- WELL reported record quarterly revenues of $126.5 million in Q1-2022 representing a 395%
year-over-year (YoY) increase compared to Q1-2021, catapulting the
Company to over $500 million
annualized revenue run-rate. Revenues reflected accelerating
organic growth to 15% on a YoY basis.
- WELL achieved Adjusted EBITDA(2) of $23.5 million in Q1-2022, compared to Adjusted
EBITDA(2) of $0.5 million
for Q1-2021.
- WELL reported Adjusted Net Income(3) of $8.6 million in Q1-2022, compared to Adjusted Net
Loss(3) of $2.4 million in
Q1-2021.
- WELL delivered 772,093 total omni-channel patient visits in
Q1-2022, representing a YoY increase of 62%. When combined with our
diagnostic and asynchronous visits, the total number of patient
interactions were 1,064,987 in the quarter, representing an annual
run-rate of 4.26 million patient interactions.
- WELL is increasing its guidance for 2022 annual revenue to
exceed $525 million from the previous
guidance of over $500 million. WELL
expects to generate Adjusted EBITDA approaching $100 million and the Company expects to be
profitable for the full year of 2022, on an Adjusted Net
Income(3) basis.
VANCOUVER, BC, May 11, 2022
/CNW/ - WELL Health Technologies Corp. (TSX: WELL) (the
"Company" or "WELL"), a digital healthcare company
focused on positively impacting health outcomes by leveraging
technology to empower healthcare practitioners and their patients
globally, today announced its audited consolidated annual financial
results and results for the fiscal first quarter ended March 31, 2022.
Hamed Shahbazi, Chairman and CEO
of WELL commented, "First quarter 2022 was an exceptional quarter
which exemplified our organic growth potential. We are very pleased
with our Q1 results in which we surpassed half a billion in
annualized run-rate revenue. We managed to achieve
approximately 15% YoY organic growth in the first quarter which
demonstrates a 50% acceleration from our previous quarters' organic
growth rate; all this despite the effects of seasonality that
normally exists in the first quarter in our US based specialist
business. We witnessed strength across all segments of our business
in Q1 including both primary and specialized care in both online
and in-person channels. Our impressive results were driven by
strong patient visits in the quarter. During Q1-2022 WELL delivered
more than one million combined omni-channel, diagnostic and
asynchronous patient interactions. We've added significant scale to
our business and increased our leadership position as the
preeminent end-to-end healthcare company in Canada, while our US businesses continue to
flourish in their respective sectors. Also, WELL is a profitable
business that generated $11.8 million
free cash flow attributable to shareholders(4) in Q1
which is used to fund the Company's future organic and in-organic
growth."
Mr. Shahbazi added, "Our outlook for the remainder of 2022
remains very positive. Despite the current geo-political,
inflationary, and turbulent economic environment, the Company does
not see any material influences or challenges that would impair its
ability to deliver strong results in 2022. 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."
First Quarter 2022 Financial Highlights:
- WELL achieved record quarterly revenue of $126.5 million in Q1-2022, compared to revenue of
$25.6 million generated during
Q1-2021, an increase of 395% driven by acquisitions during the past
year and organic growth.
- Omni-channel Patient Services revenue increased 657% to
$88.4 million in Q1-2022, compared to
$11.7 million in Q1-2021.
- Virtual Services revenues increased 174% to $38.1 million in Q1-2022, compared to Virtual
Services revenue of $13.9 million in
Q1-2021.
- WELL achieved record Adjusted Gross Profit(1) of
$69.4 million in Q1-2022, compared to
Adjusted Gross Profit(1) of $10.0
million in Q1-2021, representing an increase of 591%.
- WELL achieved Adjusted Gross Margin(1) percentage of
54.8% during Q1-2022 compared to Adjusted Gross
Margin(1) percentage of 39.3% in Q1-2021. The increase
in Adjusted Gross Margin percentage is driven by the addition of
higher margin CRH and MyHealth acquisitions as well as an increase
in Virtual Services revenue.
- Adjusted EBITDA(2) was $23.5
million for Q1-2022, compared to Adjusted
EBITDA(2) of $0.5 million
in Q1-2021. Adjusted EBITDA(2) was positively impacted
in the quarter by healthy EBITDA margins in the Company's
Omni-channel Patient Services businesses.
- Adjusted Net Income(3) was $8.6 million, or $0.04 per share, in Q1-2022, compared to Adjusted
Net Loss(3) of $2.4
million, or $0.01 loss per
share in Q1-2021.
First quarter 2022 Patient Visit Metrics:
Total omni channel patient visits in Q1-2022 increased by 62% to
772,093 compared to Q1-2021 and reflected a 10% increase as
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 visits, 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.
First quarter 2022 Business Highlights:
- On March 7, 2022, the Company
entered into an asset purchase agreement to acquire a 100% interest
in Greater Connecticut Anesthesia Associates ("GCAA"), a
gastroenterology anesthesia services provider in Connecticut, USA. The purchase consideration,
to be paid via cash and holdback liability, for the acquisition of
the Company's 100% interest was US$12.5
million.
