Premier Health Reports a 78% Increase In Revenue for FY2020

MONTRÉAL, Dec. 18, 2020 (GLOBE NEWSWIRE) -- Premier Health of America Inc. (formerly known as Physinorth Acquisition Corporation Inc.) (TSXV: PHA) (the “Corporation”), a leading Canadian Healthtech company, announces it has filed its consolidated financial statements and MD&A for its fiscal year ended September 30, 2020.

Summary

• The Corporation achieved a 78.5% increase in revenue attributable to long-term contract renewals, changes in Quebec legislation, and an increased number of hours billed following the optimization of resources allocation.
• The increase in the average gross margin to 27.5% from 22% resulted from a more efficient geographical distribution of services rendered.
• The EBITDA⁽¹⁾ increased by 144% to $2,1M.
• The Corporation completed a major acquisition subsequently to the September 30, 2020 results.

“2020 was a period of many important milestones that we achieved while navigating through unprecedented times and I say with confidence that we surpassed our initial objectives.” Said Martin Legault, CEO of Premier Health. “These strong results and our recent major acquisition put us on an exceptional growth trajectory for 2021.”

FYE2020 Results Highlights

⁽¹⁾   Adjusted EBITDA before non-recurring items

Business Highlights

• During the year ended September 30, 2020, the Corporation provided 328,670 hours of services compared to 193,140 for the same period in 2019.
• Limitation of healthcare personnel movement between facilities to minimize cross contamination risks resulted in a stabilization of demand for personnel and a decrease in the weekly volatility of personnel placement.
• The impact of earlier renewal of governmental contracts and legislative changes in the province of Quebec continued to influence the results positively.
• The increase in activity level due to COVID-19 is expected to continue beyond 2021.

Financing Highlights

• Subsequent to September 30, the Corporation’s financed the acquisition of Code Bleu with a $10M term loan and increased its credit facility to $4M for general corporate purposes.
  

Completion of Acquisition of Code Bleu

Premier Health completed the previously announced Code Bleu acquisition on November 6 for a total consideration of C$17 million. The acquisition was financed by a $10M five year term loan bearing interest at prime rate plus 1.55%, the issuance of 6,521,740 common shares of the Corporation at $0.69 per share and a $2.5M balance of sale subject to performance objectives. Code Bleu is a prominent Quebec agency employing nurses, caregivers, dental staff and other health-related personnel. Code Bleu’s mission is to offer its various public and private partners with quality, efficient and safe services provided by its highly qualified staff. For the year ending December 31, 2019, Code Bleu generated revenues of approximately C$29.3M, an EBITDA of C$3.9M and a net income of C$2.8M.

About Premier Health

Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of staffing and outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary PSweb platform to lead the healthcare services sector digital transformation to provide patients with faster, cheaper and more accessible care services.

Non-GAAP Measures

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), is calculated as the net profit (loss), before non-recurring items such as acquisition and transaction costs, non-cash expenses (including loss from disposal of assets, impairments, amortization and depreciation), interest expense, net of interest income and income tax expense.

For Further Information Please Contact:

Mr. Jean-Robert Pronovost
Vice-President, Corporate Development
Premier Health of America Inc.
(formerly known as Physinorth Acquisition Corporation Inc.)
jrpronovost@premierhealth.ca / 514-581-1473

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Corporation’s common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Corporation assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. These factors and others are more fully discussed in the filings of the Corporation with Canadian securities regulatory authorities available at www.sedar.com.