First Quarter 2023 Highlights
Akumin delivered first quarter same-store volume performance on a consolidated basis as follows:- +4.0% for MRI
- +16.1% for PET/CT
- +7.6% for Oncology Patient Starts
- The Company reported revenue totaling
$187.6 million for the first quarter, a$1.3 million or 1% increase over the first quarter of last year. - Net loss was
$29.2 million for the first quarter, an increase in net loss of$2.8 million , compared to the prior year period. Akumin generated$33.1 million of Adjusted EBITDA* (as defined below) for the first quarter, a$1.1 million or 4% increase over the first quarter of last year.
*For a reconciliation of Adjusted EBITDA, which is a non-GAAP measure, to the most directly comparable GAAP financial measure, please see "Reconciliation of Non-GAAP Financial Measures".
Summary Consolidated Financial Results (in thousands, except for per share amounts)
3-month period | 3-month period | |
MRI Scans | 217 | 214 |
PET-CT Scans | 36 | 32 |
Oncology Patient Starts | 2.610 | 2.544 |
Revenue | ||
Net Loss | ( | ( |
Adjusted EBITDA (1) | ||
EPS –Diluted |
(1) See "Non-GAAP Measures" below. |
Commenting on the quarterly results,
"We experienced a return of organic growth in MRI procedure volumes, as clinical labor shortages have moderated, and impressive growth in our PET/CT volumes driven by an expansion of clinical applications and the development of new tracers. This organic growth in our radiology segment more than offset the year-over-year revenue losses we experienced in the quarter.
"Following the completion of a comprehensive review and repositioning of our oncology business in 2022, our renewed focus on this segment is now delivering intended results and was in line with our budget in the first quarter. We continue to believe oncology will be a strong driver of growth for
"We have continued our integration initiatives in the first quarter as we seek to realize our next phase of synergies by rationalizing business processes, consolidating IT systems, and leveraging our scale to reduce maintenance and service costs. As previously stated, we expect these initiatives to result in more than
"We are encouraged by our operating and financial performance in the first quarter and remain confident in our ability to achieve our financial guidance for 2023", Zine concluded.
Unless otherwise indicated, all amounts are expressed in
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About
Non-GAAP Measures
This press release refers to certain non-GAAP measures. These non-GAAP measures are not recognized measures under
There is unlikely to be comparable or similar measures presented by other companies. Rather, these non-GAAP measures are provided as additional information to complement those GAAP measures by providing further understanding of our results of operations from management's perspective. Accordingly, these non-GAAP measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under GAAP. We use non-GAAP financial measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin" (each as defined below). These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP measures. We believe the use of these non-GAAP measures, along with GAAP financial measures, enhances the reader's understanding of our operating results and is useful to us and to investors in comparing performance with competitors, estimating enterprise value, and making investment decisions. We also believe that securities analysts, investors, and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management uses non-GAAP measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Reconciliations of non-GAAP measures to the relevant reported measures can be found in "Reconciliation of Non-GAAP Financial Measures" and in our Form 10-Q filed
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) before interest expense (net), income tax expense (benefit), and depreciation and amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for impairment charges, restructuring charges, severance and related costs, settlements and related costs (recoveries), stock-based compensation, loss (gain) on sale of accounts receivable, losses (gains) on disposal of property and equipment, acquisition-related costs, financial instrument revaluation adjustments, deferred rent expense, other losses (gains), and one-time adjustments.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the total revenue in the period.
Forward-Looking Information
Certain information in this press release constitutes forward-looking information or forward-looking statements. In some cases, but not necessarily in all cases, such statements or information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by
Selected Consolidated Financial Information
(in thousands) | Three-month period ended | Three-month period ended | $ Change | % Change |
Revenue | $ 187,592 | $ 186,263 | $ 1,329 | 1 % |
Employee compensation | 71,527 | 75,127 | (3,600) | -5 % |
Third party services and professional fees | 30,829 | 29,177 | 1,652 | 6 % |
Rent and utilities | 12,341 | 12,477 | (136) | -1 % |
Reading fees | 11,599 | 11,498 | 101 | 1 % |
Administrative | 10,421 | 11,624 | (1,203) | -10 % |
Medical supplies and other expenses | 18,850 | 15,258 | 3,592 | 24 % |
Depreciation and amortization | 22,993 | 24,731 | (1,738) | -7 % |
Restructuring charges | 5,736 | 80 | 5,656 | n/m |
Severance and related costs | (49) | 2,238 | (2,287) | -102 % |
Settlements, recoveries and related costs | 1,448 | (137) | 1,585 | -n/m |
Stock-based compensation | 399 | 1,061 | (662) | -62 % |
Other operating income, net | (751) | (7) | (744) | n/m |
Interest expense | 30,697 | 28,681 | 2,016 | 7 % |
Other non-operating expense (income), net | (132) | 324 | (456) | -141 % |
Loss before income taxes | (28,316) | (25,869) | (2,447) | 9 % |
Income tax expense | 874 | 563 | 311 | 55 % |
Non-controlling interests | 5,958 | 4,379 | 1,579 | 36 % |
Net loss attributable to common stockholders | 14 % |
Reconciliation of Non-GAAP Financial Measures
(in thousands) | Three-month period ended | Three-month period ended |
Net loss | $ (29,190) | $ (26,432) |
Income tax expense | 874 | 563 |
Depreciation and amortization | 22,993 | 24,731 |
Interest expense | 30,697 | 28,681 |
EBITDA | 25,374 | 27,543 |
Adjustments: | ||
Restructuring charges | 5,736 | 80 |
Severance and related costs | (49) | 2,238 |
Settlements, recoveries and related costs | 1,448 | (137) |
Stock-based compensation | 399 | 1,061 |
Loss on sale of accounts receivable | 124 | - |
Loss (gain) on disposal of property and equipment, net | (69) | 202 |
Acquisition-related costs | 143 | 382 |
Fair value adjustment on derivative | (43) | 170 |
Deferred rent expense(1) | 185 | 332 |
Other, net | (107) | 147 |
Adjusted EBITDA | $ 33,141 | $ 32,018 |
Revenue | 187,592 | 186,263 |
Adjusted EBITDA Margin(2) | 18 % | 17 % |
(1) Deferred rent expense is defined as operating lease cost less operating cash flows from operating leases and adjusted for any prepayments or related items. |
(2) Adjusted EBITDA Margin is computed by dividing Adjusted EBITDA by the total revenue in the period. |
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