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LIFE CARE IS REGISTERED MAGAZINE IN RNI, NO.GUJGUJ/2015/71283
Copyright © 2015 - 2022 Lifecarenews.in
LIFE CARE IS REGISTERED MAGAZINE IN RNI, NO.GUJGUJ/2015/71283
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TORONTO, Nov. 14, 2022 (GLOBE NEWSWIRE) — MCI Onehealth Technologies Inc. (“MCI” or the “Company”) (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access to and quality of healthcare, today released its financial results for the three- and nine-month periods ended September 30, 2022.
“Despite our soft third quarter, which is typical for the business and is usually followed by significant patient-services gains in the fourth quarter, we have nonetheless made significant gains in key elements of the business, including achieving a record number of physicians in our roster and a strong increase in per patient revenue,” said Dr. Alexander Dobranowski, CEO of MCI. “The increase in per patient revenue is a direct result of the technology and data-driven initiatives we’ve made to optimize patient care pathways by improving access to specialists and the use of data to flag potential gaps in diagnostic and preventative care that still linger from the pandemic backlog. Our successes in using data are attracting additional international customers for our data insights as a service, with our pipeline growing to $6.5 million this quarter and momentum expected to continue into our fourth quarter.”
A summary of MCI’s financial and operational highlights for the quarter are set out below, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on MCI’s SEDAR page at www.sedar.com. Financial measures described as “Adjusted” in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.
Third Quarter 2022 Highlights
Significant financial and operational highlights for MCI during the third quarter of 2022 included:
Outlook
MCI expects to continue to accelerate total company revenue growth through the end of fiscal 2022 and into 2023 as it executes its strategic plan on multiple fronts including:
To support the Company’s growth and its various initiatives, the Company is pursuing additional sources of financing while continuing to implement revenue growth and expense reduction strategies. There can be no assurance that the Company will be able to secure additional financing, or to secure it on terms favourable to the Company, or that its revenue growth and expense reduction strategies will be successful. See “Forward-Looking Statements” below and the “Liquidity and Capital Resources” section of the Company’s management discussion and analysis for the third quarter of 2022 for additional information.
Conference Call Details
MCI will hold a conference call and webcast to discuss progress on its key strategic initiatives and financial results for the third quarter of 2022, on November 14, 2022, at 5:30 pm ET. Please be advised that the process for listening to and participating in MCI’s quarterly conference call has changed. MCI strongly encourages attendees to join by webcast.
For attendees who wish to join by webcast, the event can be accessed at: https://edge.media-server.com/mmc/p/g77sxigc.
Attendees who wish to join by phone must visit the following link and pre-register: https://register.vevent.com/register/BI22415b36e452414588260f7cdbc9a940.
Participants are encouraged to access the call or webcast at least 10 minutes prior to start.
Selected Unaudited Financial Information
(In thousands of dollars, except percentages and per share amounts)
Three months ended | Period over | Nine months ended | Period over | |||||||||||||||||||||
September 30 | period Change | September 30 | period Change | |||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||
($ in thousands except percentages) | ||||||||||||||||||||||||
Revenues | $ | 12,587 | $ | 12,642 | $ | (55 | ) | NM | $ | 39,421 | $ | 33,881 | $ | 5,540 | 16 | |||||||||
Cost of sales | 8,917 | 9,227 | (310 | ) | (3 | ) | 27,572 | 23,820 | 3,752 | 16 | ||||||||||||||
Gross profit | 3,670 | 3,415 | 255 | 7 | 11,849 | 10,061 | 1,788 | 18 | ||||||||||||||||
Research and development
General and administrative |
1,836 | 279 | 1,557 | NM | 5,881 | 970 | 4,911 | NM | ||||||||||||||||
Sales and marketing
General and administrative |
158 | 988 | (830 | ) | (84 | ) | 1,069 | 2,145 | (1,076 | ) | (50 | ) | ||||||||||||
General and administrative | 6,795 | 7,478 | (683 | ) | (9 | ) | 19,839 | 18,207 | 1,632 | 9 | ||||||||||||||
8,789 | 8,745 | 44 | 1 | 26,789 | 21,322 | 5,467 | 26 | |||||||||||||||||
Net finance costs | 331 | 131 | 200 | 153 | 644 | 339 | 305 | 90 | ||||||||||||||||
(Income)/loss on investments | 50 | 9 | 41 | NM | 237 | (3 | ) | 240 | NM | |||||||||||||||
FV changes-contingent consideration | 75 | – | 75 | NM | 233 | – | 233 | NM | ||||||||||||||||
Impairment charges | 200 | – | 200 | NM | 200 | – | 200 | NM | ||||||||||||||||
