Greenbrook TMS Continues Execution of Growth Strategy and Reports Record Second Quarter Financial Results

TORONTO--(BUSINESS WIRE)--Greenbrook TMS Inc. (TSX: GTMS) (“Greenbrook” or the “Company”), today announced its second quarter 2019 operational and financial results. For more information, please refer to the Management’s Discussion & Analysis of Financial Condition and Results of Operations (“MD&A”) and the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2019 and 2018. These documents will be available on the Company’s website at www.greenbrooktms.com and under the Company’s SEDAR profile at www.sedar.com. All values in this news release are in United States dollars, unless otherwise stated.

Bill Leonard, President and Chief Executive Officer of Greenbrook commented:

“We are pleased with our results this quarter and year-to-date as we continue to experience strong year-over-year growth rates both at our newly established centers as well as with our existing footprint. With 82 centers now in our network, we are meeting our development objectives, which lays the foundation for sustained future growth.”

SECOND QUARTER 2019 FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Quarterly revenue increased by 64% to a record $8.1 million, up $3.2 million from the second quarter of fiscal 2018 (“Q2 2018”).
• Year-to date revenue increased by 66% to $14.7 million, up $5.9 million from year-to-date 2018 (“YTD 2018”).
• Quarter-over-quarter revenue increased by 22%, up $1.5 million, from the first quarter of fiscal 2019 (“Q1 2019”).
• Our accelerated development activity has resulted in an increase in net loss for the quarter to $2.8 million as compared to $1.3 million in Q2 2018, and to $5.5 million year-to-date as compared to $2.5 million for YTD 2018, in line with management expectations.
• Quarterly regional operating income increased by 44% to $1.0 million, up $0.3 million from Q2 2018^(1).
• Year-to-date regional operating income increased by 78% to $1.6 million, up $0.7 million from YTD 2018⁽¹⁾.
• Quarter-over-quarter regional operating income increased 60%, up $0.4 million from Q1 2019.
• Established 10 new TMS Centers this quarter and have since added another five bringing the network total to 82, which is double the number of TMS Centers compared to this time last year.

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1. The Company adopted IFRS 16, Leases (“ IFRS 16”) effective as at January 1, 2019 using the modified retrospective approach. As a result of this approach, the prior period figures were not adjusted. For comparison purposes, the Company has provided explanations for prior period figures adjusting for the effects of IFRS 16. Growth figures quoted above are after adjusting for the effect of IFRS 16 in both periods for comparability. Please refer to our MD&A for further details on the impact of the implementation of IFRS 16 on our financial results.

SELECTED SECOND QUARTER FINANCIAL AND OPERATING RESULTS ⁽¹⁾

(US$)	Q2 2019 (unaudited)	Q2 2018 (unaudited)^(2)	YTD 2019 (unaudited)	YTD 2018 (unaudited)^(2)
Total Revenue	8,082,559	4,926,625	14,689,757	8,828,195
Regional Operating Income	1,002,166	697,293	1,629,166	916,893
Loss before income taxes	(2,841,107)	(1,332,088)	(5,481,194)	(2,461,371)
Loss for the year and comprehensive loss	(2,841,107)	(1,332,088)	(5,481,194)	(2,461,371)
Loss attributable to the common shareholders of Greenbrook	(2,874,092)	(1,372,984)	(5,444,514)	(2,528,523)
Net loss per share (basic and diluted)	(0.06)	(0.04)	(0.11)	(0.07)

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Notes:

1. Please note that additional selected consolidated financial information can be found at the end of this press release.
2. The Company adopted IFRS 16 effective as at January 1, 2019 using the modified retrospective approach. As a result of this approach, the prior period figures were not adjusted.