- During the first quarter WELL announced and exceeded its goal
of donating $100,000 towards relief
efforts to support Ukraine. The
total amount donated included donations from WELL corporate and the
employees at WELL. The donations will be made to UNICEF Canada and
will contribute towards supporting Ukrainian children who have been
harmed or may be in immediate danger.
Events Subsequent to March 31,
2022:
- On April 26, 2022, the Company
filed its Notice of Intention to Make a Normal Course Issuer Bid
("NCIB") with the Toronto Stock Exchange ("TSX"). The NCIB remains
subject to approval by the TSX and would be a renewal of its
current NCIB expiring May 11, 2022.
Since March 31, 2022, WELL purchased
and subsequently cancelled 50,000 Shares, at an average price of
$4.85 on the TSX pursuant to its
expiring NCIB.
Outlook:
WELL's outlook for 2022 remains strong and resilient. To
date, WELL's performance in Q2 continues to be very positive across
all its business units and for the entire Company as a whole.
The 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, share
repurchases, or to accelerate organic growth.
As a result of WELL's healthy organic growth, the Company is
increasing its guidance for 2022 annual revenue to exceed
$525 million, from the previous
guidance of over $500 million in
annual revenue. Furthermore, WELL expects to generate
Adjusted EBITDA approaching $100
million in 2022 and the Company expects to be
profitable for the full year 2022, on an Adjusted Net Income
basis.
In Canada, WELL is quickly
expanding on what it has built - the most consequential network of
non-governmental healthcare assets across the country with
significant operations and interoperability between its outpatient
clinics, EMR, Diagnostics and Telehealth businesses.
Meanwhile, WELL's strategy in the US is to focus on key
specialty areas such as: Gastroenterology, Women's health, and
Primary care with a focus on specialty niches such as mental
health. 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 results, the combined businesses
generated positive Adjusted EBITDA3 with the
revenue run-rate exceeding $100
million. It is expected that the combined businesses
will exceed $130 million on a
revenue run-rate basis later this year.
WELL is a well-diversified, fast growing digital health and tech
enabled healthcare company delivering on a strong ESG
(Environmental, Social and Governance) program and building
societal value. 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 program. The Company plans on publishing
a report in the coming weeks highlighting WELL's ESG strategy,
reporting initiatives and targeted actions.
Conference Call:
WELL will hold a conference call to discuss its 2022 First
Quarter financial results on Thursday, May
12, 2022, at 1:00 pm ET
(10:00 am PT). Please use the
following dial-in numbers: +1-416-764-8650 (Toronto local and International), 778-383-7413
(Vancouver local), 1-888-664-6383
(Toll-Free), with Conference ID: 57493220.
The conference call will also be simultaneously webcast and can
be accessed at the following audience URL:
https://www.well.company/for-investors/events/
Selected Unaudited Financial Highlights:
Please see SEDAR for complete copies of the Company's
consolidated financial statements and MD&A for the three months
ended March 31, 2022.
|
|
restated
|
restated
|
|
Three
months
ended March
31, 2022
|
Three
months
ended
December
31, 2021
|
Three
months
ended March
31, 2021
|
|
$
'000
|
$ '000
|
$ '000
|
Revenue
|
126,508
|
115,680
|
25,560
|
Cost of sales
(excluding depreciation and amortization)
|
(57,120)
|
(52,197)
|
(15,521)
|
Adjusted gross
profit(1)
|
69,388
|
63,483
|
10,039
|
Adjusted gross
margin(1)
|
54.8%
|
54.9%
|
39.3%
|
Adjusted
EBITDA(2)
|
23,493
|
25,679
|
527
|
Net
(loss)/income
|
(2,310)
|
(4,181)
|
(7,520)
|
Adjusted net income
(loss) (3)
|
8,648
|
9,754
|
(2,404)
|
Net (loss) income
per share, basic and diluted (in $)
|
(0.04)
|
(0.05)
|
(0.05)
|
Adjusted Net
(loss)/income per share, basic and diluted (in $)
(3)
|
0.04
|
0.05
|
(0.01)
|
|
|
|
|
Weighted average number
of common shares outstanding, basic and diluted
|
210,014,960
|
208,101,672
|
163,123,252
|
Weighted average number
of common shares outstanding, diluted
|
187,778,646
|
187,778,646
|
126,181,778
|
|
|
|
|
Reconciliation of
net loss to Adjusted EBITDA(2)
|
|
|
Net (loss)/income
for the period
|
(2,310)
|
(4,181)
|
(7,520)
|
Depreciation and
amortization
|
12,739
|
13,324
|
2,029
|
Income tax expense
(recovery)
|
2,123
|
1,448
|
215
|
Interest
income
|
(102)
|
(69)
|
(320)
|
Interest
expense
|
5,154
|
4,059
|
458
|
Rent expense on finance
leases
|
(2,152)
|
(1,899)
|
(810)
|
Stock-based
compensation
|
5,139
|
4,263
|
2,993
|
Foreign exchange (gain)
loss
|
(41)
|
282
|
11
|
Time-based earn-out
expense
|
2,521
|
1,805
|
891
|
Change in fair value of
investments
|
(602)
|
-
|
-
|
Share of net loss of
associates
|
148
|
56
|
64
|
Revenue precluded from
recognition under IFRS 15
|
-
|
3,110
|
-
|
Transaction,
restructuring, & integration costs expensed
|
876
|
3,481
|
2,516
|
Adjusted
EBITDA(2)
|
23,493
|
25,679
|
527
|
|
|
|
|
Attributable to
