GRAND RAPIDS, MICHIGAN--(Marketwired - Apr 30, 2015) - Agility Health, Inc. ("Agility Health or the "Company") (TSX VENTURE:AHI) today reports its financial results for the fourth quarter and year ended December 31, 2014. All amounts are expressed in U.S. dollars unless indicated otherwise.
During 2014, the Company focused its efforts on operational performance improvement, strengthening of the management team, administrative cost realignment, the discontinuation of certain operations and internal software development.
Financial and Operating Highlights for 2014
(All comparative figures are for the corresponding period of the prior year)
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Revenue from continuing operations for 2014 grew to $62.1 million from $60.5 million;
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Adjusted EBITDA from continuing operations for 2014 was $2.7 million compared with $2.9 million in 2013;
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Gross margin from operations for the year grew to 22% from 18%;
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Net and total loss declined to $6.5 million or ($0.09) per share in 2014 compared with $8.8 million or ($0.14) per share in 2013.
"Agility Health's financial results for 2014 showed improvement throughout the year, as we reset the Company with the objective of returning to consistent growth and profitability," stated Steve Davidson, Agility Health's Chairman and CEO. "The overall market for physiotherapy services is growing and we remain extremely well positioned to benefit from that opportunity. We are focused on lines of business which offer higher gross margins, evidenced by our year over year increase from 18% to 22%. We expect these higher margin levels combined with continued cost management to result in significant improvements in EBITDA during 2015.
In addition, we look forward to reporting updates on several "greenfield" clinic expansions and timely acquisitions as the year unfolds to complement organic growth initiatives. "
Financial and Operating Highlights for the Fourth Quarter, 2014
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Revenue from continuing operations for the period increased to $15.4 million from $15.1 million;
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Adjusted EBITDA for the period increased to $0.6 million from $0.5 million;
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Gross margin from operations for the quarter grew to 22% from 18%.
Selected Financial Information
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| December 31, 2014 and 2013 | |||||||||
| (Expressed in US Dollars) | |||||||||
| December 31, | December 31, | ||||||||
| 2014 | 2013 | ||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash | $ | 1,301,084 | $ | 2,062,859 | |||||
| Accounts and other receivables | 7,668,353 | 7,083,792 | |||||||
| Income taxes receivable | 115,808 | 115,808 | |||||||
| Prepaid expenses and other current assets | 1,173,300 | 1,049,081 | |||||||
| Total current assets | 10,258,545 | 10,311,540 | |||||||
| Investments | 86,025 | 86,025 | |||||||
| Property and equipment | 1,307,508 | 1,756,403 | |||||||
| Intangible assets | 13,024,986 | 13,572,091 | |||||||
| Goodwill | 2,682,730 | 3,107,465 | |||||||
| Total assets | $ | 27,359,794 | $ | 28,833,524 | |||||
| LIABILITIES AND EQUITY (DEFICIT) | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 8,122,871 | $ | 7,379,942 | |||||
| Line of credit | 5,060,085 | 4,116,644 | |||||||
| Current portion of long-term debt | 555,555 | 888,889 | |||||||
| Current portion of other long-term liabilities | 1,413,432 | 624,824 | |||||||
| Total current liabilities | 15,151,943 | 13,010,299 | |||||||
| Convertible debentures payable | 1,114,763 | - | |||||||
| Other long-term liabilities | 22,214,537 | 22,440,559 | |||||||
| Total liabilities | 38,481,243 | 35,450,858 | |||||||
| Equity (deficit) | |||||||||
| Share capital | 6,280,665 | 3,454,309 | |||||||
| Contributed surplus | 299,036 | 301,692 | |||||||
| Retained deficit | (19,382,756) | (12,088,285) | |||||||
| (12,803,055) | (8,332,284) | ||||||||
| Non-controlling interest | 1,681,606 | 1,714,950 | |||||||
| Total equity (deficit) | (11,121,449) | (6,617,334) | |||||||
| Total liabilities and equity (deficit) | $ | 27,359,794 | $ | 28,833,524 | |||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||
| Years ended December 31, 2014 and 2013 | ||||||||
| (Expressed in US Dollars) | ||||||||
| 2014 | 2013 | |||||||
| Revenue | $ | 62,104,509 | $ | 60,527,877 | ||||
| Cost of revenues | ||||||||
| Salaries and benefits | 40,837,396 | 41,302,131 | ||||||
| Contract labor | 802,113 | 1,067,679 | ||||||
| Facility | 3,424,663 | 3,457,499 | ||||||
| Supplies | 891,292 | 798,147 | ||||||
| Depreciation and amortization | 726,829 | 768,401 | ||||||
| Provision for bad debts | 464,763 | 1,077,803 | ||||||
| Other | 1,424,005 | 1,339,330 | ||||||
| Total cost of revenues | 48,571,061 | 49,810,990 | ||||||
| Gross margin | 13,533,448 | 10,716,887 | ||||||
| Selling, general and administrative | 14,313,511 | 11,688,051 | ||||||
| Public listing expense | - | 883,561 | ||||||
| Other income (expense) | ||||||||
| Interest expense | (4,684,482) | (3,615,767) | ||||||
| Interest income | 157 | 510 | ||||||
| Loss on disposal of equipment | (38,568) | (6,841) | ||||||
| Foreign currency translation expense | 31,644 | (1,633) | ||||||
| Fair value adjustment on warrants and obligations | 284,882 | (476,723) | ||||||
| (4,406,367) | (4,100,454) | |||||||
| Loss from continuing operations before income taxes | (5,186,430) | (5,955,179) | ||||||
| Provision for income taxes | ||||||||
| Current | 71,729 | 68,000 | ||||||
| Deferred | - | - | ||||||
| 71,729 | 68,000 | |||||||
| Net and total comprehensive loss from continuing operations | (5,258,159) | (6,023,179) | ||||||
| Discontinued Operations | ||||||||
| Net and total comprehensive loss from discontinued operations | (1,257,477) | (2,782,732) | ||||||
| Net and total comprehensive loss | $ | (6,515,636) | $ | (8,805,911) | ||||
| Net and total comprehensive income (loss) attributable to: | ||||||||
| Shareholders | $ | (7,337,303) | $ | (8,609,549) | ||||
| Non-controlling interest | 821,667 | (196,362) | ||||||
| $ | (6,515,636) | $ | (8,805,911) | |||||
| Earnings per share | ||||||||
| Basic, loss per share | $ | (0.09) | $ | (0.14) | ||||
| Diluted, loss per share | $ | (0.09) | $ | (0.14) | ||||
About Agility Health
Through its 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 December 31, 2014, Agility Health operates 74 outpatient or onsite rehabilitation locations in 17 states. Agility Health's contract therapy services business provides rehabilitative services to 42 hospitals and inpatient rehabilitation units, 35 nursing homes, long-term care facilities and other service locations in 9 states. For more information, please visit investors.agilityhealth.com.