Medical Facilities Stock price
Is Medical Facilities a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = C$249.39m | Revenue (TTM) = C$310.73m
Market Cap = C$249.39m | Estimated Revenue = C$390.68m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = C$284.37m | Revenue (TTM) = C$310.73m
Enterprise Value = C$284.37m | Forward Revenue = C$390.68m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Medical Facilities Stock Analysis
Analyst Opinions
9 Analysts have issued a Medical Facilities forecast:
Analyst Opinions
9 Analysts have issued a Medical Facilities forecast:
Medical Facilities Events
Past Events
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AUG
6
Q2 2026 Earnings Call
about one month ago
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MAY
7
Shareholder/Analyst Call - Medical Facilities Corporation
4 months ago
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MAY
7
Q1 2026 Earnings Call
4 months ago
|
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MAR
12
Q4 2025 Earnings Call
6 months ago
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NOV
6
Q3 2025 Earnings Call
11 months ago
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StocksGuide Free
Medical Facilities — Q2 2026 Earnings Call
1. Management Discussion
Thank you. Good morning, everyone. Welcome to the Medical Facilities Corporation's 2026 Second Quarter Earnings Call. After management's remarks, this call will include a question-and-answer session when qualified equity analysts may ask questions. Before turning the call over, be reminded that today's call may contain forward-looking statements within the meaning of the safe harbor provisions of Canadian provincial securities laws. Forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements. Forward-looking statements and actual results may differ materially from those expressed or implied in such statements. For additional information, please consult the MD&A for this quarter, the Risk Factors section of the Annual Information Form, and Medical Facilities' other filings with Canadian securities regulators.
Medical Facilities does not undertake to update any forward-looking statements, except as required by law. Such statements may speak only as of the date made. I would now like to turn the meeting over to Mr. Jason Redman, CEO of Medical Facilities. Please go ahead, Mr. Redman.
Good morning, everyone, and thank you for joining us. On the call with me is our Chief Financial Officer, David Watson. Earlier this morning, we reported our second quarter results. Our news release, financial statements, and MD&A are available on our website and have been filed on SEDAR+. Before we begin, I will highlight that the income statement variances Dave and I will be discussing are for continuing operations, and the amounts exclude non-controllable, non-cash, corporate-level charges related to share-based compensation plans. As usual, all dollar amounts are in U.S. dollars, unless otherwise specified.
Starting with our operating performance for the quarter, facility service revenue grew by 7.8%, driven by a favorable case mix that was weighted more towards higher-value orthopedic and spine procedures. The higher revenue translated to a 9.4% increase in income from operations and a 7.1% increase in EBITDA compared to Q2 of last year.
On the capital allocation front, we demonstrated a strong and sustained commitment to returning capital to shareholders. During the quarter, we repurchased approximately 1.34 million common shares for $17.1 million under a Normal Course Issuer Bid, bringing total purchases in the first half of the year to approximately 1.66 million shares for $21 million. Subsequent to quarter end, we are pleased to report we have now fully utilized the purchase limit of approximately 1.81 million shares under the current NCIB. Commencing with the change in corporate strategy back in Q3 of 2022, the corporation has cumulatively returned approximately CAD 218 million to shareholders through a combination of NCIBs, substantial issuer bids, and dividends.
Lastly, we ended the quarter with a consolidated cash balance of $64.1 million, including $58 million at the corporate level. Our strong liquidity position provides flexibility for us to continue supporting our hospitals while evaluating opportunities to return capital to shareholders in the most efficient manner. With that, I will now turn the call over to David to review our financial results for the quarter.
David?
Thanks, Jason, and good morning, everyone. Our revenue for the quarter totaled $63.1 million, which was up 7.8% year over year. Most of the increase was attributable to the combined impact of payer and case mix. The case mix included more higher-value orthopedic and spine procedures. We also benefited to a smaller degree from payer rate increases. Our surgical case volume was 2.3% lower in the quarter. However, if you exclude low-margin dental cases, surgical volumes were essentially flat.
Although outpatient cases edged up 0.9% in the quarter, inpatient cases fell 12.5%, and observation cases were down 9.1%. Pain management cases were down 19.9%, with the decline again stemming from Arkansas Surgical Hospital, as we've noted on prior calls. Both hospitals have active recruitment campaigns to attract additional pain physicians to add volume. I'm pleased to mention that Arkansas Surgical Hospital has a new pain physician, as well as a new orthopedic surgeon joining at the start of September.
