- Company Focused on Core Strengths in Healthcare Services Businesses With High Margins, Strong Cash Flows, Long-Term Potential and Limited Regulatory Risk -
TORONTO, June 25, 2014 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare company, held its 2014 Investor Day yesterday in Toronto at which President and Chief Executive Officer, David Cutler, unveiled the Company's growth strategy and members of the Senior Leadership team provided updates on innovative initiatives aligned to the Company's core healthcare services business segments.
"The Canadian healthcare system is rapidly evolving," said David Cutler, President and Chief Executive Officer, Centric Health Corporation. "Rising healthcare costs and public budgetary pressures, exacerbated by an unprecedented aging of the population, requires innovative solutions from independent providers who can support the public healthcare system in key areas. With an established healthcare services platform focused on addressing the most critical needs in Canadian healthcare - seniors' services, corporate health costs and surgical costs and wait times - Centric Health is positioned to play an integral role to support access to and delivery of the highest quality care."
Mr. Cutler discussed the Company's overriding objective to provide leading patient outcomes through a dedication to quality, client centricity and innovation and technology in three focus areas - Physiotherapy, Rehabilitation and Wellness; Specialty Pharmacy; and Surgical and Medical Centres - as well as its new Corporate Health Plans initiative.
"Over the past several months, we have undertaken an extensive analysis of each of our businesses in the context of Canada's healthcare needs, our core strengths and our best opportunities," continued Mr. Cutler. "Based on this analysis, we have taken major steps to optimize our delivery model, focusing on existing businesses and future opportunities that generate strong cash flow, minimize working capital requirements and limit legislative and funding risk. In doing so, we have significantly strengthened the long-term value proposition of our platform and its ability to drive long-term, sustainable value for our shareholders.
Earlier this week, the Company announced the divestitures of its MEDIchair and Motion Specialties retail operations and DNPI Group, which comprises substantially all of the Company's methadone pharmacy operations, for expected proceeds of $50 million and $20 million, respectively.
In the context of its sharpened focus, Centric Health presented its four strategic priorities going forward:
- Focus on its core strengths;
- Strengthen its balance sheet;
- Position the Company for future growth; and
- Win on quality, innovation and client service.
"In tandem with our renewed business focus, strengthening the balance sheet remains a top priority," said Daniel Gagnon, Chief Financial Officer, Centric Health Corporation. "We have taken meaningful steps over the past 12 or so months to generate additional cash flow and add financial flexibility. In addition to enabling us to act on new growth opportunities consistent with our strategy, our recently announced divestitures of non-core businesses, which will generate a combined $70 million in proceeds, provide additional flexibility in the short term as we begin to realize the results of our strategy to grow EBITDA in our core businesses and reduce debt levels going forward."
Archived Webcast of Centric Health's Investor Day
An archived webcast of Centric Health's 2014 Investor Day is available on the Centric Health web site at http://www.centrichealth.ca/investors/events-and-presentations.
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and surgical centres, specialty pharmacy and wellness and prevention. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca.
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. 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 Centric Health and described in the forward-looking statements contained in this press release. 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 Centric Health will derive there-from.
SOURCE: Centric Health Corporation
For further information:
Chief Financial Officer
416-815-0700 ext. 257