PLANTATION, Fla., Nov. 15, 2021 /CNW/ - Akumin Inc. (NASDAQ: AKU)
(TSX: AKU) ("Akumin" or the "Corporation") announced today its
financial results for the quarter ended June
30, 2021 ("Q2 Fiscal 2021"), as well as the filing of its
restated annual financial statements for the periods ended
December 31, 2020 and 2019 and its
restated interim financial statements for the quarter ended
March 31, 2021 (the "Restated
Financial Statements").
Q2 Fiscal 2021
Summary Consolidated Financial Results (in
thousands, except for per share amounts)
|
|
(Restated)
|
|
(Restated)
|
|
3-month period
ended
Jun. 30,
2021
|
3-month period
ended
Jun. 30,
2020
|
6-month period
ended
Jun. 30,
2021
|
6-month period
ended
Jun. 30,
2020
|
Volume in
RVUs
|
1,659
|
1,094
|
3,174
|
2,619
|
Revenue
|
69,496
|
47,365
|
133,459
|
115,535
|
EBITDA
(1)
|
6,153
|
4,428
|
16,201
|
14,252
|
Adjusted EBITDA
(1)
|
11,685
|
5,636
|
20,583
|
15,545
|
EPS
–Diluted
|
(0.10)
|
(0.11)
|
(0.15)
|
(0.15)
|
(1) See "Non-GAAP Measures"
below.
|
Commenting on the Q2 Fiscal 2021 financial results, Riadh Zine, Chairman and Co-Chief Executive
Officer of the Corporation, said, "During the quarter, we generated
revenue of $69.5 million, which is
in-line with consensus estimates. After taking into account
the revised approach to implicit price concessions reflected in our
restated financial statements, the total service fee revenue per
RVU during the second quarter of 2021 was $41, as compared to $42 after the restatement for the full fiscal
2020. Prior to the restatement, we showed total service fee
revenue per RVU of $43 for fiscal
2020.
"Akumin's volume for the quarter was approximately 1,659,000
RVUs, compared to approximately 1,094,000 RVUs in the same quarter
last year. This represents an increase of 52% year-over-year
and a 10% increase compared to Q1 2021. On an organic volume
basis, RVUs increased by 45% compared to the same prior period,
which was significantly impacted by the COVID-19 pandemic.
Volumes for the quarter are in-line with pre-pandemic levels in
most regions where we currently operate.
"Adjusted EBITDA during the quarter was $11.7 million as compared to $5.6 million in the same period last year,"
Mr. Zine concluded.
Restated Financial Statements and Delayed Q3 Filings
As previously announced, Akumin has restated its annual
financial statements for the years ended December 31, 2020 and 2019 and its interim
financial statements for the period ended March 31, 2021, as well as the management's
discussion and analysis for those periods.
The Restated Financial Statements were necessary because
management determined corrections were required relating to its
estimates for implicit price concessions on historic accounts
receivable and because certain costs relating to the replacement of
certain component parts that were previously capitalized should
more accurately be expensed as repair and maintenance. In
accordance with the prior disclosure in Akumin's press releases
dated October 12, 2021 and
November 8, 2021, the changes made in
the Restated Financial Statements resulted in an accounts
receivable balance as at June 30,
2021 shown in the Q2 Fiscal 2021 financial statements of
$67.6 million, and a restated balance
as at March 31, 2021 of $64.2 million, as compared to Akumin's previously
reported March 31, 2021 accounts
receivable balance of $95.9 million,
and a net book value of property and equipment as at June 30, 2021 shown in the Q2 Fiscal 2021
financial statements of $60.4
million, and a restated net book value as at March 31, 2021 of $61.6
million, as compared to Akumin's previously reported
March 31, 2021 net book value of
property and equipment of $79.2
million.
As disclosed previously, given preparation of the Restated
Financial Statements and Akumin's interim financial statements for
Q2 Fiscal 2021 has impacted the timely completion, and auditor's
review, of Akumin's interim financial statements for the quarter
ended September 30, 2021, Akumin will
not be able file its interim financial results for the quarter
ended September 30, 2021, and the
related management's discussion and analysis and CEO and CFO
certificates (collectively, the "Q3 Filings") by today's reporting
deadline of November 15, 2021. Akumin
is currently working to complete the Q3 Filings and the auditor's
review of such filings at the earliest possible date and currently
expects to be in a position to file the Q3 Filings by December 15, 2021.
In light of the delays related to Akumin's Q3 Filings, Akumin
anticipates that it will continue to be subject to the management
cease trade order granted by the Ontario Securities Commission (the
"OSC"), as principal regulator of Akumin, on August 20, 2021 (the "MCTO") under National
Policy 12-203 – Management Cease Trader Orders ("NP 12-203") until
such order is rescinded by the OSC following Akumin's filing of the
Q3 Filings. Akumin confirms that it will continue to satisfy the
provisions of the alternative information guidelines under NP
12-203 by issuing bi-weekly default status reports in the form of
news releases for so long as it remains in default of the
above-noted filing requirements and the MCTO continues to
apply.
