Mr. Martin Legault reports

PREMIER HEALTH REPORTS 2023 FOURTH QUARTER RESULTS

Premier Health of America Inc. has filed its unaudited quarterly consolidated financial statements and MD&A (management's discussion and analysis) for its financial year ended Sept. 30, 2023.

Summary:

• Gross margin for the quarter was 25.8 per cent, in line with the company's long-term target of 25 per cent.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $2.1-million ($2.2-million for the same period in 2022). For the 12-month period, adjusted EBITDA increased by $2.5-million or 43 per cent.
• Net loss for the quarter was $1.9-million (nil for the same period in 2022).

During the fourth quarter of 2023, Premier Health suffered a slight decrease in adjusted EBITDA when compared with last year. This is mainly due to acquisition costs related to the recently closed acquisition of Solutions Staffing Inc. in British Columbia as well as the issuance of deferred share units under the standard program for its directors. This quarter was generally in line with management's expectations, although a goodwill impairment loss was recorded against the Code Bleu agency. Such impairment follows the adoption of Bill 10 in Quebec; more information can be found in the company's annual financial statements available on SEDAR+.

"We are pleased by the performance of CHCA and very excited of welcoming Solutions Staffing into our group. The timing of our expansion outside of Quebec was perfect and this will be of great benefit to the group as we navigate through the regulatory changes from Quebec's Bill 10, effective since October, 2023. Our eyes remain open to consolidate more assets in Ontario and the rest of Canada, and we feel there are still good opportunities available," said Martin Legault, chief executive officer of Premier Health. "The Quebec market is evolving and we still believe agencies will play a role in the future state of its health care system. We need to be smart, adapt and use our scale to be competitive."

Business highlights and recent developments:

• The company provided 209,421 hours of service during the quarter (217,100 hours in Q3 of 2023);
• Acquisition of Solutions Staffing (British Columbia, Canada) completed on Nov. 9, 2023;
• $50-million acquisition financing and refinancing of the company's revolving credit and a term loan completed on the same day;
• Renewed contract with Indigenous Services Canada for CHCA; the contract has a term of four years plus four one-year extensions;
• New contracts with the Cree Board of Health and Social Services of James Bay;
• Extension of the main procurement contract in Quebec until June of 2024;
• Official deployment of the company's LiPHe platform in its Code Bleu subsidiary. The next deployment will be at CHCA and is targeted for Q3 of 2024.

Solutions Staffing

This acquisition is a major milestone in terms of geographical diversification of Premier Health. It also expands the company's base in the travel nurse segment, which, because of longer-term assignments, is simpler to manage. Based on its 2022 fiscal year, Solutions Staffing had revenues of $74.0-million and an EBITDA of $6.7-million. On a pro forma basis, Premier Health's revenue base outside Quebec will represent over 60 per cent of total revenues.

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.

Non-GAAP (generally accepted accounting principles) measures

EBITDA is calculated as the net profit (loss) before non-recurring items, excluding acquisition and transaction costs, non-cash expenses (including loss from disposal of assets, impairments, amortization and depreciation), interest expense, net of interest income, and income tax expense. More detail can be found in Premier Health's management's discussion and analysis.

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