HAMILTON, Ontario, July 03, 2018 (GLOBE NEWSWIRE) -- Agility Health, Inc. (TSXV:AHI) (“ Agility Health ” or “ Corporation ”), a leading provider of orthotics, prosthetics and foot care services in Canada, today reported its financial results for the first quarter ended March 31, 2018. All amounts are expressed in U.S. dollars unless indicated otherwise.
The complete financial results for Agility Health are available at www.sedar.com . Highlights include:
Financial and Operating Highlights for First Quarter 2018 (Medic Holdings, Inc., Agility Health’s operating subsidiary, was acquired on March 10, 2017 and therefore comparative figures for the corresponding period of the prior year reflect only one month of operations.)
- Revenues from continuing operations increased 105.9% to $1,990,039 million for first quarter 2018 versus revenues from continuing operations of $966,534 for first quarter 2017
- Gross margins from continuing operations for first quarter 2018 were 41.5%, compared to gross margins of 48.5% from continuing operations for the comparable period last year
- A one-time gain of $28.6 million was realized on the sale of the Corporation’s U.S. assets in February 2018
- Income from continuing operations, net of tax, was $27,687,977 for first quarter 2018 versus a loss from continuing operations, net of tax, of $719,535 for first quarter 2017
- The Corporation had $1,039,076 of cash, including restricted escrow cash, and a working capital deficit of $4.7 million at the end of March 2018
“We are pleased to report that, since the sale of our U.S. operations in February 2018, we have implemented a number of initiatives that are intended to lower our manufacturing and administrative costs while increasing overall manufacturing capacity,” said Wayne Cockburn, Interim CEO of Agility. “We are also evaluating strategic opportunities that would allow us to gain critical mass in our business including vertical and horizontal expansion. We look forward to reporting our progress as the remainder of the year unfolds.”
Selected Financial Information
AGILITY HEALTH, INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION March 31, 2018 and December 31, 2017 (Expressed in US Dollars) (Unaudited)
| March 31, 2018 (Unaudited) | December 31, 2017 (Audited) | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash | $ | 239,076 | $ | 821,703 | |||
| Restricted escrow cash | 800,000 | - | |||||
| Accounts and other receivables | 1,277,887 | 7,585,640 | |||||
| Inventory | 1,459,115 | 1,508,520 | |||||
| Prepaid expenses and other current assets | 123,379 | 1,190,248 | |||||
| Total current assets | 3,899,457 | 11,106,111 | |||||
| Non-current assets | |||||||
| Investments | 50,025 | 86,025 | |||||
| Deferred income taxes | 614,000 | 614,000 | |||||
| Property and equipment | 1,236,318 | 1,749,436 | |||||
| Intangible assets | 1,387,646 | 11,385,910 | |||||
| Goodwill | 2,008,418 | 4,206,098 | |||||
| Total non-current assets | 5,296,407 | 18,041,469 | |||||
| Total assets | $ | 9,195,864 | $ | 29,147,580 | |||
| LIABILITIES AND EQUITY (DEFICIT) | |||||||
| Current liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 3,467,201 | $ | 11,343,887 | |||
| Lines of credit | 1,357,300 | 5,411,406 | |||||
| Note payable | - | 1,000,000 | |||||
| Convertible debentures payable | - | 1,250,000 | |||||
| Class B and C Unit Liability | - | 20,100,000 | |||||
| Class B and C Unit Embedded Derivative Liability | - | 2,131,410 | |||||
| Current portion of long-term debt | 3,698,869 | 4,692,117 | |||||
| Current portion of other long-term liabilities | 37,469 | 1,465,324 | |||||
| Total current liabilities | 8,560,839 | 47,394,144 | |||||
| Non-current liabilities | |||||||
