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Jack Nathan Health Announces Q4 and Year-End Financial Results for Fiscal 2021

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TORONTO — Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Well being”, “JNH” or the “Firm”) introduced at the moment its audited monetary outcomes for the fourth quarter and monetary year-ended January 31, 2021. Jack Nathan Well being’s monetary statements are ready in accordance with Worldwide Monetary Reporting Requirements (“IFRS”).

Administration Commentary

Commenting on the Firm’s fiscal 2021 monetary efficiency and key company milestones, Michael Marchelletta, Co-founder and Interim Chief Govt Officer said, “Regardless of the challenges of the COVID-19 pandemic, we made vital progress within the fiscal yr ended January 31, 2021, as we accomplished our go-public transaction to listing on the TSXV Trade and commenced to implement our imaginative and prescient of building Jack Nathan Well being as a number one healthcare supplier in Canada, Mexico and doubtlessly, the remainder of the world. Now we have taken a number of steps over the past fiscal yr to speed up our development plans similar to enhancing our infrastructure, filling key management positions, increasing our geographic footprint, making a number of strategic and accretive acquisitions, and solidifying key strategic relationships, notably with Walmart.”

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Mr. Marchelletta continued, “Our growth technique is now starting to take form as we proceed to develop our income potential and bottom-line efficiency. Current acquisitions and the opening of latest medical clinics present us with a forward-looking income run price that’s on monitor to considerably exceed our historic revenues. We’re centered on taking part in a key function in serving the large backlog in affected person care in Canada and Mexico, and subsequently, we’ll proceed to scale and put money into our digital and bodily footprints in these international locations.”

Key Developments throughout Fiscal 2021

  • On October 1, 2020, the Firm introduced the closing of its qualifying transaction. Concurrent with the qualifying transaction, the Firm obtained gross proceeds of roughly $5.6 million from its beforehand accomplished non-public placement.
  • On October 6, 2020, the Firm commenced buying and selling on the TSXV Trade below the ticker “JNH”.
  • On October 8, 2020, the Firm introduced the opening of a brand new hybrid medical walk-in clinic in Kelowna, British Columbia, inside Walmart. The clinic situated within the Walmart Supercentre at 1555 Banks Highway in Kelowna was the Firm’s 75th clinic in Canada and 81st clinic worldwide.
  • On October 16, 2020, the Firm introduced the launch of its telemedicine service portal, increasing entry to major healthcare in Mexico.
  • On October 29, 2020, the Firm introduced the acceleration of the expiry date of its excellent warrants to November 30, 2020. Roughly 5.6 million warrants have been exercised by November 30, 2020, leading to gross proceeds of roughly $4.2 million. As well as, the Firm appointed a brand new Chief Expertise Officer. Serge Cinelli, a digital well being knowledgeable and former regulator, who will lead the Firm’s digital well being street map and be answerable for growing, executing, and rolling out the Firm’s proprietary know-how.
  • On November 9, 2020, the Firm introduced the opening of a brand new multi-disciplinary clinic, the Firm’s 76th clinic in Canada and 82nd worldwide, inside Walmart in Thornhill, Ontario.
  • On November 19, 2020, the Firm introduced that it’s going to start opening 50 new clinics in Mexico. The Firm signed an addendum to its ongoing Grasp Service Settlement (“MSA”) with Walmart Mexico to assemble 50 new clinics all through the nation.
  • On December 14, 2020, the Firm introduced that Dr. Glenn Copeland, former founder, chairman & CEO of Cleveland Clinic Canada is becoming a member of Jack Nathan Well being as Chief Medical Officer to supervise and increase its new strategic initiative in apply administration and clinic operations.
  • On January 8, 2021, the Firm accomplished the acquisition of all of the excellent shares of Writi Inc., an organization that gives cloud-based medication-management software program options.

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Subsequent to the top of Fiscal 2021

