Second Quarter 2023 Highlights
Akumin delivered second quarter same-store volume performance on a consolidated basis as follows:- +3.1% for MRI
- +16.5% for PET/CT
- +3.4% for Oncology Patient Starts
- The Company reported revenue totaling
$184.8 million for the second quarter, a$7.3 million or 4% decrease over the second quarter of last year. - Net loss was
$96.4 million for the second quarter, an increase in net loss of$70.3 million , compared to the prior year period. This quarter's net loss included a goodwill impairment charge of$53.5 million related to the Radiology division. Akumin generated$26.5 million of Adjusted EBITDA* (as defined below) for the second quarter, an$11.7 million or 31% decrease over the second quarter of last year.
*For a reconciliation of Adjusted EBITDA, which is a non-GAAP measure, to the most directly comparable GAAP financial measure, please see "Reconciliation of Non-GAAP Financial Measures". |
Summary Consolidated Financial Results (in thousands, except for per share amounts)
3-month period | 3-month period | 6-month period | 6-month period | |
Total MRI Scans | 221 | 225 | 438 | 439 |
Total PET-CT Scans | 37 | 33 | 72 | 65 |
Total Oncology Patient Starts | 2.523 | 2.588 | 5.133 | 5.132 |
Revenue | ||||
Net Loss | ( | ( | ( | ( |
Adjusted EBITDA (1) | ||||
EPS –Diluted |
(1) See "Non-GAAP Measures" below. |
Commenting on the quarterly results,
"Notwithstanding the operational challenges we face, we remain focused on the digitization of our business and the deployment of our remote clinical capabilities, which together with business development initiatives we have underway, will deliver significant benefits in 2024 and beyond. We continue to see strong demand for our services and significant partnership interest from hospitals and health systems which underscores the value of the
Revised Full-Year 2023 Financial Outlook
Commenting on the financial outlook for the full year ending
Akumin Full-Year 2023 Guidance | |
Revenue | |
Adjusted EBITDA (1) | |
Capex (2) |
(1) See "Non-GAAP Measures" below. |
(2) Including $26mm of growth Capex. |
The Company also notes that its Board of Directors has formed a Special Committee to explore strategic initiatives related to its capital structure. The Special Committee is diligently evaluating potential solutions. There can be no assurance that the Special Committee's review process will result in any transaction or other alternative and there is no set timetable for the strategic review process and the Company does not intend to provide updates unless or until the Board of Directors approves a specific action or otherwise determines that disclosure is appropriate or necessary.
Unless otherwise indicated, all amounts are expressed in
Investor Presentation
Conference call details:
Date: | |
Click to join by phone: | https://akum.in/Q2-2023-Results-Dial-In-Numbers |
Access via webcast: | https://akum.in/Q2-2023-Results-Webcast |
North American Toll Free: | 888-664-6383 |
A related presentation will be available from
About
Non-GAAP Measures
This press release refers to certain non-GAAP measures. These non-GAAP measures are not recognized measures under
There is unlikely to be comparable or similar measures presented by other companies. Rather, these non-GAAP measures are provided as additional information to complement those GAAP measures by providing further understanding of our results of operations from management's perspective. Accordingly, these non-GAAP measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under GAAP. We use non-GAAP financial measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin" (each as defined below). These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP measures. We believe the use of these non-GAAP measures, along with GAAP financial measures, enhances the reader's understanding of our operating results and is useful to us and to investors in comparing performance with competitors, estimating enterprise value, and making investment decisions. We also believe that securities analysts, investors, and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management uses non-GAAP measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Reconciliations of non-GAAP measures to the relevant reported measures can be found in "Reconciliation of Non-GAAP Financial Measures" and in our Form 10-Q filed
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) before interest expense (net), income tax expense (benefit), and depreciation and amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for impairment charges, restructuring charges, severance and related costs, settlements and related costs (recoveries), stock-based compensation, loss (gain) on sale of accounts receivable, capital structure initiatives, fair value adjustment on derivative, deferred rent expense, and items that we do not consider to be indicative of our core/ongoing operations.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the total revenue in the period.
Forward-Looking Information
Certain information in this press release constitutes forward-looking information or forward-looking statements. In some cases, but not necessarily in all cases, such statements or information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by
Selected Consolidated Financial Information
(in thousands) | Three-month period ended | Three-month period ended |
$ Change |
% Change |
Revenue | -4 % | |||
Employee compensation | 68,302 | 72,021 | (3,719) | -5 % |
Third party services and professional | 32,091 | 29,919 | 2,172 | 7 % |
Rent and utilities | 12,780 | 12,742 | 38 | 0 % |
Reading fees | 11,953 | 11,788 | 165 | 1 % |
Administrative | 12,944 | 11,467 | 1,477 | 13 % |
Medical supplies and other expenses | 20,425 | 16,637 | 3,788 | 23 % |
Depreciation and amortization | 35,015 | 25,200 | 9,815 | 39 % |
Impairment charges | 53,460 | - | 53,460 | n/m |
Restructuring charges | 944 | 7,244 | (6,300) | -87 % |
Severance and related costs | 22 | 5,559 | (5,537) | -100 % |
Settlements, recoveries and related | 465 | 814 | (349) | -43 % |
Stock-based compensation | 441 | 758 | (317) | -42 % |
Other operating expense (income), | 477 | 586 | (109) | -19 % |
Interest expense | 31,164 | 29,290 | 1,874 | 6 % |
Other non-operating expense | 2,346 | (2,335) |
4,681 |
-200 % |
Loss before income taxes | (97,989) | (29,562) | (68,427) | 231 % |
Income tax benefit | (1,578) | (3,483) | 1,905 | -55 % |
Non-controlling interests | 241 | 4,390 | (4,149) | -95 % |
Net loss attributable to common | 217 % |
(in thousands) | Six-month period ended | Six-month period ended |
$ Change |
% Change |
Revenue | $ 372,432 | $ 378,391 | $ (5,959) | -2 % |
Employee compensation | 139,829 | 147,148 | (7,319) | -5 % |
Third party services and professional | 62,920 | 59,096 | 3,824 | 6 % |
Rent and utilities | 25,121 | 25,219 | (98) | 0 % |
Reading fees | 23,552 | 23,286 | 266 | 1 % |
Administrative | 23,365 | 23,091 | 274 | 1 % |
Medical supplies and other expenses | 39,275 | 31,895 | 7,380 | 23 % |
Depreciation and amortization | 58,008 | 49,931 | 8,077 | 16 % |
Impairment charges | 53,460 | - | 53,460 | n/m |
Restructuring charges | 6,680 | 7,324 | (644) | -9 % |
Severance and related costs | (27) | 7,797 | (7,824) | -100 % |
Settlements, recoveries and related | 1,913 | 677 | 1,236 | 183 % |
Stock-based compensation | 840 | 1,819 | (979) | -54 % |
Other operating expense (income), | (274) | 579 | (853) | -147 % |
Interest expense | 61,861 | 57,971 | 3,890 | 7 % |
Other non-operating expense | 2,214 | (2,011) | 4,225 |
-210 % |
Loss before income taxes | (126,305) | (55,431) | (70,874) | 128 % |
Income tax benefit | (704) | (2,920) | 2,216 | -76 % |
Non-controlling interests | 6,199 | 8,769 | (2,570) | -29 % |
Net loss attributable to common | 115 % |
Reconciliation of Non-GAAP Financial Measures
(in thousands) | Three-month period ended | Three-month period ended |
Net loss | $ (26,079) | |
Income tax benefit | (1,578) | (3,483) |
Depreciation and amortization | 35,015 | 25,200 |
Interest expense | 31,164 | 29,290 |
EBITDA | (31,810) | 24,928 |
Adjustments: | ||
Impairment charges | 53,460 | - |
Restructuring charges | 944 | 7,244 |
Severance and related costs | 22 | 5,559 |
Settlements, recoveries and related costs | 465 | 814 |
Stock-based compensation | 441 | 758 |
Loss on sale of accounts receivable | 922 | - |
Loss (gain) on disposal of property and equipment, net | (348) | 170 |
Capital structure initiatives | 1,912 | - |
Acquisition-related costs | 155 | 86 |
Fair value adjustment on derivative | (258) | (1,009) |
Deferred rent expense(1) | (43) | 247 |
Other, net | 665 | (613) |
Adjusted EBITDA | ||
Revenue | 184,840 | 192,128 |
Adjusted EBITDA Margin(2) | 14 % | 20 % |
(1) | Deferred rent expense is defined as operating lease cost less operating cash flows from operating leases and adjusted for any prepayments or related items. |
(2) | Adjusted EBITDA Margin is computed by dividing Adjusted EBITDA by the total revenue in the period. |
(in thousands) | Six-month period ended | Six-month period ended |
Net loss | ||
Income tax benefit | (704) | (2,920) |
Depreciation and amortization | 58,008 | 49,931 |
Interest expense | 61,861 | 57,971 |
EBITDA | (6,436) | 52,471 |
Adjustments: | ||
Impairment charges | 53,460 | - |
Restructuring charges | 6,680 | 7,324 |
Severance and related costs | (27) | 7,797 |
Settlements, recoveries and related costs | 1,913 | 677 |
Stock-based compensation | 840 | 1,819 |
Loss on sale of accounts receivable | 1,046 | - |
Loss (gain) on disposal of property and equipment, net | (417) | 372 |
Capital structure initiatives | 1,912 | - |
Acquisition-related costs | 298 | 468 |
Fair value adjustment on derivative | (301) | (839) |
Deferred rent expense(1) | 142 | 579 |
Other, net | 558 | (466) |
Adjusted EBITDA | ||
Revenue | 372,432 | 378,391 |
Adjusted EBITDA Margin(2) | 16 % | 19 % |
(1) | Deferred rent expense is defined as operating lease cost less operating cash flows from operating leases and adjusted for any prepayments or related items. |
(2) | Adjusted EBITDA Margin is computed by dividing Adjusted EBITDA by the total revenue in the period. |
View original content:https://www.prnewswire.com/news-releases/akumin-announces-second-quarter-2023-results-revised-fy23-financial-outlook-and-establishment-of-special-committee-301897332.html
SOURCE
© Canada Newswire, source