Skylight Health Reports Q3 Results Achieving Consecutive Quarter and YTD Positive Adjusted EBITDA

• Gross revenues of $3.3 million with a robust gross margin of 71%. Revenue does not include contribution from recently announced acquisitions.
  
  
• Adjusted EBITDA earnings of $331,122, representing its second consecutive quarter of positive Adjusted EBITDA.
  
  
• Year-to-date Adjusted EBITDA profitability of $108,894 compared to an Adjusted EBITDA loss of $1.87 million in YTD Q3 2019.
  
  
• Subsequent to the quarter end, extinguished all long-term debt and strengthened its balance sheet with approximately $10 million of cash.

TORONTO, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (formerly CB2 Insights) (CSE:SHG; OTCQB: CBIIF) (“ Skylight Health ” or the “ Company ”), one of the largest multi-specialty healthcare systems in the United States, today reported its earnings for fiscal Q3 2020 for the period ended September 30, 2020. Additional information regarding the Company, including its interim financial statements and Management’s Discussion and Analysis (“MD&A”), can be found at www.sedar.com and on the Company’s website (www.skylighthealthgroup.com). All amounts are expressed in Canadian dollars unless otherwise noted.

Following an industry-wide initial reduction of visits in March 2020 due to the COVID-19 pandemic, Skylight Health has continued to see growth in patient visits and registrations, while ongoing improvements to its business model and operating structure have led to reduced costs for delivery of services. The implementation of a telemedicine offering has created opportunities to further reduce the cost of healthcare delivery with lower overheads, higher margins, and improved availability for patients.

The Company expects that virtual care including telemedicine will remain a key delivery model within its growth plan. The Company continues its expansion through the US both organically and by way of acquisition with two new states added in October and November 2020 and a third acquisition announced to close in early 2021. Collectively, the 3 acquisitions are expected to contribute $5 million in annualized revenue and $1 million in annualized EBITDA to the current run rate. As of November 27 th , 2020, the Company has CA$10 million in cash on its balance sheet and is focused on its 3-pronged growth strategy including the expansion of insurable services to its current patient roster, subscription for the un/underinsured and accretive acquisitions.

Prad Sekar, Chief Executive Officer of Skylight Health Group stated “ We are excited to see the continued efforts of our team and commitment to patient care result in a second consecutive A djusted EBITDA positive quarter and , for the first time in our company’s history, a full nine months of positive Adjusted EBITDA. We have continued to execute against our business plan , strengthen our management team and create programs that will ultimately delight our patients and optimize their health outcomes . Further we are beyond thrilled to be operating under our name Skylight Health Group and the opportunities it represents for us and our stakeholders in the years to come. ”

Mr. Sekar continued, “During our last earnings call in August 2020 we stated that it was time for us to go on the offensive. I am proud to say that we are doing just that. We look forward to executing against our business plan and bringing real value to all our stakeholders.”