Looking at our expenses for the quarter, overall operating expenses increased $3.8 million, or 7.6%. Over half of the increase came from higher consolidated drugs and supplies, which were up 12.5%, and largely a reflection of our case mix. In addition, consolidated salaries and benefits increased 6.4% due to annual merit increases, elevated market-driven compensation for anesthesia and nurse practitioners, and higher health plan benefits utilization. G&A expenses were also up 3.8%, with the increase primarily due to higher costs for contracted anesthesia services, repairs and maintenance, billing fees, and marketing costs.
In terms of our profitability for the quarter, income from operations increased 9.4% to $9.6 million, and EBITDA was up 7.1% to $12.5 million. Turning to our balance sheet, consolidated net working capital was $65.2 million at the end of June, including $64.1 million in cash and cash equivalents. This compares to $54 million in net working capital and $43.4 million in cash and cash equivalents back at the end of December.
The change in consolidated net working capital was driven largely by the sale of Oklahoma Spine Hospital in Q1, which increased cash but was partly offset by a reduction in current assets and liabilities for the removal of Oklahoma Spine's held-for-sale balances. Finally, we continue to operate with no corporate-level bank debt, having fully paid off our corporate credit facility back in 2024. This concludes our prepared remarks. We would now like to open up the call for questions.
Operator?
Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Thank you. We don't have any questions in the queue. I would now like to turn the call over to Mr. Jason Redman.
Thank you, Operator, and thank you to everyone joining us this morning. We appreciate your continued support and look forward to keeping you updated on our progress. Have a great day.
Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for your participation. You may now disconnect.
Medical Facilities — Shareholder/Analyst Call - Medical Facilities Corporation
1. Management Discussion
Hello, and welcome to the Annual Meeting of Shareholders of Medical Facilities Corporation. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer, and use of the same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and Medical Facilities Corporation that you first obtained all required consents for the disclosure, recording, transfer, and use of such personal information from all appropriate persons before your disclosure. It is now my pleasure to turn today's meeting over to Adina Storch, Chair of the Board of Directors of Medical Facilities Corporation. The floor is yours.
Good morning. It is now 11:00 a.m. Eastern Time, and I ask that the Annual General Meeting of Shareholders come to order. Ladies and gentlemen, my name is Adina Storch. As Chair, I would like to welcome you to the 2026 Annual General Meeting of Shareholders of Medical Facilities Corporation. As this meeting is held virtually via live webcast, please note the following rules for the orderly conduct of the meeting. Questions in respect of a motion or a procedural matter can be submitted by any registered shareholder or duly appointed proxy holder using the Q&A feature on the virtual interface as long as they have logged into the meeting using their control number or invite code. Any other questions will be addressed during the question period at the end of the meeting.
For the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item after the presentation of all business items. When you are asked to vote, you may do so using the vote feature on the virtual interface. You will only have a certain amount of time to do so once the polls are open. I will act as Chair of the meeting. I will ask David Watson to act as Secretary of the meeting and Bernadette Villarica of Computershare Investor Services, Inc. to act as scrutineer.
In view of the need to attend to a number of formal matters, certain shareholders or their proxies have volunteered to move and second resolutions where required. While this procedure will facilitate the handling of the formal matters, any shareholder or proxy holder may ask questions. I would also like to remind you that only registered shareholders or duly appointed proxy holders that have logged into the meeting using their control number or invite code are entitled to vote or submit questions in this meeting in the designated field on the virtual interface.
The last Annual General Meeting of Shareholders was held on May 8, 2025. Any shareholder who wishes to review the minutes of that meeting may contact us by using the Q&A feature on the virtual interface. I am also tabling a copy of the 2025 Audited Financial Statements. These are publicly available, as are the proxy materials, and are posted on our website and SEDAR+. Please note that upon completion of the meeting, Jason Redman, the company's President and Chief Executive Officer; and David Watson, the company's Chief Financial Officer, will endeavor to address questions you may have that are submitted using the Q&A feature on the virtual interface.
