Medical Facilities Corp. boosts 2016 revenue by 9.9% to $339.5M: 10 takeaways

Toronto-based Medical Facilities Corp. completed a series of acquisitions and increased its overall revenue in the fourth quarter and fiscal year 2016.

Here are 10 takeaways:

2016 results

1. Revenue rallied 9.9 percent to $339.5 million, an increase from $308.8 million in FY 2015.

2. MFC increased its surgical case volume by 7.6 percent, which played a significant part in boosting its revenue.

3. Income from operations fell to $68.1 million, an 8.9 percent decrease from $74.7 million in 2015. The company attributes the drop to changes in case type, government payers and higher operating expenses related to acquisitions.

4. MFC acquired an indirect 62 percent interest in Mishawaka, Ind.-based Unity Medical and Surgical Hospital, a physician-owned medical and surgical hospital.

5. The company also acquired 100 percent of Sioux Falls, S.D.-based Prairie States Surgical Center through the surgery center's subsidiary, Sioux Falls (S.D.) Specialty Hospital.

6. MFC boosted it cash available for distribution by 10.5 percent to $50.7 million and had a payout ratio of 69 percent, slightly less than 76.7 percent in FY 2015.

7. The company paid monthly dividends of C$0.09375 per share.

Q4 results
8.  MFC increased revenue from continuing operations by 20.3 percent to $108 million. This figure is up from $89.8 million in Q4 FY 2015.

9. MFC's income from operations totaled $25.3 million, marginally up from $25.1 million during the same quarter of FY 2016.

10. The payout ratio was 49 percent.

"We are pleased with the initial progress we have made with respect to acquisitions in 2016," said Britt T. Reynolds, president and CEO, MFC. "Looking ahead, continued revenue growth while controlling costs remains a key priority for our hospital leadership and executive team. As our network expands, so will our buying power as well as opportunities to share best practices among centers."

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