and amortization) and Adjusted Gross Margin as adjusted gross profit as a percentage of revenue. Adjusted gross profit and adjusted gross margin should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company does not present gross profit in its consolidated financial statements as it is a non-GAAP financial measure. The Company believes that adjusted gross profit and adjusted gross margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services.
Adjusted Free Cash Flow
The Company defines Adjusted Free Cash Flow Attributable to Shareholders as Adjusted EBITDA Attributable to Shareholders, less cash interest, less cash taxes and less capital expenditures.
Adjusted Net income, Adjusted Net Income per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin and Adjusted Free Cash Flow are not recognized measures for financial statement presentation under IFRS and do not have standardized meanings. As such, these measures may not be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS.
Notice Regarding Forward Looking Information
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. [ MORE ]
Notice Regarding Forward Looking Information
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.
These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the prospective lead order and the intended use of proceeds of the Offering.
There are numerous risks and uncertainties that could cause actual results and WELL's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the primary healthcare sector in general; (iii) that the proceeds of the Offering may need to be used other than as set out in this news release and other factors beyond the control of the Company. Actual results and future events could differ materially from those anticipated in such information.
These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
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