- Skylight Health is a US healthcare services and technology company providing multi-disciplinary care to over 135,000 patients across 15 states
- In 2020, the Company announced 5 new clinical acquisitions representing 4 new US markets, over 50,000 new patients and adds aggregate annualized revenue of approximately $13 million and EBITDA of $2.5 million
- The Company has validated its model of strategic clinical acquisitions at 3-7x EBITDA with aggressive plans for organic growth through existing primary care and sub-specialty services
- Over 2020, the Company completed 3 financings including 2 bought deals raising over $22 million with participation from over 11 institutions in Canada and the United States.
- The Company exits 2020 with no long-term debt and strong cash balance to execute towards a robust and growing acquisition pipeline.
- Skylight Health Received Conditional Approval of TSX Venture Listing and expects to commence trading in early January 2021 under the symbol “SHG.V”.
- In the US, the Company began trading under the new OTCQX Ticker “SHGFF” in December, upgrading from the OTCQB.
TORONTO, Dec. 31, 2020 (GLOBE NEWSWIRE) -- Skylight Health Group Inc (CSE:SHG; OTCQX:SHGFF) (“SHG” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to provide shareholders with a 12-month overview of accelerating revenue and profitability in 2020.
The US healthcare market represents a multi-trillion-dollar opportunity ripe for disruption. Skylight has a hybrid approach to healthcare delivery. In-clinic services to support patient needs where standards of care require the physical presence of a health care provider; and virtual telemedicine to support patients who may not need to travel or further expose themselves by receiving the same quality of care from the comfort of their home. With a multi-disciplinary approach, the Company brings primary care, sub-specialty, allied health & wellness and laboratory/diagnostic services under one roof.
Skylight operates an organic growth strategy on the back of a growth-by acquisition model. Acquisitions are attractively priced between 3 to 7 times EBITDA or in some cases, less than 1 times revenue. The Company has already demonstrated its ability to target, qualify and acquire with over 5 transactions in the last 60 days. At any given time, there are more than 200 potential acquisition opportunities in the market throughout the US that are seen as an ideal addition to Skylight Health. The Company believes this pathway to growth will continue to result in growth opportunities that are accretive to its core clinical offerings and add immediate revenue and positive EBITDA.
Incremental to each acquisition, the Company employs a proven multi-disciplinary platform backed by 25+ years of founder led clinical management expertise, to enhance the existing base of clinical revenue and broaden the offerings available within each clinic. The Company’s clinic network will offer primary care services. Additional services will be based on each population set in each region and will complement the healthcare needs of patients.
The Company also operates a disruptive subscription-based telemedicine offering for un/under-insured patients at US$199/year that enables access to over 40 million Americans who cannot access healthcare due to the high-cost barrier.
As the Company looks forward to 2021, the roadmap will be to execute against its 3-pronged growth model which include growth by way of strategic acquisition, organic growth within each clinical practice and expansion of its subscription-based service.
Prad Sekar, CEO, Skylight Health said “2020 has been nothing short of a transformative year for the Company. Delivering adjusted EBITDA positivity, strengthening of our balance sheet with cash and extinguishing long-term debt, and adding strong revenue and profitability growth as we exit 2020 should make all of us at Skylight and amongst our shareholders and other stakeholders feel proud and excited for the year ahead. We are certainly looking forward to building on this momentum and further strengthening our position in the US market for 2021. We thank all our stakeholders for their continued support. Best wishes and Happy New Year!”
About Skylight Health Group
Skylight Health Group (CSE:SHG; OTCQX:SHGFF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. With a patient roster of over 120,000 patients, the Company’s operations servicing 15 states and continues to expand in services and locations both organically and by way of strategic acquisitions.
The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid, and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.
For more information, please visit www.skylighthealthgroup.com or contact:
Investor Relations
Jonathan L. Robinson CFA
Oak Hill Financial
jrobinson@oakhillfinancial.ca
416-669-1001
Currency Usage, Cautionary and Forward-Looking Statements
All currency contained in this Press Release represent Canadian Dollars unless otherwise stated.
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Skylight Health's filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding the Company's unaudited financial results and projected growth.
Although Skylight Health has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: the ability of Skylight Health to execute on its business strategy, continued revenue growth in accordance with management’s expectations, operating expenses continuing in accordance with management expectations, dependence on obtaining regulatory approvals; Skylight Health being able to find, complete and effectively integrate target acquisitions; change in laws relating to health care regulation; reliance on management; requirements for additional financing; competition; hindering market growth or other factors that may not currently be known by the Company.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Skylight Health disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Skylight Health does not assume any liability for disclosure relating to any other company mentioned herein.
Non-GAAP Financial Measures
This Press Release contains references to Adjusted EBITDA and Gross Margin. These financial measures are not measures that have any standardized meaning prescribed by IFRS and are therefore referred to as non-GAAP measures. The non-GAAP measures used by the corporation may not be comparable to similar measures used by other companies. Adjusted EBITDA is defined as “income (loss) before interest expenses, taxes, expenses related to listing on the Canadian Securities Exchange, depreciation, foreign exchange and financial expenses.
The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company’s definition of these metrics may differ from those of other businesses. Skylight Health will, at times, use certain non-GAAP financial measures to provide readers with additional information in order to assist investors in understanding our financial and operating performance. Skylight Health believes that these non-GAAP measures provide readers with useful information about the Company’s operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
Adjusted EBITDA excludes the effect of share-based compensation expenses and related payroll taxes as well as removes substantial one-time costs for unusual business activities. Additional discussion on this can be found in the Skylight Health Management Discussion and Analysis filed on SEDAR.
Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with IFRS. See the Company’s audited Financial Statements for a reconciliation of the non-GAAP measures.
No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.