Earnings Call: Q1 2021

May 10, 2021

Earnings release

Welcome to the Well Health Technologies Corp. 1st Quarter Fiscal 2021 Financial Results Conference Call. My name is Sylvie, and I will be your operator for today's call. At this time, note that all participants are in a listen only mode. Call. Please note that this call is being recorded. And I would like to turn the conference over to Pardeep Sangha, Vice President, Corporate Strategy and Investor Relations. Please go ahead, sir. Call. Thank you, operator, and welcome everyone to WellHealth's 2021 fiscal Q1 financial results conference call. Joining me on the call today are Hamid Shebazi, Chairman and CEO and Eva Fong, the company's CFO. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion from sedar.com. Call. A portion of today's call, other than historical performance, include statements of forward looking information within the meaning of applicable securities laws. Call. These statements are made under the Safe Harbor provisions of these laws. Forward looking statements are necessarily based upon a number of estimates and assumptions that, While considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Call. These factors are further outlined in today's press release and in our management discussion and analysis. We provide forward looking statements solely for the purpose of providing information Management's current expectations and plans relating to the future. We don't undertake or accept any obligation or undertaking to release publicly any updates call. All revisions to any forward looking statements reflect any change in our expectations or any change in events, conditions, assumptions or circumstances The gross profit, adjusted gross margin, adjusted EBITDA and adjusted shareholder EBITDA on this conference call, which are all non GAAP measures. Call. For more information on how we define these terms, please refer to the definition set out in today's press release and in our management discussion and analysis. Call. The company believes that adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations, which the company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth. Nestadiva should not be construed as an call. And with that, let me turn the call over to Mr. Hamish Abazni, Chairman and CEO of Well Health Technologies Corp. Call. Thank you, Pardeep, and good day, everyone. We hope that you're all keeping safe and healthy. We truly appreciate everyone for joining us today. Call. On today's call, I'll first provide some general commentary on the quarter and give an update on each business unit followed by our CFO, Eva Fung, We'll provide a financial summary of our Q1 2021 results. I will then come back and provide some commentary on our recently announced acquisition of CRH Medical. We will then conclude the call with a question and answer session. We began the year with an exceptionally strong Q1 in which we delivered call. Record quarterly revenue and adjusted gross profit. Well achieved another quarter call with record revenue for Q1 2021 with revenue increasing 150% on a year over year basis and gross profit increasing 155% on a year over year basis, with the company's software and services revenue leading the way call by increasing by 3 45%, again on a year over year basis. In addition, Q1 was the 2nd quarter in a row where we reported positive adjusted EBITDA. You may remember that in the last quarter, we call. Consensus was essentially focused in around breakeven. We had really over performed at coming in at just under call. $1,000,000 in EBITDA. Well, in fact, this quarter, we achieved record EBITDA of $1,100,000 over $1,000,000 from our Canadian operations, call, but had elevated costs in our Circle Medical investment, and which is our only investment in the U. S. Until our CRH acquisition, call, which caused our overall EBITDA to fall to about $500,000 CAD for the quarter. Our M and A program continues to successfully execute on wealth disciplined capital allocation strategy. Since the beginning of the year, we have completed or announced the following acquisitions: 1, call. The 100% acquisition of CRH Medical Corporation, a company focused on providing products and services to gastroenterologists throughout the United States. Call. 2, 100 percent acquisition of AdriCare, practice management and telehealth platform serving allied health practitioners in 5 countries. Call. 3, the 100% acquisition of Open Health Software Solutions, an Oscar EMR service provider to medical clinics primarily in Ontario. Call. 4, the 100 percent acquisition of IntraHealth Systems, an enterprise class EMR provider operating in Canada, Australia and New Zealand. Call. 5, a seed investment in Twig Fertility Company, a new tech enabled fertility clinic, which will be opening in Midtown Toronto later this year. 6, the 100% acquisition of Exec Health, call, a provider of primary care and executive health services in the Ottawa region. 7, the proposed 51% Majority stake acquisition of Doctor Services Group, our first acquisition by our doctor care unit, which is our billing and back office business unit. Call. And just yesterday, we announced CRH Medical completed its first acquisition as a well business unit with the 85 call. Percent majority stake acquisition of New England Anesthesia Associates. I will now review our overall patient visit count in quarter, and I'll discuss the progress of our individual business units. I'm very pleased to report that our total multi channel patient visits in Q1 were 469,982. This includes all patient visits that were either delivered by a well practitioner call or virtual care consultation carried out by a practitioner outside the walls of Well by using a Well enabled platform. Call. In person visits at our clinics made up 30% of this total visits number and accounted for 142,944 call. Telehealth patient visits made up 70% of the total visits and accounted for 265,991 visits, call, including both telephone and virtual care visits. We don't know of any other provider in Canada that has anywhere close to the capacity of delivering both physical and person and telehealth patient visits for the same degree as well, given that we are now on a multi call. To our knowledge, we are the market leader in multichannel patient visits in Canada today, and we will look to build on that lead purposefully and ambitiously over the next year. And might I point out that that's really what makes Well truly special, call. The fact that we have both platform technologies and clinical care, hundreds of practitioners delivering clinical care call in all aspects of primary and secondary care, often using a well platform. Now an update on our business units. On the last quarterly conference call, I made reference to how we