GREENBROOK TMS REPORTS THIRD QUARTER OPERATIONAL AND FINANCIAL RESULTS
Greenbrook TMS reported Q3 2024 results with quarterly service revenue increasing 9% to $18.9 million compared to Q3 2023. The company saw a 3% increase in YTD revenue to $56.0 million. Despite these gains, regional operating loss increased 242% to $0.5 million in Q3. The company announced plans to close 23 Treatment Centers by end of 2024, reducing its footprint to 95 centers. The company is proceeding with its merger with Neuronetics, expected to close in December 2024, following shareholder approval and court order. The company expanded its Spravato® offering to 82 Treatment Centers and continued diversifying its treatment offerings.
Greenbrook TMS ha riportato i risultati del terzo trimestre 2024 con un aumento del 9% dei ricavi per servizi, raggiungendo 18,9 milioni di dollari rispetto al terzo trimestre 2023. L'azienda ha registrato un incremento del 3% nei ricavi da inizio anno, portandoli a 56,0 milioni di dollari. Nonostante questi guadagni, la perdita operativa regionale è aumentata del 242%, raggiungendo 0,5 milioni di dollari nel terzo trimestre. L'azienda ha annunciato piani per chiudere 23 Centri di Trattamento entro la fine del 2024, riducendo la sua presenza a 95 centri. La compagnia sta procedendo con la fusione con Neuronetics, che si prevede si concluderà a dicembre 2024, dopo l'approvazione degli azionisti e un'ordinanza del tribunale. L'azienda ha ampliato la sua offerta di Spravato® a 82 Centri di Trattamento e ha continuato a diversificare le sue offerte terapeutiche.
Greenbrook TMS reportó los resultados del tercer trimestre de 2024, con un aumento del 9% en los ingresos por servicios, alcanzando 18.9 millones de dólares en comparación con el tercer trimestre de 2023. La compañía vio un incremento del 3% en los ingresos acumulados hasta la fecha, llegando a 56.0 millones de dólares. A pesar de estas ganancias, la pérdida operativa regional aumentó un 242%, alcanzando 0.5 millones de dólares en el tercer trimestre. La compañía anunció planes para cerrar 23 Centros de Tratamiento para finales de 2024, reduciendo su presencia a 95 centros. La empresa continúa avanzando con su fusión con Neuronetics, que se espera se cierre en diciembre de 2024, tras la aprobación de los accionistas y una orden judicial. Además, la compañía amplió su oferta de Spravato® a 82 Centros de Tratamiento y sigue diversificando sus opciones de tratamiento.
그린브룩 TMS는 2024년 3분기 결과를 발표하였으며, 서비스 수익이 2023년 3분기 대비 9% 증가하여 1890만 달러에 이르렀습니다. 회사는 연초 대비 수익이 3% 증가하여 5600만 달러에 도달했습니다. 이러한 증가에도 불구하고 지역 운영 손실은 3분기 동안 242% 증가하여 50만 달러에 달했습니다. 회사는 2024년 말까지 23개의 치료 센터를 폐쇄할 계획을 발표하며, 이를 통해 95개 센터로 축소할 예정입니다. 또한, 회사는 Neuronetics와의 합병을 진행 중이며, 이는 주주 승인 및 법원 명령에 따라 2024년 12월에 마무리될 것으로 예상됩니다. 또한, 회사는 Spravato® 제공을 82개 치료 센터로 확대하고 치료 옵션을 계속해서 다양화하고 있습니다.
Greenbrook TMS a annoncé les résultats du troisième trimestre 2024, avec une augmentation de 9% des revenus de services, atteignant 18,9 millions de dollars par rapport au troisième trimestre 2023. La société a enregistré une augmentation de 3% des revenus cumulés depuis le début de l'année, portant le total à 56,0 millions de dollars. Malgré ces gains, la perte opérationnelle régionale a augmenté de 242%, atteignant 0,5 million de dollars au troisième trimestre. L'entreprise a annoncé des plans pour fermer 23 Centres de Traitement d'ici la fin de 2024, réduisant ainsi son empreinte à 95 centres. L'entreprise a également poursuivi sa fusion avec Neuronetics, qui devrait être finalisée en décembre 2024, après l'approbation des actionnaires et une ordonnance du tribunal. De plus, l'entreprise a étendu son offre de Spravato® à 82 Centres de Traitement et a continué à diversifier ses offres de traitement.
