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spk06: Thank you all for standing by, and welcome to the MCI One Health Technologies, Inc. Second Quarter 2021 Results Conference Call. All lines will be placed in listen-only mode until the question and answer session of today's conference. To ask a question over the phone by that time, you may press the star key followed by the number one. I'll now turn the call over to your host, Alex Dobrynowski. Sir, you may now begin.
spk04: Hi, good afternoon and welcome everyone to MCI One Health's 2021 Second Quarter Financial Results Conference call. I am Alexander Dobronowski, Chief Executive Officer and joining me today on the call is Scott Nirenbierski, our Chief Financial Officer and Fernando Massolin of Investor Relations. We truly appreciate everyone for joining today and we hope that everyone has continued to remain safe and healthy and that you've also had some time to enjoy the summer. Our financial results press release is now available online, and I encourage everyone to download a copy of our interim second quarter consolidated financial statements from CDAR.com. Other than historical performance, our discussion today may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the day of this presentation. These forward-looking statements involve risks both known and unknown, assumptions and other factors, many of which are outside of MCI One Health's control that may cause the actual results, performance, or achievements of MCI One Health to differ materially from the anticipated results or achievements implied by such forward-looking statements. I would like to start today's call by providing some commentary on the quarter and also provide key highlights. I would then like to go into further detail on our vision, our strategy, expand on our plan of execution, and I would also like to touch on a few points with regards to innovation, as our innovation roadmap is critical to enabling us to execute on our mission. After which, our CFO, Scott Nirenberski, will provide a financial summary of our second quarter 2021 results, plus add deeper detail on the overall outlook of each of our core business functions. After this, we will have a question and answer period. With regard to this quarter's key highlights, I'm very pleased to share that MCI One Health continued off of our strong first quarter, and we've had a very productive Q2. And, of course, we remain ahead of schedule on execution. Apart from achieving strong quarterly revenue, we also completed a number of important objectives that in combination continue to accelerate our clinical, technology, and innovation roadmaps to expand We are generating our first technology and clinical data-driven revenues supported by our BrightOS ecosystem and led by our acquisition from Q1 Cure Health. This is in the rare and complex diseases space, and further to this, there are material opportunities to apply the technologies we have developed beyond the rare diseases space into clinical trial recruitment, complex disease diagnostics, and furthermore, there's a significant opportunity to scale both domestically and internationally This remains one of our key areas of focus moving forwards. Further to this, with regards to the three investments we completed last quarter, all in companies that complement our strategy and also open the door to exciting commercial partnerships, we continue to refine our relationships with these partners so we can commence the next and productive phases ahead in the coming quarters. These investment partners include Acorn Biolabs, a genomic data and cryo storage company, Aerial Precision Medicine, a technology company that helps predict disease and disease outcomes, and Regen Scientific, a clinic that specializes in delivering services at the forefront of regenerative and personalized medicine, a company founded by Dr. Bob Francis, the founder of MedCan, who we announced has also joined our board. From a revenue perspective, I'm very pleased to share that MCI One Health completed the second quarter with solid results. We continue to achieve strong quarterly revenue With revenue recovery from the pandemic pressure experience in 2020, year-on-year we grew 51%, with overall patient visits up nearly 78%. A theme that has continued with regards to enabling our revenue recovery has been the ongoing adoption of telehealth and virtual care, whereas our doctors completed over 395,000 telehealth virtual care consultations since the start of the pandemic, with over 62,000 visits completed in Q2 2020. now still exceeding 34% of all patient consultations with considerable growth and adoption of our patient experience platform, MCI Connect. And on the topic of MCI Connect, our technology team has added a host of features this last quarter, both improving the patient experience and also helping to streamline the workflow of the physicians and clinical staff. Further to our revenue recovery, Our corporate health services continue to undergo exceptional organic growth in Q2. Revenue from this high margin channel grew nearly 80% in the second quarter, continuing the exciting and material trajectory of growth. I'd also like to make note that our customer base here has grown to now nearly 500 corporate customers, which includes 70 insurance companies, and many of these customers are Fortune 500 companies. This is continued and substantial progress on this front. I'd like to make a few comments on our clinical care services channel. As we've all witnessed and experienced, our healthcare system has been under considerable stress and strain. The ongoing pandemic has presented an entire spectrum of challenges requiring not just the accelerated adoption of technology like virtual care, but an entirely new approach to problem solving in healthcare. Now, a very important segue of the pandemic that is often overlooked is the fact that there is just an extraordinary amount of clinical services, procedures, physical examinations, surgical operations, and the like that are waiting to happen. A sizable demand that is growing by the day and was highlighted by the Ontario Medical Association a few months ago. This backlog of patient care needs to be addressed, and community networks, physicians, and staff will be playing an integral part in helping MCI One Health is uniquely positioned to provide this care and help with this demand and support the other healthcare networks we rely on, such as our hospitals. We are prepared to continue to service our patients to make sure all our patients that visit us virtually have access to in-person continuity of care that maintains an excellent standard of quality, as our expectations are that into the future, demand will be high for clinical care through virtual and digital channels, but also, and very importantly, via in-person and motor contact. There are just so many health issues and concerns that have been waiting in the wings, this pent-up demand that cannot be dealt with singularly over tele or virtual care. The human touch is required. Now, changing tack now, I'd like to make a few comments with regards to our vision, including some important highlights on innovation. NCI One Health is a healthcare technology company, and our mission is to accelerate the time to diagnosis. and in turn, make healthcare more accessible, affordable, and ultimately safer. We are differentiating ourselves by our focus on precision medicine, or in other words, how we provide our patients with personalized medicine and guide their care into the future with personalized intelligence. Quite simply, we have two main objectives. The first is to continue to build what we call a high-performance network, whereas we have added specialists and diagnostic services corporate and executive health services to our already established foundation and critical mass of primary care. Now, having this deeper ecosystem allows us to achieve our second main objective, and that is to continue to build a much richer and deeper patient profile for each of our patients, something that I call the clinical data flywheels. By having a richer patient profile, this is how we actually can advance care to be truly personalized and truly intelligent. And then we can continue to do the amazing things that are possible with precision medicine technologies, such as catching disease earlier or even before they begin. From an execution perspective, we have four initiatives that are happening in parallel. We are continuing on to deliver high-quality clinical care services and fully recovering from the effects of the pandemic. and in turn continue to organically grow our health services, telehealth, and our MCI Connect platform, truly building this high-performance network. The second is to continue organic growth of our corporate health services. The third is to tangibly establish synergies with our strategic investment partners that I mentioned previously and capture revenue through these channels. And the fourth is to continue to grow our precision medicine initiatives, both through supporting our acquisition of pure health and through organic means. With regards to our business development efforts, we are focused on adding healthcare services that further enrich and complement our network and on technology that is directly beneficial to our patient and doctor population and that accelerates our precision medicine roadmap. In terms of innovation, I'm proud to share that we've added an exceptionally capable individual to our C-suite, Salima Khimji, as our Chief Innovation Officer. Salima brings with her a rich background of legal expertise, global perspective, and experience building and scaling innovative technologies into complex and dynamic systems. She's going to help me to continue to shape our strategy as we accelerate on the current path of growth and transformation. We are very excited that Salima has joined our ranks. Now, subsequent to our second quarter, we've continued to execute our strategic plan, and I do have a number of exciting and significant developments to share. First and foremost, we have closed our acquisition of the Polyclinic Group of Companies, establishing now a hub or a flagship, so to speak, clinic group of our entire network. The Polyclinic Group is a specialist in primary care medical practice that also has a clinical research organization and concierge medical channel. Dr. Liu and Leslie Cleum, the founders, have built a truly innovative healthcare model in the community that optimizes patient care, access, quality, and value. This is a beacon in our high-performance network. The synergies for our patients across our entire clinic group are substantial, and we'll be focusing considerable resources to develop these. Secondly, we've also made an investment in oral health. a telehealth services provider with true artificial intelligence capability, especially centered around dermatology diagnostics. This is via their Dermago platform. This investment now adds yet another compelling precision medicine offering to our capabilities to benefit doctors and patients within our network and beyond. I'd like to turn the call now over to our CFO, Scott Nirenbierski, who will review the financials of the second quarter of 2021.
