Andlauer Healthcare Group Reports 2023 Fourth Quarter and Full Year Results
- Revenue totaled
$169.1 million , an increase of 2.0% from$165.8 million for the three-month period endedDecember 31, 2022 ("Q4 2022"); - Operating income was
$28.0 million , compared to$28.2 million in Q4 2022; - Net income totaled
$18.6 million , or$0.44 per share (diluted), compared to$19.8 million , or$0.46 per share (diluted), in Q4 2022; - Total comprehensive income was
$13.5 million , compared to$17.1 million in Q4 2022; - EBITDA totaled
$44.8 million , compared to$44.7 million in Q4 2022; and - EBITDA Margin was 26.5%, compared to 27.0% in Q4 2022.
- Revenue totaled
$648.0 million , compared to$648.4 million in the year endedDecember 31, 2022 ("Fiscal 2022"); - Operating income was
$96.1 million , compared to$110.3 million in Fiscal 2022; - Net income was
$66.1 million , or$1.55 per share (diluted), compared to$76.3 million , or$1.79 per share in Fiscal 2022; - Total comprehensive income was
$60.7 million , compared to$91.0 million in Fiscal 2022; - EBITDA totaled
$163.8 million , compared to$174.5 million in Fiscal 2022; - EBITDA Margin was 25.3%, compared to 26.9% in Fiscal 2022; and
- During Fiscal 2023, less than 1.0% of total revenue was derived from AHG clients that are involved in the Canadian supply of COVID-19 vaccines, compared with approximately 3.0% in Fiscal 2022 and approximately 4.0% in Fiscal 2021.
"As expected, our results for the fourth quarter reflect a return to positive revenue growth in each of our product lines, except for our packaging solutions, and a strong EBITDA margin of 26.5%. While we experienced a year-over-year decline in our
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Three months
ended |
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Year ended
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($CAD 000s, except per share amounts) |
2023 |
2022 |
Variance |
2023 |
2022 |
Variance |
Revenue |
|
|
|
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|
Logistics and distribution |
40,851 |
37,911 |
7.8 % |
159,168 |
155,575 |
2.3 % |
Packaging solutions |
3,269 |
3,925 |
(16.7) % |
16,761 |
21,290 |
(21.3) % |
Healthcare Logistics segment |
44,120 |
41,836 |
5.5 % |
175,929 |
176,865 |
(0.5) % |
Ground transportation |
113,607 |
113,057 |
0.5 % |
429,174 |
422,236 |
1.6 % |
Air freight forwarding |
8,013 |
7,549 |
6.1 % |
30,595 |
34,383 |
(11.0) % |
Dedicated and last mile delivery |
18,324 |
17,354 |
5.6 % |
68,821 |
66,896 |
2.9 % |
Intersegment revenue |
(14,997) |
(14,024) |
6.9 % |
(56,567) |
(51,957) |
8.9 % |
Specialized Transportation segment |
124,947 |
123,936 |
0.8 % |
472,023 |
471,558 |
0.1 % |
Total revenue |
169,067 |
165,772 |
2.0 % |
647,952 |
648,423 |
(0.1) % |
Operating expenses |
141,023 |
137,606 |
2.5 % |
551,899 |
538,078 |
2.6 % |
Operating income |
28,044 |
28,166 |
(0.4) % |
96,053 |
110,345 |
(13.0) % |
Net income |
18,561 |
19,824 |
(6.4) % |
66,140 |
76,275 |
(13.3) % |
Foreign currency translation adjustment |
(5,021) |
(2,772) |
N/A |
(5,448) |
14,743 |
N/A |
Total comprehensive income |
13,540 |
17,052 |
(20.6) % |
60,692 |
91,018 |
(33.3) % |
Earnings per share – basic |
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( |
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( |
Earnings per share – diluted |
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( |
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( |
Select financial metrics |
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EBITDA¹ |
44,773 |
44,684 |
0.2 % |
163,793 |
174,469 |
(6.1) % |
EBITDA Margin¹ |
26.5 % |
27.0 % |
(50 bps) |
25.3 % |
26.9 % |
(160 bps) |
Consolidated revenue for Q4 2023 increased by 2.0% to
Revenue for the healthcare logistics segment totaled
The increase in logistics and distribution revenue was primarily attributable to a reclassification of approximately
Revenue in the specialized transportation segment totaled
Ground transportation revenue for Q4 2023 was
The
Cost of transportation and services was $85.8 million, or 50.7% of revenue, compared with $86.3 million, or 52.1% of revenue, for Q4 2022. Lower fuel costs in line with decreases in revenue related to fuel prices were largely offset by increased costs of transportation and services attributable to organic growth in the Company's Canadian ground transportation network.