aspire and model ourselves to be like Berkshire Hathaway. Call. We regard ourselves, as I said, aspirationally as a Berkshire Hathaway of tech enabled healthcare. Much like Berkshire Hathaway, call. Our goal is to make investments in highly successful and resilient companies run by top notch management teams that have a superior track record of delivering results. Call. The main difference here is that Berkshire has a very wide mandate and ours is very much focused on the theme of tech enabled healthcare. Call. As we see this as a pivotal time where digitization and modernization are occurring in one of the largest sectors in the world. Call. Furthermore, Berkshire Hathaway Companies and leaders are invited to stay, be empowered and continue on the journey while benefiting from being in the group. Call. We have similarly structured the company into several business units, each with its own business unit leader, as well as employing a decentralized operating strategy call, where most of the operating decisions are managed by the leaders of the different business units. This allows the company to grow and scale without added bureaucracy call and leaner shared services. Notwithstanding this approach, capital allocation decisions are centralized and thoughtfully planned to ensure that The company is always making the most compelling and accretive investment decisions. It should be noted that Well is increasingly seeking investments in situations where its business unit leaders call. Recent case studies illustrating this objective include the acquisitions of IntraHealth, call. New England anesthesia and the proposed acquisitions of Doctor Services Group. In each of these cases, the business unit leaders are very much involved And the M and A process or entirely carrying out the M and A process themselves as in the case of CRH Medical. Call. While Well's business units span across different areas in tech enabled healthcare, each of these business units and operations essentially support one theme, call, and that is practitioner enablement and support, often with the latest and greatest technology. And And now I'll speak to each of the business units starting with our clinical business. Wells public insured revenue increased by 13% compared to the same quarter last year call as we are witnessing strong year over year organic growth, assisted with the addition of our telehealth services by physicians in our wholly owned clinics. Call. Our patient services revenue generated by our clinical business unit includes both in clinic and telehealth related revenue. Call. Wella's own physicians have embraced the omnichannel, multichannel or bricks and clicks experience, with many doctors call. We believe that COVID-nineteen has accelerated the adoption of telehealth and digital services. However, We continue to believe the future will be reflective of a hybrid delivery approach. Doctors and patients still need to meet call and see patients at times for proper examination purposes. Given these trends, we believe Wells call. Very well positioned to benefit from the permanent trend of delivering service via hybrid bricks and clicks approach. Call. Next, we have Allied Health. Wells' Allied Health business unit is focused on operating, investing and unlocking opportunities associated with Allied call. Health offerings such as physiotherapy, occupational therapy, chiropractic, dietary, mental health counseling and sleep related services. Call. Both SleepWorks and EasyAllyde are mobile services that continue to outperform their original expectations and are experiencing the benefits from working very closely with our primary care clinics in BC to offer a more integrated approach to health care, while non insured patient services revenue call. Our Allied Health revenue increased 132% compared to Q1 of last year and 61% sequentially from last quarter in Q4 call due to a full quarter of revenue contribution from EasyAllied acquisition and strong performance from our SleepWorks business. Call. It should be noted that both EasyAllied and SleepWorks have very strong year over year growth, and that's organic growth. Call. Next, we have Welles Digital Health Apps Business Unit. Welles Digital Health Apps is our business unit solely focused on developing, primarily focused on establishing partnerships and or investments with leading digital health apps that allow Well to unlock the value of its other That's such as EMR platforms. As we talked about before, this is the business unit to date that has housed most of our platform technologies, call, especially as it relates to digital patient engagement. By extension, it should be noted that we don't have a separate telehealth business unit, call, but telehealth is actually a part of the apps business unit. Telehealth is actually used and deployed across the entire organization. So it lives call, not just in this business unit, but integrated throughout. We have a number of telehealth platforms in Canada, including tiahealth.com, Virtual Clinic Plus, call, AdriCare and IntraHealth. The combination of all these telehealth platforms positions Well as one of the top call. Providers of telehealth services in Canada. And of course, we also have Circle Medical, which I'll speak to in a bit, in the United States. Call. TL Health is our virtual health marketplace, where medical practitioners are online at all hours of the day facilitating a virtual walk in experience for the millions of patients across Canada who do not have a regular family doctor. The marketplace like approach not only provides patients with comfort in selecting a healthcare practitioner, but it also encourages patients to often come back to the same practitioner, creating attachments and furthering a more longitudinal care model. Call. Once again in Q1, over 50% of the visitors to our Tia Health platform were repeat visitors. We view this as an excellent call. Data point and very good news because it means our users love the experience and are coming back again and again, improving our lifetime value, call, and we are essentially turning unattached patients into attached patients. Turning our attention to telehealth in the United States and Circle Medical, call, who continues to experience healthy telehealth patient volume increases despite the return to more of an in clinic model, call given the strong recovery in the United States. Circle Medical is also expanding its physical footprint and will be opening its 3rd call. Wholly owned clinic in Austin, Texas in Q2, 2021. Circle's partnership with KIND Health Group of San Diego, California is still in its early stages call and is promising in terms of its growth as well. As part of this new pilot program, Circle Medical is allowing vetted primary care practices call. Access