WELL Health Provides Corporate Update Demonstrating Acceleration of Business, New Innovative Testing Programs and a Strong M&A Pipeline
- WELL is partnering with a leading national lab company, via its Tia Health subsidiary, and providing services to support patients who are interested in obtaining COVID-19 (SARS-CoV-2) testing. WELL is also working on offering its own direct-to-consumer offering for the sale and support of COVID-19 Antibody testing.
- Circle Medical, WELL’s majority owned US subsidiary, has reported that its current month to date results in November reflect better than a 40% increase in revenues as compared to the previous month. If maintained, this would put Circle Medical’s yearly revenue run-rate at more than $10M CAD and growing quickly. Circle Medical also expects to launch a national COVID-19 mail-in test in the next few weeks through its patient app.
- Thus far in fiscal Q4, WELL continues to see similar strength in its business as compared to its Q3 results announced last week where it demonstrated strong organic Quarter-over-Quarter (QoQ) growth of 57% in its in-person consultation volumes and a substantial increase in run-rate revenues.
- WELL has announced and/or completed 4 acquisition transactions in the last several weeks adding approximately $38M in incremental annual revenues, based on past performance, which puts WELL’s annual revenue run-rate at better than $88M. WELL maintains a strong and growing pipeline of new acquisition opportunities including another 10 signed LOIs that represent additional revenue and EBITDA growth opportunities. The Company has more than $100M in funds presently in treasury with no debt.
Vancouver, BC and Toronto, ON - November 19, 2020 - WELL Health Technologies Corp. (TSX: WELL) (“WELL” or the “Company”), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to announce that via its Tia Health subsidiary, it has partnered with a leading Canadian lab company to provide eligible patients with prescriptions for COVID-19 (SARS-CoV-2) Antibody testing.
“Now that a Health Canada-approved test for COVID-19 Antibodies is available, we are helping a leading national lab company uncover hidden past cases of COVID-19 by providing eligible patients with a doctor’s prescription for obtaining a highly accurate blood test that can detect the presence of COVID-19 antibodies,” said Dr. Michael Frankel, Chief Medical Officer of WELL. “When these antibodies are found, it means that there has been a historical COVID-19 infection. We believe such tests will be critical in addition to the administration of a capable vaccine to provide Canadians with the comfort needed to address the COVID-19 pandemic for at least several quarters.”
The Company is also working to offer its own direct-to-consumer Antibody testing program where it expects to make Antibody testing products and services available for purchase in cooperation with its partner(s). WELL expects to provide an update on this offering within the next few days.
WELL is a diversified company with six distinct business units including: 1- Medical Clinics, 2- EMR or electronic medical records, 3- Digital health Applications, 4- CyberSecurity, 5- Allied Health and 6- Medical Billing and Back-office. WELL has significant breadth and depth in its business and is well positioned to continue its revenue acceleration and profit optimization strategies for the foreseeable future.
A good example of WELL’s strong progress is its US-based Circle Medical subsidiary. Circle Medical has reported that its current month to date results in November reflect better than a 40% increase in revenues as compared to the previous month. If maintained, this would put Circle Medical’s yearly revenue run-rate at more than $10M CAD and growing quickly. This strong growth has been delivered by a combination of Circle Medical’s omni-channel telehealth and in-clinic experiences.
Circle Medical also expects to launch a national COVID-19 mail-in test in the next few weeks through its mobile patient app. This innovative national program would allow users of the Circle Medical app to independently order a COVID-19 testing kit. Once the test kit is received, self-administered and sent back, Circle Medical delivers the results of the test directly via the same patient app.
Thus far in fiscal Q4, WELL continues to see similar strength in its business as compared to the results announced last week where it reported record quarterly results as part of its fiscal Q3 report to shareholders. The results clearly demonstrated an acceleration of its sequential QoQ organic growth due to: (i) strong growth performance led by WELL’s brick and mortar clinics increasing in-person visits organically by 57% on a Quarter over Quarter basis while generally maintaining virtual care appointment volumes; and (ii) strong performance from WELL’s other diversified business units representing 50% YoY growth in Gross Profit and 75% YoY growth in Revenues.
Hamed Shahbazi, the Company’s founder and CEO commented, “What I love about our results is that they clearly demonstrate the new normal for WELL and the fact that between virtual and in-person experiences, the company now has two powerful ways to deliver patient services which delivered YoY growth over pre-pandemic periods. Also, given the overwhelming feedback we’ve received from both doctors and patients, we expect both modes of consultations to remain relevant permanently. There is no question that WELL’s clinical business is now truly omni-channel.”
During its quarter end conference call, the company provided guidance that it would continue to maintain an active capital allocation program where it would consolidate newly acquired assets across each of its six previously mentioned business units. The Company disclosed that it believed that each of its business units have significant potential to grow to similar metrics as the Company currently enjoys as a whole.
“We currently have 10 signed LOIs, where our internal and external due diligence teams are working hard with target companies to perform confirmatory diligence activities and complete acquisition agreements,” said Hamed Shahbazi, “The Company is fully funded for all such LOIs and is in excellent financial shape with more than $100M in funds presently in treasury with no debt.”
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 20 primary healthcare clinics, is Canada's third largest digital Electronic Medical Records (EMR) supplier serving over 2,000 medical clinics, operates a leading national telehealth service and is a provider of digital health and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and was recognized as a TSX Venture 50 Company three years in a row in 2018, 2019 and 2020. To access the Company's telehealth service, visit: virtualclinics.ca or tiahealth.com, and for corporate information, visit: www.well.company.
Notice Regarding Forward Looking Statements
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “would”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, “working on” or “continue”, or the negative thereof or similar variations. There are numerous risks and uncertainties that could cause actual results and WELL’s plans and objectives to differ materially from those expressed in the forward-looking information, including the risks outlined in WELL’s publicly filed documents available on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Pardeep S. Sangha
VP Corporate Strategy and Investor Relations