"We appreciate the patience of our various stakeholders as we've
worked to address the issues identified in our review of Akumin's
Q2 and historic financial results," said Mr. Zine with respect to
the filings. "We believe the robust review process undertaken is
reflective of our prudent approach to ensuring the integrity of our
financial statements and public filings. We continue to work hard
to complete our Q3 filings as expeditiously as possible and look
forward to returning to business as usual going forward, with a
focus on maximizing the value of our combined company as we
continue to integrate the Alliance acquisition."
Akumin Completed Acquisition of Alliance
As previously announced, subsequent to the end of the quarter,
Akumin closed its acquisition of Alliance HealthCare Services, Inc.
on September 1, 2021 for a purchase
price of $820 million.
"Akumin is now a powerhouse in outpatient healthcare solutions
well positioned to play a significant role in a changing healthcare
ecosystem that is shifting rapidly toward an outpatient setting,"
Mr. Zine said with respect to the acquisition. "The
Corporation offers multiple healthcare services, has long-standing
relationships with hospitals, health systems and physician groups,
and possesses the scale and experience to drive efficiencies,
innovation, and organic growth."
"As the partner of choice to hospital, health systems and
physicians in outpatient imaging and cancer care services, our team
will continue to put patient experience at the heart of what we do,
while fully integrating the corporate and shared services of the
organization to support all our healthcare solutions in all the
communities that we serve," added Rhonda
Longmore-Grund, President and Co-Chief Executive
Officer.
Foreign Private Issuer Status
As contemplated by the Corporation's management information
circular dated April 7, 2021, the
Corporation determined that as of June 30,
2021, more than 50% of its outstanding voting securities are
held by U.S. residents. Because more than 50% of the
Corporation's assets are located in, and Akumin's business is
administered principally in, the United
States, as of January 1, 2022,
Akumin will no longer qualify as a foreign private issuer. As
a result, from and after January 1,
2022, in addition to other obligations, Akumin will be
required to file periodic reports and registration statements on
U.S. domestic issuer forms with the Securities and Exchange
Commission. These filings are more detailed and extensive in
certain respects, and must be filed more promptly, than the forms
available to Akumin as a foreign private issuer.
About Akumin
Akumin is a national partner of choice for U.S. hospitals,
health systems and physician groups, with comprehensive solutions
addressing outsourced radiology and oncology service line needs.
With the acquisition of Alliance HealthCare Services, Akumin now
provides (1) freestanding, fixed-site outpatient diagnostic imaging
services through a network of more than 170 owned and/or operated
independent imaging centers located in 11 states; and (2)
outpatient radiology and oncology solutions to more than 1,000
hospitals and health systems in 46 states. By combining clinical
and operational expertise with the latest advances in technology
and information systems, Akumin and its ~4,000 Team Members
facilitate more efficient and effective diagnosis and treatment for
patients and their providers in 46 states. Akumin's imaging
procedures include MRI, CT, positron emission tomography (PET and
PET/CT), ultrasound, diagnostic radiology (X-ray), mammography, and
other interventional procedures; our cancer care services include a
full suite of radiation therapy and related offerings. For more
information, visit www.akumin.com and
www.alliancehealthcareservices-us.com.
Non-GAAP Measures
This press release refers to certain non-GAAP measures. These
non-GAAP measures are not recognized measures under United States generally accepted accounting
principles ("GAAP") and do not have a standardized meaning
prescribed by GAAP. There is unlikely to be comparable or
similar measures presented by other companies. Rather, these
non-GAAP measures are provided as additional information to
complement those GAAP measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these non-GAAP measures should not be considered in
isolation nor as a substitute for analysis of our financial
information reported under GAAP. We use non-GAAP financial
measures, including "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA
Margin" and "Adjusted net income (loss) attributable to
shareholders of Akumin" (each as defined below). These non-GAAP
measures are used to provide investors with supplemental measures
of our operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
GAAP measures. We believe the use of these non-GAAP measures, along
with GAAP financial measures, enhances the reader's understanding
of our operating results and is useful to us and to investors in
comparing performance with competitors, estimating enterprise
value, and making investment decisions. We also believe that
securities analysts, investors, and other interested parties
frequently use non-GAAP measures in the evaluation of issuers. Our
management uses non-GAAP measures to facilitate operating
performance comparisons from period to period, to prepare annual
operating budgets and forecasts and to determine components of
management compensation. Definitions and reconciliations of
non-GAAP measures to the relevant reported measures can be found in
our Management's Discussion and Analysis dated August 16, 2021 available in our public
disclosure at www.sedar.com and www.sec.gov.
