Agility Health, Inc.

Agility Health, Inc.

May 30, 2016 22:45 ET

Agility Health Reports First Quarter 2016 Financial Results

GRAND RAPIDS, MICHIGAN--(Marketwired - May 30, 2016) - Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health or "the Company"), today reports its financial results for the three-month period ended March 31, 2016. 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)

  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations remained consistent at $1.1 million or 7% of revenues.
  • Gross margin from operations declined to 21% from 23%, due in part to the volume of greenfield opportunities that were initiated in 2015 (and for which initial operating losses have been incurred, as expected, thereby contributing to dilution of gross margin)
  • Net and total loss declined to $(0.4) million or $(0.01) per share compared with a loss of $(0.6) million or $(0.01) per share in the prior year.

"We continue to be encouraged by positive trends within operations, including the number of greenfield development opportunities that have been executed over the last twelve months, which we believe will begin to contribute positively to EBITDA, gross margin and revenue growth as these opportunities begin to mature," stated Steve Davidson, Agility Health's Chairman and CEO. "We continue to focus on revenue enhancement opportunities, including contract revenue business development and outpatient greenfield clinic development, as we advance toward our goal of achieving profitability in the near term."

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

  • Agility announced that its subsidiary, Work-Fit, is expanding its injury prevention services within the Fabrication Division of Boeing. This expansion will result in an increase in Work-Fit services of more than 70% at three current Boeing locations, as well as the addition of new Boeing locations in Portland, Oregon and Salt Lake City, Utah.
  • Agility announced that its subsidiary, Border Therapy Services, LLC, has opened a new, 2400 square foot clinic in Horizon City, Texas, a suburb of El Paso., the first of several "greenfield" expansions targeted for 2016.

Selected Financial Information

March 31, 2016 and December 31, 2015
(Expressed in US Dollars)
(Unaudited) (Audited)
March 31, December 31,
2016 2015
Current assets
Cash $ 2,815,385 $ 1,306,593
Accounts and other receivables 7,034,469 7,206,485
Income taxes receivable 19,241 115,808
Prepaid expenses and other current assets 987,654 1,004,376
Total current assets 10,856,749 9,663,262
Investments 86,025 86,025
Property and equipment 1,269,393 1,187,773
Intangible assets 12,043,946 12,160,263
Goodwill 2,531,390 2,531,390
Total assets $ 26,787,503 $ 25,598,713
Current liabilities
Accounts payable and accrued liabilities $ 9,651,481 $ 8,267,626
Line of credit 5,372,216 4,582,875
Current portion of long-term debt 138,889 222,222
Current portion of other long-term liabilities 323,908 630,794
Total current liabilities 15,486,494 13,703,517
Convertible debentures payable 1,037,868 1,004,628
Other long-term liabilities 21,917,858 21,832,854
Total liabilities 38,442,220 36,540,999
Equity (deficit)
Share capital 9,033,473 9,020,480
Contributed surplus 355,267 355,267
Retained deficit (23,093,237 ) (22,430,873 )
(13,704,497 ) (13,055,126 )
Non-controlling interest 2,049,780 2,112,840
Total equity (deficit) (11,654,717 ) (10,942,286 )
Total liabilities and equity (deficit) $ 26,787,503 $ 25,598,713
Three months ended March 31, 2016 and 2015
(Expressed in US Dollars)
(Unaudited) (Unaudited)
2016 2015
Revenue $ 15,521,949 $ 15,767,504
Cost of revenues
Salaries and benefits 9,984,495 10,102,328
Contract labor 304,232 218,501
Facility 1,019,446 972,693
Supplies 205,778 175,894
Depreciation and amortization 166,492 184,643
Provision for bad debts 255,201 98,929
Other 318,486 280,949
Total cost of revenues 12,254,130 12,033,937
Gross margin 3,267,819 3,733,567
Selling, general and administrative 2,612,036 2,899,772
Other income (expense)
Interest expense (1,094,690 ) (1,238,741 )
Interest income 12,612 -
Foreign currency translation gain (loss) 120 -
Fair value adjustment on warrants and obligations (1,090 ) (135,709 )
(1,083,048 ) (1,374,450 )
Loss from continuing operations before income taxes (427,265 ) (540,655 )
Provision for income taxes
Current 7,210 8,422
Deferred - -
7,210 8,422
Net and total comprehensive loss from continuing operations (434,475 ) (549,077 )
Discontinued Operations
Net and total comprehensive loss from discontinued operations (20,949 ) (56,416 )
Net and total comprehensive loss $ (455,424 ) $ (605,493 )
Net and total comprehensive income (loss) attributable to:
Shareholders $ (662,364 ) $ (906,037 )
Non-controlling interest 206,940 300,544
$ (455,424 ) $ (605,493 )
Earnings per share
Basic, loss per share (0.01 ) (0.01 )
Diluted, loss per share (0.01 ) (0.01 )

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, 2016, 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, 27 nursing homes, long-term care facilities and other service locations in 8 states. For more information, please visit

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