Greenbrook TMS (US:GBNH)2023-05-16 17:01Financial Data and Key Metrics Changes - Quarterly revenue increased by 52% to $19.9 million, up $6.8 million compared to Q1 2022, primarily due to the acquisition of Success TMS and strong performance in mature regions [9][28] - Adjusted EBITDA loss reduced by 45% compared to Q4 2022, indicating progress towards near-term profitability [5] - The loss for the period increased by 16% to $9.3 million during Q1 2023, mainly due to increased interest expenses and depreciation from the Success TMS acquisition [33] Business Line Data and Key Metrics Changes - Patient starts and treatment volumes both increased by 57% to 2,854 and 92,533, respectively, compared to Q1 2022 [9][35] - Average revenue per treatment decreased by 3% to $215 in Q1 2023, attributed to changes in payer mix and geographical revenue distribution [31] Market Data and Key Metrics Changes - Same region sales growth was 26.8% in Q1 2023 compared to 8.3% in Q1 2022, driven by strong performance in mature regions [10] - The company expanded its Spravato offering to 45 treatment centers, addressing the high unmet demand for mental health treatment in the U.S. [7][30] Company Strategy and Development Direction - The company is focused on executing a comprehensive restructuring plan aimed at reducing costs and streamlining operations, with a target of $22 million to $25 million in cost reductions [6][15] - The restructuring plan has already led to a return to positive regional operating income, positioning the company for future profitability [15][32] Management's Comments on Operating Environment and Future Outlook - Management noted positive momentum in payer criteria for TMS and the use of non-physician practitioners, which is a favorable sign for the industry [29] - The company believes it is on track to achieve operational synergies through the restructuring plan, enhancing regional operating income [32] Other Important Information - The total number of treatment centers increased by 9% to 162 from 148 a year ago, but the operating footprint has been reduced to 133 treatment centers as part of the restructuring [13][30] - The company has treated over 32,000 patients with more than 1.2 million treatments performed, indicating a significant positive impact on mental health [38] Q&A Session Summary Question: Can you provide details on the Neuronetics partnership and its expected benefits? - The partnership with Neuronetics is strong, focusing on increasing the ability to treat more patients and enhance the industry [40] Question: What are the expected levels for corporate G&A and regional center support costs post-restructuring? - Corporate G&A is currently about $6 million, with a target to reduce it to between $4 million and $4.5 million by 2024 [45] Question: Can you discuss the liquidity position and the ability to proceed through restructuring? - The company is in discussions to shore up its balance sheet and has interest in additional capital, supported by a lender [51] Question: What is the current status of accounts receivable and any associated risks? - Accounts receivable increased slightly, but management does not see significant risk, expecting a reversion in collections [52] Question: How has the Spravato offering performed in terms of revenue contribution? - Spravato accounted for over 10% of total revenue, with expectations for continued growth throughout the year [56]