VANCOUVER, BC, March 16, 2021 /PRNewswire/ - CRH Medical
Corporation (TSX: CRH) (NYSE MKT: CRHM) ("CRH" or the "Company"),
today announced financial and operating results for the year and
three months ended December 31,
2020.
Fourth quarter 2020 highlights (all results expressed in
USD):
- Total revenue of $36.8 million,
an increase of 21% from fourth quarter 2019
- Anesthesia services revenue of $34.1
million, an increase of 24% from fourth quarter 2019
- Anesthesia patient cases of 108,681 increased 15% from fourth
quarter 2019
- Adjusted operating EBITDA of $16.1
million, a 44% adjusted operating EBITDA margin
- Adjusted operating shareholder EBITDA of $11.2 million, an increase of 27% from fourth
quarter 2019
Year-end highlights (all results expressed in USD) – Q1 to Q3
significantly impacted by COVID 19:
- Total revenue of $106.2 million,
a decrease of 12% over 2019
- Anesthesia services revenue of $97.7
million, a decrease of 11% over 2019
- Anesthesia patient cases of 323,644, a decrease of 6% over
2019
- Adjusted operating EBITDA of $42.4
million, a 40% adjusted operating EBITDA margin
- Adjusted operating shareholder EBITDA of $28.7 million, a decrease of 22% from 2019
Tushar Ramani, Chief Executive
Officer of CRH, commented: "We are pleased to report record fourth
quarter revenue and shareholder EBITDA as the impact of
COVID-19 on the facilities we serve has abated and they
have returned to and remained at normal operating levels, yielding
healthy organic growth in anesthesia case volumes and strong
acquisition activity in the latter half of 2020. As we progress in
2021, we look forward to sustained operating volumes and continued
execution of our market strategies."
About CRH Medical Corporation
CRH Medical Corporation is a North American company focused on
providing gastroenterologists throughout the United States with innovative services and
products for the treatment of gastrointestinal diseases. In 2014,
CRH became a full-service gastroenterology anesthesia company that
provides anesthesia services for patients undergoing endoscopic
procedures in ambulatory surgical centers. To date, CRH has
completed 32 anesthesia acquisitions. CRH now serves 70 ambulatory
surgical centers in 14 states. In addition, CRH owns the CRH
O'Regan System, a single-use, disposable, hemorrhoid banding
technology that is safe and highly effective in treating all grades
of hemorrhoids. CRH distributes the O'Regan System, treatment
protocols, operational and marketing expertise as a complete,
turnkey package directly to gastroenterology practices, creating
meaningful relationships with the gastroenterologists it serves.
CRH's O'Regan System is currently used in all 48 lower US
states.
Non-GAAP Measures
This press release makes reference to certain non-GAAP financial
measures including adjusted operating EBITDA (in total and broken
down as attributable to non-controlling interest and shareholders
of the Company) and adjusted operating EBITDA margin as
supplemental indicators of its financial and operating
performance. Adjusted operating EBITDA is defined as
operating income before interest, taxes, depreciation,
amortization, stock based compensation, acquisition related
expenses and asset impairment charges. Adjusted operating EBITDA
margin is defined as operating earnings before interest, taxes,
depreciation, amortization, stock based compensation, acquisition
related expenses and asset impairment charges as a percentage of
revenue. These non-GAAP measures are not recognized measures under
US Generally Accepted Accounting Principles ("US GAAP") and do not
have a standardized meaning prescribed by US GAAP and thus the
Company's definition may be different from and unlikely to be
comparable to non-GAAP measures presented by other companies. These
measures are provided as additional information to complement US
GAAP measures by providing further understanding of the Company's
results of operations from management's perspective. Accordingly,
they should not be considered in isolation nor as a substitute for
analyses of the Company's financial information reported under US
GAAP. Management uses non-GAAP measures such as adjusted operating
EBITDA and adjusted operating EBITDA margin to provide investors
with a supplemental measure of the Company's operating performance
and thus highlight trends in the Company's core business that may
not otherwise be apparent when relying solely on US GAAP financial
measures. Management also believes that securities analysts,
investors and other interested parties frequently use non-GAAP
measures in the evaluation of issuers. In addition, management uses
these non-GAAP measures in order to facilitate operating
performance comparisons from period to period, prepare annual
operating budgets, and to assess its ability to meet future debt
service, capital expenditure, and working capital requirements. A
quantitative reconciliation of adjusted operating EBITDA, and
operating EBITDA margin to the most directly comparable measures
under US GAAP is presented below.
