Medical Facilities Corporation Announces First Quarter Results and 11.8% Dividend Increase
Q1 2024 Highlights
(Compared to Q1 2023 and excluding the divested
- Facility service revenue increased 4.5% to
$108.3 million - Surgical cases increased by 4.3%
- Income from operations increased 29.6% to
$17.5 million - EBITDA1 increased 19.0% to
$22.3 million - Repaid
$5.0 million on its corporate credit facility - Returned an additional
$1.8 million to shareholders through the purchase of 253,900 common shares under its normal course issuer bid ("NCIB")
"We had a solid first quarter with our surgical hospitals achieving higher revenues on increased surgical case volumes," said
"We are also pleased to announce an 11.8% increase in our quarterly dividend. The increase reflects the sustained solid cash flow and operating performance of the business, and further demonstrates our commitment to delivering shareholder returns and enhancing shareholder value."
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Financial Results |
For the three months ended
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(thousands of |
2024 |
2023 |
% Change |
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Facility service revenue |
108,258 |
109,250 |
(0.9 %) |
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Operating expenses |
90,856 |
95,745 |
(5.1 %) |
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Income from operations |
17,402 |
13,505 |
28.9 % |
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Finance costs (changes in values of |
7,277 |
551 |
1,220.7 % |
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Finance costs (net interest expense) |
1,287 |
1,636 |
(21.3 %) |
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Income tax expense |
377 |
1,652 |
(77.2 %) |
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Net income2 |
8,461 |
9,666 |
(12.5 %) |
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Earnings per share |
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Basic |
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(58.8 %) |
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Diluted |
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(58.8 %) |
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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 to |
For the three months ended
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(thousands of |
2024 |
2023 |
% Change |
Net income |
8,461 |
9,666 |
(12.5 %) |
Income tax expense |
377 |
1,652 |
(77.2 %) |
Finance costs |
8,564 |
2,187 |
291.6 % |
Depreciation and amortization |
4,874 |
5,640 |
(13.6 %) |
EBITDA |
22,276 |
19,145 |
16.4 % |
Distributable Cash Flow |
For the three months ended
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(thousands of dollars, except per share |
2024 |
2023 |
% Change |
Cash available for distribution1 (C$) |
8,777 |
5,583 |
57.2 % |
Distributions (C$) |
1,970 |
2,053 |
(4.0 %) |
Distributions per common share (C$) |
0.08 |
0.08 |
- |
Payout ratio1 |
22.4 % |
36.9 % |
(39.3 %) |
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 period ended
Dividend Increase
The Board of Directors has approved an 11.8% increase to the Corporation's quarterly dividend to CAD$0.09 per common share commencing with the second quarter dividend payable to the shareholders of record at the close of business on June 28, 2024. The Corporation believes that the new dividend rate is sustainable given its operations and cash available for distribution.
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/MFC2024Q1. 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.
About
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, cash available for distribution, and payout ratio are non-IFRS financial measures. While |
2 Net income is attributable to the owners of the Corporation and the non-controlling interest holders. |
SOURCE