Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES FIRST QUARTER RESULTS AND 11.8% DIVIDEND INCREASE

Medical Facilities Corp. has released its financial results today for the first quarter ended March 31, 2024. Medical Facilities has increased its quarterly dividend by 11.8 per cent. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q1 2024 highlights (compared with Q1 2023 and excluding the divested MFC Nueterra ambulatory surgery centres):

• Facility service revenue increased 4.5 per cent to $108.3-million;
• Surgical cases increased by 4.3 per cent;
• Income from operations increased 29.6 per cent to $17.5-million;
• EBITDA (earnings before interest, taxes, depreciation and amortization) increased 19 per cent to $22.3-million;
• Repaid $5-million on its corporate credit facility;
• Returned an additional $1.8-million to shareholders through the purchase of 253,900 common shares under its normal course issuer bid (NCIB).

"We had a solid first quarter with our surgical hospitals achieving higher revenues on increased surgical case volumes," said Jason Redman, president and chief executive officer of Medical Facilities. "During the quarter, we utilized our cash flow to fortify our financial position by further reducing the amount owed on our corporate credit facility and continued to buy back shares under our NCIB program.

"We are also pleased to announce an 11.8-per-cent increase in our quarterly dividend. The increase reflects the sustained solid cash flow and operating performance of the business, and further demonstrates our commitment to delivering shareholder returns and enhancing shareholder value."

During the quarter, Medical Facilities paid a quarterly cash dividend of 8.05 Canadian cents per common share (or 32.2 Canadian cents per share on an annualized basis), which represented an annualized yield of 3.11 per cent on the March 28, 2024, closing price of $10.35 (Canadian) per common share.

On March 31, 2024, Medical Facilities had consolidated net working capital of $7.8-million and cash and cash equivalents of $25.7-million compared with net working capital of $19.8-million and cash and cash equivalents of $24.1-million as at Dec. 31, 2023. During the quarter, Medical Facilities made repayments of $5-million against the corporate credit facility and repurchased common shares under the NCIB for aggregate consideration of $1.8-million. The change in net working capital also reflects an increase in the obligation for purchase of common shares to $9.7-million, which was recognized under the automatic share purchase plan in relation to the NCIB as of March 31, 2024, including applicable buyback taxes. Subsequent to the period-end, the corporation purchased 93,500 of its common shares for a total consideration of $700,000 under the automatic share purchase plan, through May 3, 2024.

Medical Facilities' financial statements and management's discussion and analysis for the three-month period ended March 31, 2024, will be filed on SEDAR+ on Thursday, May 9, 2024, and will also be available on Medical Facilities' website.

Dividend increase

The board of directors has approved an 11.8-per-cent increase to the corporation's quarterly dividend to nine Canadian cents per common share commencing with the second quarter dividend payable to the shareholders of record at the close of business on June 28, 2024. The corporation believes that the new dividend rate is sustainable given its operations and cash available for distribution.

Notice of conference call

Management of Medical Facilities will host a conference call today, May 9, 2024, at 8:30 a.m. ET to discuss its first quarter financial results. All interested parties may join the conference call by dialling 1-800-836-8184 approximately 15 minutes prior to the call to secure a line. To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated call back.

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

About Medical Facilities Corp.

Medical Facilities, in partnership with physicians, owns a portfolio of highly rated, high-quality surgical facilities in the United States. Medical Facilities' ownership includes controlling interest in four specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, and an ambulatory surgery centre (ASC) located in California. The specialty surgical 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. The ASC specializes in outpatient surgical procedures, with patient stays of less than 24 hours.

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