spk05: Thank you, Alex, and thanks, everybody, for joining this afternoon. I'd like to provide a summary of the highlights on the P&L revenue expenses, EBITDA, and we'll touch upon the balance sheet and some of the highlights surrounding the acquisitions that we did this quarter and the subsequent events. To start with, revenue for the quarter was $11.2 million. It was up 53% year-on-year. And it really was driven by recovery in the base business itself with notable strength in the clinics that Alex alluded to. And it's simply a matter of there's a huge pent-up demand for in-person visits, things that simply can't be addressed, you know, virtually or by telephone. It's also a sign to some degree that, you know, the market is thawing and patients and to some degree physicians are feeling a little more comfortable, you know, with in-person visits. because it's absolutely necessary for the continuity of care that's out there. Second of all, the corporate channel had another fantastic quarter, reaching a record for us over $1.8 million. We added more customers during the quarter, and total customers are almost 500 now in that channel, including 70 insurance companies who are now feeding the channel. So we're quite thrilled with that. Overall, CURE itself began to contribute during the quarter and had a small amount of revenue from it, so we were pleased to see our first actual digital revenues coming through in that channel. Overall, if you look at our objective of reducing the dependence on publicly insured services, publicly insured services for the quarter represented about 80% of revenue versus 87% in the year-ago period for the six months government-insured services were 82% of revenue versus 91%. So we continue to make progress, as we've talked about in the past with you on that. In terms of the physician fees and that, those are largely determined, as you know, by the split between the clinic management practices as well as the physicians, but pretty constant, a little bit maybe better than we've seen in the prior quarter in Q1, but quite stable, quite frankly. Turning to expenses, We saw the opportunity with both corporate health and CURE to accelerate some spending there, which we took on because there's just so much growth available on those channels that we wanted to make sure that we invest in advance of that. And so during the quarter, we deployed what we call our corporate health hub, which is to really feed the corporate customer channel. and support the growth of that channel. So we're really, you know, in past it's been a small team of people, plus we service it through the clinics. What we're doing is really expanding that team that services directly to corporate customers. And so we spent on that. We also, as Alex alluded to, talked about CURE is no longer just about servicing rare diseases and finding those diseases, but the technologies actually can find other things as it interrogates the EMR. So there's more revenue opportunity there as well. And what we did there is, you know, we had made a commitment to them to spend money for working capital to support the growth of the business. We saw an opportunity to actually spend on that, plus develop some of the new opportunities and accelerate the move of CURE from on-premise to cloud to support growth, not just towards the end of this year, but into 2022. So we accelerated some R&D spending there as well. Finally, in terms of optimizing and modernizing MCI's infrastructure, we continue to spend money in that direction in terms of HR and IT, and again, to bolster the infrastructure to support all the growth initiatives, as well as the base business. So EBITDA for the quarter came in at minus $691,000, excluding the acquisition expenses for the acquisitions that we did during the quarter. In terms of the balance sheet, we ended the quarter with about $19.7 million in cash pre the Polyclinic acquisition, which we spent $5.4 million in cash on that. We still feel extremely comfortable with the cash levels that we have at the company, including the investment initiatives that we are undertaking that I just alluded to. So we're quite fine on cash to execute our plan, as we had said, all the way through 2022 and beyond. The other items on the balance sheet that I would note is we've cleaned it up a little bit in terms of related party obligations by eliminating them all. In terms of Regen, we are actually picking that up as an investment in equity on the balance sheet, and we actually pick up our equity in their net income through our P&L. And that's really by virtue of the fact that through our shareholder agreement in owning our 9% stake in Regen, it was determined that we do exert significant influence over them, and that's why we're picking it up through our financial statements. In terms of our bank credit facilities, we continue to have access to 1.75 million revolving facilities, none of which has been used. So we do have also additional flexibility through the banks. On the share capital, we ended the quarter with 49.1 million shares outstanding, including all the acquisitions and everything that we've done so far. We've repurchased approximately 161,000 shares at an average purchase price of 280 under our automatic share purchase plan under our NCIB. Let me turn now to subsequent events. As Alex mentioned, we invested $250,000 in oral health equity, and we can talk more about that with you during Q&A or later. And then our biggest acquisition so far and a key, you know, central building block to the whole