MCI Onehealth Reports First Quarter 2021 Financial Results
Initial public offering of 6,000,000 Class A Subordinate Voting Shares raises $27.57 million in net proceeds for use in implementing the company’s strategic transformation plan
Quarterly revenue of $10.0 million recovered to within 4% of the prior high driven by adoption of telehealth and MCI Connect as well as continued strong performance from corporate health customers, enabling the Company to weather the impact of COVID-19
Within a year of their initial launch, telehealth and MCI Connect generated 38% of revenue during the quarter
Robust demand from corporate customers continues, with revenues from corporate customers up 377% to $1.3 million over the same quarter last year with the addition of 30 new customers in the quarter
Incremental year-on-year net-losses for the quarter of $2.1 million were driven by share based compensation and higher public company expenses as part of the Company’s transformation plan
TORONTO, May 13, 2021 (GLOBE NEWSWIRE) -- MCI Onehealth Technologies Inc. (“MCI”, “the Company”) (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access to and quality of healthcare, today released its financial results for the three months ended March 31, 2021. These filings and additional information regarding MCI are available for review on SEDAR at www.sedar.com.
“This quarter was a major milestone in our mission to create a high-growth technology-enabled health services provider,” said Dr. Alexander Dobranowski, CEO of MCI. “The completion of our IPO creates the conditions necessary for accretive expansion and organic growth as we continue to implement our strategic initiatives.”
For a summary of MCI’s financial and operational highlights for the quarter, please see below, as well as the more detailed information contained in the financial statements and related management discussion and analysis which are available on MCI’s SEDAR page at www.sedar.com.
First Quarter 2021 Financial Highlights
Significant financial highlights for MCI during the first quarter of 2021 included:
Quarterly Revenue: Quarterly revenue remained stable as revenue continues to recover in government insured health led by the adoption of telehealth and virtual care through MCI Connect as well as robust demand for the Company’s expanding corporate health offerings. MCI continues to weather the effects of COVID-19. Total revenue for the three months ended March 31, 2021 was $10.0 million, compared to total revenue of $10.4 million in Q1 2020.
Growth from Corporate Customers: Revenue from MCI’s corporate customers continued to see significant growth, with revenues up 377% to $1.3 million over the same quarter last year.
Liquidity: Cash and cash equivalents were $25.1 million at the end of the quarter, compared to $0.89 million in the same quarter last year, providing the capital required to pursue new acquisitions and to develop and implement the Company’s data-driven healthcare initiatives.
Net Losses: MCI experienced net losses of $2.46 million for the quarter, up $2.12 million from the same quarter in the previous year. These losses were driven primarily by an increase in public company and corporate executive expenses (up $0.8 million from Q1 2020) and share based compensation (up $1.2 million from Q1 2020) as the Company sets the stage for further growth and expansion.
First Quarter 2021 Operational Highlights
Significant operational highlights for MCI during the first quarter of 2021 included:
Initial Public Offering: On January 6, 2021, MCI completed its initial public offering (“IPO”) of 6,000,000 Class A Subordinate Voting Shares (“MCI Shares”) at a price per share of $5.00, generating net proceeds of $27.57 million. On the same day, the MCI Shares were listed for trading on the Toronto Stock Exchange.
Rapid Pre-flight COVID-19 Testing: On January 20, 2021, MCI announced it had begun conducting rapid pre-flight COVID-19 testing for Chartright pilots, flight staff and passengers at Toronto Pearson International Airport flying to destinations in the United States.
Formal Launch of MCI Connect: On February 17, 2021, MCI announced the launch of its first-of-its-kind telemedicine service in Ontario, offering patients Ontario Health Insurance Plan covered appointments through an intuitive and easy-to-use platform designed to deliver an expanded array of health services consistent with MCI’s mission of improving access and quality of healthcare.
Investment in Biotech: On March 26, 2021, MCI completed a strategic capital investment of $250,000 in Acorn Biolabs, Inc., a Toronto-based biotechnology company, and entered into a commercial relationship that will see MCI begin to offer Acorn Biolabs’ non-invasive, hair follicle stem cell collection and storage technology throughout MCI’s clinical network over the next year.
Transaction Pipeline: During the Reporting Period, the Company identified a number of potential targets for accretive acquisitions, commercial arrangements or strategic investments, including Khure Health Inc., Regen Scientific Inc. and Acorn Biolabs Inc.
Events Subsequent to First Quarter 2021
Following the end of the first quarter, MCI has continued to implement its strategic plan with a number of significant new developments, including:
On April 12, 2021, MCI announced that it had acquired 9.1% of ReGen Scientific Inc., a personalized, preventative and regenerative healthcare provider in Canada, under a share exchange agreement in exchange for the issuance of 800,000 MCI Shares and a short-term loan in the principal amount of $1 million.
On April 27, 2021, MCI announced the completion of its acquisition of all of the issued and outstanding shares of Khure Health Inc., whose technology platform harnesses clinical data, enabling physicians to rapidly screen and identify patients with rare diseases to facilitate more personalized treatment, for total consideration valued at up to $13.5 million, based on certain revenue milestones being achieved through 2023. MCI estimates Khure will accelerate this portion of its technology roadmap by 18 months.
On April 29, 2021, MCI announced a strategic capital investment of US$250,000 in Ariel Precision Medicine Inc., a U.S. based company focused on precision diagnosis and targeted therapeutics, setting the stage for a future commercial relationship between the two companies.
On May 6, 2021, MCI announced it had entered a letter of intent to acquire Terrace Wellness Group, a mental health and addictions care provider with in-person and virtual care offerings, with the expectation of EBITDA accretive opportunities when such services are added to MCI’s integrated offering to patients and employers.
Outlook
MCI expects to accelerate total company revenue growth in fiscal 2021 as it executes its strategic 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 health services provided to corporate customers, as it expands its customer base and increases the number of available service offerings.
The launch of MCI's data analytics BrightOS platform later in 2021.
New technology business ventures and acquisitions 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 and growing patient and physician base.
Execution of multiple commercial partnerships with companies in which MCI makes investments as well as research collaborations with academic institutions.
Conference Call Details
MCI will hold a conference call to discuss progress on its key strategic initiatives and financial results for the first quarter of 2021, on May 13, 2021 at 5:00 pm EDT. Participants are encouraged to access the call at least 10 minutes prior to start.
Date:Thursday May 13, 2021Time:5:00 pm Eastern Daylight TimeDuration:60 minutes Dial-in Canada/US: (833) 540-1153 (Toll-free) (918) 922-6528 (International) Conference Call ID: 9544899Webcast link: https://edge.media-server.com/mmc/p/y6vj2kdh
Selected Unaudited Financial Information Can be Found Here