Medical Facilities Corporation ("Medical Facilities," "MFC," or the "Corporation") (TSX: DR), reported its financial results today for the first quarter ended March 31, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q1 2026 Highlights(For continuing operations1, excluding non-controllable, non-cash corporate level charges related to share-based compensation plans, compared to Q1 2025)

"We had a strong first quarter, driven by a favourable payor mix as well as higher volumes of orthopedic and spine procedures," said Jason Redman, President and CEO of Medical Facilities. "During the quarter, we continued our several-year track record of returning capital to shareholders through our NCIB. However, the big highlight for the quarter came in January with the sale of our majority interest in OSH for gross cash proceeds of approximately $46 million. We ended the period with a very solid balance sheet and a robust cash position, providing us with significant financial strength and flexibility to continue investing in our hospitals and returning capital to our shareholders."

Financial Results

Net income fluctuates significantly between the periods, primarily due to variations in non-cash finance costs (change in the value of exchangeable interest liability) and income taxes; these charges are incurred at the corporate level rather than at the facility level.

 

During the quarter, MFC paid a quarterly cash dividend of C$0.09 per common share (or C$0.36 per share on an annualized basis), which represented an annualized yield of 2.16% on the March 31, 2026, closing price of C$16.68 per common share.

On March 31, 2026, MFC had consolidated net working capital of $67.1 million and cash and cash equivalents of $86.3 million compared to net working capital of $54.0 million and cash and cash equivalents of $43.4 million as at December 31, 2025. The change in consolidated net working capital was mainly due to the impact of the sale of OSH during the quarter, resulting in an increase in cash and cash equivalents from the sale proceeds received, partly offset by a reduction in current assets and current liabilities due to the removal of OSH's balances which were classified as held for sale.

MFC's financial statements and management's discussion and analysis, for the three-month period ended March 31, 2026, will be filed on SEDAR+ at www.sedarplus.ca on Thursday, May 7, 2026, and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Notice of Conference Call

MFC will host a conference call today, May 7, 2026, at 8:30 am ET to discuss its first quarter financial results. Interested parties may join the conference call by dialing 1-888-699-1199 approximately 15 minutes prior to the call to secure a line. To join the call without operator assistance, you may register and enter your phone number at https://emportal.ink/4ccPMGO to receive an instant automated call back.

A live audio webcast of the call will be available at https://app.webinar.net/NlJAOlnK408. Please connect at least 15 minutes prior to the call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on MFC's website following the call date.

About Medical Facilities

Medical Facilities, in partnership with physicians, owns two highly rated, high-quality surgical facilities in the United States. MFC's ownership includes controlling interests in two specialty surgical hospitals located in Arkansas and South Dakota. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. For more information, please visit www.medicalfacilitiescorp.ca.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements, except as required by applicable law; such statements speak only as of the date made.

SOURCE Medical Facilities Corporation

SOURCE: Medical Facilities Corporation

For further information, please contact: David Watson, Chief Financial Officer,
Medical Facilities Corporation, 1-877-402-7162, investors@medicalfc.com;ATrevor
Heisler, AInvestor Relations, AMBC Capital Markets Advisors,
416-848-7380,Atheisler@mbccapitalmarkets.com

COMTEX_478692469/2197/2026-05-07T07:00:00