Premier Health Reports Third Quarter Results
Premier Health of America Inc. (TSXV: PHA) is a leading Canadian Healthtech company that has recently filed its Unaudited Quarterly Consolidated Financial Statements and Management Discussion and Analysis (MD&A) for the quarter ended June 30, 2024.
Financial Highlights
Key Metrics
As part of the financial reporting, several key metrics were showcased, with revenues for the quarter reaching CAD 41,482, while the revenue for the same period last year was CAD 23,614. The year-to-date revenues totaled CAD 124,732 compared to CAD 66,985 from the previous year.
The gross margin reported was CAD 6,380 for the quarter, representing 15.3% of revenues, whereas the previous year’s gross margin stood at CAD 6,464 or 27.3%. The Adjusted EBITDA for the quarter was CAD 367, significantly down from CAD 2,715 for the same period last year, a decline largely attributed to one-time costs.
Operational Challenges
Impact of Bill 10
The results reflected a significant impact caused by the implementation of Quebec’s Bill 10. This legislative change imposed strict tariffs and limitations on the use of independent labor which severely affected the Per Diem segment. Government directives curtailed the use of independent labor in healthcare settings, leading to a deep decline in sector interest among professionals due to compensation changes that included pay cuts and reduced overtime. Consequently, a goodwill impairment loss of CAD 5.5 million was recorded this quarter.
One-Time Costs and Losses
In addition to the challenges faced due to Bill 10, Premier Health incurred several one-time costs amounting to CAD 800,000 this quarter. These included CAD 200,000 related to Solutions Staffing transition issues, CAD 300,000 in legal expenses, and CAD 300,000 due to administrative adjustments in Quebec.
Net Income for the quarter reflected a loss of CAD 8.5 million, as opposed to a net income of CAD 500,000 in the same period last year. This net loss was influenced by the previously mentioned one-time costs as well as increased financing expenses.
Positive Developments
Solutions Staffing Growth
Amidst the challenges, Premier Health noted that Solutions Staffing experienced notable growth, recording bookings of 263,000 hours for the quarter. This steady performance can be attributed to the activation of the new contract with Indigenous Services Canada in April, which has begun to restore its gross margins to historical performance levels. The company aims to expedite organic growth within Ontario in the coming year.
CEO Insights
CEO Martin Legault addressed the ongoing challenges and strategies for adaptation. He emphasized that the acquisition of Solutions Staffing made last November is a strategic move to mitigate the decreased volumes from the Per Diem segment. The focus will shift towards the travel nurse segment and implementing cost reduction initiatives, while also recognizing the need for flexibility in operations as the longstanding nurses' union contract remains unresolved.
About Premier Health
Premier Health is dedicated to providing a diverse array of outsourced healthcare services across the Canadian landscape. With a commitment to lead digital transformation in the industry, the company leverages its proprietary LiPHe platform to enhance the delivery of health services, aiming to ensure that patient care remains swift, effective, and accessible.
Non-GAAP Measures Explained
In line with standard reporting, Premier Health outlines its calculation of EBITDA, presenting a clearer view of its financial health before non-recurring items and accounting variances. This clarity helps stakeholders gauge the corporation's performance comprehensively.
Contact Information
For further inquiries, please reach out to:
Mr. Jean-Robert Pronovost, Vice President Corporate Development
Premier Health of America Inc.
jrpronovost@premierhealth.ca / 1 800 231 9916
Mr. Guy Daoust, Chief Financial Officer
Premier Health of America Inc.
gdaoust@premierhealth.ca / 1 800 231 9916
Frequently Asked Questions
What were the main financial results for Premier Health in Q3 2024?
Premier Health reported revenues of CAD 41,482 with a net loss of CAD 8.5 million for the quarter.
How did Bill 10 affect Premier Health's operations?
Bill 10 imposed caps on tariffs and restricted the use of independent labor, significantly impacting the Per Diem segment and leading to a goodwill impairment.
What challenges did Premier Health face in this quarter?
The company faced one-time costs totaling CAD 800,000, a significant drop in labor availability due to legislative restrictions, and increased financing costs.
What did the CEO say about future strategies?
CEO Martin Legault emphasized focusing on the travel nurse segment and cost reductions while addressing the challenges arising from market conditions.
How has Solutions Staffing performed in the recent quarter?
Solutions Staffing reported strong performance with 263,000 hours booked, indicating recovery and growth opportunities for the company.
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