Accordingly, during the formal portion of this meeting, I ask you to limit your submitted questions to the specific matters being considered. Shareholders have been provided with notice and proxy materials for this meeting in accordance with applicable laws, and these are publicly available and are posted on our website and SEDAR+. I have been advised by the scrutineer that prior to the meeting, proxies were received from the holders of 9,950,736 shares or approximately 56.56% of all shares entitled to be voted. As a result, we have a quorum for this meeting, and the meeting is properly constituted for the transaction of business.
We will now proceed with the formal part of our meeting. Before we consider the business of the meeting, I would like to outline the voting procedures to be used at today's meeting. We will conduct each vote by way of the vote feature on the virtual interface as well as those submitted by proxy. If you have voted your shares by proxy prior to the start of the meeting, your vote has been received by the scrutineer, and there is no need to vote those shares during the meeting unless you wish to revoke or change your vote. Polls on the individual business items will be open for voting once the motions are put forth for the business items to be considered at the meeting. Registered shareholders who have not submitted a proxy and wish to vote their shares or who wish to change their vote may do so by clicking on the voting buttons on the screen. Duly appointed and registered proxy holders may also vote using the same method. I will now present the 2 resolutions that will be considered at this meeting.
The first item of business for which this meeting has been called is the election of 5 Directors to hold office until the next Annual Meeting of Shareholders of the company or until their successors are duly elected or appointed. The management information circular states that there are 5 candidates proposed by management. The Secretary will now read their names.
The names of the nominees are Adina Storch, Peter Brimm, Michael Gisser, Jeremy Klaperman, Jason Redman.
Since no further nominations have been received in the required time period, I declare the nominations closed. Five persons have been nominated as Directors, and there are 5 Directors to be elected. May I please have a motion for the election of Directors?
Madam Chair, I hereby move that each of the 5 persons whose names have been read to this meeting by the Secretary for election as Directors of the company be elected to serve until the Annual Meeting of Shareholders to be held in 2027 or until his or her successor is duly elected or appointed or he or she otherwise ceases to hold office.
Madam Chair, I second the motion.
The next item of business for which this meeting has been called is to consider and, if thought appropriate, to approve a resolution reappointing Raymond Chabot Grant Thornton LLP as auditors of the company and authorize the Board of Directors to fix the remuneration of the auditors. In order to be approved, the resolution must be passed by a majority of the votes cast thereon. Can I please have a motion for the reappointment of the auditors?
Madam Chair, I hereby move that Raymond Chabot Grant Thornton LLP be reappointed as auditors of the company at a remuneration to be fixed by the Board of Directors of the company.
Madam Chair, I second the motion.
Thank you. Are there any questions regarding the 2 motions to be voted upon? I now invite Trevor Heisler of MBC Capital Markets Advisors to read any questions submitted.
Good morning, Madam Chair. Please wait a moment while I gather any questions submitted through the Q&A feature. And I see no questions submitted through the Q&A feature. Please go ahead.
The polls are now open to vote on the election of Directors and the reappointment of auditors. At this point, all registered shareholders and duly appointed proxy holders who have properly logged in with their control number or invite code and wish to vote will be able to see on the screen all motions being brought forth at this meeting. Please register your votes by accessing the voting page and selecting the for or withheld buttons next to the name of each proposed Director and next to the resolution with respect to the reappointment of Raymond Chabot Grant Thornton LLP as the company's auditors. We will provide registered shareholders and duly appointed proxy holders approximately 1 more minute to complete the electronic ballots. Once the electronic balloting closes, the voting page will disappear and your votes will automatically be submitted.
Now that everyone has had the opportunity to vote, I declare the polls for each item to be voted upon to be closed. I have been advised by the scrutineer that all of the ballots and proxies deposited for the meeting have been counted, and the 2 motions have passed. In respect of the election of directors, the Board of Directors of Medical Facilities Corporation has adopted what is commonly referred to as a majority voting policy. Under that policy, a Director is required to tender his or her resignation if he or she receives more withhold votes than votes cast for his or her election. The scrutineers' report on the vote regarding the election of Directors shows that each of the nominees has received a greater number of votes for his or her election than would be withheld from his or her election, and none of the nominees would be required to tender their resignation under Medical Facilities Corporation's majority voting policy.
Therefore, I declare that each of the 5 nominees whose names has been read by the Secretary has been elected a Director of the company to hold office until the close of the next Annual Meeting of Shareholders or until his or her successor is duly elected or he or she otherwise ceases to hold office. Congratulations.
