Agility Health Reports First Quarter 2016 Financial Results
GRAND RAPIDS, MICHIGAN--(Marketwired - May 30, 2016) - Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health or "the Company"), today reports its financial results for the three-month period ended March 31, 2016. All amounts are expressed in U.S. dollars unless indicated otherwise.
Financial and Operating Highlights for the First Quarter and Year-to-Date
(All comparative figures are for the corresponding period of the prior year)
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Earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations remained consistent at $1.1 million or 7% of revenues.
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Gross margin from operations declined to 21% from 23%, due in part to the volume of greenfield opportunities that were initiated in 2015 (and for which initial operating losses have been incurred, as expected, thereby contributing to dilution of gross margin)
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Net and total loss declined to $(0.4) million or $(0.01) per share compared with a loss of $(0.6) million or $(0.01) per share in the prior year.
"We continue to be encouraged by positive trends within operations, including the number of greenfield development opportunities that have been executed over the last twelve months, which we believe will begin to contribute positively to EBITDA, gross margin and revenue growth as these opportunities begin to mature," stated Steve Davidson, Agility Health's Chairman and CEO. "We continue to focus on revenue enhancement opportunities, including contract revenue business development and outpatient greenfield clinic development, as we advance toward our goal of achieving profitability in the near term."
Subsequent to the end of the first quarter, the Company announced the following developments:
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Agility announced that its subsidiary, Work-Fit, is expanding its injury prevention services within the Fabrication Division of Boeing. This expansion will result in an increase in Work-Fit services of more than 70% at three current Boeing locations, as well as the addition of new Boeing locations in Portland, Oregon and Salt Lake City, Utah.
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Agility announced that its subsidiary, Border Therapy Services, LLC, has opened a new, 2400 square foot clinic in Horizon City, Texas, a suburb of El Paso., the first of several "greenfield" expansions targeted for 2016.
Selected Financial Information
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| March 31, 2016 and December 31, 2015 | |||||||||
| (Expressed in US Dollars) | |||||||||
| (Unaudited) | (Audited) | ||||||||
| March 31, | December 31, | ||||||||
| 2016 | 2015 | ||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash | $ | 2,815,385 | $ | 1,306,593 | |||||
| Accounts and other receivables | 7,034,469 | 7,206,485 | |||||||
| Income taxes receivable | 19,241 | 115,808 | |||||||
| Prepaid expenses and other current assets | 987,654 | 1,004,376 | |||||||
| Total current assets | 10,856,749 | 9,663,262 | |||||||
| Investments | 86,025 | 86,025 | |||||||
| Property and equipment | 1,269,393 | 1,187,773 | |||||||
| Intangible assets | 12,043,946 | 12,160,263 | |||||||
| Goodwill | 2,531,390 | 2,531,390 | |||||||
| Total assets | $ | 26,787,503 | $ | 25,598,713 | |||||
| LIABILITIES AND EQUITY (DEFICIT) | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | $ | 9,651,481 | $ | 8,267,626 | |||||
| Line of credit | 5,372,216 | 4,582,875 | |||||||
| Current portion of long-term debt | 138,889 | 222,222 | |||||||
| Current portion of other long-term liabilities | 323,908 | 630,794 | |||||||
| Total current liabilities | 15,486,494 | 13,703,517 | |||||||
| Convertible debentures payable | 1,037,868 | 1,004,628 | |||||||
| Other long-term liabilities | 21,917,858 | 21,832,854 | |||||||
| Total liabilities | 38,442,220 | 36,540,999 | |||||||
| Equity (deficit) | |||||||||
| Share capital | 9,033,473 | 9,020,480 | |||||||
| Contributed surplus | 355,267 | 355,267 | |||||||
| Retained deficit | (23,093,237 | ) | (22,430,873 | ) | |||||
| (13,704,497 | ) | (13,055,126 | ) | ||||||
| Non-controlling interest | 2,049,780 | 2,112,840 | |||||||
| Total equity (deficit) | (11,654,717 | ) | (10,942,286 | ) | |||||
| Total liabilities and equity (deficit) | $ | 26,787,503 | $ | 25,598,713 | |||||
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS | ||||||||
| Three months ended March 31, 2016 and 2015 | ||||||||
| (Expressed in US Dollars) | ||||||||
| (Unaudited) | (Unaudited) | |||||||
| 2016 | 2015 | |||||||
| Revenue | $ | 15,521,949 | $ | 15,767,504 | ||||
| Cost of revenues | ||||||||
| Salaries and benefits | 9,984,495 | 10,102,328 | ||||||
| Contract labor | 304,232 | 218,501 | ||||||
| Facility | 1,019,446 | 972,693 | ||||||
| Supplies | 205,778 | 175,894 | ||||||
| Depreciation and amortization | 166,492 | 184,643 | ||||||
| Provision for bad debts | 255,201 | 98,929 | ||||||
| Other | 318,486 | 280,949 | ||||||
| Total cost of revenues | 12,254,130 | 12,033,937 | ||||||
| Gross margin | 3,267,819 | 3,733,567 | ||||||
| Selling, general and administrative | 2,612,036 | 2,899,772 | ||||||
| Other income (expense) | ||||||||
| Interest expense | (1,094,690 | ) | (1,238,741 | ) | ||||
| Interest income | 12,612 | - | ||||||
| Foreign currency translation gain (loss) | 120 | - | ||||||
| Fair value adjustment on warrants and obligations | (1,090 | ) | (135,709 | ) | ||||
| (1,083,048 | ) | (1,374,450 | ) | |||||
| Loss from continuing operations before income taxes | (427,265 | ) | (540,655 | ) | ||||
| Provision for income taxes | ||||||||
| Current | 7,210 | 8,422 | ||||||
| Deferred | - | - | ||||||
| 7,210 | 8,422 | |||||||
| Net and total comprehensive loss from continuing operations | (434,475 | ) | (549,077 | ) | ||||
| Discontinued Operations | ||||||||
| Net and total comprehensive loss from discontinued operations | (20,949 | ) | (56,416 | ) | ||||
| Net and total comprehensive loss | $ | (455,424 | ) | $ | (605,493 | ) | ||
| Net and total comprehensive income (loss) attributable to: | ||||||||
| Shareholders | $ | (662,364 | ) | $ | (906,037 | ) | ||
| Non-controlling interest | 206,940 | 300,544 | ||||||
| $ | (455,424 | ) | $ | (605,493 | ) | |||
| Earnings per share | ||||||||
| Basic, loss per share | (0.01 | ) | (0.01 | ) | ||||
| Diluted, loss per share | (0.01 | ) | (0.01 | ) | ||||
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 March 31, 2016, Agility Health operates 87 outpatient or onsite rehabilitation locations in 14 states. Agility Health's contract therapy services business provides rehabilitative services to 33 hospitals and inpatient rehabilitation units, 27 nursing homes, long-term care facilities and other service locations in 8 states. For more information, please visit investors.agilityhealth.com.