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Press release content from Business Wire. The AP news staff was not involved in its creation.

Jack Nathan Health Announces Q3 2020 Financial Results

December 30, 2020 GMT

TORONTO--(BUSINESS WIRE)--Dec 30, 2020--

Jack Nathan Medical Corp. (TSXV:JNH) (“Jack Nathan Health” “JNH” or the “Company”) announced today its unaudited financial results for the third quarter ended October 31, 2020. Jack Nathan Health’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Management Commentary

“We went public at the end of Q3. This represents an important milestone for our long-term growth plans in supporting patients and how they access high-quality health care within their communities, through our relationship with Walmart. We are at an inflection point with a profitable, strong, and sustainable foundation. As a result, we are poised and well financed to materially scale and drive top and bottom-line growth,” said George Barakat CEO of Jack Nathan Health. “Over the coming year we plan to execute on our five key objectives to allocate funds strategically and drive shareholder value.

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2021 is going to be an exciting year for Jack Nathan Health. We have one of the largest clinic networks in Canada. We are well funded for growth. We have a ‘built-in’ pipeline of accretive opportunities in front of us that will complement many aspects of our strategic plans, both in clinic and through technology. We look forward to expanding the ‘Circle of Healthcare’ patient first model within Canada and internationally.”

FINANCIAL HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED OCTOBER 31, 2020

Operating Results

  • Revenues for the 9 months ended October 31, 2020 is highlighted by a 12.6% increase. For the 9 months ended October 31, 2020, revenues were $3,135,914 as compared to $2,784,140 in the same period in 2019, an increase of $351,774. The increase consists primarily of an increase in recruitment fees from accelerated recruitment, retention fees from new clinic openings and a decrease in payments to physicians.
  • Revenue for the 3 months ended October 31, 2020 is highlighted by a 3.5% increase. For the 3 months ended October 31, 2020, revenues were $993,691 as compared to $959,176 in the same period in 2019, an increase of $34,515. The increase consists primarily of an increase in recruitment fees and license fees from additional locations, offset by a slight decrease in clinic operations due to some minor impacts of COVID-19 related issues.
  • Adjusted EBITDA (1) for the 9 months ended October 31, 2020 is highlighted by a 103% increase. Adjusted EBITDA for the 9 months ended October 31, 2020 was $770,074 or 25% of total revenues as compared to $379,332 or 13.5% of total revenues in the same period in 2019.
  • Adjusted EBITDA (1) for the 3 months ended October 31, 2020 of $110,043 compared to $246,571 in the same period in 2019. The decrease in Adjusted EBITDA consists primarily of an overall cost of new management and infrastructure to position the Company for growth and scale in several areas of the business.
  • Income from operations for the 9 months ended October 31, 2020 is highlighted by a 108% increase. For the 9 months ended October 31, 2020, Income from operations was $632,350 as compared to $304,232 in the same period in 2019. The increase in income from operations consists of an increase in revenues year to date with expenses only marginally increased.
  • Income (loss) from operations for the 3 months ended October 31, 2020 of ($78,610) compared to $223,738 in the same period in 2019. The decrease in income from operations consists of an increase in revenues from license fees, offset primarily by a new expense item for stock compensation and a variety of other increased expenses related to the expansion of the Company’s infrastructure and staff for growth and scale in 2021.

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Balance Sheet as at October 31, 2020

  • Cash of $5.4 million (January 31, 2020 - $0)
  • Total assets of $6.8 million (January 31, 2020 - $1.7 million)
  • Total liabilities of $1.3 million (January 31, 2020 - $2.8 million)

Shares Outstanding

As at December 29, 2020, the Company had 80,020,108 common shares outstanding, 5,950,000 stock options outstanding, and 590,341 warrants outstanding.

In addition, on October 29, 2020, the Company announced acceleration of the expiry date of its outstanding warrants related to the August 4, 2020 financing, to November 30, 2020. In total, 5,590,606 warrants were exercised by November 30, 2020, at an exercise price of $0.75, for gross proceeds of $4,192,955 (in addition to the $5.4 million on the Balance Sheet as at October 31, 2020 noted above).

(1) Adjusted EBITDA

Management believes Adjusted EBITDA is a useful measure to assess the ongoing performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance as well as one-time or non-recurring expenses. We define Adjusted EBITDA as EBITDA adjusted to add back or deduct, as applicable, certain expenses, costs, charges, or benefits incurred in the period, which in management’s view, are not indicative of normal operations, including: (i) stock compensation expense, (ii) interest income, (iii) other income (expense), (iv) loss on investments at fair value, (v) write down on investments, and (vi) listing expenses.

Non-GAAP measure: Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

For further information regarding the Company’s financial results for these periods, please refer to the Company’s interim financial statements for the period ended October 31, 2020 together with the MD&A, available on Jack Nathan Health’s issuer profile on SEDAR at www.sedar.com and the Company’s website https://www.jacknathanhealth.com/.

About Jack Nathan Medical Corp.

Jack Nathan Medical Corp., operating as Jack Nathan Health ®, is one of Canada’s largest health care networks. Jack Nathan Health is an innovative health care company that is improving access for millions of patients by co-locating physician and ancillary medical services conveniently located inside Walmart ® stores.

Jack Nathan Health provides an exceptional level of patient care, made possible through patient-centric physicians, a variety of medical services, technology and programs, designed to put patients first. Our mission is to provide everyone access to the finest quality retail medical centres, with both in-clinic physicians and digital telemedicine, so you and your loved ones can “Live Your Best Life”.

Jack Nathan Health was established in 2006 and continues to expand its international footprint, delivering exceptional, state-of-the-art, turn-key medical centres in 76 Walmart locations across Canada including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec, as well as six locations in Mexico.

For more information, visit www.jacknathanhealth.com or www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to Jack Nathan are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to them, and are subject to certain risks, uncertainties and assumptions Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include but are not limited to: changes in economic conditions or financial markets; increases in costs; litigation; legislative and other judicial, regulatory, political and competitive developments; the economic and business impact of COVID-19 and operational difficulties. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

View source version on businesswire.com:https://www.businesswire.com/news/home/20201230005358/en/

CONTACT: IR:

David Berman, CFO,david.berman@jacknathanhealth.com

or

Mark Kuindersma, LodeRock Advisors,mark.kuindersma@loderockadvisors.comPR & Marketing:

Jennifer Usher, Director Marketing & Communications,jennifer@jacknathanhealth.com

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: RETAIL GENERAL HEALTH DISCOUNT/VARIETY HEALTH

SOURCE: Jack Nathan Medical Corp.

Copyright Business Wire 2020.

PUB: 12/30/2020 04:03 PM/DISC: 12/30/2020 04:03 PM

http://www.businesswire.com/news/home/20201230005358/en