Medical Facilities Corporation Reports Fourth Quarter and FY 2025 Results

Mar 12 2026 11:00 BST

TORONTO , March 12, 2026 /CNW/ - Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the fourth quarter and year ended December 31, 2025. All amounts are expressed in U.S. dollars unless indicated otherwise.

Highlights
(Note: The following comparisons to the fourth quarter and year ended December 31, 2024 are for continuing operations¹ and selected discontinued operations², which include the results from Oklahoma Spine Hospital, LLC ("OSH") and The Surgery Center of Newport Coast, LLC ("SCNC"), excluding government stimulus income, goodwill impairment, and non-controllable, non-cash corporate level charges related to share-based compensation plans.)

Facility service revenue increased 3.2% to $342.2 million for the year, including a 6.9% increase to $97.3 million for the quarter.
Income from operations increased 6.1% to $58.0 million for the year, including a 20.1% increase to $20.9 million for the quarter.
Adjusted EBITDA³ increased 3.1% to $73.7 million for the year, including a 12.0% increase to $24.4 million for the quarter.
Purchased 5,155,113 of the Corporation's common shares for a total consideration of $61.8 million under its normal course issuer bid and a substantial issuer bid in 2025.
Sold SCNC, receiving cash proceeds of $1.5 million for the Corporation's 51.0% ownership share.
Corporate cash balance of $34.2 million at year end.
Subsequent to year end: Sold OSH, receiving cash proceeds of $46.0 million for the Corporation's 64.0% ownership share.

"We had a strong finish to the year, with the fourth quarter delivering solid growth in facility service revenue, income from operations, and Adjusted EBITDA," said Jason Redman, President and CEO of Medical Facilities. "We also ended the year with the sale of SCNC and with negotiations well underway for the sale of OSH, which was completed subsequent to year end in January 2026. In 2025, we returned $61.8 million to shareholders by repurchasing more than 5.1 million common shares. With the sales of SCNC and OSH concluded, we are evaluating the best uses of the net proceeds, including additional share repurchases and/or making distributions to shareholders."

Financial Results

Financial Results from Continuing Operations ¹	For the three months ended December 31			For the year ended December 31
(thousands of U.S. dollars, except per share amounts and where otherwise noted)	2025	2024	% change	2025	2024	% change
Facility service revenue	75,105	69,149	8.6 %	254,166	246,088	3.3 %
Government stimulus income	-	-	-	-	7,285	(100.0 %)
Revenue and other income	75,105	69,149	8.6 %	254,166	253,373	0.3 %
Operating expenses, before non-cash share-based compensation charges	57,356	53,445	7.3 %	207,292	198,504	4.4 %
Non-cash share-based compensation charges	205	516	(60.3 %)	216	2,499	(91.4 %)
Income from operations	17,544	15,188	15.5 %	46,658	52,370	(10.9 %)
Finance costs (net interest expense)	552	359	53.8 %	1,322	3,191	(58.6 %)
Finance costs (changes in values of derivative instruments and gain/loss on foreign currency)	6,097	(17,501)	134.8 %	5,748	6,928	(17.0 %)
Income tax expense (recovery)	1,181	(4,394)	126.9 %	4,973	(6,014)	182.7 %
Net income⁴ from continuing operations	9,714	36,724	(73.5 %)	34,615	48,265	(28.3 %)
Earnings per share attributable to owners of the Corporation
Basic	$0.15	$1.32	(88.6 %)	$0.79	$1.17	(32.5 %)
Fully diluted	$0.15	$0.64	(76.6 %)	$0.79	$1.17	(32.5 %)

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 ³	For the three months ended December 31			For the year ended December 31
(thousands of U.S. dollars, except where otherwise noted)	2025	2024	% change	2025	2024	% change
Net income from continuing operations	9,714	36,724	(73.5 %)	34,615	48,265	(28.3 %)
Income tax expense (recovery)	1,181	(4,394)	126.9 %	4,973	(6,014)	182.7 %
Finance costs (income)	6,649	(17,142)	138.8 %	7,070	10,119	(30.1 %)
Depreciation and amortization	2,940	2,897	1.5 %	11,730	11,468	2.3 %
EBITDA	20,484	18,085	13.3 %	58,388	63,838	(8.5 %)