to its technology platform to deliver a high quality experience while streamlining their administrative overhead. Call. This is without Circle having to buy the clinical business, merely partnering and leveraging Circle Medical's platform. Call. Circle Medical is making great progress and is reflecting roughly 150% organic growth in visits on a year over year basis. Call. It should also be noted that despite having a clinical business, more than 80% of the company's revenue come from pure virtual care services call and is expected to continue to have its telehealth services outpace its brick and mortar revenue growth, which will also continue to organically grow. Call. In addition to the strong growth in telehealth, the Well Digital Apps business unit has experienced an incredible amount of interest and activity with the App Store Health marketplace. Call. Currently, we have now 31 digital health apps on the marketplace from 18 different publishers. Call. In fact, we've had a couple of very key announcements in the quarter relating to apps. One was the fact that we adopted the FHIR standard, that's FHIR, which of course stands for FAST Healthcare Interoperability Resources. We actually did a lot of development work around this, And it was all driven internally and organically by our various different teams on a multidisciplinary, multi business unit basis. This is strong evidence that Well is an innovative company that does more than drive corporate development successes. We launched a new FHIR call. API or application programming interface. This is a big deal because it allows digital health app developers to build integrations much more easily to our EMR platforms. Call. It makes it easier for clinicians to launch digital health apps that interact with their EMR data. With the adoption of FHIR, well, we'll ensure strong programmatic connectivity between its global family of EMR products and its app. Health ecosystem, extending app availability to its full EMR call. The idea here is that FHIR interoperability will allow 3rd party app developers to publish apps call. We'll also be conducting a call to Well's App Store and immediately communicate with Well's global fleet, which now includes IntraHealth, call, providing access to thousands of medical practitioners and clinicians in multiple countries. Adopting FHIR was also a critical pass item for us to call. And be able to work with Apple on the Apple Health Records project that we just announced last week. Call. I'd like to spend some time now talking about this press release and the success that and achievements surrounding enabling Apple Health Records on iPhone, which is now rolling out for clinicians and patients across Wells Primary Care Clinics, EMR Network, call. Apple Health Records on iPhone allows patients to securely view and store their own call. Available medical records from multiple providers right in the Apple Health app on their iPhone with their privacy and data protected at all times. Call. This is an app that should be essentially factory installed on every iPhone. The health records feature creates a direct call. Encrypted connection between a patient's iPhone and 1 or more healthcare organizations, allowing users to access a centralized view call. Of their allergies, conditions, immunizations, lab results, medications, procedures and vitals, Just to name a number of these items across multiple providers and to be notified when their data is updated. Call. Any OSCAR Pro enabled clinic of which now as you know there are more than 2,200 can now opt in to offer health records on iPhone. Call. We are very proud of the fact that Welles Kia Health will be the 1st telehealth service in Canada to support call. We'll also offer health records on iPhone. Call. We've recently rolled out a number of new apps such as Apple Health, but we've also rolled out other apps. We rolled out an app for AdvriCare. AdvriCare is the industry leading practice management and telehealth solution that is powering a lot of Allied Health Experiences such as major clients such as Aurora Cannabis and Lifemark. We've also now added an app on the marketplace for Pillway. You'll remember that in Q4 last year, we made an investment in Pillway, which is an industry leading e prescription platform. Call. We now own more than 20% of the company and sit on the Board. Tilway is also fully integrated with our telehealth call and now processing prescriptions every day for our telehealth customers. We've also launched Well's own PMR or personal medical record system called YourCare, which is a major initiative that essentially allows patients call to interact with their data as it relates to our telehealth business. This is also fully Apple Health Records compatible. Call. Now for the Well EMR Group. Q1 was a monumental quarter for the Well EMR Group as the acquisition of IntraHealth has transformed the business unit to a multiproduct offering across the globe. IntraHealth is an enterprise class EMR provider with deep IP portfolio call and a highly customizable platform that supports a myriad of healthcare settings, including health authorities, hospitals, public health outpatient centers, call. IntraHealth supports approximately 15,000 clinicians, providing care for millions of patients in its combined databases across its global network of Canada, call. For example, IntraHealth powers large customers such as the government of Western Australia, call. Victoria's State Government again in Australia, New Zealand's Defense Force, the Auckland District Health Board as well as several other large Health authorities as well within the Australia Asia region. As discussed earlier, Well also anticipates call. Integrating IntraHealth to apps. Health marketplace in the coming months, paving the way for third party app developers to have their digital health applications available on both Oscar Pro call and intrahealth platforms. And now for our cybersecurity business unit, Sycura. Our cybersecurity business had a very strong quarter with revenues exceeding 4 95% compared to Q4. You'll recall in the last quarterly conference call, we explained that Q4 revenue in the cybersecurity business unit was negatively impacted by shipment of networking and security products at the end of December, which got delayed into January. While this delayed shipment helped improve our Q1 results, our cybersecurity team still had a fantastic quarter, closing and delivering on a multitude of deals with large enterprise customers. As a result, our Q1 revenue ended up being exceptionally strong. Keep in mind that even with this call. Revenues for this business unit can often be lumpy as a result of the timing of shipments and project related contracts. Call. Notwithstanding, we remain very excited about