Jack Nathan Health Announces Its Q3 Fiscal 2024 Financial Results

Rhea-AI Summary

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) announced a 16% overall growth in revenue for the third quarter of fiscal 2024, reaching 13,735,214 in nine months ended October 31, 2023. The company expanded to 240 locations globally, with significant clinic operations revenue increase driven by strategic partnership with Walmart. Despite the growth, the company suffered a slight increase in operating loss due to substantial increase in acquisition-related cost and debenture interest.

Positive

• 16% overall growth in revenue
• Expansion to 240 locations globally
• Strategic partnership with Walmart driving significant clinic operations revenue increase

Negative

• Slight increase in operating loss due to substantial increase in acquisition-related cost and debenture interest

• 16% Overall growth in revenue
• The Company expanded to 240 locations globally (179 corporately owned and operated)

TORONTO--(BUSINESS WIRE)-- Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”) announced today its unaudited interim consolidated financial results for the third quarter of fiscal 2024, nine months ended October 31, 2023. Jack Nathan Health’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Management Commentary

Commenting on the Company’s performance and outlook, Dr. Glenn Copeland, Chairman and Chief Executive Officer stated, “We continue to produce tremendous results with 16% growth in revenue year over year. The Company is well financed and well-staffed both in Canada and Mexico to enter the next phase of its growth.”

Marcy Herriman, Chief Operating Officer added: “The growth the Company has experienced has been due to the hard work of both the Canadian and Mexican operations team. I am humbled to lead such a strong, talented group of individuals.”

Bharat Choudhary, Chief Financial Officer added: “I am excited to be part of this great organization. The growth demonstrated by the current leadership team, the opportunity that lies ahead, and the strong partnership with Wal-mart are the right ingredients for the recipe for success.”

Financial Highlights for the Three and Nine Months Ended October 31, 2023

Operating Results

		Three months ended October 31				Nine months ended October 31
		2023		2022		2023		2022
		$		$		$		$
Revenues		4,939,616		4,278,029		13,735,214		11,802,010
Total operating expenses		(6,517,702)		(5,139,163)		(17,573,785)		(15,239,422)
Loss from operations		(1,578,086)		(861,134)		(3,838,571)		(3,437,412)
Other income (expense)		(475,680)		41,951		(541,725)		(59,379)
Net loss before income taxes		(2,053,766)		(819,183)		(4,380,296)		(3,496,791)

For the three months ended October 31, 2023, total revenues were $4,939,616 (2022 - $4,278,029), an increase of $661,587 or 15%. For the nine months ended October 31, 2023, total revenues were $13,735,214 (2022 - $11,802,010), an increase of $1,933,204 or 16% compared to the nine-month period of last fiscal year. The Company saw significant growth in revenues driven from its clinic operations.

Clinic operations revenues of $4,246,386 accounted for 86% of total revenues for the three months ended October 31, 2023, compared to $3,260,969 or 76% of revenues for the three months ended October 31, 2022. For the nine months ended October 31, 2023, clinic operations revenues of $11,653,262 accounted for 85% of total revenues compared to $9,359,758 or 79% of revenues for the nine months ended October 31, 2022. The increase in clinic operations is aligned with the Company’s strategic plan of expanding corporate-owned and operated medical centers with strategic partner Walmart.

The loss from operations for the nine months ended October 31, 2023, was $3,838,571 (2022 - $3,437,412) representing a slight increase in operating loss of $401,159. Even with 16% overall revenue growth, the Company suffered a slight increase in operating loss due to substantial increase in acquisition related cost and Debenture interest during this quarter. Apart from these increased expenses, the Company was able to achieve the following: i) the Company experienced a 16% growth in revenues compared to the same period last year, ii) operating expenses were 128% of revenues in the current period compared to 130% in the same period last year, iii) the Company reduced certain expenses such as professional fees, license fees, development fees, and consulting fees, iv) while variable operating expenses such as clinic supplies, salaries and wages, etc. increased, the Company was more efficient in generating revenues for every $1 of operating expense incurred.

