TEL AVIV, Israel & ZURICH & NEW YORK–(BUSINESS WIRE)–$SHLT–Regulatory News:
SHL Telemedicine Ltd. (NASDAQ: SHLT; SIX Swiss Exchange: SHLTN) (“SHL” or the “Company”), a leading provider and developer of advanced personal telemedicine solutions, announced today its results for half-year 2023, emphasizing stable revenues and strategic growth initiatives.
In H1 2023, SHL maintained stable revenues while making significant strategic advancements across all operations. The Company made substantial investments in Germany, where it launched the Doctors’ Virtual Visits services and then witnessed a steady increase in the adoption of the service. In the US, the Company witnessed the growing utilization and distribution of the SmartHeart® ECG platform by top-tier strategic customers, with ongoing rollouts to CVS MinuteClinic locations. Moreover, the Company’s long-standing operations in Israel remained robust and profitable.
H1 2023 Financial Highlights:
*All comparable previous periods figures are in constant currency1.
- Total revenues rose to USD 29.0m, a slight increase from USD 28.8m in 1HY2022.
- Revenues from the Company’s operation in Israel increased by 3% compared to 1HY2022, with revenues standing at USD 21.6m.
- Revenues from the Company’s operation in Germany amounted to USD 6.8m, slightly down from USD 7.0m in 1HY2022 but up from USD 6.7m in 2HY2022.
- Adjusted EBITDA2 for the Company was USD 0.4m, similar to USD 0.6m in 2HY2022 and down from USD 3.1m in 1HY2022, mainly due to increased investment in Germany and in USA as well as Nasdaq® listing expenses.
- Cash on hand and short-term cash investments as of June 30, 2023, remain robust at USD 29.4m.
- Net loss was USD 2.1m, compared to a net loss of USD 0.1m in 1HY2022.
Strategic Developments and Upcoming Highlights:
- In the US, SHL has adjusted its strategy to prioritize direct-to-consumer sales of the SmartHeart® ECG, viewing it as a move of considerable strategic importance. The direct-to-consumer sales are anticipated to begin in the second half of 2023, and SHL will utilize its extensive network of US cardiologists for remote ECG evaluations. In parallel, the Company is optimistically awaiting the results from the HELP-MI clinical trial conducted by Mayo Clinic which they believe will hold significant value for its B2B plan of introducing the SmartHeart® platform to hospital systems.
- The Company continues to see growing utilization of its SmartHeart® platform by its Tier1 strategic customers including through the deployment of SmartHeart® in the CVS Minute Clinics.
- The Company is eagerly anticipating the outcomes of clinical trials led by Mayo Clinic and Imperial College London, both relating to the utilization of SmartHeart® 12-lead ECG technology for remote monitoring of post-MI (heart attack) patients at home, examining the reduction in the rate of visits to Emergency Department and hospital readmissions. Preliminary results showcased at the Imperial Vulnerable Plaque and Patient Meeting 2023 (VPM) indicate significant benefits, reinforcing SHL’s position in the field.
- In Israel, SHL’s B2C subscription activity is showing growth, and the Company has begun introducing new products and services this year, despite local political challenges, thus expanding the use of both its B2C and B2B infrastructures.
- The Company recently launched the Doctors’ Virtual Visit service in Germany providing this offering to approximately 12.4 million individuals insured by BARMER and AOK Plus. The Company continues to witness a consistent increase in the adoption of the service and believes it will serve as promising new growth engine for its operation in the German market.
- During April 2023, the Company’s ADR’s commenced trading on the Nasdaq®.
Erez Nachtomy, CEO of SHL, commented: “This half-year showcases our resilience and adaptability in the face of market challenges. Our consistent performance in Israel, the promising Virtual Visit growth engine in Germany, alongside our strategy prioritization in the US underline our commitment to innovation and excellence. Our investments in technology and strategic relationships, especially with esteemed entities like CVS, Henry Schein, and the Mayo Clinic, position us at the forefront of telemedicine. As we navigate the evolving healthcare landscape, our primary focus remains delivering unparalleled value to our customers and stakeholders while championing the transformative power of telemedicine.”
