Dentalcorp reports strong financial growth and inaugural dividend

Dentalcorp Holdings Ltd. has released its financial results for the fourth quarter and the entire year of 2024. The company reported fourth-quarter revenue of $397.5 million, which is a 9.7% increase compared to the same time last year. Same Practice Revenue Growth (SPRG) was 2.7%. The Adjusted EBITDA, a key performance measure, stood at $73.9 million, showing a 12.3% growth. For the full year of 2024, Dentalcorp achieved an overall revenue increase of about 8% and a 10% rise in Adjusted EBITDA. The company also noted that its Adjusted EBITDA margin expanded slightly to 18.5% for the year. In terms of cash flow, Dentalcorp generated $151.8 million in Adjusted Free Cash Flow, representing a growth of 16% per share. The company acquired 30 new dental practices over the year. These are expected to generate an additional $21.4 million in Adjusted EBITDA. Dentalcorp has also been actively participating in the Canadian Dental Care Plan, treating over 80,000 patients under this government program. Looking ahead to 2025, Dentalcorp anticipates continued growth, with expected SPRG between 3.0% and 5.0%. They plan to accelerate their acquisition program and aim for further growth in Adjusted Free Cash Flow and EBITDA margins. As part of its commitment to returning value to shareholders, Dentalcorp’s Board of Directors announced an inaugural dividend of $0.025 per share, payable on April 22, 2025. The company intends to review the dividend quarterly. Dentalcorp will hold a conference call on March 21, 2025, to provide a business update and answer questions from stakeholders.