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WELL Health Technologies Reports Record Revenue of $569.1 Million (up 88%) for Full Year 2022, Provides Strong Outlook for 2023
Monday, April 17, 2023Company Profile | Follow Company
Vancouver, BC, April 17, 2023--(T-Net)--WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, announced its audited consolidated financial results for the fiscal year and fourth quarter ended December 31, 2022.
Hamed Shahbazi, Chairman & Chief Executive Officer, WELL Health Technologies Corp.
Hamed Shahbazi, Chairman and CEO of WELL commented, "We had an outstanding year, demonstrating strength across all our key operational and patient metrics and reflected continued elevated organic growth of 19% on a YoY basis. Our technology and IP rich virtual services segment continued to lead the way with 154% YoY growth which reflects both our SAAS services as well as our digital patient services businesses. Our record revenue and increasing patient visits are a testament to the Company's continued focus on delivering high quality, NPS (Net Promoter Score) leading, accessible and innovative healthcare solutions."
Mr. Shahbazi further added, "WELL's committed and passionate high-performance team delivered $104.6 million in operating Adjusted EBITDA and $48.8 million in Adjusted Free Cash Flow(1) to shareholders in 2022. With our contingent liabilities and deferred acquisition costs decreasing and our core cash flow increasing, we are in an excellent position to continue to have the option to allocate capital into new growth initiatives and/or further de-lever our debt position. With our leadership position in the digital healthcare industry and continued cash flow generation, we are well-positioned for continued success in 2023 and beyond."
Eva Fong, Chief Financial Officer, WELL Health Technologies Corp.
Eva Fong, WELL's CFO commented, "We are very pleased to report that in fiscal 2022, 96% of WELL's $569.1M in revenues were either recurring or highly re-occurring in nature. WELL's recurring or subscription related revenues grew to 10% of total revenues and our highly re-occurring patient services revenue accounted for 86% of total revenues. We are building shareholder value by demonstrating a rapidly growing and highly predictable tech enabled enterprise."
Fiscal 2022 Annual Financial Highlights:
Fourth Quarter 2022 Financial Highlights:
Fourth Quarter and Annual 2022 Patient Visit Metrics:
WELL achieved a total of 991,268 omni-channel patient visits in Q4-2022, representing a year-over-year increase of 42% compared to Q4-2021, and an 11% increase compared to Q3-2022. In addition, WELL conducted 180,342 diagnostic visits in Q4-2022, and completed 186,045 asynchronous patient consultations. Combining WELL's omni-channel patient visits, diagnostic visits and asynchronous patient consultations, WELL achieved a total of 1,357,655 patient interactions in Q4-2022.
For the full year, WELL achieved a total of approximately 3.5 million omni-channel patient visits and 4.9 million patient interactions in 2022. Omni-channel patient visits grew 50% in 2022 compared to the prior year, and total patient interactions grew 86% over the same period. This growth was driven through a combination of acquisitions and organic growth.
Fourth Quarter 2022 Business Highlights:
On November 1, 2022, the Company completed the acquisition Cloud Practice Inc. and three primary care clinics located in the province of British Columbia from CloudMD Software & Services Inc. for total consideration of $5.75 million subject to post-closing working capital and holdback adjustments. The assets acquired with Cloud Practice includes OSCAR based Juno EMR and ClinicAid billing software application.
Events Subsequent to December 31, 2022:
On March 1, 2023, the Company completed the acquisition of 51% interest in Affiliated Tampa Anesthesia Associates, LLC ("ATAA") for cash consideration of $6.1 million plus transaction costs. ATAA services two ASCs and is staffed by thirty-four credentialled practitioners.
On March 2, 2023, the Company's venture capital arm, WELL Ventures led an investment round alongside its partner Horizon Ventures and a syndicate of leading venture capital firms, in doctorly GmbH ("doctorly"), a medical practice management software provider based in Germany. doctorly provides a fully centralised, cloud powered, GDPR compliant, medical practice operating system that dramatically reduces the time and effort doctors and medical assistants spend on day-to-day administrative tasks. As part of the investment and strategic alliance agreements, the Ocean platform, created by WELL's wholly owned subsidiary OceanMD, will be used as the exclusive booking and practice engagement platform for doctorly. This will be WELL's first commercial launch into the European market.
