Toronto, Ontario (FSCwire) - Syncordia Technologies and Healthcare Solutions, Corp. (TSXV: SYN) (“Syncordia" or the “Company”) today reported financial results for the three and nine months ended December 31, 2017 the Company FY 2018 Q3, and compared to the 3 months ended September 30, 2017 the Company’s FY 2018 Q2.

All results are reported in thousands of US dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Q3 FY 2018 Financial Highlights

Financial Highlights

• Corporate costs decreased $65 or 15%, from $440 (after prior period adjustment) to $375

• Billing Solutions encounters increased 12%, or 4842 encounters.

• Revenue decreased $550 or 18%, primarily from lower revenue per unit at Billing Solutions and lower encounter volume at HIS

• Gross margin decreased by $503 to $1500, being 66% of revenue.

• Adjusted EBITDA before Syncordia Cloud and Corporate Costs was $630, a decrease of $503, or 40%.  This is being driven primarily by lower revenue per encounter at Billing Solutions and lower encounter volume at HSI.

• Cash and cash equivalents of $686.

Year-to-Date FY 2018 Financial Highlights

• Revenue from the RCM segment was $8,758.

• Adjusted EBITDA before Corporate and Syncordia Cloud segment costs was $2,832.

Q3 FY 2018 Business Highlights

• Billing Solutions encounters grew 12% over the prior quarter due to new client onboarding

Q3 FY 2018 Financial Results

Revenue from the RCM segment was $2,504, segmented between RCM transportation client billings of $925, RCM behavioural health client billings of $1,580.

Gross margin was $1,500 or 60% of revenue.

Key Performance Indicator

Billing Solutions grew 12% to 50,337 encounters in Q3 2018

HSI Encounters decreased 15% to 4,963 in Q3 FY 2018.

Paragon Encounters remained flat at 76,414 Q3 FY 2018.

Forward Looking Statements

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Syncordia or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and we assume no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

Cautionary Note Regarding Non-IFRS Measures

This press release contains references to “EBITDA,” “Adjusted EBITDA,” “Gross margin,” and “Adjusted EBITDA before Syncordia Cloud and Corporate costs.”

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) are non-IFRS measures used by management to provide additional insight into our performance and financial condition.  We believe that these non-IFRS measures are important as they provide an indication of the results generated by our RCM business prior to taking into consideration how those activities are financed as well as the other items listed in their respective definitions.  Accordingly, we are presenting EBITDA, Adjusted EBITDA and Adjusted EBITDA before Syncordia Cloud and Corporate costs in this MD&A to enhance the usefulness of our MD&A. We have provided below a reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA before Syncordia Cloud Corporate costs to the most directly comparable IFRS figures, disclosure of the purpose of the non-IFRS measure, and how the non-IFRS measures is used in managing the business.

EBITDA, Adjusted EBITDA and Adjusted EBITDA before Syncordia Cloud and Corporate costs are not calculations based on IFRS and should not be considered an alternative to operating income or net income (loss) in measuring the our performance, nor should it be used as an exclusive measure of cash flow, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash which are disclosed in the consolidated statements of cash flows. Investors should carefully consider the specific items included in our computation of these measures.

Management defines EBITDA as Earnings before Interest, Taxes, Depreciation and Amortization.

Management defines Adjusted EBITDA as Earnings before Interest, Taxes, Depreciation, Amortization, Transaction Costs, Fair Value Gains/Losses, Foreign Exchange Gains/Losses, Stock Based Compensation and Cash based Share Compensation Arrangements. Transaction costs include professional fees associated with business transactions.

Management defines Adjusted EBITDA before Syncordia Cloud and Corporate costs as Earnings before Interest, Taxes, Depreciation, Amortization, Transaction Costs, Fair Value Gains/Losses, Foreign Exchange Gains/Losses, Stock Based Compensation, Cash based Share Compensation Arrangements and costs of our Syncordia Cloud and Corporate segment. This metric is used to assess the performance of RCM and Syncordia Cloud segments.

Gross margin is a non-IFRS measure defined by management to reflect revenue less direct costs of sale, excluding amortization of intellectual property, customer lists, other amortizations and fair value gains/losses.

Syncordia Cloud and Corporate costs include sales and marketing, general and administrative and research and development, less amortization and depreciation, foreign exchange gains and losses, and stock-based compensation expense indexed to our share price.

About Syncordia Technologies and Healthcare Solutions, Corp.

We are a technology enhanced revenue cycle management (“RCM”) company focused on underserved niche segments of the healthcare industry. We are building a diversified software and services business by consolidating healthcare billing providers. Our growth strategy is to acquire RCM businesses with and without software and, improve their profitability by increasing revenues and operating efficiencies using our software, and in time, commercializing the Syncordia Cloud, our cloud-based software offering, to provide customer demanded turn-key solutions from a single provider and to address compelling RCM market opportunities. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Michael Franks

Chief Executive Officer

(647) 949-2663

mike.franks@syncordiahealth.com

Bartley Heath

Chief Financial Officer

(252) 521-7972

bartlley.heath@syncordiahealth.com

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