Centric Health Reports Continued Growth for the Third Quarter of 2015
TORONTO, Nov. 16, 2015 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare services company, today reported its financial results for the third quarter ended September 30, 2015.
Highlights for the Third Quarter and Year-to-Date
- Revenue from continuing operations for the third quarter increased 16% to $87.1 million from $75.3 million, and year-to-date increased 14% to $261.4 million from $228.8 million;
- Adjusted EBITDA from continuing operations for the third quarter increased 13% to $8.1 million from $7.2 million, and year-to-date increased 14% to $25.1 million from $22.0 million;
- Adjusted EBITDA margin from continuing operations for the third quarter and year-to-date was 9% and 10% compared with 10% and 10% for the same periods in the prior year;
- Generated cash flow from operations of $7.3 million for the third quarter and $22.0 million year-to-date, which included $1.1 million and $6.3 million, respectively, of restructuring and transaction charges, and marked the fourteenth consecutive quarter of positive cash flow from operations;
- The Company's False Creek Healthcare Centre (Vancouver) received a one-year Surgical Accreditation in September of 2015 through the College of Physicians and Surgeons, Non Hospitals Medical Surgical Facilities Program, and, subsequent to quarter end, a Diagnostics Accreditation (through to 2018) by the College of Physicians and Surgeons, Diagnostic Accreditation Program and its Maples Surgical Centre (Winnipeg) received a five-year Accreditation through the Manitoba Quality Assurance Program, College of Physicians & Surgeons of Manitoba for Diagnostic Imaging Accreditation and Fluoroscopy Accreditation; and,
- 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. During the third-quarter of 2015 the Company engaged in discussions with interested third-parties with respect to a potential divestiture of certain businesses or assets of the Company, which is one of the alternatives currently being considered and evaluated by the Special Committee. As of the date hereof, the Special Committee has not made any recommendations and the Board has not approved any transaction. Should the Company conclude a sale or sales of businesses or assets, it is anticipated that a substantial portion of the proceeds of such a sale or sales would be used to further reduce the Company's indebtedness.
Highlights Subsequent to Quarter End
- The Company's Smart Shape Weight Loss Centre ("SWLC"), has been recognized as Canada's first and only Centre of Excellence (COE) in Metabolic and Bariatric Surgery by the Surgical Review Corporation (SRC), an internationally recognized healthcare leader committed to advancing the safety, and efficiency of surgical care worldwide. After a rigorous review process, the SRC has recognized SWLC and its surgeons for its commitment to excellence.
"Centric Health delivered its sixth consecutive quarter of growth in revenue and Adjusted EBITDA and its fourteenth consecutive quarter of positive cash flow from operations," said David Cutler, President and Chief Executive Officer. "The momentum across our business stems from our leading market positions and national platforms, commitment to the highest quality patient care, deep knowledge and experience of healthcare delivery, and trusted relationships with payers, physicians, and government agencies. These strengths continue to uniquely position our Company for success in the evolving Canadian healthcare industry."
Mr. Cutler continued, "The Strategic Review initiated during the third quarter following unsolicited interest in certain of our businesses continues to move forward. Right-sizing our debt to provide the financial strength and flexibility to fully capitalize on our growth opportunities and maximize value for shareholders over the long term remains a top priority."
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To access the archived Third Quarter 2015 Financial Results conference call which took place on Tuesday, November 17, 2015, dial 1-855-859-2056 or 416-849-0833 and enter the reservation number 61368258. The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of CentricHealth.ca.