Apollo Healthcare Corp. Reports First Quarter of 2021 Results

Rhea-AI Summary

Apollo Healthcare Corp. (TSX: AHC, OTC QX: AHCCF) reported Q1 2021 revenues of $51.1 million, up 10% year-over-year but down 40% from Q4 due to COVID-19 market impacts. EBITDA increased to $16.8 million from $8.4 million in Q1 2020, and adjusted EBITDA rose to $17.5 million from $5.5 million. Cash flow from operations improved significantly to $14.8 million from $4.7 million, with $45.1 million cash on hand and access to a $50 million credit line. The company repurchased 23,528 shares in Q1 under its buyback program.

Positive

• Q1 2021 revenues increased to $51.1 million, up 10% year-over-year.
• EBITDA improved to $16.8 million from $8.4 million in Q1 2020.
• Adjusted EBITDA rose to $17.5 million compared to $5.5 million in the previous year.
• Cash flow from operations significantly increased to $14.8 million.
• Company is debt-free with $45.1 million cash and access to a $50 million credit line.

Negative

• Q1 2021 revenues are down 40% compared to Q4 2020 due to COVID-19 market conditions.

Apollo Healthcare Corp. (formerly Acasta Enterprises Inc.) (TSX: AHC, OTC QX: AHCCF) (“Apollo” or the “Company”) today announced financial results for the first quarter ended March 31, 2021.

The Company’s un-audited interim financial statements for the three months ended March 31, 2021, as well as its accompanying management discussion and analysis (MD&A) have been filed on SEDAR. Copies of the filings may be obtained at www.sedar.com. All values in this news release and the Company’s financial disclosures are in Canadian dollars unless otherwise stated.

Highlights

• Revenues for the first quarter of 2021 was $51.1 million compared with $46.6 million in the comparative period. Revenues in Q1 2021 are up approximately 10% from the comparative quarter in Q1 2020. Q1 2021 revenues are down approximately 40% from Q4 2020 revenues due to supply and demand conditions related to the COVID 19 pandemic which include inconsistent demand for all products in the marketplace and additional impacts related to government imposed shut downs. The Company reminds investors that revenues and associated performance may be volatile as the Company adapts to less predictable market conditions caused by the pandemic.
• EBITDA for the first quarter of 2021 was $16.8 million compared with EBITDA of $8.4 million in the comparative period.
• Adjusted EBITDA for the first quarter of 2021 was $17.5 million compared with adjusted EBITDA of $5.5 million in the comparative period. Adjusted EBITDA removes the effects of foreign exchange and changes in fair value of financial instruments.
• Cash flow from operations in the first quarter of 2021 was $14.8 million compared to $4.7 million in the comparative period. Cash on hand increased by $14 million during the period from the $31.4 million at December 31, 2020 to $45.1 million at March 31, 2021. The Company is debt free and has access to a $50 million revolver from its commercial bank should it require additional liquidity for any accretive synergistic acquisition opportunities. The Board reviews capital allocation regularly.
• On March 3, 2021, the Company joined the OTC QX marketplace in the United States and trades under the symbol AHCCF. To qualify for OTC QX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.
• The Company repurchased and cancelled 23,528 shares under its normal course issuer bid program in the first quarter of 2021 and a total of 326,212 shares since the program commenced in 2020.

Please refer to Apollo’s MD&A for additional detail and discussion on the Company’s results from operations.

Advisories:

Cautionary Note Concerning Forward Looking Statements

This news release includes forward looking statements. All such statements constitute forward looking information within the meaning of applicable securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward looking statements include, but are not limited to statements about other anticipated future events or results, including comments with respect to Company’s future financial performance and condition. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives. A number of risks, uncertainties and other factors may cause actual outcomes or financial results to differ materially from the forward looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2020, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile. Forward looking statements contained in this news release are not guarantees of future outcomes performance and, while forward looking statements are based on certain assumptions that the Company considers reasonable, actual events could differ materially from those expressed or implied by forward looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and to not place undue reliance on forward looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, the Company does not undertake any obligation to update publicly or revise any such forward looking statements, whether as a result of new information, future events or otherwise. These cautionary statements expressly qualify all forward looking statements in this new release. In addition, past results are in part, reflective of the unique environment that existed during the past fiscal year and is no guarantee of future financial performance.

Non-IFRS Financial Performance Measures (Unaudited)

Adjusted net income (loss), EBITDA and adjusted EBITDA are not recognized measures under IFRS and this data may not be comparable to data presented by other companies.

Adjusted net income (loss) is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the exclusion of certain other income and expense items determined in accordance with IFRS. The Company believes that this generally accepted measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. Adjusted net income (loss) is intended to provide investors with information about the Company’s continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.

EBITDA is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for finance costs, current and deferred income tax, depreciation and amortization expenses. The Company believes that this measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. EBITDA is intended to provide investors with information about the Company’s continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.

Adjusted EBITDA is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the exclusion of certain other income and expense items determined in accordance with IFRS, being the calculation for adjusted net income (loss) and then further adjusting for finance costs, current and deferred income tax, depreciation and amortization expenses. The Company believes that this generally accepted measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. Adjusted EBITDA is intended to provide investors with information about the Company’s continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.

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FAQ

What were Apollo Healthcare's Q1 2021 revenue figures?

Apollo Healthcare reported Q1 2021 revenues of $51.1 million, reflecting a 10% increase from the prior year but a 40% decline from Q4 2020.

How much did Apollo Healthcare's EBITDA change in Q1 2021?

EBITDA for Q1 2021 was $16.8 million, significantly up from $8.4 million in the comparative period of 2020.

What is Apollo Healthcare's adjusted EBITDA for Q1 2021?

The adjusted EBITDA for Q1 2021 was $17.5 million, a notable increase from $5.5 million in the same quarter of 2020.

What was the cash position of Apollo Healthcare at the end of Q1 2021?

At the end of Q1 2021, Apollo Healthcare had $45.1 million in cash and no debt.

How many shares did Apollo Healthcare repurchase in Q1 2021?

Apollo Healthcare repurchased and cancelled 23,528 shares under its normal course issuer bid program in Q1 2021.