Conference Call at 4 pm CET
The Company will host a conference call for investors, journalists and analysts to discuss the Half-Year 2023 results today at 4 pm CET. The conference call will be hosted by Erez Nachtomy, CEO, and Amir Hai, CFO and will be held in English.
Dial-in numbers:
From Europe: +41 (0)58 310 50 00
From UK: +44 (0) 207 107 06 13
From USA: +1 (1) 631 570 56 13
From Israel: Toll free: 1 80 921 44 27 / Local: +972 3763 1173
The conference call is scheduled to last approximately 45 minutes.
The presentation is available on: www.shl-telemedicine.com/reports
The Half-Year Report 2023 is available on: www.shl-telemedicine.com/reports
SEC submission of the Half-Year Report and presentation is available on:
https://www.shl-telemedicine.com/sec-filing/
About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and on the Nasdaq Stock Exchange (SHLT, ISIN: US78423T2006, CUSIP: 78423T200). For more information, please visit our web site at www.shl-telemedicine.com.
Financial calendar
7 December 2023, Annual General Meeting. Tel Aviv, Israel
For more financial information:
For a comprehensive understanding of the Company’s financial reports and related management’s discussion and analysis for applicable periods, please visit the Company’s profile at https://www.sec.gov/edgar or the Company’s full report on its site: www.shl-telemedicine.com/reports
Key Figures for 1H2023
Key figures (as reported):
|
in USD million (except per share amounts) |
HY2023 |
HY2022 |
% change |
|
Revenues for the period |
29.0 |
30.9 |
(6) |
|
Revenues |
|
|
|
|
Revenues |
|||
| – Germany |
6.8 |
7.1 |
(4) |
| – Israel |
21.6 |
23.0 |
(6) |
| – Rest of the World |
0.6 |
0.8 |
(25) |
|
EBIT |
(4.4) |
(1.0) |
|
|
EBITDA* |
(0.9) |
2.4 |
|
|
Net profit (loss) |
(2.1) |
0.1 |
|
|
EPS (Basic loss) |
(0.14) |
0.00 |
|
|
Operating cash flow |
(3.3) |
1.7 |
|
* EBITDA: operating profit excluding depreciation and amortization expenses of USD 3.5m, and USD 3.4m in the comparable period
Adjusted key figures (in constant currency):
In the table below, HY2022 results have been presented at HY2023 exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.
|
In USD million |
HY2023 |
HY2022 |
% change |
|
Revenues |
29.0 |
28.8 |
1 |
|
Revenues |
|||
| – Germany |
6.8 |
7.0 |
(3) |
| – Israel |
21.6 |
21.0 |
3 |
| – Rest of the World |
0.6 |
0.8 |
(25) |
|
Adjusted EBIT** |
(3.1) |
(0.1) |
|
|
Adjusted EBITDA *** |
0.4 |
3.1 |
|
**Adjusted EBIT: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
***Adjusted EBITDA: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
EBITDA, Adjusted EBITDA and Adjusted EBIT Tables (HY2022 results are presented in HY2023 exchange rates)
|
EBITDA: |
|
|
|
in USD Thousand |
HY2023 |
HY2022 |
|
Operating loss |
(4.4) |
(1.1) |
|
Plus: |
|
|
|
Depreciation and amortization expenses |
3.5 |
3.2 |
|
|
|
|
|
EBITDA |
(0.9) |
2.1 |
|
|
|
|
|
|
HY2023 |
HY2022 |
|
Operating loss – EBIT |
(4.4) |
(1.1) |
|
Plus: |
|
|
|
Cost of share-based payments |
0.8 |
0.9 |
|
Non-recurring expenses |
0.5 |
0.1 |
|
Adjusted EBIT |
(3.1) |
(0.1) |
|
|
HY2023 |
HY2022 |
|
EBITDA |
(0.9) |
2.1 |
|
Plus: |
|
|
|
Cost of share based payments |
0.8 |
0.9 |
|
Non-recurring expenses |
0.5 |
0.1 |
|
Adjusted EBITDA |
0.4 |
3.1 |
Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities and Exchange Commission with respect to non-GAAP financial measures (HY2022 results are presented also in HY2023 exchange rates)
|
HY2023 |
HY2022 |
HY2022(CC) |
|
|
Net profit (loss) |
(2.1) |
0.1 |
(0.1) |
|
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