WELL Health Achieves Record Results Reflecting 573% YoY Revenue Growth and Positive Net Income in Q4-2021
- WELL reported record quarterly revenues of $115.7 million in Q4-2021 representing a 573% year-over-year (YoY) increase compared to Q4-2020. WELL’s annual revenue for 2021 was $302.3 million, an increase of 502% compared to the prior year.
- WELL achieved Adjusted EBITDA(2) of $25.7 million in Q4-2021, an increase of 324% as compared to Adjusted EBITDA(2) of $0.8 million for Q4-2020.
- WELL reported Adjusted Net Income(3) of $5.3 million in Q4-2021, and positive Net Income of $0.7 million for Q4-2021.
- WELL delivered 700,359 total omni-channel patient visits in Q4-2021, representing a YoY increase of 123%. When combined with our asynchronous visits, the total number of visits was 972,740.
- Circle Medical and Wisp continued to grow rapidly and are expected to achieve an annualized revenue run-rate of better than US$80 million in March 2022.
- WELL provides strong outlook with total 2022 revenue expected to exceed $500 million, and the Company expects to be profitable for the full year of 2022, on an Adjusted Net Income(3) basis.
Vancouver, B.C. – March 31, 2022, - WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL”), a company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, today announced its audited consolidated annual financial results and results for the fiscal fourth quarter ended December 31, 2021.
Hamed Shahbazi, CEO and Founder of WELL commented, “We are very pleased with our fourth quarter and full year results for 2021, delivering close to one million patient-visits and asynchronous consultations. Last year was a transformational year for WELL, as we completed substantial acquisitions including CRH Medical and MyHealth, as well as a number of tuck-in acquisitions, which catapulted the Company to an over $460 million annualized revenue run-rate and an Adjusted EBITDA run-rate of over $100 million. We have added significant scale to our business and increased our leadership position as the prominent end-to-end healthcare company in Canada. Also, WELL is a profitable business that is generating significant free cash flow to fund its organic and in-organic growth.”
Mr. Shahbazi added, “Our outlook for 2022 remains strong and resilient. The capital WELL generates will continue to be allocated in a disciplined manner, which may come in the form of further acquisitions, share repurchases, or to accelerate organic growth. We are looking forward to continuing to deliver strong results in the next few quarters, with sustained organic growth.”
Fiscal 2021 Annual Financial Highlights:
- Total revenue for the year ended December 31, 2021 was $302.3 million, compared to total revenue of $50.2 million for the prior year, an increase of 502% driven by acquisitions during the past year and organic growth.
- WELL achieved Virtual Services revenues of $75.6 million for the year ended December 31, 2021, representing an increase of 460% as compared to Virtual Services revenue of $13.5 million in the prior year
- WELL achieved record Adjusted Gross Profit(1) of $153.7 million, representing 624% growth compared to Adjusted Gross Profit(1) of $21.2 million in the prior year. WELL achieved record Adjusted Gross Margin(1) percentage of 50.8% for the year ended December 31, 2021 compared to Adjusted Gross Margin(1) percentage of 42.2% in the prior year. The increase in Adjusted Gross Margin(1) percentage is mainly due to the addition of higher margin CRH, MyHealth and other new Virtual services revenue over the past year.
- Adjusted EBITDA(2) was $60.4 million for the year ended December 31, 2021, compared to Adjusted EBITDA(2) of $0.2 million in the prior year.
- Adjusted Net Income(3) was $16.0 million, or $0.08 per share, for the year ended December 31, 2021, compared to Adjusted Net Loss(3) of $1.3 million, or a loss of $0.01 per share in the prior year.
Fourth Quarter 2021 Financial Highlights:
- WELL achieved record quarterly revenue of $115.7 million in Q4-2021, compared to revenue of $17.2 million generated during Q4-2020, an increase of 573% driven by acquisitions during the past year and organic growth.
- WELL achieved Virtual Services revenues of $31.3 million in Q4-2021, representing 354% YoY growth as compared to Virtual Services revenue of $6.9 million in Q4-2020.
- WELL achieved record Adjusted Gross Profit(1) of $63.5 million in Q4-2021, representing 693% YoY growth as compared to Adjusted Gross Profit(1) of $8.0 million in Q4-2020. WELL achieved record Adjusted Gross Margin(1) percentage of 54.9% during Q4-2021 compared to Adjusted Gross Margin(1) percentage of 46.5% in Q4-2020.
- Adjusted EBITDA(2) was $25.7 million for Q4-2021, compared to Adjusted EBITDA(2) of $0.8 million for Q4-2020. Adjusted EBITDA(2) was positively impacted in the quarter by WELL’s recent acquisitions.
- Adjusted Net Income(3) was $5.3 million, or $0.03 per share, for the quarter ended December 31, 2021, compared to Adjusted Net Income(3) of $2.4 million, or $0.02 per share in Q4-2020.
Outlook:
WELL’s outlook remains very positive across all the business units and for the entire Company as a whole. The Company’s organic growth coupled with its continued focus on tuck-in acquisitions is expected to catapult WELL’s revenue to exceed half a billion in annual revenue in 2022.
WELL’s goals for 2022 are to: (i) build out and refine its practitioner enablement platform and deploy its services both internally to WELL healthcare practitioners as well as offer its services to healthcare practitioners outside of the Company; (ii) achieve organic growth across all of its operating business units; (iii) follow a disciplined capital allocation strategy designed to continue to activate organic growth; and (iv) WELL expects to be profitable for the full year 2022, on an Adjusted Net Income basis.
In Canada, WELL is quickly expanding on what it has built -- the most consequential network of non-governmental healthcare assets across the country with significant operations and interoperability between its outpatient clinics, EMR, Diagnostics and Telehealth businesses
In the United States, the combined annualized run-rate revenue of Circle Medical and Wisp is better than US$80 million based on preliminary March volumes. We are expecting the combined run-rate revenue to exceed US$100 million later this year.
WELL is a purpose-driven business that aims to transform the world for the better, as such the Company has embarked on an ongoing ESG (Environmental, Social and Governance) program. The Company plans on publishing a report in the coming quarter highlighting WELL’s ESG strategy, reporting initiatives and targeted actions.
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WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is a practitioner focused digital healthcare company whose overarching objective is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end-to-end practice management tools inclusive of virtual care and digital patient engagement capabilities as well as Electronic Medical Records (EMR), Revenue Cycle Management (RCM) and data protection services. WELL uses this platform to power healthcare practitioners both inside and outside of WELL's own omni-channel patient services offerings. As such, WELL owns and operates Canada's largest network of outpatient medical clinics serving primary and specialized healthcare services and is the provider of a leading multi-national, multi-disciplinary telehealth offering. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and is part of the TSX Composite Index. To learn more about the Company, please visit: www.well.company.
Forward-Looking Statements
This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company’s goals, strategies and growth plans; expectations regarding continued revenue and EBITDA growth; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions or share repurchases; the expected financial performance as well as information in the “Outlook” section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL’s comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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