Dr. Alexander Dobranowski reports
MCI ONEHEALTH SECOND QUARTER FINANCIAL RESULTS, INCLUDING A 23% INCREASE IN REVENUE QUARTER-OVER-QUARTER
MCI Onehealth Technologies Inc. today released its financial results for the three- and six-month periods ended June 30, 2022.
Twenty-three-per-cent increase in revenue over the same period last year, reflecting higher patient volumes from the company's clinics, telehealth services, MCI Connect virtual health care services and the acquisitions of Khure Health and the Polyclinic Group of Companies in 2021. Quarterly revenue of $13.8-million, on track for another record year in multiple business units.
Polyclinic and Khure acquisitions performing well, with revenue growing over 500 per cent for the rare disease data screening product anchored by Khure.
Patient volumes up over 10 per cent over the same period last year, excluding increases from acquisitions.
- Rollout of the company's data insights as a service offering, as the company begins servicing customers looking for clinical data insights from its 2.9 million health records, which are highly relevant for pharma, life sciences, health industry, clinical researchers and AI (artificial intelligence) technology developers.
of physicians in the MCI network at record numbers, ending the second quarter with nearly 280 physicians and specialists providing care in-clinic and virtually, with the company on track to increase its physician base by over 20 per cent in 2022.
"Physician-directed health care with convenient access to specialists while maintaining top-quality continuity of care is the cornerstone of the patient experience at MCI. As expected, revenue is growing in alignment with the growth of our patient population as we offer additional patient-facing services and connect with patients for the care they might have been missing throughout the pandemic," said Dr. Alexander Dobranowski, chief executive officer of MCI. "We're now using our innovative data insights infrastructure to help family physicians identify patients within their practice who might be at risk of rare and chronic diseases to ensure they get on the right care pathway. Our patient-centred, data-driven approach can have a significant impact on patients, helping to catch disease early, improve outcomes and enhance quality of life."
MCI is also nurturing international opportunities to leverage its vast pool of high-quality structured clinical information. MCI is attracting interest from more and more data insight clients who recognize the potential value of the knowledge that can be gained from the full-perspective, real-world patient health journeys that MCI's tech-enabled network is able to capture.
"We are firmly committed to driving excellence in health care in Canada and we are committed to delivering on our strategy and generating value for our shareholders," added Dr. Dobranowski. "The second quarter was a major development and activation period for our data-driven approach. From an investor perspective, not only are we advancing our core strategies of building a high performance health care network of choice and growing our technology and data offerings, but the revenue opportunities that this enables are solidifying, with clients engaging our data insights as a service portfolio."
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.
Second quarter 2022 highlights
Significant financial and operational highlights for MCI during the second quarter of 2022 included:
Revenue growth year on year:
Revenue for the second quarter of 2022 increased 23 per cent over the same period in 2021, driven by higher patient volumes from the company's clinics, telehealth services, MCI Connect virtual health care services and the acquisitions of Khure and Polyclinic. Total revenue for the three months ended June 30, 2022, was $13.8-million, compared with total revenue of $11.2-million in the comparable period in 2021.
Smart referral system:
The company continues to make 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, streamlining 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:
MCI's data lake of nearly three million clinical records is now fully secured and accessible and being queried for data-driven health insights that may benefit patients and add value to Ontario's health system. Currently, MCI provides data insights as a service in six categories: rare disease; complex major medical/chronic; patient cohort building; clinical trial recruitment; synthetic health data and bespoke insights. Such services are targeted primarily at pharmaceutical companies, life science companies, precision medicine companies and top-tier university centres.
The company hired 15 new physicians during the reporting period who will begin delivering health services to patients in 2022. MCI anticipates that its physician base will have increased by over 20 per cent by the end of 2022.
Health technology and research services: The company's health technology and research services generated revenues of $1.2-million in the three-month period ended June 30, 2022, up 508 per cent over the same quarter last year, as the company's Khure and Polyclinic acquisitions come on line, increasing the depth of the company's revenue mix.
Corporate health services: The company added 20 new corporate health customers in the second quarter of 2022, including one of Canada's largest retail distributors and a world-renowned private educational institution in Toronto, Ont. Overall revenue from CHS declined during the three-month period ended June 30, 2022, by 71 per cent to $540,000, 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, including MCI's Shopify-driven on-line store.
Net losses for the quarter were $4.2-million, as compared with a loss of $2.8-million in the same quarter in the previous year, reflecting increased research and development expenses relating to the launch of the company's data backbone and standing up the company's data lake, as the company continues to focus on rapid growth and expansion in the direction of its data insights as a service offering to national and international targets.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization):
Adjusted EBITDA for the quarter was negative $2.9-million, as compared with an adjusted EBITDA of negative $700,000 in the same period last year.
MCI expects to accelerate total company revenue growth in fiscal 2022 as it executes its strategic plan on multiple fronts including:
Continued momentum targeting the $300-billion North America data and analytics market segment opportunity, with MCI's data insights as a service platform that provides advanced analytics to third parties.
- 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, including medical and cosmetic Botox, mental health services, and the addition of more varied specialty practices.
- New technology partnerships and strategic acquisitions to further activate MCI's pipeline of interests in health data insights from the company's data lake.
- More than 15 clinical trial and screening engagements with global pharma companies actively under way.
- Launch of versions of MCI Connect for mobile phones and connected wearables such as Apple iWatch, and expansion of the MCI Connect service to its Alberta-based patients and nationally to corporate clients.
- 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 and to gain more patients, fueling further expansion of its clinical records data lake.
Conference call details
MCI will hold a conference call and webcast to discuss progress on its key strategic initiatives and financial results for the second quarter of 2022, on Aug. 15, 2022, at 5:30 p.m. ET. Please be advised that the process for listening to and participating in MCI's quarterly conference call has changed. MCI strongly encourages attendees to join by webcast.
Participants are encouraged to access the call or webcast at least 10 minutes prior to start.
Onehealth Technologies Inc.
MCI 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 operates one of Canada's leading primary care networks with nearly 260 physicians and specialists, serves more than one million patients annually, and had nearly 300,000 telehealth visits last year, including on-line visits. MCI additionally offers an expanding suite of occupational health service offerings that support a growing list of nearly 600 corporate customers. Led by a proven management team of doctors and experienced executives, MCI 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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