Gain on sublease | (187 | ) | – | (187 | ) | NM | (190 | ) | – | (190 | ) | NM | ||||||||||||
469 | 140 | 329 | 235 | 1,124 | 336 | 788 | 235 | |||||||||||||||||
Income (loss) before taxes | (5,588 | ) | (5,470 | ) | 118 | 2 | (16,064 | ) | (11,597 | ) | (4,467 | ) | 39 | |||||||||||
Income taxes | 3,512 | (32 | ) | 3,544 | NM | 1,481 | (867 | ) | 2,348 | 271 | ||||||||||||||
Net Income (loss) | (9,100 | ) | (5,438 | ) | (3,662 | ) | 67 | (17,545 | ) | (10,730 | ) | (6,815 | ) | 64 | ||||||||||
Adjusted gross profit (2) | 3,987 | 3,573 | 413 | 12 | 12,324 | 10,325 | 1,999 | 19 | ||||||||||||||||
Adjusted gross margin (2) | 31.7 | % | 28.3 | % | 31.3 | % | 30.5 | % | ||||||||||||||||
Adjusted EBITDA (1) | (2,152 | ) | (1,824 | ) | (328 | ) | 18 | (7,570 | ) | (3,186 | ) | (4,384 | ) | 138 | ||||||||||
Adjusted EBITDA margin (1) | (17.1 | ) | (14.4 | %) | (19.2 | %) | (9.4 | %) | ||||||||||||||||
Weighted average number of | ||||||||||||||||||||||||
Of Share outstanding: Basic and diluted | 50,075,202 | 49,540,229 | 50,075,202 | 47,630,393 | ||||||||||||||||||||
Net income (loss) per share -Basic and diluted | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.35 | ) | $ | (0.23 | ) |
(1), (2) Financial measures described as “Adjusted” in the table above are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies, please see Non-IFRS Financial Measures below for more information.
Selected Statement of Financial Position Data
September 30, 2022 | December 31, 2021 | |||||
$ in thousands | ||||||
Cash | $ | 1,302 | $ | 7,142 | ||
Accounts receivable | 4,559 | 6,328 | ||||
Accounts payable and accrued liabilities | (6,901 | ) | (9,527 | ) | ||
Bank loan | (1,615 | ) | – | |||
Related party loan | (3,224 | ) | – | |||
Lease liabilities | (13,098 | ) | (14,347 | ) | ||
Other liabilities | (130 | ) | (130 | ) | ||
Non-controlling interest redeemable liability | (1,305 | ) | (1,305 | ) | ||
Liability for contingent consideration | (3,355 | ) | (3,122 | ) |
Non-IFRS Financial Measures
The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled “Non-IFRS Financial Measures” in the Company’s management discussion and analysis for the quarter ended September 30, 2022, available on MCI’s SEDAR page at www.sedar.com, for a detailed explanation of the composition of these measures and their uses.
(1) The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three- and nine-month periods ended September 30, 2022, and September 30, 2021:
Three months ended | Nine months ended | |||||||||||
September 30 | September 30 | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ in thousands | ||||||||||||
Total Revenue | $ | 12,587 | $ | 12,642 | $ | 39,421 | $ | 33,881 | ||||
Net income (loss) | (9,100 | ) | (5,438 | ) | (17,545 | ) | (10,730 | ) | ||||
Add back (deduct) | ||||||||||||
Depreciation and amortization | 1,813 | 1,329 | 3,877 | 3,012 | ||||||||
Net finance charges | 331 | 131 | 644 | 339 | ||||||||
Loss/(income) from investments | 50 | 9 | 237 | (3 | ) | |||||||
Expected credit losses | (6 | ) | 310 | 23 | 310 | |||||||
Income taxes expense (recovery) | 3,512 | (32 | ) | 1,481 | (867 | ) | ||||||
Impairment charges | 200 | – | 200 | – | ||||||||
Gain on sublease contracts | (187 | ) | – | (190 | ) | – | ||||||
Share-based payment expense | 1,089 | 1,722 | 3,224 | 4,370 | ||||||||
Lease interest revenue | (13 | ) | (17 | ) | (43 | ) | (41 | ) | ||||
Acquisition related legal expenses | 71 | 145 | 246 | 383 | ||||||||
Fair value changes in contingent consideration | 75 | – | 233 | – | ||||||||
Adjusted EBITDA | $ | (2,152 | ) | $ | (1,824 | ) | $ | (7,570 | ) | $ | (3,186 | ) |
Adjusted EBITDA Margin | (17.1 | %) | (14.4 | %) | (19.2 | %) | (9.4 | %) |
(2) The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to revenue and cost of sales for the three- and nine-month periods ended September 30, 2022, and September 30, 2021:
Three months ended | Period over | Nine months ended | Period over | |||||||||||||||||||
September 30 | period Change | September 30 | period Change | |||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||
($ in thousands except percentages) | ||||||||||||||||||||||
Revenue | $ | 12,587 | $ | 12,642 | $ | (55 | ) | NM | $ | 39,421 | $ | 33,881 | $ | 5,540 | 16 | % | ||||||
Cost of sales | 8,917 | 9,227 | (310 | ) | (3 | %) | 27,572 | 23,820 | 3,752 | 16 | % | |||||||||||
Less: | ||||||||||||||||||||||
Depreciation and amortization | (317 | ) | (158 | ) | (158 | ) | 100 | % | (475 | ) | (264 | ) | (211 | ) | 80 | % | ||||||
8,600 | 9,069 | (468 | ) | (5 | %) | 27,097 | 23,556 | 3,541 | 15 | % | ||||||||||||
Adjusted gross profit | $ | 3,987 | $ | 3,573 | $ | 12,324 | $ | 10,325 | ||||||||||||||
Adjusted gross margin | 31.7 | % | 28.3 | % | 31.3 | % | 30.5 | % |
About MCI