In respect of the appointment of auditors, the scrutineer's report on the vote regarding the appointment of the auditor shows that the resolution has passed. Therefore, I declare that Raymond Chabot Grant Thornton LLP has been reappointed as the auditors of the company and that the Board of Directors is authorized to fix the remuneration of the auditors. As we have not received any request for further business to come before the meeting, I declare the formal portion of the meeting terminated, and we will now proceed to the general questions portion of the meeting.
I ask that any registered shareholders and duly appointed proxy holders who logged on using their control number or invite code and who would like to ask a question to use the Q&A feature on the virtual interface to do so. We will answer as many questions as time permits. Please limit your questions to topics relating to today's subject matter and keep your questions short and to the point. We will now give attendees a moment to type in their questions. For each question we answer, we will summarize the question and read out loud the name of the person who asked such question and if applicable, the entity such person represents. We would like to remind you that questions which were already answered or that are redundant or repetitive will not be answered. We now invite Trevor Heisler of MBC Capital Markets Advisors to read any questions submitted.
Please wait a moment while I gather any questions submitted through the Q&A feature. And I see no questions submitted through the Q&A feature.
In conclusion, I would like to thank all of you for attending.
This concludes the meeting. You may now disconnect.
Medical Facilities — Q1 2026 Earnings Call
1. Management Discussion
Hello. Good morning, everyone. Welcome to Medical Facilities Corporation's 2026 [ First ] Quarter Earnings Call. [Operator Instructions] Before turning the call over to management, listeners are reminded that today's call may contain forward-looking statements within the meaning of the safe harbor provisions of Canadian provincial securities law. Forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements and may differ in actual material from those expressed or implied in such statements. For additional information, please consult the MD&A for this quarter, the Risk Factors section of the annual information form and Medical Facilities' other filings with Canadian securities regulators. Medical Facilities does not undertake to update any forward-looking statements, except as required by law. Such statements speak only as of the date made. And now I would like to turn the meeting over to Mr. Jason Redman, President and CEO of Medical Facilities. Please go ahead, sir.
Good morning, everyone, and thank you for joining us. On the call with me is our Chief Financial Officer, David Watson. Earlier this morning, we reported our first quarter results. Our news release, financial statements and MD&A are available on our website and have been filed on SEDAR+.
Before we begin, I'd like to point out that the income statement variances David and I will be discussing this morning relate only to continuing operations, and therefore, exclude Oklahoma Spine Hospital and the Surgery Center of Newport Coast. The variances also exclude noncontrollable noncash corporate level charges related to share-based compensation plans. As usual, all dollar amounts are in U.S. dollars, unless otherwise specified.
We had a positive and eventful start to the year. In the first quarter, we delivered double-digit percentage growth in facility service revenue, income from operations and EBITDA. Our top line increased 10.8% to $67.1 million, thanks to a favorable payer mix as well as higher volumes of orthopedic and spine procedures.
Our income from operations was up 17.6% to $12.8 million, and our EBITDA grew 13.8% to $15.7 million.
We also continued our multiyear track record of returning capital to shareholders. During the quarter, we repurchased 318,400 common shares through a normal course issuer bid, returning $3.8 million to shareholders. In addition, as previously disclosed, the most significant development this quarter occurred in January when we completed the sale of our 64% ownership interest in Oklahoma Spine Hospital for gross cash proceeds of approximately $46 million, subject to customary adjustments. This transaction was fully aligned with our strategic direction, has allowed us to maximize value for our shareholders and focus on our remaining core assets.
Our financial position at quarter end underscores the strength of our business. We closed the period with a very strong consolidated cash balance of $86.3 million, including $78.1 million at the corporate level. This gives us significant flexibility to continue investing in our hospitals and to further return capital to shareholders.
We're currently evaluating alternatives to returning capital, and we look forward to updating you once any decisions are made.
Speaking of our hospitals, during the quarter, Arkansas Surgical Hospital earned the 2025 Human Experience Guardian of Excellence Award for the sixth consecutive year, placing them in the top 5% of hospitals nationwide for exceptional patient experience. The hospital was also voted Best Doctor-owned Hospital by AY Magazine readers. That recognition will be featuring the Arkansas focused lifestyle publication's Best of the Best edition in June.
