- Reports Solid Net Income Growth and Accelerates Growth Strategy -
TORONTO, Nov. 29 /CNW/ - Alegro Health Corp. (TSX-V: AGO), a provider of
medical, surgical and disability management services, today announced its
financial results for the third quarter ended September 30, 2007.
"We continued to execute on organic growth and fiscal discipline which
has led to increased revenue with improved margins and profitability over the
past three quarters, thanks largely to the great efforts of our staff and
partners," said Brenda Rasmussen, President and Chief Executive Officer of
Alegro Health Corp. "In addition, a key milestone during the period towards
the organization's strategy of becoming a leading healthcare enterprise in
Canada was the initiation of the strategic alliance with Global Healthcare
Investments & Solutions, Inc. ("GHIS") and the appointment of Dr. Jack Shevel
to the Alegro Board of Directors."
In line with Alegro's Doctor Centric strategy, the Board of Directors has
created a Special Committee to explore the possibility of a securities
offering to Doctors and Dentists in Canada in order to fund strategic
expansion opportunities. Dr. Jack Shevel, a member of the Alegro Board of
Directors and representative of GHIS said, "These Physician Partnerships are a
key focus area and will differentiate the organization to deliver quality,
cost effective care to its Patients."
Concurrently with the work being done by the Special Committee, the
Company continues to pursue high level appointments to the Board of Directors
and Governing Committees of Alegro in preparation for the next phase of
strategic development and growth.
- Revenue of $3.2 million, a 21.4% increase over the third quarter of
- EBITDA of $239,267, a 65.2% increase over the third quarter of 2006
- Net income of $98,726, an 85.7% increase over the third quarter of
- Initiated strategic alliance with GHIS, whereby they will assist
Alegro with its strategic development and growth goals
- Completed a private placement with GHIS for 6,250,000 Alegro Health
Corp. common shares for total proceeds of $1,250,000.
- Established Alegro Health Partners with funding by GHIS Capital of
$750,000 which will invest in new healthcare sectors
- Appointed Dr. Jack Shevel of GHIS to the Board of Directors
- Created a Special Committee to explore the possibility of a
securities offering to Doctors and Dentists in Canada
Three-month period ended September 30, 2007 compared to
three-month period ended September 30, 2006
Total revenue for the quarter increased 21.4% to $3,219,228 (2006:
$2,651,346). The increase in revenue is primarily related to growth in
disability management services.
Against the 21.4% top line growth, direct and operating costs increased
18.4% in the quarter under review to $2,968,331 (2006: $2,506,527), arising
from improved operational efficiencies.
EBITDA increased 65.2% in the quarter to $239,267 (2006: $144,819) which
equated to an improved EBITDA margin of 7.4% (2006: 5.4%). Consequently, net
income after tax increased 85.7% for the quarter to $98,726 (2006: $53,161).
As at September 30, 2007 the Company had cash and cash equivalents of
$2,449,129, an increase of $1,898,729 from December 31, 2006. The increase in
cash is primarily the result of proceeds of a private placement of $1,250,000.
As at September 30, 2007 there were a total of 31,524,762 common shares
issued and outstanding.
For complete financial statements please go to www.sedar.com.
About Alegro Health Corp.
Alegro Health Corp. is a leading Canadian healthcare service provider.
Through the Company's subsidiaries - Don Mills Surgical Unit, Work Able
Centres, Direct Health Solutions and CanAm Research - Alegro provides a
variety of surgical procedures, disability management, third-party medical
assessments and support of drug trial administration. With a broad service
offering, the growth of the healthcare service sector and the establishment of
Alegro Health Partners for expansion into new healthcare sectors, Alegro is
pursuing an integrated approach and an aggressive acquisition strategy to
become Canada's leading third-party health care service provider. Alegro is
listed on the TSX Venture Exchange under the symbol AGO. For further
information, please visit www.alegrohealth.com.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, such as statements concerning
anticipated future events, results, circumstances, performance or expectations
that are not historical facts. These statements are not guarantees of future
performance and are subject to numerous risks and uncertainties, including
those described in our regulatory filings and in this news release. Those
risks and uncertainties include changes in the regulatory and competitive
environments. Many of these risks and uncertainties can affect our actual
results and could cause our actual results to differ materially from those
expressed or implied in any forward-looking statement made by us or on our
behalf. All forward-looking statements in this news release are qualified by
these cautionary statements. These statements are made as of the date of this
news release and, except as required by applicable law, we undertake no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise. Additionally, we
undertake no obligation to comment on analyses, expectations or statements
made by third parties in respect of Alegro, its financial or operating results
or its securities.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the securities
described herein in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to qualification or registration under applicable
securities laws of any such jurisdiction.
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this news
For further information:
For further information: Brenda Rasmussen, President and CEO, (416)
496-6166 x-328, email@example.com; Michael Moore, Investor
Relations, (416) 815-0700 x241, firstname.lastname@example.org