Skylight Health Group Inc. one of the largest multi-specialty healthcare systems in the United States, today reported its earnings for fiscal Q3 2020 for the period ended September 30, 2020. Additional information regarding the Company, including its interim financial statements and Management’s Discussion and Analysis (“MD&A”), can be found at www.sedar.com and on the Company’s website (www.skylighthealthgroup.com). All amounts are expressed in Canadian dollars unless otherwise noted.
Following an industry-wide initial reduction of visits in March 2020 due to the COVID-19 pandemic, Skylight Health has continued to see growth in patient visits and registrations, while ongoing improvements to its business model and operating structure have led to reduced costs for delivery of services. The implementation of a telemedicine offering has created opportunities to further reduce the cost of healthcare delivery with lower overheads, higher margins, and improved availability for patients.
The Company expects that virtual care including telemedicine will remain a key delivery model within its growth plan. The Company continues its expansion through the US both organically and by way of acquisition with two new states added in October and November 2020 and a third acquisition announced to close in early 2021. Collectively, the 3 acquisitions are expected to contribute $5 million in annualized revenue and $1 million in annualized EBITDA to the current run rate. As of November 27th, 2020, the Company has CA$10 million in cash on its balance sheet and is focused on its 3-pronged growth strategy including the expansion of insurable services to its current patient roster, subscription for the un/underinsured and accretive acquisitions.
Prad Sekar, Chief Executive Officer of Skylight Health Group stated “We are excited to see the continued efforts of our team and commitment to patient care result in a second consecutive Adjusted EBITDA positive quarter and, for the first time in our company’s history, a full nine months of positive Adjusted EBITDA. We have continued to execute against our business plan, strengthen our management team and create programs that will ultimately delight our patients and optimize their health outcomes. Further we are beyond thrilled to be operating under our name Skylight Health Group and the opportunities it represents for us and our stakeholders in the years to come.”
Mr. Sekar continued, “During our last earnings call in August 2020 we stated that it was time for us to go on the offensive. I am proud to say that we are doing just that. We look forward to executing against our business plan and bringing real value to all our stakeholders.”
Summary of Q3 2020 Key Milestones and Consolidated Results
Q3 2020 Financial Highlights
|Three months ended September 30||Nine months ended September 30|
|Cost of sales||964,091||1,264,296||3,082,437||3,049,254|
|Total operating expenses||2,561,763||3,847,956||8,086,041||11,206,944|
|Loss from operations||(215,726)||(919,114)||(1,225,851)||(3,956,228)|
* Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortization, adjusted by significant nonrecurring, non-operational expenses and partially offset by the cash impact of certain accounting treatments during the period. Please see the Company’s Management Discussion & Analysis for a detailed reconciliation to operating loss.
The Company will hold its quarterly investor conference call on December 1, 2020 at 9:00 am ET.
Conference call details:
|Date:||Tuesday, December 1st, 2020|
|Time:||9:00 a.m. (EDT)|
|US/Canada Toll Free Dial In:||1-800-319-4610|
|Toronto Local Dial In:||1-416-915-3239|
|International Dial In:||1-604-638-5340|
|Call Name:||Skylight Health Earnings Call|
A replay of the earnings call will be available on the company’s website 24 hours after the call takes place.
Those interested in submitting questions for the earnings call can do so by emailing firstname.lastname@example.org prior to the start of the call. Skylight Health will attempt to answer all questions submitted; however, some questions may not be answered during the call due to time constraints.
The Company looks forward to providing additional discussion on its Q3 2020 Filings, as well as providing an update on the business and preliminary expectations for Q4 2020. Further, the Company will update shareholders on its future outlook and plans for growth in the coming quarters.
About Skylight Health Group
Skylight Health Group (CSE:SHG OTCQB:CBIIF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. healthcare services. With a patient roster of over 120,000 patients, the Company’s operations spread across 14 states and continues to expand in services and locations both organically and by way of strategic acquisitions.
The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.
For more information please visit www.skylighthealthgroup.com or contact:
Jonathan L. Robinson CFA
Oak Hill Financial