OPMEDIC GROUP Inc. announces its financial results for the first quarter ended November 30, 2012 and declares a dividend on common shares
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MONTREAL, Jan. 10, 2013 /CNW Telbec/ - OPMEDIC GROUP Inc. ("OPMEDIC GROUP") (TSX: OMG), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, announces its financial results for the first quarter ended November 30, 2012.
HIGHLIGHTS FOR THE QUARTER ENDED NOVEMBER 30, 2012:
- Revenue down by 1%. Revenue for the quarter ended November 30, 2012 amounted to $5.309 million compared to $5.390 million in 2011.
- Gross profit down by 11%. Gross profit for the quarter ended November 30, 2012 amounted to $2.713 million compared to $3.038 million in 2011.
- Net earnings down by 26%. Net earnings and net earnings per share for the quarter ended November 30, 2012 were respectively $0.921 million and $0.05 compared to $1.247 million and $0.07 in 2011.
Revenues for the quarter ended November 30, 2012 totalled $5.309 million, down $0.081 million or 1% from $5.390 million for the same period in 2011. Fertility revenues decreased slightly by $0.056 million as a result of the Quebec government's reduction in rates for in vitro fertilization activities effective January 2012. During the quarter, the volume in procedures of fertility clinics in Quebec was up 39%, compared to the 2011 quarter. The sharp increase in volume was mainly attributable to the growth in business of the Quebec fertility clinic, which had been partially closed for two months in 2011 for renovations. The new clinic in Newmarket, Ontario, acquired in July 2012, contributed $0.131 million to fertility revenues for the quarter. Prenatal screening was down $0.118 million because of the increased offer of services in Quebec's public healthcare system, while surgical activities were up by $0.019 million and sales of cryopreservation straws for fertility rose by $0.076 million.
Cost of services
The cost of services for the quarter ended November 30, 2012 rose to $2.596 million, up $0.244 million or 10% from $2.352 million in 2011. The new activities of the Newmarket fertility clinic entailed costs of $0.124 million in salaries, consulting fees and medication purchases, while activities of the South Shore endoscopic clinic, which will be a year old, resulted in additional costs of $0.090 million in salaries, rent and depreciation and amortization. Lastly, there was an increase in fertility supplies to the Quebec City clinic due to growth in business.
Gross profit for the quarter ended November 30, 2012 stood at $2.713 million, down $0.325 million or 11% from $3.038 million in 2011. Gross profit for the fertility segment was down $0.328 million, while in the OPMEDIC division, there was a minimal increase.
Gross profit in relation to revenues for the quarter was 51% in 2012, versus 56% in 2011.
General and administrative expenses
General and administrative expenses for the three-month period ended November 30, 2012 totalled $1.427 million, up $0.235 million or 20% from $1.192 million in 2011. Communication costs and professional fees were up $0.067 million, primarily at the new clinic in Newmarket, while the South Shore endoscopic centre's salaries along with its depreciation and amortization expenses amounted to an additional $0.058 million. Furthermore, research and development expenses, net of tax credits, totalled an extra $0.031 million for the quarter.
Net profit and net earnings per share for the quarter ended November 30, 2012 were respectively $0.921 million and $0.05, versus $1.247 million and $0.07, respectively, in 2011.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company's Board of Directors has declared a cash dividend of $0.02 per share payable on January 31, 2013 to shareholders of record at the close of business on January 24, 2013. Future dividends are subject to the discretion of the Board of Directors.
The Company designates this dividend to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any provinces of Canada.
Detailed financial results can be accessed on the OPMEDIC GROUP web site at www.opmedicgroup.com.
About OPMEDIC GROUP
OPMEDIC GROUP is a company incorporated under the laws of the Province of Quebec which provides healthcare-related services including surgical and endoscopic facilities and services to patients and surgeons (with its OPMEDIC division), fertility treatments, medical imaging, laboratory services and diagnostic procedures (with its PROCREA Cliniques division and a joint venture 7667264 Canada Inc.) and sperm banking services (with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common Shares trade on the Toronto Stock Exchange under the symbol "OMG".
This news release does not constitute an offer to sell or to solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This news release contains certain forward-looking statements that reflect the current views and/or expectations of OPMEDIC GROUP with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
The Content of this press release has not been approved by nor submitted to the TSX which assumes no liability therefore.
SOURCE: OPMEDIC GROUP INC.For further information:
Vice President Finance and Chief Financial Officer
(514) 345-8535, x 2260