On March 16, 2023 Akumin Inc. (NASDAQ: AKU) (TSX: AKU) ("Akumin" or the "Company"), a national partner of choice for U.S. hospitals, health systems and physician groups, with comprehensive solutions addressing outsourced radiology and oncology service-line needs, reported its financial results for the quarter and year ended December 31, 2022 (Press release, Akumin, MAR 16, 2023, View Source [SID1234628954]).
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Fourth Quarter 2022 Highlights
Akumin delivered fourth quarter same-store volume performance on a consolidated, pro forma basis as follows:
-0.3% for MRI
+7.8% for PET/CT
+8.0% for Oncology Patient Starts
The Company reported revenue totaling $184.6 million for the fourth quarter, a $5.2 million or 3% increase over the fourth quarter of last year. For the full year ended December 31, 2022, Akumin reported revenue of $749.6 million, a $328.6 million or 78% increase over the full year 2021. This year-over-year increase was primarily as a result of the Alliance HealthCare Services acquisition (the "Alliance Acquisition") which was completed on September 1, 2021.
Net loss was $49.3 million and $151.6 million for the fourth quarter and year ended December 31, 2022, respectively, an increase in net loss of $22.7 million and $116.8 million, respectively, compared to the prior periods primarily due to higher interest expense, goodwill impairment charges, restructuring charges, and severance and related costs, partially offset by lower acquisition-related costs.
Akumin generated $37.4 million of Adjusted EBITDA* (as defined below) for the fourth quarter, a $9.9 million or 36% increase over the fourth quarter of last year. For the full year ended December 31, 2022, Akumin reported Adjusted EBITDA* of $144.1 million, a $77.2 million or 115% increase over the full year 2021, primarily as a result of the Alliance Acquisition.
*For a reconciliation of Adjusted EBITDA, which is a non-GAAP measure, to the most directly comparable GAAP financial measure, please see "Reconciliation of Non-GAAP Financial Measures".
Summary Consolidated Financial Results (in thousands, except for per share amounts)
3-month period
ended
Dec 31, 2022
3-month period
ended
Dec 31, 2021
Year ended
Dec 31, 2022
Year ended
Dec 31, 2021
MRI Scans
217
217
876
539
PET-CT Scans
34
32
133
46
Oncology Patient Starts
2.623
2.504
10.347
3.401
Revenue
$184,635
$179,443
$749,631
$421,079
Net Loss
($49,331)
($26,632)
($151,587)
($34,814)
Adjusted EBITDA (1)
$37,381
$27,522
$144,102
$66,903
EPS –Diluted
$(0.46)
$(0.36)
$(1.75)
$(0.56)
(1) See "Non-GAAP Measures" below.
Commenting on the year-end results, Riadh Zine, Chairman and Chief Executive Officer of the Company, said, "We are pleased that we were able to deliver strong financial results, within our updated guidance range for the quarter and full year. Our results are particularly impressive given that 2022 was a transformational year for Akumin, during which we successfully integrated our $786 million acquisition of Alliance HealthCare Services. The integration comprised a number of initiatives including the implementation of a restructuring resulting in excess of $20 million of organizational savings in our first phase of transformation efforts, consolidation of underperforming sites, and completion of a comprehensive review and repositioning of our oncology business.
"We also had to respond to several industry-wide challenges, including a shortage of clinical labor which negatively impacted our ability to generate same-store revenue growth, and unprecedented cost inflation, particularly in the areas of labor, third-party services, and medical supplies. Despite these challenges, we were able to deliver solid performance and have positioned the business for strong organic growth in 2023 and beyond.
"Our transformation initiatives are well underway and, as we stated in the third quarter, we believe both the second and third phases of our transformation efforts, which are focused on asset rationalization, network integration, and purchasing power, are expected to result in more than $25 million in additional run-rate synergies during 2023, Zine continued.
"Akumin’s vision is to be the partner of choice for health systems and hospitals by leveraging our dense network coverage to serve patients in their community, implementing best-in-class clinical standardization to improve patient care, and deploying technology to achieve operational excellence to enhance the patient experience," Mr. Zine concluded.
Full-Year 2023 Financial Outlook
Akumin is also pleased to announce today its full year ending December 31, 2023 financial outlook. Akumin currently expects that the financial results of the Company for 2023 will be as follows:
Akumin Full-Year 2023 Guidance (1)
Revenue
$765-775mm
Adjusted EBITDA (2)
$150-160mm
Capex
$55-65mm
(1) For additional information on forward-looking statements, see the section titled "Forward-Looking Information" below.
(2) See "Non-GAAP Measures" below.
Commenting on the 2023 financial outlook, Zine said, "While we have begun to see some improvement to the operating conditions we faced in 2022, some ongoing labor constraints and cost inflation persist in some of our markets which we have factored in to our outlook for 2023, notwithstanding the strong demand for our services which we expect to continue. We are confident in our ability to deliver solid results in 2023 and are encouraged by these early developments thus far in the year."
Unless otherwise indicated, all amounts are expressed in U.S. dollars. Certain metrics, including those expressed on an adjusted or comparable basis, are non-GAAP measures. See "Non-GAAP Measures" and "Selected Consolidated Financial Information" of this press release for further details.
Investor Presentation
Akumin would like to invite interested parties to an investor presentation to be held on Friday, March 17, 2023 from 8:30 a.m. to 9:30 a.m. Eastern Time where management will discuss fourth quarter and year-end results.
Conference call details:
Date:
8:30 a.m. Eastern Time, Friday, March 17, 2023
Click to join by phone:
Access via webcast:
A related presentation will be available from Akumin’s website (www.akumin.com) and at View Source Participants are asked to connect at least 10 minutes prior to the beginning of the call to ensure participation. The webcast archive will be available for 90 days. A replay of the presentation will also be available by calling 1-888-203-1112, or 647-436-0148 for international callers, using passcode 6212460.