Distributable Cash Flow	For the three months ended December 31			For the year ended December 31
(thousands of dollars, except per share amounts and where otherwise noted)	2025	2024	% change	2025	2024	% change
Cash available for distribution³ (C$)	11,367	10,717	6.1 %	30,328	36,507	(16.9 %)
Distributions (C$)	1,608	2,072	(22.4 %)	6,708	8,321	(19.4 %)
Distributions per common share (C$)	0.089	0.089	-	0.344	0.347	(0.9 %)
Payout ratio³	14.1 %	19.4 %	(27.3 %)	22.1 %	22.8 %	(3.1 %)

Selected Financial Results from Continuing Operations and Selected Discontinued Operations ²	For the three months ended December 31			For the year ended December 31
(thousands of U.S. dollars, except where otherwise noted)	2025	2024	% change	2025	2024	% change
Facility service revenue
Continuing operations	75,105	69,149	8.6 %	254,166	246,088	3.3 %
Selected discontinued operations	22,239	21,928	1.4 %	88,010	85,441	3.0 %
Total	97,344	91,077	6.9 %	342,176	331,529	3.2 %

Income from operations, before government stimulus income, non-cash share-based compensation charges and goodwill impairment
Continuing operations	17,749	15,704	13.0 %	46,874	47,584	(1.5 %)
Selected discontinued operations	3,128	1,682	86.0 %	11,158	7,116	56.8 %
Total	20,877	17,386	20.1 %	58,032	54,700	6.1 %

Adjusted EBITDA, before government stimulus income and non-cash share-based compensation charges
Continuing operations⁵	20,689	18,601	11.2 %	58,604	59,052	(0.8 %)
Selected discontinued operations	3,674	3,146	16.8 %	15,092	12,396	21.7 %
Total	24,363	21,747	12.0 %	73,696	71,448	3.1 %

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 2.27% on the December 31, 2025 closing price of C$15.87 per common share.

On December 31, 2025, MFC had consolidated net working capital of $54.0 million, compared to $76.4 million on December 31, 2024. The change in consolidated net working capital compared to prior year was mainly due to the completion of the substantial issuer bid for $42.3 million in March 2025, resulting in a decrease in cash and cash equivalents, as well as the impact of classifying OSH's assets and liabilities as "Assets held for sale" under current assets and "Liabilities directly associated with assets held for sale" under current liabilities, respectively, in the Corporation's consolidated balance sheet as of December 31, 2025.

MFC's financial statements and management's discussion and analysis, for the three-month and twelve-month periods ended December 31, 2025, will be filed on SEDAR+ at www.sedarplus.ca on Thursday, March 12, 2026, 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, March 12, 2026, at 8:30 am ET to discuss its fourth quarter and full-year 2025 financial results. 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 call without operator assistance, you may register and enter your phone number at https://emportal.ink/4kj6UhC to receive an instant automated call back.

A live audio webcast of the call will be available at https://app.webinar.net/5dYBnVlJv78. Please connect 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.

About Medical Facilities

Medical Facilities, in partnership with physicians, owns two highly rated, high-quality surgical facilities in the United States. MFC's ownership includes controlling interests in two specialty surgical hospitals located in Arkansas and South Dakota. 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. 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 Oklahoma Spine Hospital, LLC, The Surgery Center of Newport Coast, LLC, Black Hills Surgical Hospital, LLP, and the MFC Nueterra ASCs, which were treated as discontinued operations in the financial results for the fourth quarter and year ended December 31, 2025 and 2024.

² Selected discontinued operations comprise certain Facilities treated as discontinued operations in the financial results, which were under the Corporation's controlling ownership for the full duration of the fourth quarter and year ended December 31, 2025 and 2024, namely Oklahoma Spine Hospital, LLC and The Surgery Center of Newport Coast, LLC.

³ EBITDA, Adjusted 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 IFRS, 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 IFRS. 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, please refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca .

⁴ Net income is attributable to the owners of the Corporation and the non-controlling interest holders.

⁵ For continuing operations, Adjusted EBITDA for the fourth quarter and year ended December 31, 2025 and 2024 is equal to EBITDA, given no impairment of goodwill related to continuing operations was recorded during these periods.

SOURCE Medical Facilities Corporation

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Medical Facilities Corporation Reports Fourth Quarter and FY 2025 Results