the prospects for our security business as this is becoming a critical area of focus. Call. Cykeria and Source44 is already supporting all of our business units across the organization, including clinics, allied health, call. EMR, digital apps, billing and soon we'll be providing cybersecurity solutions to CRH's customers. Call. Next, Well's billing and back office business unit. DoctorCare as a foundational acquisition for Well call. Serves a new business unit focused on the North American medical billing and back office marketplace. Call. Doctor. Kerr already supports Well's Oscar Pro EMR and is featured on the Well's on Well's Aptoph Health Marketplace, but it also supports all other major EMRs in the country. Doctor Care recently announced its first acquisition, which is the proposed 51% majority stake call. We view Doctor. Care as another one of Well's key consolidation points for additional call. Billing related acquisitions and growth initiatives. There are a number of small billing outfits across the country that support doctors with their billings. Call. We've identified this as a compelling and highly accretive consolidation opportunity that will likely yield significant additional sticky recurring revenue and profitability. Call. That concludes my update of the individual business units. As you can see, well has substantially diversified its business into several call. Growth oriented business units with heavy emphasis on driving collaboration and in sourcing from the group of companies and capabilities, driving real network effects. Call. Each business unit is experiencing organic growth and is a leverage point for additional related acquisitions. Call. I'll go into additional details on the proposed CRH acquisition later in the call today. But first, I'd like to turn the call over to our CFO, Eva Pham, who will review the financials for the Q4. Eva? Thank you, Hamid. Thank you, Hamid. I'm pleased to report that we had a very strong Q1 results for the 3 months ended March 31, 2021, And they are as follows. Wow achieved record quarterly revenue of $25,600,000 during Q1 2021 compared to revenue of $10,200,000 generated during Q1 2020, an increase of 150% driven by acquisitions during the past year and the addition of telehealth related revenue. Well achieved software and services revenues of $7,600,000 in Q1 2021, representing 3 45% year over year growth as compared to $1,700,000 in Q1 of last year. During Q1 of 2021, Welch achieved record adjusted gross profit of $10,000,000 representing 155 percent year over year growth as compared to adjusted gross profit of 3,900,000 in the prior year Q1 2020. Well achieved adjusted gross margin percentage of 39.3% call during Q1 2021 compared to adjusted gross margin percentage of 38.5% in Q1 2020. Call. Net loss was $7,100,000 or $0.04 per share for the 3 months ended March 31, 2021, call compared to net loss of $2,000,000 or $0.02 per share for the 3 months ended March 31, 2020. Call. Adjusted EBITDA profit was $500,000 for Q1 2021 compared to adjusted EBITDA loss of $200,000 for call. Q1 2020. Adjusted EBITDA was positively impacted by Wells' Canadian operations, which achieved adjusted EBITDA of $1,100,000 As Hamid mentioned earlier, this is the 2nd quarter in a row that we have reported positive adjusted EBITDA. Well ended Q1 with a very strong balance sheet. The company had cash and cash equivalents of $83,300,000 as at March 31, 2021, call compared to $86,900,000 as of December 31, 2020. Subsequent to the end of the quarter, call. Well completed its acquisition of CLH and announced a US300 $1,000,000 revolving credit facility with JPMorgan and a syndicate of lenders. CLH has since completed an acquisition that was announced yesterday, which is fully funded by this call. Wallet's current cash balance is over $65,000,000 and the company has access to additional facilities under the JPMorgan credit facility to fund future expansion. As of the end of the Q1 on March 31, 2021, call. The company had 174,531,714 fully diluted securities issued and outstanding. Call. More recently, as of yesterday, May 10, 2021, the company had 207,000,96,600 and C1 fully diluted securities issued and outstanding, including the recent 30,900,000 shares of subscription receipt, call, which had all been converted to well shares at the close of the CLH acquisition. That is my financial update, and I turn the call back over to Harmit. Call. Thank you, Eva. I'll now provide some commentary on our recent acquisition of CRH Medical that was completed a couple of weeks ago. I think I just Mistakenly mentioned that it was a proposed acquisition. It was proposed for so long, it kind of got in my head. We're very happy to have CRH complete. In fact, call. During our Q1 conference call, I think we mentioned that This acquisition puts us on track for annualized revenue run rate approaching $300,000,000 That call. This continues to be the case and we're very pleased about that. CRH accelerates our revenue growth and significantly boosts our free cash flow, call, which will obviously be used to make additional cash flow generating acquisitions. This is when we're cooking with fire. Call. Our acquisition of CRH Medical was partially funded by an upside subscription receipts equity offering of $302,500,000 at CAD9.80 per share without any warrants or sweeteners. Call. This was done at a premium to market price. The equity offering was led by Hong Kong businessman and investor, Mr. Li Keqing and his partner, call, who invested $100,000,000 and were joined by several other large multi $1,000,000,000 institutions. Please note that Weld's management The team and Board also invested alongside our institutional investors. That includes every Board member and almost every call. Member of our management team, including myself, who acquired $530,000 worth of these subscription receipts at $9.80 call. CRH Medical is a cornerstone transaction for the following reasons. One, again, it boosts our free cash flow, call, which would be used to make additional cash flow generating acquisitions. In fact, call. In our press release today, we noted that the asset is on track to hit plan. This is the plan that we extensively diligence call. During our due diligence period, which was extensive, and we hired a high powered team of external advisors call and paid 100 of 1,000 of dollars to do a very deep review. And the plan that we settled on, they are on track for. And that plan calls for call. Revenue exceeding US150 $1,000,000 and free cash flow call of generating free cash flow of over US40 $1,000,000 and that's pretty exciting for us. Call. And with this acquisition, Well gains deep access to U. S. Healthcare call. With a rapidly growing asset, Well aims to unlock the value of this channel of over 3,000 