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) attributable to
shareholders of the Corporation before interest expense (net),
income tax expense (benefit) and depreciation and amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for
stock-based compensation, impairment of property and equipment,
provisions for certain credit losses, settlement costs, provisions,
acquisition-related and public offering costs, gains (losses) in
the period, deferred rent expense (credit) and one-time
adjustments.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the
total revenue in the period.
"Adjusted net income (loss) attributable to shareholders of
Akumin" means Adjusted EBITDA less depreciation and
amortization and interest expense, taxed at Akumin's estimated
effective tax rate, which is a blend of U.S. federal and state
statutory tax rates for Akumin for the period.
Forward-Looking Information
Certain information in this press release constitutes
forward-looking information. In some cases, but not
necessarily in all cases, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", "will" or "will
be taken", "occur" or "be achieved". In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances contain forward-looking
information. Statements containing forward-looking
information are not historical facts but instead represent
management's expectations, estimates and projections regarding
future events. In particular, this release contains forward-looking
information relating to the anticipated filing of the Q3 Filings,
the continued application of the MCTO, Akumin's intentions to
continue to satisfy the provisions of the alternative information
guidelines under NP 12-203 and Akumin's ceasing to qualify as a
foreign private issuer.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by Akumin as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of our management's discussion and analysis
for the quarter ended June 30, 2021
dated November 15, 2021, which is
available at www.sedar.com and www.sec.gov. These factors are not
intended to represent a complete list of the factors that could
affect Akumin; however, these factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking
statements contained in this press release are made as of the date
of this press release, and Akumin expressly disclaims any
obligation to update or alter statements containing any
forward-looking information, or the factors or assumptions
underlying them, whether as a result of new information, future
events or otherwise, except as required by law.
Selected Consolidated Financial Information
|
|
(Restated)
|
(in
thousands)
|
Three-month
period
ended
Jun 30, 2021
|
Three-month
period
ended
Jun 30, 2020
|
Service fees – net of
allowances and discounts
|
68,243
|
45,821
|
Other
revenue
|
1,253
|
1,544
|
Revenue
|
69,496
|
47,365
|
|
|
|
Employee
compensation
|
23,792
|
15,881
|
Reading
fees
|
10,860
|
7,423
|
Rent and
utilities
|
7,662
|
8,309
|
Third party services
and professional fees
|
8,492
|
6,818
|
Administrative
|
4,095
|
2,494
|
Medical supplies and
other expenses
|
2,867
|
2,282
|
Depreciation and
amortization
|
4,584
|
4,368
|
Stock-based
compensation
|
785
|
566
|
Operational financial
instruments revaluation and other (gains) losses
|
256
|
(1,785)
|
Interest
expense
|
8,920
|
8,014
|
Settlement costs
(recoveries)
|
(318)
|
524
|
Acquisition related
costs
|
4,350
|
81
|
Other financial
instruments revaluation and other (gains) losses
|
-
|
(96)
|
Income (loss)
before income taxes
|
(6,849)
|
(7,514)
|
Income tax provision
(benefit)
|
6
|
(17)
|
Non-controlling
interests
|
502
|
440
|
Net income (loss)
attributable to shareholders of Akumin
|
(7,357)
|
(7,937)
|
|
|
(Restated)
|
Adjusted
EBITDA
(in
thousands)
|
Three-month
period
ended
Jun 30, 2021
|
Three-month
period
ended
Jun 30, 2020
|
Revenue
|
69,496
|
47,365
|
Less:
|
|
|
Employee
compensation
|
23,792
|
15,881
|
Reading
fees
|
10,860
|
7,423
|
Rent and
utilities
|
7,662
|
8,309
|
Third party services
and professional fees