  • On February 17, 2021, the Firm accomplished the acquisition of Redeem MedSpas, two walk-in medical clinics inside Walmart in Ontario.
  • On March 3, 2021, the Firm introduced that its frequent shares started buying and selling on the OTCQB Enterprise Market below the image “JNHMF.” The Firm’s shares proceed to commerce on the TSXV Trade below the image “JNH”.
  • On March 8, 2021, the Firm accomplished the acquisition of 4 operational medical clinics, situated inside Walmart in Ontario.
  • On March 22, 2021, the Firm acquired an 8,172 sq. ft. flagship medical clinic situated in Vaughan, Ontario. The Firm plans to develop this multi-service clinic, the most important within the JNH Walmart footprint, right into a premier healthcare providers vacation spot in York Area, Ontario.
  • On April 22, 2021, the Firm introduced that its shares obtained full-service Depository Belief Firm (“DTC”) eligibility in the US. DTC eligibility is anticipated to simplify the method of buying and selling whereas enhancing liquidity for the Firm’s frequent shares.
  • On Might 3, 2021, Writi secured the software program set up for 15 new Lengthy-Time period Care (“LTC”) properties, representing over 1,650 beds. This integration, when full, will double the variety of LTCs utilizing the Writi platform and improve the Firm’s recurring income set up base to a complete of 30 LTCs and over 3,200 beds in Ontario.
  • On Might 6, 2021,the Firm introduced that it has signed an addendum to its ongoing MSA to open a further 153 new areas in Mexico, bringing the Firm’s whole variety of future clinics within the nation to 203, all corporately owned and operated.
  • On Might 12, 2021, the Firm introduced three new areas might be opening in Western Canada, with two areas opening in Alberta and one in British Columbia. The clinics slated to open might be in St. Albert and Edmonton in Alberta, and Victoria in British Columbia.
  • On Might 19, 2021, the Firm was accepted for commencement to Tier 1 Issuer standing from Tier 2 Issuer standing by the TSXV Trade. The TSXV classifies issuers into completely different tiers primarily based on sure requirements together with historic monetary efficiency, stage of improvement and monetary assets. Tier 1 is the TSXV’s premier tier and is reserved for the TSXV’s most superior issuers with probably the most vital monetary assets.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED JANUARY 31, 2021

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Working Outcomes

  • Income for the yr ended January 31, 2021: For the fiscal yr ended January 31, 2021, revenues have been $3,852,372 as in comparison with $3,617,388 final fiscal yr, a rise of $234,984. The rise in income was supported primarily by a rise in annual license charges from a partial yr of latest areas and an general improve from revenues in Mexico associated to the continuing growth.
  • Income for the three months ended January 31, 2021: For the three months ended January 31, 2021, revenues have been $716,458 as in comparison with $833,248 in the identical interval in fiscal 2020, a lower of $116,790. The lower in income was primarily pushed by a lower in license charges because of the turnover in clinics and a lower in retention charges as this income was accelerated and obtained within the second quarter of fiscal 2021 (a timing distinction) offset by a rise in clinic operations because of the opening of three new clinics in Mexico and elevated gross sales from COVID testing in Mexico. Administration expects this lower, primarily affected by a timing distinction in retention charges, will normalize in future quarters.
  • Adjusted EBITDA(1) for the yr ended January 31, 2021: Adjusted EBITDA for the fiscal yr ended January 31, 2021, was $209,627 in comparison with $263,511 for a similar interval in fiscal 2020.
  • Adjusted EBITDA(1) for the three months ended January 31, 2021: Adjusted EBITDA of ($642,269) in comparison with ($121,596) in the identical interval in fiscal 2020. The lower in Adjusted EBITDA consists primarily of an general value of latest administration and infrastructure to place the Firm for development and scale in a number of areas of the enterprise. Administration expects this to normalize as new income streams are realized within the coming months.
  • Earnings (Loss) from operations for the yr ended January 31, 2021: For the fiscal yr ended January 31, 2021, loss from operations was ($1,354,639) in comparison with an earnings of $153,068 in fiscal 2020. The loss from operations consists of a major quantity of latest bills within the final two quarters of fiscal 2021 similar to inventory compensation bills, consulting charges, unhealthy debt bills, salaries and wages, and improvement prices, partially offset by decreases in skilled charges, workplace and basic bills, license charges and improve in annual revenues.
  • (Loss) from operations for the three months ended January 31, 2021: For the three months ended January 31, 2021, the loss from operations was ($1,986,989) in comparison with ($151,164) in the identical interval in fiscal 2020. The rise in loss from operations consists principally of a major quantity of latest bills within the final quarter of fiscal 2021 similar to inventory compensation bills, consulting charges, unhealthy debt bills, salaries and wages, and improvement prices, acquisition-related prices, and investor communication-related prices, offset marginally by lower in workplace and basic bills. The Firm incurred these new bills from turning into a publicly traded entity and increasing its infrastructure and employees for development and scale in 2022.

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Steadiness Sheet as of January 31, 2021

  • Money of $7.7 million (January 31, 2020 – $0)
  • Complete belongings of $10.6 million (January 31, 2020 – $1.7 million)
  • Complete liabilities of $2.1 million (January 31, 2020 – $2.8 million)

Shares Excellent

As of Might 28, 2021, the Firm had 82,067,119 frequent shares excellent, 5,975,000 inventory choices excellent, and 400,830 warrants excellent.

