Andlauer Healthcare Group Reports 2023 First Quarter Results

May 3, 2023

TORONTO, May 3, 2023 /CNW/ – Andlauer Healthcare Group Inc. (TSX: AND) ("AHG" or the "Company") today reported its financial results for the three-month period ended March 31, 2023 ("Q1 2023").  

Q1 2023 Summary

  • Revenue increased 11.1% to $164.8 million, compared to $148.4 million for the three-month period ended March 31, 2022 ("Q1 2022");
  • Operating income was $23.7 million, compared to $24.2 million in Q1 2022;
  • Net income totaled $16.5 million, or $0.39 per share (diluted), compared to $16.5 million, or $0.39 per share (diluted), in Q1 2022;
  • Total comprehensive income increased to $16.3 million from $13.5 million in Q1 2022;
  • EBITDA increased 2.7% to $40.5 million, compared to $39.4 million in Q1 2022; and
  • EBITDA Margin was 24.6% compared to 26.5% in Q1 2022.

"We generated solid revenue growth in our first quarter despite the decline in revenue related to COVID-19 vaccines and ancillary products. Our margins and net earnings for the quarter reflect a year-over-year decline in contribution from our U.S. truckload operations, as the rate premiums we were able to capture in Fiscal 2022 related to equipment and driver shortages have now diminished," said Michael Andlauer, Chief Executive Officer of AHG. "Looking ahead to the balance of the year, we expect our business to continue to perform well despite the lack of COVID-19 tailwinds. We continue to pursue acquisitions to further expand our platform and drive incremental growth."   

Selected Consolidated Financial Summary

Three months ended March 31,

($CAD 000s, except per share amounts)





Logistics & distribution



21.9 %

Packaging solutions



(4.3) %

Healthcare logistics segment



18.0 %

Ground transportation



11.0 %

Air freight forwarding



(0.7) %

Dedicated and last mile delivery



10.9 %

Intersegment revenue



26.9 %

Specialized transportation segment



8.6 %

Total revenue



11.1 %

Operating expenses



13.6 %

Operating income



(2.0) %

Net income



0.3 %

 Foreign currency translation adjustment




Total comprehensive income



20.9 %

Earnings per share – basic

$ 0.39

$ 0.39

Earnings per share – diluted

$ 0.39

$ 0.39

Select financial metrics




2.7 %

EBITDA Margin¹

24.6 %

26.5 %

(190 bps)

Q1 2023 Financial Results

Revenue for Q1 2023 increased by 11.1% to $164.8 million, compared with $148.4 million in Q1 2022. The acquisition of Logistics Support Unit Inc. ("LSU") accounted for approximately $3.2 million of the $16.4 million increase, with the remaining growth attributable to fuel surcharge revenue and organic growth as described below. The Company’s revenue related to COVID-19 vaccines and ancillary products declined to approximately 0.8% of consolidated revenue in Q1 2023, compared to approximately 5.5% of revenue in Q1 2022.

Revenue for the healthcare logistics segment totaled $46.0 million, an increase of 18.0%, or approximately $7.0 million, compared with Q1 2022. The increase was primarily attributable to the 21.9% year-over-year growth in the Company’s logistics and distribution product line revenue, reflecting greater outbound order handling activities for Accuristix, increases in transportation billings impacted by fuel surcharge programs from carriers, which are passed on to customers, and $3.2 million in incremental revenue from the acquisition of LSU. The overall increase in segment revenue was partially offset by a 4.3% year-over-year decline in AHG’s packaging solutions revenue, reflecting the loss of one of the Company’s packaging customers, partially offset by organic growth from the Company’s remaining base of customers.  

Revenue in the specialized transportation segment totaled $118.7 million, an increase of 8.6%, or approximately $9.4 million, compared with Q1 2022. The increase was partially attributable to the 11.0% growth in the Company’s ground transportation product line driven by higher fuel costs passed on to customers as a component of pricing. AHG’s ground transportation revenue, excluding fuel, in its Canadian network increased by approximately 2.6%. The Company experienced downward pressure on its US-based truckload rates as opportunities to obtain rate premiums in the year ended December 31, 2022 ("Fiscal 2022") related to equipment and driver shortages have now diminished. AHG believes that its US-based ground transportation revenue and related margins have returned to pre-pandemic levels in Q1 2023, and the Company does not foresee a return to the premiums achieved in Fiscal 2022, which may impact AHG’s comparative growth and margins in future periods.

AHG’s dedicated and last mile delivery product line also contributed to growth in the specialized transportation segment, with a 10.9%, or $1.7 million, year-over-year increase in revenue, reflecting ongoing route expansion and increases in fuel costs passed on to customers. Air freight forwarding revenue was $7.5 million in Q1 2023 compared to $7.6 million in Q1 2022, reflecting approximately 5.5% lower shipment volume, partially offset by higher rates and fuel costs passed on to customers.

Cost of transportation and services was $84.2 million, or 51.1% of revenue, compared with $72.7 million, or 49.0% of revenue, for Q1 2022. The higher cost of transportation and services for Q1 2023 was primarily attributable to higher fuel costs in line with the increases in revenue related to fuel prices. The increased operating ratio reflects lower pricing in AHG’s U.S. truckload operations. 

Direct operating expenses were $27.0 million, or 16.4% of revenue, compared with $24.8 million, or 16.7% of revenue, for Q1 2022. Direct operating expenses in Q1 2023 reflect outbound volume growth in AHG’s Accuristix logistics and distribution operations and the acquisition of LSU on March 1, 2022.

