Premier Health Reports 2024 Second Quarter Results

MONTRÉAL, May 23, 2024 (GLOBE NEWSWIRE) -- Premier Health of America Inc. (TSXV: PHA) (the “Corporation”), a leading Canadian Healthtech company, announces it has filed its Unaudited Quarterly Consolidated Financial Statements and MD&A for its second quarter ended on March 31^st, 2024.

⁽¹⁾ See the Corporation’s MD&A for details on these non-Gaap measures.

Summary

• First full quarter of contribution from Solutions Staffing (“SSI”).
• Adjusted EBITDA for the quarter was $2.6M ($1.9M for the same period in 2023), despite non-recurring costs of $1.4M, as described below.
• Net Loss for the quarter was $1.5M (income of $0.1M for the same period in 2023); resulting from the same non-recurring costs and higher financing costs.

Although the second quarter of 2024 benefitted from the first full quarter of contribution of SSI, it was also affected by several one-time costs. First, the Corporation recorded an additional amount of close to $0.5M in connection to the SSI transaction and transition, and another $0.5M was incurred for various legal fees. In addition, CHCA’s gross margin was adversely affected by a delay in activating its new contract with Indigenous Services Canada. Otherwise, the gross margins were in-line with expectations for the other agencies for the quarter.

The government of Quebec is moving forward with operationalizing Bill 10 and the new pricing is effective in April of 2024. To compensate the expected lower margins, PHA will be looking to increase its market share through more aggressive marketing campaigns, capturing staff from failed low-tech competitors, and capitalizing on its strong base and reputation. By leveraging technology, we also aim to reduce operating costs and streamline.

“Negotiations with the largest Quebec nurses’ union are still ongoing. The main roadblock remains the topic of flexibility requested by the government. The good news is that nurses who choose to work for staffing agencies like ours are mostly looking for such flexibility. It is only a question of time before the public system recognizes we are complementary. Meanwhile, we will continue our expansion program outside of Quebec,” said Martin Legault, CEO of Premier Health.

More information can be found in the Company’s quarterly financial statements and MD&A as available on sedarplus.ca.

About Premier Health

Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary LiPHe^® 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 excluding 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. Gross margin is either used as a number or a percentage. As a number, it means Revenues minus direct costs. When used as a percentage, it means the ratio of Revenues minus direct costs to Revenues. More detail can be found in PHA’s Management Discussion and Analysis.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This press release contains forward-looking information within the meaning of applicable securities legislation which reflects the current plans and expectations of the Corporation with respect to future events and financial performance. All statements other than statements of historical or current facts may be forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘believes’, ‘continues’, ‘expects’, ‘projects’, ‘anticipates’, ‘plans’, ‘estimates’, ‘seeks’, ‘intends’, ‘targets’, ‘forecasts’, or negative or grammatical versions thereof and other similar expressions, or future or conditional verbs such as ‘may’, ‘will’, ‘should’, ‘would’ and ‘could’. Forward-looking information in this press release includes, but is not limited to, statements with respect to the execution of the Corporation’s growth strategy. Forward-looking information is based on management’s plans, estimates, projections, beliefs and opinions as at the date of this release, and the assumptions related to those plans, estimates, projections, beliefs and opinions may change; therefore, they are presented for the purpose of assisting the Corporation’s security holders in understanding management’s views at such time regarding those future outcomes and may not be appropriate for other purposes. Although the forward-looking information contained in this release is based on assumptions which the Corporation believes are reasonable, there can be no assurance that actual results will be consistent with such forward-looking information. The forward-looking information in this release relate only to events or information as of the date on which the statements are made and, except as specifically required by applicable securities laws, the Corporation undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. There can be no assurance that the forward-looking information will prove to be accurate. 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.sedarplus.ca