strategy was the acquisition of the Polyclinic Group of Companies. There are four companies there. The Quick Clinic, which has 50 specialists on board, including full cardio and primary care. Second is the Executive Medical Practice, which is a subscription-based, you know, on-demand service, which we're pleased to announce and excited to grow. The third is a clinical research organization called Canadian Phase Onward, which will take us into the field of research that's extremely high-margin business. and has a very similar customer base to Cure, so there's lots of cross-selling opportunities there. And then finally, the North York Pulmonary Function Center, which is a pulmonary function testing clinic, which will add to our cadre of services that we can offer. The NYPFC acquisition isn't quite complete yet because we're awaiting approval from the Ministry on the license transfer to us, but we anticipate no issues with that. It's just working its way through the government process. You know, I'm pleased with the overall quarter. I think a few words on the outlook. We would expect that the, you know, continued growth in the base business and the recovery off of the COVID lows of 2Q last year, that's continuing from everything we see this quarter. The visit counts continue to grow up. We're almost back to where we were pre-COVID. on the number of patient consults. So we're quite pleased about that. And I think it's a testimony to the omnichannel presence. As Alex talked about earlier in the call, you can't just do everything virtually. You need the clinics. And the fact now is the ability for both channels to support one another. And we want to feed that. We want to optimize it because there's a lot we can do going forward to really optimize revenue and optimize mix and optimize profitability around that. The second of all, on the corporate health side, we continue to expect growth there. Yes, I know it will get the question. COVID certainly helps it due to the screening programs, but there's a lot of new services that we're offering that are quite important. And, you know, through our help, the hub that I discussed earlier, it's just going to give us a lot more capability to service our corporate customers and do so quite efficiently. So we're very pleased with that as well. the growth there. And then, of course, CURE, where you've got both the existing business in rare disease screening, and then you have these new revenue opportunities. And with CURE, it's really more about, we're not demand limited. We're really almost capacity constrained there by the ability to onboard doctors that you need for the clinical trial. So, We're accelerating the deployment of getting more physicians on board, both from MCI but also external to MCI, to facilitate these large projects. So we're really thrilled with that as well. I think I'll stop there maybe and turn it back to Alex for his comments before we open it up to Q&A.
spk04: Yep. Thank you, Scott. With regards to the future, By extension to some of Scott's comments, our outlook remains highly positive across all our business units. Many of the critical elements that are required to really strengthen our position have actually already come together or are well underway. So we expect to accelerate total company revenue growth in the second half of fiscal 2021 as we execute on this plan. With the accomplishment of our recent acquisitions and now with our first technology and data-driven revenue, our transition from a traditional care services delivery model to one that is more personalized, holistic, and more importantly, data and technology driven is well underway. It really is time for community care to be less reactive and way more preventative. And there is a need now more than ever for real-time data and real-time clinical decision support. And that is why at MCI One Health, we are even building this high-performance network that truly delivers this personalized medicine with technologies that deliver personalized intelligence. So to quickly summarize, we continue to have a very strong balance sheet. We have a growing base of high margin revenue, accelerating growth of corporate health services, growing technology revenue channel, and a very exciting pipeline of business development opportunities. MCI One Health remains firmly on track to achieve our goals in both in the short term and into the next fiscal year. And lastly, I'd like to thank everyone for joining us on this call today and thank our investors and shareholders for all their ongoing support. And of course, I'd like to thank my executive team, management teams, and all of our employees and clinical staff for their continued efforts. I'd like to now open the floor to any questions. Thank you.
spk06: Thank you, speakers. Participants, we will now begin the Q&A session. To ask a question over the phone, you may press the star key followed by the number one from your telephone keypads. To withdraw your request, you may press the pound key. Again, that's star one to ask a question or the pound key to withdraw your request. Speakers, your first question is from the line of Rob Goff of Echelon. Your line is now open.
spk03: Thank you very much for taking my question, and congratulations on the quarter, guys. Thanks, Rob. Thank you, John. Could you talk perhaps to the enterprise side of things in terms of looking into that 44% growth? Is that more associated with geographic expansion or the national rollout? Or to what extent was it the initiatives with the insurance companies?
