Convalo Health International (CXV-V) April 29, '15 a company focused on rolling up the highly-fragmented addiction recovery sector of companies in the US, today provided highlights of its financial results for the quarter ending February 28, 2015.
Full results are available on sedar.com.
Quarter Highlights:
Convalo acquired a small referral-based company and moved into a large, fully accredited treatment center, under the brand name BLVD Treatment Centers, in June 2014. The center became fully operational November 1, 2014.
Quarterly Revenue
Revenue for the first full fiscal quarter of operations (ending February 28th, 2015) was $1,201,225.
March 2015 revenue exceeded $500,000 or over $6,000,000 annualized current run rate revenue.
Organic Growth Rate
Annualized organic growth is tracking in excess of 793% in the Hollywood Center.
Post acquisition, BLVD Treatment Centers' first full month of revenue, June 2014, was $63,000, or $756,000 annualized. By comparison, March 2015 revenues were over $6,000,000 on an annualized basis.
Quarterly Profitability
Operating income (before stock-based compensation and facility start-up costs) for the first full fiscal quarter (ending February 28th, 2015) was $242,679. (1)
Net earnings before potential tax liabilities for the quarter (including stock-based compensation and new facility start-up costs) were $153,250.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), excluding new facility start-up costs, for the quarter was $245,677(2).
Balance Sheet
Cash as of April 27, 2015 was $25,689,175; Cash at the end of the quarter was $5,402,596.
Accounts Receivable at the end of the quarter of $903,355 and Accounts Payable and accrued liabilities associated with the listing process at the end of the quarter of $741,907.
Mergers & Acquisitions
Convalo has executed 17 non-disclosure agreements (NDA) since listing.
Convalo has issued 4 term sheets since listing.
"This is our first full quarter of operations after our first acquisition, and even with a full compliment of corporate overhead, we generated a nice profit," said Michael Dalsin, Chairman of Convalo. "Our organic revenue growth has certainly exceeded my expectations from when we made our first acquisition last year. The first center we acquired had a clinical focus. We made the center more appealing to our young clientele, generating stronger referrals and fueling rapid growth. I am looking forward to results from the second acquisition we made last month and am optimistic that we can enhance its offerings and continue to achieve high organic growth."
"We have over $25 million in cash and a deep pipeline of acquisition targets," continued Mr. Dalsin. "Given our balance sheet and organic growth rate, we are going to be very aggressive in making acquisitions."
Convalo will host an interactive Q&A earnings call at 4p.m. EST on Thursday, April 30, 2015 to provide in depth data and analysis about the quarterly results.
Participants from Convalo will be Michael Dalsin (Chairman) and David Ward (CFO).
The details of the call will be released shortly.
Financial professionals are invited to call in and ask questions. To pre-register as a qualified caller, please e-mail dwilson@convalohealth.com by 5 p.m. EST Wednesday, April 29th, 2015.
About Convalo
Convalo is an acquisition-oriented company focused on rolling up the US outpatient addiction rehabilitation market led by seasoned management with experience in both US healthcare acquisitions and healthcare service asset management. In 2014, Convalo made its first acquisition of a small, local addiction rehabilitation center in Los Angeles. That business has operated under the brand name BLVD Centers ( www.blvdcenters.com) in a luxury Hollywood, California location. BLVD offers patients access to a wide range of services, including addictive and co-occurring disorders, helpful to the recovery process. In conjunction with the 12-Step approach, BLVD also offers supplemental insurance-reimbursed services catering to a variety of communities: gender specific, creatively-oriented, meditation/mindfulness, trauma and LGBT affirmative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
-(1) Operating Income does not include Stock Based Compensation and new facility start up costs.
-(2)Adjusted EBITDA is defined as EBITDA plus Stock Based Compensation, excluding new facility start up cost and transaction costs.
Convalo Health International, Corp.
Dennis Wilson
Corporate Affairs
investorinfo@convalohealth.com
www.convalohealth.com |
