Canada NewsWire
VANCOUVER, May 15, 2020
VANCOUVER, May 15, 2020 /CNW/ - WELL Health Technologies Corp. (TSX: WELL) (the "Company" or "WELL"), a company focused on consolidating and modernizing clinical and digital assets within the primary healthcare sector, announces it has filed its condensed interim consolidated financial statements and MD&A for Fiscal First Quarter 2020 ended March 31, 2020.
"First quarter 2020 was an eventful quarter for WELL as we started the quarter by graduating from the TSX Venture to the main board of the TSX Exchange, we launched our VirtualClinic+ telehealth service and we witnessed the outbreak of the COVID-19 pandemic," said Hamed Shahbazi, Chairman and CEO of WELL. "While the COVID-19 pandemic has introduced much uncertainty and disruption to most industries, we feel enormously fortunate and grateful to be in a position where we are fully empowered to assist healthcare workers carry out their business continuity programs and support the important work that they do, regardless as to whether or not the care they are providing is carried out onsite at a clinic or virtually through our telehealth program. All our clinics have remained open throughout the pandemic and continue to provide much needed healthcare services during these trying times, while our VirtualClinic+ has allowed patients and physicians observing social distancing rules to seamlessly conduct virtual medical consultations for all kinds of critical and non-critical medical visits. In addition, our digital EMR business continued to grow and exhibit the rock-solid SaaS revenue and resiliency that we have come to observe with this business segment."
Covid-19 Update:
WELL implemented its business continuity plan in the first quarter resulting in its non-clinical staff working from home while the Company's corporate owned clinics remained open. Thus far, WELL's publicly insured clinical revenue is proving to be robust and highly resilient as a result of: (i) the Company's omni-channel service strategy, and (ii) a steady stream of patient visits from the Company's family practice business consisting of regular rostered patients.
WELL's VirtualClinic+ telehealth service is experiencing positive growth as patients observing social distancing and self-isolation measures are turning to telehealth services to meet their medical needs. WELL's VirtualClinic+ program has onboarded well over 800 healthcare practitioners since launching at the beginning of March and has now surpassed over 1,000 virtual patient booked appointments per day. Furthermore, WELL continues to aggressively roll-out VirtualClinic+ to its EMR network of over 1,500 clinics across Canada and has already onboarded more than 500 healthcare practitioners from this important channel alone.
First Quarter 2020 Financial Highlights:
First Quarter 2020 Business Highlights:
Subsequent Events:
Outlook:
As previously disclosed in the Company's 2019 year end annual Management Discussion & Analysis, WELL intends to focus much of its operational efforts in the balance of 2020 to ramping up its telehealth program, VirtualClinic+, continuing its efforts to digitally transform and derive efficiencies from its physical clinic footprint and drive growth in its EMR portfolio.
The Company's goals for 2020, which are unchanged from last quarter, are to: (i) achieve organic revenue growth in its operating businesses; (ii) continue to follow a disciplined acquisition and capital allocation strategy; and (iii) increase market share and awareness of its VirtualClinic+ telehealth service.
Conference Call:
WELL will hold a conference call to discuss its 2020 First Quarter financial results on Friday, May 15, 2020 at 1:00 pm ET (10:00 am PT). Please use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local) or 1-888-664-6383 (Toll-Free), with Conference ID: 8842 1948.
Selected Financial Highlights:
Please see SEDAR for complete copies of the Company's condensed interim consolidated financial statements and MD&A for the three months ended March 31, 2020.
Three months | Three months | |
$ | $ | |
Revenue | 10,227,000 | 7,388,043 |
Cost of clinical and digital services | (6,285,045) | (5,120,550) |
Gross Profit(4) | 3,941,955 | 2,267,493 |
Gross Margin(4) | 38.5% | 30.7% |
Adjusted EBITDA(1) | (245,932) | (338,465) |
Net loss and total comprehensive loss | (2,014,375) | (1,450,248) |
Net loss per share - for the period | (0.02) | (0.02) |
Weighted average number of common shares |
118,143,317 |
86,295,648 |
Reconciliation of net income to Adjusted EBITDA (1) | ||
Net loss for the period | (2,014,375) | (1,450,248) |
Depreciation and amortization | 728,373 | 391,182 |
Income tax | 55,649 | - |
Interest income | (89,447) | (40,803) |
Interest expense | 452,055 | 238,505 |
Rent expense on finance leases | (487,652) | (411,517) |
Stock-based compensation | 631,991 | 715,283 |
Time-based earn-out expense | 334,415 | 136,247 |
Transaction, restructuring, & integration costs expensed | 143,059 | 82,886 |
Adjusted EBITDA(1) | (245,932) | (338,465) |
Footnotes: | |
1. | EBITDA is a Non-GAAP measure. Earnings before interest, tax, depreciation and amortization ("EBITDA") should not be construed as an alternative to net income/loss determined in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA less net rent expense on premise leases considered to be finance leases under IFRS and before transaction, restructuring, and integration costs, time based earn-out expense, special warrants related expenses and stock based compensation. EBITDA does not have any standardized meanings under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations. |
2. | OSCAR, an acronym for "Open Source Clinical Application Resource", is an open-source EMR or "Electronic Medical Records" system developed by McMaster University's Department of Family Medicine to inspire collaboration between the wide spectrum of health professionals with the goal to drive downstream benefits to patient care. |
3. | Total Booked Appointments include the total number of appointments booked by patients. Once a booking has taken place, this metric is referred to as a patient visit. There are often a small number of cancellations or no-shows associated with booked appointments. |
4. | Gross Profit and Gross Margin are Non-GAAP measures that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Gross Profit as revenue less cost of clinical and digital services and Gross Margin as Gross Profit as a percentage of revenue. Gross Profit and Gross Margin should not be construed as an alternative for revenue or net loss determined in accordance with IFRS. The Company believes that Gross Profit and Gross Margin are meaningful metrics in assessing the Company's financial performance and operational efficiency. |
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL
WELL is an omni-channel digital health company that operates Primary Healthcare Facilities, is the third largest digital Electronic Medical Records (EMR) supplier in Canada and is a national provider of telehealth services. WELL owns and operates 21 medical clinics, provides digital EMR software and services to over 1,500 medical clinics across Canada and is a majority owner of SleepWorks Medical. WELL's overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. WELL is an acquisitive company that has completed ten acquisitions and two equity investments. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL". WELL was recognized as a TSX Venture 50 Company three years in a row in 2018, 2019 and 2020. To access the Company's telehealth service, visit: virtualclinics.ca and for corporate information, visit: www.WELL.company.
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation: all statements in the "Outlook" section of this news release, including the Company's goals for 2020 and the intention to ramp up the telehealth program, drive efficiencies from clinics, and drive growth from its EMR portfolio. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. WELL's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; WELL's assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain future financing on suitable terms; and that market competition may affect the business, results and financial condition of WELL. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE WELL Health Technologies Corp.
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