TORONTO, Aug. 6, 2026 /CNW/ -- Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the three-month and six-month periods ended June 30, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.
Q2 2026 Highlights
(For continuing operations1, excluding non-controllable, non-cash corporate level charges related to share-based compensation plans, compared to Q2 2025)
- Facility service revenue grew 7.8% to $63.1 million.
- Income from operations increased 9.4% to $9.6 million.
- EBITDA2 increased 7.1% to $12.5 million.
- Returned approximately $17.1 million to shareholders through the purchase of 1,337,500 common shares via its normal course issuer bid ("NCIB").
- Consolidated cash balance of $64.1 million, including a corporate cash balance of $58.0 million, at quarter end.
"We delivered another solid quarter as a favourable mix of higher-value orthopedic and spine procedures drove growth in revenue, income from operations, and EBITDA," said Jason Redman, President and CEO of Medical Facilities. "At the same time, we returned meaningful capital to shareholders through our NCIB program. In the first half of the year, MFC repurchased 1,655,900 common shares for a total of $21.0 million, including 1,337,500 shares for $17.1 million during the quarter. We continue to remain focused on maximizing value for our shareholders and evaluating opportunities to do so."
Financial Results
Financial Results from Continuing Operations | For the three months ended June 30 | For the six months ended June 30 |
(thousands of U.S. dollars, except per share amounts and where otherwise noted) | 2026 | 2025 | %
change | 2026 | 2025 | %
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Facility service revenue | 63,081 | 58,497 | 7.8 % | 130,191 | 119,054 | 9.4 % |
Operating expenses, before non-cash share-based compensation charges | 53,490 | 49,730 | 7.6 % | 107,844 | 99,439 | 8.5 % |
Non-cash share-based compensation charges | 415 | 126 | 229.4 % | 786 | 316 | 148.7 % |
Income from operations | 9,176 | 8,641 | 6.2 % | 21,561 | 19,299 | 11.7 % |
Finance costs (changes in values of derivative instruments and gain/loss on foreign currency) | 2,828 | (367) | 870.6 % | (2,413) | 3,993 | (160.4 %) |
Finance costs (net interest expense) | 263 | 441 | (40.4 %) | 427 | 321 | 33.0 % |
Income tax expense | 426 | 1,704 | (75.0 %) | 4,755 | 1,070 | 344.4 % |
Net income3 from continuing operations | 5,659 | 6,863 | (17.5 %) | 18,792 | 13,915 | 35.0 % |
Earnings per share attributable to owners of the Corporation |
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Basic | 0.09 | 0.16 | (43.8 %) | 0.55 | 0.28 | 96.4 % |
Fully diluted | 0.09 | 0.13 | (30.8 %) | 0.41 | 0.28 | 46.4 % |
Net income fluctuated 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.
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Reconciliation of Net Income from Continuing Operations to EBITDA2 | For the three months ended June 30 | For the six months ended June 30 |
(thousands of U.S. dollars, except where otherwise noted) | 2026 | 2025 | %
change | 2026 | 2025 | %
change |
Net income from continuing operations | 5,659 | 6,863 | (17.5 %) | 18,792 | 13,915 | 35.0 % |
Income tax expense | 426 | 1,704 | (75.0 %) | 4,755 | 1,070 | 344.4 % |
Finance costs (income) | 3,091 | 74 | 4,077.0 % | (1,986) | 4,314 | (146.0 %) |
Depreciation and amortization | 2,943 | 2,939 | 0.1 % | 5,868 | 5,871 | (0.1 %) |
EBITDA | 12,119 | 11,580 | 4.7 % | 27,429 | 25,170 | 9.0 % |
Distributable Cash Flow | For the three months ended June 30 | For the six months ended June 30 |
(thousands of dollars, except per share amounts and where otherwise noted) | 2026 | 2025 | %
change | 2026 | 2025 | %
change |
Cash available for distribution2 (C$) | 4,329 | 5,262 | (17.7 %) | 11,153 | 14,286 | (21.9 %) |
Distributions (C$) | 1,459 | 1,697 | (14.0 %) | 3,039 | 3,449 | (11.9 %) |
Distributions per common share (C$) | 0.086 | 0.089 | (3.4 %) | 0.175 | 0.167 | 4.8 % |
Payout ratio2 | 33.9 % | 32.4 % | 4.6 % | 27.3 % | 24.1 % | 13.3 % |
During the quarter, MFC paid a quarterly cash dividend of C$0.09 per common share (or C$0.36 per share on an annualized basis), which represents an annualized yield of 2.01% on the June 30, 2026, closing price of C$17.90 per common share.
On June 30, 2026, MFC had consolidated net working capital of $65.2 million and cash and cash equivalents of $64.1 million compared to net working capital of $54.0 million and cash and cash equivalents of $43.4 million as at December 31, 2025. The change in consolidated net working capital primarily reflects the sale of Oklahoma Spine Hospital, LLC ("OSH") in the first quarter of 2026, resulting in an increase in cash and cash equivalents from the sale proceeds received, partly offset by a reduction in current assets and current liabilities with the removal of OSH's held-for-sale balances.
MFC's financial statements and management's discussion and analysis, for the three and six months ended June 30, 2026, will be filed on SEDAR+ at www.sedarplus.ca on Thursday, August 6, 2026, and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.
Notice of Conference Call
Management of MFC will host a conference call today at 8:30 am ET to discuss its second quarter financial results. You may join the conference call by dialing 1-888-699-1199 approximately 15 minutes prior to the call to secure a line. To join the call without operator assistance, you may register and enter your phone number at https://emportal.ink/4gJqQuk to receive an instant automated call back.
A live audio webcast of the call will be available at https://app.webinar.net/m0MVJ8mBeEj. 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 MFC's website following the call date.
About Medical Facilities
Medical Facilities owns a 51% controlling interest, with its physician partners owning the remaining 49% interest, in two highly rated, high-quality specialty surgical hospitals located in Arkansas and South Dakota. The 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. For more information, please visit www.medicalfacilitiescorp.ca.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements, except as required by applicable law; such statements speak only as of the date made.
1 Continuing operations is defined as consolidated operations excluding Oklahoma Spine Hospital, LLC, and the Surgery Center of Newport Coast, LLC, which were treated as discontinued operations in the financial results for the three-month and six-month periods ended June 30, 2026 and 2025. |
2 EBITDA, cash available for distribution, and payout ratio are non-IFRS financial measures. While Medical Facilities believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers and should not be considered as alternatives to comparable measures determined in accordance with IFRS. For further information on these non-IFRS financial measures, including a reconciliation of each of these non-IFRS financial measures to the most directly comparable measure calculated in accordance with IFRS, please refer to Medical Facilities' most recently filed management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca. |
3 Net income is attributable to the owners of the Corporation and the non-controlling interest holders. |
SOURCE Medical Facilities Corporation
View original content: http://www.newswire.ca/en/releases/archive/August2026/06/c1910.html
For further information, please contact: David Watson, Chief Financial Officer, Medical Facilities Corporation, 1-877-402-7162, investors@medicalfc.com; Trevor Heisler, Investor Relations, MBC Capital Markets Advisors, 416-848-7380, theisler@mbccapitalmarkets.com