GI doctors with new revenue and business opportunities. Call. And the strategic fit here is pretty substantial because what we're talking about is CRH does not own clinics. Call. It has a trusted advisor relationship with a substantial number of practitioners. And call. That's what Well has done extensively in the past, which is tech enable and digitized practitioners. And so these 3,000 plus GI doctors are in call. All 48 of the lower United States. And CREs currently provides 2 services to this GI marketplace. Call. And that includes anesthesia services and hemorrhoid banding services and training for call. And it's a product portfolio that we'd like to expand from 2 to 5 products. Call. And so we plan to lead with cybersecurity and follow with offerings such as digital patient engagement, and we are call. Deeply reviewing the opportunity to add chronic disease care management. I'm also pleased to report that call. CRH Medical just completed its first acquisition, which we announced yesterday. Call. The plan is to continue to make acquisitions using that credit line that Eva just spoke to. Call. And again, that $40,000,000 in free cash flow and $150,000,000 in revenues includes a plan call. That's again inclusive of M and A that's planned for the year. And we think that it's very possible that that plan could be exceeded. Call. With the CRH Medical acquisition, Well's financial and operating profile, it's clear that Well becomes not only call. A leader in the healthcare market in Canada here, but also a strong emerging player in the United States. This past year has been a tremendous year for Well, and we're looking forward to continued success as we expand in the U. S. And build on the successes of CRH Medical and their team. In closing, I want to review Wells' goals for 2021. 1, it's to drive organic growth across all our business units call. 2, continue to follow a very disciplined acquisition and capital allocation strategy 3, increase EBITDA throughout the year call 4, increased operating cash flows through acquisitions, optimizing costs and digitizing clinical assets and 5, increasing our market share of digital health call and virtual care related products and programs. Our outlook remains very positive across all our business units. Call. We continue to have approximately 9 executed LOIs signed and pending for execution. The value of these LOIs when combined with our existing deals propels us to well over $400,000,000 in revenue and over $100,000,000 in EBITDA. Call. Given the strong scale, Wells continues to seriously evaluate the prospects and feasibility of a U. S. IPO in the next few months. Call. Wells already conferring with Q1 bankers in some of the most recognized global firms in the world, call. And they're very excited about Well's progress and interest in a senior listing in the U. S. We've also retained counsel call with our partners at Fenwick and West who we've worked with on other U. S. Acquisitions. And That is my financial update. Let's talk about Q and A now. Thank you, sir. Ladies and gentlemen, we will now take questions from analysts. Call. And your first question will be from Doug Taylor at Canaccord. Please go ahead. Call. Yes. Thank you for taking my questions. You got into it right at the end there. I just want to clarify the LOIs Amounting to $400,000,000 in revenue and $100,000,000 in EBITDA. Previously, you talked about achieving a fifty-fifty somewhat call. Split between clinical services and digital, is that still the objective exiting this year to achieve that kind of mix Subrevenue? Thanks, Doug, for the question. We have talked about kind of the snapshot of where call. Digital and clinical sits, but we've really been intentional about not providing guidance on where that weighting would be. Call. And this is really important for us to remain perfectly opportunistic to make the best capital allocation decisions. We think that call. That weighting will shift over time and we think that that's only natural given that once in a while we'll find great digital deals and once in a While we find great clinical deals. But to your point, we are conscious of always maintaining a strong weighting in digital. And call. So we do have a good mix between all the different business units. So we have call. Strong recurring revenues and platform driven revenues from a digital perspective that are related with EMR, call. Thank you. Thank you. Next will be Christian Skrull at 8 Capital. Please go ahead. Call. Hi, and thanks for taking my questions. I'll just ask 2 today both on CRH. Now the first is on, Well's ability to digitize call. CRH's offering in the U. S, you mentioned that cybersecurity might be the best first in or natural way to get into some of the Clinics in the U. S, could you talk a little bit about the go to market strategy and other success you're seeing selling products in? Call. Yes. Yes. No, so thanks, Christian. We do think cybersecurity is a really good model because call. Remember that we don't own clinics. CRH does not own clinics. It provides anesthesia services to call. 73 ambulatory surgical centers and the banding services to many more practitioners. Call. And so those practitioners already have a lot of their own workflows. And so one of the things that's really exciting about call. Where we sit in healthcare overall is that any practitioner that you touch, any practitioner that's out there, it doesn't matter which field, call is going to be experiencing a greater level of digitization. It's just something that's absolutely unavoidable. And practitioners are call. Part of the responsible parties and of course, clinic administrators to keep data safe. So call. This is something that is unquestionable in terms of trend. What's also great is that call. It doesn't necessarily require any kind of integration with workflow to protect data. So we're talking about things such as edge defenses of clinics, call, ensuring that you have commercial grade hardware and software and protections for that data. And so call. That's one of the big reasons why we think cybersecurity is a great way to kind of move into that channel because you don't need call. To change the workflows, you don't need to change go through change very difficult change management processes that call. Often become difficult with healthcare practitioners. And so, we're putting this I Obviously, we just completed the acquisition. We are very close to pulling together the portfolio of cybersecurity products. And our view is that call. Like any company, CRH has some very strong advocates and clinics and practitioners that call. Really love their products and services. So the idea is to go to them first and establish our first wins and really celebrate those wins and demonstrate call, how