NEUPATH HEALTH REPORTS FIRST QUARTER 2025 RESULTS
-
Record total revenue of
$19.3 million , up 11% year-over-year -
Positive cash flows, with Adjusted EBITDA(1) of
$1.3 million , up 49% year-over-year, and our 25th consecutive quarter of positive Adjusted EBITDA - Secured new credit facilities to drive growth and to refinance existing debt
-
On
May 1 ,Stephen Lemieux assumed the role of President to lead the implementation of NeuPath’s strategic initiatives
“Strong organic growth in
Financial and Operational Highlights
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Total revenue was
$19.3 million for the three months endedMarch 31, 2025 compared to$17.5 million for the three months endedMarch 31, 2024 , up 11% compared to the first quarter of 2024, delivering record first quarter revenues; -
Adjusted EBITDA was
$1.3 million for the three months endedMarch 31, 2025 compared to$0.9 million for the three monthsMarch 31, 2024 , up 49% year-over-year; -
For the three months ended
March 31, 2025 , capacity utilization improved to 75%, up from 72% in the first quarter of 2024; -
On
March 26, 2025 , the Company secured new credit facilities from the National Bank of Canada providing an aggregate of up to$13.5 million in loans, comprised of a (i)$4.0 million revolving credit facility, (ii)$3.0 million non-revolving delayed draw term loan facility, and (iii)$6.5 million non-revolving term loan facility; -
As at
March 31, 2025 , the Company had$4.4 million in cash and cash equivalents and interest-bearing long-term debt of$6.5 million ; -
On
May 1, 2025 ,Stephen Lemieux assumed the newly created role of President to lead the implementation of NeuPath’s strategy to accelerate inorganic and organic growth and optimize operating margins; and - The Company anticipates the receipt of a potentially material one-time positive payment in Q2 of 2025 relating to prior period physician reimbursements.
(1) |
Non-International Financial Reporting Standard (“IFRS”) and Other Financial Measures defined by the Company below. |
Q1 2025 Financial Results
Total Revenue
Total revenue is comprised of clinic revenue and non-clinic revenue. Total revenue was
Clinic Revenue
Clinic revenue is generated through the provision of medical services to patients. Clinic revenue was
Non-clinic Revenue
Non-clinic revenue was
Gross margin % was 18.8% for the three months ended
Adjusted EBITDA was
Liquidity and Capital Resources
As at
For more information see Note 5, Long-Term Debt in the Company’s Condensed Consolidated Interim Financial Statements for the three months ended
Issuance of Stock Options and Restricted Share Units
The Company has approved the grant of 375,000 Options to an officer of the Company, to be issued on
In addition, the Company approved the grant of 375,000 RSUs to the same officer of the Company, to be issued on
Non-IFRS Financial and Other Measures
The Company discloses non-IFRS measures (such as EBITDA, Adjusted EBITDA, and gross margin) and non-IFRS ratios (such as gross margin %) that do not have standardized meanings prescribed by International Financial Reporting Standards (“IFRS”). The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company’s financial performance. Non-IFRS financial measures and other measures do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other reporting issuers and therefore unlikely to be comparable to similar measures presented by other companies. Furthermore, these non-IFRS measures and other measures should not be considered in isolation or as a substitute for measures of performance or cash flows as prepared in accordance with IFRS. These measures should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS.
EBITDA and Adjusted EBITDA
EBITDA refers to net income (loss) determined in accordance with IFRS, before depreciation and amortization, net interest expense (income) and income tax expense (recovery). The Company defines Adjusted EBITDA, as EBITDA, excluding stock-based compensation expense, executive long-term performance and retention bonus, restructuring costs, gain on derecognition of other obligations, fair value adjustments, transaction costs, impairment charges, gain on sale of building, government loans forgiveness, finance income and loss or gain on sale of property, plant and equipment. Management believes EBITDA and Adjusted EBITDA are useful supplemental non-GAAP measures to determine the Company’s ability to generate cash available for operations, working capital, capital expenditures, debt repayments, interest expense and income taxes.
The following table provides a reconciliation of net and comprehensive loss to EBITDA and Adjusted EBITDA:
|
Three months ended
|
Three months ended
|
||
|
$ |
$ |
||
Net and comprehensive loss |
(327) |
(344) |
||
Add back: |
|
|
||
Depreciation and amortization |
597 |
581 |
||
Interest cost |
296 |
239 |
||
Income tax expense |
133 |
57 |
||
EBITDA |
699 |
533 |
||
Add back: |
|
|
||
Stock-based compensation |
43 |
34 |
||
Transaction costs |
353 |
284 |
||
Executive long-term performance and retention bonus |
175 |
- |
||
Adjusted EBITDA |
1,270 |
851 |
||
Attributed to: |
|
|
||
Shareholders of |
1,133 |
797 |
||
Non-controlling interest |
137 |
54 |
||
|
1,270 |
851 |
Gross Margin and Gross Margin %
Management believes gross margin and gross margin % are important supplemental non-GAAP measures for evaluating operating performance and to allow for operating performance comparability from period-to-period. Gross margin is calculated as total revenue minus cost of medical services (”COMS”). Gross margin % is calculated as gross margin divided by total revenue.
The following table provides a reconciliation of total revenue to gross margin:
|
Three months ended
|
Three months ended
|
||
|
$ |
$ |
||
Clinic revenue |
18,046 |
16,168 |
||
Non-clinic revenue |
1,289 |
1,318 |
||
Total revenue |
19,335 |
17,486 |
||
Cost of medical services |
15,695 |
14,253 |
||
Gross margin (1) |
3,640 |
3,233 |
||
Gross margin % (1) |
18.8% |
18.5% |
(1) |
Gross margin and gross margin % are non-IFRS measures. Please refer to Non-IFRS Financial Measures above. |
For further details on the results, please refer to NeuPath’s Management, Discussion and Analysis and Condensed Consolidated Interim Financial Statements for the three months ended
About NeuPath
NeuPath operates a network of healthcare clinics and related businesses focused on improved access to care and outcomes for patients by leveraging best-in-class treatments and delivering patient-centered multidisciplinary care. We operate a network of medical clinics in
Forward-Looking Statements
This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the Company’s expectation of continued operational improvements in 2025 and the execution of the Company’s growth opportunities are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations included in this news release include, among other things, adverse market conditions, risks associated with obtaining and maintaining the necessary governmental permits and licenses related to the business of the Company, increasing competition in the market and other risks generally inherent in the chronic pain, sports medicine, concussion and workplace health services markets. A comprehensive discussion of these and other risks and uncertainties can be found in the Company’s Annual Information Form dated
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
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For more information, please contact:
Chief Financial Officer
info@neupath.com
(905) 858-1368
Source: