WELL Provides Corporate Update on Canadian Clinics Reflecting Strong Growth Momentum and Return on Invested Capital (ROIC) Performance
- In the last 10 days, WELL has closed the acquisition of 3 primary care clinics in BC and executed definitive agreements to acquire 4 diagnostic imaging clinics in
Alberta with combined revenues of$17M at 7% operating margins, not including post transaction synergies. - WELL acquired or absorbed 21 clinics in Q4 2023 inclusive of legacy MCI OneHealth and MB Clinic networks and 10 clinics from
Shoppers Drug Mart inJune 2024 which are now all operating profitably on an Adjusted EBITDA basis. - WELL's acquisition and absorption pipeline has grown to 5 signed LOIs representing
$11.8M in revenues at 5% operating margins and more than 50 clinics in pre-LOI review. - WELL's Canadian Clinics Business operates at a Pre-Tax Unlevered ROIC1 or "Return on
Invested Capital " of approximately 14%. This figure is ~25% for Primary Care and ~11% forWELL Health Diagnostics .
Strong Pre-Tax Unlevered ROIC1
|
|
Primary Care |
Total Canadian |
Pre-Tax Unlevered ROIC1 |
11 % |
25 % |
14 % |
With a large addressable market and a robust pipeline of additional targets, WELL continues to see a compelling opportunity to allocate incremental capital into its Canadian clinic Business unit. WELL expects ROIC to rise over time, driven by high-return tuck-in acquisitions, organic growth, and clinic transformation efforts using its latest generation of AI-enabled technology tools.
New Canadian Clinical Acquisitions
In the past 10 days, WELL has completed the acquisition of three primary care clinics in
WELL plans to apply its proven expertise in operational management and clinic transformation to these newly acquired clinics, aiming to improve operating margins by an average of 1000 basis points within the next 1-2 years. This focus on operational optimization will help these clinics generate enhanced long-term profitability and improve the overall patient experience.
2023 and Early 2024 Clinic Cohort Update: Significant Progress in Transformation
In Q4 2023, WELL acquired or absorbed 21 clinics, inclusive of legacy MCI OneHealth and
WELL's purposeful application of technology and operational support has provided a substantial amount of support to physicians and their practices, such as
Dr.
WELL's clinic transformation team is making progress across the country and has now doubled its clinic transformation team to 6 core members from last year not including the rest of WELL's shared services team and is expected to continue ramping up.
WELL's Growing Clinic Pipeline
WELL's Canadian clinic acquisition and absorption pipeline has grown to 5 signed LOIs representing
Footnotes:
1. |
WELL defines Pre-Tax Unlevered ROIC for its Canadian clinics business as the Adjusted EBITDA of the business unit divided by the total M&A consideration, including upfront cash, share consideration, and realized and future earn-out payments. The Total M&A consideration used in the Pre-Tax Unlevered ROIC calculation excludes any allocation of corporate overhead, Property, Plant & Equipment, and Working Capital. The non-GAAP financial measures included in this non-GAAP ratio include Adjusted EBITDA. This non-GAAP ratio is not a standardized financial measure used to prepare the Company's financial statements and may not be a comparable to similar financial measures disclosed by other issuers. The Company uses these non-GAAP standardized measures as supplemental indicators of its financial and operating performance which the Company believes allows for meaningful analysis of trends in its clinic business. |
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Chief Executive Officer, Chairman and Director
About
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 37,000 healthcare providers between the US and
Forward-Looking Statements
This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company's goals, strategies and growth plans; expectations regarding continued revenue, growth and expected revenue and operating margins; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions; and the expected financial performance of recent and planned acquisitions. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; an inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form and its most recent Management, Discussion and Analysis. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
This news release contains financial outlook information about Pre-Tax Unlevered ROIC or "Return on
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