Additionally, last quarter, I mentioned that Sioux Falls Specialty Hospital had received the Blue Distinction Center Plus designation for knee and hip replacement by Wellmark Blue Cross and Blue Shield. Since then, they have also received the Blue Distinction Center Plus recognition for spine surgery. We're very proud of both hospitals and of our strong start to the year. We remain focused on executing our strategy, driving operational performance and delivering long-term value. I will now turn the call over to David to review our financial results in more detail. David?
Thanks, Jason, and good morning, everyone. As Jason mentioned earlier, we had facility service revenue of $67.1 million for the quarter, which was an increase of 10.8% from Q1 of last year. The growth came from the combined impact of case and payer mix, which included more orthopedic and spine procedures, although total surgical cases were down 0.6% in the quarter, this was due to a decline in low-margin dental procedures. Excluding dental, our surgical cases were up 1.3% in the quarter.
Outpatient cases were up 2.6%, but inpatient cases decreased by 2.7% and observation cases were down 8.9%. Pain management cases were down 21.6%, with the decrease again stemming from Arkansas Surgical Hospital as discussed in prior calls. The pain doctor that started at ASH last August continues to ramp up, and both hospitals have active recruitment campaigns to attract additional pain doctors.
Our operating expenses were up approximately $4.7 million or 9.3%. More than half of the increase came from consolidated drugs and supplies, which climbed 13.5%, mostly due to case mix and higher surgical volumes outside of dental. Also contributing to the increase were consolidated salaries and benefits, which rose 9.1%, reflecting annual merit increases and elevated market-driven compensation for anesthesia nurse practitioners.
Additionally, our G&A expenses were up 5.8%, primarily due to higher costs for contracted anesthesia services, physician guarantees and repairs and maintenance.
As Jason mentioned earlier, our profitability improved year-over-year, with income from operations increasing 17.6% to $12.8 million and EBITDA rising 13.8% to $15.7 million.
Looking at our balance sheet. At the end of March, we had consolidated net working capital of $67.1 million, with cash and cash equivalents of $86.3 million. This compares to net working capital of $54 million and cash and cash equivalents of $43.4 million at the end of December. The change in consolidated net working capital was driven largely by the sale of Oklahoma Spine Hospital, which removed Oklahoma Spine-related current assets and liabilities and boosted cash and cash equivalents from the sale proceeds.
Finally, we remain free of corporate level bank debt since paying off our corporate credit facility back in 2024.
This concludes our prepared remarks. We'd now like to open up the call for questions. Operator?
[Operator Instructions] There are no questions at this time. I will now turn the call back over to Jason for the closing remarks.
Thank you, operator, and thank you to everyone joining us this morning. We value your ongoing support and look forward to continuing to share updates on our progress. Have a great day.
Ladies and gentlemen, this concludes today's conference call. Thank you, everyone, for joining. You may now disconnect.
Medical Facilities — Q4 2025 Earnings Call
1. Management Discussion
Good morning, everyone. Welcome to Medical Facilities Corporation's 2025 Fourth Quarter and Year-End Results Earnings Call. [Operator Instructions]
Before turning the call over to management, listeners are reminded that today's call may contain forward-looking statements within the meaning of the safe harbor provisions of Canadian provincial securities laws. Forward-looking statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.
For additional information, please consult the MD&A for this quarter, the Risk Factors section of the annual information form and Medical Facilities' other filings with Canadian securities regulators. Medical Facilities does not undertake to update any forward-looking statements except as required by law. Such statements speak only as of the date made.
I would now like to turn the meeting over to Mr. Jason Redman, President and CEO of Medical Facilities. Please go ahead, Mr. Redman.
Good morning, everyone, and thank you for joining us. On the call with me is our Chief Financial Officer, David Watson. Earlier this morning, we reported our Q4 and year-end results. Our news release, financial statements and MD&A are available on our website and have been filed on SEDAR+.
Before we begin, I'd like to point out that the income statement variances David and I will be discussing this morning include the results from Oklahoma Spine Hospital and the Surgery Center of Newport Coast, but exclude government stimulus income, goodwill impairment and noncontrollable noncash corporate level charges related to share-based compensation plans. As usual, all dollar amounts are in U.S. dollars, unless otherwise specified.
We closed out 2025 with a strong fourth quarter, resulting in growth in facility service revenue, income from operations and adjusted EBITDA, both for the quarter and for the full year. For the year, our top line grew 3.2% to $342.2 million, including growth of 6.9% in the fourth quarter. Income from operations was up 6.1% to $58 million, including a 20.1% increase in Q4, while adjusted EBITDA increased 3.1% to $73.7 million with 12% growth in the quarter.
