DENTALCORP HOLDINGS LTD.
Our teams across the country delivered another strong quarter of results achieving revenue growth and SPRG of approximately 4% and 1%, respectively, over the first quarter of 2023, despite lapping a prior year quarter which benefited from rescheduled appointments due to a heavy flu season in late 2022. said
Rosenberg continued, we also observed a deferral of patient volumes from the first quarter into the balance of the year, due to the anticipated launch of the CDCP for certain eligible patients in the second quarter. Over the short to medium term, we continue to expect the CDCP to have a neutral to slightly positive impact on our business.
During the quarter, we focused our efforts on driving operating efficiencies and free cash flow generation. We expanded our Adjusted EBITDA Margin by 0.1% and de-levered by 0.1x compared to the fourth quarter of 2023, while generating
Looking forward, we expect SPRG of 4%+ for the second half of 2024. We remain on track to meet our full-year targets for Adjusted Free Cash flow per Share growth, Adjusted EBITDA Margin expansion, acquisition pacing, and balance sheet deleveraging, as we continue to self-fund a significant portion of our acquisition program, Rosenberg concluded.
Financial and Operating Results for the First Quarter Ended
Adjusted EBITDA1 of
Adjusted Net Income1 for the quarter was
Adjusted Free Cash Flow1 for the quarter was
Acquired 5 practices expected to contribute
Non-IFRS and Other Financial Measures
As appropriate, we supplement our results of operations determined in accordance with IFRS with certain non-IFRS and other financial measures that we believe are useful to investors, lenders, and others in assessing our performance and which highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and are described and reconciled to the closest applicable IFRS measure in further detail below. Our management also uses non-IFRS and other financial measures for purposes of comparison to prior periods, to prepare annual operating budgets, for the development of future projections and earnings growth prospects, to measure the profitability of ongoing operations and in analyzing our financial condition, business performance and trends, including the operating performance of the business after taking into consideration the acquisitions of dental practices, and to determine components of employee compensation. As such, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management s perspective, including how we evaluate our financial performance and how we manage our capital structure. We also believe that securities analysts, investors, and other interested parties frequently use these non-IFRS and other financial measures and industry metrics in the evaluation of issuers. These non-IFRS and other financial measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and may include or exclude certain items as compared to similar IFRS measures, and such measures may not be comparable to similarly titled measures reported by other companies.
EBITDA
EBITDA means, for the applicable period, Net loss and comprehensive loss plus (a) net finance costs, (b) income tax recoveries, and (c) depreciation and amortization. Management does not use EBITDA as a financial performance metric, but we present EBITDA to assist investors in understanding the mathematical development of Adjusted EBITDA and Same Practice EBITDA Growth.
Forward-Looking Information
This release includes forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including the Securities Act (
Our forward-looking information includes, but is not limited to, the information and statements under Outlook relating to our goals for the second quarter of 2024 for Revenue, Same Practice Revenue Growth, Adjusted EBITDA Margin, PF Adjusted EBITDA after rent attributable to practices acquired in 2024, as well as our medium-term expectations regarding Same Practice Revenue Growth and Net Debt / PF Adjusted EBITDA after rent Ratio. Such forward-looking information relating to these metrics are not projections; they are goals based on the Company s current strategies and may be considered forward-looking information under applicable securities laws and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management.
The purpose of disclosing such forward-looking information is to provide investors with more information concerning the financial results that the Company currently believes are achievable based on the assumptions below. Readers are cautioned that the information may not be appropriate for other purposes. While these targets are based on underlying assumptions that management believes are reasonable in the circumstances, readers are cautioned that actual results may vary materially from those described above.
Forward-looking statements are necessarily based upon management s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. Forward-looking information is based on many factors and assumptions including, but not limited to, the following assumptions for the second quarter of 2024, the remainder of fiscal 2024 and the medium-term, as applicable: the Company s business, operations and capital structure continuing as currently maintained, that the Company s acquisition program continues without any re-deployment of capital of the Company, the Company s ability to realize pricing increases, an increase in patient visit volumes in the second quarter of 2024, the implementation of the CDCP, the enrollment of patients in the CDCP, reductions in previously imposed industry wide regulatory restrictions, the impact of the investments the Company has made in its marketing and talent teams and the upgrades to its core information technology systems; the Company s ability to continue to make and integrate acquisitions at attractive valuations including a reduction in acquisition purchase multiples as compared to prior periods, the impact of corporate investments made in fiscal 2022 and 2023 on the Company s operations, including the Company s corporate infrastructure and technology stack and new Human Resource Information system and ERP system, the Company benefiting from its unhedged borrowings due to future and forecasted rate decreases, the expansion of service offerings and frequency of patient visits which contribute to optimal patient care, the Company s ability to mitigate anticipated supply chain disruptions, geopolitical risks, inflationary pressures and labour shortages, expand service offerings and generate cash flow, no changes in the competitive environment or legal or regulatory developments affecting our business; visits by patients to our Practices at the same rate as current visits, and no further COVID-19 related significant restrictions.
Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of known and unknown risk factors, many of which are beyond the control of the Company, and could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, the Company s potential inability to successfully execute its growth strategy and complete additional acquisitions; its dependence on the integration and success of its acquired dental practices; the potential adverse effect of acquisitions on its operations; the Company s inability to integrate acquired dental practices; its dependence on the parties with which the Company has contractual arrangements and obligations; changes in relevant laws, governmental regulations and policy and the costs incurred in the course of complying with such changes; competition in the dental industry; increases in operating costs; the risk of difficulty complying with public company reporting obligations and the risk of a failure in internal controls and other factors described herein under Risk Factors and in Risk Factors in the AIF and the Annual MD&A. Accordingly, we warn readers to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding the Company s future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing 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 applicable securities laws. All of the forward-looking information in this release is qualified by the cautionary statements herein.
About
Contact:
Email: nick.xiang@dentalcorp.ca
Tel: (647) 220-4905
Email: sebastien.bouchard@dentalcorp.ca
Tel: (437) 216-0733
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