Alternate Health Corp. Reports First Quarter 2017 Financial Results

Company Generates Revenue of $3.9 Million and Adjusted EBITDA of $1.4 Million – (35 Percent) During Its First Quarter as an Operating Public Company

DALLAS, TX, May 30, 2017 /PRNewswire/ - Alternate Health Corp. (Alternate Health) (CSE: AHG, OTC: AHGIF), an international medical cannabis company that uses best in class technology, research, education, production and laboratories to increase the awareness, regulatory compliance, and appropriate usage of cannabinoids in modern medical practices, today announced its results for the first quarter ending March 31, 2017.  All dollar references in Canadian dollars unless otherwise noted.

First Quarter 2017 Financial Highlights

• Revenue of $3.9 million compared to Nil in Q1 of last year
• Adjusted EBITDA of $1.4 million compared to Nil in Q1 2016
• Net loss of $0.6 million, up from a loss of $0.1 million in Q1 of last year
• Working capital of $10.5 million, up from $0.5 million at year end 2016
• Total assets of $30.9 million, up $28.6 million from year end 2016
• The company ended the quarter with $11 million in cash on hand and $0.5 million in debt

Revenue for the quarter was driven by strong performance from Alternate Health Labs, a clinical laboratory acquired in January of this year.  The net loss of $0.6 million was in part due to $1.6 million of non-recurring, non-cash expense.  We raised $11.1 million in new capital during the first quarter and generated $0.2 million cash from operating activities.  We also placed $1.0 million in strategic partner investments. 

For the first quarter 2017, Net loss per share (Per International Financial Reporting Standards or "IFRS") was $0.02 and non-IFRS fully diluted earnings per share was a positive $0.03.  Adjusted net income was $1.1 million compared to negative $0.1 million for the same period last year. 

Management Commentary

"We are very pleased with the financial and operational performance during our first active quarter as Alternate Health Corp." said Dr. Jamison Feramisco, CEO, Alternate Health.  "We achieved outstanding financial growth, raised significant new capital and completed several key strategic acquisitions and investments.  Adjusted EBITDA for the quarter was $1.4 million and we generated positive operating cash flow."  

"Following a successful financial start with Alternate Health Labs demonstrating sustained growth, we look forward toward making continued progress across our diverse operational divisions including an expanded focus on deploying our CanaCard and VIP-Patient technologies in the United States and Internationally.  We have a unique opportunity to drive innovation and corporate revenues by deploying our novel regulatory, compliance, and therapeutic delivery solutions across the medical cannabis ecosystem."

First Quarter 2017 Operational Highlights

• Alternate Health Corp. successfully listed its shares for trading on the OTC bulletin board under the ticker symbol AHGIF (CSE:AHG).
• Acquired Alternate Health Labs as a key business unit of Alternate Health Corp., dramatically increased Alternate Health Lab's monthly sample volume with sample volume in March compared to January of 188%, and expanded clinical testing menu to include blood samples.
• Secured exclusive licensing rights to transdermal and sublingual dissolvable tablets for the delivery of Cannabinoid and other cannabidiol (CBD) products.
• Obtained AMA PRA Category 1 Credit™ approval for the first continuing medical education programs on the use of medical marijuana and cannabinoids for physicians.
• Secured access to leading healthcare industry data analytics platform and custom applications for use in the medical cannabis and cannabinoid industry.

First Quarter 2017 Corporate Financial Summary

About Alternate Health Corp.

Alternate Health Corp. (CSE:AHG, OTCQB:AHGIF) is an international medical cannabis company that uses best in class technology, research, education, production and laboratories to increase the awareness, regulatory compliance, and appropriate usage of cannabinoids in modern medical practices.  The company is strategically positioned in all facets of the medical cannabis value chain through the innovative integration of proprietary technology and know-how, acquisitions and partnerships, deep direct knowledge of and experience with improving patient outcomes, and management expertise.  The company is well positioned to reinvest internal operating cash flow in its platform over the long term, thus creating an attractive investment profile for its shareholders.  The company is headquartered in the Dallas, Texas, Metroplex and has operations in Los Angeles, San Antonio and Toronto.  For more information about Alternate Health Corp., visit www.alternatehealth.ca

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.  Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements".  Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions.  The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements.  The Company cautions that the EBITDA and adjusted Net Income figures reported in this new release do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

ALTERNATE HEALTH CORP.
NOTES TO RECONCILIATION OF IFRS TO NON-IFRS FINANCIAL MEASURES

USE OF NON-IFRS FINANCIAL INFORMATION

The Company occasionally utilizes financial measures not calculated in accordance with generally accepted accounting principles in Canada ("IFRS") in order to provide investors with an alternative method for assessing our operating results in a manner that enables investors to more thoroughly evaluate our financial performance.  We also believe these Non-IFRS measures provide investors with a more informed baseline for modeling Alternate Health's future financial performance.

Management uses these Non-IFRS financial measures to make operational and investment decisions, to evaluate the Company's performance, to forecast and to determine compensation.  Further, management utilizes these performance measures for purposes of comparison with its business plan and individual operating budgets and allocation of resources. We believe that our investors should have access to, and that we are obligated to provide, the same set of tools that we use in analyzing our results.  These Non-IFRS measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for or superior to IFRS results.  We have provided definitions below for certain Non-IFRS financial measures, together with an explanation of why management uses these measures and why management believes that these Non-IFRS financial measures are useful to investors.  In addition, we have provided tables to reconcile the Non-IFRS financial measures utilized to IFRS financial measures.

Adjusted Non-IFRS Measures

Our Non-IFRS measures adjust IFRS Net income, Net income per share - diluted, and EBITDA for non-cash stock-based compensation expense for employees and partners and fees incurred for listing the Company's shares on the Over the Counter ("OTC") market exchange in the United States. 

Adjusted EBITDA

Alternate Health uses adjusted EBITDA as a means to assess the overall financial performance of its business without the effects of interest, taxes, depreciation, amortization, non-cash share based compensation and non-recurring expenses associated with listing the Company's stock on the OTC as these items may distort the analysis of certain business trends and hinder comparative analysis with other healthcare businesses competing in our markets.   

SOURCE Alternate Health Corp.