Medical Facilities (DR) investor relations material

Executive summary

• Achieved strong Q4 and full-year growth in facility service revenue, income from operations, and adjusted EBITDA, driven by higher case volumes and favorable case and payer mixes.

• Facility service revenue grew 3.2% year-over-year to $342.2 million, with Q4 revenue up 6.9% to $97.3 million.

• Income from operations increased 6.1% to $58 million for the year, with a 20.1% rise in Q4 to $20.9 million.

• Adjusted EBITDA rose 3.1% to $73.7 million for the year, with 12% growth in Q4 to $24.4 million.

• Completed significant shareholder returns through share repurchases and asset sales, reducing share count by 22%.

Financial highlights

• Full-year revenue grew 3.2% to $342.2 million; Q4 revenue up 6.9%.

• Q4 facility service revenue from continuing operations increased 8.6% year-over-year to $75.1 million.

• Net income from continuing operations was $34.6 million for the year, down 28.3% year-over-year.

• Q4 Adjusted EBITDA from continuing and selected discontinued operations was $24.4 million, up 12.0%.

• Annual dividend of C$0.36 per share, yielding 2.27% on year-end share price.

Outlook and guidance

• Monitoring site neutrality legislation and Medicare policy changes, with no current impact but ongoing evaluation.

• Evaluating use of net proceeds from asset sales, including further share repurchases or distributions to shareholders.

• Exploring further capital returns to shareholders via share repurchases, substantial issuer bids, or special distributions.