PLANTATION, Fla., Aug. 9, 2022 /PRNewswire/ - Akumin Inc. (NASDAQ:AKU) (TSX:AKU) ("Akumin" or the "Company"), a national partner of choice for U.S. hospitals, health systems and physician groups with comprehensive solutions addressing outsourced radiology and oncology service line needs, announced today its financial results for the quarter ended June 30, 2022.
Second Quarter 2022 Highlights
- Akumin's radiology business delivered strong quarterly same store volume performance on a consolidated pro forma basis, which assumes the Company's acquisition of Alliance HealthCare Services, Inc. ("Alliance") was completed as of January 1, 2021:
- +2.0% for MRI
- +6.4% for PET/CT
- +4.5% for Total Radiology Procedures
- (1.4%) for Oncology Patient Starts
- The Company reported revenue totaling $192.1 million for the second quarter, a $122.6 million or 176.5% increase over the second quarter of last year. The increase is significantly attributable to the Company's acquisition of Alliance on September 1, 2021. On a sequential basis, revenue increased $5.9 million or 3.1% over the first quarter of 2022.
- The Company's net loss was $26.1 million compared to a net loss of $6.9 million in the second quarter of last year. Basic and diluted loss per share was $0.34 for the second quarter of 2022. This compares with a basic and diluted loss per share of $0.10 for the second quarter of 2021.
- Akumin generated $38.2 million of Adjusted EBITDA (as defined below) for the quarter, a $26.0 million or 212.7% increase over the second quarter of last year. On a sequential basis, Adjusted EBITDA increased $6.2 million or 19.3% over the first quarter of 2022.
Commenting on the second quarter results, Riadh Zine, Chairman and Chief Executive Officer of the Company, said, "We are very pleased that our financial results in the quarter once again exceeded consensus street estimates demonstrating the strength, scale and resilience of our business, notwithstanding the significant management effort and resources allocated to our integration initiatives and the challenges facing our industry including cost inflation, labor shortages and disrupted supply chains."
"Our commitment to achieving previously disclosed synergy estimates was clearly evident in the second quarter based on the magnitude of restructuring charges and related severance costs incurred during the quarter. Our integration efforts, combined with our organic growth, resulted in continued Adjusted EBITDA margin expansion and we anticipate further benefits to our financial results in future periods," Zine continued.
"Given the progress we made in the quarter to streamline our business, we remain confident that we will be able to achieve our 2022 financial guidance and objectives despite a reduction in planned capital expenditures. Akumin remains focused on its vision to deliver patient-centered innovation, clinical standardization and exceptional healthcare value to our patients and health system and hospital partners," Zine concluded.
Unless otherwise indicated, all amounts are expressed in U.S. dollars. Certain financial measures, including those expressed on an adjusted basis, are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliation of Non-GAAP Measures" included in this press release for further details.
Investor Presentation
Akumin would like to invite interested parties to an investor presentation to be held on Wednesday, August 10, 2022 from 8:30 a.m. to 9:30 a.m. Eastern Time where management will discuss second quarter results.
Conference call details:
Date: 8:30a.m. Eastern Time, Wednesday, August 10, 2022
Click to join by phone: https://akum.in/Q2-2022-Results-Audio Access via webcast: https://akum.in/Q2-2022-Results-Webcast To show dial-In number: https://akum.in/Q2-2022-Results-Dial-In-Numbers
A related presentation will be available from Akumin's website (www.akumin.com) and at https://akumin.com/investor-relations/events-presentations/. Participants are asked to connect at least 10 minutes prior to the beginning of the call to ensure participation. The webcast archive will be available for 90 days. A replay of the presentation will also be available by calling 1-888-203-1112, or 647-436-0148 for international callers, using passcode 3787518.
