Medical Facilities Corporation Announces 2024 Second Quarter Results
Q2 2024 Highlights
(Compared to Q2 2023 and excluding the divested
- Facility service revenue increased 2.4% to
$107.2 million - Surgical case volumes increased 2.8%
- Income from operations increased 21.0% to
$18.9 million when excluding non-controllable, non-cash corporate level charges related to share-based compensation plans - EBITDA1 increased 13.7% to
$23.8 million when excluding non-controllable, non-cash corporate level charges related to share-based compensation plans - Repaid
$5.0 million on its corporate credit facility - Returned an additional
$3.9 million to shareholders through the purchase of 421,800 common shares under its normal course issuer bid ("NCIB") - Subsequent to quarter end: Received forgiveness on Paycheck Protection Program ("PPP") loans of
$6.9 million relating to certain facilities
"In addition to favourable case and payor mixes, our facilities benefited from higher surgical case volumes, driving increases in income from operations and EBITDA during the quarter," said
Financial Results |
For the three months ended
|
For the six months ended
|
||||
(thousands of |
2024 |
2023 |
% |
2024 |
2023 |
% |
Facility service revenue |
107,175 |
109,488 |
(2.1 %) |
215,433 |
218,738 |
(1.5 %) |
Operating expenses |
89,198 |
93,936 |
(5.0 %) |
180,054 |
189,681 |
(5.1 %) |
Income from operations |
17,977 |
15,552 |
15.6 % |
35,379 |
29,057 |
21.8 % |
Finance costs (net interest expense) |
1,234 |
1,565 |
(21.2 %) |
2,521 |
3,201 |
(21.2 %) |
Finance costs (changes in values of |
10,277 |
3,756 |
173.6 % |
17,554 |
4,307 |
307.6 % |
Income tax expense (recovery) |
(178) |
1,002 |
(117.8 %) |
199 |
2,654 |
(92.5 %) |
Net income2 |
6,644 |
9,229 |
(28.0 %) |
15,105 |
18,895 |
(20.1 %) |
Earnings (loss) per share |
|
|
|
|
|
|
Basic |
( |
|
(115.4 %) |
|
|
(80.0 %) |
Diluted |
( |
|
(115.4 %) |
|
|
(80.0 %) |
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 June 30 |
For the six months ended June 30 |
||||
(thousands of |
2024 |
2023 |
% |
2024 |
2023 |
% |
Net income |
6,644 |
9,229 |
(28.0 %) |
15,105 |
18,895 |
(20.1 %) |
Income tax expense (recovery) |
(178) |
1,002 |
(117.8 %) |
199 |
2,654 |
(92.5 %) |
Finance costs |
11,511 |
5,321 |
116.3 % |
20,075 |
7,508 |
167.4 % |
Depreciation and amortization |
4,891 |
5,673 |
(13.8 %) |
9,765 |
11,313 |
(13.7 %) |
EBITDA |
22,868 |
21,225 |
7.7 % |
45,144 |
40,370 |
11.8 % |
|
|
|
|
|
|
|
Distributable Cash Flow |
For the three months ended June 30 |
For the six months ended June 30 |
||||
(thousands of dollars, except per share |
2024 |
2023 |
% |
2024 |
2023 |
% |
Cash available for distribution1 (C$) |
8,165 |
6,582 |
24.1 % |
16,949 |
12,170 |
39.3 % |
Distributions (C$) |
2,164 |
2,027 |
6.8 % |
4,134 |
4,080 |
1.3 % |
Distributions per common share (C$) |
0.089 |
0.080 |
11.3 % |
0.169 |
0.160 |
5.6 % |
Payout ratio1 |
26.5 % |
30.8 % |
(14.0 %) |
24.4 % |
33.5 % |
(27.2 %) |
MFC declared a quarterly cash dividend of
On
MFC's financial statements and management's discussion and analysis, for the three-month and six-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/MFC2024Q2. Please connect at least 15 minutes prior to the call to allow 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, 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