Outlook:
WELL says its outlook continues to be positive and resilient for 2023. The Company is poised to achieve significant growth while effectively managing its costs and delivering sustained growth in cashflow available to shareholders. Management provided the following guidance for 2023:
WELL's strong organic growth and robust cash flow profile allows the Company to continue to successfully execute on its acquisition plans. Management expects additional cash flows generated by the Company will continue to be re-invested in the business and allocated in a disciplined manner, which may come in the form of further acquisitions, debt repayments, share repurchases, and/or to accelerate organic growth.
WELL is expecting to have strong performance in 2023 across all its business units and for the entire Company as a whole. Despite the current geo-political, inflationary, and turbulent economic environment, the Company does not foresee any material influences or challenges that would impair its ability to deliver solid results in 2023. Many of the key variables inherent in the execution of WELL's business are firmly in its own grasp and not dependent on outside factors.
WELL is a purpose-driven business that aims to transform the world for the better, as such the Company has embarked on an ongoing ESG (Environmental, Social and Governance) program. The Company plans on publishing its annual ESG report in mid-2023 highlighting WELL's ESG strategy, reporting initiatives and targeted actions. Please see more information on WELL's ESG program at: https://well.company/esg-report/
Selected Unaudited Financial Highlights:
Please see SEDAR for complete copies of the Company's audited annual consolidated financial statements and annual MD&A for the year ended December 31, 2022.
Year ended |
Quarter ended |
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December 31, |
December 31, |
December 31, |
September 30, |
December 31, |
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Restated |
Restated |
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$ '000 |
$ '000 |
$ '000 |
$ '000 |
$ '000 |
||
Revenue |
569,136 |
302,324 |
156,513 |
145,789 |
115,680 |
|
Cost of sales (excluding depreciation and amortization) |
(265,845) |
(148,629) |
(76,276) |
(67,597) |
(52,197) |
|
Adjusted gross profit(1) |
303,291 |
153,695 |
80,237 |
78,192 |
63,483 |
|
Adjusted gross margin(1) |
53.3 % |
50.8 % |
51.3 % |
53.6 % |
54.9 % |
|
Adjusted EBITDA(1) |
104,559 |
60,363 |
27,174 |
27,458 |
25,679 |
|
Net income (loss) |
18,675 |
(31,287) |
22,084 |
611 |
(4,446) |
|
Adjusted net income (1) |
53,704 |
16,353 |
12,493 |
14,753 |
10,099 |
|
Net loss per share, basic and diluted (in $) |
0.00 |
(0.23) |
0.09 |
(0.02) |
(0.05) |
|
Adjusted Net income per share, basic and diluted (in $) (1) |
0.24 |
0.09 |
0.05 |
0.07 |
0.05 |
|
Weighted average number of common shares outstanding, basic |
220,691,471 |
190,900,309 |
229,505,226 |
226,783,493 |
208,101,672 |
|
Reconciliation of net loss to Adjusted EBITDA: |
||||||
Net income (loss) for the period |
18,675 |
(31,287) |
22,084 |
611 |
(4,446) |
|
Depreciation and amortization |
55,203 |
38,710 |
14,100 |
13,918 |
13,687 |
|
Income tax expense (recovery) |
(1,150) |
5,802 |
(3,684) |
2,979 |
1,350 |
|
Interest income |
(649) |
(555) |
(238) |
(200) |
(70) |
|
Interest expense |
25,291 |
9,009 |
7,761 |
7,122 |
4,059 |
|
Rent expense on finance leases |
(9,176) |
(5,474) |
(2,458) |
(2,339) |
(1,899) |
|
Stock-based compensation |
24,483 |
21,012 |
4,934 |
5,883 |
4,263 |
|
Foreign exchange (gain) loss |
670 |
4,749 |
61 |
1,088 |
283 |
|
Time-based earn-out expense |
(15,767) |
5,085 |
(25,472) |
2,669 |
1,805 |
|
Gain on disposal of subsidiaries |
(5,206) |
- |
34 |
(5,240) |
- |
|
Share of net loss of associates |
396 |
209 |
(37) |
195 |
56 |
|
Revenue precluded from recognition under IFRS 15 (2) |
- |
3,110 |
- |
- |
3,110 |
|
Loss on transition of billing service provider (3) |
9,577 |
- |
9,577 |
- |
- |
|
Transaction, restructuring, & integration costs expensed |
2,494 |
9,993 |
192 |
772 |
3,481 |
|
Adjusted EBITDA(1) |
104,559 |
60,363 |
27,174 |
27,458 |
25,679 |
|
Attributable to WELL shareholders |
76,613 |
41,968 |
21,090 |
