Empower Clinics Inc. (CSE:EPW, OTCQB:EPWCF) has posted sharply higher revenue of $1,573,809 for the third quarter, a 288% jump from the previous year thanks to the launch of its COVID-19 testing clinics for cruise ship passengers in Vancouver, Canada, and increased sales from MediSure.
Revenue from Diagnostics and Technology, which includes the sale of MediSure products and COVID-19 testing, amounted to $1,289,808, compared to $160,955 in the same period a year earlier. COVID-19 testing contributed 58% of the revenue.
“We are pleased to deliver substantial revenue growth, with revenues almost tripling this quarter on a year-over-year basis,” Steven McAuley, chairman and CEO of Empower Clinics said in a results statement. “This is the second consecutive quarter that we’ve maintained strong revenue growth when compared to last year.”
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“We realized strong returns on our investment to launch fully certified COVID-19 testing solutions and centers in the Vancouver waterfront area. MediSure Canada continues to experience healthy sales growth across its entire suite of medical devices and at-home testing solutions, including the immediate adoption of products launched just this year. MediSure Labs now has new leadership with a proven track record to help realize its revenue potential,” he added.
The group’s Health and Wellness segment contributed $284,001 to total revenue in Q3 2022, compared to $244,752 in Q3 2021. The increase over the prior-year period was due to higher revenues from Medi-Collective’s clinics.
“The Medi-Collective is successfully recruiting doctors and adding specialty services like cardiology and dermatology. Recognizing macro-economic challenges, we will operate as efficiently as possible and looking forward to 2023, we will focus our growth efforts on US healthcare opportunities, in large markets and sectors that we are already invested in,” McAuley concluded.
Gross margin from continuing operations in the three months to September 30, 2022, was 59%, compared to 95% in the same period last year, Empower Clinics said.
The company had cash of $469,712 as at the end of September 2022, compared to $866,170 on December 31, 2021. Cash used for operating activities was significantly lower at $94,075, against $1,247,009 for Q3 2021.
An increase in operating expenses related to the COVID-19 testing site and ongoing operations in Medi-Collective clinics resulted in a net loss of $457,066. But this was significantly lower than the $1,711,659 loss reported for Q3 2021, the company said. However, adjusted EBITDA loss in Q3 2022 was $775,927, compared to $28,732 in Q3 2021, it added.
Empower Clinics is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories.
Supported by an experienced leadership team, Empower is aggressively growing its clinical and digital presence across North America. The company’s Health and Wellness and Diagnostics and Technology business units are positioned to positively impact the integrated health of its patients, while simultaneously providing long-term value for shareholders.
Contact the author at jon.hopkins@proactiveinvestors.com