they've been transformational helping those businesses. The other thing to think about here is there's an education element. Call. A lot of practitioners are quickly realizing that there are more and more call. Malware breaches and issues going on within the healthcare sector. Some practitioners are not aware of this, some practitioners are, But we are looking to really educate the market. And again, our close relationship and trusted advisor relationship with these practitioners will help us get there. Call. Hope that's helpful for you. We're also looking at potentially adding new heads to allow us to as we sort of Nailed down the value proposition to be able to scale it more effectively. So we have no issue adding more resources and sales horsepower call as that becomes a reality. Awesome. That's all helpful context. I'll just ask one more on CRH And more what you were seeing leading into the closing of the transaction. You had mentioned that the business was outperforming your plan call year to date and into 2021. But if there's any other color that you want to provide, maybe if that's on the O'Regan side or in the core business, Anything else you'd like to talk about on CRH to help us understand where the strength is? Sure. Yes. We are sort of absolutely in line on our plan. Our plan was something that we diligence extensively, again, ourselves and including third party consultants. Call. Had expected. As you may remember, Q4, while the company was still a listed company, they were also way ahead of Their Q4 consensus. So we're just extremely pleased at how things are going. Obviously, we didn't own call. The company in Q1 said we didn't announce their earnings, but suffice it to say that their growth was fantastic. They had better than I believe 32% or close to 33% year over year growth in their Q1. Now some of that was COVID affected in the previous year, but you'll remember COVID was really call. Just started to eat away at performance right in the last few days of March. So definitely still very much a strong demonstrable kind of data point. Call. Keep in mind also that Q4, there was 21% year over year growth. So again, CRH has demonstrated that they are a growth business. Call. And we not only expect that growth to occur inorganically, as you've seen, they're very good at that, but call. Organically as well. And so that's the thing to note is that there has been organic growth in caseloads occurring from the different acquisitions. Call. And in the past, some of the concerns with the company were that its case rates were declining. But again, our diligence showed call. That had now stabilized and could even curl back up. So that was why, call. In our view, this was really a fantastic time to get involved in the story. Hopefully, that's helpful color. Yes. It's all helpful. Thanks for taking my questions. Call. Thank you. Next question will be from David Kwan at TD Securities. Please go ahead. Call. Hey, Hamed. Hi, Eva. I was wondering just on the public insured revenue that was down a bit quarter over quarter. Call. I don't know if that's related to kind of not having a typical flu season due to COVID or whatnot or whether it was maybe related to the call. Maybe shifting in appointments for uninsured clinic revenue, which obviously had a nice bump quarter over quarter, but I was curious to get your thoughts on that. Call. Yes. David, I think it was very minorly down like maybe 1% or 2%. So we didn't think that there was much to that. I think a lot of that just depends on which doctors are taking time off or not. So I think that's probably call. We saw obviously some very strong I mean the clinical division has been really, really strong for us. Call. It's been seeing great organic growth on the top line, but also really strong profitability enhancement. So it's now one of our most profitable divisions, which was sort of the whole point of Well at the beginning, if you may remember, is the idea that we could buy clinics that sort of had call. Mediocre to average profitability and significantly enhance that profitability. And so we're now into the double digits in EBITDA margin call with our clinical population. And again, I think on a quarter over quarter basis, it was really no real call. Notable element in terms of any shifting of visits. I think it was purely related with just circumstantial That matters in terms of practitioners. Thanks, Amit. And just one follow-up question, just on the gross margin side then, I guess. Call? That was down quarter over quarter. I assume at least part of that was due to the equipment sale that was delayed from Q4 and maybe call. A heavier quarter for equipment sales in the cybersecurity business. Is there anything else going on there? No, I think you nailed it. That's it. Call. So you expect the gross margins, other things being equal to bounce back if we get back to a normal revenue mix? Call. Yes. I do expect it I do think our sort of where it seems that we're going to be trending is Roughly in the 40% or just above the 40% range. I think that's probably going to and that's going to be very healthy for us. And that's call. When we look at businesses and companies, we try to buy products and services that are not that don't have kind of any kind of erosion. Call. And CRH obviously has strong gross margin. So I think on a consolidated basis, we should be in really good shape there as well call. To maintain that 48% Great. Great. Thanks, Thomas. Thank you. Call. Thank you. And next question will be from Chris Thompson at PI Financial. Please go ahead. Call. Great. Thanks. Hamed, just a follow-up on the line of questioning in the clinical business. I think British Columbia went into a more strict lockdown again call. The end of March, is that having a negative impact on your in person clinic visits so far in the quarter? And what kind of color can you give us on that for modeling purposes? Call. We really haven't seen a big impact and I think it's testament to just how well managed those clinics are call. And how I think strong our hybrid approach is and call. The ability for practitioners to now be quite comfortable and artful in the way that they support patients between channels, call, providing often a very strong omni channel experience and a multichannel experience. Of course, the difference between omni and multi is omni call. As a single customer view across those channels, whereas multi, you may have different practitioners and so forth. Call. And yes, so no, I think we feel really good about that. Okay, great. And just call. On the cash, in the prepared remarks, you mentioned you had $65,000,000 today. Can you just remind us how much debt is drawn under $175,000,000 revolver. And also, when you want to draw down the $125,000,000 accordion, do you