MCI Onehealth Reports Third Quarter 2021 Financial Results

November 15, 2021


  • Quarterly revenue of $12.6 million, up 29% over the same period last year, driven by higher patient volumes, growth in corporate health customers and two significant business acquisitions in 2021.
  • The company continues to make strategic acquisitions and investments, including the $7.1 million acquisition of the Polyclinic Group of Companies (“Polyclinic”) and participation in the Series 1 Seed financing round of ORO Health, Inc. (“ORO”) in Q3 2021.
  • Khure Health Inc. (“Khure”) signs its largest contract to date with a global top 10 pharmaceutical manufacturer.
  • All clinics once again operating as COVID-19 recovery continues.
  • Robust acquisition pipeline with several substantial opportunities under consideration.
  • Adjusted EBITDA(1) for the quarter was negative $1.8 million and net losses were $5.4 million.

TORONTO, Nov. 15, 2021 (GLOBE NEWSWIRE) -- MCI Onehealth Technologies Inc. (“MCI” or the “Company”) (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access to and quality of healthcare, today released its financial results for the three- and nine-month periods ended September 30, 2021.

“We are pleased with the momentum we have been able to build as the acquisition and integration of Khure Health and Polyclinic into our platform nears completion and the last of our clinics resume full operations coming out of the COVID-19 restrictions from earlier this year,” said Dr. Alexander Dobranowski, CEO of MCI. “We are continuing to focus on identifying strong, strategic acquisitions, while also turning our attention towards capitalizing on opportunities to create synergies between our existing and newly acquired businesses.”

A summary of MCI’s financial and operational highlights for the quarter are set out below, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on MCI’s SEDAR page at Financial measures described as “Adjusted” in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.

Third Quarter 2021 Financial Highlights

Significant financial highlights for MCI during the third quarter of 2021 included:

  • Revenue Growth Year-on-year: Revenue for the third quarter of 2021 increased 29% over the same period in 2020, driven by the ongoing recovery of publicly-insured health services, ongoing growth from corporate health services, and revenue contributed by recently acquired businesses. Total revenue for the three months ended September 30, 2021 was $12.6 million, compared to total revenue of $9.8 million in the comparable period in 2020. Revenue contributions from 2021 acquisitions of Khure and Polyclinic accounted for 44% of the growth, and their contributions are expected to continue to increase as the businesses are integrated, with revenue synergy opportunities already being realized in the fourth quarter of 2021.
  • Increased Patient Volumes:   Patient volumes grew approximately 31%, year-on-year, excluding increases from acquired businesses in 2021. Patient volumes continued to improve despite continuing COVID-19 restrictions as patients and physicians become more comfortable with virtual channels and pent-up demand for health services continues to grow.

  • Growth in Corporate Customers: The Company added 27 new corporate health customers in the third quarter of 2021, including a major insurance company for which MCI is now coordinating national appointments for plan members, and has become a preferred vendor for Destination Toronto, providing pre-travel concierge travel testing programs and other services.
  • Liquidity: Cash was $9.98 million at the end of the quarter, compared to $0.89 million in the same quarter last year, ensuring short- and medium-term capital requirements are met while the Company continues to pursue new strategic acquisitions and to develop and implement the Company’s data-driven healthcare initiatives.
  • Adjusted EBITDA: Adjusted EBITDA(1) for the quarter was negative $1.8 million, as compared to an Adjusted EBITDA of $2.1 million in the same period last year.
  • Net Losses:   Net losses for the quarter were $5.4 million, as compared to a gain of $0.9 million from the same quarter in the previous year, reflecting increased expenses relating to expansion of personnel, share-based compensation and acquisition-related expenses as the Company continues to focus on rapid growth and expansion.

Third Quarter 2021 Operational Highlights

Significant operational highlights for MCI during the third quarter of 2021 included:

  • Acquisition of Polyclinic: On July 30, 2021, MCI acquired an 80% interest in Polyclinic for total consideration of $7.1 million. Polyclinic is comprised of The Quit Clinic Inc., Executive Medical Concierge Canada Ltd. and Canadian Phase Onward Inc. Polyclinic provides onsite integrated health services including primary care, specialist care, concierge medicine, lab services, and an in-house clinical research organization. The details of the acquisition are set out in MCI’s press release dated July 30, 2021.
  • Khure Collaborations and Strategic Partnerships: Khure has secured strategic partnership agreements with 2 of the top 4 electronic medical record companies in English-speaking Canada, which will help remove technical barriers and increase the availability of Khure's AI-enabled rare disease clinical intelligence platform for more than 15 thousand physicians across the country. As part of a recently signed commercial collaboration, Khure’s platform is now included in the product and service offerings of one of Canada’s leading providers of prescription level data, health technology services and advanced analytics to the pharmaceutical industry.
  • Commercial Partnership with Acorn Biolabs Inc. (“Acorn”): The Company’s commercial partnership with Acorn, a Toronto-based biotechnology company, continues to roll-out, with Acorn’s stem-cell collection and cryostorage services being marketed across the Company’s channels and Acorn performing follicle extractions on designated days each month at three MCI clinics so far.
  • Investment in ORO: On July 14, 2021, MCI invested $250,000 to purchase an interest in ORO, an innovative, dermatologically-focused telehealth and virtual health care service provider, through the acquisition of Series 1 Class Seed Preferred Shares of ORO.


MCI expects to accelerate total company revenue growth in the first half of fiscal 2022 as it executes its strategic plan on multiple fronts including:

  • Organic growth of government insured health services from its omnichannel network of clinics, telehealth and the MCI Connect virtual platform.
  • Continued organic growth in health services provided to corporate customers, as it expands its customer base and increases the number of available service offerings.
  • New technology partnerships and strategic acquisitions to accelerate its technology roadmap.
  • Acquisitions of specialty clinics to expand its health service offerings and enter new markets by leveraging technology to deliver more services to its large and growing patient and physician base.
  • Exploration of commercial relationships that leverage expressed interest in Khure’s AI-driven clinical evidence around rare diseases to accelerate patient recruitment for clinical trials, accelerate patient access to treatment, support regulatory decision-making through the application of real-world evidence and set the foundations for new AI technologies.

Conference Call Details

MCI will hold a conference call to discuss progress on its key strategic initiatives and financial results for the third quarter of 2021, on November 15, 2021 at 5:30 pm ET. Participants are encouraged to access the call at least 10 minutes prior to start.

Date:Monday November 15, 2021
Time:5:30 pm (ET)
Duration:60 minutes
Dial-in Canada/US:(833) 540-1153 (Toll-free)
 (918) 922-6528 (International)
Conference Call ID:5288331
Webcast link:


Selected Unaudited Financial Information
(In thousands of dollars, except percentages and per share amounts)

 Quarter ended Period over Nine months ended Period over 
 September 30 period Change September 30 period Change 
 2021 2020 $ % 2021 2020 $
 ($ in thousands except percentages)
Revenues$ 12,642 $ 9,837 2,805 29 $ 33,881 $ 27,590 $ 6,291 23 
Cost of sales9,227 6,790 2,437 36 23,820 19,077 4,743 25 
Gross profit3,415 3,047 368 12 10,061 8,513 1,548 18 
Research and development

General and administrative
279 - 279 NM 970 - 970 NM 
Sales and marketing988 27 961 3,559 2,145 90 2,055 2,283 
General and administrative7,478 1,582 5,896 373 18,207 6,672 11,535 173 
 8,745 1,609 7,136 444 21,322 6,762 14,560 215 
Finance costs131 135 (4)(3)339 415 (76)(18)
Income from investments9 - 9 NM (3)- (3)NM 
Gain (loss) On sublease- - - NM - (10)10 (100)
 140 135 5 4 336 405 (69)(17)
Income (loss) before taxes(5,470)1,303 (6,773)(520)(11,597)1,346 (12,943)(962)
Income taxes(32)366 (398)(109)(867)314 (1,181)(376)
Net Income (loss)(5,438)937 (6,375)(680)(10,730)1,032 (11,762)(1,140)
Adjusted gross profit (2)3,573 3,047 526 17 10,325 8,513 1,812 21 
Adjusted gross margin (2)28.3% 31.0%   30.5% 30.9%   
Adjusted EBITDA (1)(1,824)2,190 (4,014)(183)(3,186)3,973 (7,159)(180)
Adjusted EBITDA margin (1)(14.4%)22.3%   (9.4%)14.4%   
Weighted average number of        
Share outstanding: Basic and diluted49,540,229 38,004,750   47,630,393 38,004,750   
Net income (loss) per share -Basic and diluted$ (0.11)$ 0.02   $ (0.23)$ 0.03   

(1), (2) Financial measures described as “Adjusted” in the table above are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies, please see Non-IFRS Financial Measures below for more information.

