• WELL achieved record quarterly revenues of $170.9 million and record Adjusted EBITDA⁽¹⁾ of $27.8 million in Q2-2023. This was WELL’s 18^th consecutive quarter of record revenue performance.
• WELL surpassed a total of 1 million patient visits⁽²⁾ for the first time in Q2-2023. The Company also almost achieved 1.5 million total patient interactions⁽²⁾ representing approximately 5.9 million patient interactions on an annualized run-rate basis.
• Today WELL also announced that its OceanMD subsidiary has signed a multi-year $38.5 million contract to provide eReferral and eOrder technology services to providers and patients in the Province of British Columbia.
• WELL is upgrading its guidance with the expectation that 2023 revenue will be in the upper half of its annual guidance of $740 million to $760 million reflecting improved organic growth expectations for the balance of the year.

VANCOUVER, BC, Aug. 10, 2023 /PRNewswire/ – WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (the “Company” or “WELL“), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its interim consolidated financial results for the quarter ended June 30, 2023.

Hamed Shahbazi, Founder and CEO of WELL commented, “We had a great quarter, our record revenue, Adjusted EBITDA⁽¹⁾ and patient visits are a testament to the Company’s continued focus on tech enabling healthcare providers and supporting them in simplifying their work lives, modernizing, and digitizing their clinical practices and delivering the best healthcare possible. WELL exited Q2-2023 with over 3,200 providers and clinicians representing more than 40% growth in providers and delivering a milestone of over 1 million quarterly patient visits delivered by our own team of providers for the first time in the Company’s history. During the past few months, we also launched several key initiatives related to Artificial Intelligence (“AI”), including WELL AI Voice and the WELL AI Investment Program which includes a recent investment in AI-enabled disease detection capabilities. This is only the beginning as we have a compelling pipeline of opportunities, we are pursuing that leverage the power of AI to give healthcare providers clinical decision support tools that will give them their time back, enhance clinic productivity and provide better patient outcomes. We are determined to faithfully support healthcare professionals with the very best technology available which now includes significant investments in AI-based products and services.”

Mr. Shahbazi further added, “The recently announced acquisitions of CarePlus and the clinical assets of MCI OneHealth, coupled with OceanMD’s momentous contract win in the Province of British Columbia gives us confidence in increasing our expectations for 2023 revenue to be over $750 million and pave the way for our push to surpass $1 billion in revenues within a couple of years.”

Eva Fong, WELL’s Chief Financial Officer, added, “Our profitability and cashflow profile continue to be robust. I am also pleased to announce that we have further reduced our leverage ratio⁽³⁾ of net bank debt to shareholder Adjusted EBITDA from 3.0x at the end of Q2-2022 to 2.3x as of the end of Q2-2023. Our organic growth profile remains strong, and the M&A pipeline continues to be active, allowing us to provide a positive outlook for the remainder of 2023 and beyond.”

Second Quarter 2023 Financial Highlights:

• WELL achieved record quarterly revenue of $170.9 million in Q2-2023, an increase of 21.8% as compared to revenue of $140.3 million generated in Q2-2022. Year-to-date, WELL has achieved organic growth⁽⁴⁾ of 15%.
• Canadian Patient Services revenue was $54.2 million in Q2-2023, an increase of 23.9% as compared to $43.7 million in Q2-2022, with both Primary Care and MyHealth Specialized Care Clinics achieving record revenue in the quarter.
• WELL Health USA Patient Services revenue was $103.5 million in Q2-2023, an increase of 29.9% as compared to $79.6 million in Q2-2022, driven by growth in the WELL Health USA’s Wisp, Circle Medical and CRH lines of business.
• SaaS and Technology Services revenue was $13.3 million in Q2-2023, a decrease of 21.8% as compared to $17.0 million in Q2-2022. This decline was due to timing of contracts in the Company’s cybersecurity related business. SaaS and Technology outside of Cybersecurity was $11.3 million in Q2-2023 an increase of 29% as compared to $8.8 million in Q2-2022.
• Adjusted Gross Profit⁽¹⁾ was $90.8 million in Q2-2023, an increase of 20.3% as compared to Adjusted Gross Profit⁽¹⁾ of $75.5 million in Q2-2022.
• Adjusted Gross Margin⁽¹⁾ percentage was 53.1% during Q2-2023 compared to Adjusted Gross Margin⁽¹⁾ percentage of 53.8% in Q2-2022.
• Adjusted EBITDA⁽¹⁾ was $27.8 million in Q2-2023, an increase of 5.1% as compared to Adjusted EBITDA⁽¹⁾ of $26.4 million in Q2-2022.
• Adjusted EBITDA⁽¹⁾ to WELL shareholders was $22.3 million in Q2-2023, an increase of 16.2% as compared to Adjusted EBITDA⁽¹⁾ to WELL shareholders of $19.2 million in Q2-2022.
• Adjusted Net Income⁽¹⁾ was $14.4 million, or $0.06 per share in Q2-2023, as compared to Adjusted Net Income⁽¹⁾ of $17.5 million, or $0.08 per share in Q2-2022.

Second Quarter 2023 Business Highlights:

On April 26, 2023, WELL Ventures announced the launch of its AI Investment program, focused on artificial intelligence and its applications in helping support healthcare providers with next-generation tools. The WELL AI Investment Program will provide investees with capital as well as extensive support from WELL’s ecosystem to help develop, test, refine, secure, de-risk and integrate the most promising such technologies into the Canadian healthcare ecosystem at scale.

On May 10, 2023, the Company launched WELL AI Voice, a transformational ambient scribe product that leverages generative AI to dramatically reduce a provider’s administrative burden by privately and securely capturing a patient encounter conversation and automatically generating a succinct and medically relevant chart note for the patient interaction. Since its launch, WELL AI Voice has been integrated in thousands of patient visits.

