TORONTO, May 15, 2012 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Corporation") (TSX: DR), today reported its financial results for the three-month period ended March 31, 2012. All amounts are expressed in U.S. dollars unless indicated otherwise.
First Quarter 2012 Highlights
- Revenue of $60.0 million, compared with $51.7 million in Q1 2011
- Income from operations of $23.7 million, compared with $18.2 million in Q1 2011
- Operating margin of 39.4%, compared with 35.1% in Q1 2011
- Cash available for distribution1 of Cdn$9.8 million, up from Cdn$8.0 million in Q1 2011
- Payout ratio of 79.0%, compared with 98.2% in Q1 2011
"A number of factors combined during the first quarter of 2012 to produce not only record revenues and income from operations but also strong year-over-year comparisons," said Dr. Donald Schellpfeffer, CEO of Medical Facilities. "An increased number of cases at BHSH and a favourable shift in case mix at SFSH were primarily responsible for the improved performance. Also, the additions of surgeons to our medical staffs have had, and will continue to have, a positive impact on case counts and revenues; however, year-over-year revenue and income from operations will fluctuate by quarter." Dr. Schellpfeffer also noted that "we continue to look for opportunities such as our recent initiatives for primary and urgent care services."
The Corporation generated cash available for distribution1 ("CAFD") of Cdn$9.8 million, or Cdn$0.348 per common share, and declared dividends of Cdn$7.8 million, or Cdn$0.275 per common share, representing a payout ratio of 79.0% for the quarter. The decline in payout ratio from 98.2% for the same quarter last year was largely attributable to stronger operating performance and increased cash flow generation from the Centers, offset by increases in maintenance capital expenditures and the provision for current income taxes.
Consolidated facility service revenue ("revenue") was $60.0 million, an increase of 16.0% from revenue of $51.7 million for the first quarter of 2011. The increase in revenue resulted from a combination of various factors, including, a favourable shift in case mix, an increase in average revenue per case, and increases in surgical cases and pain management procedures.
Consolidated operating expenses, including salaries and benefits, drugs and supplies, and general and administrative costs ("consolidated expenses") totalled $36.3 million, or 60.6% of revenue, compared with consolidated expenses of $33.5 million, or 64.9% of revenue, a year ago. The $2.8-million increase in consolidated expenses is attributable to a number of factors: an increase in the cost of drugs and supplies at two of the Centers consistent with the changes in case mix, an increase in case volume, higher salaries and benefits expenses related to increased staffing requirements due to higher case volume, transition to full employment of anaesthesiologists at one Center, and higher employee health insurance costs at another Center.
Consolidated income from operations was $23.7 million, or 39.4% of revenue, compared to $18.2 million, or 35.1% of revenue a year ago, an increase of 30.2%.
Total comprehensive income was $12.2 million, or $0.147 per share (basic and fully diluted) compared with a total comprehensive loss of $9.0 million, or a loss of $0.536 per share (basic and fully diluted), for the same quarter last year. The increase in comprehensive income resulted from several factors, including the strong operating performance of the Centers, change in value of the exchangeable interest liability, the decrease in interest expense related to the extinguishment of subordinated notes payable, and foreign exchange gains, partially offset by changes in income taxes.
As at March 31, 2012, the Corporation had consolidated net working capital of $53.6 million, including cash and cash equivalents and short-term and long-term bank deposits, of $37.1 million and patient accounts receivable of $41.2 million, compared with net working capital of $50.2 million, including cash and cash equivalents and short-term and long-term bank deposits of $29.5 million and patient accounts receivable of $41.5 million, as at December 31, 2011. Long-term debt at the Centers' level, including the current portion, was $43.3 million as at March 31, 2012 compared with $44.0 million as at December 31, 2011.
As at March 31, 2012, the Corporation had 28,310,042 common shares outstanding.
Medical Facilities' complete 2012 first quarter financial statements and Management's Discussion & Analysis will be issued and filed on SEDAR on Tuesday, May 15, 2012 and will be available on the same day on Medical Facilities' website at www.medicalfacilitiescorp.ca.
|1 Cash available for distribution is a non-IFRS measure and is not intended to be representative of cash flow or results of operations determined in accordance with IFRS. Accordingly, Medical Facilities provides a reconciliation of cash available for distributions to reported cash flow from operations in the Corporation's MD&A. Investors are cautioned that cash available for distribution, as calculated by Medical Facilities, is unlikely to be comparable to similar measures used by other issuers.|
Notice of Conference Call
Management of Medical Facilities will host a conference call today, Tuesday, May 15, 2012 at 9:00 am (ET) to discuss its 2012 first quarter 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 Tuesday, May 22, 2012 at midnight by calling 416-849-0833 or 1-855-859-2056, reference number 76679750.
To view Medical Facilities Q1 2012 financial statements and notes, please click here: http://files.newswire.ca/476/mfc0515.pdf
About Medical Facilities
Medical Facilities owns controlling interests in four specialty surgical hospitals, located in South Dakota and Oklahoma, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures, 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. 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.
For further information:
Chief Financial Officer
Medical Facilities Corporation
(416) 848-7380 or 1-877-402-7162
(416) 815-0700 or 1-800-385-5451 ext. 242