PLANTATION, Florida., August 12, 2022 /PRNewswire/ – Akumin Inc. (NASDAQ: AKU) (TSX: AKU) (“Akumin“or the”Company“) provided an update on its activities and announced the termination of its financial director, Guillaume Larkin and the appointment of David Kretschmer as interim Chief Financial Officer, effective immediately.
The Company has implemented a transformation program with initiatives focused on its operations, growth and capital. These initiatives are intended to support the Company’s goals of patient access and experience, customer and partner engagement, financial sustainability and employee well-being. The Company receives support from a globally recognized transformation specialist to help implement the program. As part of this transformation, the Company announced: (a) the termination of its Chief Financial Officer, Guillaume Larkinand the appointment of David Kretschmer, an experienced transformational finance executive who has successfully led other healthcare business transformations, as interim CFO, effective immediately; and (b) the sale of certain accounts receivable by subsidiaries of the Company to a third party buyer for a purchase price of approximately $30 million.
Riadh ZineChairman and CEO of Akumin, said, “Our transformation efforts to date have already significantly improved the efficiency of our operations and show positive momentum for further improvements, as reflected in our results of the second trimester. I am very pleased to welcome David as the new interim CFO. We are delighted to have his expertise complement our team as we successfully execute our transformation program. On behalf of the Akumin Board of Directors, I would also like to thank Bill for his contributions to the company and wish him the best in his future endeavours.”
Mr. Zine continued, “The sale of certain accounts receivable has significantly improved our company’s liquidity through an immediate cash injection of approximately $30 million and a reduction in our sales of days past due from our accounts receivable. Our cash position at the end of the second quarter of 2022 pro forma this sale would have been approximately $69 million. In addition, any future sales of similar accounts receivable in the normal course of business are not expected to have a material impact on our earnings.”
Prior to joining the company, Mr. Kretschmer previously worked for Surgery Partners, Inc. (NASDAQ: SGRY), a multi-specialty outpatient surgical center company with $2.5 billion of Revenue, as Interim Chief Financial Officer and Executive Vice President of Strategy and Transformation, and, prior to that, as Senior Vice President, Treasurer and Chief Information Officer of Anthem, Inc. renamed Elevance Health, Inc. (Nasdaq: ELV), a health insurance provider with over $130 billion revenue, and he was a key team member in executing the successful business transformation of each of these companies.
Akumin is a national leader in comprehensive ambulatory radiology and oncology solutions and a partner of choice for US hospitals, health systems and physician groups. Akumin provides fixed-site outpatient radiology and oncology services through a network of 234 owned and/or operated centers; as well as outpatient radiology and oncology solutions to approximately 1,000 hospitals and health systems in 48 states. Akumin combines clinical and operational expertise with the latest advances in technology and information systems to deliver patient-centric innovation, service standardization and exceptional healthcare value to its patients and partners. For more information, visit www.akumin.com.
Certain information contained in this press release constitutes forward-looking information or forward-looking statements. In some, but not necessarily all, instances, such statements or information may be identified by the use of forward-looking terminology such as “plans”, “target”, “expects” or “does not expect”. not”, “is planned”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of these words and phrases or state that certain actions, events or results “could”, “might”, “will”, “could”, “will” or “will be taken”, “will occur” or “will be achieved “. In addition, any statement that refers to expectations, projections or other characterizations of future events or circumstances contains forward-looking information. Statements containing forward-looking information are not historical facts but rather represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates which, although considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties , assumptions and other factors that may cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, but not limit, the factors described in more detail in the “Risk Factors” section of our quarterly report on Form 10-Q for the period ended June 30, 2022filed with the SEC on August 92022, available on www.sec.gov. These factors are not intended to represent a complete list of factors that could affect Akumin; however, these factors should be carefully considered. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or change any statements containing forward-looking information, or the underlying factors or assumptions, that whether as a result of new information, future events or otherwise, except as required by law.