On June 1, 2023, the Company completed the acquisition of five multi-disciplinary primary care clinics based in Calgary, Alberta from MCI Medical Clinics Inc., a subsidiary of MCI Onehealth Technologies Inc. (TSX: DRDR) (“MCI“), offering a range of primary care services, including family medicine, women’s health, and other specialties. This acquisition marks a significant milestone in WELL’s expansion into Alberta and supports the Company’s national clinic expansion strategy.

On June 22, 2023, the Company announced that CRH Medical has made a strategic investment in Graphium Health a leading EMR or Electronic Medical Records company focused on Anesthesia Practices. The investment is part of a Strategic Alliance designed to further digitize and modernize CRH’s billing and back-office processes. Based on a recent pilot project with Graphium Health, CRH had demonstrated that it improved its time to capture billable charges by 58% or 5.6 days and reduced its overall accounts receivable (“AR”) balance at the pilot project sites by 24%.

Events Subsequent to June 30, 2023:

On July 1, 2023, the Company through its subsidiary CRH, acquired a 100% interest in CarePlus Medical Corporation (“CarePlus“).

On July 19, 2023, the Company entered into an agreement to acquire clinic assets located in Southern Ontario from MCI and a subscription agreement for a convertible debenture financing in MCI which is now strategically focused on its leading AI, Data Science and Rare & Complex Disease Detection platform.

On July 27, 2023, the Company announced that it has re-branded CRH Medical Corporation as WELL Health USA. WELL Health USA’s goal is to mirror WELL’s mission of tech enabling care providers in the United States while digitizing and modernizing healthcare businesses. In addition, WELL Health USA will leverage its deep US based healthcare expertise and structural advantages to create a whole new category of shared services that will benefit and deliver improved integration with WELL’s US based lines of business. WELL USA will be used henceforth to reflect WELL’s total US based financial activity which includes lines of business such as CRH, Radar, Circle Medical and Wisp.

On August 10, 2023, WELL announced that it had signed a $38.5 million contract with British Columbia’s Public Health Services Authority to provide an array of digital services such as eReferrals, eConsults and eOrders to help further empower providers with best-in-class interoperability tools. This is the third Canadian province, in addition to Ontario and Nova Scotia, that has materially partnered with OceanMD.

Outlook:

WELL is expecting its strong performance to continue into the second half of 2023 across all its business units and for the entire Company as a whole. WELL’s objective is to invest in and achieve significant growth while effectively managing its costs and delivering strong growth and sustained cashflow to shareholders. Management is pleased to provide the following update to its 2023 annual guidance:

• Annual revenue is expected to be in the upper half of the guidance range of $740 million to $760 million. Annual guidance only includes announced acquisitions.
• Annual Adjusted EBITDA⁽¹⁾ is expected to increase by more than 10% over 2022 levels allowing the company to invest in growth and continue to acquire market share.

WELL expects to continue to grow its Canadian Patient Services business both organically and inorganically and increase its market leadership as the country’s first pan-Canadian clinical network with a highly integrated network of tech-enabled outpatient healthcare clinics across the country. Meanwhile, growth in the Company’s WELL Health USA Patient Services business is expected to be primarily driven by organic growth, augmented by the Company’s recent acquisition of CarePlus.

As a company with deep tech experience and capabilities, WELL has also made investments in AI technologies a key priority within the Company and expects to develop compelling new products and enhancements to roll out to WELL’s vast provider network.

WELL’s strong organic growth and robust cash flow profile allows the Company to continue to successfully execute on its acquisition plans. Management expects additional cash flows generated by the Company will be re-invested in the business and allocated in a disciplined manner.

WELL is a purpose-driven business that aims to transform the world for the better, as such the Company has embarked on an ongoing ESG (Environmental, Social and Governance) program. On July 7, 2023, the Company released its second ESG report titled “Taking Care of the Care Providers”, which highlights WELL’s ESG strategy, reporting initiatives and targeted actions. For more information on WELL’s ESG program, please visit: https://well.company/esg-report.

Conference Call:

WELL will hold a conference call to discuss its 2023 Second Quarter financial results on Thursday, August 10, 2023, at 1:00 pm ET (10:00 am PT). Please use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local), 1-888-664-6383 (Toll-Free) or +1-416-764-8650 (International).

The conference call will also be simultaneously webcast and can be accessed at the following audience URL: https://well.company/events.

Selected Unaudited Financial Highlights:

Please see SEDAR for complete copies of the Company’s condensed interim consolidated financial statements and interim MD&A for the quarter ended June 30, 2023.

WELL HEALTH TECHNOLOGIES CORP.

Per:  “Hamed Shahbazi”
Hamed Shahbazi
Chief Executive Officer, Chairman and Director

About WELL Health Technologies Corp.

WELL’s mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL’s comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL’s solutions enable more than 31,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 148 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL’s solutions are focused on specialized markets such as the gastrointestinal market, women’s health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol “WELL” and on the OTC Exchange under the symbol “WHTCF”. To learn more about the Company, please visit: www.well.company.

Forward-Looking Statements

This news release may contain “Forward-Looking Information” within the meaning of applicable Canadian securities laws, including, without limitation: its patient interaction run-rate and annual guidance; information regarding the Company’s goals, strategies and growth plans; expectations regarding continued revenue and EBITDA growth; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions or share repurchases; the expected financial performance as well as information in the “Outlook” section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL’s comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL ‘s control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedarplus.ca, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL’s anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.

Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE WELL Health Technologies Corp.