Alaris Closes Previously Announced Partner Contributions
21.12.2012 | Marketwired
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On December 19, 2012, the Corporation entered into an operating agreement and subscription agreement (collectively, the "Agility Agreements") with Agility. Pursuant to the Agility Agreements, Alaris contributed USD $12,500,000 (the "Agility Contribution") to Agility in exchange for a pre-tax annual preferred distribution of USD $2,000,000 (the "Agility Distribution") for the first full year after the Agility Contribution, which represents an expected initial pre-tax return of 16%. Agility is Alaris' ninth Private Company Partner (as defined below), and its second U.S. partnership. The Agility Distribution was funded with funds drawn on the Company's senior credit facility (the "Facility").
The Corporation also contributed $6,200,000 (the "KMH Contribution") to KMH on December 21, 2012 in exchange for an additional $918,518 annual preferred distribution (the "KMH Distribution") for the first full year following the KMH Contribution. The KMH Distribution is effective January 1, 2013. Alaris has now contributed an aggregate of $54,800,000 to KMH and, after giving effect to the KMH Contribution, the total aggregate distribution payable to Alaris from KMH is $8,269,200, on an annualized basis. The KMH Contribution was funded with funds drawn on the Corporation's Facility.
About Agility Health
Agility Health (www.agilityhealth.com) is a leading healthcare provider devoted to the rehabilitation of patient physical injuries and conditions. Established in 1968, Agility Health delivers personalized care through over one million therapy visits annually at more than 155 service sites in 14 states nationwide. The company is dedicated to providing exceptional value to the patients, clients and partners it serves through the provision of physical therapy, occupational therapy, speech pathology services and clinical management software. Agility Health's innovative clinical services, proven practice management systems and flexible partnership models help achieve optimal performance in a variety of settings, including outpatient clinics, hospitals, long-term care facilities and employer work sites.
About KMH:
KMH provides access to rapidly-evolving medical technology, state-of-the-art diagnostic equipment and highly qualified specialists in Canada and the United States. According to KMH management, KMH has grown from a single facility in 1988 to become the largest provider of Nuclear Cardiology services in North America.
KMH services include Nuclear Medicine, Cardiology and Magnetic Resonance Imaging (MRI) diagnostic services. Physician practice management solutions by KMH further enhance patient care by providing access to specialist consultations and treatment. According to KMH management, more than 85,000 patients visit KMH annually after being referred by physicians, insurance companies, employers and other third party service providers. KMH has successfully administered more than 600,000 cardiology, nuclear cardiology and nuclear medicine diagnostic tests and more than 40,000 magnetic resonance imaging scans. KMH consistently provides a high level of service which has created a strong rapport within the healthcare community. KMH is well recognized by more than 10,000 physicians and has established a preferred provider relationship within the insurance and health services industry.
About Alaris:
The Corporation provides alternative financing to a diversified group of private businesses ("Private Company Partners") in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions to Alaris from the Private Company Partners are structured as a percentage of a "top line" financial performance measure such as gross margin, same clinic sales, gross revenues and same-store sales and rank in priority to the owners' common equity position.
Forward-Looking Statements
This news release contains forward-looking statements as defined under applicable securities laws. Statements other than statements of historical fact contained in this news release may be forward-looking statements under applicable securities legislation, including, without limitation, management's expectations, intentions and beliefs concerning: the amount of the Agility and KMH Distributions and the return to Alaris. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. To the extent any forward-looking statements herein constitute a financial outlook, they were approved by management as of the date hereof and have been included to provide an understanding with respect to Alaris' financial performance and are subject to the risks and assumptions disclosed herein. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements are based will occur.
Statements containing forward-looking information by their nature involve numerous assumptions and significant known and unknown facts and uncertainties of both a general and a specific nature. Key assumptions include, but are not limited to assumptions that: the Private Company Partners will continue to grow and may require additional capital from Alaris in the future; the Canadian and U.S. economies will grow moderately over the next 12 months; interest rates will not rise in a material nature over the next 12 months; more private companies will require access to alternative sources of capital; and the Corporation will obtain required regulatory approvals on a timely basis. In determining the Corporation's expectations for economic growth, management primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
The forward-looking statements contained herein are subject to numerous known and unknown risks that may cause actual results to vary from those set forth in the forward-looking statements, including, but not limited to risks associated with: general economic conditions and changes in the financial markets; risks associated with the Private Company Partners and their respective businesses; a change in the ability of the Private Company Partners to continue to pay Alaris' preferred distributions; failure to obtain required regulatory approvals on a timely basis or at all; and changes in legislation on government regulations and the interpretations thereof. In addition, the information set forth under the heading "Risk Factors" in the Corporation's Annual Information Form dated March 14, 2012 (a complete copy of which can be found on SEDAR at www.sedar.com) identifies additional factors that could affect the operating results and performance of the Corporation and may cause the actual results of the Corporation to differ materially from those anticipated in forward-looking statements.
As forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the assumptions reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations will prove to be correct.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Alaris does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.
NOT FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
Contact
Alaris Royalty Corp.
Curtis Krawetz, Manager of Investor Relations, Analyst
403-221-7305