Direct operating expenses were
Selling, general and administrative ("SG&A") expenses were
Operating income totaled
Net income was
Total comprehensive income was
Earnings before interest, taxes, depreciation and amortization ("EBITDA")¹ totaled
Consolidated revenue for Fiscal 2023 totaled
Operating income for Fiscal 2023 was
Net income for Fiscal 2023 totaled
EBITDA for Fiscal 2023 decreased by 6.1% to
The Company paid a dividend (encompassing the period from
Subject to financial results, capital requirements, available cash flow, corporate law requirements and any other factors that AHG's Board of Directors may consider relevant, it is the Company's intention to declare a quarterly dividend of
On
As at
AHG's audited consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for Fiscal 2023 are available on the Company's website at www.andlauerhealthcare.com and under AHG's profile on SEDAR+ at www.sedarplus.ca.
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AHG is a leading and growing supply chain management company offering a robust platform of customized third-party logistics ("3PL") and specialized transportation solutions for the healthcare sector. The Company's 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. AHG's specialized transportation services in
This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information may relate to the Company's future financial outlook and anticipated events or results and may include information regarding the Company's financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans, objectives and expectations with respect to COVID-19. Particularly, information regarding the Company's growth expectations, performance, achievements, payment of dividends, prospects, potential acquisitions, financial targets or outlook is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", "commencing" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, targets, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Cautionary Note Regarding Forward-Looking Information" in the Company's MD&A for Fiscal 2023. Forward-looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to factors discussed under the heading "Risk Factors" in the Company's annual information form dated
This news release contains certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. AHG uses non-IFRS measures including "EBITDA" and "EBITDA Margin". These non-IFRS measures are used to provide investors with supplemental measures of the Company's operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. AHG also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. AHG management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation.
EBITDA
AHG defines EBITDA as net income for the period before: (i) income tax expense (recovery); (ii) interest income; (iii) interest expense; and (iv) depreciation and amortization.
AHG believes EBITDA is a useful measure to assess the Company's financial performance because it provides a more relevant picture of operating results by excluding the effects of expenses that are not reflective of the Company's underlying business performance.
EBITDA Margin
AHG defines EBITDA Margin as EBITDA divided by revenue. EBITDA Margin represents a measure of the Company's profitability expressed as a percentage of revenue.
AHG believes EBITDA Margin is a useful measure to assess the Company's financial performance because it helps quantify the Company's ability to convert revenues generated from clients into EBITDA.
Reconciliation of EBITDA
($CAD 000s) |
Three Months Ended |
Year Ended |
|||
|
2023 |
2022 |
2023 |
2022 |
2021 |
Net income |
18,561 |
19,824 |
66,140 |
76,275 |
89,954 |
Income tax expense |
7,185 |
6,934 |
24,467 |
27,483 |
18,486 |
Interest expense |
2,476 |
1,867 |
8,207 |
6,858 |
6,219 |
Interest income |
(770) |
(396) |
(3,170) |
(599) |
(198) |
Depreciation and amortization |
17,321 |
16,455 |
68,149 |
64,452 |
42,716 |
EBITDA1 |
44,773 |
44,684 |
163,793 |
174,469 |
157,177 |
Gain on step acquisition of equity-accounted investee |
- |
- |
- |
- |
(37,921) |
EBITDA1 excluding gain on step acquisition |
44,773 |
44,684 |
163,793 |
174,469 |
119,256 |
SOURCE