Centro de Imagem Diagnosticos SA
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Earnings Call Analysis
Summary
Q3-2023
Allianca has achieved a milestone in 2023, reporting its highest-ever quarterly revenue of BRL 323 million, up 7% year over year. The 9-month accrued revenue also reached a record at BRL 957 million. EBITDA saw a 25% year-on-year growth to BRL 188 million, with a notable margin improvement back to pre-pandemic levels. The company experienced increased productivity with MRIs and exams, reduced patient no-shows and dropouts by 7%, and improved its patient service, reflected by a 2 percentage point increase in NPS. Growth initiatives include a 30-year PPP in Rondonia, strategic acquisitions like CEPEM in Rio, and a joint venture in Salvador. Debt has been smartly restructured, with a shift from short-term to longer-term debt and a reduction in leverage from 4.6 to 3.8. The forward outlook seems promising with ongoing actions to maximize results, a healthy pipeline of organic and inorganic growth, and further debt management.
Good afternoon, everybody, and thank you for holding. Welcome to the results release conference for 2023 for Allianca. We will begin the presentation that will be presented by Pedro Thompson, the company's CEO. [Operator Instructions] This conference call is being recorded and will be available at the IR site for the company where our release is also available.
Before we begin some important announcement. The information contained in this presentation and statements made during the conference call referring to the business projections and operational goals are assumptions and beliefs of the company management. They are no guarantee of future performance. These forward-looking statements involve risks and uncertainties that may not [ occur ] market conditions, industry conditions and other operating factors could impact the future results of the company.
I would now like to give the floor to Pedro Thompson to begin the presentation.
Thank you, Juliana. I am Pedro Thompson, the CEO of the company. It is a pleasure to be with you. And beside me, we have Remi Kaiber, CFO. Remi, who is the legal adviser, as well as Juliana.
We will begin the presentation going straight on to Slide #4, where we record, record revenue indicators of BRL 323 million, the highest quarterly revenue for the company with an evolution of 7% when compared to the same period last year. When we think of the 9 months '23, we totaled BRL 957 million, once again, the highest accrued revenue for the 9 months.
When we speak about EBITDA, the EBITDA grew 25% year-on-year and 20% of the present, totaling BRL 188 million for the 9 months of '23. We have gone back to the level before the pandemic regarding margin and EBITDA evolution.
We go on to Slide #5, where we will speak about the revenues again. We have high levels of productivity, 4% in the volume of MRIs and 5% in terms of exams per machine day. This is a strong indicator as it shows that we have a growth in ticket as well as the growth in demand. We are operating much more than we have in previous years. We have made available new slots with an occupancy rate of the slot above the historical levels recorded.
And in terms of quality, our service is much better because of the call center. We have a 7% reduction in no shows and 7% reduction in dropout rates. The average ticket for the year -- year-on-year, will show our better commercial positioning. And finally, our NPS, the assessment of our patients in terms of our service levels grew 2 percentage points year-on-year.
We now go on to Slide #6, and we show you our pipeline for new revenues for the coming periods. We have the PPP Rondonia in an asset-light format where we will operate 399 beds, [ 6 ] (sic) [ 60 ] of which are ICU beds through a project that has a 30-year concession.
We have another potential M&A as we have for [indiscernible] in Rio de Janeiro. Now it is with CEPEM, a clinic that specialized in women's health and it will enable us to expand diagnostic services in Rio de Janeiro and to do this on a multi-strategic footprint. In nonorganic growth, we have signed a memorandum of understanding, a binding one with a Pathology Clinic São Paulo. It is the second largest geography of the book in [indiscernible] Belo Horizonte.
We formalized a joint venture with Unimed Nacional to work in the metropolitan region of Salvador. This is a region with a held back demand and this will contribute to the growth of AC in that geography.
Now to conclude my presentation, I would like to give the floor to Remi Kaiber, our CFO.
I'm going to somewhat repeat what was already said. We had a growth of 7% in the third quarter '23 vis-a-vis the third quarter '22 and 8% in the 9 months of the year, showing the constant growth of the company. And we have had a significant evolution in the last 5 years, as you see to the right.
On Slide #9, we show you the breakdown of gross revenue. In imaging, we had a growth of 12%, BRL 347 million in MRIs and BRL 506 million compared to last year. And to the right, MRI grew 36%. Image ex MRI 54%, clinical analysis with a drop of 3% and COVID is practically nil.
In Slide #10, we show you the evolution of our cost and expenses. We were able to reduce 10% year-on-year and in the 9 [Audio Gap] occupancy maintenance services and others 14% supply, medical hospital services. Depreciation and amortization have remained constant vis-à-vis last year.
Well, once again speak on Slide #11 about our EBITDA, reaching BRL 58 million, 25% growth compared to the third quarter '22.
Finally, on Slide #12, we show you that we were able to renegotiate part of the debt that was 50% short term and 50% long term, 35%, 65%. And in terms of our leverage, it dropped from 4.6% to 3.8%.
This is what we wanted to share with you today. We would like to open the floor now for questions and answers.
We have a first question from [indiscernible] who asked us to speak in more detail regarding the growth of expenses with personnel.
The growth of expenses with personnel, although we diluted it and gained EBITDA margin year-on-year is due, due to 2 factors. One factor is due to the fact that the clinical analysis from the company had been outsourced. We no longer have that contract since last year. We are now working in-house besides the collection of analysis. So we had a nonorganic growth of the payroll by working with pre-analysis in-house, especially the collection. As a whole, the unit cost per blood exam had a drop of 15% according to different geographies.
Therefore, this was a reduction when we compare this with outsourced services. Another increase arises from the dissemination of the call center. We have centralized it. It is -- I'm sorry, it is no longer central. All of our call centers are regional and the growth of service level, the rises from this. And of course, this also involves a higher cost. So first of all, organic growth, as a whole, the growth was lower and the additional financial impact is due to the fact that we are working in-house with the collection of clinical analysis.
Another question from Eduardo from Python Capital. How are you working with the company's capital structure?
Thank you for the question, Eduardo. The capital structure, although we have just leveraged the company organically working with our operating cash generation and EBITDA, but also inorganically as we carried out a capital increase during the coming periods. We hope to continue to delever the company, as we had done previously in an organic fashion, maximizing our operational cash generation and also counting upon other processes. Based on what we did this third quarter, we will use this again in other operations. Thank you.
We have an additional question, Ricardo from Legacy. How are you thinking of addressing your short-term debt?
Ricardo, thank you for the question. Exactly, what we have done in the last 3 months, you can see that 1 year ago, we had 50% to 50% short and long-term debt. Now we have 1/3 in the short term and 2/3 for the long term in terms of debt. With a more -- with a company with higher equity, we have solid arguments in terms of our balance and performance. Now as part of the agenda that we have, we have sufficient capital structure. And this is part of the process.
At this point, we would like to end the question-and-answer session. Thank you all for attending the call, and we do have a final message.
When we announced the results for the fourth quarter of last year, we have fully complied with what we promised. We have put in place all of the agreements, and it does not stop here. In the fourth quarter, we will have additional actions to maximize the company results. We have improved the capital structure and this we can show through figures as part of our robust growth pipeline, both organic and inorganic. We have preserved the company's capital structure. We also have the rolling of our debt. It is visible to see the migration of the short-term debt to a longer-term debt.
We count upon your presence for our next release, and thank you very much for your attendance.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]