Medical Facilities (DR) investor relations material

Executive summary

• Q2 results were impacted by headwinds at Sioux Falls Specialty Hospital (SFSH) due to the relocation of its primary physician group's clinic, reducing complex surgical case volumes and affecting revenue and income from operations.

• Other hospitals delivered improved profitability, driven by higher volumes, favorable case and payer mix, and payer rate increases.

• Facility service revenue declined 1.3% to $80.6M; excluding SFSH, revenue rose 6.5%.

• Surgical case volumes fell 0.9%; excluding SFSH, volumes were up 0.1%.

• Income from operations dropped 5% to just under $12M; excluding SFSH, it surged 98.9%.

Financial highlights

• Net income from continuing operations rose 375.1% year-over-year to $9.6M for Q2 2025.

• Basic EPS was $0.24, up from $(0.11) in Q2 2024.

• EBITDA was $16M, down 4.7% from the prior year period.

• Distributable cash flow for Q2 was C$5.3M, down 43.3% year-over-year.

• Quarterly cash dividend of C$0.09 per share, annualized yield of 2.28%.

Outlook and guidance

• Operations at SFSH are expected to normalize in the second half of the year, with the relocation impact considered largely behind.

• Other hospitals are expected to maintain strong performance due to higher volumes and favorable payor mix.

• No significant competitive threats identified in Arkansas; ongoing physician recruitment supports future growth.