Andlauer Healthcare Group Reports Third Quarter 2022 Results

November 8, 2022

TORONTO, Nov. 8, 2022 /CNW/ – Andlauer Healthcare Group Inc. (TSX: AND) (“AHG” or the “Company”) today reported its financial results for the three and nine-month periods ended September 30, 2022 (“Q3 2022” and “YTD 2022”, respectively).

Q3 2022 Summary

  • Revenue increased 58.3% to $164.9 million, compared to $104.2 million for the three months ended September 30, 2021 (“Q3 2021”);
  • Operating income increased 65.9% to $27.9 million, compared to $16.8 million in Q3 2021;
  • Net income increased 55.9% to $19.0 million, compared to $12.2 million in Q3 2021;
  • Diluted earnings per share increased to $0.44 per share, compared to $0.31 per share in Q3 2021
  • Total comprehensive income increased to $32.9 million compared to $12.2 million in Q3 2021;
  • EBITDA1 increased 57.3% to $44.1 million, compared to $28.0 million in Q3 2021;
  • EBITDA Margin1 was 26.7% compared with 26.9% in Q3 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 Q3 2022, the Company’s COVID-19 vaccine-related revenue comprised approximately 2.8% of total revenue, compared to approximately 2.5% in Q3 2021.

“Our strong growth in revenue and profitability in the quarter and year-to-date reflects the significant impact of our recent acquisitions in both our healthcare logistics and specialized transportation segments, as well as continued organic growth, net of fuel surcharge revenue,” said Michael Andlauer, Chief Executive Officer of AHG. “We’re finishing the year with solid earnings momentum and a strong balance sheet, and we look forward to seizing further opportunities to expand our North American platform and build value for our stakeholders.”

Selected Consolidated Financial Summary

Three months
ended Sept. 30,

Nine months
 ended Sept. 30,

($CAD 000s, except per share amounts)








Logistics & distribution



47.0 %



37.2 %

Packaging solutions



20.8 %



10.5 %

Healthcare Logistics segment



43.5 %



33.1 %

Ground transportation



73.4 %



75.1 %

Air freight forwarding



25.2 %



39.8 %

Dedicated and last mile delivery



27.2 %



30.4 %

Intersegment revenue



38.3 %



34.8 %

Specialized Transportation segment



65.2 %



69.0 %

Total revenue



58.3 %



57.2 %

Operating expenses



56.8 %



57.1 %

Operating income



65.9 %



57.3 %

Net income



55.9 %



53.2 %

 Foreign currency translation adjustment





  Total comprehensive income



170.0 %



100.7 %

Earnings per share – basic

$ 0.45

$ 0.32

$ 0.13

$ 1.35

$ 0.96

$ 0.39

Earnings per share – diluted

$  0.44

$  0.31

$ 0.13

$  1.32

$  0.94

$ 0.38

Select financial metrics




57.3 %



55.5 %

EBITDA Margin¹

26.7 %

26.9 %

(0.2 %)

26.9 %

27.2 %

(0.3 %)

Q3 2022 Financial Results

Revenue for Q3 2022 increased by 58.3% to $164.9 million, compared with $104.2 million in Q3 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 $43.4 million of the $60.7 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 43.5%, or approximately $14.6 million, compared with Q3 2021. The increase was primarily attributable to the 47.0% 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 $8.9 million in incremental revenue from the acquisition of LSU. AHG’s packaging solutions also contributed to this segment’s revenue growth, with a 20.8% year-over-year increase in revenue.

Revenue in the specialized transportation segment totaled $116.9 million, an increase of 65.2% compared with Q3 2021. The increase was attributable to: 73.4% growth in the Company’s ground transportation product line driven by incremental revenue from the Skelton USA and Boyle Transportation acquisitions of approximately $34.5 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 25.2% and 27.2%, respectively. Growth in air freight forwarding was primarily attributable to 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 ongoing route expansion and increases in fuel costs passed on to customers.

Cost of transportation and services was $81.0 million, or 49.1% of revenue, compared with $47.5 million, or 45.6% of revenue, for Q3 2021. The higher cost of transportation and services for Q3 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 Q3 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 17.1% of revenue, compared with $21.4 million, or 20.5% of revenue, for Q3 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 Q3 2022.

Selling, general and administrative (“SG&A”) expenses were $11.3 million, or 6.8% of revenue, compared with $8.3 million, or 7.9% of revenue, for Q3 2021. Increased SG&A expenses for Q3 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 $27.9 million, an increase of $11.1 million, or 65.9%, compared to $16.8 million for Q3 2021. Approximately $4.8 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 $19.0 million, or $0.44 per share (diluted), compared with $12.2 million, or $0.31 per share (diluted), in Q3 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 $32.9 million, compared to $12.2 million in Q3 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 $13.9 million in Q3 2022.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ increased 57.3% to $44.1 million, from $28.0 million for Q3 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 26.7%, compared to 26.9% in Q3 2021. Approximately 1.0% of EBITDA margin in Q3 2021 was attributable to the impact of the share of profit of Skelton USA, which was accounted for as an equity investee during that period.


The Company paid a dividend (encompassing the period from July 1, 2022 to September 30, 2022) in the amount of $0.07 per subordinate voting share and multiple voting share on October 17, 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 September 30, 2022, there were 18,257,283 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 Q3 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, November 9, 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: 866537 #. The replay will be available until November 16, 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
Sept. 30,

Nine Months Ended
Sept. 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