	As at June 30,		As at December 31,
(unaudited)	2019	2018	2018
Number of active TMS Centers^(1)	67	34	47
Number of TMS Centers-in-development^(2)	10	6	10
Total TMS Centers	77	40	57
Number of management regions	10	4	8
Number of TMS Devices installed	127	79	108
Number of regional personnel	199	104	132
Number of shared-services / corporate personnel^(3)	30	14	17
Number of TMS providers^(4)	64	32	46
Number of consultations performed	3,383	1,915	4,211
Number of patient starts	1,839	1,174	2,626
Number of TMS treatments performed	66,206	41,033	95,621
Average revenue per TMS treatment	$222	$215	$222

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Notes:

1. Active TMS Centers represent TMS Centers that have performed billable TMS services.
2. TMS Centers-in-development represents TMS Centers that have committed to a space lease agreement and the development process is substantially complete.
3. Shared-services / corporate personnel is disclosed on a full-time equivalent basis. The Company utilizes part-time staff and consultants as a means of managing costs.
4. Represents physician partners that are involved in the provision of TMS therapy services from our TMS Centers.

CONFERENCE CALL AND WEBCAST

Second Quarter 2019 Conference Call Details:

Bill Leonard, President and Chief Executive Officer and Erns Loubser, Chief Financial Officer will host a conference call at 10:00 a.m. (Eastern Time) on August 7, 2019 to discuss the financial results for the quarter.

Toll Free North America: 1-866-521-4909

Toronto: 647-427-2311

Webcast:

For more information or to listen to the call via webcast, please visit:

www.greenbrooktms.com/investors/events.htm

Conference Call Replay:

Toll Free (North America): 1-800-585-8367

Toronto: 416-621-4642

Passcode: 9964329

The conference call replay will be available from 1:00 p.m. ET on August 7, 2019, until 23:59 p.m. ET on September 7, 2019.

About Greenbrook TMS Inc.

Operating through 82 Company-operated treatment centers, Greenbrook is a leading provider of TMS, an FDA-cleared, non-invasive therapy for the treatment of Major Depressive Disorder and other mental health disorders, in the United States. TMS therapy provides local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Greenbrook has provided more than 285,000 TMS treatments to over 8,000 patients struggling with depression.

Cautionary Note Regarding Forward-Looking Information

Certain information in this press release, including with respect to the rapid expansion of our TMS Center network, or the Company’s future financial or operating performance, constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s current annual information form available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(US$)	Q2 2019 (unaudited)	Q2 2018 (unaudited)^(1)	YTD 2019 (unaudited)	YTD 2018 (unaudited)^(1)
Total Revenue	8,082,559	4,926,625	14,689,757	8,828,195
Direct center and patient care costs	3,931,231	3,193,758	7,387,847	5,916,498
Regional employee compensation	1,538,755	619,606	2,790,176	1,192,478
Regional marketing expenses	674,531	404,412	1,138,572	780,952
Depreciation	935,876	11,556	1,743,996	21,374
Total direct center and regional costs	7,080,393	4,229,332	13,060,591	7,911,302
Regional Operating Income	1,002,166	697,293	1,629,166	916,893
Center development costs	414,975	194,836	679,671	306,510
Corporate employee compensation	1,456,050	530,368	2,916,151	1,033,519
Corporate marketing expenses	427,543	255,801	631,889	409,812
Other corporate, general and administrative expenses	978,892	991,653	1,646,787	1,375,398
Share-based compensation	162,155	64,668	456,314	184,572
Interest expense	405,817	1,457	803,657	77,855
Interest income	(2,159)	(9,402)	(24,109)	(9,402)
Loss before income taxes	(2,841,107)	(1,332,088)	(5,481,194)	(2,461,371)
Income tax expense	-	-	-	-
Loss for the year and comprehensive loss	(2,841,107)	(1,332,088)	(5,481,194)	(2,461,371)
Income attributable to non-controlling interest	32,985	40,896	(36,680)	67,152
Loss attributable to the common shareholders of Greenbrook	(2,874,092)	(1,372,984)	(5,444,514)	(2,528,523)
Loss for the year attributable to:
Non-controlling interest	32,985	40,896	(36,680)	67,152
Common shareholders of Greenbrook	(2,874,092)	(1,372,984)	(5,444,514)	(2,528,523)
Net loss per share (basic and diluted)	(0.06)	(0.04)	(0.11)	(0.07)

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Notes:

1. The Company adopted IFRS 16 effective as at January 1, 2019 using the modified retrospective approach. As a result of this approach, the prior period figures were not adjusted.