Power Growth Investor Revenue jumped 46.8% at Well Health Technologies
The health-care sector is a government-backed, recession-resilient industry, and this firm is shaping up to be a major player. The company is now the largest private-sector operator of outpatient medical clinics in Canada.
Its aggressive acquisition strategy is targeted at telehealth and other services across Canada and in the U.S.
It just recorded another profit in the quarter ended September 30.
WELL HEALTH TECHNOLOGIES (Toronto symbol WELL; www.well.company) provides Electronic Medical Records software and services to health clinics. The company owns and operates Canada’s largest network of outpatient medical clinics offering primary and specialized healthcare services; it also the provider of a leading multinational, multi-disciplinary telehealth platform.
As of September 30, 2022, the company had a total of 85 clinics across Canada. In the U.S., its strategy has been to focus on key specialty areas such as: Anesthesia, gastroenterology, women’s health, and primary care with a focus on specialty niches such as mental health.
Well Health expanded its patient services business in the U.S. with the acquisition of CRH in April 2021. CRH delivers specialized care services focused on providing gastroenterologists throughout the U.S. with services and products for the treatment of gastrointestinal (GI) diseases. Through CRH, Well Health gains access to the U.S. healthcare system, including anesthesia services for patients undergoing endoscopic procedures at 126 Ambulatory Surgery Centers (ASCs) and GI clinics across 18 states as of September 30, 2022.
In addition, the company operates two primary care clinics under Circle Medical and three banding clinics located in the U.S. providing hemorrhoid treatments using the CRH O’Regan System.
In the quarter ended September 30, 2022, Well Health’s revenue jumped 46.8%, to $145.8 million from $99.3 million a year earlier. The big jump was mostly due to acquisitions, as well as higher telehealth and virtual primary healthcare activity.
Excluding one-time items, the company made $14.8 million, or $0.07 a share, in the quarter. That’s up 49.8% from a profit of $9.8 million, or $0.05.
Well Health continues to grow by acquisition.
Most recently, in September 2022, the company completed the acquisition of Phymed of Arizona, LLC, also known as Grand Canyon Anesthesia. That firm is a gastroenterology anesthesia services provider in Arizona, which generates more than $16 million U.S. in annual revenue.
Grand Canyon Anesthesia is a well-established group consisting of over 100 anesthesia providers (CRNAs and Anesthesiologists) supporting the delivery of anesthesia for more than 50,000 surgical cases annually. Cases are predominantly GI, but also include other specialties such as orthopedic, spine, pain, dental, ENT and ophthalmology.
Growth Stocks: Another Acquisition Lets It Expand In Premium Corporate And Executive Health
Previously, in June 2022, the company also bought Calgary-based private healthcare clinic Inliv for $1.6 million. The acquisition gives Well Health its first physical presence in the province of Alberta.
Inliv had annual revenue of $7.3 million, with more than 85% coming from recurring membership fees. The firm has 50-plus people on staff, including 23 health care providers, and more than 1,000 clients.
Inliv’s services included corporate and executive health. This supports Well Health’s goal of further growing its presence in the premium corporate and executive health segment. Since 1978, Inliv has provided medical care to professionals and families, including executives, and other professionals in the Greater Calgary region.
In addition to providing primary care services, Inliv provides corporations and other organizations with executive health, employee wellness, aesthetics, and periodic medical exams as well as other integrative services such as physiotherapy and counselling services.
Growth by acquisition adds risk, but Well Health aims to cut that risk by buying complementary businesses, like Inliv, that can be easily integrated with its current operations.
The Canadian health-care sector is also a government-backed, recession-resilient industry. What’s more, the rapid expansion of telehealth services spurred by COVID-19 is likely to continue.
Recommendation in Power Growth Investor: Well Health Technologies Corp. is a buy.