ADJUSTED OPERATING EBITDA
|
2020
|
|
2019
|
(USD in
thousands)
|
FY
'20
|
|
Q4
'20
|
|
Q3
'20
|
|
Q2
'20
|
|
Q1
'20
|
|
FY
'19
|
|
Q4
'19
|
|
Q3
'19
|
|
Q2
'19
|
|
Q1
'19
|
Net and
comprehensive
income (loss)
|
(22,912)
|
|
(17,658)
|
|
309
|
|
(3,428)
|
|
(2,135)
|
|
8,213
|
|
2,104
|
|
2,099
|
|
2,619
|
|
1,391
|
Net finance (income)
expense
|
2,151
|
|
765
|
|
442
|
|
447
|
|
497
|
|
6,609
|
|
913
|
|
1,125
|
|
2,179
|
|
2,392
|
Equity
income
|
(16)
|
|
(54)
|
|
—
|
|
22
|
|
16
|
|
(1,766)
|
|
(1,350)
|
|
(77)
|
|
(214)
|
|
(125)
|
Income tax
expense
(recovery)
|
(7,543)
|
|
(5,959)
|
|
(376)
|
|
(234)
|
|
(974)
|
|
1,627
|
|
891
|
|
565
|
|
4
|
|
167
|
Other income -
government assistance
|
(5,443)
|
|
(296)
|
|
(290)
|
|
(4,857)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Impairment
|
27,008
|
|
27,008
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Operating income
(loss)
|
(6,756)
|
|
3,806
|
|
85
|
|
(8,049)
|
|
(2,597)
|
|
14,683
|
|
2,558
|
|
3,713
|
|
4,587
|
|
3,825
|
Amortization
expense
|
40,492
|
|
10,889
|
|
10,735
|
|
9,489
|
|
9,380
|
|
34,898
|
|
9,006
|
|
8,528
|
|
8,723
|
|
8,641
|
Depreciation and
related
expense
|
166
|
|
83
|
|
26
|
|
28
|
|
29
|
|
111
|
|
29
|
|
28
|
|
27
|
|
27
|
Stock based
compensation
|
2,710
|
|
809
|
|
653
|
|
595
|
|
653
|
|
977
|
|
697
|
|
706
|
|
(990)
|
|
564
|
Acquisition
expenses1
|
260
|
|
173
|
|
57
|
|
12
|
|
18
|
|
104
|
|
(19)
|
|
83
|
|
20
|
|
20
|
Inventory
write-downs
|
65
|
|
—
|
|
—
|
|
—
|
|
65
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Other non-recurring
items2
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
931
|
|
—
|
|
—
|
|
931
|
|
—
|
Other income -
government assistance
|
5,443
|
|
296
|
|
290
|
|
4,857
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total adjusted
operating
EBITDA
|
42,378
|
|
16,055
|
|
11,845
|
|
6,932
|
|
7,547
|
|
51,703
|
|
12,270
|
|
13,058
|
|
13,298
|
|
13,077
|
Adjusted
operating
EBITDA attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
28,739
|
|
11,221
|
|
7,968
|
|
4,681
|
|
4,871
|
|
36,623
|
|
8,805
|
|
9,392
|
|
9,661
|
|
8,766
|
Non-controlling
interest
|
13,638
|
|
4,834
|
|
3,877
|
|
2,251
|
|
2,676
|
|
15,080
|
|
3,465
|
|
3,666
|
|
3,638
|
|
4,311
|
1
|
Acquisition expenses
relating to incomplete acquisitions
|
2
|
Non-recurring
expenses relating to the replacement of the Company's
CEO
|
ADJUSTED OPERATING EBITDA MARGIN
|
2020
|
|
2019
|
(USD in
thousands)
|
FY '20
|
|
|
Q4 '20
|
|
|
Q3
'20
|
|
|
Q2
'20
|
|
|
Q1
'20
|
|
|
FY '19
|
|
|
Q4 '19
|
|
|
Q3
'19
|
|
|
Q2
'19
|
|
|
Q1
'19
|
|
Revenue
|
106,172
|
|
|
36,783
|
|
|
30,349
|
|
|
13,585
|
|
|
25,455
|
|
|
120,385
|
|
|
30,369
|
|
|
30,415
|
|
|
30,482
|
|
|
29,119
|
|
Operating
income
|
(6,756)
|
|
|
3,806
|
|
|
85
|
|
|
(8,049)
|
|
|
(2,597)
|
|
|
14,682
|
|
|
2,558
|
|
|
3,713
|
|
|
4,587
|
|
|
3,825
|
|
Operating
margin
|
(6.4)
|
%
|
|
10.3
|
%
|
|
0.3
|
%
|
|
(59.3)
|
%
|
|
(10.2)
|
%
|
|
12.2
|
%
|
|
8.4
|
%
|
|
12.2
|
%
|
|
15.0
|
%
|
|
13.1
|
%
|
Amortization
expense
|
38.1
|
%
|
|
29.6
|
%
|
|
35.3
|
%
|
|
69.9
|
%
|
|
36.8
|
%
|
|
29.0
|
%
|
|
29.7
|
%
|
|
28.0
|
%
|
|
28.6
|
%
|
|
29.7
|
%
|
Depreciation and
related
expense
|
0.2
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Stock based
compensation
|
2.6
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
|
4.4
|
%
|
|
2.6
|
%
|
|
0.8
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
(3.2)
|
%
|
|
1.9
|
%
|
Acquisition
expenses1
|
0.2
|
%
|
|
0.5
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
(0.1)
|
%
|
|
0.3
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Inventory
write-downs
|
0.1
|
%
|
|
0.0
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
0.3
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
Other non-recurring
items2
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
0.8
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
3.1
|
%
|
|
(—)
|
%
|
Other income -
government assistance
|
5.1
|
%
