Skip to main content
LifeWorks reports Q1 2022 results
Investor Relations

LifeWorks reports Q1 2022 results

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 three-month period ended March 31, 2022 (all amounts are in Canadian dollars, unless noted otherwise).

Improving Adjusted EBITDA margins support solid quarterly results

  • First quarter revenues of $259 million increased over the same quarter last year.
  • Adjusted EBITDA margins of 18.7% improved from 18.5% and 18.2% reported in the prior two quarters.
  • Profit increased 38.1% to $14.1 million compared to the same period in 2021.
  • Tech-enabled revenues grew 4.0% over the comparable period.

Lives added to our platforms strengthens LifeWorks position as global technology leader

  • 7.1 million lives on LifeWorks platform at quarter end, up 32.7% compared to Q1 2021
  • Organizations paying for extra LifeWorks modules is up 56% year over year.
  • Microsoft Teams users accessing LifeWorks platform grew to 140,000, a 40% increase from Q4 2021.
  • Nine new client wins on the Breaking Free substance use management platform acquired in January.

Strong results for Integrated Health Solutions business

  • LifeWorks continues to win market share in the EFAP and mental health markets including six win backs in the quarter against digital competitors.
  • Revenue in mental health and wellbeing up 5.1% compared to Q1 2021.
  • Absence management revenue up 6.3% compared to Q1 2021.

Comments from president and chief executive officer, Stephen Liptrap

“In Q1, we delivered our second consecutive quarter of improved Adjusted EBITDA margins on revenues that increased slightly compared to a year ago, although COVID lockdowns inhibited client use of some fee for service offerings. Our combination of the best of in-person and digital support is a contributing factor in client win backs in the quarter. Going forward, LifeWorks is well positioned to drive long-term growth as the world’s trusted leader in providing mental health and wellbeing services to employees and their families.”

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 Tuesday, May 3, 2022, at 9 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 9915029) in the Toronto area, or 1.800.952.5114 (participant code 9915029) 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 may also make 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 non-recurring 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