Jack Nathan Health sees 1Q revenue increase by 26% driven by expanded clinic operations in Canada and Mexico

Jack Nathan Medical Corp (Jack Nathan Health) (CVE:JNH) (OTCQB:JNHMF) saw its revenue rise by 26% to C$1.3 million in its fiscal first-quarter 2022 thanks to new clinics and expanded operations in Canada and Mexico. The healthcare firm acquired or closed the acquisitions of seven new clinics over the three-month period ended April 30, 2021, including two MediSpas and four operational medical clinics in Ontario Walmart stores. The firm also inked a deal in March for a flagship 8,200 square foot clinic in Ontario – its largest facility in the Jack Nathan Health Walmart network to date. READ: Jack Nathan Health taps Michael A Pangia as strategic advisor as it eyes rapid business expansion As a result of the acquisitions and staffing of its new clinics in Mexico, the company saw its operating expenses rise to $2.8 million compared to $0.8 million and reported an adjusted EBITDA loss of $0.5 million. The company said, however, that it expects higher revenues in future periods as it boosts its service offerings, increases its footprint and reopens locations closed as a result of the coronavirus (COVID-19) pandemic. Jack Nathan interim CEO Michael Marchelletta told investors that the company made “significant progress” executing its strategy and building a strong foundation to support future growth. “While first-quarter revenues grew over the comparable fiscal 2021 period, the rate of growth was slower than anticipated due to the global pandemic, provincial constraints in Canada, and the timing of acquisitions,” Marchelletta said in a statement. “We are active with multiple acquisition opportunities and new business ventures, which could further extend our reach into new markets and geographies. Additionally, we have begun to own and operate clinics in Canada, as this model significantly improves our financial performance and enables us to provide better access to standardized, comprehensive, high-quality healthcare under one roof at Walmart locations," he added. DEEP DIVE: Jack Nathan Health expanding operations across Canada and Mexico The group currently has 76 operating clinics in Walmart Canada, and will be opening three additional clinics by late 2021 and early 2022. Marchelletta noted that the company has “big expansion plans” with Walmart Mexico: “In the beginning of 2021, we had six locations and now have 52 that are operational and corporate-owned. We will be opening 151 new clinics over the next six months, bringing the total number in Mexico to 203. This will transform our business and should lead to top and bottom-line improvements in fiscal 2022 and beyond.” Jack Nathan ended the quarter with a cash balance of $6.3 million. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas