TORONTO, April 30 /CNW/ - Alegro Health Corp. (TSX-V: AGO), a provider of
medical, surgical and disability management services, today announced its
financial results for the fourth quarter and year ended December 31, 2008.
"We reported increasing revenues and a solid increase in EBITDA for 2008;
strong evidence that our vision of building and sustaining the leading health
services network in Canada is taking shape," said Brenda Rasmussen, President
and Chief Executive Officer of Alegro Health Corp. "I'm excited about the
momentum we are creating and believe our team will continue to aggressively
drive our overall growth strategy through organic growth and opportunistic
acquisitions in the health services space that are complementary to our
current service offering."
2008 Financial and Operating Highlights
- Revenue increased by approximately 11% to $15,795,226
- EBITDA increased by more than 36% to more than $1,855,000
- Earnings per share remained steady at $0.03
- As at December 31, 2008, Alegro had cash resources of greater than
- Dr. Martin Barkin became Chairman of the Board of Directors on
November 15. Dr. Barkin's extensive experience in both the public
health care sector with the Ontario Ministry of Health and Long-
Term Care and the private sector with DRAXIS Pharma provides a
unique insight into the business model and growth opportunities of
Alegro. Additional changes to the board of directors were made to
add critical mass and significant expertise in a variety of
healthcare related niche industries.
Select Full Year 2008 Financial Results
Revenue $15,795,226 $14,251,045
Expenses 14,114,139 13,176,119
Income Before Income Taxes 1,681,087 1,074,926
Basic and Diluted earnings per Share $0.03 $0.03
Total Assets $8,973,712 $8,654,737
Consolidated revenue for the year ended December 31, 2008 increased by
10.8% to $15,795,226 from $14,251,045 in the prior year. Of this increase,
$422,000 arose from the reversal of accruals made for Goods and Services Tax
(GST) prior to 2004. In 2008 it was determined that there was no liability
with respect to the GST for any prior years. Accordingly, the previously
recorded accruals were reversed in 2008 with a resultant increase in revenue.
Consolidated expenses for 2008 grew by $938,020 or 7.5% over last year's
consolidated expenses to $14,114,139, resulting in a decrease in expenses as a
percentage of revenue from 92.5% to 89.5%. In addition to the divisional
analysis of expenditure increases below, head office expense increases were
due to increases in consulting fees, legal expenses and stock based
compensation charges. Amortization expense amounted to $173,698 for the
current year as compared to $284,384 recorded in the 2007 year.
Select Q4 2008 Financial Results
Revenue $4,594,751 $4,196,000
Expenses 3,968,423 4,035,668
Income Before Income Taxes 626,328 160,332
Basic and Diluted Earnings per Share $0.014 $0.005
Total Assets $8,973,712 $8,654,737
The approximate $398,751 increase in Q4 2008 revenue to $4,594,751 as
compared to Q4 2007 is primarily related to the reversal of the GST accrual.
This reversal is largely attributed to management's efforts to contain costs.
Expenses in Q4 2008 decreased by approximately 1.5% to $3,968,423 and
relate primarily to legal fees and stock-based compensation charges, as well
as an increased level of corporate expenses compared to the same period in the
prior year at a head office level.
Outstanding Share Data and Capital Resources
As at December 31, 2008, there were a total of 36,581,762 common shares
issued and outstanding compared to 36,524,762 common shares issued and
outstanding at December 31, 2007.
As at December 31, 2008, there were a total of 3,050,000 options
outstanding to purchase an equivalent number of common shares at an average
exercise price of $0.28, expiring at various dates until 2012.
As at December 31, 2008 the Company had cash and cash equivalents of
$4,002,255, essentially unchanged from December 31, 2007.
For a complete review of financial statements, please visit
About Alegro Health Corp.
Alegro Health Corp. is a leading healthcare services provider capturing
high value opportunities by providing additional access to select quality
healthcare services. Through its divisions - Disability & Rehabilitation
Management and Surgical/Hospital Services - Alegro is delivering additional
resources to the Canadian public healthcare services and addressing the
growing demand for private and enhanced out-of-pocket healthcare services.
With superior knowledge of the healthcare industry, extensive and trusted
relationships with payers, physicians, and government agencies, Alegro is
pursuing a vertically integrated approach and an aggressive acquisition
strategy to achieve its growth objectives. Alegro is listed on the TSX Venture
Exchange under the symbol AGO. For further information, please visit
This press release contains statements that may constitute
"forward-looking statements" within the meaning of applicable Canadian
securities legislation. These forward-looking statements include, among
others, statements regarding business strategy, plans and other expectations,
beliefs, goals, objectives, information and statements about possible future
events. Specific forward-looking statements contained in this press release
include statements regarding Alegro's proposed acquisition of Active Health,
the completion of the acquisition and the outcome of the acquisition, as well
as statements regarding transaction values, accretion, and ownership levels
resulting from the completion of the proposed acquisition. Readers are
cautioned not to place undue reliance on such forward-looking statements.
Forward-looking statements are based on current expectations, estimates and
assumptions that involve a number of risks, which could cause actual results
to vary and in some instances to differ materially from those anticipated by
Alegro and Active Health and described in the forward-looking statements
contained in this press release. Among the various factors that could cause
results to vary materially from those indicated in the forward-looking
statements include failure to realize anticipated synergies and the result of
the review of the proposed acquisition by regulatory authorities. No assurance
can be given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do so, what benefits
Alegro will derive there from.
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, Alegro
Health, (416) 927-8400 ext. 303, email@example.com; Michael Moore,
Investor Relations, Equicom Group, (416) 815-0700 ext. 241,