Selling, general and administrative ("SG&A") expenses were $13.1 million, or 8.0% of revenue, compared with $11.2 million, or 7.6% of revenue, for Q1 2022. The increase reflects growth in AHG’s operations and is in line with the Company’s expected SG&A expenses as a percentage of revenue.

Operating income totaled $23.7 million, a decrease of $0.5 million, or 2.0%, compared to $24.2 million for Q1 2022. The decrease reflects reduced contributions from Boyle Transportation and Skelton USA and the decline in COVID-19 vaccine and related ancillary revenue.

Net income was $16.5 million, or $0.39 per share (diluted), compared with $16.5 million, or $0.39 per share (diluted), in Q1 2022. Higher segment net income before eliminations for AHG’s healthcare logistics segment was offset by lower segment net income from the Company’s specialized transportation segment.

Total comprehensive income was $16.3 million, compared to $13.5 million in Q1 2022. Total comprehensive income differs from net income due to the acquisition of foreign operations (Boyle Transportation and Skelton USA), which resulted in a negative foreign currency translation adjustment of $0.2 million in Q1 2023 compared to a negative foreign currency translation adjustment of $3.0 million in Q1 2022.

Earnings before interest, taxes, depreciation and amortization ("EBITDA")¹ totaled $40.5 million compared with $39.4 million for Q1 2022. The increase is due to the factors discussed above and reflects organic growth in Canada, partially offset by lower contributions from the Company’s US-based truckload operations and lower revenue related to COVID-19 vaccines and ancillary products. EBITDA Margin¹ was 24.6%, compared to 26.5% in Q1 2022.


The Company paid a dividend (encompassing the period from January 1, 2023 to March 31, 2023) in the amount of $0.08 per subordinate voting share and multiple voting share on April 17, 2023.

Subject to financial results, capital requirements, available cash flow, corporate law requirements and any other factors that AHG’s Board of Directors may consider relevant, it is the Company’s intention to declare a quarterly dividend of $0.08 per subordinate voting share and multiple voting share on an ongoing basis.

Shares Outstanding

As at March 31, 2023, there were 20,074,253 subordinate voting shares and 21,840,000 multiple voting shares issued and outstanding.

Financial Statements

AHG’s unaudited interim condensed consolidated financial statements and related Management’s Discussion & Analysis ("MD&A") for Q1 2023 are available on the Company’s website at and on the Company’s profile on SEDAR at

Conference call and webcast

Michael Andlauer, Chief Executive Officer, and Peter Bromley, Chief Financial Officer, will host a conference call for analysts and investors on Thursday, May 4, 2023 at 8:30 a.m. (ET).

To join the conference call without operator assistance, you may register and enter your phone number at: to receive an instant automated call back. Alternatively, you can dial (416) 764-8650 or (888) 664-6383 to reach a live operator that will join you into the call.

You can access a live webcast of the call under the Presentations & Events section of AHG’s investor website at:

To access a replay of the conference call, dial 416-764-8677 or (888) 390-0541, passcode: 258596 #. The replay will be available until May 11, 2023. The webcast will be archived on the Company’s website following the conclusion of the call.

About AHG

AHG is a leading and growing supply chain management company offering a robust platform of customized third-party logistics ("3PL") and specialized transportation solutions for the healthcare sector. The Company’s 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. AHG’s specialized transportation services in Canada, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients’ healthcare transportation needs. Through its complementary service offerings, available across a coast-to-coast distribution network, AHG strives to accommodate the full range of its clients’ specialized supply chain needs on an integrated and efficient basis. The Company also provides specialized ground transportation services, primarily to the healthcare sector, across the 48 contiguous U.S. states. For more information on AHG, please visit:

Forward-looking Information

This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information may relate to the Company’s future financial outlook and anticipated events or results and may include information regarding the Company’s financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans, objectives and expectations with respect to COVID-19. Particularly, information regarding the Company’s growth expectations, performance, achievements, payment of dividends, prospects, potential acquisitions, financial targets or outlook, intentions, and expectations with respect to the distribution of COVID-19 vaccines and ancillary products is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", "commencing" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, 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 or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company.

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Cautionary Note Regarding Forward-Looking Information" in the Company’s MD&A for the three-month period ended March 31, 2023. Forward-looking information is 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 factors discussed under the heading "Risk Factors" in the Company’s annual information form dated March 2, 2023, which is available on the Company’s profile on SEDAR at If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Accordingly, investors should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents the Company’s expectations as of the date of this news release and are subject to change after such date and the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

(1) Non-IFRS Financial Measures

This news release contains certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. AHG uses non-IFRS measures including "EBITDA" and "EBITDA Margin". These non-IFRS measures are used to provide investors with supplemental measures of the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. AHG also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. AHG management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation.


AHG defines EBITDA as net income for the period before: (i) income tax expense (recovery); (ii) interest income; (iii) interest expense; and (iv) depreciation and amortization.

AHG believes EBITDA is a useful measure to assess the Company’s financial performance because it provides a more relevant picture of operating results by excluding the effects of expenses that are not reflective of the Company’s underlying business performance.


AHG defines EBITDA Margin as EBITDA divided by revenue. EBITDA Margin represents a measure of the Company’s profitability expressed as a percentage of revenue. AHG believes EBITDA Margin is a useful measure to assess the Company’s financial performance because it helps quantify the Company’s ability to convert revenues generated from clients into EBITDA.

Reconciliation of EBITDA


($CAD 000s)

Three Months Ended
March 31,



Net income



Income tax expense



Interest expense



Interest income



Depreciation and amortization






SOURCE Andlauer Healthcare Group Inc.

For further information: Peter Bromley, Chief Financial Officer, Tel: (416) 744-4900; Bruce Wigle, Investor Relations, Tel: (647) 496-7856