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