Jack Nathan Medical Corp (Jack Nathan Health (TSX-V:JNH, OTCQB:JNHMF)) revealed a 143% revenue increase in its fiscal 3Q results as its clinic operations ramped up.
The healthcare company reported total 3Q revenue of C$2.4 million, a jump from the nearly $1 million it reported in the comparable three-month period ended October 31 last year.
In a statement accompanying the results, Jack Nathan attributed the revenue increase to “high clinic operations revenue from acquisitions and organic growth in Canada, including Rehab and MedSpa services, and new medical clinics and services in Mexico.”
READ: Jack Nathan Medical appoints industry veteran Marcy Herriman as its new chief operating officer
The firm also said it experienced lower license revenues for the same periods, as expected and in line with its strategy, as it acquires corporate-owned medical facilities from its licensed locations.
“The third quarter marks a positive inflection point for Jack Nathan Health as we made significant progress expanding our footprint, scaling our operations, strengthening our digital platform, and enhancing our foundation for growth,” CEO Glenn Copeland told investors.
The firm expanded its corporate-owned and operated footprint in Canada, with new Medical Clinics, MedSpas and Rehab services in British Columbia and Ontario.
“In Mexico, investment and expansion has been rapid, and the potential for profitable expansion has been strengthened,” Copeland said. “We also continued to restructure and realign our organization as we scale operations. In both Canada and Mexico, we remain focused on improving access to high quality healthcare, while enhancing the patient-practitioner experience.”
During the quarter ended October 31, 2021, Jack Nathan reported a net loss of $2.1 million compared to $0.1 million in fiscal 3Q, attributable to increased expenses associated with growth and the investments to scale operations, which includes $2.1 million in non-cash charges.
CFO David Berman told shareholders that the coronavirus pandemic had curtailed the firm’s year-to-date results, though to a lesser extent in the third quarter as restrictions and lockdowns were lifted.
“Now, with the November acquisitions in British Columbia, we expect to add an additional $5 million of annualized revenue that is accretive to our bottom line, with growing contributions from other clinics throughout our footprint,” Berman said.
“With recent leadership changes and the additional impact of acquisitions, this was a transitional quarter for our company, and we are well positioned for continued growth and improved bottom-line performance heading into 2022.”
The group ended the quarter with C$2.7 million in cash.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas