Dr. Alexander Dobranowski reports

MCI ONEHEALTH REPORTS 30% INCREASE IN REVENUE, ON TRACK FOR RECORD YEAR IN PATIENT VISITS

MCI Onehealth Technologies Inc. today released its financial results for the three-month period ended March 31, 2022.

• Thirty-per-cent increase in revenue over the same period last year, driven by higher patient volumes and the acquisitions of Khure Health and Polyclinic in 2021. Quarterly revenue of $13.0-million, on track for another record year in multiple business units.
• Patient volumes up 12 per cent over the same period last year, excluding increases from acquisitions.
• Doubling of specialist visits through in-network care pathway optimization and significant advancement in both the rollout of the company's smart referral system that leverages the company's new data backbone and standing up the company's data lake to support customers seeking access to analytic insights contained in the company's 2.9 million health records, up from 2.5 million.
• Number of physicians in the MCI network at record numbers, ending first quarter with nearly 260 physicians and specialists providing care in-clinic and virtually, most specialist appointments delivered within four weeks of referral, and adding additional physicians at a rate of approximately five per month.
• Pipeline of up to $4-million worth of projects for health data insights expected from launch of MCI's data lake.
• Binding commitment from founding shareholders to provide up to $5-million of debt financing to the company at any time prior to Dec. 31, 2023. The financing is available to the company upon request to ensure the company executes on its strategic business plan.
• Polyclinic acquisition performing well, contributing 15.8 per cent of the company's revenue.

"We're seeing terrific growth in patient visit volumes, which are significantly on the rise from the increasing availability of MCI health services across multiple platforms, including our clinic network, MCI Connect and telehealth, and from added convenience for the patients that come to us from our corporate relationships," said Dr. Alexander Dobranowski, chief executive officer of MCI. "Importantly, we're seeing not just more patients, but returning patients getting the comprehensive care they deserve, efficiently and effectively delivered by the integration of specialist health care directly within the MCI network. Our high performance health care network is delivering our goal: more preventative, more personalized medicine with continuity of care that creates a more satisfying patient journey. In keeping with our strategy to be a pre-eminent health technology leader, we're securing interest from more and more data partners who recognize the valuable insights to be gained from the full-perspective patient health journeys that MCI's tech-enabled network is uniquely able to capture."

The company's concierge health care offering continues to add members organically, including a 12-per-cent increase in membership in the first quarter. MCI's clinical research organization, Canadian Phase Onward, currently has nine client-sponsored research studies under way for a variety of therapeutic indications for a number of North America's top pharma and nutraceutical companies. MCI's Corporate Health Solutions (CHS) is poised to launch a B2C (business-to-consumer) e-commerce site for health products and health services. Virtual consultations for international insurance patients, and Urgent Workplace Injury Visits on MCI Connect, the company's virtual care platform, are also coming on-line through the expanding CHS portfolio.

"The strong patient revenue outcomes we've generated, and the steady progress we've made in integrating now-complementary business units, is the inspiration for our founding shareholders to commit additional funding to facilitate the timely and effective rollout of our data-driven revenue initiatives in the months to come," added Dr. Dobranowski.

Based on its current cash position, operating budgets, positive cash flow forecasts, untapped lines of credit and access to funds through its largest shareholders, the company believes that it has sufficient cash to support and sustain its plans for the foreseeable future.

A summary of MCI's financial and operational highlights for the quarter are set out herein, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on MCI's SEDAR page.

First quarter 2022 highlights

Significant financial and operational highlights for MCI during the first quarter of 2022 included:

