Premier Health Reports a 66% Increase in Revenue for First 9 Months of FY2020

MONTREAL, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Premier Health of America Inc. (formerly known as Physinorth Acquisition Corporation Inc.) (TSXV: PHA) (the “Corporation”), a leading Canadian Healthtech company, announces it has filed its interim consolidated financial statements and interim MD&A for its fiscal third quarter ended June 30, 2020.

Summary

• The 66% increase in revenue is attributable to long-term contract renewal, recent changes in Quebec legislation, and increased number of hours billed due to COVID-19.
• The increase in the average gross margin to 25.7% from 20.3% resulted from a more efficient geographical allocation of resources.
• The EBITDA increased by 230% to $1,706,567.
• The Corporation announced an important acquisition subsequently to the June 30, 2020 results.

“Our financial results exceeded our expectations again this quarter as the Company is harvesting the result of its previous efforts of renewing long term contracts and repositioning its offering.” Said Martin Legault. “These results confirm the strategic direction Premier Health is pursuing as well as the maturity of our business model.”

Third Quarter Results Highlights

(1) Before non-recurring items and non-cash expenses

Business Highlights

• Limitation of healthcare personnel movement between facilities to minimize cross contamination risks resulted in a stabilization of demand for personnel and a decrease in the weekly volatility of personnel placement.
• During the nine-month period the Corporation provided 229,180 hours of services (87,856 for the three-month period) compared to 134,740 for the same period in 2019 (50,176 for the three-month period)
• The impact of earlier renewal of governmental contracts and legislative changes in the province of Quebec continued to influence the results positively.
• The increase in activity level due to COVID-19 is expected to continue in the short term.

Financing Highlights

• The Corporation’s credit facility was increased to $ 2,000,000 for general corporate purposes.

Announcement of Acquisition of Code Bleu

Premier Health announced on August 4 that it has entered into the SPA with the shareholders of Code Bleu, to acquire all of the issued and outstanding shares of Code Bleu for a total consideration of C$17 million. Code Bleu is a prominent Quebec agency employing nurses, caregivers, dental staff and other health-related personnel. Code Bleu’s mission is to offer its various public and private partners with quality, efficient and safe services provided by its highly qualified staff. Meeting the highest quality standards, rigor in hiring process, and personalized follow-ups have allowed Code Bleu to become one of the best industry actors in the province of Quebec. For the year ending December 31, 2019, Code Bleu generated revenues of approximately C$29.3M, an EBITDA of C$3.9M and a net income of C$2.8M, had total assets of C$5.6M, short-term liabilities of C$3.3M and no long-term liabilities. The transaction is subject to customary conditions precedent, including without limitation, TSXV approval and completion of satisfactory due diligence, and is expected to close on or about October 1st, 2020.

About Premier Health

Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of staffing and outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary PSweb platform to lead the healthcare services sector digital transformation to provide patients with faster, cheaper and more accessible care services.

Non-GAAP Measures

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), is calculated as the net profit (loss), before non-recurring items such as acquisition and transaction costs, non-cash expenses (including loss from disposal of assets, impairments, amortization and depreciation and stock-based compensation), interest expense, net of interest income and income tax expense.

For Further Information Please Contact:

Mr. Jean-Robert Pronovost
Vice-President, Corporate Development
Premier Health of America Inc.
(formerly known as Physinorth Acquisition Corporation Inc.)
jrpronovost@premierhealth.ca / 514-581-1473

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Corporation’s common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Corporation assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. These factors and others are more fully discussed in the filings of the Corporation with Canadian securities regulatory authorities available at www.sedar.com.