spk05: Yeah, it's really national is only just beginning. it's really growth in the base business of the, probably sound like a broken record, adding more customers, adding more services into those customers. So we're there. The national stuff has begun and it's definitely coming in now. And also, you know, adding Calgary to it too, right, where we have a nice presence there traditionally on the clinic side. So that, you know, those things are now just starting to ramp, which is why we, you know, we feel good about talking about growth in that channel.
spk03: Okay, thank you. And could you perhaps talk further on the revenue traction at CURE and your data monetization expectations or plans?
spk04: Yeah, sure, Rob. So Cure Health has built a platform that assists in screening patients for rare diseases and can initiate these screening projects on behalf of others and third parties, et cetera, pharma companies, life science companies. And Cure Health, we've layered it in into the Bright Health, the Bright OS ecosystem. and to further both bolster its development and functionality, and then also bolster its growth, right? And the BrightOS system is built so that we can not only help to scale technologies like we've layered in from PureHealth, but also research initiatives, right, from now the clinical research organization, as we mentioned, that we've acquired through Polyclinic, and then a number of other initiatives in both disease diagnostics and disease identification. So Cure Health, as Scott mentioned, is contingent, its growth is contingent on growth of participating physicians. And during the pandemic, it's been, you know, as we know, all healthcare systems, et cetera, have been very stressed, right, under a great deal of stress. So You know, the physician onboarding has been a little bit slower than we anticipated, but it's coming along nicely. And the pipeline of projects has remained, you know, as expected or actually has been growing, has been expanding. So we're trying to layer in these projects basically as fast as we can.
spk05: Yeah, the other thing I would add to that too, Rob, is with the acquisition of the Polyclinic, right, the research organization there, It's amazing, almost uncanny, the overlap in customer base. We have the large pharma, you know, between CURE and CPO, as we call it, Canadian Phase Onward. And so they've even worked a little bit together in the past, but there's a lot of opportunity to cross-sell services as well as, you know, the algorithms to discover the rare diseases there. between the two organizations. And I think that presents another layer of growth that, frankly, we haven't talked about in the past, but is there for us if we can manage it appropriately. So we're actually pretty excited about that. And it goes both ways, right? CPO has been operating for, gosh, well over 10 years now. And they've dealt with big pharma for a while. They've also dealt with large, even consumer products companies, food companies doing supplements, nutritional, things like that, testing for that. So don't just think about, you know, classical pharma testing, but it's also, you know, in the area of health, wellness, nutritional, things like that, where there's opportunities to cross sell. The last thing I'll comment on with CURE is, if we can accelerate this move to the cloud on the technology, A, it will operate more efficiently, and B, it will enable us to onboard customers faster and service them faster and lead to a path where you can start talking about subscription-style revenues for that business, which, you know, we're all anxious, so we would love to get to, where you'd essentially have, you know, you've got enough business going on with a, particular client at any given point in time that it makes, frankly, more sense to do a subscription than it is to do these, you know, one-off, okay, go study XYZ, right, and get paid for that.
spk03: Okay, thank you. And if I may put one further question in. You did talk to the level of omni-channel patient visits almost back to pre-COVID levels. That was omni-channel, wasn't it?
spk05: Well, pre-COVID, it was really not omni-channel. Yeah, it was clinics. So now the combined, you know, we were below that even with adding tele and virtual, right? Now we're getting, you know, very close to that again. And it's going to be, it'll be volatile, I think, over the next few quarters. It's just hard to tell how this will play out, but I think I've talked to you in the past about the fact that you should see a resurgence in the clinics if for no other reason than there's, you know, the pent-up demand off in-clinic visits that people just need to have, right, because there are certain things that simply can't be delivered in the virtual or telechannel. But we're seeing, we're definitely seeing the total, you know, the volume really increased in the clinics during the second quarter. It continues to increase this quarter, but But, you know, tele and virtual are also, you know, there's kind of these swings back and forth in any given month between the two. But the most important piece is the overall total continues to grow and recover. Perfect. Thank you.
spk06: Thank you, Rob. Next question is from the line of Doug Taylor. Your line is now open.