(1)

Adjusted EBITDA

Administration believes Adjusted EBITDA is a helpful measure to evaluate the continuing efficiency of the Firm because it gives extra significant working outcomes by excluding the results of bills that aren’t reflective of our underlying enterprise efficiency in addition to on-time or non-recurring bills. We outline Adjusted EBITDA as EBITDA adjusted so as to add again or deduct, as relevant, sure bills, prices, fees, or advantages incurred within the interval, which in administration’s view, are usually not indicative of regular operations, together with: (i) inventory compensation expense, (ii) curiosity earnings, (iii) different earnings (expense), (iv) loss on investments at truthful worth, (v) write down on investments, (vi) F/X changes, and (vii) itemizing bills.

Non-GAAP measure: Earnings earlier than curiosity, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA shouldn’t be construed as alternate options to web earnings (loss) decided in accordance with IFRS. EBITDA and Adjusted EBITDA would not have any standardized that means below IFRS and subsequently is probably not similar to comparable measures offered by different issuers. Adjusted EBITDA is a significant monetary metric because it measures money generated from operations which the Firm can use to fund working capital necessities, service future curiosity and principal debt repayments and fund future development initiatives.

For additional info relating to the Firm’s monetary outcomes fiscal 2021, please consult with the Firm’s audited monetary statements for the yr ended January 31, 2021 along with the MD&A, out there on Jack Nathan Well being’s issuer profile on SEDAR at www.sedar.com and the Firm’s web site https://www.jacknathanhealth.com

About Jack Nathan Medical Corp.

Jack Nathan Medical Corp., working as Jack Nathan Well being®, is one in every of Canada’s largest healthcare networks. Jack Nathan Well being® is an revolutionary healthcare firm that’s bettering entry for tens of millions of sufferers by co-locating doctor and ancillary medical providers conveniently situated inside Walmart® shops.

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Jack Nathan Well being® gives an distinctive degree of affected person care, made attainable by way of patient-centric physicians, quite a lot of medical providers, know-how, and applications, designed to place sufferers first. Our mission is to supply everybody entry to the best high quality retail medical centres, with each in-clinic physicians and digital telemedicine, so that you and your family members can “Stay Your Finest Life”.

Jack Nathan Well being® was established in 2006 and continues to increase its worldwide footprint, delivering distinctive, state-of-the-art, turn-key medical centres. In Canada, the Firm has 76 clinics in Walmart areas in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec, and is contracted to open 3 extra new clinics in 2021/22. In Mexico, the Firm has 33 clinics in Walmart areas and is contracted to open 170 extra new clinics in 2021/22. For extra info, go to www.jacknathanhealth.com or www.sedar.com.

Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as outlined in insurance policies of the TSX Enterprise Trade) accepts accountability for the adequacy or accuracy of this launch.

Sure statements contained on this press launch represent “forward-looking info” as such time period is outlined in relevant Canadian securities laws. The phrases “might”, “would”, “may”, “ought to”, “potential”, “will”, “search”, “intend”, “plan”, “anticipate”, “consider”, “estimate”, “anticipate” and comparable expressions as they relate to Jack Nathan are supposed to establish forward-looking info. All statements aside from statements of historic truth could also be forward-looking info. Such statements replicate the Firm’s present views and intentions with respect to future occasions, and present info out there to them, and are topic to sure dangers, uncertainties, and assumptions Many elements may trigger the precise outcomes, efficiency or achievements that could be expressed or implied by such forward-looking info to fluctuate from these described herein ought to a number of of those dangers or uncertainties materialize. Such elements embody however are usually not restricted to: modifications in financial situations or monetary markets; will increase in prices; litigation; legislative and different judicial, regulatory, political and aggressive developments; the financial and enterprise affect of COVID-19 and operational difficulties. This listing just isn’t exhaustive of the elements which will have an effect on forward-looking info. These and different elements must be thought-about rigorously, and readers shouldn’t place undue reliance on such forward-looking info. Ought to any issue have an effect on the Firm in an sudden method, or ought to assumptions underlying the forward-looking info show incorrect, the precise outcomes or occasions might differ materially from the outcomes or occasions predicted. Any such forward-looking info is expressly certified in its entirety by this cautionary assertion. Furthermore, the Firm doesn’t assume accountability for the accuracy or completeness of such forward-looking info. The forward-looking info included on this press launch is made as of the date of this press launch and the Firm undertakes no obligation to publicly replace or revise any forward-looking info, aside from as required by relevant legislation.

View supply model on businesswire.com: https://www.businesswire.com/news/home/20210531005317/en/

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Contacts

IR: Prit Singh, Thesis Capital psingh@thesiscapital.ca
David Berman, CFO, david.berman@jacknathanhealth.com

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