Premier Health Group Inc (CSE: PHGI) reported its third quarter financials Friday evening, revealing earnings of $2.1 million for the three month period ended September 30, 2019, and $4.4 million in revenues for the nine month period. Revenues were up 103% on a quarter over quarter basis, from that of $1.0 million in the prior period. Net loss for the period came in at $0.8 million, or $0.01 per share.
Revenues during the quarter were up significantly as a result of the recent acquisition of two cash flow positive pharmacies located within Metro Vancouver. Segmented revenue consists of $1.7 million from clinic services and pharmacies, while $0.4 million was generated through software as a service (SaaS) digital services.
After physician fees and the cost of goods sold, Premier Health posted a gross profit of $0.9 million, and a gross margin of 46% for the period. Operational expenses totaled out at $1.8 million, which included $0.8 million in wages and salaries, $0.4 million in share based compensation, and $0.1 million in office and administration expenses.
In terms of cash flow, total cash outflows from operating activities during the quarter amounted to $165,461, demonstrating the tight nature of Premier’s operation. Meanwhile, investing activities resulted in expenditures of $1.0 million, primarily related to the acquisition of two cash flow positive pharmacies located within Metro Vancouver. Lastly, financing activities resulted in a gain of $154,788 during the period, with the overall cash position decreasing $1.0 million during the period largely due to the aforementioned acquisitions.
Moving to the balance sheet, Premier Health has $2.1 million in subscriptions receivable as of September 30, the result of a financing that closed subsequent to quarter end. Accounts receivable and inventory both saw increases during the quarter, to $0.2 million and $0.7 million respectively as a result of increased operations at its clinics and Cloud Practice service, as well as the acquisition of pharmacies. Total current assets increased during the quarter from $1.3 million to $3.3 million.
Accounts payable meanwhile increased to $0.8 million, while some long term debt moved to the current liabilities section as a result of timing of debt being due. The closing of the pharmacy transaction also resulted in a lease liability moving onto the balance sheet, to the tune of $0.4 million.
Total current liabilities are currently listed at $1.7 million, resulting in a working capital of $1.5 million, and increase of 61% from the previous quarters figure of $0.9 million.
Subsequent to quarter end, Premier Health closed the previously mentioned $2.1 million financing. The firm also announced a binding letter of intent to acquire Livecare Health Canada, a telehealth pioneering firm that offers digital technologies to connect patients and health care practitioners.
Premier Health Group last traded at $0.32 on the Canadian Securities Exchange.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.