|
8,492
|
6,818
|
Administrative
|
4,095
|
2,494
|
Medical supplies and
other expenses
|
2,867
|
2,282
|
Deferred rent
(expense) credit
|
(459)
|
(1,918)
|
Sub-total
|
57,309
|
41,289
|
Non-controlling
interests
|
502
|
440
|
Adjusted
EBITDA
|
11,685
|
5,636
|
Adjusted EBITDA
Margin
|
17%
|
12%
|
|
|
(Restated)
|
(in
thousands)
|
Six-month
period
ended
Jun 30, 2021
|
Six-month
period
ended
Jun 30, 2020
|
Service fees – net of
allowances and discounts
|
131,709
|
113,366
|
Other
revenue
|
1,750
|
2,169
|
Revenue
|
133,459
|
115,535
|
|
|
|
Employee
compensation
|
46,909
|
40,699
|
Reading
fees
|
20,844
|
18,346
|
Rent and
utilities
|
15,346
|
15,818
|
Third party services
and professional fees
|
16,140
|
15,221
|
Administrative
|
7,662
|
6,249
|
Medical supplies and
other expenses
|
6,008
|
5,209
|
Depreciation and
amortization
|
9,073
|
8,643
|
Stock-based
compensation
|
1,212
|
1,158
|
Operational financial
instruments revaluation and other (gains) losses
|
346
|
(8,113)
|
Interest
expense
|
17,288
|
15,477
|
Settlement costs
(recoveries)
|
(342)
|
880
|
Acquisition related
costs
|
5,628
|
300
|
Other financial
instruments revaluation and other (gains) losses
|
(3,366)
|
4,475
|
Income (loss)
before income taxes
|
(9,289)
|
(8,827)
|
Income tax provision
(benefit)
|
71
|
972
|
Non-controlling
interests
|
871
|
1,041
|
Net income (loss)
attributable to shareholders of Akumin
|
(10,231)
|
(10,840)
|
|
|
(Restated)
|
Adjusted
EBITDA
(in
thousands)
|
Six-month
period
ended
Jun 30, 2021
|
Six-month
period
ended
Jun 30, 2020
|
Revenue
|
133,459
|
115,535
|
Less:
|
|
|
Employee
compensation
|
46,909
|
40,699
|
Reading
fees
|
20,844
|
18,346
|
Rent and
utilities
|
15,346
|
15,818
|
Third party services
and professional fees
|
16,140
|
15,221
|
Administrative
|
7,662
|
6,249
|
Medical supplies and
other expenses
|
6,008
|
5,209
|
Deferred rent
(expense) credit
|
(904)
|
(2,593)
|
Sub-total
|
112,005
|
98,949
|
Non-controlling
interests
|
871
|
1,041
|
Adjusted
EBITDA
|
20,583
|
15,545
|
Adjusted EBITDA
Margin
|
15%
|
13%
|
Reconciliation of Non-GAAP Measures
|
|
(Restated)
|
|
(Restated)
|
(in
thousands)
|
Three-month
period
ended
Jun 30, 2021
|
Three-month
period
ended
Jun 30, 2020
|
Six-month
period
ended
Jun 30, 2021
|
Six-month
period
ended
Jun 30, 2020
|
Net income (loss)
attributable
to shareholders of Akumin
|
(7,357)
|
(7,937)
|
(10,231)
|
(10,840)
|
Income tax provision
(benefit)
|
6
|
(17)
|
71
|
972
|
Depreciation and
amortization
|
4,584
|
4,368
|
9,073
|
8,643
|
Interest
expense
|
8,920
|
8,014
|
17,288
|
15,477
|
EBITDA
|
6,153
|
4,428
|
16,201
|
14,252
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
785
|
566
|
1,212
|
1,158
|
Settlement costs
(recoveries)
|
(318)
|
524
|
(342)
|
880
|
Acquisition-related
costs
|
4,350
|
81
|
5,628
|
300
|
Operational financial
instrument
revaluation and other (gains)
losses
|
256
|
(1,785)
|
346
|
(8,113)
|
Other financial
instruments
revaluation and other (gains)
losses
|
-
|
(96)
|
(3,366)
|
4,475
|
Deferred rent expense
(credit)(1)
|
459
|
1,918
|
904
|
2,593
|
Adjusted
EBITDA
|
11,685
|
5,636
|
20,583
|
15,545
|
Revenue
|
69,496
|
47,365
|
133,459
|
115,535
|
Adjusted EBITDA
Margin
|
17%
|
12%
|
15%
|
13%
|
|
|
|
|
|
Adjusted
EBITDA
|
11,685
|
5,636
|
20,583
|
15,545
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
4,584
|
4,368
|
9,073
|
8,643
|
Interest
expense
|
8,920
|
8,014
|
17,288
|
15,477
|
Sub-total
|
(1,819)
|
(6,746)
|
(5,778)
|
(8,575)
|
Effective tax
rate(2)
|
23.9%
|
24.1%
|
23.9%
|
24.1%
|
Tax effect
|
(434)
|
(1,626)
|
(1,378)
|
(2,067)
|
Adjusted net
income (loss)
attributable to shareholders of
Akumin
|
(1,385)
|
(5,120)
|
(4,400)
|
(6,508)
|
(1)
|
Based on note 9 of
the Corporation's Q2 2021 Financial Statements; Deferred rent
expense (credit) is defined as operating lease cost less operating
cash flows from operating leases.
|
(2)
|
Akumin's estimated
effective tax rate is a blend of U.S. federal and state statutory
tax rates for the period.
|
SOURCE Akumin Inc.