GREENBROOK TMS REPORTS FIRST QUARTER OPERATIONAL AND FINANCIAL RESULTS
FIRST QUARTER 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Despite the closure of mental health service centers ("Treatment Centers") in connection with the Company's previously-announced comprehensive restructuring plan (the "Restructuring Plan") and the impact of patient billing and collections disruptions resulting from the ransomware cyberattack on
Change Healthcare Solutions LLC ("Change Healthcare ") that affected the broader healthcare industry, quarterly revenue decreased by only 7% to$18.0 million , down$1.3 million as compared to the first quarter of 2023 ("Q1 2023"). - Regional operating loss increased by 401% in Q1 2024 to
$2.5 million , up$2.0 million as compared to Q1 2023, due to the reduction in revenue, increase in marketing spend and investments in the Company's cost structure associated with the continued rollout of its Spravato® (esketamine nasal spray) ("Spravato®") offering in Q1 2024. - Loss for the period and comprehensive loss increased by 36% in Q1 2024 to
$14.5 million , up$3.9 million as compared to Q1 2023, due to the increase in regional operating loss and the increase in interest expense arising from additional debt financings completed subsequent to Q1 2023. - The Company continued its roll-out of its Spravato® offering at select Treatment Centers to diversify its offering to patients. The Company has expanded its Spravato® offering to 84 Treatment Centers to date.
- The Company continued its pilot program to roll-out the facilitation of medication management and began a pilot program to roll-out talk therapy at select Treatment Centers. The Company believes that these programs will allow it to reach patients earlier in their treatment journey, develop an internal patient pipeline for transcranial magnetic stimulation ("TMS") and Spravato® treatments, while also further optimizing marketing costs. The Company has expanded its medication management offering to nine Treatment Centers to date and its talk therapy program to Treatment Centers within
Florida andMissouri .
"Despite the impact of the patient billing and collections disruptions resulting from
SELECTED FIRST QUARTER FINANCIAL AND OPERATING RESULTS (1)
Selected Financial Results
(unaudited) ($) |
Q1 2024 |
|
Q1 2023 |
Total revenue |
18,012,190 |
|
19,304,461 |
Regional operating loss |
(2,491,800) |
|
(497,505) |
Loss before income taxes |
(14,540,145) |
|
(10,660,136) |
Loss for the year and comprehensive loss |
(14,540,145) |
|
(10,660,136) |
Loss attributable to the common shareholders of Greenbrook |
(14,218,296) |
|
(10,591,310) |
Net loss per share (basic and diluted) |
(0.32) |
|
(0.34) |
________ |
|
(1) |
Please note that additional selected consolidated financial information can be found at the end of this press release. |
Selected Operating Results
|
As at |
|
As at |
||
(unaudited) |
2024 |
|
2023 |
|
2023 |
Number of active Treatment Centers(1) |
130 |
|
162 |
|
130 |
Number of Treatment Centers-in-development(2) |
– |
|
– |
|
– |
Total Treatment Centers |
130 |
|
162 |
|
130 |
Number of management regions |
17 |
|
18 |
|
17 |
Number of TMS Devices installed |
260 |
|
341 |
|
260 |
Number of regional personnel |
400 |
|
406 |
|
391 |
Number of shared-services / corporate personnel(3) |
108 |
|
124 |
|
98 |
Number of providers(4) |
192 |
|
222 |
|
205 |
Number of consultations performed(5) |
9,174 |
|
7,975 |
|
34,124 |
Number of patient starts(5) |
2,448 |
|
2,854 |
|
10,401 |
Number of Treatments performed(5) |
75,764 |
|
92,533 |
|
343,790 |
Average revenue per Treatment(5) |
|
|
|
|
|
________ |
|
(1) |
Active Treatment Centers represent Treatment Centers that have performed billable treatment services during the applicable period. |
(2) |
Treatment Centers-in-development represents Treatment Centers that have committed to a space lease agreement and the development process is substantially complete. |
(3) |
Shared-services / corporate personnel is disclosed on a full-time equivalent basis. The Company utilizes part-time staff and consultants as a means of managing costs. |
(4) |
Number of providers represents clinician partners that are involved in the provision of treatment services from our Treatment Centers. |
(5) |
Figure calculated for the applicable year or period ended. |
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(US$) (unaudited) |
Q1 2024 |
|
Q1 2023 |
Total revenue |
18,012,190 |
|
19,304,461 |
|
|
|
|
Direct center and patient care costs |
13,158,183 |
|
13,758,220 |
Regional employee compensation |
5,515,743 |
|
4,665,645 |
Regional marketing expense |
1,516,824 |
|
413,053 |
Depreciation |
313,240 |
|
965,048 |
Total direct center and regional costs |
20,503,990 |
|
19,801,966 |
Regional operating loss |
(2,491,800) |
|
(497,505) |
Center development costs |
124,444 |
|
112,191 |
Corporate employee compensation |
3,936,881 |
|
4,141,089 |
Corporate marketing expenses |
33,035 |
|
5,322 |
Financing costs |
149,242 |
|
235,094 |
Other corporate, general and administrative expenses |
3,560,556 |
|
2,897,066 |
Share-based compensation |
25,302 |
|
62,948 |
Amortization |
16,548 |
|
16,548 |
Interest expense |
4,202,402 |
|
2,692,418 |
Interest income |
(65) |
|
(45) |
Loss before income taxes |
(14,540,145) |
|
(10,660,136) |
Income tax expense |
– |
|
– |
Loss for the period and comprehensive loss |
(14,540,145) |
|
(10,660,136) |
Loss attributable to non-controlling interest |
(321,849) |
|
(68,826) |
Loss attributable to the common shareholders of Greenbrook |
(14,218,296) |
|
(10,591,310) |
Net loss per share (basic and diluted) |
(0.32) |
|
(0.34) |
This press release is intended to be read in conjunction with the Company's Form 10-Q for the three-month period ended
Operating through 130 Company-operated Treatment Centers, Greenbrook is a leading provider of TMS and Spravato®, FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder ("MDD") and other mental health disorders, in
Cautionary Note Regarding Forward-Looking Information
Certain information in this press release, including, but not limited to, information with respect to the Company's future financial or operating performance, the Company's expectations regarding the impact of the Restructuring Plan on our business, and the continued roll-out of the Spravato®, medication management and talk therapy offerings at additional Treatment Centers and its potential to enhance profit margins and diversify total revenue, constitute forward-looking information within the meaning of applicable securities laws in
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: macroeconomic factors such as inflation and recessionary conditions, substantial doubt regarding the Company's ability to continue as a going concern due to recurring losses from operations; inability to increase cash flow and/or raise sufficient capital to support the Company's operating activities and fund its cash obligations, repay indebtedness and satisfy the Company's working capital needs and debt obligations; prolonged decline in the price of the common shares of the Company ("Common Shares") reducing the Company's ability to raise capital; inability to satisfy debt covenants under the Company's credit facility and the potential acceleration of indebtedness; risks related to the ability to continue to negotiate amendments to the Company's credit facility to prevent a default; risks relating to the Company's ability to deliver and execute on the Restructuring Plan and the possible failure to complete the Restructuring Plan on terms acceptable to the Company or its suppliers (including Neuronetics, Inc.), or at all; risks relating to maintaining an active, liquid and orderly trading market for the Common Shares as a result of our delisting from trading on the Nasdaq Capital Market of the
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