Premier Health Reports 2024 Third Quarter Results
Press Release
Montréal, Québec – August 21st, 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 third quarter ended on June 30th, 2024.
Highlights
| (in thousands of Canadian dollars) | June 30, 2024(3 months) | June 30, 2023(3 months) | June 30, 2024(9 months) | June 30, 2023(9 months) |
| Revenues | 41,482 | 23,614 | 124,732 | 66,985 |
| Gross margin (1) | 6,380 | 6,464 | 22,569 | 17,309 |
| Gross margin as a % of revenues | 15.3% | 27.3% | 18.0% | 25.8% |
| Adjusted EBITDA (1) | 367 | 2,715 | 5,565 | 6,154 |
| Impairment of Goodwill | 5500 | – | 5500 | – |
| Net Income Loss | (8,452) | 544 | (10,214) | 228 |
(1) See the Corporation’s MD&A for details on this non-Gaap measure.
Summary
- Adjusted EBITDA for the quarter was $0.4M ($2.7M for the same period in 2023), despite one-time costs of $0.8M, as described below.
- Net Loss for the quarter was $8.5M (income of $0.5M for the same period in 2023); resulting from the same one-time costs, an impairment of goodwill and higher financing costs.
The Per Diem segment was strongly impacted by the implementation of Quebec’s Bill 10 during this quarter. As a reminder, Bill 10 imposes capped tariffs and a series of restrictions for using independent labor in Quebec. Main drivers for the decrease were the government’s directives imposed onto healthcare institutions to stop using independent labor, and the lack of interest from professionals following a series of measures affecting their compensation. Such measures included pay cuts, elimination of overtime premiums and limited compensation for travel and accommodations, all of which are direct consequences of the new rules. As a result of lowered anticipations for that segment, the Corporation recorded an impairment loss of goodwill in an amount of $5.5M during this quarter.
The results were also affected by several one-time costs. First, the Corporation recorded an additional amount of $0.2M in connection with the Solutions Staffing transaction and transition. Second, another $0.3M was incurred for various legal fees. Finally, Code Bleu recorded an amount of $0.3M owed under various Quebec administrative rules.
Solutions Staffing had a great quarter with a total booking of 263,000 hours. CHCA’s new contract with Indigenous Services Canada was activated at the end of April, so its gross margin is recovering to historical levels. Over the next year we will aim to accelerate organic growth in Ontario.
“Our acquisition of Solutions Staffing last November will compensate for the lower volumes delivered by the Per Diem segment. As we move through the current turbulences, we will focus our efforts on the travel nurse segment and deploy cost reduction initiatives. The largest Quebec nurses’ union collective agreement has now been expired for more than 500 days. The main roadblock remains the topic of flexibility; our business model is exactly designed to address this. In time, the public system will recognize 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 LiPHeÒ platform to lead the digital transformation of the healthcare services sector, providing patients with faster, more affordable, and more accessible care.
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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