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.