Medical Facilities Corporation Announces 2025 First Quarter Results

May 08 2025 12:00 BST

TORONTO , May 8, 2025 /CNW/ - Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the first quarter ended March 31, 2025. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q1 2025 Highlights
(For continuing operations¹ compared to Q1 2024)

Facility service revenue, despite having one less surgical day, remained relatively flat at $81.7 million.
Surgical cases increased by 2.2%.
Income from operations was flat year-over-year at $13.0 million.
EBITDA² increased 0.7% to $17.3 million.
Returned $44.3 million to shareholders through the purchase of 3,374,313 common shares through its substantial issuer bid ("SIB") and an additional 182,600 common shares under its normal course issuer bid ("NCIB").
Consolidated cash balance at quarter end remained very strong at $65.7 million.

"Despite recent economic uncertainty, our first quarter results were on par with the strong first quarter we had a year ago," said Jason Redman, President and CEO of Medical Facilities. "However, it's worth noting that the first quarter of last year benefited from an extra surgical day due to the leap year. Regardless, the biggest highlight of the quarter was the continued return of capital to our shareholders, having returned $42.3 million of our proceeds from the sale of Black Hills Surgical Hospital through our SIB. Under the SIB, we purchased and cancelled 3,374,313 common shares, equal to approximately 14.7% of MFC's issued and outstanding common shares prior to the SIB. In addition, we also purchased 182,600 common shares under our NCIB."

Financial Results from Continuing Operations	For the three months ended March 31
(thousands of U.S. dollars, except per share amounts and where otherwise noted)	2025	2024	% Change
Facility service revenue	81,714	81,975	(0.3 %)
Operating expenses, before non-cash share-based compensation charges	68,523	68,423	0.1 %
Non-cash share-based compensation charges	190	527	(63.9 %)
Income from operations	13,001	13,025	(0.2 %)
Finance costs (changes in values of derivative instruments and gain/loss on foreign currency)	4,360	7,277	(40.1 %)
Finance costs (net interest expense)	(18)	1,150	(101.6 %)
Income tax recovery	(321)	(151)	(112.6 %)
Net income from continuing operations³	8,980	4,749	89.1 %
Earnings (loss) per share
Basic	$0.17	($0.01)	1,800.0 %
Diluted	$0.17	($0.01)	1,800.0 %

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 from Continuing Operations to EBITDA	For the three months ended March 31
(thousands of U.S. dollars, except where otherwise noted)	2025	2024	% Change
Net income from continuing operations	8,980	4,749	89.1 %
Income tax recovery	(321)	(151)	(112.6 %)
Finance costs	4,342	8,427	(48.5 %)
Depreciation and amortization	4,268	4,122	3.5 %
EBITDA	17,269	17,147	0.7 %

Distributable Cash Flow	For the three months ended March 31
(thousands of dollars, except per share amounts and where otherwise noted)	2025	2024	% Change
Cash available for distribution² (C$)	9,091	9,506	(4.4 %)
Distributions (C$)	1,752	1,970	(11.1 %)
Distributions per common share (C$)	0.079	0.080	(1.3 %)
Payout ratio²	19.3 %	20.7 %	(6.8 %)

During the quarter, MFC paid a quarterly cash dividend of C$0.09 per common share (or C$0.36 per share on an annualized basis), which represented an annualized yield of 2.15% on the March 31, 2025, closing price of C$16.71 per common share.

On March 31, 2025, MFC had consolidated net working capital of $35.9 million and cash and cash equivalents of $65.7 million compared to net working capital of $76.4 million and cash and cash equivalents of $108.5 million as at December 31, 2024. The change in consolidated net working capital was mainly due to the completion of the SIB during the quarter, resulting in a decrease in cash and cash equivalents.

MFC's financial statements and management's discussion and analysis, for the three-month period ended March 31, 2025, will be filed on SEDAR+ at www.sedarplus.ca on Thursday, May 8, 2025, and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Notice of Conference Call

Management of MFC will host a conference call today, May 8, 2025, at 8:30 am ET to discuss its first quarter financial results. All interested parties may join the conference call by dialing 1-888-699-1199 approximately 15 minutes prior to the call to secure a line. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4iVRm1P to receive an instant automated call back.

A live audio webcast of the call will be available at https://app.webinar.net/o8VYjxz7Bgk. Please connect at least 15 minutes prior to the 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 Medical Facilities

Medical Facilities, in partnership with physicians, owns a portfolio of highly rated, high-quality surgical facilities in the United States. Medical Facilities' ownership includes controlling interests in three specialty surgical hospitals located in Arkansas, Oklahoma, and South Dakota, and an ambulatory surgery center ("ASC") located in California. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ASC specializes in outpatient surgical procedures, with patient stays of less than 24 hours. For more information, please visit www.medicalfacilitiescorp.ca.

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 Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements, except as required by applicable law; such statements speak only as of the date made.

¹ Continuing operations is defined as consolidated operations excluding Black Hills Surgical Hospital, LLP, which was treated as discontinued operations in the financial results for the first quarter ended March 31, 2024.

² EBITDA, cash available for distribution, and payout ratio are non-IFRS financial measures. While Medical Facilities believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRSAccounting Standards, are unlikely to be comparable to similar measures presented by other issuers and should not be considered as alternatives to comparable measures determined in accordance with IFRSAccounting Standards. For further information on these non-IFRS financial measures, including a reconciliation of each of these non-IFRS financial measures to the most directly comparable measure calculated in accordance with IFRS Accounting Standards, please refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca.

³ Net income is attributable to the owners of the Corporation and the non-controlling interest holders.

SOURCE Medical Facilities Corporation

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