Dear shareholders and investors,
It is with renewed pleasure that I’m communicating with you in the context of Premier Health’s third quarter results.
Third Quarter Results
Our financial results exceeded our expectations again this quarter. The growth the Company is experiencing is the result of daily team efforts and the capacity of our organization to adapt quickly and constantly seek improvement. As mentioned in my last communication, the majority of our governmental contracts were renewed early in calendar year 2020 and, as it was the case over the second quarter, the Company is harvesting the result of its previous efforts of repositioning its offering for government requisitions by type of employment, establishment as
well as by region. Recent updates to our platform also allowed us to better position our healthcare professionals by sector and to maximize billable hours within the context of these requisitions. For the 9 months period this translates in a 66% revenue increase over the same period last year with a gross margin of 25.6% compared to 20.3% in 2019. These results confirm the strategic direction Premier Health is pursuing as well as the maturity of our business model.
Following the recommendations of public health authorities of Canada and Quebec, the various healthcare organizations adopted policies and mechanisms to limit healthcare professionals travel between facilities to minimize cross contamination risks. This resulted in an average down of available personnel for any specific location, and while being very efficient from a sanitary standpoint, it put additional pressure on human resources. The impact on Premier Health has been to stabilize the demand for personnel at set levels for most locations and to decrease the weekly volatility of personnel placement with these organizations. Premier Health has adapted
quickly to this new reality resulting in an increase in billable hours while also increasing safety mechanisms for the Company’s professionals. As the COVID-19 scenario unfolds we realize that this situation, which is omnipresent in everybody’s life, will persist through the end of 2020 and probably early 2021.The Company plans to continue adjusting its operational strategy as new public health authorities’ guidelines are put in place.
Acquisition of Code Bleu
We announced an agreement in principle to acquire Code Bleu Placement on August 4 and I want to share our enthusiasm for this important milestone for the Company. The management has identified acquisitions as the preferred growth vector for the Company for the next five years and the Canadian market is fragmented and ripe for consolidation. In general terms, smaller players have limited access to technologies mainly because of size and cost. Without this technology layer it has become very difficult to operate proficiently and compete
with more structured organizations. However, some of these smaller organizations have developed long standing relationships with healthcare personnel and contractual arrangements with healthcare organizations in their respective geographical markets which make them palatable acquisition targets for Premier Health.
Code Bleu falls into a different category, however. Over the years Code Bleu has achieved a critical mass sufficient to compete very efficiently in its market. The company is well managed and is considered as one of the prominent agencies in Quebec. This acquisition can be considered fundamental for Premier Health in the sense that it provides the Company with a robust foundation to expand geographically outside of the Quebec boundaries. It also enables Premier Health to cover a wider spectrum of healthcare professionals and pricing range in the Quebec market. We expect to complete the acquisition on or around October 1, 2020 and to
fully consolidate Code Bleu’s results in the first fiscal quarter of 2021.
Premier Health’s corporate strategy evolves around three development axes, namely technology, recruitment and acquisitions. The important traffic increase and successive quick adjustments to operational procedures related to COVID-19 have tested the robustness and demonstrated the strength and adaptability of our technology platform. Moving forward, Premier Health has a technology development strategy aimed among other things at accelerating, facilitating, and automating recruitment. We believe that this strategic direction will give Premier Health an important advantage as the Company enters other geographical markets in the near future.
I wish you all the best,
Chief Executive Officer
For Further Information Please Contact:
Mr. Jean-Robert Pronovost
Vice-President, Corporate Development
Premier Health of America Inc.
(formerly known as Physinorth Acquisition Corporation Inc.)
[email protected] / 514-581-1473
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Corporation’s common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Corporation assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. These factors and others are more fully discussed in the filings of the Corporation with Canadian securities regulatory authorities available at www.sedar.com.