Dentalcorp acquired 30 new dental practices last year, continuing its expansion as Canada’s largest corporate dental network, the company announced Friday in its 2024 financial and operating results.
As of its third-quarter investor report in 2024, Dentalcorp owned 550 practices and was in the process of acquiring another 160 clinics. This adds to the total number of clinics Dentalcorp is gradually acquiring, reflecting the broader trend of corporate dentistry’s rise in Canada and the United States.
“During 2024, we acquired 30 new practices that are expected to generate $21.4 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) after rent, at an average multiple of 7.0x, exceeding our expectations,” said Nate Tchaplia, president and chief financial officer.
CEO and chairman Graham Rosenberg added that full-year revenue and adjusted EBITDA grew by about 8 per cent and 10 per cent, respectively, compared to the previous year.
While the latest acquisitions mark a slight increase from 2023, when Dentalcorp added 27 practices expected to generate $20.6 million in profits, the company is set to accelerate its expansion.
“We are looking forward to a strong 2025, where we expect to see a same-practice revenue growth (SPRG) of 3.0 per cent to 5.0 per cent, an accelerated pace of mergers and acquisitions with acquisitions representing $25 million-plus of adjusted EBITDA after rent, pre-tax adjusted free cash flow per share growth of 15 per cent or more, and another year of adjusted EBITDA margin expansion of 20-plus basis points,” Rosenberg said.
Provided care to 80,000 CDCP patients
The company’s expansion has also positioned it as a key player in the federal government’s Canadian Dental Care Plan (CDCP), providing care to 80,000 patients under the program. In November, Terry Beech, minister of citizens’ services, said more than one million Canadians had received care under the CDCP, with over 2.7 million approved for coverage.
“Over 90 per cent of our practices are currently accepting CDCP patients,” said Tchaplia. “During the fourth quarter of 2024, same-practice revenue growth (SPRG) was impacted by the deferral of appointments in the 19-64 age cohort as they awaited their official start date under the program.”