Medical Facilities Corporation Reports Third Quarter Results

PR Newswire
Today at 12:00pm UTC

Medical Facilities Corporation Reports Third Quarter Results

Canada NewsWire

TORONTO, Nov. 12, 2026

TORONTO, Nov. 12, 2026 /CNW/ -- Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the three-month and nine-month periods ended September 30, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q3 2026 Highlights
(For continuing operations1, excluding non-controllable, non-cash corporate level adjustments related to share-based compensation plans, compared to Q3 2025)

  • Facility service revenue grew 9.8% to $65.9 million.
  • Income from operations increased 17.3% to $11.2 million.
  • EBITDA2 increased 13.5% to $14.1 million.
  • Completed its normal course issuer bid ("NCIB"), fully utilizing the purchase limit of 1,805,324 common shares, including 1,695,324 common shares purchased during the nine months ended September 30, 2026.
  • Consolidated cash balance of $70.8 million, including a corporate cash balance of $60.7 million, at quarter end.

"We had a strong third quarter, with favourable case and payor mixes driving growth in facility service revenue and profitability," said Jason Redman, President and CEO of Medical Facilities. "We fully utilized our NCIB by July 13, 2026, repurchasing 1,695,324 common shares for a total of $21.5 million in the first nine months of the year. Finally, we ended the quarter with a very solid balance sheet, including a strong cash position and no corporate debt."

Financial Results

Financial Results from Continuing Operations

For the three months ended

September 30

For the nine months ended

September 30

(thousands of U.S. dollars, except per share amounts
and where otherwise noted)

2026

2025

%

change

2026

2025

%

change

Facility service revenue

65,871

60,007

9.8 %

196,062

179,061

9.5 %

Operating expenses, before non-cash share-based
compensation

54,719

50,496

8.4 %

162,563

149,936

8.4 %

Non-cash share-based compensation charges
(income)

(833)

(304)

(174.0 %)

(47)

11

(527.3 %)

Income from operations

11,985

9,815

22.1 %

33,546

29,114

15.2 %

Finance costs (changes in values of derivative
instruments and gain/loss on foreign currency)

(4,437)

(4,342)

(2.2 %)

(6,850)

(349)

(1,862.8 %)

Finance costs (net interest expense)

182

449

(59.5 %)

609

770

(20.9 %)

Income tax expense

3,128

2,722

14.9 %

7,883

3,792

107.9 %

Net income3 from continuing operations

13,112

10,986

19.4 %

31,904

24,901

28.1 %

Earnings per share attributable to owners of
the Corporation







Basic

0.52

0.38

36.8 %

1.06

0.64

65.6 %

Fully diluted

0.28

0.18

55.6 %

0.68

0.56

21.4 %

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.

Reconciliation of Net Income from Continuing
Operations to EBITDA2

For the three months ended

September 30

For the nine months ended

September 30

(thousands of U.S. dollars, except where otherwise noted)

2026

2025

%
change

2026

2025

%
change

Net income from continuing operations

13,112

10,986

19.4 %

31,904

24,901

28.1 %

Income tax expense

3,128

2,722

14.9 %

7,883

3,792

107.9 %

Finance costs (income)

(4,255)

(3,893)

(9.3 %)

(6,241)

421

(1,582.4 %)

Depreciation and amortization

2,959

2,919

1.4 %

8,827

8,790

0.4 %

EBITDA

14,944

12,734

17.4 %

42,373

37,904

11.8 %

 

Distributable Cash Flow

For the three months ended

September 30

For the nine months ended

September 30

(thousands of dollars, except per share amounts and where
otherwise noted)

2026

2025

%
change

2026

2025

%
change

Cash available for distribution2 (C$)

4,219

4,698

(10.2 %)

15,386

18,950

(18.8 %)

Distributions (C$)

1,455

1,651

(11.9 %)

4,494

5,100

(11.9 %)

Distributions per common share (C$)

0.090

0.089

1.1 %

0.265

0.256

3.5 %

Payout ratio2

34.5 %

35.2 %

(2.0 %)

29.2 %

26.9 %

8.6 %

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 2.38% on the September 30, 2026, closing price of C$15.10 per common share.

On September 30, 2026, MFC had consolidated net working capital of $67.4 million and cash and cash equivalents of $70.8 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 nine months ended September 30, 2026, will be filed on SEDAR+ at www.sedarplus.ca 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 third 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/4jPNenx to receive an instant automated call back.

A live audio webcast of the call will be available at https://app.webinar.net/OezPkVerJdx. 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 nine-month periods ended September 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