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Centric Health Reports Continued Growth for the Second Quarter of 2015

5 August 2015

TORONTO, Aug. 4, 2015 /CNW/ - Centric Health Corporation, Canada's leading diversified healthcare services company, today reported its financial results for the second quarter ended June 30, 2015.

Highlights for the Second Quarter and Year-to-Date(All comparative figures are for the corresponding period of the prior year)

  • Revenue from continuing operations for the second quarter increased 15.6% to $91.0 million from $78.7 million, and year-to-date increased 13.5% to $174.2 million from $153.5 million;
  • Adjusted EBITDA from continuing operations for the second quarter increased 24.0% to $9.6 million from $7.8 million, and year-to-date increased 16.0% to $17.0 million from $14.7 million;
  • Adjusted EBITDA margin from continuing operations for the second quarter and year-to-date was 10.6% and 9.8% compared with 9.9% and 9.6% for the same periods in the prior year;
  • Generated cash flow from operations of $12.7 million for the second quarter and $14.7 million year-to-date, which included $2.5 million and $5.2 million, respectively, of restructuring and transaction charges, and marked the thirteenth consecutive quarter of positive cash flow from operations;
  • Increased Revolving Facility's capacity to $35.0 million from its previous temporary level of $25.0 million, an amount that effectively met the Company's operating needs. The amendment represents a $5.0 million permanent reduction to the Revolving Facility's capacity as part of the Company's debt reduction strategy; and,
  • On June 25, 2015, the Company purchased an aggregate of 9,842 second lien senior secured notes for a total principal amount of $9.8 million plus $0.2 million in accrued and unpaid interest, representing $10.0 million in total. The purchase marked the finalization of the planned $15.0 million permanent debt reduction through this $5.0 million permanent reduction to the Revolving Facility and the $9.8 million redemption of the second lien senior secured notes.

Highlights Subsequent to Quarter End

  • In light of unsolicited interest in certain businesses, the Company initiated a process to consider and evaluate strategic alternatives available to the Company and established a Special Committee of the Board of Directors, independent of management, to oversee the strategic review process. The Company has previously disclosed that it was exploring potential opportunities to maximize shareholder value, which may include the divestiture of existing businesses. In addition to a potential sale of the Company's businesses or assets or any combination thereof, some of the strategic alternatives may include, but are not limited to joint ventures, strategic financing, redemption or repurchase of securities as well as the continued execution of its business plan.

"The second quarter was again indicative of the continuing underlying strength and momentum in our business, marking our fifth consecutive period of year-over-year increases in both revenue and adjusted EBITDA, and our thirteenth consecutive quarter of positive cash flow from operations," said David Cutler, President and Chief Executive Officer. "As expected, organic growth continued to be dampened in the short-term by transient factors, but we remain confident in the long-term prospects of each of our businesses."

"In response to unsolicited interest in several of our businesses, the formation of the Special Committee of the Board announced last week represents a furtherance of our focus on optimizing our asset mix and reducing our leverage to enable us to continue to capitalize on the underlying opportunity in Canadian healthcare, unlocking and growing shareholder value."

Please click here to review the full press release.

To access the archived Second Quarter 2015 Financial Results conference call which took place on Wednesday, August 5th, dial 1-855-859-2056 or 416-849-0833 and enter the reservation number 89692561. The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of CentricHealth.ca.