MCI Onehealth Reports Third Quarter 2021 Financial Results

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

   -- Quarterly revenue of $12.6 million, up 29% over the same period last year, 
      driven by higher patient volumes, growth in corporate health customers 
      and two significant business acquisitions in 2021. 
   -- The company continues to make strategic acquisitions and investments, 
      including the $7.1 million acquisition of the Polyclinic Group of 
      Companies ("Polyclinic") and participation in the Series 1 Seed financing 
      round of ORO Health, Inc. ("ORO") in Q3 2021. 
   -- Khure Health Inc. ("Khure") signs its largest contract to date with a 
      global top 10 pharmaceutical manufacturer. 
   -- All clinics once again operating as COVID-19 recovery continues. 
   -- Robust acquisition pipeline with several substantial opportunities under 
      consideration. 
   -- Adjusted EBITDA(1) for the quarter was negative $1.8 million and net 
      losses were $5.4 million. 

TORONTO, Nov. 15, 2021 (GLOBE NEWSWIRE) -- MCI Onehealth Technologies Inc. ("MCI" or the "Company") (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access to and quality of healthcare, today released its financial results for the three- and nine-month periods ended September 30, 2021.

"We are pleased with the momentum we have been able to build as the acquisition and integration of Khure Health and Polyclinic into our platform nears completion and the last of our clinics resume full operations coming out of the COVID-19 restrictions from earlier this year," said Dr. Alexander Dobranowski, CEO of MCI. "We are continuing to focus on identifying strong, strategic acquisitions, while also turning our attention towards capitalizing on opportunities to create synergies between our existing and newly acquired businesses."

A summary of MCI's financial and operational highlights for the quarter are set out below, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on MCI's SEDAR page at www.sedar.com. Financial measures described as "Adjusted" in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.

Third Quarter 2021 Financial Highlights

Significant financial highlights for MCI during the third quarter of 2021 included:

   -- Revenue Growth Year-on-year: Revenue for the third quarter of 2021 
      increased 29% over the same period in 2020, driven by the ongoing 
      recovery of publicly-insured health services, ongoing growth from 
      corporate health services, and revenue contributed by recently acquired 
      businesses. Total revenue for the three months ended September 30, 2021 
      was $12.6 million, compared to total revenue of $9.8 million in the 
      comparable period in 2020. Revenue contributions from 2021 acquisitions 
      of Khure and Polyclinic accounted for 44% of the growth, and their 
      contributions are expected to continue to increase as the businesses are 
      integrated, with revenue synergy opportunities already being realized in 
      the fourth quarter of 2021. 
   -- Increased Patient Volumes:   Patient volumes grew approximately 31%, 
      year-on-year, excluding increases from acquired businesses in 2021. 
      Patient volumes continued to improve despite continuing COVID-19 
      restrictions as patients and physicians become more comfortable with 
      virtual channels and pent-up demand for health services continues to 
      grow. 
   -- Growth in Corporate Customers: The Company added 27 new corporate health 
      customers in the third quarter of 2021, including a major insurance 
      company for which MCI is now coordinating national appointments for plan 
      members, and has become a preferred vendor for Destination Toronto, 
      providing pre-travel concierge travel testing programs and other 
      services. 
   -- Liquidity: Cash was $9.98 million at the end of the quarter, compared to 
      $0.89 million in the same quarter last year, ensuring short- and 
      medium-term capital requirements are met while the Company continues to 
      pursue new strategic acquisitions and to develop and implement the 
      Company's data-driven healthcare initiatives. 
   -- Adjusted EBITDA: Adjusted EBITDA(1) for the quarter was negative $1.8 
      million, as compared to an Adjusted EBITDA of $2.1 million in the same 
      period last year. 
   -- Net Losses:   Net losses for the quarter were $5.4 million, as compared 
      to a gain of $0.9 million from the same quarter in the previous year, 
      reflecting increased expenses relating to expansion of personnel, 
      share-based compensation and acquisition-related expenses as the Company 
      continues to focus on rapid growth and expansion. 

Third Quarter 2021 Operational Highlights

Significant operational highlights for MCI during the third quarter of 2021 included:

   -- Acquisition of Polyclinic: On July 30, 2021, MCI acquired an 80% interest 
      in Polyclinic for total consideration of $7.1 million. Polyclinic is 
      comprised of The Quit Clinic Inc., Executive Medical Concierge Canada 
      Ltd. and Canadian Phase Onward Inc. Polyclinic provides onsite integrated 
      health services including primary care, specialist care, concierge 
      medicine, lab services, and an in-house clinical research organization. 
      The details of the acquisition are set out in MCI's press release dated 
      July 30, 2021. 
   -- Khure Collaborations and Strategic Partnerships: Khure has secured 
      strategic partnership agreements with 2 of the top 4 electronic medical 
      record companies in English-speaking Canada, which will help remove 
      technical barriers and increase the availability of Khure's AI-enabled 
      rare disease clinical intelligence platform for more than 15 thousand 
      physicians across the country. As part of a recently signed commercial 
      collaboration, Khure's platform is now included in the product and 
      service offerings of one of Canada's leading providers of prescription 
      level data, health technology services and advanced analytics to the 
      pharmaceutical industry. 
   -- Commercial Partnership with Acorn Biolabs Inc. ("Acorn"): The Company's 
      commercial partnership with Acorn, a Toronto-based biotechnology company, 
      continues to roll-out, with Acorn's stem-cell collection and cryostorage 
      services being marketed across the Company's channels and Acorn 
      performing follicle extractions on designated days each month at three 
      MCI clinics so far. 
   -- Investment in ORO: On July 14, 2021, MCI invested $250,000 to purchase an 
      interest in ORO, an innovative, dermatologically-focused telehealth and 
      virtual health care service provider, through the acquisition of Series 1 
      Class Seed Preferred Shares of ORO. 

Outlook

MCI expects to accelerate total company revenue growth in the first half of fiscal 2022 as it executes its strategic plan on multiple fronts including:

   -- Organic growth of government insured health services from its omnichannel 
      network of clinics, telehealth and the MCI Connect virtual platform. 
   -- Continued organic growth in health services provided to corporate 
      customers, as it expands its customer base and increases the number of 
      available service offerings. 
   -- New technology partnerships and strategic acquisitions to accelerate its 
      technology roadmap. 
   -- Acquisitions of specialty clinics to expand its health service offerings 
      and enter new markets by leveraging technology to deliver more services 
      to its large and growing patient and physician base. 
   -- Exploration of commercial relationships that leverage expressed interest 
      in Khure's AI-driven clinical evidence around rare diseases to accelerate 
      patient recruitment for clinical trials, accelerate patient access to 
      treatment, support regulatory decision-making through the application of 
      real-world evidence and set the foundations for new AI technologies. 

Conference Call Details

MCI will hold a conference call to discuss progress on its key strategic initiatives and financial results for the third quarter of 2021, on November 15, 2021 at 5:30 pm ET. Participants are encouraged to access the call at least 10 minutes prior to start.

Date:                                Monday November 15, 2021 
Time:                                      5:30 pm (ET) 
Duration:                                   60 minutes 
Dial-in Canada/US:                  (833) 540-1153 (Toll-free) 
                                  (918) 922-6528 (International) 
Conference Call ID:                                                   5288331 
Webcast link:         https://edge.media-server.com/mmc/p/km3fxffv 

Selected Unaudited Financial Information