Agility Health Reports Third Quarter 2015 Financial Results

GRAND RAPIDS, MICHIGAN--(Marketwired - Nov. 24, 2015) - Agility Health, Inc. ("Agility Health" or "the Company") (TSX VENTURE:AHI) today reports its financial results for the three and nine-month period ended September 30, 2015. All amounts are expressed in U.S. dollars unless indicated otherwise.

Financial and Operating Highlights for the Third Quarter and Year-to-Date

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

• Revenue from continuing operations for the third quarter was $15.5 million;
• Revenue for the first three quarters of 2015 grew to $47.1 million from $46.7 million for the comparable period in 2014;
• EBITDA from continuing operations for the third quarter grew to $1.4 million or 9% of revenues from $0.2 million and 1% of revenues for the comparable period in 2014;
• EBITDA from continuing operations for the first three quarters of 2015 grew by 156% to $4.1 million from $1.6 million for the comparable period in 2014;
• Gross margin from operations for the third quarter was 23%;
• Net loss for the third quarter declined to $0.2 million or $(0.01) per share compared to a net loss of $2.3 million or $(0.02) per share for the comparable period in 2014; and
• Net loss for the first three quarters of 2015 declined by $3.1 million to $1.1 million or $(0.02) per share.

"We continue to be pleased with our progress toward our goal of profitability," stated Steve Davidson, Agility Health's Chairman and CEO. "Our third quarter results continue to show positive trending in operational improvement. EBITDA for the third quarter grew by more than 500% compared to the comparable period for the prior year and EBITDA for the first three quarters of the year has grown by more than 150% compared to the comparable period for the prior year. We remain focused on driving improvements in gross margin and managing the overall administrative cost structure of the business. Our goal remains to achieve profitability within the near term combined with growth, through timely strategic acquisitions and 'greenfield' clinic expansions."

Selected Financial Information

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

September 30, 2015 and December 31, 2014

(Expressed in US Dollars)

				(Unaudited)			(Audited)
				September 30,			December 31,
				2015			2014
ASSETS
Current assets
	Cash			$	2,692,397		$	1,301,084
	Accounts and other receivables				7,799,875			7,668,353
	Income taxes receivable				115,808			115,808
	Prepaid expenses and other current assets				943,034			1,173,300
		Total current assets			11,551,114			10,258,545
Investments					86,025			86,025
Property and equipment					1,142,340			1,307,508
Intangible assets					12,488,877			13,024,986
Goodwill					2,682,730			2,682,730
	Total assets			$	27,951,086		$	27,359,794
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities
	Accounts payable and accrued liabilities			$	8,560,568		$	8,122,871
	Line of credit				4,750,620			5,060,085
	Current portion of long-term debt				305,556			555,555
	Current portion of other long-term liabilities				1,140,480			1,413,432
		Total current liabilities			14,757,224			15,151,943
Convertible debentures payable					1,099,741			1,114,763
Other long-term liabilities					21,943,793			22,214,537
	Total liabilities				37,800,758			38,481,243
Equity (deficit)
	Share capital				9,003,145			6,280,665
	Contributed surplus				350,039			299,036
	Retained deficit				(21,357,043	)		(19,382,756	)
					(12,003,859	)		(12,803,055	)
	Non-controlling interest				2,154,187			1,681,606
		Total equity (deficit)			(9,849,672	)		(11,121,449	)
			Total liabilities and equity (deficit)	$	27,951,086		$	27,359,794

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three months ended September 30, 2015 and 2014

(Expressed in US Dollars)

			(Unaudited)			(Unaudited)
			2015			2014
Revenue			$	15,515,195		$	15,541,386
Cost of revenues
	Salaries and benefits			9,834,394			10,156,678
	Contract labor			271,960			192,737
	Facility			964,283			932,543
	Supplies			218,518			204,481
	Depreciation and amortization			173,805			182,082
	Provision for bad debts			107,669			80,838
	Other			333,933			347,546
		Total cost of revenues		11,904,562			12,096,905
Gross margin				3,610,633			3,444,481
Selling, general and administrative				3,046,122			3,786,065
Other income (expense)
	Interest expense			(1,174,089	)		(1,161,483	)
	Interest income			-			-
	Loss on disposal of equipment			-			(308	)
	Foreign currency translation gain (loss)			(1,096	)		(19	)
	Fair value adjustment on warrants and obligations			430,202			140,000
				(744,979	)		(1,021,809	)
Loss from continuing operations before income taxes				(180,468	)		(1,363,393	)
Provision for income taxes
	Current			14,083			12,055
	Deferred			-			-
				14,083			12,055
Net and total comprehensive loss from continuing operations				(194,551	)		(1,375,448	)
Discontinued Operations
Net and total comprehensive loss from discontinued operations				(18,052	)		(927,829	)
Net and total comprehensive loss			$	(212,603	)	$	(2,303,277	)
Net and total comprehensive income (loss) attributable to:
	Shareholders		$	(485,239	)	$	(2,547,979	)
	Non-controlling interest			272,636			244,702
			$	(212,603	)	$	(2,303,277	)
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

Three months ended September 30, 2015 and 2014

(Expressed in US Dollars)

			(Unaudited)			(Unaudited)
			2015			2014
Revenue			$	47,067,546		$	46,692,445
Cost of revenues
	Salaries and benefits			29,999,402			30,538,498
	Contract labor			822,618			615,822
	Facility			2,910,126			2,505,519
	Supplies			602,266			706,629
	Depreciation and amortization			526,074			547,095
	Provision for bad debts			360,340			344,536
	Other			957,980			1,058,569
		Total cost of revenues		36,178,806			36,316,668
Gross margin				10,888,740			10,375,777
Selling, general and administrative				8,699,895			10,163,429
Other income (expense)
	Interest expense			(3,612,872	)		(3,439,949	)
	Interest income			14			157
	Loss on disposal of equipment			-			(5,653	)
	Foreign currency translation gain (loss)			(96	)		31,644
	Fair value adjustment on warrants and obligations			565,294			130,000
				(3,0247,660	)		(3,283,801	)
Loss from continuing operations before income taxes				(858,815	)		(3,071,453	)
Provision for income taxes
	Current			49,631			60,127
	Deferred			-			-
				49,631			60,127
Net and total comprehensive loss from continuing operations				(908,446	)		(3,131,580	)
Discontinued Operations
Net and total comprehensive loss from discontinued operations				(162,260	)		(1,082,991	)
Net and total comprehensive loss			$	(1,070,706	)	$	(4,214,571	)
Net and total comprehensive income (loss) attributable to:
	Shareholders		$	(1,974,287	)	$	(4,833,265	)
	Non-controlling interest			903,581			618,694
			$	(1,070,706	)	$	(4,214,571	)
Earnings per share
	Basic, loss per share			(0.02	)		(0.06	)
	Diluted, loss per share			(0.02	)		(0.06	)

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 September 30, 2015, Agility Health operates 85 outpatient or onsite rehabilitation locations in 14 states.

Agility Health's contract therapy services business provides rehabilitative services to 31 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.

Neither 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.