Greenbrook TMS berichtete über die Ergebnisse des dritten Quartals 2024, wobei die Dienstleistungserlöse im Vergleich zum dritten Quartal 2023 um 9% auf 18,9 Millionen Dollar gestiegen sind. Das Unternehmen verzeichnete einen Anstieg der Einnahmen von 3% auf 56,0 Millionen Dollar im laufenden Jahr. Trotz dieser Gewinne erhöhte sich der operative Verlust in der Region um 242% auf 0,5 Millionen Dollar im dritten Quartal. Das Unternehmen kündigte Pläne an, bis Ende 2024 23 Behandlungszentren zu schließen, wodurch die Zahl der Zentren auf 95 reduziert wird. Das Unternehmen setzt seine Fusion mit Neuronetics fort, die voraussichtlich im Dezember 2024 nach Genehmigung der Aktionäre und Gerichtsbeschluss abgeschlossen wird. Zudem erweiterte das Unternehmen sein Angebot an Spravato® auf 82 Behandlungszentren und diversifiziert weiterhin sein Behandlungsangebot.
- Revenue increased 9% YoY to $18.9 million in Q3 2024
- YTD 2024 revenue up 3% to $56.0 million
- Loss for the period decreased 16% to $11.0 million in Q3 2024
- New revenue stream from Compass Pathways collaboration ($1.5 million YTD)
- Regional operating loss increased 242% to $0.5 million in Q3 2024
- YTD operating loss increased 303% to $1.8 million
- Closing 23 Treatment Centers, reducing total centers from 118 to 95
- Number of patient starts decreased from 8,047 to 7,328 YoY
THIRD QUARTER 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Quarterly service revenue increased by
9% to$18.9 million $1.5 million 3% to$56.0 million $1.6 million State of New Jersey to Mr. Benjamin Klein as a result of the settlement agreement and release in Q3 2024. - The Company recognized other revenue in Q3 2024 by completing certain key milestones related to the research collaboration agreement with Compass Pathways plc, to explore delivery models for investigational COMP360 psilocybin treatment. Other revenue was
$0.2 million $1.5 million - Regional operating loss increased by
242% in Q3 2024 to$0.5 million $0.4 million 303% to$1.8 million $1.3 million - Loss for the period and comprehensive loss decreased by
16% in Q3 2024 to$11.0 million $2.1 million 6% in YTD 2024 to$33.3 million $2.0 million - The Company continued its roll-out of diversified treatment offerings to patients in Q3 2024. The Company has expanded its Spravato® offering to 82 Treatment Centers to date, its medication management offering to 11 Treatment Centers to date and its talk therapy program to Treatment Centers within
Florida andMissouri . - On August 12, 2024, the Company announced that it entered into a definitive arrangement agreement (the "Arrangement Agreement") with Neuronetics, Inc. ("Neuronetics"), in which Neuronetics will acquire all of the outstanding common shares of Greenbrook (the "Common Shares") in an all-stock transaction (the "Neuronetics Transaction"). On November 8, 2024, the Neuronetics Transaction was approved by the shareholders of the Company and the stockholders of Neuronetics, respectively. On November 15, 2024, the Company obtained a final order from the
Ontario Superior Court of Justice (Commercial List) approving the previously announced plan of arrangement in accordance with the Business Corporations Act (Ontario ). The Neuronetics Transaction is expected to close in early December 2024, subject to the satisfaction of customary closing conditions. - On November 15, 2024, the Company began a supplemental restructuring plan (the "Supplemental Restructuring Plan") in an effort to continue to accelerate its path to achieve sustainable profitability and long-term growth. As part of this initiative, the Company plans to decrease its operating footprint by closing 23 Treatment Centers by the end of 2024, allowing management to focus on its remaining 95 Treatment Centers. The Supplemental Restructuring Plan aims to leverage the scale and capabilities of the combined business with Neuronetics to further drive operational efficiencies while streamlining its focus to its most profitable Treatment Centers across
the United States .
