Apollo Healthcare Corp. Reports Second Quarter of 2021 Results

Rhea-AI Summary

Apollo Healthcare Corp. (AHCCF) reported second quarter financials for 2021, showcasing revenues of $33.9 million and EBITDA of $10 million. The Company's total revenues for the first half reached $97.8 million, with an adjusted EBITDA of $27.8 million. Apollo remains debt-free with cash reserves of $39.5 million and has access to a $50 million credit facility. The Board has approved plans to repurchase up to 3.6 million shares, reinforcing commitment to shareholder value. The firm aims to enhance its global footprint via strategic acquisitions and operational efficiencies.

Positive

• Revenue growth: $33.9 million in Q2, $97.8 million for the first half of 2021.
• Adjusted EBITDA of $10.4 million in Q2 and $27.8 million for the six months.
• Debt-free with cash reserves of $39.5 million and access to a $50 million credit line.
• Plan to repurchase 3.6 million shares to enhance shareholder value.
• Focus on strategic acquisitions to complement organic growth.

Negative

• None.

Apollo Healthcare Corp. (TSX: AHC, OTC QX: AHCCF) (“Apollo” or the “Company”) today announced financial results for the second quarter ended June 30, 2021.

The Company’s unaudited interim financial statements for the three and six months ended June 30, 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 were $33.9 million and $97.8 million and EBITDA was $10 million and $26.8 million in the three and six months ended June 30, 2021, respectively. Demand for product is normalizing to historically elevated levels and is expected to accelerate into fiscal 2022.
• Adjusted EBITDA of $10.4 million and $27.8 million in the three and six months ended June 30, 2021. Adjusted EBITDA removes the effects of foreign exchange and changes in fair value of financial instruments.
• The Company is focused on global expansion through its best in class operational efficiencies, its innovative product pipeline, and its reliable and sustainable supply chain leadership which are foundational to its client support and service excellence.
• The Company is debt free, had cash of $39.5 million at June 30, 2021 quarter-end and has access to a $50 million revolver from its commercial bank which may be utilized for any corporate development or operational initiatives.
• The Company is actively pursuing strategic acquisitions that are accretive to shareholder value and that are complementary to its organic growth strategies. Apollo has retained a global leading advisory firm to progress this objective.
• The Board has approved the Company applying to the TSX to renew its normal course issuer bid to purchase and cancel up to 3.6 million shares which represents 5% of the current issued and outstanding shares. The Company has already acquired 326,212 shares at an average price of $3.49 under its previous normal course issuer bid which expired in July 2021.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210813005411/en/

FAQ

What were Apollo Healthcare's revenues for Q2 2021?

Apollo Healthcare reported revenues of $33.9 million for Q2 2021.

What is the adjusted EBITDA for Apollo Healthcare in Q2 2021?

The adjusted EBITDA for Apollo Healthcare in Q2 2021 was $10.4 million.

How much cash does Apollo Healthcare have as of June 30, 2021?

As of June 30, 2021, Apollo Healthcare had cash reserves of $39.5 million.

What is Apollo Healthcare's strategy for shareholder value?

Apollo Healthcare plans to repurchase up to 3.6 million shares to enhance shareholder value.

How is Apollo Healthcare planning to grow its business?

Apollo Healthcare is focusing on global expansion through acquisitions and operational efficiencies.