• Medical imaging firm Akumin Inc (TSX:AKU) has posted Q4 2019 and full year 2019 results
  • Total revenue grew nearly C$100 million, from $154 million in 2018 to $247 million
  • The company does not yet know the extent that COVID-19 will have on the business
  • Imaging centres in certain regions have been focusing specifically on patients with active cases of COVID-19
  • Akumin Inc (TSX:AKU) is up 5 per cent at $2.70 per share

Akumin Inc (TSX:AKU) has announced their 2019 results, with a C$100 million boost in revenue year on year.

COVID-19 has adversely affected some locations, but others in places of higher concentrations of cases have devoted themselves entirely to active cases of COVID-19.

EBITDA year on year went from $19 million to $66 million, with a big Q4 of 2019 bringing huge revenues in.

The company’s CEO, Riadh Zine, said the Q4 2019 performance was the company’s best on record.

“We generated, during the quarter, revenue of $77 million and Adjusted EBITDA of $20.2 million.

“This increase in cash is partly due to stability in total days of sales outstanding at 98 days, and a reduction in those outstanding sales days excluding attorney/auto payers to 66 days from 77 days as at September 30 2019,” he said.

The company reported an increase in revenue on the back of a big boost in sales to 1,583,000 up from 1,020,000.

That 55 per cent increase in Q4 was largely the reason for the huge boost in revenue for the quarter, and for the year.

Akumin use the Relative Value Unit to measure output within the business, as opposed to procedure volumes.

These RVUs are a standardised measure of value used in the US Medicare reimbursement formula for physician services which provides weighting to distinguish the complexity of different procedures.

The company believes the COVID-19 pandemic will adversely affect the company’s performance, how much so it cannot determine.

Shelter and isolation directives will almost certainly affect patients’ abilities to receive medical imaging, which will lead to a cut in volume of RVUs the company sells.

This could mean temporary or prolonged staff layoffs, reduced hours, closures of sites and other containment costs.

The company has committed to updating the market on these measures when and if they are made.

Akumin Inc (TSX:AKU) is up 5.8 per cent to $2.7 per share at 10:48am EST.

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