Akumin Inc. (NASDAQ: AKU) (TSX: AKU) ("Akumin" or the "Corporation") announced today its financial results for the quarter ended September 30, 2020 ("Q3 Fiscal 2020").
Commenting on the Q3 Fiscal 2020 financial results, Riadh Zine, President and Chief Executive Officer of the Corporation, said, "During the quarter ending September 30, 2020 we generated revenue of $67.1 million and Adjusted EBITDA of $17.8 million. On a sequential quarter basis, RVU volume increased approximately 36% versus that in Q2 Fiscal 2020, which was severely impacted by the lockdowns implemented due to the COVID-19 pandemic. This strong recovery is validation of Akumin's platform as an essential healthcare service provider.
"Akumin's volume in Q3 Fiscal 2020 was approximately 1,490,000 RVUs, compared to approximately 1,435,000 RVUs in Q3 Fiscal 2019, an increase of 4%. On an organic volume basis, RVUs decreased by 8% compared to the same prior period," Mr. Zine continued. The Corporation reports the volume of procedures performed in its diagnostic imaging centers based on relative-value units, or RVUs, instead of the number of procedures. RVUs are a standardized measure of value used in the U.S. Medicare reimbursement formula for physician services which provides weighting to distinguish the complexity of different procedures. In addition, we finished the quarter with $27.4 million cash-on-hand."
"As announced on November 2, 2020, Akumin closed its offering of $400 million in 7% senior secured notes due 2025 and a new revolving credit facility of $55 million. The proceeds of the notes were used to refinance all of Akumin's credit facilities with excess cash proceeds for general corporate purposes. Our access to the U.S. debt capital markets is another major milestone in the Company's execution of its U.S. capital markets strategy. These notes provide us with a flexible balance sheet, a platform for funding future growth, and a broadening of our investor base. We sincerely thank our Joint Book-Running Managers, Barclays, Citigroup, Morgan Stanley and BBVA for their support in this financing, as well as Co-Managers Raymond James, Craig-Hallum Capital Group and William Blair. We also take this opportunity to express our appreciation for all the lenders and institutions that have supported the capital structure of the Company to date."
Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of owned and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, Illinois, Kansas and Georgia. By combining our clinical expertise with the latest advances in technology and information systems, our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.
Source: Akumin Inc.