Lokman Hekim 4Q21 - Strong Results Beating Guidance Hands Down

Lokman Hekim has reported solid results with significant growth in sales and much wider operating margins. Below is an executive summary.

Operating results. Revenues, cash gross income and EBITDA all beat expectations. December quarter revenues grew 41% on the year driven by pricing and improved patient traffic. Cash gross income and EBITDA for the quarter posted 64% and 72% year on year growth, respectively. The growth rates for the full-year are equally strong on year-on-year comparisons.

It is about margins again. Margins continue to widen. At 29.0%, the December quarter EBITDA margin shows 520bp improvement on the year. The full year margin has come in at 25.1%. The wider margins are due to a combination of reasons including pricing, better utilization of the research hospital, and pent-up demand in value-added medical services and procedures.

EPS jumps 134% on the year. The December quarter earnings available for shareholders reads TL27.4 million, consistent with an EPS of TL0.76/share versus TL11.7 million and TL0.32/share reported for the same quarter of 2020, respectively. Strong growth in EPS is also due to an investment tax credit booked in 4Q21.

Balance sheet highlights. Capital remains strong. Leverage ratios continue trending down. Net debt to EBITDA rolling 12 month reads 0.54x versus 1.24x same period last year with marked improvement in cash generation.