Nasdaq

Agility Health Reports First Quarter 2018 Financial Results

03-07-2018

HAMILTON, Ontario, July 03, 2018 (GLOBE NEWSWIRE) -- Agility Health, Inc. (TSXV:AHI) (“Agility Health” or “Corporation”), a leading provider of orthotics, prosthetics and foot care services in Canada, today reported its financial results for the first quarter ended March 31, 2018. All amounts are expressed in U.S. dollars unless indicated otherwise.

The complete financial results for Agility Health are available at www.sedar.com. Highlights include:

Financial and Operating Highlights for First Quarter 2018
(Medic Holdings, Inc., Agility Health’s operating subsidiary, was acquired on March 10, 2017 and therefore comparative figures for the corresponding period of the prior year reflect only one month of operations.)

Revenues from continuing operations increased 105.9% to $1,990,039 million for first quarter 2018 versus revenues from continuing operations of $966,534 for first quarter 2017
Gross margins from continuing operations for first quarter 2018 were 41.5%, compared to gross margins of 48.5% from continuing operations for the comparable period last year
A one-time gain of $28.6 million was realized on the sale of the Corporation’s U.S. assets in February 2018
Income from continuing operations, net of tax, was $27,687,977 for first quarter 2018 versus a loss from continuing operations, net of tax, of $719,535 for first quarter 2017
The Corporation had $1,039,076 of cash, including restricted escrow cash, and a working capital deficit of $4.7 million at the end of March 2018

“We are pleased to report that, since the sale of our U.S. operations in February 2018, we have implemented a number of initiatives that are intended to lower our manufacturing and administrative costs while increasing overall manufacturing capacity,” said Wayne Cockburn, Interim CEO of Agility. “We are also evaluating strategic opportunities that would allow us to gain critical mass in our business including vertical and horizontal expansion. We look forward to reporting our progress as the remainder of the year unfolds.”

Selected Financial Information

AGILITY HEALTH, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
March 31, 2018 and December 31, 2017
(Expressed in US Dollars)
(Unaudited)

	March 31, 2018 (Unaudited)			December 31, 2017 (Audited)
ASSETS
Current assets
Cash	$	239,076		$	821,703
Restricted escrow cash		800,000		-
Accounts and other receivables		1,277,887			7,585,640
Inventory		1,459,115			1,508,520
Prepaid expenses and other current assets		123,379			1,190,248
Total current assets		3,899,457			11,106,111

Non-current assets
Investments		50,025			86,025
Deferred income taxes		614,000			614,000
Property and equipment		1,236,318			1,749,436
Intangible assets		1,387,646			11,385,910
Goodwill		2,008,418			4,206,098
Total non-current assets		5,296,407			18,041,469

Total assets	$	9,195,864		$	29,147,580

LIABILITIES AND EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities	$	3,467,201		$	11,343,887
Lines of credit		1,357,300			5,411,406
Note payable	-				1,000,000
Convertible debentures payable	-				1,250,000
Class B and C Unit Liability	-				20,100,000
Class B and C Unit Embedded Derivative Liability	-				2,131,410
Current portion of long-term debt		3,698,869			4,692,117
Current portion of other long-term liabilities		37,469			1,465,324
Total current liabilities		8,560,839			47,394,144

Non-current liabilities
Convertible debentures payable	-				768,702
Long-term debt		-			2,499,278
Other non-current liabilities		22,666			987,520
Total non-current liabilities		22,666			4,255,500

Total liabilities		8,583,505			51,649,644

EQUITY (DEFICIT)
Share capital		12,483,989			12,483,989
Contributed surplus		1,308,328			1,304,901
Retained deficit		(13,003,006	)		(37,659,710	)
Translation Reserve		(176,952	)		(223,158	)
		612,359			(24,093,978	)
Non-controlling interest	-				1,591,914
Total equity (deficit)		612,359			(22,502,064	)

Total liabilities and equity (deficit)	$	9,195,864		$	29,147,580

Selected Financial Information

AGILITY HEALTH, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE LOSS
Three months Ended March 31, 2018 and 2017
(Expressed in US Dollars)
(Unaudited)

		2018			2017

Net revenue	$	1,990,039		$	966,534

Cost of revenues
Materials		606,520			291,766
Salaries and benefits		382,404			138,256
Facility		63,117			24,829
Supplies		19,631			5,680
Depreciation and amortization		88,138			34,310
Provision for bad debts		3,499		-
Other		-			2,598
Total cost of revenues		1,163,309			497,439

Gross Margin		826,730			469,095

Selling, general and administrative expenses		1,649,830			1,009,840

Other income (expense)
Interest expense		(62,479	)		(188,397	)
Foreign currency adjustment		(50,043	)		2,065
Gain on Sale of United States based assets		28,623,599			-
Fair value adjustment on warrants and obligations		-			7,542
		28,511,077			(178,790	)

Income (Loss) from continuing operations before income taxes		27,687,977			(719,535	)

Provision for income taxes	-			-

Income (Loss) from continuing operations		27,687,977			(719,535	)

Loss from discontinued operations, net of tax		(2,942,086	)		(470,956	)

Net income (loss)		24,745,891			(1,190,491	)

Other comprehensive income (loss), net of tax
Foreign currency retranslations		46,206		-

Comprehensive income (loss)	$	24,792,097		$	(1,190,491	)

Net income (loss) attributable to:
Shareholders	$	24,656,704		$	(1,554,138	)
Non-controlling interest		89,187			363,647

	$	24,745,891		$	(1,190,491	)

Comprehensive income (loss) attributable to:
Shareholders	$	24,702,910		$	(1,554,138	)
Non-controlling interest		89,187			363,647

	$	24,792,097		$	(1,190,491	)

Earnings per share
Basic, income (loss) per share	$	0.21		$	(0.01	)
Diluted, income (loss) per share	$	0.21		$	(0.01	)

About Agility Health

Through its Canadian subsidiary and principal operating entity, Medic Holdings Corp., Agility Health operates eleven (11) foot care clinics in Ontario and Quebec and manufactures orthotics and prosthetics.

Non-IFRS Financial Measures

Agility Health’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company also uses certain non-IFRS measures, such as EBITDA, to measure its financial performance. EBITDA is defined by the Company as the addition of net loss, depreciation and amortization, financial expenses and income taxes. The Company uses EBITDA for the purpose of evaluating its historical and prospective financial and operational performance. Management believes that EBITDA is a useful measure for evaluating the performance of the Company. EBITDA is not a performance measure recognized under IFRS, therefore it does not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled financial metrics reported by other companies.

Forward-Looking Information

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes forward-looking statements regarding Agility Health and its business. Such statements are based on the current expectations and views of future events of Agility Health’s management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including the anticipated future growth of Agility Health, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Agility Health undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information please contact:

Wayne Cockburn
Interim Chief Executive Officer
(905) 505-0770
Wayne@medicholdings.com