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Medical Facilities Corporation Reports Third Quarter Results

News Provided by PR Newswire2026-11-12

Medical Facilities Corporation Reports Third Quarter Results

[12-November-2026]

TORONTO, Nov. 12, 2026 /CNW/ -- Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the three-month and nine-month periods ended September 30, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q3 2026 Highlights
(For continuing operations¹, excluding non-controllable, non-cash corporate level adjustments related to share-based compensation plans, compared to Q3 2025)

Facility service revenue grew 9.8% to $65.9 million.
Income from operations increased 17.3% to $11.2 million.
EBITDA² increased 13.5% to $14.1 million.
Completed its normal course issuer bid ("NCIB"), fully utilizing the purchase limit of 1,805,324 common shares, including 1,695,324 common shares purchased during the nine months ended September 30, 2026.
Consolidated cash balance of $70.8 million, including a corporate cash balance of $60.7 million, at quarter end.

"We had a strong third quarter, with favourable case and payor mixes driving growth in facility service revenue and profitability," said Jason Redman, President and CEO of Medical Facilities. "We fully utilized our NCIB by July 13, 2026, repurchasing 1,695,324 common shares for a total of $21.5 million in the first nine months of the year. Finally, we ended the quarter with a very solid balance sheet, including a strong cash position and no corporate debt."

Financial Results

Financial Results from Continuing Operations	For the three months ended September 30			For the nine months ended September 30
(thousands of U.S. dollars, except per share amounts and where otherwise noted)	2026	2025	% change	2026	2025	% change
Facility service revenue	65,871	60,007	9.8 %	196,062	179,061	9.5 %
Operating expenses, before non-cash share-based compensation	54,719	50,496	8.4 %	162,563	149,936	8.4 %
Non-cash share-based compensation charges (income)	(833)	(304)	(174.0 %)	(47)	11	(527.3 %)
Income from operations	11,985	9,815	22.1 %	33,546	29,114	15.2 %
Finance costs (changes in values of derivative instruments and gain/loss on foreign currency)	(4,437)	(4,342)	(2.2 %)	(6,850)	(349)	(1,862.8 %)
Finance costs (net interest expense)	182	449	(59.5 %)	609	770	(20.9 %)
Income tax expense	3,128	2,722	14.9 %	7,883	3,792	107.9 %
Net income³ from continuing operations	13,112	10,986	19.4 %	31,904	24,901	28.1 %
Earnings per share attributable to owners of the Corporation
Basic	0.52	0.38	36.8 %	1.06	0.64	65.6 %
Fully diluted	0.28	0.18	55.6 %	0.68	0.56	21.4 %

Net income fluctuated significantly between the periods, primarily due to variations in non-cash finance costs (change in the value of exchangeable interest liability) and income taxes; these charges are incurred at the corporate level rather than at the facility level.

Reconciliation of Net Income from Continuing Operations to EBITDA²	For the three months ended September 30			For the nine months ended September 30
(thousands of U.S. dollars, except where otherwise noted)	2026	2025	% change	2026	2025	% change
Net income from continuing operations	13,112	10,986	19.4 %	31,904	24,901	28.1 %
Income tax expense	3,128	2,722	14.9 %	7,883	3,792	107.9 %
Finance costs (income)	(4,255)	(3,893)	(9.3 %)	(6,241)	421	(1,582.4 %)
Depreciation and amortization	2,959	2,919	1.4 %	8,827	8,790	0.4 %
EBITDA	14,944	12,734	17.4 %	42,373	37,904	11.8 %

Distributable Cash Flow	For the three months ended September 30			For the nine months ended September 30
(thousands of dollars, except per share amounts and where otherwise noted)	2026	2025	% change	2026	2025	% change
Cash available for distribution² (C$)	4,219	4,698	(10.2 %)	15,386	18,950	(18.8 %)
Distributions (C$)	1,455	1,651	(11.9 %)	4,494	5,100	(11.9 %)
Distributions per common share (C$)	0.090	0.089	1.1 %	0.265	0.256	3.5 %
Payout ratio²	34.5 %	35.2 %	(2.0 %)	29.2 %	26.9 %	8.6 %

During the quarter, MFC paid a quarterly cash dividend of C$0.09 per common share (or C$0.36 per share on an annualized basis), which represents an annualized yield of 2.38% on the September 30, 2026, closing price of C$15.10 per common share.

On September 30, 2026, MFC had consolidated net working capital of $67.4 million and cash and cash equivalents of $70.8 million compared to net working capital of $54.0 million and cash and cash equivalents of $43.4 million as at December 31, 2025. The change in consolidated net working capital primarily reflects the sale of Oklahoma Spine Hospital, LLC ("OSH") in the first quarter of 2026, resulting in an increase in cash and cash equivalents from the sale proceeds received, partly offset by a reduction in current assets and current liabilities with the removal of OSH's held-for-sale balances.

MFC's financial statements and management's discussion and analysis, for the three and nine months ended September 30, 2026, will be filed on SEDAR+ at www.sedarplus.ca and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Notice of Conference Call

Management of MFC will host a conference call today at 8:30 am ET to discuss its third quarter financial results. You may join the conference call by dialing 1-888-699-1199 approximately 15 minutes prior to the call to secure a line. To join the call without operator assistance, you may register and enter your phone number at https://emportal.ink/4jPNenx to receive an instant automated call back.

A live audio webcast of the call will be available at https://app.webinar.net/OezPkVerJdx. Please connect at least 15 minutes prior to the call to allow time for any software download that may be required to join the webcast. The webcast will be archived on MFC's website following the call date.

About Medical Facilities

Medical Facilities owns a 51% controlling interest, with its physician partners owning the remaining 49% interest, in two highly rated, high-quality specialty surgical hospitals located in Arkansas and South Dakota. The hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. For more information, please visit www.medicalfacilitiescorp.ca.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements, except as required by applicable law; such statements speak only as of the date made.

¹Continuing operations is defined as consolidated operations excluding Oklahoma Spine Hospital, LLC, and the Surgery Center of Newport Coast, LLC, which were treated as discontinued operations in the financial results for the three-month and nine-month periods ended September 30, 2026 and 2025.

² EBITDA, cash available for distribution, and payout ratio are non-IFRS financial measures. While Medical Facilities believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers and should not be considered as alternatives to comparable measures determined in accordance with IFRS. For further information on these non-IFRS financial measures, including a reconciliation of each of these non-IFRS financial measures to the most directly comparable measure calculated in accordance with IFRS, please refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca.

³ Net income is attributable to the owners of the Corporation and the non-controlling interest holders.

SOURCE Medical Facilities Corporation

Company Codes: Toronto:DR

2026

The news, reports, views and opinions of authors (or source) expressed are their own and do not necessarily represent the views of CRWE World.