• Revenue growth year on year: Revenue for the first quarter of 2022 increased 30 per cent over the same period in 2021, driven by increased patient volumes and revenue contributed by recently acquired businesses. Total revenue for the three months ended March 31, 2022, was $13.0-million, compared with total revenue of $10.0-million in the comparable period in 2021.
• Increased patient volumes: Patient volumes grew approximately 12 per cent, year on year, excluding increases from recently acquired businesses. Patient volumes continued to improve as COVID-19 restrictions ease and pent-up demand for health services continues to grow.
• Smart referral system: The company has made significant progress in rolling out its smart referral system, the first application to leverage the data backbone which the company is developing with a leading data analytics partner. The smart referral system streamlines the flow of patient referrals from general practitioners to specialists within the company's network, optimizing patient care pathways and increasing revenue from existing customers.
• Information and data analytics: The company has also made significant progress in standing up its data lake, comprising its ever-increasing volume of health records, currently at 2.9 million. The company anticipates that in the second and third quarters of 2022 it will begin servicing customers looking for data insights from these records, which are highly relevant for pharma, life sciences, health industry, clinical researchers and AI-(artificial intelligence)-technology developers.
• Growth in corporate customers: The company added 20 new corporate health customers in the first quarter of 2022, including a national program for a national retailer (preplacement testing) and new national insurance programs with Bupa Global, Faulk, World Travel Protection and Euro-Centre, as well as launching new insurance medical services in Ontario to Sunlife's program for UHIP/CHIP and providing medical testing services for an oil and gas sector leader and the United States Embassy in Toronto. Additionally, MCI Corporate Health Solutions was awarded the tender for Metrolinx (Job Demands Analysis). Overall revenue from corporate health services declined during the quarter due to decreased demand for COVID-19 testing but is expected to recover as more customers are on-boarded and new service offerings come on line.
• Net losses: Net losses for the quarter were $4.2-million, as compared with a loss of $2.5-million in the same quarter in the previous year, reflecting increased expenses relating to investment in R&D (research and development), share-based compensation and acquisition-related expenses as the company continues to focus on rapid growth and expansion.
• Adjusted EBITDA: Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was negative $2.4-million, as compared with an adjusted EBITDA of negative $600,000 in the same period last year.

Outlook

MCI expects to accelerate total company revenue growth in fiscal 2022 as it executes its strategic plan on multiple fronts including:

• Organic growth of government insured health services from its omnichannel network of clinics, telehealth, the MCI Connect virtual platform and a substantial increase in its physician base from new physician recruiting efforts.
• Continued organic growth in health services provided to corporate customers, as it expands its customer base, increases the number of available service offerings and ramps up its efforts to service national and Calgary-based customers.
• New technology partnerships and strategic acquisitions to further activate MCI's pipeline of interests in health data insights from the company's data lake.
• Exploration of commercial relationships that leverage expressed interest in Khure's AI-driven clinical evidence around rare, chronic and specialty diseases to accelerate patient recruitment for clinical trials, accelerate patient access to treatment, support regulatory decision-making through the application of real-world evidence and set the foundations for new AI technologies, and the launch of Khure's cloud-based version.
• More than 15 clinical trial and screening engagements with global pharma companies actively under way.
• Continued momentum targeting the $300-billion North America data and analytics market segment opportunity, with MCI's AI-enabled SaaS (software-as-a-service) platform that provides advanced analytics to third parties.
• Opportunities are being explored with top pharmaceutical companies, pharmaceutical marketing companies, precision medicine companies and top-tier university centres.
• Launch of versions of MCI Connect for mobile phones and connected wearables such as Apple iWatch.
• Acquisitions of specialty clinics to expand its health service offerings and enter new markets by leveraging technology to deliver more services to its large and growing patient and physician base.

Conference call details

MCI will hold a conference call to discuss progress on its key strategic initiatives and financial results for the first quarter of 2022, on May 16, 2022, at 5:30 p.m. ET. Participants are encouraged to access the call at least 10 minutes prior to start.

Date:  Monday, May 16, 2022

Time:   5:30 p.m. ET

Duration:  60 minutes

Dial-in Canada/United States:  833-540-1153 (toll-free); 918-922-6528 (international)

Conference call ID:  6946137

About MCI Onehealth Technologies Inc.

MCI Onehealth is a health care technology company focused on empowering patients and doctors with advanced technologies to increase access, improve quality and reduce health care costs. As part of the health care community for over 30 years, MCI Onehealth operates one of Canada's leading primary care networks with 25 clinics, serves more than one million patients annually and had nearly 300,000 telehealth visits last year, including on-line visits. MCI Onehealth additionally offers an expanding suite of occupational health service offerings that support a growing list of over 550 corporate customers. Led by a proven management team of doctors and experienced executives, MCI Onehealth remains focused on executing a strategy centred around acquiring technology and health services that complement the company's current road map.

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