Full-Year Revenues $13.1 million; Fourth Quarter Revenues rose to $3.2 million; Full Year 2021 Revenue Guidance $40 million; Acquired Six Primary Care Practices in 2020 and Three More Acquisitions in 2021
TORONTO, April 20, 2021– Skylight Health Group Inc (TSXV:SHG; OTCQX: SHGFF) (“Skylight Health” or the “Company”), a multi-state primary care management group in the United States, today reported financial results and provided a corporate update for the fourth quarter and year ended December 31, 2020. Additional information concerning the company, including its audited financial statements and the Management Discussion and Analysis, for the year ended Dec. 31, 2020, can be found at SEDAR and on the company’s website.
Fourth Quarter and Full-Year 2020 Financial Highlights
- Revenue was $3.2 million for the quarter, compared to $3.1 million for Q4 2019. This increase was due to the addition of the acquired clinics during Q4 which offset a slight reduction seen at our pre-existing sites. For the full year, Revenue was $13.1 million, compared to $13.4 million for 2019. This reduction was due to the impact of COVID as well as a change in regulations in Q3 in New Jersey, which affected visit frequency at the Company’s clinics in that state.
- Gross profit percentage remained consistent year over year with Gross Profit coming in at $9.0 million for the year, compared to $9.3 million for 2019.
- Net Loss improved in 2020 to $9.4 million, compared to a net loss of $11 million in 2019 achieved through significant optimization of the operating structure and efficiencies driven through improved processes and technology.
- Adjusted EBITDA for the year ended December 31, 2020 was a loss of $1.8 million compared to a loss of $2.7 million in 2019 largely driven by professional fees and marketing attributed to acquisitions, financings and creating an expanded shareholder base.
- The Company generated positive cash-flow from operations of approximately $156,982 for the year ended December 31, 2020 compared to a loss of $1.1 million for the year ended December 31, 2019.
- A significantly strengthened balance sheet on December 31, 2020 is reflected in a cash position of $20 million and working capital of $18.6 million compared to a cash balance of $0.1 million and a working capital deficiency of $6.7 million on December 31, 2019. In October 2020, the Company converted its promissory note held by Merida Capital extinguishing $4.0 million from its long-term debt.
- The Company is providing revenue guidance for the full year of $40 million in 2021.
“2020 was a transformative year for Skylight Health. We completed a full rebrand focused on converting our clinics to value-based care, while building a robust pipeline of near-term targets,” said Prad Sekar, Co-Founder and Chief Executive Officer. “We added 6 clinics, strengthened our leadership team, transformed our balance sheet, and made great strides toward transforming our company into a leading multi-state primary care business. We expect to see tremendous growth looking forward as we continue our profitable transition to value-based care across our platform.”
| Three Months Ended December 31 | 12 Months Ended December 31 | |||||
| 2020 | 2020 | 2019 | ||||
| Revenue | 3,198,600 | 13,141,227 | 13,423,744 | |||
| Cost of sales | 1,029,328 | 4,111,765 | 4,100,672 | |||
| Gross profit | 2,169,272 | 9,029,462 | 9,323,075 | |||
| Total operating expenses | 7,997,231 | 16,083,272 | 18,607,626 | |||
| Operating profit (loss) | (5,827,959 | ) | (7,053,810 | ) | (9,284,511 | ) |
| Adjusted EBITDA* | (2,146,869 | ) | (2,029,452 | ) | (2,768,258 | ) |
| *Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortization, adjusted by significant nonrecurring, nonoperational 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. | ||||||
Key Subsequent Events
- In January 2021, the Company’s shares commenced trading on the TSX-V and continue to trade under the symbol “SHG”.
- On January 5, 2021, the Company completed its acquisition of APEX in Denver, Colorado and acquired 100% of the assets of APEX for $2.36 million.
- On January 14, 2021, the Company appointed Grace Mellis, as an independent director to the Company’s Board of Directors.
- On February 4, 2021, the Company announced the closing of a Florida based clinic – River City Medical Associates (“RCMA”).
- On February 17, 2021, the Company appointed Andrew Elinesky as Chief Financial Officer.
- On March 16, 2021, the Company appointed Mr. Patrick McNamee as Chairman of the Board. Mr. McNamee succeeds Norton Singhavon who will remain involved as an active member of the Board.
- On April 5, 2021, the Company announced the acquisition of a primary care clinical group, Rocky Mountain in Colorado. Rocky Mountain expands Skylight Health to over 7 new locations in the Denver and Boulder area.
- On April 15, 2021, the Company promoted Paul Kulas to Chief Operating Officer.
Conference Call
Management will host an investor conference call at 9:00 a.m. EDT on Tuesday, April 20, 2021, to discuss Skylight Health’s full year 2020 financial results, provide a corporate update, and conclude with Q&A from participants. To participate in the call, please dial (800) 319-4610 (domestic) or (416) 915-3239 (Toronto) or (604) 638-5340 (international).
About Skylight Health Group
Skylight Health Group (TSXV:SHG; OTCQX:SHGFF) is a US multi-state primary care management group. 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. The Company’s operations servicing 16 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.