Slides accompanying the management presentation delivered by the CEO and CFO of Medical Facilities Corporation during their 2021 annual shareholders meeting on May 13, 2021.
3. Forward-looking statements
3
This presentation may contain forward-looking statements within the meaning of certain
securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and
other provincial securities law in Canada. These forward-looking statements include, among
others, statements with respect to our objectives, goals and strategies to achieve those
objectives and goals, as well as statements with respect to our beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words “may”, “will”,
“could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”,
“expect”, “intend”, “forecast”, “objective” and “continue” (or the negative thereof), and words
and expressions of similar import, are intended to identify forward-looking statements. Any
such statements are subject to risks and uncertainties that could cause actual results to differ
materially from those projected in these forward-looking statements. For more information on
the risk factors related to these forward-looking statements, please refer to the
management’s discussion and analysis, annual information form and ongoing quarterly
filings of Medical Facilities Corporation available on SEDAR at www.sedar.com.
4. 2020 in review
â–Ş Strong start to year
â–Ş COVID-19 had material impact in Q2
2020
â–Ş Dramatic rebound in case volumes in
second half of year
â–Ş Benefited from decisions made prior to
and during the pandemic
4
5. Impact of COVID-19 on case volumes
5
Total surgical
cases
Note: Volume excludes discontinued operations.
2020 volume as % of prior year
Jan-Mar Apr May-Jun Jul-Sep Oct-Dec
91.7
27.0
80.6
95.8 92.9
6. We benefited from
6
â–Ş Changes to our dividend (2019)
â–Ş Retirement of debentures (2019)
â–Ş Selling equity in Unity Medical (February 2020)
â–Ş Selling underlying real estate for gross proceeds
of $25 million (June 2020)
â–Ş Government loans and relief / stimulus funding
9. 2020 year end results
9
2018 2019 2020
$390.8 $389.9
$398.1
Total Revenue and Other
Income ($ millions)
= government stimulus income
FY 2020:
â–Ş Included $26.0M in government
stimulus income
â–Ş Decline in case volume as a result
of the COVID-19 pandemic
â–Ş Case and payor mix were
favourable
10. 2018 2019 2020
2018 2019 2020
2020 year end results
10
$72.5
$67.8
$44.6
$93.4 $96.1
$96.3
Income from Operations
($ millions)
Adjusted EBITDA
($ millions)
Adjusted EBITDA is a non IFRS financial measures. Please refer to “Non IFRS Financial Measures” and “Reconciliation of Non IFRS Financial Measures” sections in the
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations for the three and twelve months ended December 31, 2020.
11. Q1 2020 Q1 2021
Q1 2021 results
11
$92.8 $98.1
Total Revenue and Other
Income ($ millions)
Q1 2021:
â–Ş Included $4.1M in government
stimulus income
â–Ş Favourable case and payor mix
â–Ş Case volumes on par with Q1 2020
= government stimulus income
12. Q1 2021 results
12
(US$ thousands, except where noted
otherwise)
Q1 2021 Q1 2020 Change %
Income from operations $18,359 $11,035 66.4%
Adjusted EBITDA $25,132 $18,558 35.4%
Adjusted EBITDA Margin 25.6% 20.0% 28.0%
Cash available for distributions
(C$ thousands)
$7,899 $8,820 (10.4%)
Payout Ratio 27.6% 24.6% 12.2%
Adjusted EBITDA, cash available for distribution and payout ratio are non IFRS financial measures. Please refer to “Non IFRS Financial Measures” and “Reconciliation of Non IFRS
Financial Measures” sections in the Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations for the three months ended March 31, 2021.
13. Strong balance sheet
$58.0M
Cash & cash
equivalents
1.46x
Current ratio
0.51
Net debt* / equity
0.86
Net debt* /
EBITDA (LTM)
â–Ş Well resourced for
growth
â–Ş Leverage lower than
US peers
As at March 31, 2021
* Inclusive of lease liabilities per IFRS 16 13
15. Growing demand for healthcare
2020 2025 2030
U.S. population aged 65+
(millions)
56.3
63.5
73.4
15
* Sources: Census.gov and United Nations, Department of Economics and Social Affairs, Population Division
30.4%
Growth by
2030
16. Large, fast-growing ASC market
$52B +
U.S. ambulatory
surgery center
market by 2025
($30B in 2020)*
Drivers:
â–Ş Technological advances
â–Ş Lower costs compared to hospital
settings
â–Ş Convenience for patients
* Sources: IBIS World (2020); Research and Markets (2019) 16
17. 17
Focused on growth
â–Ş Expand the capacity of existing
facilities (ASH in 2021)
â–Ş Diversifying revenue base by adding
more specialties and ancillary
services
â–Ş Potential acquisitions
â–Ş De novo opportunities
(like St. Luke’s)
18. Thank you to all our
partners and medical
professionals for their
incredible efforts
throughout the
pandemic
18