Skip to main content
LifeWorks reports full year and Q4 results for 2021
Corporate / Investor Relations / Canada / ID-CORP / ID-IR

LifeWorks reports full year and Q4 results for 2021

Not for distribution to U.S. news wire services or for dissemination in the U.S.

LifeWorks Inc. (the "Company" or "LifeWorks”) (TSX: LWRK) today reported its financial results for the full year 2021 and the three-month period ended December 31, 2021 (all amounts are in Canadian dollars, unless noted otherwise).

Record sales drive solid business performance in 2021

  • Record annual sales contributed to 6.1% constant currency organic growth, 4.1% in reported revenue.
  • Adjusted EBITDA margins of 18.5% improving over the previous quarter.
  • Adjusted 2021 margins of 19.1% were down marginally over the previous year due to temporary supply chain issues in meeting strong mental health demand related to COVID-19.
  • Tech-enabled revenues grew 9.2% for the year and 9.0% in Q4.
  • An $11.6 million restructuring charge taken in Q4 to strengthen operational platforms and optimize cost structure to support continued global growth.

Strategic focus on growth and acquisitions in high-growth mental health space

  • Announced merger of Health and Productivity and Integrated Health Solutions businesses, now delivering an industry-leading continuum of care model in workplace mental health.
  • Acquired Ascender in Q4, a leading European mental health and wellbeing solutions provider.
  • Subsequent to the quarter, acquired Breaking Free, one of the world’s best Software as a Solution (SaaS) providers of digital treatment solutions for substance use disorders.
  • Knox-Keene certification enabled LifeWorks to provide direct counselling services in California, resulting in 24 new mandates and the addition of 17 thousand lives by year-end.

Integrated platform driving growth as the global leader in mental health and wellbeing

  • 6.7 million lives on LifeWorks platform at year-end, up from 5.1 million the previous year.
  • Organizations paying for extra LifeWorks platform modules is up 50% year over year.
  • Thirty-six million lives covered by LifeWorks services at year-end.
  • In Canada, recently won one of the Company’s largest employee assistance program mandates ever, in large part because of LifeWorks’ unmatched ability to offer in-person and leading-edge digital support to employees.

Comments from president and chief executive officer, Stephen Liptrap

“We delivered a solid year with record sales contributing to 6.1% constant currency organic growth. We ended 2021 strong with adjusted EBITDA margins improving in Q4 after declining earlier in the year because of temporary supply-chain issues in our global counsellor network that we are now addressing. We are pleased by the continued strong adoption of the LifeWorks platform, the growth in lives across all our employee wellbeing programs, and our progress in building out our industry-leading continuum of care model for workplace mental health. Despite the business environment related to COVID-19, we’re moving confidently into 2022 as a strong, growing and profitable company that’s well-positioned at a time when global demand for workplace mental health solutions is rapidly increasing, particularly for support on best-in-class platforms combining digital and in person solutions."

Availability of financial statements and MD&A

Our complete financial results, including a discussion of factors affecting those results, can be found in our financial statements as at and for the three months and fiscal year ended December 31, 2021, along with the Management’s Discussion and Analysis in respect of those financial statements which are available under our profile on SEDAR at sedar.com.

Notice of conference call

Management of LifeWorks will host a conference call on Thursday, March 10, 2022, at 10 a.m. ET. The conference call is open to all those wishing to attend, with a question-and-answer period with analysts to follow the presentation. To participate in the live conference call, please call 416.406.0743 (participant code 4926596) in the Toronto area, or 1.800.952.5114 (participant code 4926596) throughout the rest of Canada and in the United States. Media are invited to join on a listen-only basis. A replay of the call will be available via the LifeWorks website at lifeworks.com.

About LifeWorks

LifeWorks is a world leader in providing digital and in-person solutions that support the total wellbeing of individuals. We deliver a personalized continuum of care that helps our clients improve the lives of their people and by doing so, improve their business.

Financial measures

To assist investors in assessing the Company's financial performance, this news release also makes reference to certain key performance indicators and non-IFRS financial metrics such as Adjusted EBITDA margin, Constant currency organic revenue growth, and Tech-enabled recurring revenue. The Company believes that these are useful supplemental measures to assist our investors in assessing our financial performance. See the Company's MD&A for more details. These financial measures do not have any standard meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other issuers.

(1)

“Adjusted EBITDA margin” is defined as Adjusted EBITDA (profit before finance costs, income tax expenses, depreciation, amortization, impairment losses, and certain unusual expenditures) as a percentage of revenue.

(2)

“Constant currency organic growth” is defined as organic growth (revenue growth adjusted for the impact of acquisitions, divestitures, and other structural changes) before foreign currency translation impacts, which is calculated by translating current period results in local currency using the conversion rates from the comparative period.

(3)

“Tech-enabled recurring revenue” consists of our Integrated Health Solutions retainer and platform business, internet-based cognitive behavioural therapy (“iCBT”), and ongoing system-based Health and Welfare offerings within Administrative Solutions.

Forward-looking information

This news release contains "forward-looking information" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Specific statements used in this news release that may contain “forward-looking information” include but are not limited to statements with respect to: the discussion of our business and operating segments, focuses and strategies, our expectations of future performance for our various operating segment units and our consolidated financial results; the conversion of long-term incentive plan units into common shares; considerations in determining when to declare dividends and the amount of such dividend; the Company’s management and monitoring of commitments and contractual obligations to ensure that they can be met with funding provided by operations and capital resources available; the ability to fund commitments and contractual obligations with funding provided by operations and capital resources available; future lease and credit facility commitments; and, future consideration related to acquisitions. They are based on certain factors and assumptions, including expected growth, results of operations, business prospects and opportunities Use of words such as "may," "will," "expect," "believe," “could,” “would,” “intend,” or other words of similar effect may indicate "forward-looking information.” Forward-looking information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in the Company's publicly filed documents (available on SEDAR at sedar.com) and in the Company’s MD&A under the heading "Risks and Uncertainties."

Those risks and uncertainties include, among other things, the ability to maintain profitability and manage growth, competition, reliance on information systems and technology, reputational risk, satisfactory performance of client obligations, general economic conditions, pandemics, natural disasters or other unanticipated events (including the novel coronavirus and variants thereof (“COVID-19”) pandemic), dependence on key clients and key channel partners, risk of future legal proceedings, protection of intellectual property, foreign exchange risk, insurance, indebtedness and interest rates, credit risk, dividends, market price and dilution of common shares. Many of these risks and uncertainties can affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information or statement made by the Company or on the Company’s behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking information as a prediction of actual results.

All forward-looking information in this news release is qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its financial or operating results, or its securities.

ID-CAD, ID-IR, ID-CORP

Heather MacDonald
LifeWorks
media@lifeworks.com
1-855-622-3327

Source: LifeWorks