Andlauer Healthcare Group Reports First Quarter 2022 Results

May 4, 2022

TORONTO, May 4, 2022 /CNW/ – Andlauer Healthcare Group Inc. (TSX: AND) (“AHG” or the “Company”) today reported its financial results for the three-month period ended March 31, 2022 (“Q1 2022”).

Q1 2022 Summary

  • Revenue increased 54.9% to $148.4 million, compared to $95.8 million in the three months ended March 31, 2021 (“Q1 2021”);
  • Operating income increased 45.0% to $24.2 million, compared to $16.7 million in Q1 2021;
  • Net income increased 41.9% to $16.5 million, compared to $11.6 million in Q1 2021;
  • Total comprehensive income increased to $13.5 million, or $0.39 per share (diluted) compared to $11.6 million, or $0.30 per share (diluted) in Q1 2021;
  • EBITDA1 increased 54.5% to $39.4 million, compared to $25.5 million in Q1 2021;
  • EBITDA Margin1 was 26.5%, compared to 26.6% in Q1 2021;
  • AHG continued to provide logistics and distribution, specialized transportation, and packaging solutions to certain of its manufacturer, 3PL provider, wholesaler and government clients that are involved in the Canadian supply of COVID-19 vaccines and ancillary products. In Q1 2022, the Company’s COVID-19 pandemic-related revenue comprised approximately 5.1% of total revenue, compared to approximately 3.9% in Q1 2021; and
  • On March 1, 2022, AHG acquired 100% of the issued and outstanding shares of Logistics Support Unit (LSU) Inc. (“LSU”) for consideration of approximately $30.0 million before customary working capital adjustments. LSU is a third-party logistics provider offering specialty pharmacy, warehousing, distribution and order management services throughout Canada to national and international companies as well as government clients in the pharmaceutical, medical and biotechnology sectors. The purchase price was financed through the issuance of 154,639 subordinate voting shares and cash of approximately $22.5 million provided by a combination of cash on hand and by drawing on the Company’s credit facilities.

“Our strong financial performance in the first quarter, including year-over-year increases in revenue and EBITDA1 of greater than 50%, reflects the significant impact of our acquisitions in 2021 and steady organic growth,” said Michael Andlauer, Chief Executive Officer of AHG. “We continued to advance our acquisition program in the first quarter with the purchase of LSU, which further strengthens our healthcare logistics product line and market presence in Quebec. The recent increase to our quarterly dividend highlights our strong cash flow generation and positive business outlook. We look forward to driving continued growth ahead in both our Canadian and U.S. operations.”

Selected Consolidated Financial Summary

Three months ended March 31,

($CAD 000s, except per share amounts)





        Logistics & Distribution



20.3  %

        Packaging Solutions



1.9  %

Healthcare Logistics Segment



17.2  %

        Ground Transportation



81.9  %

        Air Freight Forwarding



15.1  %

        Dedicated and Last Mile Delivery



37.7  %

        Intersegment Revenue



25.5  %

Specialized Transportation Segment



75.0  %

Total revenue



54.9  %

Operating expenses



57.0  %

Operating income



45.0  %

Net income



41.9  %

        Foreign currency translation adjustment



Total comprehensive income



16.3  %

        Earnings per share – basic

$  0.39

$  0.31

$  0.08

        Earnings per share – diluted

$  0.39

$  0.30

$  0.09

Select financial metrics





        EBITDA Margin1




Q1 2022 Financial Results

Revenue for Q1 2022 increased by 54.9% to $148.4 million, compared with $95.8 million in Q1 2021. The acquisitions of LSU, Skelton Canada Inc. (“Skelton”), Skelton USA Inc. (“Skelton USA“) and T.F. Boyle Transportation, Inc. (“Boyle Transportation”) accounted for approximately $40.5 million of the $52.6 million increase, with the remaining increase attributable to organic growth as described below.

Revenue for the healthcare logistics segment totaled $39.0 million, an increase of 17.2% compared with Q1 2021. The increase was primarily attributable to the 20.3% year-over-year growth in the Company’s logistics and distribution product line in Q1 2022, reflecting greater outbound order handling activities and the acquisition of LSU. AHG’s packaging solutions also contributed to growth in the healthcare logistics segment, with revenue totaling $5.8 million in the quarter, an increase of 1.9% compared to Q1 2021.

