Mr. Hamed Shahbazi reports

WELL HEALTH REPORTS RECORD RESULTS FOR Q2 2023 AND UPGRADES GUIDANCE FOR BALANCE OF YEAR

Well Health Technologies Corp. has released its interim consolidated financial results for the quarter ended June 30, 2023.

Hamed Shahbazi, founder and chief executive officer of Well, commented: "We had a great quarter, our record revenue, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and patient visits are a testament to the company's continued focus on tech enabling health care providers, and supporting them in simplifying their work lives, modernizing and digitizing their clinical practices, and delivering the best health care possible. Well exited Q2 2023 with over 3,200 providers and clinicians, representing more than 40-per-cent growth in providers and delivering a milestone of over one million quarterly patient visits delivered by our own team of providers for the first time in the company's history. During the past few months, we also launched several key initiatives related to artificial intelligence (AI), including Well AI Voice and the Well AI Investment Program, which includes a recent investment in AI-enabled disease detection capabilities. This is only the beginning, as we have a compelling pipeline of opportunities we are pursuing that leverage the power of AI to give health care providers clinical decision support tools that will give them their time back, enhance clinic productivity and provide better patient outcomes. We are determined to faithfully support health care professionals with the very best technology available, which now includes significant investments in AI-based products and services."

Mr. Shahbazi further added: "The recently announced acquisitions of CarePlus and the clinical assets of MCI OneHealth, coupled with OceanMD's momentous contract win in the province of British Columbia gives us confidence in increasing our expectations for 2023 revenue to be over $750-million, and pave the way for our push to surpass $1-billion in revenues within a couple of years."

Eva Fong, Well's chief financial officer, added: "Our profitability and cash flow profile continue to be robust. I am also pleased to announce that we have further reduced our leverage ratio of net bank debt to shareholder adjusted EBITDA from three times at the end of Q2 2022 to 2.3 times as of the end of Q2 2023. Our organic growth profile remains strong, and the M&A [merger and acquisition] pipeline continues to be active, allowing us to provide a positive outlook for the remainder of 2023 and beyond."

Second quarter 2023 financial highlights:

• Well achieved record quarterly revenue of $170.9-million in Q2 2023, an increase of 21.8 per cent as compared with revenue of $140.3-million generated in Q2 2022. Year-to-date, Well has achieved organic growth of 15 per cent.
• Canadian patient services revenue was $54.2-million in Q2 2023, an increase of 23.9 per cent as compared with $43.7-million in Q2 2022, with both primary care and MyHealth specialized care clinics achieving record revenue in the quarter.
• Well Health United States patient services revenue was $103.5-million in Q2 2023, an increase of 29.9 per cent as compared with $79.6-million in Q2 2022, driven by growth in the Well Health USA's Wisp, Circle Medical and CRH lines of business.
• SaaS (software-as-a-service) and technology services revenue was $13.3-million in Q2 2023, a decrease of 21.8 per cent as compared with $17-million in Q2 2022. This decline was due to timing of contracts in the company's cybersecurity-related business. SaaS and technology outside of cybersecurity was $11.3-million in Q2 2023, an increase of 29 per cent as compared with $8.8-million in Q2 2022.
• Adjusted gross profit was $90.8-million in Q2 2023, an increase of 20.3 per cent as compared with adjusted gross profit of $75.5-million in Q2 2022.
• Adjusted gross margin percentage was 53.1 per cent during Q2 2023, compared with adjusted gross margin percentage of 53.8 per cent in Q2 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $27.8-million in Q2 2023, an increase of 5.1 per cent as compared with adjusted EBITDA of $26.4-million in Q2 2022.
• Adjusted EBITDA to Well shareholders was $22.3-million in Q2 2023, an increase of 16.2 per cent as compared with adjusted EBITDA to Well shareholders of $19.2-million in Q2 2022.
• Adjusted net income was $14.4-million, or six cents per share, in Q2 2023, as compared with adjusted net income of $17.5-million, or eight cents per share, in Q2 2022.

Second quarter 2023 business highlights

On April 26, 2023, Well Ventures announced the launch of its AI investment program, focused on artificial intelligence and its applications in helping support health care providers with next-generation tools. The Well AI investment program will provide investees with capital, as well as extensive support from Well's ecosystem, to help develop, test, refine, secure, derisk and integrate the most promising such technologies into the Canadian health care ecosystem at scale.

On May 10, 2023, the company launched Well AI Voice, a transformational ambient scribe product that leverages generative AI to dramatically reduce a provider's administrative burden by privately and securely capturing a patient encounter conversation, and automatically generating a succinct and medically relevant chart note for the patient interaction. Since its launch, Well AI Voice has been integrated in thousands of patient visits.