20,240 |
17,811 |
|
Attributable to Non-controlling interests |
27,946 |
18,395 |
6,084 |
7,218 |
7,868 |
|
Adjusted EBITDA(1) |
||||||
WELL Corporate |
(16,750) |
(13,208) |
(4,086) |
(4,623) |
(3,978) |
|
Canada and others |
32,453 |
16,228 |
9,094 |
9,877 |
5,155 |
|
US operations |
88,856 |
57,343 |
22,166 |
22,204 |
24,502 |
|
Adjusted EBITDA(1) attributable to WELL shareholders |
||||||
WELL Corporate |
(16,750) |
(13,208) |
(4,086) |
(4,623) |
(3,978) |
|
Canada and others |
31,679 |
15,371 |
8,916 |
9,631 |
4,933 |
|
US operations |
61,684 |
39,805 |
16,260 |
15,232 |
16,856 |
|
Adjusted EBITDA(1) attributable to Non-controlling interests |
||||||
Canada and others |
774 |
857 |
178 |
246 |
222 |
|
US operations |
27,172 |
17,538 |
5,906 |
6,972 |
7,646 |
|
Reconciliation of net loss to Adjusted Net Income: |
||||||
Net income (loss) for the period |
18,675 |
(31,287) |
22,084 |
611 |
(4,446) |
|
Amortization of intangible assets |
42,819 |
31,325 |
11,001 |
10,620 |
10,552 |
|
Time-based earn-out expense |
(15,767) |
5,085 |
(25,472) |
2,669 |
1,805 |
|
Stock-based compensation |
24,483 |
21,012 |
4,934 |
5,883 |
4,263 |
|
Revenue precluded from recognition under IFRS 15 (2) |
- |
3,110 |
- |
- |
3,110 |
|
Other items |
1,082 |
- |
1,082 |
- |
- |
|
Non-controlling interest included in net income |
(17,306) |
(12,892) |
(1,456) |
(5,030) |
(5,185) |
|
Adjusted Net Income (1) |
53,704 |
16,353 |
12,493 |
14,753 |
10,099 |
|
Adjusted Net Income per share (1) |
0.24 |
0.09 |
0.05 |
0.07 |
0.05 |
About WELL Health Technologies Corp.
WELL is a practitioner-focused digital healthcare company. WELL's overarching mission is to positively impact health outcomes by leveraging technology to empower healthcare practitioners and their patients globally. WELL exists to enable healthcare practitioners with best-in-class technology and services.
WELL has built the most comprehensive end-to-end healthcare system across Canada including the nation's largest network of clinics supporting primary care, specialized care, and diagnostics services. In the United States, WELL provides omni-channel healthcare services and solutions targeting specialized markets such as the gastrointestinal market, women's health, primary care, and mental disorders. In addition to providing patient services, WELL develops, integrates, and sells its own suite of technology software and solutions to medical clinics and healthcare practitioners.
WELL's practitioner enablement platform includes: Electronic Medical Records ("EMR"), telehealth platforms, practice management, billing, Revenue Cycle Management ("RCM"), digital health apps and data protection solutions. 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.
Footnotes:
Adjusted Net Income and Adjusted Net Income per Share
The Company defines Adjusted Net Income as net income (loss), after excluding the effects of stock-based compensation expense, amortization of acquired intangible assets, time-based earnout expense, change in fair value of investments, non-controlling interests, and revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships. Adjusted Net Income Per Share is Adjusted Net Income divided by weighted average number of shares outstanding. The Company believes that these non-GAAP financial measures provide useful information to analyze our results, enhance a reader's understanding of past financial performance and allow for greater understanding with respect to key metrics used by management in decision making. More specifically, the Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELL shareholders.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, share of loss of associates, foreign exchange gain/loss, and stock-based compensation expense, (iii) revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships, and (iv) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA a financial metric that measures cash that the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance in accordance with IFRS.
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 ] |
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WELL Health Technologies Corp.
Vancouver (Other Tech Sectors)
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