FISCAL 2023 OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Consolidated revenue increased by 10% in Fiscal 2023 to a record
$73.8 million , up$7 million as compared to the fiscal year endedDecember 31, 2022 ("Fiscal 2022") despite the closure of 53 treatment centers (approximately 29% of active treatment centers as at the end of Fiscal 2022) in connection with the Company's previously-announced comprehensive restructuring plan (the "Restructuring Plan") and significantly reduced marketing spend (marketing spend in Fiscal 2023 represented 12% of annualized marketing spend in the fourth quarter of 2022 ("Q4 2022")). - As a result of the Restructuring Plan, the Company achieved the following previously-announced targets:
- Revenue in Fiscal 2023 achieved the Company's target of approximately 90% of the annualized total quarterly revenue generated in Q4 2022, while quarterly revenue in the fourth quarter of 2023 ("Q4 2023") generated above 95% of quarterly Q4 2022 revenue.
- The Company has eliminated approximately
$23 million of annualized costs from the business to date, achieving its previously-announced cost savings target of between$22 to$25 million . - The Company incurred
$1 million in restructuring and related charges associated with the Restructuring Plan, achieving its previously-announced associated charges target of between$1 million to$2 million .
- Regional operating loss decreased by 56% in Fiscal 2023 to
$2.7 million , down$3.5 million as compared to Fiscal 2022. - Loss and comprehensive loss decreased by 44% in Fiscal 2023 to
$49.3 million , down$39.1 million as compared to Fiscal 2022, primarily due to the decrease in impairment loss incurred in Fiscal 2023 as compared to Fiscal 2022. - The Company continued its roll-out of its Spravato® (esketamine nasal spray) offering at select treatment centers to diversify its offering to patients, including our first Spravato® "buy & bill" program which will allow us to further enhance our access to patients in specific markets that require this program offering compared to our current "administer and observe" programs. The Company has expanded its Spravato® offering to 82 treatment centers to date.
- The Company began a pilot program to roll-out the facilitation of medication management at select treatment centers. We believe this program will allow us to reach patients earlier in their treatment journey, develop an internal patient pipeline for transcranial magnetic stimulation ("TMS") and Spravato® treatments, while also further optimizing marketing costs. The Company has expanded its medication management offering to nine treatment centers to date.
"We are pleased with the successful execution of the Restructuring Plan, which we believe provides a path to profitability once we are able to resume our investment in activities to support our revenue growth. We are excited to continue our roll-out of new treatment modalities, including our previously-announced medication management pilot and our newly-introduced Spravato® "buy & bill" program, which will complement our current "administer and observe" programs, allowing us to further enhance our access to patients. By becoming a comprehensive mental health provider and expanding our continuum of care, including talk therapy in
SELECTED FISCAL 2023 FINANCIAL AND OPERATING RESULTS (1)
Selected Financial Results
(audited) ($) | Fiscal 2023 | Fiscal 2022 | |
Total revenue | 73,786,778 | 66,825,959 | |
Regional operating loss | (2,732,864) | (6,281,165) | |
Loss before income taxes | (49,254,817) | (88,305,928) | |
Loss for the year and comprehensive loss | (49,254,817) | (88,305,928) | |
Loss attributable to the common shareholders of Greenbrook | (48,914,062) | (87,671,116) | |
Net loss per share (basic and diluted) | (1.25) | (3.77) |
_______ |
Note: |
(1) Please note that additional selected consolidated financial information can be found at the end of this press release. |
Selected Operating Results
As at December 31, | As at December 31, | ||||
(unaudited) | 2023 | 2022 | |||
Number of active treatment centers(1) | 130 | 183 | |||
Number of treatment centers-in-development(2) | 0 | 0 | |||
Total Treatment Centers | 130 | 183 | |||
Number of management regions | 17 | 18 | |||
Number of TMS Devices installed | 260 | 345 | |||
Number of regional personnel | 391 | 495 | |||
Number of shared-services / corporate personnel(3) | 98 | 134 | |||
