561 0 Kommentare Agility Health Reports Third Quarter 2017 Financial Results

GRAND RAPIDS, MICHIGAN--(Marketwired - Nov. 17, 2017) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health" or the "Company"), today reports its financial results for the nine-month period ended September 30, 2017. All amounts are expressed in U.S. dollars unless indicated otherwise.

During the third quarter of 2017 the Company experienced revenue growth of 19.4% relative to the third quarter 2016. The growth was the result of its normal operations and the acquisition of Medic Holdings Corp. ("Medic") in March 2017.

Financial and Operating Highlights for the Third Quarter

(All comparative figures are for the corresponding period of the prior year)

Revenues increased by $3.06 million to $18.84 million.

Revenue increased by 16.2% to $54.8 million for the three quarters ending September 30, 2017 compared to the same period of 2016.

Gross margin from operations for the third quarter was 22.9%, compared to 21.4% from a year ago.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations declined from $.7 million to $.5 million from the third quarter of 2017 compared to the third quarter of 2016, primarily driven results of Medic operations which are seasonally slower and less profitably during third quarter and one-time financial advisory fees.

Comprehensive loss for the third quarter ending September 30, 2017 increased to $(1.7) million or $(0.01) per share, compared with a loss of $(0.9) million or $(0.01) per share in the prior year, again driven in large measure by Medic's seasonal performance and non-recurring financial expenses.

"We continue to aggressively pursue all strategies to address the Company's capital structure. We also continue to work with our financial partners while pursuing those strategies," stated Pierre G. Gagnon, Agility Health's Interim Chief Executive Officer. "Although significant resources have been devoted to these efforts, we have also been able to continue to pursue our growth strategies in both the U.S. and Canada, including adding new clinics and contracts during the second half of 2017."


Selected Financial Information

AGILITY HEALTH, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2017 and December 31, 2016
(Expressed in US Dollars)
(Unaudited)

				September 30,			December 31,
				2017			2016
ASSETS

Current assets
	Cash			$	371,715		$	621,240
	Restricted cash				-			736,360
	Accounts and other receivables				7,728,071			6,712,871
	Inventory				1,738,441			-
	Prepaid expenses and other current assets				974,884			1,047,670
		Total current assets			10,813,111			9,118,141

Non-current assets
	Investments				86,025			86,025
	Property and equipment				1,808,263			984,859
	Intangible assets				12,977,655			11,081,330
	Goodwill				5,388,444			2,169,095
		Total non-current assets			20,260,387			14,321,309
			Total assets	$	31,073,498		$	23,439,450

LIABILITIES AND EQUITY (DEFICIT)

Current liabilities
	Accounts payable and accrued liabilities			$	10,002,686		$	10,296,199
	Lines of credit				5,187,304			4,187,931
	Note payable				1,000,000			-
	Convertible debentures payable				1,250,000			-
	Class B and C Unit Liability				20,100,000			20,100,000
	Class B and C Unit Embedded Derivative Liability				400,000			400,000
	Current portion of long-term debt				1,232,729			-
	Current portion of other long-term liabilities				1,130,968			445,488
		Total current liabilities			40,303,687			35,429,618

Non-current liabilities
	Convertible debentures payable				694,425			1,072,347
	Deferred income taxes				362,000			266,000
	Long-term debt				6,660,788			-
	Other non-current liabilities				1,009,555			1,015,873
		Total non-current liabilities			8,726,768			2,354,220

		Total liabilities			49,030,455			37,783,838

Equity (deficit)
	Share capital				12,428,623			9,537,239
	Contributed surplus				1,306,159			368,991
	Retained deficit				(33,137,914	)		(26,522,676	)
	Other comprehensive loss				(264,981	)		-
					(19,668,113	)		(16,616,446	)
	Non-controlling interest				1,711,156			2,272,058
		Total equity (deficit)			(17,956,957	)		(14,344,388	)

			Total liabilities and equity (deficit)	$	31,073,498		$	23,439,450


Selected Financial Information

AGILITY HEALTH, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS
Three months Ended September 30, 2017 and 2016
(Expressed in US Dollars)
(Unaudited)

			2017			2016

Net revenue			$	18,841,762		$	15,776,956

Cost of revenues
	Materials			776,708			-
	Salaries and benefits			11,584,962			10,585,934
	Contract labor			134,424			185,038
	Facility			1,078,273			1,043,435
	Supplies			256,456			186,467
	Depreciation and amortization			193,593			148,876
	Provision for bad debts			292,928			115,556
	Other			326,563			338,000
		Total cost of revenues		14,643,907			12,603,306

