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MONTREAL, April 7 /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, is pleased to announce financial results for the second
quarter ended February 28, 2011.
Revenue up by 55%. Revenue for the second quarter totalled $4.928 million compared to
$3.185 million for the same period a year earlier.
Gross Profit up by 62%. Gross profit for the second quarter totalled $2.789 million compared to
$1.719 million for the same period a year earlier.
General and Administrative Expenses up by 5%. General and administrative expenses for the second quarter totalled
$1.014 million compared to $0.964 million for the same period a year
Net Earnings up by 256%. Net earnings and net earnings per share for the second quarter were
respectively $1.007 million and $0.06 compared to $0.283 million and
$0.02 a year earlier.
Declaration of a dividend of $0.025 on common shares
Revenues for the quarter ended February 28, 2011 totalled
$4.928 million, up 55% or $1.743 million from $3.185 million for the
same period in 2010. The increase in fertility activities, largely as a
result of the new no-cost program under the Québec Health Insurance
Plan, generated additional revenue of $1.656 million over the same
period in the previous year. Revenue from the surgical activities of
the OPMEDIC division continued to increase with additional revenue of
$0.122 million, while prenatal screening was down slightly by
$0.130 million for the quarter.
For the six-month period ended February 28, 2011, revenues rose by 51%
or $3.521 million to $10.371 million from $6.850 million in 2010.
Fertility activities were up $3.118 million while surgical activities
generated additional revenues of $0.297 million. In addition, the
$0.151 million drop in prenatal screening was offset by the
$0.191 million increase from the cytogenic laboratory.
Cost of Services
The cost of services for the quarter rose by $0.673 million to
$2.139 million in 2011 from $1.466 million in the previous year. The
increase in fertility activities necessarily incurred additional costs
of $0.223 million in payroll, while supplies and professional fees were
up by $0.193 million and $0.068 million, respectively. Rising surgical
activities required extra payroll expenses of $0.027 million.
For the six-month period ended February 28, 2011, the cost of services
totalled $4.242 million, compared with $3.049 million for the previous
period, for an increase of $1.193 million. The increase in fertility
activities necessarily incurred additional payroll costs of
$0.430 million, while supplies were up by $0.335 million, and
professional fees, by $0.155 million. Extra payroll costs of
$0.068 million were incurred for surgical activities.
Gross profit stood at $2.789 million for the quarter ended February 28,
2011, up $1.070 million or 62% from $1.719 million a year earlier. The
major increase in revenue had a direct impact on gross profit. For the
fertility division, gross profit was up by $1.020 million, while the
activities of the OPMEDIC division contributed $0.050 million to gross
Gross profit in relation to revenue for the quarter was 57% in 2011,
compared with 54% in 2010. As a result of the significant increase in
activities, the Company was able to realize economies of scale.
For the six-month period ended February 28, 2011, gross profit was
$6.129 million, up $2.328 million or 61% from $3.801 million in 2010.
The upward trend in revenue was mainly responsible for this
improvement. The fertility division's gross profit rose by
$2.158 million, while the activities of the surgical and endoscopic
division contributed $0.170 million.
Gross profit in relation to revenue for the six-month period ended
February 28, 2011 was 59%, versus 55% in 2010. Economies of scale were
realized as a result of the increase in activities since the beginning
of the fiscal year.
General and Administrative Expenses
General and administrative expenses totalled $1.014 million for the
quarter ended February 28, 2011, up $0.050 million or 5% from
$0.964 million in 2010. Professional fees were up by $0.072 million in
order to successfully complete different projects, including consulting
fees for the development and opening of the new Ontario fertility
clinic and for the laboratory accreditation fees, as well as the cost
of converting to international accounting standards. Administrative
salaries for customer service staff also increased during the quarter
to the tune of $0.059 million, which was offset by a drop of
$0.038 million in advertising expenses and a decline of $0.038 million
in the loss on the disposal of assets.
For the six-month period ended February 28, 2011, general and
administrative expenses were $2.121 million, up $0.213 million or 11%
from $1.908 million in 2010. Professional fees were up by
$0.225 million, mainly as a result of $0.095 million in consulting fees
and legal expenses paid for the opening of the new Ontario clinic.
External consultants' fees to prepare for the conversion to the new
international accounting standards and laboratory accreditation
accounted for the remainder.
Net earnings and net earnings per share for the quarter ended February
28, 2011 were respectively $1.007 million and $0.06, up significantly
by 256% from $0.283 million and $0.02 in 2010.
For the six-month period ended February 28, 2011, net earnings and net
earnings per share were respectively $2.374 million and $0.14, up
significantly by 179% from $0.852 million and $0.05 in 2010.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash
dividend of $0.025 per share payable April 28, 2011 to shareholders of
record at the close of business on April 21, 2011. 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
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 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
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