In addition to strong case volumes and favorable case and payer mixes, these results reflect disciplined execution and continued focus on operational efficiency. 2025 was also a year of meaningful shareholder returns. Following the sale of Black Hills Surgical Hospital in November of 2024, we completed a substantial issuer bid in March of 2025. That, combined with our ongoing normal course issuer bid, saw us return $61.8 million to shareholders through the repurchase of more than 5.1 million shares, reducing our share count by approximately 22% in the year.
At the end of the year, we completed the sale of the surgery center of Newport Coast, receiving $1.5 million in cash proceeds for our 51% ownership interest. In parallel, negotiations were well underway for the sale of Oklahoma Spine Hospital, which subsequently closed on January 30, 2026. We received $46 million in cash proceeds for our 64% ownership interest.
At year-end, we held a corporate cash balance of $34.2 million, which included $1.5 million in proceeds from the sale of the surgery center of Newport Coast. The subsequent sale of Oklahoma Spine Hospital added a further $46 million to our corporate cash balance.
In order to return capital to shareholders in the most tax-efficient manner, we continue to explore the repurchase of shares under our normal course issuer bid, making a substantial issuer bid and/or making a special distribution to shareholders.
Before turning the call over to David, I want to give a special shout-out to the team at Sioux Falls Specialty Hospital as the hospital was recently named a Blue Distinction Centers+ for knee and hip replacement by Wellmark Blue Cross and Blue Shield, recognizing its superior outcomes, strong patient safety performance and cost-efficient care.
With that, I'll turn the call over to David to review our financial results in more detail. David?
Thanks, Jason, and good morning, everyone. Looking at the quarter, facility service revenue came in at $97.3 million, representing 6.9% growth, driven by the combined impact of case and payer mix, a 2.6% increase in surgical case volumes. Outpatient cases were up 6.6%, with inpatient cases decreased by 10.8%, and observation cases were down 3.8%.
Pain management cases were down 13.5% in the quarter, mainly due to decreases at Arkansas Surgical Hospital, as discussed previously. Offsetting this, a new pain doctor started at ASH back in August 2025, and an active recruitment campaign is underway to attract additional pain doctors. Additionally, a new spine surgeon joined referral group's practice in September.
Moving on to operating expenses, which were up $2.8 million or 3.8% for the quarter. Consolidated salaries and benefits rose 2.7%, driven by annual merit increases, market wage pressures and higher benefit costs associated with increased health plan utilization. These impacts were partially offset by a reduction in salaried physicians and clinical staff.
Drugs and supplies were up 7.1%, mainly reflecting a case mix with more orthopedic cases along with higher surgical volume. Meanwhile, G&A expenses were up 3.5% due to higher costs for contracted services, physician guarantees and repairs and maintenance. Profitability strengthened in the quarter with income from operations increasing 20.1% to $20.9 million and adjusted EBITDA rising 12% to $24.4 million.
Turning to our balance sheet at the end of December and including Oklahoma Spine Hospital for comparison purposes, we had consolidated net working capital of $38.1 million, with cash and cash equivalents of about $43.4 million. This compares to net working capital of $76.4 million and cash and cash equivalents of $108.5 million at the end of 2024. The decrease in consolidated net working capital was primarily driven by the completion of the $42.3 million substantial issuer bid last March and subsequent share repurchases totaling $19.5 million under our NCIB. Finally, we remain free of corporate-level bank debt having fully repaid our corporate credit facility near the end of 2024.
This concludes our prepared remarks. We would now like to open up the call for questions. Operator?
[Operator Instructions] Your first question comes from Doug Miehm with RBC Capital Markets.
2. Question Answer
So just a couple of housekeeping items. Can we talk a little bit about Oklahoma Spine? And with respect to that process, were you approached by SSM? Or did you run a broader process?
Doug, it's Jason. Yes. So in terms of the process, I think it was -- there was not a broader process that was involved. It was a collaborative discussion amongst ourselves, SSM and our physician partners.
Okay. Perfect. And then, as you finalize the details of that sale, can you talk about the projected tax liability? It looked like it was around 10% for the smaller Newport situation. I'm just wondering if you're thinking about a similar situation here.
