Greenbrook TMS Continues Execution of Growth Strategy and Reports First Quarter Financial Results

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TORONTO–(BUSINESS WIRE)–Greenbrook TMS Inc. (TSX:GTMS) (“Greenbrook” or the “Company”),
today announced its first quarter 2019 operational and financial
results. For more information, please refer to Management’s Discussion &
Analysis of Financial Condition and Results of Operations (“MD&A”)
and the unaudited condensed interim consolidated financial statements of
the Company for the three-months ended March 31, 2019 and 2018. These
documents will be available on the Company’s website at www.greenbrooktms.com
and under the Company’s SEDAR profile at www.sedar.com.
All values in this news release are in United States dollars, unless
otherwise stated.

Bill Leonard, President and Chief Executive Officer of Greenbrook
commented:

“We are pleased with our results this quarter as we continue to
experience strong year-over-year growth rates both with our newly
established centers as well as with our existing footprint. With more
than 70 centers now in our network we are meeting our development
objectives and with the recent financing we have the opportunity to
accelerate that growth even faster.”

FIRST QUARTER 2019 FINANCIAL AND OPERATIONAL HIGHLIGHTS

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  • Revenue increased by 69% to $6.6 million, up $2.7 million from the
    first quarter of fiscal 2018 (“Q1 2018”)
  • Regional operating income increased by 186% to $0.6 million, up $0.4
    million from Q1 2018. Of this increase, 141% related to the adoption
    of IFRS 16 which was effective as at January 1, 2019 (1)
  • Our strong development pipeline with six new management regions
    currently in development increased the net loss for the quarter to
    $2.6 million as compared to $1.1 million in Q1 2018, in line with
    management expectations
  • Established 10 new TMS centers this quarter, bringing the total to 67
    and have since added another four bringing the network to 71. An
    increase of 100% from this time last year
  • On April 29, 2019, the Company announced it had entered into an
    agreement with a syndicate of underwriters to complete a bought deal
    public offering and concurrent private placement of common shares for
    aggregate gross proceeds of approximately C$29.0 million, the net
    proceeds of which are intended to be used to accelerate the Company’s
    expansion strategy by developing new TMS Centers and management
    regions, exploring opportunities for potential acquisitions and for
    working capital and general corporate purposes.
________
(1)    

The Company adopted IFRS 16, Leases (“IFRS 16”)
effective as at January 1, 2019 using the modified retrospective
approach. As a result of this approach the prior year figures were
not adjusted. For comparison purposes, the Company has provided
explanations for prior year figures adjusting for the effects of
IFRS 16. Please refer to the respective underlying discussions in
our MD&A for further details on the impact of the implementation
of IFRS 16 on our financial results.

 

SELECTED FIRST QUARTER FINANCIAL AND OPERATING RESULTS (1)

    Q1 2019     Q1 2018
(US$) (unaudited) (unaudited)
Total Revenue 6,607,198 3,901,571
Regional Operating Income 627,000

219,601(2)

Loss before income taxes (2,640,087) (1,129,283)
Loss for the year and comprehensive loss (2,640,087) (1,129,283)
Loss attributable to the common shareholders of Greenbrook (2,570,422) (1,155,539)
Net loss per share (basic and diluted) (0.05) (0.03)
________
Notes:
(1)     Please note that additional selected consolidated financial
information can be found at the end of this press release.
(2) The Company adopted IFRS 16 effective as at January 1, 2019 using
the modified retrospective approach. As a result of this approach,
the prior period figures were not adjusted.
 
   
As at March 31, As at December 31,
(unaudited)

2019

 

2018

2018

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Number of active TMS Centers(1) 57 31 47
Number of TMS Centers-in-development(2) 10 2 10
Total TMS Centers 67 33 57
Number of management regions 9 3 8
Number of TMS Devices installed 118 75 108
Number of regional personnel 155 91 132
Number of shared-services / corporate personnel(3) 27 12 17
Number of TMS providers(4) 55 29 46
Number of consultations performed 1,441 797 4,211
Number of patient starts 840 541 2,626
Number of TMS treatments performed 29,387 18,288 95,621
Average revenue per TMS treatment $225 $213 $222
_______
Notes:
(1)     Active TMS Centers represent TMS Centers that have performed
billable TMS services.
(2) TMS Centers-in-development represents TMS Centers that have
committed to a space lease agreement and the development process is
substantially complete.
(3) Shared-services / corporate personnel is disclosed on a full-time
equivalent basis. The Company utilizes part-time staff and
consultants as a means of managing costs.
(4) Represents physician partners that are involved in the provision of
TMS therapy services from our TMS Centers.
 

