Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES 2023 THIRD QUARTER RESULTS

Medical Facilities Corp. has released its financial results today for the three-month and nine-month periods ended Sept. 30, 2023. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q3 2023 highlights (compared with Q3 2022):

• Completed the divestitures of its remaining ownership interests in the MFC Nueterra ambulatory surgery centres (ASCs) for aggregate proceeds of $3.5-million;
• Facility service revenue was $104.6-million, representing an increase of 7.4 per cent when excluding the MFC Nueterra ASCs;
• Income from operations increased 20.3 per cent to $12.5-million;
• EBITDA (earnings before interest, taxes, depreciation and amortization) increased 13.7 per cent to $17.7-million;
• The corporation repaid $3-million on its corporate credit facility and returned an additional $1-million to shareholders through the purchase of 157,700 of its common shares under its normal course issuer bid (NCIB).

"This was another quarter of solid financial performance for MFC. We achieved higher revenue and profitability, achieved further savings at the corporate level, and successfully completed the divestitures of the MFC Nueterra ASCs," said Jason Redman, president and chief executive officer of Medical Facilities. "Excluding the divested MFC Nueterra ASCs, our revenue for the quarter was up 7.4 per cent. The divestiture of non-core assets not only strengthens our financial position but also allows MFC to better concentrate on supporting our physician partners in providing the best patient experience and hospital care.

"During the quarter, we also continued to reduce our corporate debt and repurchase shares as we remain focused on maintaining a strong and sustainable financial structure and creating long-term value for our shareholders."

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 3.40 per cent on the Sept. 29, 2023, closing price of $9.46 (Canadian) per common share.

On Sept. 30, 2023, Medical Facilities had consolidated net working capital of $13.1-million and cash and cash equivalents of $27-million compared with net working capital of $32.5-million and cash and cash equivalents of $34.9-million as at Dec. 31, 2022. The decline in cash and cash equivalents partly reflects activity at the corporate level to make repayments of $12-million against the corporate credit facility and repurchasing common shares under the NCIB for aggregate consideration of $5.5-million.

Medical Facilities' financial statements and management's discussion and analysis, for the three-month and nine-month periods ended Sept. 30, 2023, will be filed on SEDAR+ on Thursday, Nov. 9, 2023, and will also be available on Medical Facilities' website.

Notice of conference call

Management of Medical Facilities will host a conference call today, Nov. 9, 2023, at 8:30 a.m. ET to discuss its third quarter financial results. All interested parties may join the conference call by dialling 1-877-550-1875 approximately 15 minutes prior to the call to secure a line.

A live audio webcast of the call will be available on-line. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on Medical Facilities' 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. 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 ASC specializes in outpatient surgical procedures, with patient stays of less than 24 hours.

We seek Safe Harbor.