Agility Health, Inc.
TSX VENTURE : AHI

Agility Health, Inc.

August 12, 2015 09:00 ET

Agility Health Reports Second Quarter 2015 Financial Results

GRAND RAPIDS, MICHIGAN--(Marketwired - Aug. 12, 2015) - Agility Health, Inc. ("Agility Health" or "the Company") (TSX VENTURE:AHI) today reports its financial results for the three-month period ended June 30, 2015. All amounts are expressed in U.S. dollars unless indicated otherwise.

Financial and Operating 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 was $15.8 million;
  • Revenue for the first and second quarters of 2015 grew to $31.5 million from $31.1 million for the comparable period in 2014;
  • EBITDA from continuing operations for the second quarter grew to a record $1.5 million or 10% of revenues;
  • EBITDA from continuing operations for the first and second quarters of 2015 grew to $2.6 million from $1.4 million for the comparable period in 2014;
  • Gross margin from operations for the second quarter was 22%;
  • Gross margin from operations for the first and second quarters of 2015 grew to 23% from 22% for the comparable period in 2014;
  • Net loss for the second quarter declined to $0.3 million or $(0.01) per share;
  • Net loss for the first and second quarters of 2015 declined to $0.9 million or $(0.02) per share;
  • Completion of a prospectus offering of the Company's voting common shares with gross proceeds of approximately $2.2 million.

"We are greatly encouraged by the continued improvement in operating performance experienced in the second quarter," stated Steve Davidson, Agility Health's Chairman and CEO. "As expected, EBITDA for the quarter grew to a record $1.5 million or 10% of revenues, a positive result of ongoing efforts to focus on higher margin business opportunities combined with diligent expense management. This result is more than double the EBITDA percentage Agility experienced during the fiscal year 2014. Our goal remains to return Agility Health to profitability this year combined with growth driven organically, through timely acquisitions and 'greenfield' clinic expansions."

During the second quarter, the Company announced the following developments:

  • Agility announced that it has opened a new, 2,800 square foot clinic in Mattawan, Michigan, the first of several "greenfield" expansions planned for 2015.
  • Agility announced that its wholly owned orthotics subsidiary, Biocorrect, LLC, had achieved Medicare accreditation and billing privileges.

Selected Financial Information

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, 2015 and December 31, 2014
(Expressed in US Dollars)
(Unaudited) (Audited)
June 30, December 31,
2015 2014
ASSETS
Current assets
Cash $ 2,700,706 $ 1,301,084
Accounts and other receivables 8,057,353 7,668,353
Income taxes receivable 115,808 115,808
Prepaid expenses and other current assets 771,015 1,173,300
Total current assets 11,644,882 10,258,545
Investments 86,025 86,025
Property and equipment 1,068,494 1,307,508
Intangible assets 12,644,341 13,024,986
Goodwill 2,682,730 2,682,730
Total assets $ 28,126,472 $ 27,359,794
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 7,729,183 $ 8,122,871
Line of credit 5,276,697 5,060,085
Current portion of long-term debt 388,889 555,555
Current portion of other long-term liabilities 1,171,923 1,413,432
Total current liabilities 14,566,692 15,151,943
Convertible debentures payable 1,258,947 1,114,763
Other long-term liabilities 22,001,207 22,214,537
Total liabilities 39,158,668 38,481,243
Equity (deficit)
Share capital 8,976,579 6,280,665
Contributed surplus 313,300 299,036
Retained deficit (20,871,804 ) (19,382,756 )
(11,581,925 ) (12,803,055 )
Non-controlling interest 1,881,551 1,681,606
Total equity (deficit) (9,700,374 ) (11,121,449 )
Total liabilities and equity (deficit) $ 28,126,472 $ 27,359,794
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Three months ended June 30, 2015 and 2014
(Expressed in US Dollars)
(Unaudited) (Unaudited)
2015 2014
Revenue $ 15,784,847 $ 15,808,191
Cost of revenues
Salaries and benefits 10,062,680 10,270,425
Contract labor 332,157 187,977
Facility 973,150 660,727
Supplies 207,854 255,158
Depreciation and amortization 167,626 184,022
Provision for bad debts 153,742 84,258
Other 343,098 373,236
Total cost of revenues 12,240,307 12,015,803
Gross margin 3,544,540 3,792,388
Selling, general and administrative 2,754,001 2,933,783
Other income (expense)
Interest expense (1,200,042 ) (1,141,594 )
Interest income 14 75
Loss on disposal of equipment - (4,067 )
Foreign currency translation gain (loss) 996 9,514
Fair value adjustment on warrants and obligations 270,801 (10,000 )
(928,231 ) (1,146,072 )
Loss from continuing operations before income taxes (137,692 ) (287,467 )
Provision for income taxes
Current 27,126 35,170
Deferred - -
27,126 35,170
Net and total comprehensive loss from continuing operations (164,818 ) (322,637 )
Discontinued Operations
Net and total comprehensive loss from discontinued operations (87,792 ) (91,212 )
Net and total comprehensive loss $ (252,610 ) $ (413,849 )
Net and total comprehensive income (loss) attributable to:
Shareholders $ (583,011 ) $ (699,578 )
Non-controlling interest 330,401 285,729
$ (252,610 ) $ (413,849 )
Earnings per share
Basic, loss per share (0.01 ) (0.02 )
Diluted, loss per share (0.01 ) (0.02 )
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Six months ended June 30, 2015 and 2014
(Expressed in US Dollars)
(Unaudited) (Unaudited)
2015 2014
Revenue $ 31,552,351 $ 31,151,059
Cost of revenues
Salaries and benefits 20,165,008 20,381,820
Contract labor 550,658 423,085
Facility 1,945,843 1,572,976
Supplies 383,748 502,148
Depreciation and amortization 352,269 365,013
Provision for bad debts 252,671 263,698
Other 624,047 711,023
Total cost of revenues 24,274,244 24,219,763
Gross margin 7,278,107 6,931,296
Selling, general and administrative 5,653,773 6,377,364
Other income (expense)
Interest expense (2,438,783 ) (2,278,466 )
Interest income 14 156
Loss on disposal of equipment - (5,345 )
Foreign currency translation gain (loss) 996 31,663
Fair value adjustment on warrants and obligations 135,092 (10,000 )
(2,302,681 ) (2,261,992 )
Loss from continuing operations before income taxes (678,347 ) (1,708,060 )
Provision for income taxes
Current 35,548 48,072
Deferred - -
35,548 48,072
Net and total comprehensive loss from continuing operations (713,895 ) (1,756,132 )
Discontinued Operations
Net and total comprehensive loss from discontinued operations (144,208 ) (155,162 )
Net and total comprehensive loss $ (838,103 ) $ (1,911,294 )
Net and total comprehensive income (loss) attributable to:
Shareholders $ (1,489,048 ) $ (2,285,286 )
Non-controlling interest 630,945 373,992
$ (858,103 ) $ (1,911,294 )
Earnings per share
Basic, loss per share (0.02 ) (0.03 )
Diluted, loss per share (0.02 ) (0.03 )

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 June 30, 2015, Agility Health operates 84 outpatient or onsite rehabilitation locations in 15 states. Agility Health's contract therapy services business provides rehabilitative services to 35 hospitals and inpatient rehabilitation units, 36 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 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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