need to call. Have any preconditions and covenants before that? Or are you just able to draw that whenever you want at your free will? Thank you. Call. I'll just ask Eva because I think she's got those numbers really close to her there call. Yes. With the acquisition announced yesterday by CLH, the total drawn call? As of now, it's about RMB145 1,000,000. So we still have about almost RMB30 1,000,000 left call on the main credit facility in addition to the accordion. And yes, Chris, the accordion involves, I think conversation and an ability to kind of unlock that, I don't think it's a very extensive process to To unlock that. So we do have that accessible to us. Great. Thanks, guys. Appreciate it. Call. Next question will be from Scott Fletcher at CIBC. Please go ahead. Hi, thanks for taking my call. Call. Sort of following up on that, the question of the CRH facility. Does the expanded facility imply an acceleration in M and A at CRH? Is that something we should expect or is it sort of just there in case? Yes. Listen, call. We said before and we'll say it again, we really think that that's possible. For now, call. At minimum, we want to carry out CRH's normal load of M and A, which has been call. Demonstrated to add about $10,000,000 in shareholder EBITDA per year. So very, very strong in terms call. Of the ability that they've had and just the remarkable consistency of which they purchased. So I think that's call. Something that we look forward to this year and depending on what opportunities we see, it could be enhanced. But yes, I think at minimum, we'd like to maintain their current pace. Call. Okay, thanks. And if it was to accelerate, is the infrastructure in place there or would there be need to be maybe some more heads on the corp dev side? Call. It's a good question. I do think it's possible to see an acceleration without adding corp dev resources call. To my knowledge, but I also think that if you want to materially catalyze that and grow that, you would probably need to add heads. And the team call. Has been expanded recently just in the past few months. So, they've demonstrated the ability to acquire call. And train and get people up to speed and really be able to activate them. So it's a very It's one of the things that really impressed us about the company, frankly, is just how extensible and professional the corp dev process is. Of course, we're capital allocators, so call. We knew what to look for. We were very focused on what that process was and had multiple calls call. And due diligence touch points there. And again, we think we didn't just buy a lot of cash flow, we bought a cash flow machine call that gives us exposure to thousands of practitioners. That's why we're so darn comfortable call about this acquisition and how we were absolutely willing to go to the mat with anyone call. And you'll see our performance over the next year. Great. Thanks. That's helpful. Call. Thank you. Next question will be from Rob Goff at Echelon. Please go ahead. Thank you very much for taking my question. My question would be about Circle Medical. Could you talk to your pilot and how you might see an expansion along those lines? Is it by Clinic by clinic or is it by 10s or 15s? How do you see that unfolding? Yes, it's a really good question, Rob. I think that this Sort of a new initiative and the company as you know has a very Silicon Valley DNA associated with it. And so it came out of Y Combinator. It's kind of refers to itself as a full stack call. Primary Care Business, so they built incredible amounts of software. They basically built almost an entire EMR in addition to a telehealth call. Business. And so, I think that just their strength in technology will favor telehealth expansion. Call. This pilot, I think, again, with the Silicon Valley roots, it's very much, let's see how it goes, let's see what the strengths and weaknesses are. Call. I find Silicon Valley companies take that nail it, dense scale it approach. So let's see call. If this becomes a really strong growth avenue for the business, I mean the business has demonstrated that it can grow substantially without call. Driving additional clinical footprint, but I think the founders and the operators really believe it's important to continue to seed markets because it call. Something that we do up here as well, like what really sets Well apart is that we have both the physical clinical and the telehealth and it's So hard to match us and strengthen that in that way. I'll also add that we've had conversations with Circle Medical about leveraging Wells' balance sheet to help with that because of course, Welles interested in growing its clinical business out of the border. And so expect to see collaboration on that level. Call. So either cash deployed through Circle Medical and enabling and acquiring clinics or through Well partnering We've just a lot of options in how we grow that business. Thank you. And as a follow-up, With your reference to nail it and scale it, would you say that the hammer is in your hand or what sort of timeline might we look for? Call. That's a good question. I think it's really going to be call? Nothing that happens over days, weeks. I think it's more months to sort of see. And I'll only say that because the growth has been so strong on the virtual side. Call. The company recently dramatically beefed up its digital marketing expertise, and That's been really, really helpful. It's really impressive what they did. I mean, think about call. The big Q4 contribution we got from them and they weren't even in part of Q4, and of course, a lot of that was COVID driven, but then they have not seen call. Really a decline, they've maintained that volume even having COVID completely drop off because of the U. S. Progress. Call. And so why is that? How are they able to do that? I mean, I think that's one of the sort of hidden gem stories that people are not aware about call. With Circle Medical. Circle Medical benefited greatly from COVID, but has pivoted and has been able to maintain It's strong volumes by leveraging other conditions and going after those. Call. We understand that management has plans to grow this year extensively and they're very focused on a growth call. That involves really activating their strength of digital marketing and the product superiority that they have given their NPS scores. Call. I think the clinical side of things is more sort of gravy, if you will, like, hey, let's see if we call. Grow without necessarily having to buy clinics and have these clinics take on our technology infrastructure. Call. Thank you. Thank you. Next question will be from David Newman at Desjardins. Please go ahead. Call. Good morning, folks. Hi, David. I just want to ask a question on mental health. Obviously, as we get