- WELL achieved record quarterly revenues of $140.3 million in Q2-2022 representing a 127%
year-over-year (YoY) increase compared to Q2-2021, driven by
accelerating organic growth.
- WELL achieved record Adjusted EBITDA(2) of
$26.4 million in Q2-2022, compared to
Adjusted EBITDA(2) of $11.9
million for Q2-2021.
- WELL reported Adjusted Net Income(3) of $17.2 million in Q2-2022, compared to Adjusted
Net Loss(3) of $1.2
million in Q2-2021.
- WELL delivered 833,819 total omni-channel patient visits in
Q2-2022, representing a YoY increase of 49%. When combined with our
diagnostic and asynchronous visits, the total number of patient
interactions were 1,166,097 in the quarter, representing an annual
run-rate of 4.66 million patient interactions.
- WELL is increasing its guidance for 2022 annual revenue to
exceed $550 million from the previous
guidance for annual revenue to exceed $525
million. WELL also expects to generate approximately
$100 million of Adjusted
EBITDA(2) and the Company expects to be profitable for
the full year of 2022, on an Adjusted Net
Income(3) basis.
VANCOUVER, BC , Aug. 11,
2022 /CNW/ - WELL Health Technologies Corp. (TSX:
WELL) (OTCQX: WHTCF) (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
results for the fiscal second quarter ended June 30, 2022.
Hamed Shahbazi, Chairman and CEO
of WELL commented, "Our diligent focus on providing care and
support for the care providers themselves is working as I believe
our strong financial performance is a by-product of delivering real
value to healthcare practitioners in both the US and Canada.
We had a great quarter achieving 'best ever' results on both the
top and bottom line without even being in our seasonally strongest
quarter. These exemplary results were once again driven by an
acceleration in our organic growth while maintaining robust
operating margins. During the second quarter we achieved over 20%
YoY organic growth driven by strong operating performances across
all our lines of business including both online and in-person care
channels. WELL also achieved record patient visits in the quarter
with over 1.16 million combined omni-channel, diagnostic and
asynchronous patient interactions – demonstrating our continued
leadership position as the preeminent end-to-end healthcare company
in Canada, while our US businesses
continue to exhibit industry leading growth metrics. WELL's
US-based virtual patient services businesses, Circle Medical and
Wisp, achieved profitable results and continued growth in revenues
with a combined annual revenue run-rate exceeding $115 million in the month of June. Our outlook
for the second half of the year remains very positive, hence we are
able to confidently increase our annual guidance for annual revenue
to exceed $550 million in 2022."
Eva Fong, CFO of WELL commented,
"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. I am also pleased to report that WELL
is a profitable business that generated $15.4 million free cash flow attributable to
shareholders(4) in Q2 which can be used to fund the
Company's future organic and in-organic growth."
Second Quarter 2022 Financial
Highlights:
- WELL achieved record quarterly revenue of $140.3 million in Q2-2022, compared to revenue of
$61.8 million generated during
Q2-2021, an increase of 127% driven by acquisitions during the past
year and organic growth.
- Omni-channel Patient Services revenue increased 88% to
$92.8 million in Q2-2022, compared to
$49.3 million in Q2-2021.
- Virtual Services revenues increased 281% to $47.5 million in Q2-2022, compared to Virtual
Services revenue of $12.5 million in
Q2-2021.
- WELL achieved record Adjusted Gross Profit(1) of
$75.5 million in Q2-2022, compared to
Adjusted Gross Profit(1) of $30.2
million in Q2-2021, representing an increase of 150%.
- WELL achieved Adjusted Gross Margin(1) percentage of
53.8% during Q2-2022 compared to Adjusted Gross
Margin(1) percentage of 48.9% in Q2-2021. Adjusted
EBITDA(2) was a record $26.4
million for Q2-2022, compared to Adjusted
EBITDA(2) of $11.9 million
in Q2-2021. Adjusted EBITDA(2) was positively
impacted in the quarter by healthy EBITDA margins in the Company's
Omni-channel Patient Services and virtual services businesses.
- Adjusted Net Income(3) was $17.2 million, or $0.08 per share in Q2-2022, compared to Adjusted
Net Loss(3) of $1.2
million, or $0.01 loss per
share in Q2-2021.
Second quarter 2022 Patient Visit
Metrics:
Total omni channel patient visits in Q2-2022 was 833,819, a 109%
increase as compared to Q2-2021. In addition, MyHealth
conducted 179,880 diagnostic visits in Q2-2022, while Wisp
completed 152,398 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 1,166,097 patient interactions in Q2-2022,
representing an annual run-rate of 4.66 million patient
interactions.
Second quarter 2022 Business
Highlights:
- On May 18, 2022, the Company
began trading on the OTCQX Market, an important step towards
strengthening and broadening the Company's American investor
base.