Gross margin				4,197,855			3,173,650

Selling, general and administrative expenses				4,243,777			2,950,850

Other income (expense)
	Interest expense			(1,532,496	)		(923,104	)
	Interest income			124			298
	Loss on disposal of equipment			(8,464	)		-
	Foreign currency adjustment			(2,330	)		(23	)
	Fair value adjustment on warrants and obligations			-			5,093
				(1,543,166	)		(917,736	)

Loss from continuing operations before income taxes				(1,589,088	)		(694,936	)

Provision for income taxes				32,000			-

Loss from continuing operations				(1,621,088	)		(694,936	)

Loss from discontinued operations, net of tax				(16,841	)		(173,892	)

Net loss				(1,637,929	)		(868,828	)

Other comprehensive loss, net of tax
	Foreign currency adjustment			142,304			-

Comprehensive loss			$	(1,780,233	)	$	(868,828	)

Comprehensive loss attributable to:
	Shareholders		$	(2,040,921	)	$	(1,147,083	)
	Non-controlling interest			260,688			278,255

			$	(1,780,233	)	$	(868,828	)
Earnings per share
	Basic, loss per share		$	(0.01	)	$	(0.01	)
	Diluted, loss per share		$	(0.01	)	$	(0.01	)


Selected Financial Information

AGILITY HEALTH, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS
Nine months Ended September 30, 2017 and 2016
(Expressed in US Dollars)
(Unaudited)

			2017			2016

Net revenue			$	54,815,065		$	47,182,608

Cost of revenues
	Materials			1,883,156			-
	Salaries and benefits			33,918,914			30,887,905
	Contract labor			487,010			689,816
	Facility			3,104,558			2,923,597
	Supplies			654,572			591,712
	Depreciation and amortization			544,652			467,057
	Provision for bad debts			725,344			491,167
	Other			928,818			1,005,691
		Total cost of revenues		42,247,024			37,056,945

Gross margin				12,568,041			10,125,663

Selling, general and administrative expenses				13,606,370			8,730,202

Other income (expense)
	Interest expense			(4,162,574	)		(3,068,170	)
	Interest income			244			14,191
	Gain on disposal of equipment			4,711			-
	Foreign currency adjustment			(17,544	)		94
	Fair value adjustment on warrants and obligations			22,823			332,975
				(4,152,340	)		(2,720,910	)

Loss from continuing operations before income taxes				(5,190,669	)		(1,325,449	)

Provision for income taxes				96,000			-

Loss from continuing operations				(5,286,669	)		(1,325,449	)

Loss from discontinued operations, net of tax				(443,135	)		(362,545	)

Net loss				(5,729,804	)		(1,687,994	)

Other comprehensive loss, net of tax
	Foreign currency adjustment			264,981			-

Comprehensive loss			$	(5,994,785	)	$	(1,687,994	)

Comprehensive loss attributable to:
	Shareholders		$	(6,880,219	)	$	(2,544,852	)
	Non-controlling interest			885,434			856,858

			$	(5,994,785	)	$	(1,687,994	)
Earnings per share
	Basic, loss per share		$	(0.05	)	$	(0.03	)
	Diluted, loss per share		$	(0.05	)	$	(0.03	)

About Agility Health

Through its U.S. subsidiary and principal operating entity, Agility Health, LLC, Agility Health operates a multi-state network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes and other institutional clients, providing care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions. In addition, Agility Health provides a number of ancillary services related to physical rehabilitation, including practice management software systems and custom orthotics. As of October 1, 2017, Agility Health operates 84 outpatient or onsite rehabilitation locations in 16 states. Agility Health's contract therapy services business provides rehabilitative services to 36 hospitals and inpatient rehabilitation units and 37 nursing homes, long-term care facilities and other service locations in 11 states.

In Canada, Medic Holdings Corp., Agility Health's primary Canadian subsidiary, operates twelve (12) foot care clinics and manufactures orthotics and prosthetics.

For more information, please visit www.agilityhealth.com.

Non-IFRS Financial Measures

Agility Health's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company also uses certain non-IFRS measures, such as EBITDA, to measure its financial performance. EBITDA is defined by the Company as the addition of net loss, depreciation and amortization and financial expenses. The Company uses EBITDA for the purpose of evaluating its historical and prospective financial and operational performance. Management believes that EBITDA is a useful measure for evaluating the performance of the Company. EBITDA is not a performance measure recognized under IFRS, therefore it does not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled financial metrics reported by other companies.

Forward-Looking Information

This press release contains forward-looking statements regarding Agility Health and its business. Such statements are based on the current expectations and views of future events of Agility Health's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including the anticipated future growth of Agility Health, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumption and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Agility Health undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future events, or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.