About Akumin
Akumin is a national partner of choice for U.S. hospitals, health systems and physician groups with comprehensive solutions addressing outsourced radiology and oncology service line needs. Akumin provides (1) fixed-site outpatient diagnostic imaging services through a network of owned and/or operated imaging locations; and (2) outpatient radiology and oncology services and solutions to approximately 1,000 hospitals and health systems across 48 states. By combining clinical and operational expertise with the latest advances in technology and information systems, Akumin facilitates diagnosis and treatment for patients and their providers. Akumin's imaging procedures include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET and PET/CT), ultrasound, diagnostic radiology (X-ray), mammography, and other related procedures; our cancer care services include a full suite of radiation therapy and related offerings. For more information, visit www.akumin.com.
Non-GAAP Measures
This press release refers to certain non-GAAP measures. These non-GAAP measures are not recognized measures under United States generally accepted accounting principles ("GAAP") and do not have a standardized meaning prescribed by GAAP. These non-GAAP measures are provided as additional information to complement those GAAP measures by providing further understanding of our results of operations from management's perspective. Accordingly, these non-GAAP measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under GAAP. We use non-GAAP financial measures, including "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin" (each as defined below). These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP measures. We believe the use of these non-GAAP measures, along with GAAP financial measures, enhances the reader's understanding of our operating results and is useful to us and to investors in comparing performance with competitors, estimating enterprise value, and making investment decisions. We also believe that securities analysts, investors, and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management uses non-GAAP measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. The non-GAAP measures used by us are susceptible to varying methods of calculation and may not be comparable to other similarly titled measures of other companies. Reconciliations of non-GAAP measures used to the most comparable GAAP measures are included in this release in the tables which follow.
We define such non-GAAP measures as follows:
"EBITDA" means net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization.
"Adjusted EBITDA" means EBITDA, as further adjusted for restructuring charges, severance and related costs, settlements and related costs (recoveries), stock-based compensation, losses (gains) on disposal of property and equipment, acquisition-related costs, financial instrument revaluation adjustments, gain on conversion of debt to equity investment, deferred rent expense, impairment charges, other losses (gains), and one-time adjustments.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by the total revenue in the period.
Forward-Looking Information
Certain information in this press release constitutes forward-looking information or forward-looking statements. In some cases, but not necessarily in all cases, such statements or information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 16, 2022, as amended by Amendment No. 1 to the Annual Report on Form 10-K, filed with the SEC on April 12, 2022 and the "Risk Factors" section of our Quarterly Report on Form 10-Q for the period ended June 30, 2022, filed with the SEC on August 9, 2022, all of which are available at www.sec.gov. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Selected Consolidated Financial Information
(in thousands, except | Three months | Three months |
$ Change |
% Change |
Revenue | $192,128 | $69,496 | $122,632 | 176 % |
Employee compensation | 72,021 | 23,792 | 48,229 | 203 % |
Third party services and professional fees | 29,919 | 7,758 | 22,161 | 286 % |
Rent and utilities | 12,742 | 7,662 | 5,080 | 66 % |
