#Canada #mental health #Toronto #Greenbrook TMS #Neuronetics

Greenbrook TMS Reports Third Quarter 2024 Operational Results

Greenbrook TMS Inc. (OTCQB: GBNHF), a key player in the mental health treatment sector, disclosed its operational and financial outcomes for the third quarter of 2024, marking a substantial development in its ongoing journey towards achieving sustained growth and operational efficiency.

Q3 2024 Financial Highlights

In the third quarter ended September 30, 2024, Greenbrook experienced an impressive increase of 9% in quarterly service revenue, totaling $18.9 million, which signifies a $1.5 million rise compared to the same quarter in 2023. The year-to-date revenue also painted a positive picture, rising to $56.0 million for the nine months ended September 30, reflecting a surge of $1.6 million from the previous year despite operational challenges arising from the closure of several mental health service centers due to restructuring initiatives undertaken last year.

A noteworthy aspect of the financial report was the introduction of additional revenue streams. The company recorded $200,000 in other revenue during Q3 2024, derived from milestones achieved in a collaboration agreement focused on researching innovative treatment delivery models for investigational psilocybin therapy.

Despite the revenue growth, the company's regional operating loss escalated dramatically by 242% compared to Q3 2023, reaching $0.5 million as costs associated with center operations increased. However, the comprehensive loss for the period decreased by 16% to $11.0 million, suggesting improved financial discipline either through cost management or an uptick in revenue generation.

Restructuring and Future Outlook

Looking ahead, Greenbrook continues to streamline its operations aiming for long-term profitability. The company has embarked on a Supplemental Restructuring Plan, which includes the closure of 23 treatment centers by the end of 2024, allowing them to concentrate resources on their remaining facilities, thereby enhancing operational efficiency.

Bill Leonard, President and CEO of Greenbrook, expressed optimism regarding the ongoing Neuronetics Transaction. Approval from shareholders was secured in early November, paving the way for a merger expected to close soon. This merger aims to forge a vertically-integrated organization better positioned to address the rising demand for mental health treatment across the country.

The executives at Greenbrook believe that, with the completion of the acquisition, the combined entity will further enhance its service offerings, including expanded access to FDA-cleared therapies such as TMS and Spravato®, targeting adults experiencing treatment-resistant depression. The goal is to continue innovating solutions in the field of mental health management while maintaining significant reach across various states.

Key Metrics and Future Initiatives

As of Q3 2024, Greenbrook operated 118 active Treatment Centers and has focused on diversifying treatment options. They have successfully expanded their Spravato® services across 82 locations while also enhancing medication management and talk therapy offerings, further signaling a commitment to comprehensive patient care.

The company acknowledges that the mental health crisis remains a pressing issue in the U.S., with a growing unmet need for effective treatment. This context supports their strategic shifts and operational focus, positioning them as a leader in the space aimed at delivering quality mental health care at scale.

In summary, Greenbrook TMS Inc.'s Q3 2024 report reflects not only solid financial performance amid challenges but also a forward-looking approach rooted in strategic restructures and substantial optimizations, setting the stage for a promising future in mental health services.