Andlauer Healthcare Group Reports Second Quarter 2022 Results

August 9, 2022

TORONTO, Aug. 9, 2022 /CNW/ – Andlauer Healthcare Group Inc. (TSX: AND) (“AHG” or the “Company”) today reported its financial results for the three and six-month periods ended June 30, 2022 (“Q2 2022” and “YTD 2022”, respectively).

Q2 2022 Summary
  • Revenue increased 58.1% to $169.4 million, compared to $107.1 million for the three months ended June 30, 2021 (“Q2 2021”);
  • Operating income increased 60.5% to $30.2 million, compared to $18.8 million in Q2 2021;
  • Net income increased 60.8% to $21.0 million, compared to $13.1 million in Q2 2021;
  • Total comprehensive income increased to $27.6 million, or $0.49 per share (diluted) compared to $13.1 million, or $0.33 per share (diluted) in Q2 2021;
  • EBITDA1 increased to $46.3 million compared to $30.0 million in Q2 2021;
  • EBITDA Margin1 was 27.3% compared with 28.0% in Q2 2021; and
  • 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 Q2 2022, the Company’s COVID-19 pandemic-related revenue comprised approximately 2.6% of total revenue, compared to approximately 5.3% in Q2 2021.

“Our strong growth in the quarter and year-to-date reflects the significant impact of our U.S. acquisitions, our acquisition of Quebec-based LSU in the first quarter of this year and continued organic growth across our product lines,” said Michael Andlauer, Chief Executive Officer of AHG. “During the second quarter, Skelton USA and Boyle Transportation generated $32.5 million in incremental revenue for our ground transportation product line and LSU generated $7.8 million in incremental revenue for our logistics and distribution operations. While our second quarter revenue related to COVID-19 vaccines and ancillary products declined on a year-over-year basis, our packaging revenue in the quarter exceeded what we generated for the same period during Fiscal 2019 for the first time since the onset of the pandemic, reflecting increased demand for consumer healthcare products.”

Selected Consolidated Financial Summary

Three months
ended June 30,

Six months
ended June 30,

($CAD 000s, except per share amounts)








Logistics & distribution



43.5 %



32.2 %

Packaging solutions



10.7 %



6.3 %

Healthcare Logistics segment



38.3 %



28.0 %

Ground transportation



70.8 %



75.9 %

Air freight forwarding



79.3 %



46.8 %

Dedicated and last mile delivery



27.6 %



32.2 %

Intersegment revenue



40.0 %



33.0 %

Specialized Transportation segment



67.7 %



71.1 %

Total revenue



58.1 %



56.6 %

Operating expenses



57.6 %



57.3 %

Operating income



60.5 %



53.2 %

Net income



60.8 %



51.9 %

 Foreign currency translation adjustment





  Total comprehensive income



111.2 %



66.5 %

Earnings per share – basic

$ 0.50

$ 0.34

$ 0.16

$ 0.90

$ 0.65

$ 0.25

Earnings per share – diluted

$  0.49

$  0.33

$ 0.16

$  0.88

$  0.63

$ 0.25

Select financial metrics




54.6 %



54.5 %

EBITDA Margin¹

27.3 %

28.0 %

(0.7 %)

27.0 %

27.3 %

(0.3 %)

Q2 2022 Financial Results

Revenue for Q2 2022 increased by 58.1% to $169.4 million, compared with $107.1 million in Q2 2021. The acquisitions of Logistics Support Unit (LSU) Inc. (“LSU”), Skelton USA Inc. (“Skelton USA“) and T.F. Boyle Transportation, Inc. (“Boyle Transportation”) accounted for approximately $40.3 million of the $62.3 million increase, with the remaining growth attributable to organic growth and fuel surcharge revenue as described below.

Revenue for the healthcare logistics segment totaled $48.0 million, an increase of 38.3%, or approximately $13.3 million, compared with Q2 2021. The increase was primarily attributable to the 43.5% year-over-year growth in the Company’s logistics and distribution product line in Q2 2022, 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 $7.8 million in incremental revenue from the acquisition of LSU. In addition, AHG’s packaging solutions generated 10.7% year-over-year revenue growth, as the easing of public health restrictions resulted in increased consumer travel, thereby increasing the demand for healthcare products such as sunscreen.

Revenue in the specialized transportation segment totaled $121.4 million, an increase of 67.7% compared with Q2 2021. The increase was attributable to: 70.8% growth in the Company’s ground transportation product line driven by incremental revenue from the Skelton USA and Boyle Transportation acquisitions of approximately $32.5 million, organic growth, 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 79.3% and 27.6%, respectively. Growth in air freight forwarding was attributable to an increase in weight shipped by customers and higher fuel costs passed on to customers as a component of pricing. 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 $82.8 million, or 48.9% of revenue, compared with $47.3 million, or 44.1% of revenue, for Q2 2021. The higher cost of transportation and services for Q2 2022 was primarily attributable to the acquisitions of 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 Q2 2022 reflects the 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 $28.3 million, or 16.7% of revenue, compared with $21.6 million, or 20.1% of revenue, for Q2 2021. The increase was primarily attributable to outbound volume growth for Accuristix and the acquisition of LSU. AHG’s specialized transportation acquisitions (Skelton USA and Boyle Transportation) have lower facility-related costs compared to the Company’s healthcare logistics segment, which resulted in the lower direct operating expense operating ratio in Q2 2022.

Selling, general and administrative (“SG&A”) expenses were $12.1 million, or 7.2% of revenue, compared with $9.2 million, or 8.6% of revenue, for Q2 2021. Increased SG&A expenses for Q2 2022 reflect the acquisitions of LSU, Skelton USA and Boyle Transportation. 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 totaled $30.2 million, an increase of $11.4 million, or 60.5%, compared to $18.8 million for Q2 2021. Approximately $3.9 million of the increase was attributable to the acquisitions of LSU, Skelton USA and Boyle Transportation, with the remainder attributable to organic growth.

Net income was $21.0 million compared with $13.1 million in Q2 2021. Higher segment net income before eliminations for both the Company’s healthcare logistics and specialized transportation operating segments contributed to the increased profit on a consolidated basis.

Total comprehensive income was $27.6 million, or $0.49 per share (diluted), compared to $13.1 million, or $0.33 per share (diluted) in Q2 2021. Total comprehensive income differs from net income due to the acquisition of foreign operations (Skelton USA and Boyle Transportation), which resulted in a positive foreign currency translation adjustment of $6.6 million in Q2 2022.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ increased 54.6% to $46.3 million, from $30.0 million for Q2 2021. The increase is due to the factors discussed above and reflects the incremental contributions from acquisitions and organic growth in both of the Company’s operating segments. EBITDA Margin¹ was 27.3%, compared to 28.0% in Q2 2021.


The Company paid a dividend (encompassing the period from April 1, 2022 to June 30, 2022) in the amount of $0.06 per subordinate voting share and multiple voting share on July 15, 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 $0.07 per subordinate voting share and multiple voting share on an ongoing basis.

Shares Outstanding

As at June 30, 2022, there were 18,227,675 subordinate voting shares and 23,600,000 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 Q2 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 Wednesday, August 10, 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: 807099 #. The replay will be available until August 17, 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 and six-month periods ended June 30, 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) 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
June 30,

Six Months Ended
June 30,





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