Premier Health Reports 2024 Second Quarter Results
Press Release
MONTRÉAL, May 23, 2024– Premier Health of America Inc. (TSXV: PHA) (the “Corporation”), a leading Canadian Healthtech company, announces it has filed its Unaudited Quarterly Consolidated Financial Statements and MD&A for its second quarter ended on March 31st, 2024.
| Highlights | ||||||||
| (in thousands of Canadian dollars) | Mar. 31, 2024 (3 months) |
Mar. 31, 2023 (3 months) |
Mar. 31, 2024 (6 months) |
Mar. 31, 2023 (6 months) |
||||
| Revenues | 46,277 | 21,795 | 83,250 | 43,371 | ||||
| Gross margin (1) | 8,532 | 5,781 | 16,189 | 10,845 | ||||
| Gross margin as a % of revenues | 18.4 | % | 26.5 | % | 19.4 | % | 25.0 | % |
| Adjusted EBITDA (1) | 2,576 | 1,936 | 5,198 | 3,439 | ||||
| Net Income (Loss) | (1,531 | ) | 60 | (1,762 | ) | (316 | ) | |
(1) See the Corporation’s MD&A for details on these non-Gaap measures.
Summary
- First full quarter of contribution from Solutions Staffing (“SSI”).
- Adjusted EBITDA for the quarter was $2.6M ($1.9M for the same period in 2023), despite non-recurring costs of $1.4M, as described below.
- Net Loss for the quarter was $1.5M (income of $0.1M for the same period in 2023); resulting from the same non-recurring costs and higher financing costs.
Although the second quarter of 2024 benefitted from the first full quarter of contribution of SSI, it was also affected by several one-time costs. First, the Corporation recorded an additional amount of close to $0.5M in connection to the SSI transaction and transition, and another $0.5M was incurred for various legal fees. In addition, CHCA’s gross margin was adversely affected by a delay in activating its new contract with Indigenous Services Canada. Otherwise, the gross margins were in-line with expectations for the other agencies for the quarter.
The government of Quebec is moving forward with operationalizing Bill 10 and the new pricing is effective in April of 2024. To compensate the expected lower margins, PHA will be looking to increase its market share through more aggressive marketing campaigns, capturing staff from failed low-tech competitors, and capitalizing on its strong base and reputation. By leveraging technology, we also aim to reduce operating costs and streamline.
“Negotiations with the largest Quebec nurses’ union are still ongoing. The main roadblock remains the topic of flexibility requested by the government. The good news is that nurses who choose to work for staffing agencies like ours are mostly looking for such flexibility. It is only a question of time before the public system recognizes we are complementary. Meanwhile, we will continue our expansion program outside of Quebec,” said Martin Legault, CEO of Premier Health.
More information can be found in the Company’s quarterly financial statements and MD&A as available on sedarplus.ca.
About Premier Health
Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary LiPHe® platform to lead the healthcare services sector digital transformation to provide patients with faster, cheaper, and more accessible care services.
Non-GAAP Measures
Earnings before interest, taxes, depreciation, and amortization (“EBITDA”), is calculated as the net profit (loss), before non-recurring items excluding acquisition and transaction costs, non-cash expenses (including loss from disposal of assets, impairments, amortization, and depreciation), interest expense, net of interest income and income tax expense. Gross margin is either used as a number or a percentage. As a number, it means Revenues minus direct costs. When used as a percentage, it means the ratio of Revenues minus direct costs to Revenues. More detail can be found in PHA’s Management Discussion and Analysis.
For Further Information Please Contact:
| Mr. Jean-Robert Pronovost Vice President Corporate Development Premier Health of America Inc. jrpronovost@premierhealth.ca / 1 800 231 9916 |
Mr. Guy Daoust Chief Financial Officer Premier Health of America Inc. gdaoust@premierhealth.ca / 1 800 231 9916 |
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