Number of TMS treatment providers(4) | 205 | 225 | |||
Number of consultations performed(5) | 34,124 | 27,831 | |||
Number of patient starts(5) | 10,401 | 9,253 | |||
Number of TMS treatments performed(5) | 343,790 | 312,940 | |||
Average revenue per TMS treatment(5) | $ | 215 | $ | 214 |
________
Notes: | |
(1) | Active treatment centers represent treatment centers that have performed billable treatment services during the applicable period. |
(2) | Treatment centers-in-development represents treatment centers that have committed to a space lease agreement and the development process is substantially complete. |
(3) | Shared-services / corporate personnel is disclosed on a full-time equivalent basis. The Company utilizes part-time staff and consultants as a means of managing costs. |
(4) | Represents clinician partners that are involved in the provision of TMS therapy services from our treatment centers. |
(5) | Figure calculated for the applicable year ended |
Selected Consolidated Financial Information
(audited) ($) | Fiscal 2023 | Fiscal 2022 | |
Total revenue | 73,786,778 | 66,825,959 | |
Direct center and patient care costs | 53,765,678 | 42,137,465 | |
Regional employee compensation | 18,106,033 | 16,651,595 | |
Regional marketing expenses | 1,944,745 | 10,807,453 | |
Depreciation | 2,703,186 | 3,510,611 | |
Total direct center and regional costs | 76,519,642 | 73,107,124 | |
Regional operating loss | (2,732,864) | (6,281,165) | |
Center development costs | 525,782 | 660,356 | |
Corporate employee compensation | 15,941,141 | 16,185,688 | |
Corporate marketing expenses | 170,837 | 628,145 | |
Financing costs | 678,347 | 1,265,225 | |
Other corporate, general and administrative expenses | 12,769,567 | 7,445,166 | |
Share-based compensation | 726,679 | 347,787 | |
Amortization | 66,192 | 1,358,212 | |
Interest expense | 12,048,071 | 5,979,829 | |
Interest income | (231) | (12,250) | |
Loss on extinguishment of loan | 14,274 | 2,331,917 | |
Loss on device contract termination | 3,295,904 | — | |
Impairment loss | 285,390 | 45,834,688 | |
Loss before income taxes | (49,254,817) | (88,305,928) | |
Income tax expense | — | — | |
Loss for the year and comprehensive loss | (49,254,817) | (88,305,928) | |
Income (loss) attributable to non-controlling interest | (340,755) | (634,812) | |
Loss attributable to the common shareholders of Greenbrook | (48,914,062) | (87,671,116) | |
Net loss per share (basic and diluted) | (1.25) | (3.77) |
For more information, please refer to the Company's Annual Report on Form 10-K for the year ended
Operating through 130 Company-operated treatment centers, Greenbrook is a leading provider of TMS and Spravato® (esketamine nasal spray), FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder ("MDD") and other mental health disorders, in
Cautionary Note Regarding Forward-Looking Information
Certain information in this press release, including, but not limited to, information with respect to the Company's future financial or operating performance, the Company's expectations regarding the impact of the Restructuring Plan on our business, and the continued roll-out of the Spravato® and medication management offering at additional treatment centers and its potential to enhance profit margins and diversify total revenue, constitute forward-looking information within the meaning of applicable securities laws in
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company 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 or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: macroeconomic factors such as inflation and recessionary conditions, substantial doubt regarding the Company's ability to continue as a going concern due to recurring losses from operations; inability to increase cash flow and/or raise sufficient capital to support the Company's operating activities and fund its cash obligations, repay indebtedness and satisfy the Company's working capital needs and debt obligations; prolonged decline in the price of the common shares of the Company ("Common Shares") reducing the Company's ability to raise capital; inability to satisfy debt covenants under the Company's credit facility and the potential acceleration of indebtedness; including as a result of an unfavorable decision in respect of the litigation with
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