WELL shareholders
|
16,096
|
17,811
|
463
|
Attributable to
Non-controlling interests
|
7,397
|
7,868
|
64
|
|
|
|
|
Adjusted
EBITDA(2)
|
|
|
|
Canada and
others
|
1,484
|
1,177
|
1,111
|
US
operations
|
22,009
|
24,502
|
(584)
|
Adjusted
EBITDA(2) attributable to WELL
shareholders
|
|
Canada and
others
|
1,295
|
955
|
870
|
US
operations
|
14,801
|
16,856
|
(407)
|
Adjusted
EBITDA(2) attributable to Non-controlling
interests
|
Canada and
others
|
189
|
222
|
241
|
US
operations
|
7,208
|
7,646
|
(177)
|
|
|
|
|
Reconciliation of
net loss to Adjusted Net Income/(loss) (3)
|
Net (loss)/income
for the period
|
(2,310)
|
(4,181)
|
(7,520)
|
Amortization of
intangible assets
|
9,609
|
9,942
|
1,186
|
Time-based earn-out
expense
|
2,521
|
1,805
|
891
|
Stock-based
compensation
|
5,139
|
4,263
|
2,993
|
Change in fair value of
investments
|
(602)
|
-
|
-
|
Non-controlling
interest included in net income
|
(5,709)
|
(5,185)
|
46
|
Revenue precluded from
recognition under IFRS 15
|
-
|
3,110
|
-
|
|
|
|
|
Adjusted Net
Income/(loss) (3)
|
8,648
|
9,754
|
(2,404)
|
|
|
|
|
Adjusted Net Income
(loss) per share (3)
|
0.04
|
0.05
|
(0.01)
|
|
Notes:
|
(1)
|
Non-GAAP financial
measure and ratio. Adjusted gross profit and adjusted
gross margin do not have any standardized meaning under IFRS
and therefore may not be comparable to similar measures presented
by other issuers. 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 loss determined in accordance with IFRS. The Company does
not present gross profit in the 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.
|
|
|
(2)
|
Non-GAAP financial
measure. Earnings before interest, taxes, depreciation
and amortization ("EBITDA") and Adjusted EBITDA should not
be construed as alternatives to net income/loss determined in
accordance with IFRS. EBITDA and Adjusted EBITDA do not have
any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers. 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, 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. For
the three months ended December 31, 2021, the Company was precluded
from recognizing certain potential patient services revenue under
IFRS 15 - Revenue from contracts with customers. The Company
determined that there was insufficient certainty regarding a
customer's intent to pay $3,110 and therefore did not recognize the
revenue. The Company will recognize these amounts as revenue only
if and when they are ultimately collected. 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.
|
|
|
(3)
|
Non-GAAP financial
measure and ratio. The Company defines Adjusted Net
Income as net income, after excluding the effects of
stock-based compensation expense, amortization of acquired
intangibles, 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. For the three months ended
December 31, 2021, the Company was precluded from recognizing
certain potential patient services revenue under IFRS 15 - Revenue
from contracts with customers. IFRS 15 requires that certain
conditions be met in order to recognize revenue, including that it
is probable that the Company will collect the amount recognized,
which is based upon a customer's ability and intention to pay. The
Company determined that there was insufficient certainty regarding
a customer's intent to pay $3,110 and therefore did not recognize
the revenue. The Company has an agreement setting fixed
reimbursement rates for the provision of anesthesia services for
which collections have not been received as a result of what the
Company believes to be an administrative issue. Adjusted Net
Income Per Share is Adjusted Net Income dividend by weighted
average number of shares outstanding. The Company believes that
these non-GAAP financial measure and ratio 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 my management in
decision making. More specifically, WELL believes Adjusted Net
Income is a financial metric that tracks the earning power of the
business that is available to WELL shareholders. Adjusted Net
income and Adjusted Net income Per Share are not recognized measure
and ratio for financial statement presentation under IFRS and do
not have a standardized meaning. As such, these measures may not be
comparable to similar measures or ratios presented by other
companies. Adjusted Net Income and Adjusted Net Income Per Share
should be considered a supplement to, and not as a substitute for,
or superior to, the corresponding measures calculated in accordance
with IFRS.
|
|
|
(4)
|
Non-GAAP financial
measure and ratio. The Company defines Free Cash Flow
Attributable to Shareholders as Adjusted EBITDA Attributable to
Shareholders, less cash interest, less cash taxes and less capital
expenditures.
|
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is a practitioner focused digital 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 Statements
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; capital allocation plans in
the form of more acquisitions or share repurchases; 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.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release.
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