RemindersSome of our investors have short memories so here's a couple of reminders. There has been lots of recent emphasis on Jason Donville but much more significant to me is Ryan Irvine and the crew at Keystone Financial as these guys really know their stuff.
First paste below is Keystone's recent summary of WELL followed by the management's upcoming earnings projections. If these numbers are accurate (which could be enhanced even more by recent NRs), then we could be off to the races. As an example, Keystone recommended CPH back in December. They recently released their earnings and the sp is up 22% in the past week. GLTA
- WELL has shown great revenue growth over the past few years, with revenue of just $32.8 million in 2019, now up to over $700 million expected for FY2023 and $900 million expected in FY2024.
- The company’s astonishing growth has been primarily driven by acquisitions funded through share issuances and debt. Overall it is good to see that the company is producing cash flow which will help the company pay down its debt (which is on the high side currently) and hopefully reduce its reliance WELL’s reliance on issuing shares.
- Given the strong acquisition & organic growth the Valuation of 17x adjusted earnings, and around 11x P/CFO and EV/EBITDA, the business looks reasonable given its recent organic growth (30% Canada & U.S. Growth in Patient visits) – but it would be great to speak with management to get a better gauge on the trendline organic growth rate to help determine how reasonable those multiples really are.
- All-in-all, the company still has work to further progress into accounting earnings, reduce its debt load, and reduce its cadence of issuing shares. But if the company can begin to achieve consistent accounting and adjusted profitability and use internally generated cash flow to bolster growth, there could potentially be an “inflection point” in the business. But that is yet to be determined.
Jan. 25, 2024 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL, OTCQX: WHTCF) ("WELL"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce positive preliminary quarterly financial results for Q4-2023 ending December 31, 2023 with projected record revenue and positive adjusted and non-adjusted EPS or Earnings per Share.1 WELL's strong financial performance was driven by another record quarter in patient visits which resulted in sequential QoQ growth of 18% and YoY growth of 30%.2
Based on preliminary financial information and subject to WELL's year end audit which is expected to be completed in March 2024.