spk02: Yeah, thank you. Good evening. Let me just add a little bit to Rob's last line of questioning there around the total number of visits. You say you've approached pre-pandemic levels in total, but can you talk to maybe what the added capacity is now for visits, given that you've got this omni-channel platform now and that you would expect to continue to grow well through those pre-pandemic levels in the quarters ahead or as restrictions allow?
spk04: Yeah, for sure, Doug. Thank you so much for the question. With regards to capacity, you can picture our virtual care channel as we've established it and operationalized it as essentially another quote-unquote clinic. So we do have staff, et cetera, that are coming on board and have been on board that are dedicated to that virtual care pathway exclusively, that digital channel. So there's a huge amount of capacity there as we continue to bring doctors on. With regards to the clinic group and capacity, we're still recovering right back to those pre-COVID levels And some of that total volume, as mentioned, right, is via telehealth, via virtual care. So there is capacity there in the brick-and-mortar channel.
spk05: Yeah, yeah. Just to give you some rough numbers on it, right, back during the IPO, we talked about $850,000 a year, right? About 800 of that pre-COVID was classic clinics, right, across the network. And 50 of it is sort of through corporate and the other channel, right, the other things that we do when you look at just total patient volumes. we're almost at 800 now. And so we're, you know, as we move through the third quarter here. So we're there. And, of course, corporate has grown since then. And that's, of course, none of this has anything to do with poly, which adds another, you know, 100,000 plus a year. So we're pretty happy with that. In terms of the capacity, it's going to boil down to, you know, physician capacity and how you spread that across virtual and brick and mortar. So you could still service the same 800,000 with the physical network. So then it's a matter of how much additional can you layer in on top of that through the virtual channel. And it's sizable, right? Because I've sort of maintained that I don't know where this thing levels off, if it's 70-30 in favor of virtual versus clinic, or if it's 50-50 or whatever. I think it'll ultimately live above 50, but you could effectively with that kind of ratio almost double your capacity for what we had before using the virtual channels. So then it's a question of optimizing the clinics and what you do with them, right? And you always have to have clinics. We know that. So then the question is, what do you do with them, right? What are the other high-value-added services and things that can go through the clinics in addition to classic primary care services and things like that that could be put through them? So, you know, there's an enormous opportunity there, but it obviously has to be properly planned, thought out. We're all learning still as we go because it's still relatively new as to what how things will settle in, you know, in terms of what the patients want, right, and what is absolutely required as mandated by the government and their preference, right?
spk02: Okay. Just to help us, you know, think about, you know, looking past the acquisitions and the contributions from those, You expect for another step higher in your revenue performance in Q3 versus Q2, given the activity levels both on the corporate and public pay side? And if that's true, would the jump from Q1 to Q2 be a reasonable increase in terms of what we should be modeling?
spk05: It's certainly possible. I think, you know, we're still early days in Q2, you know, clearly, and a lot of it will depend on COVID and people's willingness to, you know, to come into clinics as well as, you know, physicians' willingness to come into clinics too. It takes two to tango there. As well as, you know, continued strength in the corporate channel, adding new customers, bringing customers in through the insurance channels. You know, as far as we can tell, things are, you know, holding up well in that regard. And, you know, the recovery is ongoing. So, you know, I think we can certainly see continued growth. The magnitude is always hard to call because it is somewhat mix-dependent, I mean, within healthcare services themselves. as well as volume dependent, clearly, in the government insured sector. I don't know what the latest Delta outbreak is going to do for us. It's always been very difficult to handicap.
spk03: Okay.
spk02: Okay, well, it's good to hear. Maybe moving down the income statement, can we talk, I mean, you mentioned a bunch of areas and buckets that you've invested in. Yeah. But maybe an update on how you're thinking about the path to profitability, at least on an EBITDA basis, from where you stand right now, and should we continue to make progress towards that in the quarters ahead?
