Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION REPORTS SECOND QUARTER RESULTS

Medical Facilities Corp. has released its financial results today for the three-month and six-month periods ended June 30, 2026. All amounts are expressed in United States dollars unless indicated otherwise.

Q2 2026 highlights

(For continuing operations, excluding non-controllable, non-cash corporate level charges related to share-based compensation plans, compared with Q2 2025.)

• Facility service revenue grew 7.8 per cent to $63.1-million;
• Income from operations increased 9.4 per cent to $9.6-million;
• EBITDA (earnings before interest, taxes, depreciation and amortization) increased 7.1 per cent to $12.5-million;
• Returned approximately $17.1-million to shareholders through the purchase of 1,337,500 common shares via its normal course issuer bid (NCIB);
• Consolidated cash balance of $64.1-million, including a corporate cash balance of $58.0-million, at quarter-end.

"We delivered another solid quarter as a favourable mix of higher-value orthopedic and spine procedures drove growth in revenue, income from operations and EBITDA," said Jason Redman, president and chief executive officer of Medical Facilities. "At the same time, we returned meaningful capital to shareholders through our NCIB program. In the first half of the year, MFC repurchased 1,655,900 common shares for a total of $21.0-million, including 1,337,500 shares for $17.1-million during the quarter. We continue to remain focused on maximizing value for our shareholders and evaluating opportunities to do so."

Net income fluctuated significantly between the periods, primarily due to variations in non-cash finance costs (change in the value of exchangeable interest liability) and income taxes; these charges are incurred at the corporate level rather than at the facility level.

During the quarter, MFC paid a quarterly cash dividend of nine cents per common share (or 36 cents per share on an annualized basis), which represents an annualized yield of 2.01 per cent on the June 30, 2026, closing price of $17.90 per common share.

On June 30, 2026, MFC had consolidated net working capital of $65.2-million and cash and cash equivalents of $64.1-million compared with net working capital of $54.0-million, and cash and cash equivalents of $43.4-million as at Dec. 31, 2025. The change in consolidated net working capital primarily reflects the sale of Oklahoma Spine Hospital LLC (OSH) in the first quarter of 2026, resulting in an increase in cash and cash equivalents from the sale proceeds received, partly offset by a reduction in current assets and current liabilities with the removal of OSH's held-for-sale balances.

MFC's financial statements and management's discussion and analysis, for the three and six months ended June 30, 2026, will be filed on SEDAR+ on Thursday, Aug. 6, 2026, and will also be available on Medical Facilities' website.

Notice of conference call

Management of MFC will host a conference call today at 8:30 a.m. ET to discuss its second quarter financial results. You may join the conference call by dialling 1-888-699-1199 approximately 15 minutes prior to the call to secure a line. To join the call without operator assistance, you may register and enter your phone number on-line to receive an instant automated callback.

A live audio webcast of the call will be available on-line. Please connect at least 15 minutes prior to the call to allow time for any software download that may be required to join the webcast. The webcast will be archived on Medical's website following the call date.

About Medical Facilities Corp.

Medical Facilities owns a 51-per-cent controlling interest, with its physician partners owning the remaining 49-per-cent interest, in two highly rated, high-quality specialty surgical hospitals located in Arkansas and South Dakota. The hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities.

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