|
|
0.8
|
%
|
|
1.0
|
%
|
|
35.8
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
|
(—)
|
%
|
Total adjusted
operating
EBITDA margin
|
39.9
|
%
|
|
43.6
|
%
|
|
39.0
|
%
|
|
51.0
|
%
|
|
29.7
|
%
|
|
42.9
|
%
|
|
40.4
|
%
|
|
42.9
|
%
|
|
43.6
|
%
|
|
44.9
|
%
|
1
|
Acquisition expenses
relating to incomplete acquisitions
|
2
|
Non-recurring
expenses relating to the replacement of the Company's
CEO
|
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information included or incorporated by
reference in this document may constitute "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of Canadian securities laws (collectively,
"forward-looking statements"). Forward looking statements include
statements regarding the expected benefits of the Company's
recently completed acquisition, as well as all other statements
that are not statements of historical fact. Forward-looking
statements are generally identifiable by use of the words "may,"
"will," "should," "expect," "anticipate," "estimate," "believe,"
"plan," "intend" or "project" or the negative of these words or
other variations on these words or comparable terminology.
Forward-looking statements reflect current expectations of
management regarding future events and performance as of the date
of this document and involve known and unknown risks, uncertainties
and other factors which may cause our actual results to be
materially different those expressed or implied by any
forward-looking statements. These forward-looking statements should
not be read as guarantees of future results, and there can be no
assurance that the results expressed or implied by any
forward-looking statements will be achieved. Important factors that
could cause actual results to differ materially from the results
discussed in forward-looking statements include: (i) the risk that
the Company may be unable to achieve anticipated synergies relating
to the acquisition, or that such acquisition could result in
unforeseen operating difficulties and expenditures, or require
significant management resources and significant charges; (ii) the
possibility that the Company will be unable to retain key
personnel; (iii) the risk that customers may terminate or choose
not to renew their agreements with us, that we are unable to
maintain or increase anesthesia procedure volumes or that there are
changes to payment rates or methods of third-party payors;
(iv) the risk of other disruption from the acquisition,
including potential adverse reactions or changes to business
relationships with customers, employees, suppliers or regulators,
making it more difficult to maintain business and operational
relationships; (v) risks and uncertainties relating to the pending
transaction between the Company and WELL Health Technologies Corp.,
including those relating to the parties' ability to consummate the
proposed transaction in the time period expected or at all, and the
parties' ability to achieve the anticipated benefits of such
transaction; (vi) uncertainties related to developments in the
COVID-19 pandemic and its impact on the Company's operations; and
(vii) uncertainties related to general economic, financial,
regulatory and political conditions, as well as potential changes
in law and regulatory interpretations.
Additional factors that could cause actual results to differ
materially from expectations include, without limitation, the risks
identified by the Company in its most recent Annual Report on Form
10-K, its Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K, which are available on EDGAR at www.sec.gov/edgar.shtml
or on the Company's website
at www.crhmedcorp.com The Company disclaims any
intent or obligations to update or revise publicly any
forward-looking statements whether as a result of new information,
estimates or options, future events or results or otherwise, unless
required to do so by law.
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SOURCE CRH Medical Corporation