On June 1, 2023, the company completed the acquisition of five multidisciplinary primary care clinics based in Calgary, Alta., from MCI Medical Clinics Inc., a subsidiary of MCI Onehealth Technologies Inc., offering a range of primary care services, including family medicine, women's health and other specialties. This acquisition marks a significant milestone in Well's expansion into Alberta and supports the company's national clinic expansion strategy.

On June 22, 2023, the company announced that CRH Medical has made a strategic investment in Graphium Health, a leading EMR (electronic medical records) company focused on anesthesia practices. The investment is part of a strategic alliance designed to further digitize and modernize CRH's billing and back-office processes. Based on a recent pilot project with Graphium Health, CRH had demonstrated that it improved its time to capture billable charges by 58 per cent, or 5.6 days, and reduced its overall accounts receivable (AR) balance at the pilot project sites by 24 per cent.

Events subsequent to June 30, 2023

On July 1, 2023, the company, through its subsidiary CRH, acquired a 100-per-cent interest in CarePlus Medical Corp.

On July 19, 2023, the company entered into an agreement to acquire clinic assets located in Southern Ontario from MCI and a subscription agreement for a convertible debenture financing in MCI, which is now strategically focused on its leading AI, data science, and rare and complex disease detection platform.

On July 27, 2023, the company announced that it has rebranded CRH Medical as Well Health USA. Well Health USA's goal is to mirror Well's mission of tech enabling care providers in the United States while digitizing and modernizing health care businesses. In addition, Well Health USA will leverage its deep U.S.-based health care expertise and structural advantages to create a whole new category of shared services that will benefit and deliver improved integration with Well's U.S.-based lines of business. Well USA will be used henceforth to reflect Well's total U.S.-based financial activity, which includes lines of business such as CRH, Radar, Circle Medical and Wisp.

On Aug. 10, 2023, Well announced that it had signed a $38.5-million contract with British Columbia's Public Health Services Authority to provide an array of digital services such as e-referrals, e-consults and e-orders to help further empower providers with best-in-class interoperability tools. This is the third Canadian province, in addition to Ontario and Nova Scotia, that has materially partnered with OceanMD.

Outlook

Well is expecting its strong performance to continue into the second half of 2023 across all its business units and for the entire company as a whole. Well's objective is to invest in and achieve significant growth, while effectively managing its costs, and delivering strong growth and sustained cash flow to shareholders. Management is pleased to provide the following update to its 2023 annual guidance:

• Annual revenue is expected to be in the upper half of the guidance range of $740-million to $760-million. Annual guidance only includes announced acquisitions.
• Annual adjusted EBITDA is expected to increase by more than 10 per cent over 2022 levels, allowing the company to invest in growth and continue to acquire market share.

Well expects to continue to grow its Canadian patient services business both organically and inorganically, and increase its market leadership as the country's first pan-Canadian clinical network, with a highly integrated network of tech-enabled outpatient health care clinics across the country. Meanwhile, growth in the company's Well Health USA patient services business is expected to be primarily driven by organic growth, augmented by the company's recent acquisition of CarePlus.

As a company with deep tech experience and capabilities, Well has also made investments in AI technologies a key priority within the company, and expects to develop compelling new products and enhancements to roll out to Well's vast provider network.

Well's strong organic growth and robust cash flow profile allows the company to continue to successfully execute on its acquisition plans. Management expects additional cash flows generated by the company will be reinvested in the business and allocated in a disciplined manner.

Well is a purpose-driven business that aims to transform the world for the better, as such the company has embarked on a continuing ESG (environmental, social and governance) program. On July 7, 2023, the company released its second ESG report titled "Taking Care of the Care Providers," which highlights Well's ESG strategy, reporting initiatives and targeted actions. For more information on Well's ESG program, please visit the company's website.

Conference call

Well will hold a conference call to discuss its 2023 second quarter financial results on Thursday, Aug. 10, 2023, at 1 p.m. ET (10 a.m. PT). Please use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local), 1-888-664-6383 (toll-free) or 1-416-764-8650 (international).

The conference call will also be simultaneously webcast and can be accessed at the company's website.

Selected unaudited financial highlights

Please see SEDAR+ for complete copies of the company's condensed interim consolidated financial statements and interim MD&A (management's discussion and analysis) for the quarter ended June 30, 2023.

About Well Health Technologies Corp.

Well's mission is to tech-enable health care providers. It does this by developing the best technologies, services and support available, which ensures health care providers are empowered to positively impact patient outcomes. Well's comprehensive health care and digital platform includes extensive front-office and back-office management software applications that help physicians run and secure their practices. Well's solutions enable more than 31,000 health care providers between the United States and Canada and power the largest owned and operated health care ecosystem in Canada with more than 148 clinics supporting primary care, specialized care and diagnostic services. In the United States, Well's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care and mental health.

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