MISSISSAUGA, ON, Feb. 24 /CNW/ - CML HealthCare Income Fund (TSX: CLC.UN) ("CML" or the "Fund") today announced that Bob Carfagno, President and CEO of CML's U.S. medical imaging business, which includes American Radiology Services, Inc. ("ARS") and John Rodgers, CFO of ARS will be leaving to pursue other career opportunities. The Fund also announced today the appointment of Kent Wentzell, formerly General Manager of CML's Canadian medical imaging services, as Senior Vice President Operations of CML's U.S. medical imaging business, effective immediately.
"I would like to thank Bob and John for their efforts in making the ARS transition a smooth one," said Paul Bristow, President and CEO of CML. "With the addition of Kent's strong business and clinical background, his proven track record of successfully integrating acquisitions, and a more focused approach to operations, we look forward to taking ARS to the next level of performance. Over the coming months, I will personally be taking a leadership role and a more hands-on approach to the day-to-day activities in our U.S. operations. We are committed to our U.S. medical imaging business and continue to believe that it will provide CML with growth through operating efficiencies and accretive acquisitions."
Kent Wentzell joined CML in September 2002 as General Manager of CML's Canadian medical imaging services which now consists of 110 clinics and over 1,000 employees. During his tenure as General Manager, Mr. Wentzell was instrumental in growing revenue by approximately 100% through acquisitions and organic growth and, at the same time, significantly improving operating margins. Prior to joining CML, Mr. Wentzell spent three years as the General Manager of Bracco Diagnostic Canada Inc., a contrast imaging company where he was instrumental in growing revenue by approximately 300%. With the appointment of Mr. Wentzell, Kent Nicholson, Executive Vice President, Chief Operating Officer, will continue to oversee CML's Canadian medical imaging services. Mr. Wentzell will be relocating to Maryland.
ARS, a leading provider of fully-integrated diagnostic medical imaging services in Maryland and Delaware, was acquired by CML in February 2008. This acquisition provided CML with an entry into the U.S. medical imaging business, serving as a strong platform for future acquisitions in the U.S. northeast. In 2009, the Fund added to its U.S. medical imaging assets with the acquisitions of Quarry Lake Imaging Centre in Baltimore, Maryland, and the Imaging Institute in Providence, Rhode Island. As well, a new multi-modality medical imaging center was opened in Bel Air, Maryland in a joint venture with a local hospital.
About CML HealthCare Income Fund
CML HealthCare Income Fund is an unincorporated open-ended trust that owns CML HealthCare Inc., one of North America's largest healthcare services businesses. Based in Mississauga, Ontario, CML HealthCare Inc. is a leading provider of laboratory testing services in Ontario, the largest provider of medical imaging services in Canada and is a leading provider of medical imaging services in the U.S. Northeast. CML HealthCare Income Fund is publicly traded on the Toronto Stock Exchange under the symbol "CLC.UN" and has approximately 89.8 million units outstanding. To reach CML HealthCare Income Fund via the worldwide web log on to www.cmlhealthcare.com.
Caution concerning forward-looking statements
This document includes forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward-looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, general economic conditions; dependence on government-based revenues; the ability to renew the Ministry of Health and Long Term Care contract on favourable terms; pending and proposed legislative or regulatory developments including the impact of changes in laws, regulations and the enforcement thereof; intensifying competition, resulting from established competitors and new entrants in the businesses in which we operate; technological change; interest rate fluctuations; insurance coverage of sufficient scope to satisfy any liability claims; fluctuations in operating results; dependence on our operating subsidiary to pay its interest obligations to us; fluctuations in cash distributions and capital investment; management of credit, market, liquidity and funding and operational risks; judicial judgments and legal proceedings; privacy laws; our ability to complete strategic acquisitions and to integrate our acquisitions successfully; changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in total patient referrals; loss of services of key senior management personnel; other factors that may affect future growth and results including timely development and introduction of new products and services, changes in our estimates relating to reserves and allowances, future sales of units, changes in tax laws, technological changes and obsolescence, natural disasters, the possible impact on our businesses from public health emergencies, international conflicts and other developments including those relating to terrorism; the effect of any one or more of such events and risks on our stability ratings and any changes thereto; and our success in anticipating and managing the foregoing risks. Additional factors related to the acquisition include, but are not limited to, our ability to successfully integrate the operations of ARS; additional liabilities or costs attributable to the acquisition; unknown liabilities of ARS; the ability to retain senior management of ARS; the ability to complete accretive acquisitions in the U.S.; the continuation and nature of the relationship with Johns Hopkins; and changes in U.S. federal and state healthcare laws and regulations, including Medicare and Medicaid reimbursements levels and including those that may arise from potential U.S. Healthcare reform initiatives.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the "Risk Factors" section, under "Business Risks" and elsewhere in our Management's Discussion and Analysis of Operating Results and Financial Position for the year ended December 31, 2008 and elsewhere in our filings with Canadian securities regulators. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made.
SOURCE CML HEALTHCARE INC. (FORMERLY CML HEALTHCARE INCOME FUND)
For further information: For further information: Alice Dunning, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext 255, (416) 815-0080 fax, Email: firstname.lastname@example.org; Tom Weber, Chief Financial Officer, CML HealthCare Income Fund, (905) 565-0043, (905) 565-1776 fax, Internet: www.cmlhealthcare.com