Skylight Health Reports Q3 Results Achieving Consecutive Quarter and YTD Positive Adjusted EBITDA
  • Gross revenues of $3.3 million with a robust gross margin of 71%. Revenue does not include contribution from recently announced acquisitions.
  • Adjusted EBITDA earnings of $331,122, representing its second consecutive quarter of positive Adjusted EBITDA.
  • Year-to-date Adjusted EBITDA profitability of $108,894 compared to an Adjusted EBITDA loss of $1.87 million in YTD Q3 2019.
  • Subsequent to the quarter end, extinguished all long-term debt and strengthened its balance sheet with approximately $10 million of cash.

TORONTO, ON – November 30, 2020 Skylight Health Group Inc. (formerly CB2 Insights) (CSE:SHG; OTCQB: CBIIF) (“Skylight Health” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, today reported its earnings for  fiscal Q3 2020 for the period ended September 30, 2020. Additional information regarding the Company, including its interim financial statements and Management’s Discussion and Analysis (“MD&A”), can be found at and on the Company’s website ( All amounts are expressed in Canadian dollars unless otherwise noted.

Following an industry-wide initial reduction of visits in March 2020 due to the COVID-19 pandemic, Skylight Health has continued to see growth in patient visits and registrations, while ongoing improvements to its business model and operating structure have led to reduced costs for delivery of services. The implementation of a telemedicine offering has created opportunities to further reduce the cost of healthcare delivery with lower overheads, higher margins, and improved availability for patients.

The Company expects that virtual care including telemedicine will remain a key delivery model within its growth plan. The Company continues its expansion through the US both organically and by way of acquisition with two new states added in October and November 2020 and a third acquisition announced to close in early 2021. Collectively, the 3 acquisitions are expected to contribute $5 million in annualized revenue and $1 million in annualized EBITDA to the current run rate.  As of November 27th, 2020, the Company has CA$10 million in cash on its balance sheet and is focused on its 3-pronged growth strategy including the expansion of insurable services to its current patient roster, subscription for the un/underinsured and accretive acquisitions.

Prad Sekar, Chief Executive Officer of Skylight Health Group stated “We are excited to see the continued efforts of our team and commitment to patient care result in a second consecutive  Adjusted EBITDA positive quarter and, for the first time in our company’s history, a full nine months of positive Adjusted EBITDA. We have continued to execute against our business plan, strengthen our management team and create programs that will ultimately delight our patients and optimize their health outcomes. Further we are beyond thrilled to be operating under our name Skylight Health Group and the opportunities it represents for us and our stakeholders in the years to come.

Mr. Sekar continued, “During our last earnings call in August 2020 we stated that it was time for us to go on the offensive. I am proud to say that we are doing just that. We look forward to executing against our business plan and bringing real value to all our stakeholders.”


Summary of Q3 2020 Key Milestones and Consolidated Results

  • Total revenue for Q3 2020 was $3.3 million, compared to $4.2 million in Q3 2019 due to a change in revenue reporting for same services rendered as a result of change in regulations. Annual revenue per patient remained the same. Revenue in the quarter does not include contribution from recently announced acquisitions;
  • Gross profit was $2.3 million in Q3 2020 compared to $2.6 million from Q3 2019. The reduction was due to the normalization of revenue identified above. However, the Company did see an overall growth in the gross profit margin to 71% in Q3 2020 compared to 70% in Q3 2019 due to improvements to capacity utilization and technology deployment;
  • Net loss of $215,726 in Q3 2020 compared to $919,114 in Q3 2019 as with continued efforts in workflow optimization and technology deployment. Year-to-date positive cashflow from operations was $1.5 million;
  • Adjusted EBITDA was $331,122 in Q3 2020 versus an adjusted EBITDA loss of $368,588 in Q3 2019 due to continued improvements to the operating model and top line growth;
  • In April 2020, the Company launched Skylight Health Group (“SHG”) as part of its clinical operations in the US to focus on integrated healthcare and providing low cost insurable services to patients;
  • Currently, the Company has approximately CAD $10.5 million in cash;
  • In July 2020, the Company launched the first in a series of monthly medical reports derived from real-world clinical treatments on a variety of healthcare conditions and modalities across the United States, Canada and United Kingdom;
  • In August 2020, the Company announced the addition of Insurance Industry Veteran Pam Galassini to its Leadership Team as Senior Vice President, Business Development. Galassini brings more than 20 years of pharmacy benefit management, payor insights and pharmaceutical manufacturer strategies and solutions experience to the Company.
  • In September 2020, the Company completed an oversubscribed non-brokered private placement for gross proceeds of $5,138,046 with the issuance of 34,253,641 subscription receipt units at an issue price of $0.15 per unit. Upon issuance, each subscription receipt unit automatically converted into one common share and one-half common share purchase warrant. Each whole warrant is exercisable to purchase one common share of the Company at a price of $0.20 per share for a period of two (2) years from the date of issuance.

Q3 2020 Financial Highlights

  Three months ended September 30 Nine months ended September 30
  2020 2019 2020 2019
Revenue  3,310,128  4,193,138  9,942,627 10,299,970
Cost of sales  964,091  1,264,296  3,082,437  3,049,254
Gross profit  2,346,037  2,928,842  6,860,190  7,250,716
Total operating expenses  2,561,763  3,847,956  8,086,041  11,206,944
Loss from operations  (215,726)  (919,114)  (1,225,851)  (3,956,228)
Adjusted EBITDA* 331,122 (368,588) 108,894 (1,870,065)

* Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortization, adjusted by significant nonrecurring, non-operational expenses and partially offset by the cash impact of certain accounting treatments during the period. Please see the Company’s Management Discussion & Analysis for a detailed reconciliation to operating loss.

The Company will hold its quarterly investor conference call on December 1, 2020 at 9:00 am ET.

Conference call details:

Date: Tuesday, December 1st, 2020
Time: 9:00 a.m. (EDT)
US/Canada Toll Free Dial In: 1-800-319-4610
Toronto Local Dial In: 1-416-915-3239
International Dial In: 1-604-638-5340
Call Name: Skylight Health Earnings Call

A replay of the earnings call will be available on the company’s website 24 hours after the call takes place.

Submitting Questions:

Those interested in submitting questions for the earnings call can do so by emailing prior to the start of the call.  Skylight Health will attempt to answer all questions submitted; however, some questions may not be answered during the call due to time constraints.

The Company looks forward to providing additional discussion on its Q3 2020 Filings, as well as providing an update on the business and preliminary expectations for Q4 2020. Further, the Company will update shareholders on its future outlook and plans for growth in the coming quarters.

Skylight Health

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