Agility Health, Inc.
TSX VENTURE : AHI

Agility Health, Inc.

May 02, 2016 08:36 ET

Agility Health Reports 2015 Financial Results - EBITA Increases by 218% Through Consistent Growth and Focus on Profitability

GRAND RAPIDS, MICHIGAN--(Marketwired - May 2, 2016) - Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health" or the "Company"), today reports its financial results for the fourth quarter and year ended December 31, 2015. All amounts are expressed in U.S. dollars unless indicated otherwise.

During 2015, the Company achieved its goals of improving operational performance and business development, which included a strong focus on greenfield clinic expansion and focused expansion of contract services, including expansion of industrial rehabilitation services.

Financial and Operating Highlights for 2015

(All comparative figures are for the corresponding period of the prior year)

  • EBITDA from continuing operations grew by 218% to $5.1 million or 8% of revenues from $1.6 million and 3% of revenues;
  • Gross margin from operations for the year remained consistent at 22%;
  • Net and total loss declined to $1.9 million or $(0.03) per share in 2015 compared to $6.5 million or $(0.09) per share in 2014; and
  • Four outpatient clinics were opened during 2015, compared to one in 2014.

"Agility Health's financial results for 2015 demonstrate the fulfillment of many of the operational changes and initiatives that began in 2014, as we've worked diligently to shepherd the Company toward consistent growth and profitability," stated Steve Davidson, Agility Health's Chairman and CEO. "We continue to focus on internal growth initiatives, including maintaining a greenfield clinic expansion opportunity pipeline, and seeking new or expanded contract customers across all lines of business. We remain focused on driving improvement in revenue enhancing initiatives into and throughout 2016."

Financial and Operating Highlights for the Fourth Quarter, 2015

(All comparative figures are for the corresponding period of the prior year)

  • EBITDA from continuing operations grew to $1.0 million or 7% of revenues from $nil or 0% of revenues;
  • Revenue from continuing operations for the period declined to $15.2 million from $15.4 million; and
  • Gross margin from operations for the quarter slightly declined to 19% from 20%.

Selected Financial Information

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December 31, 2015 and 2014

(Expressed in US Dollars)

December 31, December 31,
2015 2014
ASSETS
Current assets
Cash $ 1,306,593 $ 1,301,084
Accounts and other receivables 7,206,485 7,668,353
Income taxes receivable 115,808 115,808
Prepaid expenses and other current assets 1,004,376 1,173,300
Total current assets 9,633,262 10,258,545
Investments 86,025 86,025
Property and equipment 1,187,773 1,307,508
Intangible assets 12,160,263 13,024,986
Goodwill 2,531,390 2,682,730
Total assets $ 25,598,713 $ 27,359,794
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 8,267,626 $ 8,122,871
Line of credit 4,582,875 5,060,085
Current portion of long-term debt 222,222 555,555
Current portion of other long-term liabilities 630,794 1,413,432
Total current liabilities 13,703,517 15,151,943
Convertible debentures payable 1,004,628 1,114,763
Other long-term liabilities 21,832,854 22,214,537
Total liabilities 36,540,999 38,481,243
Equity (deficit)
Share capital 9,020,480 6,280,665
Contributed surplus 355,267 299,036
Retained deficit (22,430,873) (19,382,756)
(13,055,126) (12,803,055)
Non-controlling interest 2,112,840 1,681,606
Total equity (deficit) (10,942,286) (11,121,449)
Total liabilities and equity (deficit) $ 25,598,713 $ 27,359,794

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Years ended December 31, 2015 and 2014

(Expressed in US Dollars)

2015 2014
Revenue $ 62,328,991 $ 62,104,509
Cost of revenues
Salaries and benefits 40,093,117 40,837,396
Contract labor 1,018,142 802,113
Facility 3,895,123 3,424,663
Supplies 802,671 891,292
Depreciation and amortization 692,741 726,829
Provision for bad debts 770,408 464,763
Other 1,328,860 1,424,005
Total cost of revenues 48,601,062 48,571,061
Gross margin 13,727,929 13,533,448
Selling, general and administrative 11,682,170 14,313,511
Other income (expense)
Interest expense (4,808,120 ) (4,684,482)
Interest income 50 157
Loss on disposal of equipment - (38,568)
Foreign currency translation expense (186 ) 31,644
Fair value adjustment on warrants and obligations 991,969 284,882
(3,816,287 ) (4,406,367)
Loss from continuing operations before income taxes (1,770,528 ) (5,186,430)
Provision for income taxes
Current 66,202 71,729
Deferred - -
66,202 71,729
Net and total comprehensive loss from continuing operations (1,836,730 ) (5,258,159)
Discontinued Operations
Net and total comprehensive loss from discontinued operations (99,153 ) (1,257,477)
Net and total comprehensive loss $ (1,935,883 ) $ (6,515,636)
Net and total comprehensive income (loss) attributable to:
Shareholders $ (3,048,117 ) $ (7,337,303)
Non-controlling interest 1,112,234 821,667
$ (1,935,883 ) $ (6,515,636)
Earnings per share
Basic, loss per share $ (0.03 ) $ (0.09)
Diluted, loss per share $ (0.03 ) $ (0.09)

About Agility Health

Through its subsidiary and principal operating entity, Agility Health, LLC, Agility Health operates a multi- state network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes and other institutional clients, providing care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions. In addition, Agility Health provides a number of ancillary services related to physical rehabilitation, including practice management software systems and custom orthotics. As of December 31, 2015, Agility Health operates 87 outpatient or onsite rehabilitation locations in 14 states. Agility Health's contract therapy services business provides rehabilitative services to 33 hospitals and inpatient rehabilitation units, 28 nursing homes, long-term care facilities and other service locations in 8 states. For more information, please visit investors.agilityhealth.com.

Non-IFRS Financial Measures

Agility Health's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company also uses certain non-IFRS measures, such as EBITDA to measure its financial performance. EBITDA is defined by the Company as the addition of net loss, depreciation and amortization and financial expenses. The Company uses EBITDA for the purpose of evaluating its historical and prospective financial and operational performance. Management believes that EBITDA is a useful measure for evaluating the performance of the Company. EBITDA is not a performance measure recognized under IFRS, therefore it does not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled financial metrics reported by other companies.

Forward-Looking Information

This press release contains forward-looking statements regarding Agility Health and its business. Such statements are based on the current expectations and views of future events of Agility Health's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including the anticipated future growth of Agility Health, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumption and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Agility Health undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future events, or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Steven N. Davidson
    Chairman and Chief Executive Officer
    (616) 356-5000

    Ray Matthews
    Ray Matthews and Associates
    (604) 818-7778
    ray@raymatthews.ca