Yes. Doug, it's David. We haven't disclosed the net proceeds after tax yet because we're still in the process of finalizing it. Obviously, we're working with our tax advisers to optimize the taxes on the transaction. So we'll be disclosing that with first quarter results.
Okay. And then finally, just on site neutrality legislation or other Medicare policy changes, do you see that having any impact on the business or payer mix? And also, maybe you could comment on Sanford's new orthopedic hospital in terms of that similar dynamic around competition? And I'll leave it there.
Thanks, Doug. So we haven't seen an impact yet in terms of the site neutrality implications on our facilities. It's something that we are watching very, very closely though. And obviously, we'll try to -- we'll accommodate and adjust our strategies as we need to. Obviously, our focus is try to keep as much inpatient service as we can, but it's something that we continue to evaluate with our physician partners.
Your second question in terms of Sanford, we haven't seen an impact on the Sanford's operations on our Sioux Falls results. It's always been a very competitive market, and we continue to perform well. And I think that's a credit to the very capable team that we have in place there.
Yes. It seems to be the case.
[Operator Instructions] We have reached the end of the question-and-answer session. Let me turn the call over to Mr. Jason Redman, President and CEO of Medical Facilities for closing remarks. Please go ahead, sir.
Thank you, operator, and thanks to everyone that joined us this morning. We appreciate your continued support and look forward to keeping you updated on our progress. Have a great day.
Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Medical Facilities — Q3 2025 Earnings Call
1. Management Discussion
Good morning, everyone. Welcome to Medical Facilities Corporation's 2025 Third Quarter Earnings Call.
[Operator Instructions]
Before turning the call over to management, listeners are reminded that today's call may contain forward-looking statements within the meaning of the safe harbor provisions of Canadian provincial securities laws. Forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.
For additional information, please consult the MD&A for this quarter, the risk factor section of the annual information form, and Medical Facilities' other filings with Canadian securities regulators. Medical Facilities does not undertake to update any forward-looking statements except as required by law. Such statements speak only as of the date made.
I would now like to turn the meeting over to Mr. Jason Redman, President and CEO of Medical Facilities. Please go ahead, Mr. Redman.
Good morning, everyone, and thank you for joining us today. On the call with me is our Chief Financial Officer, David Watson. This morning, we reported our third-quarter results. Our news release, financial statements, and MD&A are available on our website and have been filed on SEDAR+. Please note that the income statement variances discussed by Dave and I this morning are for continuing operations and exclude government stimulus amounts from last year. As usual, all dollar amounts are in U.S. dollars unless otherwise specified. We had a strong quarter with growth in income from operations and EBITDA driven by increased facility service revenue at each of our highly rated surgical facilities.
A big contributor in the quarter was Sioux Falls Specialty Hospital, where, as expected, surgical case volumes had a solid rebound following the planned relocation of a key referral group's clinic earlier in the year. While the clinic move had a temporary negative impact on volumes in the second quarter, the transition is now behind them. We were pleased to see that the clinic was back to business as usual by the third quarter.
On a consolidated basis, facility service revenue was up 7.5% in the quarter, benefiting from the favorable impacts of case and payer mix, higher payer rates, and increased surgical case volumes. Income from operations was up 28.4%, and EBITDA increased 17.7% in the quarter.
On the topic of our hospitals, I wanted to give a quick shout-out to the folks at Sioux Falls and Arkansas, both of which received five-star ratings in September for nurse communications based on CMS's Hospital Consumer Assessment of Healthcare Providers and Systems data.
Finally, on the capital allocation front, we returned $5.6 million to shareholders in the quarter through the repurchase of 514,200 common shares under our normal course issuer bid. For the first nine months of the year, share repurchases under both our normal course and substantial issuer bids totaled about 4.7 million shares, representing $56.8 million being returned to shareholders and a 20% reduction in our outstanding share count. Even after these significant returns, our corporate cash position at quarter-end remained strong at $34.5 million.
With that, I'll turn the call over to David to review our financial results in more detail. David?
