Akumin Inc. Announces Second Quarter Fiscal 2018 Financial Results

TORONTO, Aug. 13, 2018 /CNW/ - Akumin Inc. (TSX: AKU.U) ("Akumin" or the "Corporation") announced today its financial results for the quarter ended June 30, 2018 ("Q2 Fiscal 2018").  

Summary Consolidated Financial Results (in thousands, except for per share amounts)

	3-month period ended Jun. 30, 2018	3-month period ended Jun. 30, 2017	6-month period ended Jun. 30, 2018	6-month period ended Jun. 30, 2017
Revenue	36,774	17,151	70,200	31,474
EBITDA ^(1)	5,186	2,549	9,890	3,009
Adjusted EBITDA ^(1)	8,260	3,048	15,068	4,421
Net Income (loss) attributable to common shareholders	1,436	514	2,596	(752)
Basic and diluted earnings (loss) per share	0.02	0.02	0.05	(0.03)

⁽¹⁾ See "Non-IFRS Measures" below.

Please note that the Corporation's condensed interim consolidated financial statements for Q2 Fiscal 2018 and related management's discussion and analysis are available under Akumin's profile on SEDAR (www.sedar.com).

Commenting on the Q2 Fiscal 2018 financial results, Riadh Zine, President and Chief Executive Officer of the Corporation, said,

"June quarter 2018 represents another fiscal quarter of solid financial performance, with an adjusted EBITDA of $8.3 million. During Q2 Fiscal 2018, we continued to execute on our growth strategy, including a $35 million equity financing, acquisition of four centers in the Tampa, Florida area effective May 11, 2018, and the purchase of the outstanding non-controlling interests in seven of our existing Texas-based diagnostic Imaging Centers effective May 24, 2018. 

"Beginning in Fiscal 2018, the Company commenced the reporting of the volume of procedures performed in its diagnostic imaging centers based on relative-value units, or RVUs.  RVUs are a standardized measure of value used in the U.S. Medicare reimbursement formula for physician services.  In Q2 Fiscal 2018, Akumin's volume was approximately 756,000 RVUs, compared to 666,000 RVUs in Q1 Fiscal 2018.

"On August 1, 2018, we announced a potential acquisition in Florida, expected to add approximately $27.5 million in annual revenue.  The potential acquisition is subject to customary conditions as well as a financing condition – we look forward to closing the acquisition and continuing our growth trajectory." At the end of Q2 Fiscal 2018, the Corporation had a total of 78 diagnostic imaging facilities throughout the United States, compared to 74 as at December 31, 2017.

Unless otherwise indicated, all amounts are expressed in U.S. dollars. Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures. See "Non-IFRS Measures" and "Selected Consolidated Financial Information" of this press release for further details.

About Akumin

Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of 78 owned and/or operated imaging centers located in Florida, Pennsylvania, Delaware, Texas, Illinois and Kansas. By combining our clinical expertise with the latest advances in technology and information systems, our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under the International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these non-IFRS measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these non-IFRS measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS financial measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin". These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our Management's Discussion and Analysis dated August 10, 2018 available at www.sedar.com. 

We define such non-IFRS measures as follows:

"EBITDA" means net income (loss) attributable to shareholders of the Corporation before interest expense (net), income tax expense (recovery) and depreciation and amortization.

"Adjusted EBITDA" means EBITDA as further adjusted for stock-based compensation, impairment of property and equipment, provisions for certain credit losses, gains (losses) in the period, settlement costs, provisions and public offering and acquisition-related costs.

"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the total revenue in the period.

Forward-Looking Information

Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of our Annual Information Form and Management's Discussion and Analysis, each dated March 29, 2018 available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

< Financial tables follow. >

Selected Consolidated Financial Information

(in thousands)	Three-month period  ended Jun 30, 2018	Three-month period ended Jun 30, 2017
Service fees – net of allowances and discounts	36,064	16,817
Other Revenue	710	334
Total revenue	36,774	17,151
Employee compensation	12,309	6,160
Reading fees	4,995	2,517
Rent and utilities	3,710	2,456
Third party services and professional fees	2,786	1,150
Administrative	2,597	833
Medical supplies and other expenses	1,418	987
Depreciation and amortization	2,164	1,079
Stock-based compensation	1,424	231
Interest expense	1,379	949
Impairment of property and equipment	451	-
Settlement costs	76	9
Acquisition related costs	486	129
Public offering costs	709	-
Financial instruments revaluation, unrealized foreign exchange loss, and other (gains) losses	(72)	130
Income before income taxes	2,342	521
Income tax provision	207	7
Non-controlling interests	699	-
Net income and comprehensive income for period attributable to shareholders of Akumin	1,436	514

                                 

Adjusted EBITDA   (in thousands)	Three-month period ended Jun 30, 2018	Three-month period ended Jun 30, 2017
Service fees – net of allowances and discounts	36,064	16,817
Other Revenue	710	334
Total revenue	36,774	17,151
Employee compensation	12,309	6,160
Reading fees	4,995	2,517
Rent and utilities	3,710	2,456
Third party services and professional fees	2,786	1,150
Administrative	2,597	833
Medical supplies and other expenses	1,418	987
Sub-total	27,815	14,103
Non-controlling interests	699	-
Adjusted EBITDA	8,260	3,048

(in thousands)	Six-month period ended Jun 30, 2018	Six-month period ended Jun 30, 2017
Service fees – net of allowances and discounts	68,927	30,650
Other Revenue	1,273	824
Total revenue	70,200	31,474
Employee compensation	23,654	11,910
Reading fees	9,653	4,750
Rent and utilities	7,169	4,670
Third party services and professional fees	5,703	2,230
Administrative	4,582	1,551
Medical supplies and other expenses	2,720	1,942
Depreciation and amortization	4,272	1,941
Stock-based compensation	3,041	461
Interest expense	2,719	1,810
Impairment of property and equipment	638	-
Settlement costs	129	9
Provisions	-	730
Acquisition related costs	663	130
Public offering costs	814	-
Financial instruments revaluation, unrealized foreign exchange loss, and other (gains) losses	(107)	82
Income (loss) before income taxes	4,550	(742)
Income tax provision	303	10
Non-controlling interests	1,651	-
Net income (loss) and comprehensive income (loss) for period attributable to shareholders of Akumin	2,596	(752)

Adjusted EBITDA   (in thousands)	Six-month period ended Jun 30, 2018	Six-month period ended Jun 30, 2017
Service fees – net of allowances and discounts	68,927	30,650
Other Revenue	1,273	824
Total revenue	70,200	31,474
Employee compensation	23,654	11,910
Reading fees	9,653	4,750
Rent and utilities	7,169	4,670
Third party services and professional fees	5,703	2,230
Administrative	4,582	1,551
Medical supplies and other expenses	2,720	1,942
Sub-total	53,481	27,053
Non-controlling interests	1,651	-
Adjusted EBITDA	15,068	4,421

SOURCE Akumin Inc.

Riadh Zine, President and Chief Executive Officer, 416-613-1391