Medical Facilities Corporation Reports First Quarter 2017 Financial Results

TORONTO, May 11, 2017 /CNW/ - Medical Facilities Corporation ("Medical Facilities", or the "Company") (TSX: DR), today reported its financial results for the three-month period ended March 31, 2017. All amounts are expressed in U.S. dollars unless indicated otherwise.

First Quarter 2017 Summary

  • Increased revenue by 17.2% to $89.0 million, from $75.9 million in Q1 2016, due to contributions from acquisitions and increases at existing facilities
  • Surgical cases increased by 10.3%, and revenue per case was up due to a higher proportion of complex cases
  • Income from operations of $13.3 million, compared to $14.8 million in Q1 2016, due to higher depreciation and amortization costs of $1.7 million relating to new acquisitions
  • Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
  • Payout ratio1 of 80.9% as compared with 73.2% in Q1 2016

"We are very pleased with the continued growth in case volume and revenue, driven by growth from newly acquired centers as well as organic growth initiatives at existing facilities," said Britt T. Reynolds, President and CEO of Medical Facilities. "Our facilities continue to hold leading positions in their communities by building strong networks and maintaining solid reputations for the highest-quality care and optimum patient outcomes."

_________________________

1 Cash available for distribution and payout ratio are non-IFRS financial measures. While Medical Facilities believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers, and should not be considered as alternatives to comparable measures determined in accordance with IFRS. For further information on these non-IFRS financial measures, including a reconciliation of each of these non-IFRS financial measures to the most directly comparable measure calculated in accordance with IFRS, please refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR at www.sedar.com.



Financial Results

For the three months ended
March 31

(thousands of U.S. dollars, except per share amounts and

where otherwise noted)

2017

% change

2016

Revenue from continuing operations

89,004

17.2%

75,945

Consolidated operating expenses

75,684

23.8%

61,121

Income from operations

13,320

(10.1%)

14,824


Finance costs (net interest expense)

1,586

115.2%

737


Finance costs (changes in value of derivative

instruments and gain/loss on foreign currency)

7,279

(55.1%)

16,220


Income tax expenses (recovery)

(284)

(90.1%)

(2,863)

Consolidated income from continuing operations

4,739

549.2%

730

Income from Discontinued Operations

-

-

29

Attributable to:





Owners of the Corporation

(516)

(91.1%)

(5,786)


Non-controlling interest

5,255

(19.7%)

6,545





Earnings per share





Basic

(0.02)

89.5%

(0.19)


Diluted

(0.02)

89.5%

(0.19)





Cash available for distribution (C$)

10,795

(9.6%)

11,937

Distributions (C$)

8,732

0.0%

8,734





Cash available for distribution per common share (C$)

0.35

(7.9%)

0.38

Distributions per common share (C$)

0.28

0.0%

0.28





Payout ratio

80.9%

770 bps

73.2%

 

As at March 31, 2017, the Company had consolidated net working capital of $71.1 million, including cash and cash equivalents and short-term investments of $60.6 million and accounts receivable of $50.2 million, compared with net working capital of $74.0 million, including cash and cash equivalents and short-term and long-term investments of $67.6 million, and accounts receivable of $61.1 million, as at December 31, 2016. Long-term debt at the Centers' level, including the current portion, was $70.7 million and the corporate credit facility was $47.8 million as at March 31, 2017 compared with $76.9 million of total long-term debt at the Centers' level and the corporate credit facility of $47.8 million as at December 31, 2016.

Medical Facilities' complete first quarter 2017 financial statements and management's discussion and analysis will be issued and filed on SEDAR at www.sedar.com on Thursday, May 11, 2017 and will be available on the same day on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Normal Course Issuer Bid ("NCIB")
The Company repurchases its common shares in the open market. By repurchasing and cancelling its common shares, Medical Facilities reduces the total amount of dividends payable, resulting in cash savings for the Company. The remaining shareholders also benefit from the NCIB as the distributable cash per share increases. During the three months ended March 31, 2017, the Company did not purchase any of its common shares.

As at March 31, 2017, the Company had 31,045,945 common shares outstanding.

Notice of Conference Call
Management of Medical Facilities will host a conference call today, Thursday, May 11, 2017 at 8:30 am ET to discuss its first quarter 2017 financial results. You can join the call by dialing 647.427.7450 or 1.888.231.8191. A taped replay of the conference call will be available until Thursday, March 30, 2017 by calling 416.849.0833 or 1.855.859.2056, reference number 10555985. A live audio webcast of the call will be available at http://bit.ly/2pecZDx.

To view Medical Facilities Q1 2017 financial statements and notes, please click here: http://files.newswire.ca/940/MFC0511.pdf

About Medical Facilities

Medical Facilities owns controlling interests in five specialty surgical hospitals located in Arkansas, Indiana, Oklahoma and South Dakota, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. In addition, Medical Facilities owns controlling interest in a diversified healthcare service company located in Oklahoma City that provides third-party business solutions to healthcare entities such as physician practices, facilities, and insurance companies. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.

Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions.  All forward-looking statements presented herein should be considered in conjunction with such filings.  Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.

SOURCE Medical Facilities Corporation

For further information: Tyler Murphy, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, investors@medicalfc.com; Craig MacPhail, Investor Relations, NATIONAL Equicom, 416.586.1938, cmacphail@national.ca


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