Agility Health, Inc.
TSX VENTURE : AHI

Agility Health, Inc.

May 29, 2015 17:04 ET

Agility Health Reports First Quarter 2015 Financial Results

GRAND RAPIDS, MICHIGAN--(Marketwired - May 29, 2015) - Agility Health, Inc. ("Agility Health or "the Company") (TSX VENTURE:AHI), today reports its financial results for the three‐month period ended March 31, 2015. All amounts are expressed in U.S. dollars unless indicated otherwise.

Financial and Operating Highlights for the First Quarter and Year‐to‐Date

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

  • Adjusted EBITDA from continuing operations for the first quarter grew to $ 1.3 million or 8.6% of revenues from $0.3 million or 0.2% revenues.
  • Gross margin from operations for the first quarter grew to 24% from 20%
  • Revenue from continuing operations for the first quarter grew to $15.8 million from $15.3 million.
  • Net loss for the first quarter declined to $0.5 million or $(0.01) per share compared with a loss $1.4 million or $(0.02) per share in the prior year.
  • Completion of a non‐brokered private placement with gross proceeds of approximately $2 million.

"We are very encouraged by the positive trends in EBITDA improvement, gross margin expansion and revenue growth experienced by Agility during the first quarter," stated Steve Davidson, Agility Health's Chairman and CEO. "Our focus on operational improvements has resulted in a significantly improved trend in EBITDA which we believe should continue going forward, as we head into the historically higher volume quarters of the year.

Our goal remains to return Agility Health to profitability this year combined with continued growth driven organically, through timely acquisitions and "greenfield" clinic expansions."

Mr. Davidson added, "A particular highlight so far this year has been the strong performance of Agility's Industrial Rehabilitation Division and our wholly owned subsidiary Work‐Fit LLC, expanding our relationships with key corporate clients such as the Ford Motor Company. Working with clients inside their world‐class manufacturing environments to reduce work related injuries and drive down health care costs, while contributing to the overall wellness of the employee population is gratifying. We look forward to providing more updates on our corporate health initiatives going forward."

Subsequent to the end of the first quarter, the Company announced the following developments:

  • Agility announced that it has executed a non‐binding letter of intent to acquire a specialty physical therapy business that would expand the company's platform and offerings. The transaction is expected to close during the third quarter of 2015.
  • Agility announced that it has opened a new, 2800 square foot clinic in Mattawan, Michigan, the first of several "greenfield" expansions planned for 2015.
  • Agility announced that its wholly owned orthotics division, Biocorrect LLC, had achieved Medicare accreditation and billing privileges.

Selected Financial Information

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
March 31, 2015 and December 31, 2014
(Expressed in US Dollars)
(Unaudited)
March 31,
2015
(Audited)
December 31,
2014
ASSETS
Current assets
Cash $ 2,520,106 $ 1,301,084
Accounts and other receivables 8,155,363 7,668,353
Income taxes receivable 115,808 115,808
Prepaid expenses and other current assets 829,042 1,173,300
Total current assets 11,620,319 10,258,545
Investments 86,025 86,025
Property and equipment 1,280,898 1,307,508
Intangible assets 12,710,863 13,024,986
Goodwill 2,682,730 2,682,730
Total assets $ 28,380,835 $ 27,359,794
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 8,532,630 $ 8,122,871
Line of credit 5,139,953 5,060,085
Current portion of long‐term debt 472,222 555,555
Current portion of other long‐term liabilities 1,427,081 1,413,432
Total current liabilities 15,571,886 15,151,943
Convertible debentures payable 1,368,598 1,114,763
Other long‐term liabilities 22,218,184 22,214,537
Total liabilities 39,158,668 38,481,243
Equity (deficit)
Share capital 7,331,642 6,280,665
Contributed surplus 306,168 299,036
Retained deficit (20,288,793 ) (19,382,756 )
(12,650,983 ) (12,803,055 )
Non‐controlling interest 1,873,150 1,681,606
Total equity (deficit) (10,777,833 ) (11,121,449 )
Total liabilities and equity (deficit) $ 28,380,835 $ 27,359,794
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Three months ended March 31, 2015 and 2014
(Expressed in US Dollars)
(Unaudited)
2015
(Unaudited)
2014
Revenue $ 15,767,504 $ 15,342,868
Cost of revenues
Salaries and benefits 10,102,328 10,111,395
Contract labor 218,501 235,108
Facility 972,693 912,249
Supplies 175,894 246,990
Depreciation and amortization 184,643 180,991
Provision for bad debts 98,929 179,440
Other 280,949 337,787
Total cost of revenues 12,033,937 12,203,960
Gross margin 3,733,567 3,138,908
Selling, general and administrative 2,899,772 3,443,581
Other income (expense)
Interest expense (1,238,741 ) (1,136,872 )
Interest income 81
Loss on disposal of equipment (1,278 )
Foreign currency translation gain (loss) 22,149
Fair value adjustment on warrants and obligations (135,709 )
(1,374,450 ) (1,115,920 )
Loss from continuing operations before income taxes (540,655 ) (1,420,593 )
Provision for income taxes
Current 8,422 12,902
Deferred
8,422 12,902
Net and total comprehensive loss from continuing operations (549,077 ) (1,433,495 )
Discontinued Operations
Net and total comprehensive loss from discontinued operations (56,416 ) (63,950 )
Net and total comprehensive loss $ (605,493 ) $ (1,497,445 )
Net and total comprehensive income (loss) attributable to:
Shareholders $ (906,037 ) $ (1,585,708 )
Non‐controlling interest 300,544 88,263
$ (605,493 ) $ (1,497,445 )
Earnings per share
Basic, loss per share (0.01 ) (0.02 )
Diluted, loss per share (0.01 ) (0.02 )

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 March 31, 2015, Agility Health operates 70 outpatient or onsite rehabilitation locations in 16 states. Agility Health's contract therapy services business provides rehabilitative services to 42 hospitals and inpatient rehabilitation units, 35 nursing homes, long‐term care facilities and other service locations in 9 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 and Adjusted EBITDA to measure its financial performance. EBITDA is defined by the Company as the addition of net loss, depreciation and amortization and financial expenses. Adjusted EBITDA is defined as EBITDA before acquisition expenses, certain legal expenses and provision adjustments, public listing expense, public transaction expenses, contingent consideration expenses, fair value adjustments on warrants and obligations, share‐based compensation expense, contract termination fees (non‐recurring revenue) and any restructuring expenses. The Company uses Adjusted EBITDA for the purpose of evaluating the quality of historical and prospective financial and operational performance. Management believes that Adjusted EBITDA is a useful measure for evaluating the performance of the Company. Adjusted EBITDA as well as EBITDA, are not recognized measures under IFRS and do not have 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", "should" 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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