Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES 2023 FOURTH QUARTER AND YEAR-END RESULTS

Medical Facilities Corp. has released its financial results today for the fourth quarter and year ended Dec. 31, 2023. All amounts are expressed in United States dollars unless indicated otherwise.

Fourth quarter 2023 highlights (compared with Q4 2022 and excluding the divested MFC Nueterra ambulatory surgery centres):

• Facility service revenue increased 7.8 per cent to $122.2-million;
• Surgical cases increased by 4.9 per cent;
• Income from operations, excluding the prior-year impairment charge, increased 144 per cent to $25.6-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 97.3 per cent to $30.5-million;
• The corporation repaid $8-million on its corporate credit facility and returned an additional $2-million to shareholders through the purchase of 299,800 of its common shares under its normal course issuer bid (NCIB).

"Our surgical volumes were up in the quarter, helping drive higher revenue and profitability, and finishing off a strong year over all for MFC," said Jason Redman, president and chief executive officer of Medical Facilities. "We used our cash flow to further pay down debt, reducing the balance on our corporate credit facility by $8-million in the quarter and $20-million for the year. We also remained active with our NCIB, returning $2-million to shareholders in the quarter and $7.4-million for the year. As a result of executing our strategy in 2023, MFC is stronger, more focused and better positioned as we look forward to continuing our work in 2024."

Net income fluctuates significantly between the periods, primarily due to variations in non-cash finance costs (change in the value of exchangeable interest liability) and income taxes -- these charges are incurred at the corporate level rather than at the facility level.

During the quarter, the company paid a quarterly cash dividend of 8.05 Canadian cents per common share (32.2 Canadian cents per share on an annualized basis), which represented an annualized yield of 3.59 per cent on the Dec. 29, 2023, closing price of $8.98 (Canadian) per common share.

On Dec. 31, 2023, Medical Facilities had consolidated net working capital of $19.8-million, and cash and cash equivalents of $24.1-million compared with net working capital of $32.5-million, and cash and cash equivalents of $34.9-million as at Dec. 31, 2022. During the year ended Dec. 31, 2023, Medical Facilities made repayments of $20-million against the corporate credit facility and repurchased common shares under the NCIB for aggregate consideration of $7.4-million.

Medical Facilities' financial statements, and management's discussion and analysis, for the three-month and 12-month periods ended Dec. 31, 2023, will be filed on SEDAR+ on Thursday, March 14, 2024, and will also be available on Medical Facilities' website.

Notice of conference call

Management of Medical Facilities will host a conference call today, March 14, 2024, at 8:30 a.m. Eastern Time to discuss its fourth-quarter and full-year 2023 financial results. All interested parties may join the conference call by dialling 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 on-line 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 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 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.

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