MCI is a healthcare technology company focused on empowering patients and doctors with advanced technologies to increase access, improve quality, and reduce healthcare costs. As part of the healthcare community for over 30 years, MCI operates one of Canada’s leading primary care networks with approximately 280 physicians and specialists, serves more than one million patients annually and had nearly 300,000 telehealth visits last year, including online visits via mciconnect.ca. MCI additionally offers an expanding suite of occupational health service offerings that support a growing list of nearly 600 corporate customers. Led by a proven management team of doctors and experienced executives, MCI remains focused on executing a strategy centered around acquiring technology and health services that complement the company’s current roadmap. For more information, visit mcionehealth.com.
For media enquiries please contact:
Nolan Reeds | nolan@mcionehealth.com | +1 (416) 440-4040 ext. 158
Forward Looking Statements
Certain statements in this press release, constitute “forward-looking information” and “forward looking statements” (collectively, “forward looking statements”) within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements include statements with respect to projected revenues, earnings, growth rates, targets, revenue mix, product plans, use of proceeds, new business ventures, commercial arrangements and potential acquisitions, as well as MCI’s future growth, strategic transformation plan, results of operations, performance and business prospects and opportunities. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “aim”, “strategy”, “targets” or “believes”, “for use in”, “growth”, “expansion”, “to pursue”, “to develop”, “future”, “later”, “on track”, “pipeline”, “to be gained”, “poised”, “continues to”, “facilitate”, “is developing”, “coming online” or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “occur”, “continue” or “be achieved”, and other similar expressions, identify forward-looking statements. Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by MCI as of the date of such statements, are outside of MCI’s control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: MCI’s ability to achieve its growth strategy; the demand for MCI’s products and fluctuations in future revenues; the availability of future business ventures, commercial arrangement and acquisition targets or opportunities and MCI’s ability to consummate them; MCI’s ability to effectively roll out its smart referral system and stand-up its data lake; MCI’s ability to effectively integrate existing and future acquisition targets into its platform; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; trends in customer growth; sufficiency of current working capital to support future operating and working capital requirements; the stability of general economic and market conditions; currency exchange rates and interest rates; equity and debt markets continuing to provide MCI with access to capital; MCI’s ability to continue to operate as a going concern; MCI’s ability to comply with applicable laws and regulations; MCI’s continued compliance with third party intellectual property rights; the anticipated effects of COVID-19; and that the risk factors noted below, collectively, do not have a material impact on MCI’s business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.
Readers are encouraged to review the “Liquidity and Capital Resources” section of the Company’s MD&A, together with Note 2(c)(ix) of the Company’s financial statements, for the third quarter of 2022, which indicate the existence of material uncertainties that cast significant doubt on the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on, among other things, its ability to meet its financing requirements on a continuing basis, to have access to financing and to generate positive operating results. While the Company has been successful in securing financing in the past and believes it will be able to continue to satisfy its financing requirements and ultimately achieve necessary levels of profitability and positive cash flows from operations, raising additional funds and improving operating results are dependent on a number of factors outside the Company’s control and, as such, there can be no assurance that the Company will be able to do so in the future.
Known and unknown risk factors, many of which are beyond the control of MCI, could cause the actual results of MCI to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled “Risk Factors” in MCI’s annual information form dated March 31, 2022, each of which is available under MCI’s SEDAR profile at www.sedar.com. The risk factors are not intended to represent a complete list of the factors that could affect MCI and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. MCI disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.
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