Selected Statement of Financial Position Data

 September 30,
 December 31,
Cash$ 9,984 $ 894 
Accounts receivable6,157 3,637 
Net investment in subleases2,115 1,685 
Related party loan- 1,210 
Loan receivable290 - 
Accounts payable and accrued liabilities(7,700)(6,998)
Lease liabilities(15,356)(13,833)
Other liabilities(130)80 
Non-controlling interest redeemable liability(1,305)- 
Liability for contingent consideration(5,438)- 

Non-IFRS Financial Measures

The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled “Non-IFRS Financial Measures” in the Company’s management discussion and analysis for the quarter ended September 30, 2021, available on MCI’s SEDAR page at, for a detailed explanation of the composition of these measures and their uses.

(1) The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three- and nine-month periods ended September 30, 2021 and September 30, 2020:

 Quarter ended Nine months ended 
 September 30 September 30 
 2021 2020 2021 2020 
 $ in thousands
Total Revenue$ 12,642 $ 9,837 $ 33,881 $ 27,590 
Net income (loss)(5,438)937 (10,730)1,032 
Add back (deduct)    
Depreciation and amortization1,329 752 3,012 2,222 
Finance charges131 135 339 415 
Income from investments9 - (3)- 
Income taxes expense (recovery)(32)366 (867)314 
Gain (loss) on sublease contracts- - - (10)
Share-based payment expense1,722 - 4,370 - 
Expected credit loss loan310 - 310 310 
Acquisition related legal expenses145 - 383 - 
Adjusted EBITDA(1,824)$ 2,190 (3,186)$ 3,973 
Adjusted EBITDA Margin(14.4%)22.3% (9.4%)14.4% 

(2) The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to revenue and cost of sales for the three- and nine-month periods ended September 30, 2021, and September 30, 2020:

 Quarter ended Period over Nine months ended Period over 
 September 30 period Change September 30 period Change 
 2021 2020 $ % 2021 2020 $ % 
 ($ in thousands except percentages)
Revenue12,642 9,837 2,805 29% 33,881 27,590 6,291 23% 
Cost of sales9,227 6,790 2,437 36% 23,820 19,077 4,743 25% 
Depreciation and Amortization(158)- (158)NM (264)- (264)NM 
 9,069 6,790 2,279 34% 23,556 19,077 4,479 23% 
Adjusted gross profit3,573 3,047   10,325 8,513   
Adjusted gross margin28.3% 31.0%   30.5% 30.9%   

About MCI

MCI is a healthcare technology company focused on empowering patients and doctors with advanced technologies to increase access, improve quality, and reduce healthcare costs. As part of the healthcare community for over 30 years, MCI operates one of Canada’s leading primary care networks with 25 clinics, serves over one million patients annually and had over 200,000 telehealth visits last year. MCI additionally offers an expanding suite of occupational health service offerings that support a growing list of over 500 corporate customers. Led by a proven management team of doctors and experienced executives, MCI is executing a strategy centered on acquiring technology and health services that complement MCI’s current roadmap. For more information, visit

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Forward Looking Statements

Certain statements in this press release, constitute “forward-looking information” and "forward looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements include statements with respect to projected revenues, earnings, growth rates, targets, revenue mix, product plans, use of proceeds, new business ventures, commercial arrangements and potential acquisitions, as well as MCI's future growth, strategic transformation plan, results of operations, performance and business prospects and opportunities. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “aim”, “strategy”, “targets” or “believes”, “for use in”, “growth”, “expansion”, “to pursue”, “to develop”, “future”, “later” or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “occur”, “continue” or “be achieved”, and other similar expressions, identify forward-looking statements. Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by MCI as of the date of such statements, are outside of MCI's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: MCI's ability to achieve its growth strategy; the demand for MCI's products and fluctuations in future revenues; the availability of future business venture, commercial arrangement and acquisition targets or opportunities and MCI’s ability to consummate them; MCI’s ability to effectively integrate existing and future acquisition targets into its platform; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; trends in customer growth; sufficiency of current working capital to support future operating and working capital requirements; the stability of general economic and market conditions; currency exchange rates and interest rates; equity and debt markets continuing to provide MCI with access to capital; MCI's ability to comply with applicable laws and regulations; MCI's continued compliance with third party intellectual property rights; the anticipated effects of COVID-19; and that the risk factors noted below, collectively, do not have a material impact on MCI's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.

Known and unknown risk factors, many of which are beyond the control of MCI, could cause the actual results of MCI to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Such risk factors include, but are not limited to those factors which are discussed under the section entitled “Risk Factors” in MCI's final prospectus dated December 29, 2020 and in MCI’s annual information form dated March 31, 2021, each of which is available under MCI's SEDAR profile at The risk factors are not intended to represent a complete list of the factors that could affect MCI and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. MCI disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.