Summary of Q 3 2020 Key Milestones and Consolidated Results

• Total revenue for Q3 2020 was $3.3 million, compared to $4.2 million in Q3 2019 due to a change in revenue reporting for same services rendered as a result of change in regulations. Annual revenue per patient remained the same. Revenue in the quarter does not include contribution from recently announced acquisitions;
• Gross profit was $2.3 million in Q3 2020 compared to $2.6 million from Q3 2019. The reduction was due to the normalization of revenue identified above. However, the Company did see an overall growth in the gross profit margin to 71% in Q3 2020 compared to 70% in Q3 2019 due to improvements to capacity utilization and technology deployment;
• Net loss of $215,726 in Q3 2020 compared to $919,114 in Q3 2019 as with continued efforts in workflow optimization and technology deployment. Year-to-date positive cashflow from operations was $1.5 million;
• Adjusted EBITDA was $331,122 in Q3 2020 versus an adjusted EBITDA loss of $368,588 in Q3 2019 due to continued improvements to the operating model and top line growth;
• In April 2020, the Company launched Skylight Health Group (“SHG”) as part of its clinical operations in the US to focus on integrated healthcare and providing low cost insurable services to patients;
• Currently, the Company has approximately CAD $10.5 million in cash;
• In July 2020, the Company launched the first in a series of monthly medical reports derived from real-world clinical treatments on a variety of healthcare conditions and modalities across the United States, Canada and United Kingdom;
• In August 2020, the Company announced the addition of Insurance Industry Veteran Pam Galassini to its Leadership Team as Senior Vice President, Business Development. Galassini brings more than 20 years of pharmacy benefit management, payor insights and pharmaceutical manufacturer strategies and solutions experience to the Company.
• In September 2020, the Company completed an oversubscribed non-brokered private placement for gross proceeds of $5,138,046 with the issuance of 34,253,641 subscription receipt units at an issue price of $0.15 per unit. Upon issuance, each subscription receipt unit automatically converted into one common share and one-half common share purchase warrant. Each whole warrant is exercisable to purchase one common share of the Company at a price of $0.20 per share for a period of two (2) years from the date of issuance.
  

Q 3 2020 Financial Highlights

* Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortization, adjusted by significant nonrecurring, non-operational expenses and partially offset by the cash impact of certain accounting treatments during the period. Please see the Company’s Management Discussion & Analysis for a detailed reconciliation to operating loss.

The Company will hold its quarterly investor conference call on December 1, 2020 at 9:00 am ET.

Conference call details:

A replay of the earnings call will be available on the company’s website 24 hours after the call takes place.

Submitting Questions:

Those interested in submitting questions for the earnings call can do so by emailing investors@s kylighthealthgroup .com prior to the start of the call. Skylight Health will attempt to answer all questions submitted; however, some questions may not be answered during the call due to time constraints.

The Company looks forward to providing additional discussion on its Q3 2020 Filings, as well as providing an update on the business and preliminary expectations for Q4 2020. Further, the Company will update shareholders on its future outlook and plans for growth in the coming quarters.

About Skylight Health Group

Skylight Health Group (CSE:SHG OTCQB:CBIIF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. healthcare services. With a patient roster of over 120,000 patients, the Company’s operations spread across 14 states and continues to expand in services and locations both organically and by way of strategic acquisitions.

The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.

For more information please visit www.s kylighthealthgroup .com or contact:

Investor Relations
Jonathan L. Robinson CFA
Oak Hill Financial
jrobinson@oakhillfinancial.ca
416-669-1001

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Skylight Health ’s filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements regarding the Company’s unaudited financial results and projected growth.

Although Skylight Health as attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are subject to inconsistent legislation and regulation; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and recreational-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Skylight Health disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Skylight Health does not assume any liability for disclosure relating to any other company mentioned herein.

Non-GAAP Financial Measures

This Press Release contains references to Adjusted EBITDA and Gross Margin. These financial measures are not measures that have any standardized meaning prescribed by IFRS and are therefore referred to as non-GAAP measures. The non-GAAP measures used by the corporation may not be comparable to similar measures used by other companies. Adjusted EBITDA is defined as “income (loss) before interest expenses, taxes, expenses related to listing on the Canadian Securities Exchange, depreciation, foreign exchange and financial expenses.

The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company’s definition of these metrics may differ from those of other businesses. Skylight Health will, at times, use certain non-GAAP financial measures to provide readers with additional information in order to assist investors in understanding our financial and operating performance. Skylight Health believes that these non-GAAP measures provide readers with useful information about the Company’s operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

Adjusted EBITDA excludes the effect of share-based compensation expenses and related payroll taxes as well as removes substantial one-time costs for unusual business activities. Additional discussion on this can be found in the Skylight Health Management Discussion and Analysis filed on SEDAR.

Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with IFRS. See the Company’s audited Financial Statements for a reconciliation of the non-GAAP measures.

No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.