Thank you, Jason. Good morning, everyone. Starting with the top line, we had facility service revenue of $82.6 million for the quarter, which is an increase of 7.5%. As Jason mentioned, the increase was mainly due to the combined impact of case and payer mix. In addition, payer rate increases resulted in higher reimbursements per surgical case, and our surgical case volumes were up 1.1% for the quarter. Outpatient cases were up 3.3%, but inpatient cases decreased by 5.3%, and observation cases were down 3.1%. Pain management cases were down 15.4% in the quarter, mainly due to decreases at Arkansas Surgical Hospital and Sioux Falls Specialty Hospital. Pain cases were down at ASH following the departure of a pain doctor in Q4 of last year.
As we said in our call last quarter, a new pain doctor started at ASH this August, and a new spine surgeon joined a referral group's practice in September. Pain cases at Sioux Falls were impacted by the departure of a pain physician in the second quarter. The hospital is actively recruiting for both a pain doctor and a spine surgeon.
Our operating expenses for the quarter were about $3.1 million higher than prior year, as increases to consolidated salaries and benefits and to drugs and supplies more than offset our lower G&A expenses. Consolidated salaries and benefits increased 6.2%, primarily reflecting annual merit adjustments, market wage pressures, and higher benefit costs related to increased health plan utilization.
This was partially offset by a reduction in salaried physicians and clinical staff, including one physician who transitioned from being an employee to joining a referring practice and becoming an owner in the hospital at the end of last year. Drugs and supplies rose by 10.5%, mainly reflecting a shift in case mix toward higher acuity procedures. This increase was partially offset by improved implant cost savings achieved at certain facilities. Higher surgical case volumes also contributed to the increase, while higher vendor rebates provided a modest offset.
Meanwhile, G&A expenses were down 4.9%, largely due to lower corporate-level costs for share-based compensation plans, in addition to savings realized in professional fees and contracted services. These reductions were partly offset by higher repairs and maintenance expenses, along with increased recruiting costs and physician guarantees.
Looking at our profitability for the quarter, and again, excluding the government stimulus income last year, income from operations increased 28.4% to $12.2 million, and EBITDA increased 17.7% to $16.1 million.
Turning to our balance sheet, at the end of September, we had consolidated net working capital of $43 million, with cash and cash equivalents of $46.8 million. This compares to net working capital of $76.4 million and cash and cash equivalents of $108.5 million at the end of 2024. The decrease in consolidated net working capital was primarily driven by the completion of the substantial issuer bid in March, which reduced cash and cash equivalents by $43.7 million. Other significant drivers were the $14.4 million tax payment in April related to the gain on sale of Black Hills Surgical Hospital, and $14.8 million used to repurchase shares under our normal course issuer bid.
We remained free of corporate-level bank debt, having fully repaid our corporate credit facility near the end of last year. As we announced last quarter, on August 6, we executed a new credit agreement with Canadian Imperial Bank of Commerce. The agreement is for a $40 million revolving credit facility with an option to increase the facility by up to $25 million, contingent upon meeting specified conditions. This concludes our prepared remarks.
We would now like to open the call up for questions. Operator?
[Operator Instructions]
Okay. It seems we have no questions at this time. [Operator Instructions] I believe we have no questions at this time.
Okay. I will now turn the call back to Mr. Redman then for closing remarks. Please go ahead.
Thanks to everyone joining us this morning. We appreciate your continued support and look forward to keeping you updated on our progress. Have a great day.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Financial data from Medical Facilities
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 311 311 |
20%
20%
100%
|
|
| - Direct Costs | 88 88 |
36%
36%
28%
|
|
| Gross Profit | 223 223 |
12%
12%
72%
|
|
| - Selling and Administrative Expenses | 149 149 |
14%
14%
48%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 76 76 |
19%
19%
24%
|
|
| - Depreciation and Amortization | 15 15 |
29%
29%
5%
|
|
| EBIT (Operating Income) EBIT | 60 60 |
16%
16%
19%
|
|
| Net Profit | 55 55 |
51%
51%
18%
|
|
In millions CAD.
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Company Profile
Medical Facilities Corp. engages in the provision of surgical hospitals and an ambulatory surgery center. Its facilities include Arkansas Surgical Hospital, Unity Medical and Surgical Hospital, Black Hills Surgical Hospital, Newport Center Surgical, City Place Surgery Center, and Two Rivers Surgical Center. The company was founded on January 12, 2004 and is headquartered in Toronto, Canada.
StocksGuide Premium
| Head office | Canada |
| CEO | Mr. Redman |
| Employees | 1,833 |
| Founded | 2004 |
| Website | www.medicalfacilitiescorp.ca |