Reading fees | 11,788 | 10,860 | 928 | 9 % |
Administrative expenses | 11,467 | 4,829 | 6,638 | 137 % |
Medical supplies and other expenses | 16,637 | 2,867 | 13,770 | 480 % |
Depreciation and amortization | 25,200 | 4,584 | 20,616 | 450 % |
Restructuring charges | 7,244 | - | 7,244 | nmf |
Severances and related costs | 5,559 | - | 5,559 | nmf |
Settlements, recoveries and related costs | 814 | (318) | 1,132 | (356 %) |
Stock-based compensation | 758 | 785 | (27) | (3 %) |
Other operating expense, net | 586 | 255 | 331 | 130 % |
Interest expense | 29,290 | 8,920 | 20,370 | 228 % |
Acquisition related costs | 86 | 4,350 | (4,264) | (98 %) |
Other non-operating income, net | (2,421) | - | (2,421) | nmf |
Loss before income taxes | $(29,562) | $(6,848) | $(22,714) | 332 % |
Income tax expense (benefit) | (3,483) | 6 | (3,489) | nmf |
Net loss | $(26,079) | $(6,854) | $(19,225) | 280 % |
Less: Net income attributable to non-controlling interests | 4,390 | 502 | 3,888 | 775 % |
Net loss attributable to common shareholders | $(30,469) | $(7,356) | $(23,113) | 314 % |
Net loss per share attributable to common shareholders – basic and diluted | $(0.34) | $(0.10) | $(0.24) | 240 % |
(in thousands, except | Six months ended June 30, 2022 | Six months ended June 30, 2021 |
$ Change |
% Change |
Revenue | $378,391 | $133,459 | $244,932 | 184 % |
Employee compensation | 147,148 | 46,910 | 100,238 | 214 % |
Third party services and professional fees | 59,096 | 14,617 | 44,479 | 304 % |
Rent and utilities | 25,219 | 15,346 | 9,873 | 64 % |
Reading fees | 23,286 | 20,844 | 2,442 | 12 % |
Administrative expenses | 23,091 | 9,185 | 13,906 | 151 % |
Medical supplies and other expenses | 31,895 | 6,008 | 25,887 | 431 % |
Depreciation and amortization | 49,931 | 9,073 | 40,858 | 450 % |
Restructuring charges | 7,324 | - | 7,324 | nmf |
Severances and related costs | 7,797 | - | 7,797 | nmf |
Settlements, recoveries and related costs | 677 | (341) | 1,018 | (299 %) |
Stock-based compensation | 1,819 | 1,212 | 607 | 50 % |
Other operating expense, net | 579 | 346 | 233 | 67 % |
Interest expense | 57,971 | 17,288 | 40,683 | 235 % |
Acquisition related costs | 468 | 5,628 | (5,160) | (92 %) |
Other non-operating income, net | (2,479) | (3,366) | 887 | (26 %) |
Loss before income taxes | $(55,431) | $(9,291) | $(46,140) | 497 % |
Income tax expense | (2,920) | 71 | (2,991) | nmf |
Net loss | $(52,511) | $(9,362) | $(43,149) | 461 % |
Less: Net income attributable to non-controlling interests | 8,769 | 871 | 7,898 | 907 % |
Net loss attributable to common shareholders | $(61,280) | $(10,233) | $(51,047) | 499 % |
Net loss per share attributable to common shareholders – basic and diluted | $(0.69) | $(0.15) | $(0.54) | 360 % |
Reconciliation of Non-GAAP Measures
(in thousands) | Three months | Three months | Six months | Six months |
Net loss | $(26,079) | $(6,854) | $(52,511) | $(9,362) |
Interest expense | 29,290 | 8,920 | 57,971 | 17,288 |
Income tax expense (benefit) | (3,483) | 6 | (2,920) | 71 |
Depreciation and amortization | 25,200 | 4,584 | 49,931 | 9,073 |
EBITDA | $24,928 | $6,656 | $52,471 | $17,070 |
Adjustments: | ||||
Restructuring charges | 7,244 | - | 7,324 | - |
Severance and related costs | 5,559 | - | 7,797 | - |
Settlements, recoveries and related costs | 814 | (318) | 677 | (341) |
Stock-based compensation | 758 | 785 | 1,819 | 1,212 |
Loss on disposal of property and equipment | 170 | 255 | 372 | 346 |
Acquisition related costs | 86 | 4,350 | 468 | 5,628 |
Fair value adjustment on derivative | (1,009) | - | (839) | - |
Gain on conversion of debt to equity investment | - | - | - | (3,360) |
Deferred rent expense(1) | 247 | 459 | 579 | 904 |
Other, net | (613) | 23 | (466) | (46) |
Adjusted EBITDA | $38,184 | $12,210 | $70,202 | $21,413 |
Revenue | $192,128 | $69,496 | $378,391 | $133,459 |
Adjusted EBITDA Margin | 20 % | 18 % | 19 % | 16 % |
(1) Deferred rent expense is defined as operating lease cost less operating cash flows from operating leases and adjusted for any prepayments or related items. |
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SOURCE Akumin Inc.