VANCOUVER, BC, Nov. 10, 2021 /PRNewswire/ – WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL“), a company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, announced today its results for the third quarter of 2021 ended September 30, 2021.
Hamed Shahbazi, Chairman and CEO of WELL commented, “We had an outstanding quarter mainly as a result of the growing success of our practitioner enablement platform and strong financial performance from our recent acquisitions. In the third quarter we also achieved adjusted gross profit(1) of $50.0 million which was almost 10 times the adjusted gross profit as compared to the same period last year. Our adjusted gross margin(1) percentage increased to over 50% for the first time, and we have now accomplished four consecutive quarters of positive Adjusted EBITDA(2), which has experienced significant growth throughout the year.”
Mr. Shahbazi added, “We could not have achieved such stellar results if it wasn’t for the healthcare practitioners and clinicians that provide outstanding care every day as well as all the clinical, IT and corporate staff that support them every day. Our outlook is strong and resilient with 93% of our revenues being recurring or highly re-occurring. We are looking forward to delivering continued strong results in the next few quarters, with sustained organic growth from both key lines of business.”
Third Quarter 2021 Financial Highlights:
Third Quarter 2021 Business Highlights:
Events Subsequent to September 30, 2021:
Outlook:
WELL remains on track to achieve its goals for 2021, namely: (i) build out and refine its practitioner enablement platform and deploy its services both internally to WELL healthcare practitioners as well as offer its services to healthcare practitioners outside of WELL; (ii) accelerate organic growth across all of its operating business units by leveraging its size, scale and network effects; (iii) follow a disciplined acquisition and capital allocation strategy; and (iv) grow its Adjusted EBITDA(2) throughout the year by pursuing our organic and inorganic growth strategies.
WELL expects to continue its growth in the fourth quarter driven by healthy organic growth from its two lines of business, omni-channel patient services and virtual services. The Company expects to end the year with an annualized revenue run-rate approaching $450 million and approaching $100 million in operating Adjusted EBITDA(2). WELL’s growth plan continues to include both organic and inorganic growth opportunities with a strong emphasis on generating incremental organic growth by leveraging the strong network effects inherent in the business.
Conference Call:
WELL will hold a conference call to discuss its 2021 Third Quarter financial results on Wednesday, November 10, 2021 at 1:00 pm ET (10:00 am PT). The conference call will be simultaneously webcast and can be accessed at the following audience URL:
https://www.well.company/for-investors/events/
Listeners may also use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local) or 1-888-664-6383 (Toll-Free), with Conference ID: 7162 1711.
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 three and nine months ended September 30, 2021 and 2020.
Three months |
Three months ended |
Three months |
Nine months |
Nine months |
||
$ ‘000 |
$ ‘000 |
$ ‘000 |
$ ‘000 |
$ ‘000 |
||
Revenue |
99,291 |
61,793 |
12,246 |
186,644 |
33,051 |
|
Cost of sales (excluding depreciation and amortization) |
-49,322 |
-31,589 |
-7,200 |
-96,432 |
-19,836 |
|
Adjusted gross profit(1) |
49,969 |
30,204 |
5,046 |
90,212 |
13,215 |
|
Adjusted gross margin(1) |
50.3% |
48.9% |
41.2% |
48.3% |
40.0% |
|
Adjusted EBITDA(2) |
22,275 |
11,882 |
-153 |
34,684 |
-857 |
|
Net loss |
-10,408 |
-14,109 |
-3,581 |
-31,602 |
-8,983 |
|
Total comprehensive loss for the period |
-8,965 |
-14,444 |
-3,581 |
-30,540 |
-8,983 |
|
Net loss per share – for the period, basic and diluted (in $) |
-0.06 |
-0.08 |
-0.03 |
-0.19 |
-0.07 |
|
Weighted average number of common shares outstanding, basic and diluted |
203,959,885 |
187,778,646 |
134,411,897 |
185,103,512 |
126,275,468 |
|
Reconciliation of net loss to Adjusted EBITDA(2) |
||||||
Net loss for the period |
-10,408 |
-14,109 |
-3,581 |
-31,602 |
-8,983 |
|
Depreciation and amortization |
16,326 |
12,144 |
849 |
29,912 |
2,403 |
|
Income tax expense (recovery) |
2,854 |
1,120 |
-23 |
4,341 |
146 |
|
Interest income |
-71 |
-94 |
-61 |
-485 |
-236 |
|
Interest expense |
3,124 |
1,351 |
506 |
4,933 |
1,600 |
|
Rent expense on finance leases |
-1,909 |
-856 |
-543 |
-3,575 |
-1,547 |
|
Stock-based compensation |
9,447 |
4,309 |
1,312 |
16,749 |
2,988 |
|
Foreign exchange (gain) loss |
-387 |
4,842 |
– |
4,466 |
– |
|
Time-based earn-out expense |
1,393 |
996 |
391 |
3,280 |
1,236 |
|
Share of loss (profit) of associates |
97 |
-8 |
160 |
153 |
245 |
|
Transaction, restructuring, & integration costs expensed |
1,809 |
2,187 |
837 |
6,512 |
1,291 |
|
Adjusted EBITDA(2) |
22,275 |
11,882 |
-153 |
34,684 |
-857 |
|
Attributable to WELL shareholders |
16,449 |
7,245 |
-313 |
24,157 |
-1,037 |
|
Attributable to Non-controlling interests |
5,826 |
4,637 |
160 |
10,527 |
180 |
|
Adjusted EBITDA(2) |
||||||
Canada and others |
3,483 |
-2,751 |
-153 |
1,843 |
-857 |
|
US operations |
18,792 |
14,633 |
– |
32,841 |
– |
|
Adjusted EBITDA(2)attributable to WELL shareholders |
||||||
Canada and others |
3,278 |
-2,939 |
-313 |
1,209 |
-1,037 |
|
US operations |
13,171 |
10,184 |
– |
22,948 |
– |
|
Adjusted EBITDA(2)attributable to Non-controlling interests |
||||||
Canada and others |
206 |
188 |
160 |
635 |
180 |
|
US operations |
5,620 |
4,449 |
– |
9,892 |
– |
|
12 |
||||||
SWM ebitda YTD Sep |
-62 |
|||||
SMC ebitda YTD SEP |
242 |
180 |
Notes:
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is a technology enabled healthcare company whose overarching objective is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end to end practice management tools inclusive of virtual care and digital patient engagement capabilities as well as Electronic Medical Records (EMR), Revenue Cycle Management (RCM) and data protection services. WELL uses this platform to power healthcare practitioners both inside and outside of WELL’s own omni-channel patient services offerings. WELL owns and operates Canada’s largest network of outpatient medical clinics serving primary and specialized healthcare services and is the provider of a leading multi-national multi-disciplinary telehealth offering. WELL is publicly traded on the Toronto Stock Exchange under the symbol “WELL” and is part of the TSX Composite Index. To learn more about the company, please visit: www.well.company.
Forward-Looking Information
This news release may contain “Forward-Looking Information” within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company’s goals, strategies and growth plans; expectations regarding continued revenue and EBITDA growth; the expected benefits and synergies of completed acquisitions; the expected financial performance as well as information in the “Outlook” section herein. Forward-looking information 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. Forward-looking information 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 information 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 the forward-looking information and the forward-looking information are not guarantees of future performance. WELL’s comments expressed or implied by such forward-looking information 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 information. Forward-looking information 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 any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL’s anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
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SOURCE WELL Health Technologies Corp.
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