Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES 2023 SECOND QUARTER RESULTS

Medical Facilities Corp. has released its financial results for the three-month and six-month periods ended June 30, 2023. Subsequent to quarter-end, the corporation sold its ownership interests in City Place Surgery Center, St. Luke's Surgery Center of Chesterfield LLC and Miracle Hills Surgery Center LLC for aggregate net proceeds of $2.3-million. The buyer of St. Luke's also assumed debt of $5-million and the corporation was released from its pro rata guarantee. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q2 2023 highlights (compared with Q2 2022):

• Facility service revenue increased 7.2 per cent to $109.5-million;
• Surgical case volumes increased 1 per cent, excluding the Medical Facilities Nueterra ambulatory surgery centres (ASCs);
• Income from operations was $15.6-million, an increase of 8.3 per cent when excluding non-controllable, non-cash, corporate-level charges related to share-based compensation plans;
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $21.2-million, an increase of 9.2 per cent when excluding non-controllable, non-cash, corporate-level charges related to share-based compensation plans;
• The corporation purchased 316,100 of its common shares for a total consideration of $1.9-million under its normal course issuer bid (NCIB).

"Our hospitals continued to perform well, contributing to a really solid quarter," said Jason Redman, president and chief executive officer of Medical Facilities. "We used our strong operating cash flow to repay $9-million on our corporate credit facility and return an additional $1.9-million to shareholders through our NCIB. We also substantially completed our overhead cost reduction plan, having reduced corporate costs by an annual run rate of approximately $5-million. And subsequent to quarter-end, we completed the divestitures of all but one of the MFC Nueterra ASCs and sold our non-controlling ownership interest in St. Luke's."

During the quarter, Medical Facilities paid a quarterly cash dividend of 8.05 Canadian cents per common share (or 32.2 Canadian cents per share on an annualized basis), which represented an annualized yield of 3.88 per cent on the June 30, 2023, closing price of $8.29 (Canadian) per common share.

On June 30, 2023, Medical Facilities had consolidated net working capital of $22.3-million, compared with $32.5-million on Dec. 31, 2022, with the decrease partly reflecting repayments of $9-million against the corporate credit facility during the quarter.

Medical Facilities' financial statements and management's discussion and analysis, for the three-month and six-month periods ended June 30, 2023, will be filed on SEDAR on Thursday, Aug. 10, 2023, and will also be available on Medical Facilities' website.

Notice of conference call

Management of Medical Facilities will host a conference call today, Aug. 10, 2023, at 8:30 a.m. ET to discuss its second quarter financial results. All interested parties may join the conference call by dialling 416-764-8650 or 1-888-664-6383 approximately 15 minutes prior to the call to secure a line. To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated call back.

A live audio webcast of the call will be available on-line. Please connect at least 15 minutes prior to the call to allow time for any software download that may be required to join the webcast. The webcast will be archived on the company's website following the call date.

About Medical Facilities Corp.

Medical Facilities, in partnership with physicians, owns a diverse portfolio of highly rated, high-quality surgical facilities in the United States. Medical Facilities' ownership includes controlling interest in four specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, and an ambulatory surgery centre (ASC) located in California. In addition, through a partnership with NueHealth LLC, Medical Facilities owns a controlling interest in an ASC located in Michigan. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ASCs specialize in outpatient surgical procedures, with patient stays of less than 24 hours.

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