Revenue in the specialized transportation segment totaled $109.3 million, an increase of 75.0% compared with Q1 2021. The increase was attributable to: 81.9% growth in the Company’s ground transportation product line driven by incremental revenue from the Skelton, Skelton USA and Boyle Transportation acquisitions of approximately $38.3 million, higher volume from the Company’s existing client base, and higher fuel costs passed on to customers as a component of pricing, as well as year-over-year growth in AHG’s air freight forwarding and dedicated and last mile delivery product lines of 15.1% and 37.7%, respectively. Growth in air freight forwarding was attributable to increased fuel costs passed on to customers and an increase in weight shipped of approximately 1.7%, and growth in dedicated and last mile delivery was attributable to incremental revenue from route expansion in Western Canada and increases in fuel costs passed on to customers.

Cost of transportation and services was $72.7 million, or 49.0% of revenue, compared with $41.3 million, or 43.1% of revenue, for Q1 2021. The higher cost of transportation and services for Q1 2022 was primarily attributable to the acquisitions of Skelton, Skelton USA and Boyle Transportation, and higher fuel costs in line with the increases in revenue related to fuel prices. The increase in the operating ratio for Q1 2022 reflects the Skelton, Skelton USA and Boyle Transportation acquisitions, which have increased the relative proportion of the specialized transportation segment as a percentage of AHG’s total consolidated revenue and cost profiles.

Direct operating expenses were $24.8 million, or 16.7% of revenue, compared with $20.6 million, or 21.6% of revenue, for Q1 2021. The increase was primarily attributable to growth in the Accuristix logistics and distribution operations, and the acquisition of LSU. AHG’s specialized transportation acquisitions (Skelton, Skelton USA and Boyle Transportation) have lower facility-related costs compared to the healthcare logistics segment, which resulted in a lower direct operating expense operating ratio in Q1 2022 as compared to Q1 2021.

Selling, general and administrative (“SG&A”) expenses were $11.2 million, or 7.6% of revenue, compared with $8.7 million, or 9.1% of revenue, for Q1 2021. Increased SG&A expenses for Q1 2022 were attributable to the acquisitions of LSU, Skelton, Skelton USA and Boyle Transportation, partially offset by a $0.5 million reduction in transaction costs associated with acquisitions. The decrease in SG&A expenses as a percentage of revenue reflects operating leverage generated within SG&A functions compared to revenue growth.

Operating income for Q1 2022 was $24.2 million, an increase of 45.0% compared to $16.7 million for Q1 2021. Approximately $5.4 million of the increase was attributable to the acquisitions of LSU, Skelton, Skelton USA and Boyle Transportation, with the remainder attributable to organic growth.

Net income for Q1 2022 was $16.5 million, an increase of 41.9% compared to $11.6 million for Q1 2021. Higher segment net income before eliminations for both the healthcare logistics and specialized transportation operating segments contributed to the increased profitability in Q1 2022 on a consolidated basis.

Total comprehensive income for Q1 2022 was $13.5 million, or $0.39 per share (diluted), compared to $11.6 million, or $0.30 per share (diluted) in Q1 2021. Total comprehensive income differs from net income due to the acquisition of foreign operations (Skelton USA and Boyle Transportation), which resulted in a negative foreign currency translation adjustment of $3.0 million in the quarter.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ increased by 54.5% to $39.4 million, from $25.5 million in Q1 2021. The increase was due to the factors discussed above and reflects the incremental contributions from acquisitions and organic growth in both of AHG’s operating segments. EBITDA Margin¹ was 26.5%, compared to 26.6% in Q1 2021. The performance of AHG’s two operating segments continued to result in strong and stable EBITDA1 margins. Inter-segment eliminations have increased with the Skelton and LSU acquisitions, which has also contributed to our EBITDA Margin1.


The Company paid a dividend (encompassing the period from January 1, 2022 to March 31, 2022) in the amount of $0.06 per subordinate voting share and multiple voting share on April 19, 2022.

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 $0.06 per subordinate voting share and multiple voting share on an ongoing basis.

Shares Outstanding

As at March 31, 2022, there were 18,223,429 subordinate voting shares and 23,600,000 multiple voting shares outstanding.

Financial Statements

AHG’s unaudited interim condensed consolidated financial statements and related Management’s Discussion & Analysis (“MD&A”) for Q1 2022 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 5, 2022 at 8:30 a.m. (ET). The dial-in numbers for participants are (416) 764-8650 or (888) 664-6383.

The call will be webcast live at:

To access a replay of the conference call dial (416) 764-8677 or (888) 390-0541, passcode: 596601 #. The replay will be available until May 12, 2022. The webcast will be archived on the Company’s website following 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 responses to the outbreak of COVID-19. Particularly, information regarding the Company’s growth expectations, performance, achievements, payment of dividends, prospects, financial targets or outlook, intentions, opportunities or the potential impact of, and response measures to be taken with respect to, COVID-19 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, 2022. 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, 2022, 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 (loss) and comprehensive income (loss) for the period before: (i) income tax (recovery) expense; (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 & 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