WELL Health Provides Corporate Update Demonstrating Strong Progress Across Digital and In-Person Channels
- Thus far in Q1-2021, WELL has delivered 458,852 total patient visits across all channels, surpassing total patient visits delivered of 302,722 in all of Q4-2020.
- WELL’s Canadian operations continue to show improvement in profitability and cash flows in Q1-2021 with the Company’s Adjusted EBITDA contribution from Canadian operations expected to experience quarter-over-quarter improvement as compared to Q4-2020.
- Circle Medical Technologies Inc. (“Circle Medical”) is pleased to announce it has been approved by the state of California to receive and distribute vaccines to its patient population.
- WELL’s wholly owned subsidiary Insig Corporation (“Insig”) has now successfully integrated Simpill Health Group Inc. (“Pillway”), as the preferred prescription delivery option for new users on its platform.
- CRH Medical Corporation (“CRH”) (TSX: CRH, NYSE: CRHM) has scheduled the special meeting of its securityholders to be held on April 16, 2021 in connection with the proposed acquisition by WELL.
Vancouver, BC – March 26, 2021 - WELL Health Technologies Corp. (TSX: WELL) (“WELL” or the “Company”), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to provide the following updates:
WELL recently reported over one million total omni channel patient visits on an annualized run-rate basis and is pleased to further announce that it has already delivered 458,852 total patient visits across all channels thus far in Q1-2021, including all in-person patient visits delivered by WELL practitioners and all telehealth visits supported by telephone and the Company’s virtual care platforms administered by WELL and third-party practitioners. This figure reflects a 52% increase as compared to total patient visits delivered across all channels of 302,722 in Q4-2020. The growth in patient visit volumes is attributable to both organic and inorganic growth experienced by the Company especially given that there were a number of acquisitions completed in Q4-2020 and Q1-2021 that contributed to these figures.
WELL’s Canadian operations continue to show improvement in profitability and cash flows in Q1-2021 as the Company’s Adjusted EBITDA(1) attributable to its Canadian operations is expected to experience quarter-over-quarter improvement as compared to Q4-2020. WELL recently reported record Adjusted EBITDA(1) of $765K for Q4-2020, which was also the first ever positive Adjusted EBITDA(1) quarter in the Company’s history and included Adjusted EBITDA(1) of $417K from its Canadian operations and $348K Adjusted EBITDA(1) contribution from its US operations.
Circle Medical, a company that is majority-owned by WELL is pleased to announce it has been approved by the state of California to receive and distribute vaccines to its patient population. While a committed ship to Circle Medical date has not yet been established, Circle Medical is now ready to receive and administer its first distribution of such vaccines from public health officials in the state across its three locations.
WELL’s wholly owned Canadian telehealth focused subsidiary Insig has now successfully integrated Pillway, as the preferred prescription delivery option for new users on its platform. Pillway is a full-service digital pharmacy that also provides e-prescription products and services. With this integration, prescriptions can be seamlessly sent via an API interface to Pillway who automatically sends updates and provides prescription tracking to patients. Insig expects it will soon be rolling out Pillway to existing patients to further improve the delivery experience.
Further to WELL’s announcement on February 8, 2021 and in connection with WELL’s proposed acquisition of all the issued and outstanding common shares of CRH, a special meeting of CRH’s securityholders has been scheduled to be held on April 16, 2021 to approve the acquisition by WELL. CRH is expected to announce the voting results of the meeting on the same day. WELL is not aware of any impediments to a successful close and anticipates a positive outcome to the special meeting followed by closing of the Transaction shortly thereafter. Furthermore, on February 22, 2021, WELL and CRH each filed a Notification and Report Form in accordance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act") pursuant to the terms of the Arrangement Agreement. Expiration of the waiting period under the HSR Act occurred as of 11:59pm EDT on March 24, 2021, thereby satisfying one of the parties’ closing conditions.
“We are very pleased to provide this business update which demonstrates continued growth and progress in terms of significantly augmenting our patient visits across all channels both in relation to our patient services business and our platform enabled virtual visits”, said Hamed Shahbazi, Chairman and CEO of WELL Health. “WELL is a very unique company that is not only serving up the best in digital health but is on the cusp of producing significant cashflows once its proposed acquisition of CRH Medical is concluded. With the date of the special meeting for security holders being set on April 16, 2021, we look forward to the prospect of completing the deal within approximately one month.”
- Non-GAAP measure. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, special warrants related expenses, change in fair value of investments, share of loss of associate, exchange difference, and stock-based compensation expense. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 27 primary healthcare clinics, is Canada's third largest digital Electronic Medical Records (EMR) supplier serving approximately 2,200 healthcare clinics, operates a telehealth service in both Canada and the United States and is a provider of digital health, billing and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. To access the Company's telehealth service, visit: tiahealth.com, and for corporate information, visit: www.well.company.
Notice Regarding Forward-Looking Statements
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature including: the expectation of continued quarterly improvement in Adjusted EBITDA from Canadian operations; the expectation that Insig will soon roll out Pillway’s platform to existing patients; and statements regarding the CRH meeting, positive voting results thereof and the expectation of a successful close of the CRH transaction. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “would”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or the negative thereof or similar variations. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking statements, including: risks that the conditions to completion of the CRH acquisition will not be satisfied as contemplated or at all; business disruption risks relating to COVID-19; regulatory risks, including those related to healthcare, privacy and data security; and other risks outlined in the Company's publicly filed documents available on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
For further information
Pardeep S. Sangha
VP Corporate Strategy and Investor Relations