Bill Leonard, President and Chief Executive Officer of Greenbrook, commented:
"With the imminent closing of the Neuronetics Transaction, we are excited to create a vertically-integrated organization capable of providing access to mental health treatment with significant scale in
SELECTED THIRD QUARTER FINANCIAL AND OPERATING RESULTS (1)
Selected Financial Results
(US$) (unaudited) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
Total revenue | 19,072,131 | 17,364,264 | 57,492,388 | 54,359,174 |
Regional operating loss | (505,900) | (148,119) | (1,782,512) | (442,006) |
Loss before income taxes | (11,026,865) | (13,092,397) | (33,319,328) | (35,303,906) |
Loss for the period and comprehensive loss | (11,026,865) | (13,092,397) | (33,319,328) | (35,303,906) |
Loss attributable to the common | (11,346,231) | (13,032,776) | (33,268,146) | (35,088,429) |
Net loss per share (basic and diluted) | (0.29) | (0.31) | (0.77) | (0.93) |
___ | |
Note: | |
(1) | Please note that additional selected consolidated financial information can be found at the end of this press release. |
Selected Operating Results
As at September 30, | As at December 31, | ||
(unaudited) | 2024 | 2023 | 2023 |
Number of active Treatment Centers(1) | 118 | 130 | 130 |
Number of Treatment Centers-in-development(2) | – | – | – |
Total Treatment Centers | 118 | 130 | 130 |
Number of management regions | 16 | 17 | 17 |
Number of TMS Devices installed | 260 | 261 | 260 |
Number of regional personnel | 386 | 401 | 391 |
Number of shared-services / corporate | 129 | 91 | 98 |
Number of providers(4) | 174 | 207 | 205 |
Number of consultations performed(5) | 27,237 | 26,233 | 34,124 |
Number of patient starts(5) | 7,328 | 8,047 | 10,401 |
Number of Treatments performed(5) | 234,425 | 253,876 | 343,790 |
Average service revenue per Treatment(5) | |||
________ | |
(1) | Active Treatment Centers represent Treatment Centers that have performed billable Treatment services during the applicable period. |
(2) | Treatment Centers-in-development represents Treatment Centers that have committed to a space lease agreement and the development process is substantially complete. |
(3) | Shared-services / corporate personnel is disclosed on a full-time equivalent basis. The Company utilizes part-time staff and consultants as a means of managing costs. |
(4) | Number of providers represents clinician partners that are involved in the provision of Treatment services from our Treatment Centers. |
(5) | Figure calculated for the applicable year or period ended. |
For more information, please refer to the Management's Discussion & Analysis of Financial Condition and Results of Operations and the unaudited condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2024 and 2023. These documents will be available on the Company's website at www.greenbrooktms.com, under the Company's SEDAR+ profile at www.sedarplus.com and under the Company's EDGAR profile at www.sec.gov.
About Greenbrook TMS Inc.
Operating through 118 Company-operated Treatment Centers (prior to completion of the Supplemental Restructuring Plan), Greenbrook is a leading provider of Transcranial Magnetic Stimulation ("TMS") and Spravato®, FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder ("MDD") and other mental health disorders, in
Cautionary Note Regarding Forward-Looking Information
Certain information in this press release, including, but not limited to, information with respect to the Company's future financial or operating performance, the Company's expectations regarding the closing and potential benefits of the Neuronetics Transaction and the timing thereof, expectations regarding the Supplemental Restructuring Plan and the timing and potential benefits thereof, and the continued roll-out of the Spravato®, medication management and talk therapy offerings at additional Treatment Centers and its potential to enhance profit margins and diversify total revenue, constitute forward-looking information within the meaning of applicable securities laws in
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: macroeconomic factors such as inflation and recessionary conditions, substantial doubt regarding the Company's ability to continue as a going concern due to recurring losses from operations; inability to increase cash flow and/or raise sufficient capital to support the Company's operating activities and fund its cash obligations, repay indebtedness and satisfy the Company's working capital needs and debt obligations; prolonged decline in the price of the Common Shares reducing the Company's ability to raise capital; inability to satisfy debt covenants under the Company's credit agreement (the "Credit Agreement") and the potential acceleration of indebtedness; risks related to the ability to continue to negotiate amendments to the Credit Agreement to prevent