CONFERENCE CALL AND WEBCAST

First Quarter 2019 Conference Call Details:

Bill Leonard, President and Chief Executive Officer and Erns Loubser,
Chief Financial Officer will host a conference call at 10:00 a.m.
(Eastern Time) on May 10, 2019 to discuss the financial results for the
quarter.

Toll Free North America: 1-866-521-4909

Toronto: 647-427-2311

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Webcast:

For more information or to listen to the call via webcast, please visit:
www.greenbrooktms.com/events.htm

Conference Call Replay:

Toll Free (North America): 1-800-585-8367

Toronto: 416-621-4642

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Passcode: 9194635

The conference call replay will be available from 1:00 p.m. ET on May
10, 2019, until 23:59 p.m. ET on June 10, 2019.

About Greenbrook TMS Inc.

Operating through 71 Company-operated treatment centers, Greenbrook is a
leading provider of TMS, an FDA-cleared, non-invasive therapy for the
treatment of Major Depressive Disorder and other mental health
disorders, in the United States. TMS therapy provides local
electromagnetic stimulation to specific brain regions known to be
directly associated with mood regulation. Greenbrook has provided more
than 250,000 TMS treatments to over 6,500 patients struggling with
depression.

Cautionary Note Regarding Forward-Looking Information

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Certain information in this press release, including with respect to the
rapid expansion of our TMS Center network, the successful completion and
intended use of proceeds from the Offering, or the Company’s future
financial or operating performance, constitutes forward-looking
information. In some cases, but not necessarily in all cases,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “targets”, “expects” or
“does not expect”, “is expected”, “an opportunity exists”, “is
positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does
not anticipate” or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.
In addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent management’s
expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered reasonable by
the Company as of the date of this press release, are subject to known
and unknown risks, uncertainties, assumptions and other factors that may
cause the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to the factors
described in greater detail in the “Risk Factors” section of the IPO
Prospectus available at www.sedar.com.
These factors are not intended to represent a complete list of the
factors that could affect the Company; however, these factors should be
considered carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking statements
contained in this press release are made as of the date of this press
release, and the Company expressly disclaims any obligation to update or
alter statements containing any forward-looking information, or the
factors or assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by law.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(US$)  

Q1 2019
(unaudited)

 

Q1 2018
(unaudited) (1)

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Total Revenue 6,607,198 3,901,571
 
Direct center and patient care costs 3,456,616 2,722,740
Regional employee compensation 1,251,421 572,872
Regional marketing expenses 464,041 376,540
Depreciation 808,120 9,818
Total direct center and regional costs 5,980,198 3,681,970
Regional Operating Income 627,000 219,601
Center development costs 264,696 111,673
Corporate employee compensation 1,460,101 503,150
Corporate marketing expenses 204,346 154,011
Other corporate, general and administrative expenses 667,895 383,748
Share-based compensation 294,159 119,904
Interest expense 397,840 76,398
Interest income (21,950) –
Loss before income taxes (2,640,087) (1,129,283)
 
Income tax expense – –
Loss for the year and comprehensive loss (2,640,087) (1,129,283)
Income attributable to non-controlling interest (69,665) 26,256
Loss attributable to the common shareholders of Greenbrook (2,570,422) (1,155,539)
Loss for the year attributable to:
Non-controlling interest (69,665) 26,256
Common shareholders of Greenbrook (2,570,422) (1,155,539)
Net loss per share (basic and diluted) (0.05) (0.03)
_______
Notes:
(1)     The Company adopted IFRS 16 effective as at January 1, 2019 using
the modified retrospective approach. As a result of this approach,
the prior period figures were not adjusted.
 

Contacts

Erns Loubser
Chief Financial Officer, Treasurer and Corporate
Secretary
Greenbrook TMS Inc.

Linda Armstrong
Investor Relations
Greenbrook TMS Inc.

Contact Information:
investorrelations@greenbrooktms.com
1-855-797-4867

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