Medical Facilities Corporation Announces 2023 Fourth Quarter and Year-End Results
Q4 2023 Highlights
(Compared to Q4 2022 and excluding the divested
- Facility service revenue increased 7.8% to
$122.2 million - Surgical cases increased by 4.9%
- Income from operations, excluding the prior year impairment charge, increased 144.0% to
$25.6 million - Adjusted EBITDA1 increased 97.3% to
$30.5 million - The Corporation repaid
$8.0 million on its corporate credit facility and returned an additional$2.0 million to shareholders through the purchase of 299,800 of its common shares under its normal course issuer bid ("NCIB")
"Our surgical volumes were up in the quarter, helping drive higher revenue and profitability, and finishing off a strong year overall for MFC," said
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Financial Results |
For the three months ended
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For the year ended
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(thousands of |
2023 |
2022 |
% change |
2023 |
2022 |
% change |
Facility service revenue |
122,265 |
119,434 |
2.4 % |
445,582 |
424,551 |
5.0 % |
Government stimulus income, net of |
- |
(12,335) |
100.0 % |
- |
(10,162) |
100.0 % |
Revenue and other income |
122,265 |
107,099 |
14.2 % |
445,582 |
414,389 |
7.5 % |
Operating expenses, before |
96,755 |
97,177 |
(0.4 %) |
378,473 |
362,901 |
4.3 % |
Impairment of goodwill, other |
- |
16,549 |
(100.0 %) |
- |
16,549 |
(100.0 %) |
Income from operations |
25,510 |
(6,627) |
484.9 % |
67,109 |
34,939 |
92.1 % |
Finance costs (changes in values |
732 |
(9,098) |
108.0 % |
10,010 |
(859) |
1,265.3 % |
Finance costs (net interest |
1,505 |
1,668 |
(9.8 %) |
6,156 |
5,731 |
7.4 % |
Impairment (gain) loss on loans |
- |
(1,394) |
100.0 % |
786 |
11,990 |
(93.4 %) |
Non-operating (gains) losses |
- |
303 |
(100.0 %) |
(2,167) |
574 |
(477.5 %) |
Income tax expense |
2,962 |
5,231 |
(43.4 %) |
8,325 |
5,208 |
59.9 % |
Net income (loss)2 |
20,311 |
(3,337) |
708.7 % |
43,999 |
12,295 |
257.9 % |
Earnings (loss) per share |
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Basic |
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( |
650.0 % |
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( |
586.7 % |
Diluted |
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( |
250.0 % |
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( |
586.7 % |
Net income fluctuates significantly between the periods, primarily due to variations in non-cash finance costs (change in the value of exchangeable interest liability) and income taxes; these charges are incurred at the corporate level rather than at the facility level.
Reconciliation of Net Income |
For the three months ended
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For the year ended
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(thousands of |
2023 |
2022 |
% change |
2023 |
2022 |
% change |
Net income (loss) |
20,311 |
(3,337) |
708.7 % |
43,999 |
12,295 |
257.9 % |
Income tax expense |
2,962 |
5,231 |
(43.4 %) |
8,325 |
5,208 |
59.9 % |
Non-operating (gains) losses |
- |
303 |
(100.0 %) |
(2,167) |
574 |
(477.5 %) |
Finance costs (income) |
2,237 |
(8,824) |
125.4 % |
16,952 |
16,862 |
0.5 % |
Depreciation and amortization |
5,024 |
5,359 |
(6.3 %) |
21,537 |
20,763 |
3.7 % |
EBITDA |
30,534 |
(1,268) |
2,508.0 % |
88,646 |
55,702 |
59.1 % |
Impairment of goodwill, other intangibles and equipment |
- |
16,549 |
(100.0 %) |
- |
16,549 |
(100.0 %) |
Adjusted EBITDA |
30,534 |
15,281 |
99.8 % |
88,646 |
72,251 |
22.7 % |
Distributable Cash Flow |
For the three months ended
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For the year ended
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(thousands of dollars, except per share |
2023 |
2022 |
% |
2023 |
2022 |
% |
Cash available for distribution1 (C$) |
12,769 |
9,900 |
29.0 % |
30,302 |
27,536 |
10.0 % |
Distributions (C$) |
1,991 |
2,086 |
(4.6 %) |
8,085 |
9,302 |
(13.1 %) |
Distributions per common share (C$) |
0.08 |
0.08 |
- |
0.32 |
0.32 |
- |
Payout ratio1 |
15.6 % |
21.2 % |
(26.4 %) |
26.7 % |
33.8 % |
(21.0 %) |
During the quarter, MFC paid a quarterly cash dividend of
On
MFC's financial statements and management's discussion and analysis, for the three-month and twelve-month periods ended
Notice of Conference Call
Management of MFC will host a conference call today,
A live audio webcast of the call will be available at https://bit.ly/MFC2023Q4. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on MFC's website following the call date.
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Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in
1
EBITDA, Adjusted EBITDA, cash available for distribution, and payout ratio are non-IFRS financial measures. While |
2 Net income (loss) is attributable to the owners of the Corporation and the non-controlling interest holders. |
SOURCE