Empower Clinics says audited fiscal 2019 revenue more than doubled on the back of record patient growth

Empower Clinics Inc (CSE:CBDT) (OTCMKTS:EPWCF) revealed audited fiscal 2019 results on Friday that showed revenue more than doubled on the back of record patient growth at the company’s Sun Valley Health subsidiary, which owns a network of physician-staffed, medical cannabis-focused health clinics in Oregon and Arizona. The company clocked up revenue of $2,031,581, or $0.02 per share driven by 15,920 patient visits in fiscal 2019, compared to revenue of $1,091,386 based on 7,607 patient visits in fiscal 2018. The Vancouver-based firm also said that clinic revenue for the fiscal fourth quarter and full-year 2019 were $542,677 and $1,949,549 respectively, compared to fiscal fourth quarter and full-year 2018 revenue of $196,909 and $1,091,386. The company attributed the jump in revenue to the acquisition of Sun Valley and the addition of five new clinics which fueled the patient growth. READ: Empower Clinics says corporate clinics business clocked up triple-digit, year-over-year increase in April patient visits "2019 is defined by profound change for our company setting the stage for the ongoing transition to a growth-oriented health and wellness brand, with substantially improved operating controls and improved cost structure," Empower Clinics CEO Steven McAuley said in a statement. "As we look ahead navigating a global pandemic, we find ourselves thriving, hiring and seeing patients in record numbers, further supporting our diversification to broader wellness services." Empower said it is booking new physician appointments for immune-boosting services that are leading to naturopathic product sales and the ordering of specialized tests. In addition to its health clinics and telemedicine services, the company also produces a proprietary line of CBD-based products distributed throughout the US. Empower reported a net loss of $4,301,663 or $0.04 per share in fiscal 2019, compared to $3,789,918 or $0.06 per share for fiscal 2018 primarily driven by the recognition of goodwill and intangible asset impairment losses related to the Sun Valley acquisition which arose due to changes in Arizona licensing requirements. Meanwhile, direct clinic expenses for the fiscal 4Q and full-year 2019 were $615,814 and $826,276 respectively, compared to fiscal 4Q and full-year 2018 direct clinic expenses of $115,655 and $417,047. The increase in costs was chalked up to the increase in the number of patient visits. In July, Empower closed a private placement of $720,866 to support its growth initiatives. The company also launched a four-phase rollout of coronavirus (COVID-19) testing in clinics and onsite for businesses. Contact the author Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive