Jack Nathan Medical Corp (Jack Nathan Health) (CVE:JNH) (OTCQB:JNHMF) is adding to its portfolio of medical clinics with a new location in a British Columbia-based Walmart Supercentre.
The 1,394-square foot location in Campbell River will become the Toronto-based company’s sixth corporate-owned clinic.
Jack Nathan said it expects that high-margin service offerings at the clinic will lead to a “significant increase” in revenue potential.
READ: Jack Nathan Medical moves to Tier 1 status on TSX Venture Exchange
“This announcement is another reflection of our ability to execute on our growth strategy and expand our presence into all regions of Canada,” Mike Marchelletta, interim CEO of Jack Nathan Health, said in a statement.
“Our goal is to continue converting all of our remaining licensed clinics in this country into corporate-owned medical centres for which we will be able to capture topline revenue and provide Canadians with access to standardized, high quality healthcare services.”
Fiscal 2021 revenue rises
The news came as Jack Nathan revealed its year-end results for fiscal 2021 showing an increase in revenue for the 12-month period to end January 31, 2021 of C$3.8 million, compared to C$3.6 million during fiscal 2020.
In a statement, Jack Nathan attributed the revenue growth to higher annual license fees from a partial year of new locations and an overall increase from revenues in Mexico as part of its ongoing expansion.
For fiscal 4Q, revenue dipped slightly to $716,000 compared to $833,248 in the same year-ago period, driven by a decrease in license fees from turnover in clinics and a decrease in retention fees. Jack Nathan told shareholders that revenue was accelerated and received in the second quarter of fiscal 2021, offset by an increase in clinic operations due to the opening of three new clinics in Mexico and increased sales from COVID testing in Mexico.
The company added that its management “expects this decrease, primarily affected by a timing difference in retention fees, will normalize in future quarters.”
DEEP DIVE: Jack Nathan Health expanding operations across Canada and Mexico
Jack Nathan also reported an adjusted EBITDA loss of $642,000 in the 4Q compared to a loss of $122,000 in the comparable year-ago period.
“Despite the challenges of the COVID-19 pandemic, we made significant progress in the fiscal year ended January 31, 2021, as we completed our go-public transaction to list on the TSX Ventre Exchange and began to implement our vision of establishing Jack Nathan Health as a leading healthcare provider in Canada, Mexico and potentially, the rest of the world,” interim CEO Marchelletta said in a statement accompanying the results.
“We have taken several steps during the last fiscal year to accelerate our growth plans such as enhancing our infrastructure, filling key leadership positions, expanding our geographic footprint, making several strategic and accretive acquisitions, and solidifying key strategic relationships, particularly with Walmart.”
Marchelletta told investors that the firm’s expansion strategy is beginning to take shape as it continues to grow its revenue potential and bottom-line performance.
“Recent acquisitions and the opening of new medical clinics provide us with a forward-looking revenue run rate that is on track to significantly exceed our historical revenues. We are focused on playing a key role in serving the massive backlog in patient care in Canada and Mexico, and therefore, we will continue to scale and invest in our digital and physical footprints in these countries.”
For fiscal 2021, the company reported a net loss of $1.3 million compared to a profit of $153,000 in fiscal 2020, citing a “significant amount of new expenses in the last two quarters of fiscal 2021” such as stock compensation expenses, consulting fees, bad debt expenses, salaries and wages, and development costs, partially offset by decreases in professional fees, office and general expenses, license fees and increase in annual revenues.
The company ended the period with C$7.7 million in cash.
Contact Angela at angela@proactiveinvestors.com
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