spk05: Yeah. So every business must contribute to that path, philosophically speaking. That means we do our best. to continue to run the clinics as efficiently as possible, you know, further enhance their productivity with the IT investments that we're making, you know, in addition to obviously making them more secure. It also means that we roll out our corporate health hub, you know, efficiently and cost effectively. So, there's opportunities to improve profitability in each of the businesses. And to that end, I didn't talk about it earlier, but we are actually rolling out a new ERP system to give us better intelligence, you know, day-to-day information on each of the businesses. It makes us smarter on, you know, on the day-to-day business. So I think the reality is that we would expect that the corporate health business plus the traditional clinic business improvements plus cure and the impact of BrightOS will be expected to improve their profitability so that we absorb the additional corporate overhead of being a public company and the additional costs of the executive team that was brought in place to help execute on the vision. And I think it's Sure is a hard one to call because it's lumpy business, right? And these things come in, can be half a million or as much as million-dollar chunks at a time. Same thing with BrightOF. They're not as flow-based as the traditional health services are. So they are going to absolutely be in any given quarter a big swing factor on at the moment, right, at current run rate levels. of absorbing that additional overhead to go EBITDA positive. Polyclinic will definitely go a long ways to helping that. It's no secret that the medical business, that the executive healthcare business is extremely high margin, right? You're talking about 30% plus EBITDA margin there. Similarly with clinical research in the Canadian phase onward, So those types of things can really make a difference quickly. And like our own, you know, like CURE and to some degree the corporate health business, they are actually not demand limited. They are absolutely everything is about, you know, the ability to service the client. And so that's one of the reasons why we said, listen, you know what? Yes, it'll cost a little bit more in the near term, but we do need to make these investments to support the growth. in those businesses. And if we can support the growth in advance of that, right, then you provide yourself a really nice run rate for 2022 to capture profitability on the EBITDA side.
spk02: Okay. So to put up maybe a finer point on that, EBITDA losses might be expected to continue for the next couple of quarters as you make these investments and you'll see the returns in terms of top line growth in 2022. Is that a fair way of summarizing?
spk05: That's a fair statement. You can't do the kinds of growth that we're envisioning without these kinds of investments.
spk02: Okay.
spk01: I will pass the line. Thank you. Sure. Again, participants, it's star one to ask a question or to pound key to withdraw your request.
spk06: No further questions on cue. I'll now turn the call back over to the management for final remarks.
spk05: It looks like Rob might have a question again, a follow-up, I think.
spk06: We do have another question back from Rob Goff of Echelon. Your line is now open.
spk03: Thank you. Glad I didn't squeeze in there. I was going to ask if you could talk perhaps a bit more about the cross revenues or the synergies available with Polyclinic.
spk04: Yes, of course. And thanks for the question, Rob. So the Polyclinic group, as I described, is truly an innovative care model that's been built by Dr. Lou Cleum and his wife, Leslie, right, where they've added, you know, besides just primary care, this true ecosystem of additional specialist services, diagnostics, et cetera, right? So when a patient comes through the door at the polyclinic, they go from their doctor's consultation to pretty much immediately to see the right specialist, get the imaging done, their labs, et cetera, In a space where all the data is standardized, accessible by all the doctors, where not only is there optimization in the patient's flow and access, but also things like improvements on the liability of the physicians, too, because they have better optics on the care that they've delivered, and then, of course, getting back those results and critical reports that sometimes can get missed by simple things like even being in the mail. So, To now answer your question, you know, this now polyclinic group is going to become and has become basically a hub, right, for the entire MCI network where we'll have improved access, we'll have improved quality, et cetera, improved patient experience across the entire network, especially those clinics of ours that are geographically close to polyclinic and then can directly benefit, right, from that same standardization of information, that same visibility, et cetera. So we're expecting that there will be, you know, a lot of synergy here, and not just from, you know, the primary care or specialist care level, but from especially, you know, the corporate health channel, right? And then also, you know, the exciting product of concierge medicine, right? So there are three layers of synergy there, and then there's the – you know, from our technology and precision medicine aspect, there's the synergy with the clinical research organization as well. So there's multiple layers there and, you know, expectations on our end of being able to benefit, you know, from this entire ecosystem collectively.
spk05: Great. Thank you very much. Yeah, no problem. Any other questions?
spk06: No further questions on cue.
spk05: Well, thanks very much for joining the call. We really enjoyed it and we'll look forward to seeing you after the next quarter.
spk06: Thank you, speakers. And that concludes today's conference. Thank you all for joining. You may now disconnect.
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