- On May 19, 2022, the Company
completed a bought deal public offering of 9,327,765 common shares,
including 1,216,665 common shares issued pursuant to the
over-allotment option, at a price of $3.70 per share, for gross proceeds of
approximately $34.5 million.
This financing was led by one of the largest sovereign wealth
funds in the world.
- On June 17, 2022, the Company
announced the release of its inaugural Environmental, Social, and
Governance (ESG) Report, highlighting the company's ESG practices
and performance. The report covers the year ended December 31, 2021, and details on WELL's ongoing
commitment to empowering practitioners and positively impacting
health outcomes while highlighting the company's commitment to
improve and enhance its practices around environmentalism, social
awareness, and governance. For more information, please visit
esg.well.company.
- On June 29, 2022, the Company
expanded its $200 million senior
secured credit facilities led by Royal Bank of Canada ("RBC") and supported by a
syndicate of lenders to encompass the Canadian Clinics Business
Unit and extended it to July 2026,
providing the Company with additional access to credit to help grow
WELL's fleet of outpatient clinic locations.
Events Subsequent to June 30, 2022:
- On July 17, 2022, the Company
announced the formation of a new business unit WELL Health Canadian
Clinics to consolidate its Canadian outpatient clinic businesses
into a highly integrated national 'bricks and clicks' clinic
platform reflecting 'hybrid' care. The new business unit will
include WELL's Primary Care, Allied Health, and MyHealth
Specialized Care businesses and supports almost 1,300 healthcare
practitioners.
- On August 1, 2022, the Company
completed the acquisition of its previously announced asset
purchase agreement to acquire the assets of INLIV Inc.
("INLIV"). INLIV is a healthcare provider located in
Calgary, Alberta, specializing in
consumer preventative health, corporate and executive health,
primary care, cosmetics, fitness, and integrated health
services. For the 12 months ended April 30, 2022, INLIV had revenues of
approximately $7.3 million with
double digit Adjusted EBITDA(1) margins.
INLIV has over 1,000 customers and 85%+ of its revenues are
attributable to recurring membership fees.
- On August 5, 2022, the Company
announced the addition of Sybil Lau
to WELL's Board of Directors. Sybil is also on the Board of
Directors of the Dalio Family Office in Singapore and a Chinese hedge fund.
Outlook:
WELL's outlook for 2022 remains strong and resilient. As a
result of Company's strong organic growth profile, WELL is
increasing its guidance for 2022 annual revenue to exceed
$550 million, compared to the
previous guidance for annual revenue exceeding $525 million. Furthermore, WELL now expects
Adjusted EBITDA(2) of 'approximately $100 million' in
2022, compared to previous guidance of 'approaching $100 million'
in fiscal 2022. This is the third consecutive quarter where
WELL has materially improved on its revenue guidance.
WELL's performance continues to be very positive across all its
business units and for the entire Company as a whole. The cashflows
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.
WELL remains on track to achieve its goals for 2022 to:
|
(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 the
Company;
|
|
(ii)
|
achieve organic growth
across all of its operating business units;
|
|
(iii)
|
follow a disciplined
capital allocation strategy designed to continue to activate
organic growth as well as acquisitions that are accretive to WELL's
business; and
|
|
(iv)
|
WELL expects to be
profitable for the full year 2022, on an Adjusted Net Income
basis.
|
In Canada, WELL continues to
build on its leadership role as the most consequential network of
non-governmental healthcare assets across the country with
significant operations and interoperability between its outpatient
clinics, diagnostics, EMR, digital apps 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 June 2022
results, the combined businesses generated positive Adjusted
EBITDA(2) with the revenue run-rate exceeding
$115 million. It is expected that the
combined businesses will exceed $130
million on a run-rate basis later this year.
The Company does not see any material influences or challenges
that would impair its ability to deliver on a strong outlook 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.
Conference Call:
WELL will hold a conference call to discuss its 2022 Second
Quarter financial results on Thursday,
August 11, 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: 9947 8397.
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 and
six months ended June 30, 2022.
