"First quarter of clinic revenues demonstrates solid financial performance with positive adjusted EBITDA."
VANCOUVER, June 28, 2018 /CNW/ - Wellness Lifestyles Inc. ("WELL" or "the Company") (TSX-V: WELL), has announced second quarter financial results for the period ended April 30, 2018.
"The second quarter of our fiscal year ended April 30, 2018 was the first in our company's history where we published results from our medical clinic operations", said Hamed Shahbazi, CEO of WELL "We are very pleased with the medical clinic assets we purchased on Feb 9, 2018 and their subsequent performance. We are extremely well positioned with a strong balance sheet and are focused on identifying and completing highly accretive acquisitions in the healthcare and digital health related marketplaces"
Second quarter financial & business highlights (all figures in Canadian dollars):
- Revenue from continuing operations was $1,919,194, a 2,089% increase compared to Q2 2017 revenue of $87,688 which was entirely from discontinued operations related with non-medical clinic operations. All revenues related to healthcare fees from continuing operations were from six medical clinics acquired on February 9, 2018.
- Adjusted EBITDA1 from continuing operations was $31,846.
- Net Loss from continuing operations was $148,801. When including results of discontinued operations, Total Comprehensive Loss was $266,601.
- The Company discontinued operations from legacy businesses, Canada Yoga Inc. during the quarter, and Shakti Yoga Apparel LLC subsequent to the end of the quarter.
- The Company closed a $4.5 million brokered financing to fund the acquisition of six healthcare clinics in British Columbia, Canada.
- The Company announced a non-brokered financing led by Mr. Li Ka-shing which closed subsequent to the end of the quarter and added $7,567,626 to the company's balance sheet to help fund future acquisitions and growth initiatives.
- During the quarter, Mr. Hamed Shahbazi was appointed as Chairman and subsequent to the quarter on May 23, 2018, took on the role of Chief Executive Officer. Mr. Shahbazi invested $2,047,603 as part of the most recent non-brokered financing.
3 Months ended April
3 Months ended April
Net Loss from continuing operations
Adjusted EBITDA2 from continuing operations
Net Comprehensive Loss
1 Excluding discontinued operations.
2 See "Non-IFRS Measures" below.
3 Includes the results of now discontinued operations.
This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards ("IFRS") such as EBITDA, Adjusted EBITDA and Adjusted EBITDA per share. These non-IFRS measures are not recognized under IFRS and accordingly, shareholders are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.
The Company defines EBITDA as earnings before depreciation and amortization, interest expense, and income tax expense (recovery). Adjusted EBITDA is defined as EBITDA before transaction and restructuring costs, discontinued operations, stock-based compensation expense recognized in the statement of income. Adjusted EBITDA per share is defined as Adjusted EBITDA divided by the weighted outstanding shares on both a basic and diluted basis. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives.
About Wellness Lifestyles Inc.
The Company owns and operates Primary Healthcare facilities in Canada. WELL's facilities engage 34 general practitioners who serve more than 240,000 patient visits per year including service delivery through Telemedicine applications. Wellness Lifestyles Inc. was recognized as a TSX Venture 50 Company in 2018. For more information, please go to www.WELL.company
WELLNESS LIFESTYLES INC.
Per: "Hamed Shahbazi"
Founder, Chairman and CEO
Neither 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.
Disclaimer for Forward-Looking Information
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding WELL's priorities to: acquire additional healthcare clinics to establish improved scale for synergies; establish best in class shared services to create a scalable growth model for the Company; modernize its operation with the use of technology to benefit doctors and patients; and execute on a disciplined and highly accretive capital allocation program. There are numerous risks and uncertainties that could cause actual results and WELL's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the primary healthcare sector in general; and (iii) other factors beyond the control of the Company. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
SOURCE Wellness Lifestyles Inc