further and further into COVID and call. That's become a been almost a crisis here. And the stigma has been somewhat removed, I think, on coming through the pandemic. It's an area that obviously you haven't focused on as much. But is there do you have plans afoot either Your LOIs or others where you want to kind of step up your game on the mental health side? Call. Yes. Thanks for bringing that up, David. I fully agree with you. I've been talking to some folks We're in public health and what they're telling me is that it's a public health tsunami concern. Call. There is a lot going on in that area. We are supporting mental health practitioners primarily through call. Our telehealth businesses, actually all of them, ADRA Care has mental health call. Practices that are supported through their practice management capabilities and telehealth capabilities. InSig has mental health practitioners call on their platform and of course Circle as well. It's one of the areas where they've been really making a lot of progress call in terms of different mental health related ailments. And so call. We are in this area. We don't talk about it much, but we are definitely mobilizing against it. Call. Your comment about the LOIs is it rings true. We do have call. Intent to beef up our area the area here, and we are very excited about it. Call. So keep in mind too that it's something that we see extensively in our clinical business. So we are call. Today, a substantial provider of mental health services, but we feel that this is an area that we can really grow and it's an area where we have tremendous tools. Call. So yes, stay tuned. Excellent. And then my second question would be just ahead of the U. S. Listing, call. Is there things that you want to cover off or strategically, operationally or financially before the milestones you're looking at Before considering that U. S. Listing, is there something you need to see before you go down that path? Yes. I mean, listen, I think we now have Quantum to do it, but I think that there are a couple of these LOIs that we think are really important to get across that if we can call. Get to that $400,000,000 plus quantum and $100,000,000 plus EBITDA. I mean, there will be very few assets call. InTech enabled healthcare with that kind of profitability structure. So that's really, really exciting because it's one thing to be in the U. S, It's another thing to be in the U. S. As a distinct and unique asset that's driving profitability better than most other assets. The other thing that I'll mention is something that I know you pay a lot of attention to is we're really paying attention to our weighting. This is a question that came up earlier as well. Call. We think that it's really important that heading into that IPO, we also continue to demonstrate solid weighting towards digital. Call. So it's something that's on our minds and definitely driving some of our deal making in the next little while. Perfect. Thanks, Hamed. Thanks, David. Call. Thank you. We have time for one more question from Justin Keyword at Stifel. Please go ahead. Call. Thank you. I appreciate it. I just had a follow-up question on organic growth and cross sale opportunities. I know there's a few rates mentioned for the different business units. Call. But one, if you're able to provide the overall organic growth rate for Q1 and also if you're able to characterize Delta back growth If it was the result of cross selling products amongst the units or if it was the result of independent business units just doing that much better? Call. Yes. Thanks, Justin. We're really pleased at our organic growth. We didn't provide a blended organic growth call. But I can tell you that if we're talking year over year type growth, I mean, if you just look at our clinical division, call. We didn't acquire much in the clinical division, so a lot of that growth came call. Organically, we continue to see pretty much strong growth throughout. I think It's tough to characterize this specifically as again a specific number right now because we don't disclose that. But I will tell you that call. Most of the assets that we have are probably we're seeing better than double digit, like Allied Health call. Is seeing very strong double digit growth. Obviously, the year over year growth in the telehealth assets, of course, we didn't own a lot of them On a year over year basis, but to characterize the trajectory of those businesses, they're seeing very strong organic growth. But it is An area where we're looking to provide more disclosure, but at this point in time, we just haven't published that number. Call. Okay. Appreciate that. Thank you for taking my question. Thank you. Thank you. And at this time, I would like to turn the call back to Mr. Shabazzi. Call. Well, thanks very much. And in closing, I just want to thank you all for joining us and of course thank our shareholders and investors for their Continued support. The capital markets have been very supportive of our vision and enabled us with the funding we need to pursue our goals. This means a lot to us. Call. We take that very seriously. We work very hard and we diligent assets extensively. Call. Your heart might be warm to know that we reject a lot of deals that don't meet our stringent requirements, particularly in areas of cybersecurity. Call. And so the rigor continues and might I say as the company has grown, call. Our inbound has exploded. There are many people well as seen as a blue chip company as an aspirational buyer call. And as a result of that, we have dramatically tightened up our diligence. And so our and call. This in my view is a critical point where a lot of companies go wrong. And my mentors have made me focus on this extensively. Call. And it's for that reason that I feel that we will continue to really excel as a business because we are looking after your money. Call. I'd also like to thank Well's senior management team and all our employees and contractors for their tremendous effort, especially during call. This pandemic, which continues to wear on all of us. And of course, thank our team of doctors and frontline workers call to keep our clinics open and provide just the unbelievable patient care that we've been able to provide. So thank you and look forward to call. Seeing you next quarter. Of course, next quarter, we will have more than 2 months contribution from CRH Medical. We are expecting call. Absolutely blowout numbers. And our other business is continuing giving you the touch point right now. Call. Their businesses are looking good and we are feeling really excited about the balance of this year. And we hope you're getting vaccinated call. And you're staying healthy and thanking you for your support. Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.