Mr. Martin Legault reports

PREMIER HEALTH REPORTS SECOND QUARTER RESULTS

Premier Health of America Inc. has filed its unaudited quarterly consolidated financial statements and MD&A (management discussion and analysis) for its first quarter ended March 31, 2023.

Summary:

• The corporation had revenues of $21.8-million for the second quarter ($17.6-million for the same period in 2022).
• Gross margin for the quarter was 26.5 per cent, slightly above the company's long-term target of 25 per cent.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $1.9-million ($500,000 for the same period in 2022).
• Increases in revenue and adjusted EBITDA are mainly attributable to the consolidation of Canadian Health Care Agency (CHCA) acquired in April, 2022, which more than offset for lower activity in Quebec.
• Net income for the quarter was $100,000 (net loss of $300,000 for the same period in 2022).

"We are happy to report improved results for this quarter. Our gross margins remain within our target range while CHCA continues to deliver results in line with the expectations we had when we purchased it last year. We are thrilled about the diversification it brings to our portfolio and eager to add more assets in Ontario and the rest of Canada," said Martin Legault, chief executive officer of Premier Health. "We'll continue to rigorously manage our existing assets as we monitor the evolving Quebec market."

Business highlights:

• The corporation provided 212,600 hours of service during the quarter;
• The special measures imposed by the Ministry of Health last year were lifted as of Jan. 1, 2023, for all regions outside of Montreal, Laval, Quebec City and Sherbrooke; as a reminder, these measures were adopted in response to the pandemic; they imposed pricing below existing contracts awarded through a competitive public procurement process;
• Acquisition of Ontario-based CHCA in the third quarter of fiscal 2022 continues to contribute positively to earnings;
• Successful launch of new mobile application with additional time sheet management features;
• Continued development of the company's LiPHe platform to further improve automation of the company's business processes; deployment is in process at some of the company's subsidiaries.

Province of Quebec

The company expected a gradual return to normality in 2023. However, the National Assembly of Quebec sanctioned Bill 10 on April 20, 2023. Bill 10 mainly states that the Ministry of Health can decide where, when and for how long institutions can use independent labour. Such decisions need to be enacted through the issuance of specific directives, and, as long as such directives are not issued, the company does not expect a material impact on its business units in Quebec. The company believes that its services offer flexibility to both professionals and institutions, and, as such, play a vital role in providing quality health care to the population. Independent labour accounts for less than 5 per cent of the total hours worked in the public health care system and should be viewed as tool to ensure there is no rupture in the delivery of care. The company is supporting clear directives, including clear engagement parameters and tender processes. The company believes this could prove positive for the industry and possibly decrease the average cost paid by the Ministry of Health for the company's services. The company is closely monitoring the situation and is actively involved in the overall reflection with the Quebec Ministry of Health on the future of the company's industry through its industry association.

Canadian Health Care Agency

The Ontario agency was acquired in April, 2022, and contributed to the company's results for the full first six months of 2023. For the period, CHCA contributed around 30 per cent of the consolidated revenues. The integration of CHCA is going as planned with a solid and well-established management team. CHCA is an important service provider to the federal government and is also providing services to provincial entities, namely in Manitoba and British Columbia. CHCA recently was awarded a new contract in British Columbia for revenues of approximately $2-million.

About Premier Health of America Inc.

Premier Health is a leading Canadian health technology company that provides a comprehensive range of outsourced services solutions for health care needs to governments, corporations and individuals. Premier Health uses its proprietary LiPHe platform to lead the health care services sector digital transformation to provide patients with faster, cheaper and more accessible care services.

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