#Canada #Vancouver #Financial Performance #WELL Health #Canadian Clinics

WELL Health Technologies Reports Strong Financial Performance

WELL Health Technologies Corp. (TSX: WELL, OTCQX: WHTCF), a prominent digital healthcare company, has released an update regarding the financial performance of its acquired clinics in Canada. The company recently disclosed significant metrics relevant to its acquisition strategy for the years 2022, 2023, and 2024, demonstrating robust growth and an impressive return on invested capital (ROIC).

Current Financial Metrics

The latest figures indicate substantial positive trends:

• - ROIC Metrics: The ROIC for 2022, 2023, and 2024 stands at 41%, 24%, and 28%, respectively.
• - Adjusted EBITDA Improvement: The margins improved across the cohorts, with effective multiples recorded at 2.0x, 2.3x, and 2.6x for the same periods.

Overall, WELL Health is currently managing a clinic prospect pipeline that includes 165 clinics, collectively yielding over $440 million in annual revenues. The pipeline reflects approximately double-digit adjusted EBITDA margins, a testament to the company’s effective acquisition strategies.

As for the near term, there are 19 signed Letters of Intent (LOIs) anticipated to generate about $50 million in revenue at similar ebitda margins.

Navigating Trade Tariffs

In light of escalating tariffs between the U.S. and Canada, WELL Health reassured stakeholders that it has no exposure to U.S. tariffs concerning Canadian goods. The company’s revenue model is structured such that 60% comes from U.S.-based entities, offering it a buffer against potential economic disruptions.

Eva Fong, CFO of WELL, commented on the company’s resilience: “Our business is built on a strong, resilient foundation, and we are well-positioned to withstand any macroeconomic challenges that may arise.” WELL’s focus on the healthcare sector has positioned it advantageously to navigate any market volatility that other sectors may face, given that healthcare demands remain fairly stable.

Expansion and Growth Prospects

WELL Health's growth trajectory has been reinforced by its robust acquisition methodology, making 2024 its most active year for clinic acquisitions yet. The company’s strategy has been to enhance efficiency by leveraging technology to improve clinical operations. This tech-driven transformation strategy has allowed WELL to return more time and resources to healthcare providers, enabling a greater focus on patient care and enhancing health outcomes.

With aspirations to reach $4 billion in revenues from Canadian sources, Hamed Shahbazi, Founder and CEO, stated that the positive financial metrics validate their clinic transformation initiatives and confirm their capacity for accelerated growth in the coming years.

The following table provides a summary of performance data from WELL's Canadian clinic acquisition program:


Overall, WELL Health Technologies is demonstrating strong financial performance amidst a complex landscape. With expansive growth strategies and innovative technological solutions in its operations, the company remains a crucial player in the Canadian healthcare sector poised for success.