TORONTO, May 19 /CNW/ - Alegro Health Corp. (TSX-V: AGO), a provider of
medical, surgical and disability management services, today announced its
financial results for the first quarter ended March 31, 2009, as well as
subsequent operating highlights to date.
"Our vision of building and sustaining the leading health services
network in Canada is beginning to take shape," said Brenda Rasmussen,
President and Chief Executive Officer of Alegro Health Corp. "Not only did we
see a healthy increase in our revenues and EBITDA, but the acquisition of
Active Health Management Inc. and The Brenda Rusnak Clinics Inc. businesses,
subsequent to quarter end, will be a transformational event for Alegro and
position us as the leader in disability and rehabilitation management services
in Canada. I'm excited not only about the momentum this acquisition is
creating within the organization, but the potential that remains for Alegro's
growth in this and other niches within healthcare services."
Following the quarter end, the Company entered into an agreement to
acquire the business of Active Health Management Inc. and The Brenda Rusnak
Clinics Inc. (collectively, "Active Health"), the first major acquisition
arising out of its 2007 strategic alliance with Global Healthcare Investments
& Solutions, Inc.
The transaction, taking into account both Alegro's year end audited
financial statements, as well as Active Health's audited year ended January
31, 2009 financial statements, on a pro forma basis, approximately triples
Alegro's 2008 revenues of $15.8 million to over $45 million. Based on
historical performance of the acquired businesses, management expects
profitability of the Company will be greatly enhanced and that this
transaction will be accretive to earnings per share in the first year. Further
details on the transaction can be found in the Company's press release dated
May 5, 2009.
First Quarter 2009 Financial and Operating Highlights
- Revenue increased by 14.5% to $4.27 million in Q1 2009 from $3.73
million in Q1 2008
- EBITDA(*) increased by 58.5% to $587,000 in Q1 2009 from $370,993 in
- Earnings per share increased 80% to $0.009 in Q1 2009 from $0.005 in
- As at March 31, 2009, Alegro had a cash position of $3.57 million
(*)See section entitled Non-GAAP measures
Subsequent to Quarter End
- Announced the acquisition of Active Health Management, the first
major venture arising out of its 2007 strategic alliance with Global
Healthcare Investments & Solutions, Inc. The acquisition will be
transformational for Alegro and provides critical mass, earnings and
cash flow needed to further the Company's growth strategies. It is
anticipated that subject to receipt of all approvals and satisfaction
of the conditions to closing, this transaction will be completed
before the end of the second quarter.
Selected Q1 2009 Financial Results
Q1 2009 Q1 2008
Revenue $4,268,763 $3,728,723
Expenses $3,728,618 $3,408,691
Income Before Income Taxes $540,145 $320,032
Basic and Diluted Earnings per Share $0.009 $0.005
Total Assets $9,170,259 $8,973,712
Total revenue for the quarter ended March 31, 2009 increased by 14.5% to
$4.27 million as compared to $3.73 million in Q1 2008. The increase in revenue
is primarily related to continued growth in the Disability & Rehabilitation
Management division, consisting of Work Able and Direct Health, which had 17%
growth in this quarter compared to the prior year's quarter.
Expenses increased by 9.3% for the quarter ended March 31, 2009 to $3.73
million as compared to $3.41 million in Q1 2008. Amortization expenses
amounted to $47,151 for the quarter as compared to $50,961 recorded in Q1
2008. The overall increase is largely attributable to higher expenses within
the Disability & Rehabilitation Management division along with that division's
volume growth. It is important to note that while expenses increased with
volume business growth, the expense to revenue ratio decreased from 91% to
As at March 31, 2009, there were a total of 36,581,762 common shares and
no preferred shares outstanding.
As at March 31, 2009, there were a total of 3,050,000 options outstanding
to purchase an equivalent number of common shares at an average exercise price
of $0.28, expiring at various dates until 2013.
As at March 31, 2009, the Company had cash of $3.57 million as compared
to $4.00 million at December 31, 2008.
For a complete review of financial statements, please visit
The Company defines EBITDA as earnings before interest, taxes,
depreciation, amortization, other expenses, non-controlling interest and
transaction costs on debt financing. EBITDA is not a recognized measure under
Canadian GAAP. Management believes that in addition to net earnings, EBITDA is
a useful supplemental measure, as it provides investors with an indication of
the Company's performance. EBITDA is used by the Company to analyze
performance and compare profitability between periods. Investors should be
cautioned, however, that EBITDA should not be construed as an alternative to
net earnings determined in accordance with GAAP. The Company's method of
calculating EBITDA may differ from other companies and accordingly, EBITDA may
not be comparable to measures used by other companies.
About Alegro Health Corp.
Alegro Health Corp. is a leading healthcare services provider capturing
high value opportunities by providing additional access to select quality
healthcare services. Through its divisions - Disability & Rehabilitation
Management and Surgical/Hospital Services - Alegro is delivering additional
resources to the Canadian public healthcare services and addressing the
growing demand for private and enhanced out-of-pocket healthcare services.
With superior knowledge of the healthcare industry, extensive and trusted
relationships with payers, physicians, and government agencies, Alegro is
pursuing a vertically integrated approach and an aggressive acquisition
strategy to achieve its growth objectives. Alegro is listed on the TSX Venture
Exchange under the symbol AGO. For further information, please visit
This press release contains statements that may constitute
"forward-looking statements" within the meaning of applicable Canadian
securities legislation. These forward-looking statements include, among
others, statements regarding business strategy, plans and other expectations,
beliefs, goals, objectives, information and statements about possible future
events. Specific forward-looking statements contained in this press release
include statements regarding Alegro's proposed acquisition of Active Health,
the completion of the acquisition and the outcome of the acquisition, as well
as statements regarding transaction values, accretion, and ownership levels
resulting from the completion of the proposed acquisition. Readers are
cautioned not to place undue reliance on such forward-looking statements.
Forward-looking statements are based on current expectations, estimates and
assumptions that involve a number of risks, which could cause actual results
to vary and in some instances to differ materially from those anticipated by
Alegro and Active Health and described in the forward-looking statements
contained in this press release. Among the various factors that could cause
results to vary materially from those indicated in the forward-looking
statements include failure to realize anticipated synergies and the result of
the review of the proposed acquisition by regulatory authorities. No assurance
can be given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do so, what benefits
Alegro will derive there from.
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy
of this news release.
For further information:
For further information: Brenda Rasmussen, President and CEO, Alegro
Health, (416) 927-8400 ext. 303, firstname.lastname@example.org; Michael Moore,
Investor Relations, Equicom Group, (416) 815-0700 ext. 241,