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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