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Source: Physinorth acquisition corp.

Premier Health Reports 44% Increase in Revenue for First Half of FY2020

MONTRÉAL, May 20, 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 second quarter ended March 31, 2020.

Summary

  • 44% increase in revenue attributed to long-term contract renewal, recent change in Quebec legislation, and increased number of hours billed due to COVID-19.
  • Increase in average gross margin to 24.7% attributed to more efficient geographical allocation of resources and the accounting of the full operational impact of the Excel Santé acquisition.

“The COVID-19 pandemic which has hit Canada hard had a positive immediate impact on the company’s operations and results as we worked together with various institutional stakeholders to maximize the resources provided to the healthcare system.” Said Martin Legault. “It is natural to feel concerned about a return to normalcy, but our company is in an exceptional position to execute its growth objectives.”

Second Quarter Results Highlights

 March 31, 2020
(3 months)
March 31, 2019
(3 months)
March 31, 2020
(6 months)
March 31, 2019
(6 months)
Revenues$4,929,790$3,170,140$8,293,948$5,771,091
From last period+55.5% +43.7% 
Gross margin$1,285,980$628,781$2,045,585$1,152,886
From last period+104.5% +77.4% 
EBITDA (1)$423,585$153,204$663,031$315,748
From last period+176.5% +110.0% 
(1) Before non-recurring items    

Business Highlights

  • In the course of the first two quarters of 2020 the Corporation renewed the majority of its governmental contracts resulting in a positive impact on long term revenue stability.
  • Second quarter results were positively impacted by a legislative change in the province of Quebec that had a permanent impact on healthcare personnel salary levels.
  • The increased activity level due to COVID-19 also had a positive impact on the Corporation's revenues.
  • Premier Health’s wholly owned subsidiary Excel Santé Inc. was selected by the Quebec Côte-Nord CISSS ("CISSS") for the issuance of a standing offer to provide temporary nursing services on their territory.
  • The Corporation increased the capacity of its 24/7 dispatch centre to ensure efficient response times.

Financing Highlights

  • In February 2020, the Corporation finalized a private placement with the issuance of 5,834,435 units at $ 0.225 per unit, each comprised of 1 common share of the Corporation and 1/2 warrant for gross proceeds of $ 1,312,748.
  • The Corporation’s credit facility was increased to $ 2,000,000 during the quarter for future working capital needs.
  • The Corporation incurred non-recurring expenses of $1,102,515 comprised of shares exchanged on reverse takeover ($725,490) as well as legal and broker expenses related to its private placement.

Qualifying Transaction and Private Placement

On February 25, 2020 the Corporation closed its previously announced transaction (the “Transaction”) with 6150977 Canada Inc. and its subsidiary Excel Health Inc., 8961760 Canada Inc. and 10544485 Canada Inc., a group of privately held Canadian companies, doing business as Groupe Premier Soin (collectively, the “GPS Entities”). The Transaction consisted of a reverse take-over of Physinorth by the shareholders of the GPS Entities by virtue of the Corporation acquiring 100% of the equity interest of the GPS Entities in exchange for common shares of the Corporation (the “Shares”). In connection with the Transaction, an aggregate of 28,000,000 Shares were issued to the shareholders of the GPS Entities at a price of $0.25 per Share for total deemed value of $7,000,000. The Transaction constituted the Corporation’s “Qualifying Transaction”, as such term is defined in policy 2.4 of the TSX Venture Exchange (the “Exchange”). In the context of the Transaction, the Corporation changed its name from “Physinorth Acquisition Corporation Inc.” to “Premier Health of America Inc.”, ceased to be a Capital Pool Company and recommenced trading on the Exchange as a Tier 2 industrial issuer under the symbol “PHA”, on March 3, 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 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.