- WELL expects1 to announce strong financial results
for Q1-2022 with another record performance as revenues are
expected to be greater than $120
million in the quarter.
- Total omni-channel patient visits2 in Q1-2022
increased by 62% compared to Q1-2021 and reflected a 10% increase
when compared to Q4-2021.
- WELL's US focused virtual patient services businesses continue
to grow rapidly, with Circle Medical and Wisp exceeding $100
million in annualized revenue run-rate on a combined basis in
March 2022, reflecting over 150% YoY
growth and delivering positive Adjusted EBITDA3.
- The Ontario Medical Association ("OMA") recently ratified a new
physician agreement that increases rates for a variety of
procedures and diagnostics benefitting WELL's MyHealth
business. The new agreement also supports a multi-channel
service delivery model inclusive of integrated virtual care tools
as well as in-person interactions.
VANCOUVER, BC, April 25,
2022 /CNW/ - WELL Health Technologies Corp. (TSX:
WELL) ("WELL" or the "Company"), a digital health
company focused on positively impacting health outcomes by
leveraging technology to empower healthcare practitioners and their
patients globally, is pleased to announce preliminary results for
Q1-2022 ending March 31, 2022.
WELL expects1 to report strong financial results
underpinned by significant growth in patient visits. The Company is
pleased to report preliminary results for Q1-2022 with revenue
expected to exceed $120 million,
operating Adjusted EBITDA3 exceeding $20 million, and Shareholder Free Cash
Flow4 of approximately $10
million.
WELL achieved a total of 772,093 omni-channel patient
visits2 in Q1-2022, representing a year-over-year
increase of 62% compared to Q1-2021, and 10% increase compared to
Q4-2021. In addition, MyHealth conducted 149,906 diagnostic visits
in Q1-2022, while Wisp completed 142,988 asynchronous patient
consultations. Combining WELL's omni-channel patient
visits2, MyHealth's diagnostic visits and Wisp's
asynchronous patient consultations, WELL achieved a total of
1,064,987 patient interactions in Q1-2022, representing an annual
run-rate of 4.26 million patient interactions.
"We are pleased to report that WELL is on the cusp of delivering
its best ever quarter of revenue performance in Q1 which is
generally a quarter that is adversely affected by seasonality",
said Hamed Shahbazi, Chairman and
CEO of WELL. "Patient visits are a strong leading indicator for
WELL's business. This report confirms that WELL continues to
execute operationally and be favourably positioned to continue to
grow organically and inorganically. We continue to believe
revenue, Adjusted EBITDA3 and Shareholder Free Cash
Flow4 are key metrics for shareholders to watch as we
expect them to continue to rise on a per share basis. We look
forward to reporting our Q1 results and remain very positive on our
business."
Circle Medical and Wisp
Update
WELL's US-based virtual patient services businesses, which
includes Circle Medical and Wisp, continued to demonstrate robust
growth in Q1-2022. Based on March
2022 preliminary results, the combined businesses generated
positive Adjusted EBITDA3 with their revenue run-rate
exceeding $100 million. It is
expected that the combined businesses will exceed $130 million on a run-rate basis later this
year. Circle Medical's YoY growth in Q1-2022 was driven by
patient visits increasing 343%. The number of practitioners working
with Circle Medical in Q1-2022 increased by 206% over the same
period. Similarly, Wisp's growth in Q1-2022 was driven by an
83% YoY increase in asynchronous patient consultations driving
significant incremental e-pharmacy revenue.
Eva Fong, WELL's Chief Financial
Officer commented "These results reflect the strength and
resilience built into WELL's patient services businesses.
They also further demonstrate why healthcare is generally
considered to be a defensive and resilient sector during periods of
market turbulence"
Newly Ratified Physician Services
Agreement in Ontario
WELL is pleased to report that Ontario's doctors have ratified a new
three-year physician services agreement ("Agreement") with
the Ontario Ministry of Health which has resulted in higher rates
on a variety of patient visits which based on current patient visit
volumes are expected to drive an incremental Adjusted
EBITDA3 of $1.7 million
per annum for WELL's MyHealth Subsidiary in addition to other
benefits outside of MyHealth.
The Agreement endorses omni channel strategies, such as delivery
of health services using digital tools including video conferencing
to see and treat patients within the comfort of their homes. The
Agreement also requires the establishment of physician-patient
relationships through in-person interactions. In-person
consultations require a large network of brick-and-mortar
facilities spread across the province. WELL's MyHealth business
unit has 50 locations in Ontario
from Toronto to Sault Ste. Marie.
The Agreement supports reduction of wait times for many
specialty services by giving patients access to more sub-specialist
residents in large urban locations. This reduction in wait times
will contribute to meaningful revenue growth in MyHealth
locations. The Agreement especially benefits patients in more
rural areas, who previously had limited access to specialist
healthcare practitioners. This is consistent with WELL's ESG
goals of improving accessibility to healthcare services across the
country.
As the largest owner operator of outpatient medical clinics in
Ontario and one of the largest
providers of virtual care in the province, WELL remains favourably
positioned to support healthcare practitioners and their patients
with this new agreement.
Footnotes:
|
1.
|
Expectations noted are
based on preliminary results recorded to date. These results
may be subject to change as they are prepared for financial
disclosure.
|
2.
|
Omni-channel patient
visits is defined by all patient visits generated by all sources
and channels. This includes any patient visits delivered by a WELL
healthcare practitioner (inclusive of in-person or virtual) or a
non-WELL practitioner but facilitated by WELL's virtual care
tools. This figure does not include visits for diagnostic
testing consultations or any asynchronous physician
consultations.
|
3.
|
Adjusted EBITDA is a
non-GAAP metric and defined by 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, and (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.
|
4.
|
Shareholder Free Cash
Flow is a non-GAAP metric and defined by Adjusted EBITDA
attributable to shareholders less cash taxes, cash interest and
capital expenditures.
|
WELL HEALTH TECHNOLOGIES
CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL
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. As such,
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;, including but not limited to
Circle Medical and WISP revenues approaching $100
million in annualized revenue run-rate on a combined basis and
to exceed $130 million later in 2022, WELL's plans to
renew its previously approved share buyback program after it has
released its Q1 2022 financial result, and Wisp and Circle
Medical's future revenue run-rate forecasts and the expected
benefits and synergies of completed acquisitions.
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 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 involves 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 those forward-looking and the forward-looking statements
are not guarantees of future performance. WELL's statements
expressed or implied by these forward-looking statements 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 statements. Forward-looking information is
qualified in its 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 EBITDA, 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.