Mr. Graham Rosenberg reports

DENTALCORP REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS

Dentalcorp Holdings Ltd. has released its financial and operating results for the fourth quarter and full year ended Dec. 31, 2023. All financial figures are in Canadian dollars unless otherwise indicated.

"Our teams across the country delivered another year of exceptional results," said Graham Rosenberg, chief executive officer and chairman of Dentalcorp. "Two thousand twenty-three marks the 11th consecutive year of us delivering double-digit annual growth in PF [pro forma] revenue and PF adjusted EBITDA [earnings before interest, taxes, depreciation and amortization]."

"During the year, we focused our efforts on core business execution and delivered strong 6.5-per-cent same-practice revenue growth, while growing adjusted EBITDA by 12.6 per cent. We deployed approximately $142-million into 27 highly accretive acquisitions, expected to generate PF adjusted EBITDA after rent of $20.6-million.

"As the market leader in an industry that is approximately 7 per cent consolidated, we are excited about the numerous growth opportunities before us and look forward to another strong year in 2024. We anticipate another year of double-digit growth in PF revenue, PF adjusted EBITDA and adjusted free cash flow per share, driven by strong organic growth and our disciplined capital allocation decisions. We expect to deliver adjusted EBITDA margin expansion, driven by the operating leverage inherent in our business, and anticipate deleveraging of our balance sheet as we continue to self-fund a significant portion of our acquisition program."

Financial and operating results for the fourth quarter ended Dec. 31, 2023:

• Revenue of $362.2-million, representing an increase of 9.4 per cent compared with the fourth quarter of 2022, driven in large part by robust SPRG of 6.7 per cent.
• Adjusted EBITDA of $65.8-million, an 8.6-per-cent increase over the fourth quarter of 2022, with adjusted EBITDA margin of 18.2 per cent.
• Adjusted net income for the quarter was $100-million.
• Adjusted free cash flow for the quarter was $33.9-million, an increase of 12.6 per cent.
• Acquired 12 practices expected to contribute $9.3-million in PF adjusted EBITDA after rent.

Financial and operating results for the full year ended Dec. 31, 2023:

• Revenue for the year at $1,425.7-million, a 14-per-cent increase over the previous year, with strong SPRG of 6.5 per cent driven in part by Dentalcorp's insourcing initiatives with 317 practices in the program, up from 265 at the end of 2022.
• Adjusted EBITDA of $259.7-million, representing a 12.6-per-cent increase over the prior year.
• Adjusted free cash flow of $127.2-million.
• Acquired 27 new practices, expected to generate $20.6-million in PF adjusted EBITDA after rent.
• Expanded the company's operational footprint to 545 dental practices by year-end, reinforcing its position as Canada's leading dental care provider.
• Completed the year with substantial liquidity of approximately $392.4-million, comprising cash on hand and available undrawn debt capacity.

Conference call notification

The company will hold a conference call to provide a business update on Friday, March 22, 2024, at 8:30 a.m. ET. A question-and-answer session will follow the business update.

Live conference call details

Date: Friday, March 22, 2024

Time: 8:30 a.m. ET

Dial-in numbers: 1-888-660-6396 or 1-929-203-0889

Conference ID: 9097710

Replay: available for two weeks after the call

Dial-in numbers: 1-800-770-2030 or 1-647-362-9199

Conference ID: 9097710

About Dentalcorp Holdings Ltd.

Dentalcorp is Canada's largest and one of North America's fastest-growing networks of dental practices, committed to advancing the overall well-being of Canadians by delivering the best clinical outcomes and unforgettable experiences. Dentalcorp acquires leading dental practices, uniting its network in a common goal: to be Canada's most trusted health care network. Leveraging its industry-leading technology, know-how and scale, Dentalcorp offers professionals the unique opportunity to retain their clinical autonomy while unlocking their potential for future growth.

We seek Safe Harbor.