Premier Health loses $3.53-million in Q3

Executive Summary

• Premier Health of America Inc. reported unaudited consolidated financial results for the third quarter ended June 30, 2025, showing a significant decline in Adjusted EBITDA compared to the same period in 2024.
• The company reported a net loss of $3.5 million for the quarter, an improvement from the $8.4 million loss in the prior year period, driven by lower Adjusted EBITDA offset by favorable fair value adjustments and lower income taxes.
• Operational challenges persist due to Quebec's Bill 10 impacting the per diem segment (now ~4% of revenue) and volume reductions in British Columbia and Ontario due to health authority centralization and wildfire-related evacuations.

Key Details

• Adjusted EBITDA: $22,000 for Q3 2025, down significantly from $367,000 in Q3 2024.
• Net Loss: $3.5 million for Q3 2025, compared to a net loss of $8.4 million in Q3 2024.
• Revenue Drivers & Headwinds:
  • Decline in volume in Quebec and British Columbia.
  • Quebec's Bill 10 continues to impact the per diem segment, which now represents approximately 4% of revenues.
  • Travel nurse and northern communities' services performing well generally, except in B.C.
  • B.C. volume reduction attributed to health authorities centralizing service acquisitions and delays from new contract rules.
  • CHCA experienced declines in hours and revenue in May and June due to contract cancellations from wildfire-related evacuations in Ontario.
• Operational Updates:
  • Continued workforce reduction in Quebec and corporate structure.
  • Cost savings are on track with amounts disclosed in Q4 2024.
  • Cost structure at the B.C. subsidiary is being adapted to market conditions.
  • Per diem segment is largely non-existent; focus shifting fully to travel nurses.
  • Evaluating entry into the home care sector and responding to calls for tenders in Quebec and Ontario.
• Strategic Focus: Commitment to cost reduction, debt management, operational efficiency, and pursuing organic growth opportunities.

Notable Quotes

• "Our cost reduction plan is still progressing and additional efforts were deployed in the current quarter. The per diem segment is largely non-existent and our focus will fully shift to travel nurses. The home care sector presents interesting opportunities, and we are evaluating our capacity to gradually enter this market, as well as calls for tenders in Quebec and Ontario. In the short term, we remain committed to cost reduction, debt management, operational efficiency and pursuing organic growth opportunities," said Guy Daoust, interim chief executive officer of Premier Health.