MCI Onehealth Announces Solid Finish to Fiscal 2020 with Positive Adjusted EBITDA in Q4-2020
MCI achieved stronger than expected revenue and Adjusted EBITDA in Q4-2020 led by the 700%+ growth from corporate customers and adoption of telehealth
Corporate customer revenues more than tripled from 3% to 11% year-on-year
MCI quarterly revenues of $11.0 million in Q4-2020 have recovered to within 10% of their prior peak from the COVID lows in Q2-2020
Use of telehealth and virtual technologies was instrumental to driving the recovery in MCI’s government insured health services and generated over $10 million in revenue in 2020 from virtually no revenue in 2019 and now represents over 50% of visits
Net proceeds of approximately $26.7 million from the recently completed Initial Public Offering (IPO) underpin MCI’s transformation to a high growth, high margin technology enabled health services company
MCI’s pipeline of acquisitions, investments and partnership opportunities more than doubled to 11 since the IPO
MCI expects robust closure activity on acquisitions, investments and partnerships during Q2-2020 to accelerate revenue growth as the Company executes its transformation plan
TORONTO, March 30, 2021 (GLOBE NEWSWIRE) -- MCI Onehealth Technologies Inc. ("MCI Onehealth" or the “Company”) (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access and quality of healthcare, announced today its fourth quarter and annual financial results for the three and twelve months ended December 31, 2020.
Dr. Alexander Dobranowski, CEO of MCI Onehealth commented, “MCI Onehealth is advancing on its mission to leverage technology and improve access, quality and affordability of primary care in Canada. We exceeded our fourth-quarter and full-year 2020 expectations and now see strong momentum in 2021 as we execute on our core strategic initiatives.”
Fiscal 2020 Annual Financial Highlights
Total revenue for the year ended December 31, 2020 was $38.6 million, compared to total revenue of $46.1 million for the prior year, which was at the high end of the Company’s expectation exiting 3Q-2020. The annual revenue decline of 21% was driven by a reduction in patient volumes, which was partially offset by higher average revenue per patient visit and the substantial increase in non-government insured services
Revenue from MCI Onehealth’s Corporate customers achieved revenues of $3.4 million compared to $1.4 million in the prior year representing 9% of revenue during the year compared with 3% in the prior year
MCI Onehealth’s Adjusted EBITDA margins increased to 11.7% in fiscal 2020 from 8.2% in fiscal 2019 driven by the higher mix of Corporate customers and subsidies from the Government of Canada’s Canada Emergency Wage Subsidy (CEWS) and Canada's Emergency Commercial Rent Assistance Programs (CECRA)
Removing the positive impact of the CEWS and CECRA programs, MCI Onehealth still generated positive Adjusted EBITDA in 2020 illustrating the Company’s resilience and strong cost control measures during a difficult environment
Fourth Quarter 2020 Financial Highlights
Total revenue for the quarter ended December 31, 2020 was $11.0 million, compared to total revenue of $12.0 million in 4Q-2019. The 8% decline was driven by a reduction in patient volumes, which was partially offset by higher average revenue per patient visit and the 700+% increase in Corporate customer revenue over 4Q-2019
Adjusted EBITDA of $0.3 million was stronger than expected as stronger revenues and the richer mix of higher margin Corporate Health Services more than offset the additional corporate overhead associated with recent senior officer additions associated with the Company’s transformation plan
Events Subsequent To December 31, 2020
On January 6, 2021, the Company completed its initial public offering raising net proceeds of $26.7 million after fees and expenses
On March 26, 2021, the Company invested $250,000 to purchase an interest in Acorn Biolabs, Inc. through a Simple Agreement for Equity (SAFE) instrument issued by Acorn Biolabs, Inc.
Outlook
MCI Onehealth expects to accelerate total company revenue growth in fiscal 2021 as it executes its transformation plan on multiple fronts including:
Organic growth of government insured health services from its omnichannel network of clinics, telehealth and the MCI Connect virtual platform
Continued rapid organic growth in Corporate Health services as it expands its customer base and increases the number of service offerings to its customers
The launch of the Company’s data analytics BrightOS platform later in 2021
Acquisitions of technology to accelerate its technology roadmap
Acquisitions of specialty clinics to expand its health service offerings and enter new markets by leveraging technology to deliver more services to its large patient and physician base
Execution of multiple commercial partnerships with companies in which the Company makes investments as well as research collaborations with academic institutions
MCI Onehealth will hold a conference call to discuss progress on its key strategic initiatives and financial results for the Fourth Quarter and Fiscal Year 2020, on Tuesday March 30, 2021 at 4:45pm EST. Participants are encouraged to access the call at least 10 minutes prior to start.
Conference Call Details Date: Tuesday March 30, 2021 Time: 4:45pm Eastern Standard TimeDuration: 60 minutes Dial-in Canada/US: (833) 540-1153 (Toll-free) (918) 922-6528 (International)Conference Call ID: 2629139 Webcast link: https://edge.media-server.com/mmc/p/tpqozawb
Selected Unaudited Financial Information can be found here