Medical Facilities (DR) investor relations material

Executive summary

• Facility service revenue increased by 7.8% year-over-year to $63.1 million, driven by a favorable case mix weighted toward higher-value orthopedic and spine procedures.

• Income from operations rose 9.4% to $9.6 million, and EBITDA increased 7.1% to $12.5 million compared to Q2 last year.

• Surgical case volume declined 2.3%, but excluding low-margin dental cases, volumes were flat.

• Approximately $17.1 million was returned to shareholders through the repurchase of 1,337,500 common shares during the quarter.

Financial highlights

• Revenue for the quarter was $63.1 million, up 7.8% year-over-year.

• Net income from continuing operations was $5.7 million, down 17.5% year-over-year, mainly due to non-cash finance costs and income tax variations.

• EBITDA was $12.5 million, up 7.1% from the prior year.

• Consolidated cash balance at quarter end was $64.1 million, with a corporate cash balance of $58.0 million.

• Distributable cash flow for Q2 was C$4.3 million, with a payout ratio of 33.9%.

Outlook and guidance

• Active recruitment campaigns are underway to attract additional pain physicians and orthopedic surgeons to boost volumes.

• Management remains focused on maximizing shareholder value and continues to evaluate opportunities for further value creation.

• Strong liquidity position supports ongoing hospital operations and future capital returns.