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Medical Facilities (DR) investor relations material
Medical Facilities Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Facility service revenue rose 7.5% year-over-year to $82.6 million, driven by higher surgical case volumes, favorable payor mix, and rate increases, with a notable rebound at Sioux Falls Specialty Hospital.
Income from operations increased 28.4% to $12.2 million; EBITDA grew 17.7% to $16.1 million, excluding prior year government stimulus.
Both Sioux Falls and Arkansas hospitals received five-star ratings for nurse communications in September.
$5.6 million was returned to shareholders through the repurchase of 514,200 shares under the NCIB.
Surgical case volumes increased 1.1% year-over-year, with outpatient cases up 3.3% and a rebound at Sioux Falls Specialty Hospital.
Financial highlights
Net income from continuing operations was $12.9 million for Q3 2025, down 7.6% year-over-year; for the nine months, net income rose 51.9% to $31.5 million.
Basic EPS for Q3 2025 was $0.44, up 91.3% year-over-year; for the nine months, basic EPS was $0.83, up 538.5%.
Operating expenses before non-cash share-based compensation increased 6.0% to $70.7 million in Q3 2025.
Distributable cash flow for Q3 2025 was C$4.7 million, with a payout ratio of 35.2%.
Quarterly cash dividend of C$0.09 per share, annualized yield of 2.55% on September 30, 2025 closing price.
Segment performance
Pain management volumes were negatively impacted by physician turnover, with new hires expected to improve future performance.
Drugs and supplies costs rose 10.5% due to higher acuity procedures, partially offset by implant cost savings and vendor rebates.
G&A expenses decreased 4.9% due to lower share-based compensation and professional fees, offset by higher recruiting and maintenance costs.
Specialty surgical hospitals in Arkansas, Oklahoma, and South Dakota, and an ambulatory surgery center in California, contributed to revenue growth.
Consolidated results exclude Black Hills Surgical Hospital, which was treated as discontinued operations in prior periods.
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