Mr. Riadh Zine reports

AKUMIN ANNOUNCES SECOND QUARTER 2023 RESULTS, REVISED FY23 FINANCIAL OUTLOOK AND ESTABLISHMENT OF SPECIAL COMMITTEE

Akumin Inc. has released its financial results for the quarter ended June 30, 2023. Unless otherwise indicated, all amounts are expressed in United States dollars.

Second quarter 2023 highlights

• Akumin delivered second quarter same-store volume performance on a consolidated basis as follows:
  • Positive 3.1 per cent for MRI;
  • Positive 16.5 per cent for PET/CT;
  • Positive 3.4 per cent for oncology patient starts.
• The company reported revenue totalling $184.8-million for the second quarter, a $7.3-million or 4-per-cent decrease over the second quarter of last year.
• Net loss was $96.4-million for the second quarter, an increase in net loss of $70.3-million, compared with the prior-year period. This quarter's net loss included a goodwill impairment charge of $53.5-million related to the radiology division.
• Akumin generated $26.5-million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter, an $11.7-million or 31-per-cent decrease over the second quarter of last year.

Commenting on the quarterly results, Riadh Zine, chairman and chief executive officer of the company, said: "We experienced some challenges in the second quarter of 2023 that negatively impacted our financial results. Relative to the second quarter of last year, our adjusted EBITDA was effected by the following: i) radiology revenues were down $4.6-million mainly due to the ongoing closure of our Port Charlotte facility and delays in equipment delivery for new mobile customers; ii) our oncology revenues were down $2.7-million due to reduced revenues from a certain customer related to an unresolved contract discrepancy, and delayed collections related to isolated customer liquidity issues; and iii) our expenses increased $3.9-million largely due to an increase in the cost and use of specialty tracers as well as general cost inflation, particularly in medical supplies. In addition, despite some early signs of improvement in first quarter of 2023, we continue to face an ongoing labour shortage in certain geographic markets, particularly with respect to clinical staff, which negatively impacted our ability to deliver higher same-store volume growth.

"Notwithstanding the operational challenges we face, we remain focused on the digitization of our business and the deployment of our remote clinical capabilities, which together with business development initiatives we have under way, will deliver significant benefits in 2024 and beyond. We continue to see strong demand for our services and significant partnership interest from hospitals and health systems which underscores the value of the Akumin platform," Mr. Zine continued.

Revised full-year 2023 financial outlook

Commenting on the financial outlook for the full year ending Dec. 31, 2023, Mr. Zine said: "We have revised our 2023 financial guidance given the challenges experienced during this quarter and assumed that we will continue to be negatively impacted for the balance of 2023. Our updated guidance also includes a reduction in capital expenditures to reflect certain equipment delivery delays and to ensure optimal and efficient deployment of equipment. While we remain confident that our platform will deliver results as we originally anticipated in our previous 2023 guidance, we now expect that performance will not be achieved until 2024, and as a result the revised financial results of the company for 2023 will be [shown in the attached table]."

The company also notes that its board of directors has formed a special committee to explore strategic initiatives related to its capital structure. The special committee is diligently evaluating potential solutions. There can be no assurance that the special committee's review process will result in any transaction or other alternative and there is no set timetable for the strategic review process and the company does not intend to provide updates unless or until the board of directors approves a specific action or otherwise determines that disclosure is appropriate or necessary.

Investor presentation

Akumin would like to invite interested parties to an investor presentation to be held on Thursday, Aug. 10, 2023, from 8:30 a.m. to 9:30 a.m. Eastern Time where management will discuss the second quarter results.

Conference call details

Date:  8:30 a.m. Eastern Time, Thursday, Aug. 10, 2023

To join by phone or access on-line, visit the company's website.

North American toll-free:  888-664-6383

A related presentation will be available from Akumin's website. 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 until Thursday, Aug. 17, 2023, by calling 416-764-8677 or toll-free 1-888-390-0541, using pass code 945745.

About Akumin Inc.

Akumin is 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. Akumin provides (1) fixed-site outpatient diagnostic imaging services through a network of owned and/or operated imaging locations; and (2) outpatient radiology and oncology services and solutions to approximately 1,100 hospitals and health systems across 48 states. By combining clinical and operational expertise with the latest advances in technology and information systems, Akumin facilitates more efficient and effective diagnosis and treatment for patients and their providers. Akumin's imaging procedures include MRI, CT, positron emission tomography (PET and PET/CT), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures; our cancer care services include a full suite of radiation therapy and related offerings.

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