a default; risks relating to maintaining an active, liquid and orderly trading market for the Common Shares as a result of our delisting from trading on the Nasdaq Capital Market of the Nasdaq Stock Market LLC; risks related to the Company's negative cash flows, liquidity and its ability to secure additional financing; increases in indebtedness levels causing a reduction in financial flexibility; inability to achieve or sustain profitability in the future; inability to secure additional financing to fund losses from operations and satisfy the Company's debt obligations and obligations under the Arrangement Agreement; risks relating to completion of the Neuronetics Transaction or any other strategic alternatives to the Neuronetics Transaction should it fail to be consummated, including restructuring or refinancing of the Company's debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining bankruptcy protection, and the terms, value and timing of any transaction resulting from that process; risks and uncertainties related to the Neuronetics Transaction, including the timing for completion thereof, and the ability to achieve the benefits expected to be derived therefrom; claims made by or against the Company, which may be resolved unfavorably to us; risks relating to the Company's dependence on Neuronetics as its exclusive supplier of TMS devices; risks and uncertainties relating to the restatement of our financial statements for the year ended December 31, 2022 and the quarter ended September 30, 2023, including any potential litigation and/or regulatory proceedings as well as any adverse effect on investor confidence and our reputation. Additional risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in the Company's other materials filed with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission from time to time, available at www.sedarplus.ca and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(US$) (unaudited) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | ||||
Service revenue | 18,872,131 | 17,364,264 | 55,992,388 | 54,359,174 | ||||
Other revenue | 200,000 | – | 1,500,000 | – | ||||
Total revenue | 19,072,131 | 17,364,264 | 57,492,388 | 54,359,174 | ||||
Direct center and patient care costs | 10,849,656 | 10,840,776 | 33,983,480 | 33,785,962 | ||||
Regional employee compensation | 5,506,017 | 4,356,592 | 16,703,081 | 13,129,558 | ||||
Regional marketing expenses | 1,717,372 | 407,538 | 3,941,952 | 1,224,139 | ||||
Depreciation | 1,504,986 | 1,907,477 | 4,646,387 | 6,661,521 | ||||
Total direct center and regional costs | 19,578,031 | 17,512,383 | 59,274,900 | 54,801,180 | ||||
Regional operating loss | (505,900) | (148,119) | (1,782,512) | (442,006) | ||||
Center development costs | 31,929 | 137,770 | 272,650 | 355,832 | ||||
Corporate employee compensation | 3,760,881 | 3,629,623 | 11,671,760 | 11,880,351 | ||||
Corporate marketing expenses | 49,676 | 52,237 | 171,400 | 83,504 | ||||
Other corporate, general and administrative expenses | 603,817 | 1,954,017 | 2,207,278 | 7,311,213 | ||||
Share-based compensation | 51,923 | 14,740 | 111,110 | 591,470 | ||||
Amortization | 16,426 | 16,548 | 49,520 | 49,643 | ||||
Interest expense | 6,006,379 | 3,992,801 | 17,053,294 | 11,443,446 | ||||
Interest income | (66) | (64) | (196) | (165) | ||||
Gain on extinguishment of loans | – | (34,510) | – | (34,510) | ||||
Loss on device contract termination | –
| 3,181,116
| –
| 3,181,116
| ||||
Loss before income taxes | (11,026,865) | (13,092,397) | (33,319,328) | (35,303,906) | ||||
Income tax expense | – | – | – | – | ||||
Loss for the period and comprehensive loss | (11,026,865) | (13,092,397) | (33,319,328) | (35,303,906) | ||||
Loss attributable to non-controlling interest | 319,366 | (59,621) | (51,182) | (215,477) | ||||
Loss attributable to the common shareholders of Greenbrook | (11,346,231) | (13,032,776) | (33,268,146) | (35,088,429) | ||||
Net loss per share (basic and diluted) | (0.29) | (0.31) | (0.77) | (0.93) | ||||
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |
(US$) (unaudited) | ||||||||
Revenue | 19,072,131 | 20,408,067 | 18,012,190 | 19,800,561 | 17,364,264 | 17,690,449 | 19,304,461 | 20,394,124 |
Regional operating income (loss) | (505,900) | 574,370 | (1,850,982) | (141,846) | (148,119) | (419,347) | 125,460 | (824,608) |
Net loss attributable to common shareholders of Greenbrook | (11,346,231) | (12,782,245) | (9,139,670) | (19,185,873) | (13,032,776) | (12,575,402) | (9,480,251) | (56,019,542) |
Net loss per share – Basic | (0.29) | (0.28) | (0.21) | (0.45) | (0.31) | (0.31) | (0.31) | (1.90) |
Net loss per share – Diluted | (0.29) | (0.28) | (0.21) | (0.45) | (0.31) | (0.31) | (0.31) | (1.90) |
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SOURCE Greenbrook TMS Inc.
FAQ
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