| Convertible debentures payable | - | 768,702 | |||||
| Long-term debt | - | 2,499,278 | |||||
| Other non-current liabilities | 22,666 | 987,520 | |||||
| Total non-current liabilities | 22,666 | 4,255,500 | |||||
| Total liabilities | 8,583,505 | 51,649,644 | |||||
| EQUITY (DEFICIT) | |||||||
| Share capital | 12,483,989 | 12,483,989 | |||||
| Contributed surplus | 1,308,328 | 1,304,901 | |||||
| Retained deficit | (13,003,006 | ) | (37,659,710 | ) | |||
| Translation Reserve | (176,952 | ) | (223,158 | ) | |||
| 612,359 | (24,093,978 | ) | |||||
| Non-controlling interest | - | 1,591,914 | |||||
| Total equity (deficit) | 612,359 | (22,502,064 | ) | ||||
| Total liabilities and equity (deficit) | $ | 9,195,864 | $ | 29,147,580 | |||
Selected Financial Information
AGILITY HEALTH, INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS Three months Ended March 31, 2018 and 2017 (Expressed in US Dollars) (Unaudited)
| 2018 | 2017 | ||||||
| Net revenue | $ | 1,990,039 | $ | 966,534 | |||
| Cost of revenues | |||||||
| Materials | 606,520 | 291,766 | |||||
| Salaries and benefits | 382,404 | 138,256 | |||||
| Facility | 63,117 | 24,829 | |||||
| Supplies | 19,631 | 5,680 | |||||
| Depreciation and amortization | 88,138 | 34,310 | |||||
| Provision for bad debts | 3,499 | - | |||||
| Other | - | 2,598 | |||||
| Total cost of revenues | 1,163,309 | 497,439 | |||||
| Gross Margin | 826,730 | 469,095 | |||||
| Selling, general and administrative expenses | 1,649,830 | 1,009,840 | |||||
| Other income (expense) | |||||||
| Interest expense | (62,479 | ) | (188,397 | ) | |||
| Foreign currency adjustment | (50,043 | ) | 2,065 | ||||
| Gain on Sale of United States based assets | 28,623,599 | - | |||||
| Fair value adjustment on warrants and obligations | - | 7,542 | |||||
| 28,511,077 | (178,790 | ) | |||||
| Income (Loss) from continuing operations before income taxes | 27,687,977 | (719,535 | ) | ||||
| Provision for income taxes | - | - | |||||
| Income (Loss) from continuing operations | 27,687,977 | (719,535 | ) | ||||
| Loss from discontinued operations, net of tax | (2,942,086 | ) | (470,956 | ) | |||
| Net income (loss) | 24,745,891 | (1,190,491 | ) | ||||
| Other comprehensive income (loss), net of tax | |||||||
| Foreign currency retranslations | 46,206 | - | |||||
| Comprehensive income (loss) | $ | 24,792,097 | $ | (1,190,491 | ) | ||
| Net income (loss) attributable to: | |||||||
| Shareholders | $ | 24,656,704 | $ | (1,554,138 | ) | ||
| Non-controlling interest | 89,187 | 363,647 | |||||
| $ | 24,745,891 | $ | (1,190,491 | ) | |||
| Comprehensive income (loss) attributable to: | |||||||
| Shareholders | $ | 24,702,910 | $ | (1,554,138 | ) | ||
| Non-controlling interest | 89,187 | 363,647 | |||||
| $ | 24,792,097 | $ | (1,190,491 | ) | |||
| Earnings per share | |||||||
| Basic, income (loss) per share | $ | 0.21 | $ | (0.01 | ) | ||
| Diluted, income (loss) per share | $ | 0.21 | $ | (0.01 | ) | ||
About Agility Health
Through its Canadian subsidiary and principal operating entity, Medic Holdings Corp., Agility Health operates eleven (11) foot care clinics in Ontario and Quebec and manufactures orthotics and prosthetics.
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, financial expenses and income taxes. 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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes 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 assumptions 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 revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
For further information please contact:
Wayne Cockburn Interim Chief Executive Officer (905) 505-0770 Wayne@medicholdings.com