Balance Sheet as of October 31, 2023

• Cash of $5.28 million (January 31, 2023 - $1.46 million)
• Total assets of $11.91 million (January 31, 2023 - $6.45 million)
• Total liabilities of $16.75 million (January 31, 2023 - $8.32 million)

Shares Outstanding

As of December 12, 2023, the Company had 87,099,159 common shares outstanding, 5,415,000 stock options outstanding, 8,750,000 RSUs outstanding and 502,506 DSUs outstanding.

The Company also has outstanding a secured convertible debenture in the principal amount of $8,000,000, which is held by Wal-Mart Canada Corp. (“Wal-Mart”). Subject to earlier conversion, the Debenture will mature on July 20, 2026. The principal amount outstanding under the debenture is convertible, at the option of Wal-Mart, into units of the Company at a price of $0.105 per unit. Each such unit shall consist of one common share of the Company and one warrant, with each such warrant entitling the holder to purchase one common share of the Company at an exercise price of $0.105 until the date that is three years following the date of issue of such warrant.

Corporate Update

The Company reports that Geoffrey Farr has been appointed Corporate Secretary of the Company. Mr. Farr is a partner of the law firm Dickinson Wright LLP, which acts as counsel to the Company. He practices corporate and securities law, and has acted as Corporate Secretary for a number of Canadian public companies.

For further information regarding the Company’s financial results for Q3 fiscal 2024, please refer to the unaudited interim consolidated financial statements of the Company for the three and nine months ended October 31, 2023 together with the corresponding MD&A, available at www.sedarplus.ca and the JNH website https://www.jacknathanhealth.com

About Jack Nathan Medical Corp.

Jack Nathan Medical Corp., operating as Jack Nathan Health®, is one of Canada’s largest healthcare networks. Jack Nathan Health® is an innovative healthcare company that is improving access for millions of patients by co-locating physician and ancillary medical services conveniently located inside Walmart® stores.

Jack Nathan Health® provides an exceptional level of patient care, made possible through patient-centric physicians, a variety of medical services, technology, and programs, designed to put patients first. Our mission is to provide everyone access to the finest quality retail medical centers, with both in-clinic physicians and digital telemedicine, so you and your loved ones can “Live Your Best Life”.

Jack Nathan Health® was established in 2006 and continues to expand its international footprint, delivering exceptional, state-of-the-art, turn-key medical centers. In Canada, the Company has 78 clinics in Walmart locations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec and 3 independent locations for a total of 81 clinics. There are currently 20 corporate owned and operated clinics of which 4 include Rehab services and 5 include MedSpa services. In Mexico, the Company has 154 corporate owned and operated clinics in Walmart locations, 4 Clinics inside Walmart Distribution Centers servicing Walmart Associates, and 1 Multidisciplinary clinic. During this quarter, Jack Nathan Health, Mexico started operation of its first medical center in Mexico City.

For more information, visit www.jacknathanhealth.com or www.sedarplus.ca.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Appendix:

Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Jack Nathan are intended to identify forward- looking information. All statements other than statements of historical fact may be forward- looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to them, and are subject to certain risks, uncertainties, and assumptions Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include but are not limited to: changes in economic conditions or financial markets; increases in costs; litigation; legislative and other judicial, regulatory, political, and competitive developments; the economic and business impact of COVID-19 and operational difficulties. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward- looking information. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward- looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward- looking information, other than as required by applicable law.

Source: Jack Nathan Medical Corp.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231212291685/en/

Jack Nathan Medical Corp., Bharat Choudhary, Chief Financial Officer, 416-637-2240

Source: Jack Nathan Medical Corp.

FAQ

What is the revenue growth percentage for Jack Nathan Medical Corp. for the third quarter of fiscal 2024?

The revenue growth for the third quarter of fiscal 2024 was 16%.

How many locations has Jack Nathan Medical Corp. expanded to globally?

The company has expanded to 240 locations globally.

What is the strategic partnership driving significant clinic operations revenue increase for Jack Nathan Medical Corp.?

The strategic partnership with Walmart is driving significant clinic operations revenue increase for the company.

What caused the slight increase in operating loss for Jack Nathan Medical Corp. despite the overall growth in revenue?

The company suffered a slight increase in operating loss due to substantial increase in acquisition-related cost and debenture interest.