|
Three
months
ended June
30, 2022
$
'000
|
Restated
Three
months
ended March
31, 2022
$ '000
|
Restated
Three
months
ended June
30, 2021
$ '000
|
|
Six months
ended
June 30,
2022
$ '000
|
Restated
Six months
ended June
30, 2021
$ '000
|
|
Revenue
|
1,40,326
|
1,26,508
|
61,793
|
|
2,66,834
|
87,353
|
|
Cost of sales
(excluding depreciation and amortization)
|
(64,852)
|
(57,120)
|
(31,589)
|
|
(1,21,972)
|
(47,110)
|
|
Adjusted gross
profit(1)
|
75,474
|
69,388
|
30,204
|
|
1,44,862
|
40,243
|
|
Adjusted gross
margin(1)
|
53.8 %
|
54.8 %
|
48.9 %
|
|
54.3 %
|
46.1 %
|
|
Adjusted
EBITDA(2)
|
26,433
|
23,493
|
11,882
|
|
49,926
|
12,409
|
|
Net
loss
|
(792)
|
(2,324)
|
(11,520)
|
|
(3,116)
|
(19,040)
|
|
Adjusted net income
(loss) (3)
|
17,233
|
8,764
|
(1,191)
|
|
25,997
|
(3,595)
|
|
Net (loss) income
per share, basic and diluted (in $)
|
(0.03)
|
(0.04)
|
(0.08)
|
|
(0.07)
|
(0.13)
|
|
Adjusted net income
(loss) per share, basic and diluted (in $)
(3)
|
0.08
|
0.04
|
(0.01)
|
|
0.12
|
(0.02)
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding, basic
and diluted
|
21,61,81,083
|
21,00,14,960
|
18,77,78,646
|
|
21,31,15,055
|
17,55,19,058
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss to Adjusted EBITDA(2)
|
|
|
|
|
|
|
|
Net loss for the
period
|
(792)
|
(2,324)
|
(11,520)
|
|
(3,116)
|
(19,040)
|
|
Depreciation and
amortization
|
13,193
|
12,757
|
9,362
|
|
25,950
|
11,391
|
|
Income tax expense
(recovery)
|
(2,234)
|
2,119
|
1,313
|
|
(115)
|
1,528
|
|
Interest
income
|
(109)
|
(102)
|
(94)
|
|
(211)
|
(414)
|
|
Interest
expense
|
5,254
|
5,154
|
1,351
|
|
10,408
|
1,809
|
|
Rent expense on finance
leases
|
(2,227)
|
(2,152)
|
(856)
|
|
(4,379)
|
(1,666)
|
|
Stock-based
compensation
|
8,527
|
5,139
|
4,309
|
|
13,666
|
7,302
|
|
Foreign exchange (gain)
loss
|
(439)
|
(41)
|
4,842
|
|
(480)
|
4,853
|
|
Time-based earn-out
expense
|
4,515
|
2,521
|
996
|
|
7,036
|
1,887
|
|
Change in fair value of
investments
|
-
|
(602)
|
-
|
|
(602)
|
-
|
|
Share of net loss
(income) of associates
|
90
|
148
|
(8)
|
|
238
|
56
|
|
Transaction,
restructuring, & integration costs expensed
|
655
|
876
|
2,187
|
|
1,531
|
4,703
|
|
Adjusted
EBITDA(2)
|
26,433
|
23,493
|
11,882
|
|
49,926
|
12,409
|
|
|
|
|
|
|
|
|
Attributable to
WELL shareholders
|
19,186
|
16,096
|
7,245
|
|
35,282
|
7,708
|
|
Attributable to
Non-controlling interests
|
7,247
|
7,397
|
4,637
|
|
14,644
|
4,701
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
|
|
|
|
|
|
|
Canada and
others
|
3,956
|
1,484
|
(2,751)
|
|
5,440
|
(1,640)
|
|
US
operations
|
22,477
|
22,009
|
14,633
|
|
44,486
|
14,049
|
|
Adjusted
EBITDA(2) attributable to WELL
shareholders
|
|
|
|
|
|
|
|
Canada and
others
|
3,795
|
1,295
|
(2,939)
|
|
5,090
|
(2,069)
|
|
US
operations
|
15,391
|
14,801
|
10,184
|
|
30,192
|
9,777
|
|
Adjusted
EBITDA(2) attributable to Non-controlling
interests
|
|
|
|
|
|
|
Canada and
others
|
161
|
189
|
188
|
|
350
|
429
|
|
US
operations
|
7,086
|
7,208
|
4,449
|
|
14,294
|
4,272
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss to Adjusted Net Income (Loss) (3)
|
|
|
|
|
|
|
Net loss for the
period
|
(792)
|
(2,324)
|
(11,520)
|
|
(3,116)
|
(19,040)
|
|
Amortization of
intangible assets
|
10,094
|
9,739
|
8,471
|
|
19,833
|
9,657
|
|
Time-based earn-out
expense
|
4,515
|
2,521
|
996
|
|
7,036
|
1,887
|
|
Stock-based
compensation
|
8,527
|
5,139
|
4,309
|
|
13,666
|
7,302
|
|
Change in fair value of
investments
|
-
|
(602)
|
-
|
|
(602)
|
-
|
|
Non-controlling
interest included in net income
|
(5,111)
|
(5,709)
|
(3,447)
|
|
(10,820)
|
(3,401)
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) (3)
|
17,233
|
8,764
|
(1,191)
|
|
25,997
|
(3,595)
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) per share (3)
|
0.08
|
0.04
|
(0.01)
|
|
0.12
|
(0.02)
|
|
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. 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.
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 on OTCQX under the symbol "WHTCF". 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; 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.
Future-Oriented Financial
Information
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
estimated annual run-rate revenue and Adjusted
EBITDA(2), 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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SOURCE WELL Health Technologies Corp.