CML HealthCare Income Fund Reports 2010 Second Quarter Financial Results

Toronto Stock Exchange Symbol: CLC.UN

MISSISSAUGA, ON, Aug. 12 /CNW/ - CML HealthCare Income Fund (the "Fund" or "CML HealthCare"), (TSX: CLC.UN) today reported its financial results for the three and six-month periods ended June 30, 2010 (all amounts are in Canadian dollars, unless noted otherwise).

Financial Highlights:

    
    -------------------------------------------------------------------------
                                   Three-months   Three-months
                                          ended          ended
                                        June 30,       June 30,
    (C$ millions except percent            2010           2009
     and per unit amounts)            ("Q2 2010")   ("Q2 2009")     % Change
    -------------------------------------------------------------------------
    Revenue                               $119.7        $133.9        (10.6%)
    -------------------------------------------------------------------------
    Operating, general, &
     administration expenses               $87.0         $97.1        (10.4%)
    -------------------------------------------------------------------------
    EBITDA(1)                              $32.7         $36.8        (11.2%)
    -------------------------------------------------------------------------
    EBITDA(1) Margin                       27.3%         27.5%         (0.1%)
    -------------------------------------------------------------------------
    Net Earnings                           $22.9         $25.9        (11.9%)
    -------------------------------------------------------------------------
    Net Earnings per unit                  $0.25         $0.29        (13.8%)
    -------------------------------------------------------------------------
    Cash provided by operating
     activities                            $27.1         $32.5        (16.8%)
    -------------------------------------------------------------------------
    Distributable cash(2)                  $23.1         $24.3         (5.0%)
    -------------------------------------------------------------------------
    Distributions declared                 $24.0         $24.0          0.0%
    -------------------------------------------------------------------------
    Payout ratio                          103.9%         98.6%          5.4%
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                      Six-months    Six-months
                                           ended         ended
                                         June 30,      June 30,
    (C$ millions except percent             2010          2009
     and per unit amounts)            ("H1 2010")   ("H1 2009")     % Change
    -------------------------------------------------------------------------
    Revenue                               $245.1        $262.2         (6.5%)
    -------------------------------------------------------------------------
    Operating, general, &
     administration expenses              $181.7        $191.8         (5.3%)
    -------------------------------------------------------------------------
    EBITDA(1)                              $63.4         $70.4        (10.0%)
    -------------------------------------------------------------------------
    EBITDA(1) Margin                       25.9%         26.9%         (3.7%)
    -------------------------------------------------------------------------
    Net Earnings                           $43.8         $49.0        (10.6%)
    -------------------------------------------------------------------------
    Net Earnings per unit                  $0.49         $0.55        (10.9%)
    -------------------------------------------------------------------------
    Cash provided by operating
     activities                            $53.3         $70.3        (24.1%)
    -------------------------------------------------------------------------
    Distributable cash(2)                  $51.3         $51.9         (1.0%)
    -------------------------------------------------------------------------
    Distributions declared                 $48.0         $48.0          0.0%
    -------------------------------------------------------------------------
    Payout ratio                           93.5%         92.5%          1.1%
    -------------------------------------------------------------------------


    Operating Highlights:
    ---------------------
    -   Implemented a new, management service agreement ("MSA") with American
        Radiology Associates, P.A. ("ARA") representing the radiologists at
        CML's U.S. medical imaging subsidiary, American Radiology Services
        ("ARS") in which fees vary with revenues. This resulted in an
        accounting impact of decreasing both consolidated revenue and
        expenses YTD and in Q2 2010 compared to similar periods in 2009.
        However, it does not impact EBITDA or Net Earnings;
    -   Increased revenue in Canadian operations through organic growth in
        medical imaging services and increased cap revenue in laboratory
        services based on the Ontario Ministry of Health funding agreement;
    -   Implemented the new RIS/PACS in all centres in Maryland and Delaware;
    -   Improved quarter-over-quarter U.S. EBITDA(1) margins from 2.7% in
        Q1 2010 to 11.1% in Q2 2010 (under the previous ARA MSA, although
        EBITDA(1) in Q2 2010 would be no different, EBITDA(1) Margin would
        have been 8.3%)
    

"During the second quarter, our U.S. subsidiary, ARS, entered into a new management services agreement with its radiologists which will better align physician costs with revenues," said Paul Bristow, President and CEO of CML HealthCare Income Fund. "While our Canadian operations demonstrated organic growth in Q2 2010, the U.S. continued to operate under challenging economic and industry conditions. During the quarter, slowdown in physician office visits and radiation exposure concerns from CT scans contributed to volume declines. We believe that our focused marketing strategies supported by involvement from our radiologists will help to increase volumes going forward. This, together with cost containment and efficiency measures such as the implementation of the new RIS/PACS is anticipated to contribute to improve revenue and EBITDA in the coming quarters."

"In a separate news release issued today, CML announced that with the conversion of the Fund into a corporation effective January 1, 2011, the initial post-conversion dividend is anticipated to be $0.0629 per share payable monthly, or $0.7548 per share annualized," said Mr. Bristow. "CML's strategy is to be a stable dividend-paying corporation post conversion, and to continue to create value for shareholders through organic growth as well as opportunistic, accretive acquisitions."

    
    New Management Service Agreement (MSA) with American Radiology
    --------------------------------------------------------------
    Associates (ARA)
    ----------------
    

Effective April 1, 2010, the Fund's U.S. medical imaging subsidiary, ARS, entered into an amended and restated MSA with its radiologists represented by ARA. Under the new agreement, ARS will provide both front office and back office support to the radiologists in exchange for a fee based on percentage of global revenue collections from imaging services. With this new agreement, ARA revenues and expenses are no longer recognized. Instead, ARS will earn a management fee received from ARA. As a result, Q2 2010 and YTD 2010 consolidated revenue and expenses will be lower than the same periods in 2009, but EBITDA and Net Earnings will not be affected.

    
    Financial Results
    -----------------
    

Three Months Ended June 30, 2010

For the three months ended June 30, 2010 ("Q2 2010"), revenue for the Fund of $119.7 million was 10.6% lower than $133.9 million for the same period in 2009. Decreased revenue in Q2 2010 was largely attributable to:

    
    -   $5.1 million from changes in foreign exchange rates;
    -   $9.3 million as a result of accounting for the new MSA with ARA;
    -   $1.8 million in one-time imaging and laboratory services
        reimbursements in Canada recorded in Q2 2009 not applicable in Q2
        2010;
    -   Decreased reimbursements from Medicare on high-end modalities
        resulting from U.S. healthcare reform; and
    -   Lower volumes resulting from difficult market conditions in the U.S.
        including declines in office visits at our referring physicians.
    

The above declines in revenue were partially offset by:

    
    -   $4.0 million in revenue generated from the seven centres in the U.S.
        acquired in the second half of 2009;
    -   $1.1 million increase from organic growth in imaging services in
        Canada; and
    -   $1.0 million increase in cap revenue based on the Ministry of Health
        (MOH) Funding agreement for laboratory services
    

Operating, general and administrative ("OG&A") expenses of $87.0 million reflect a 10.4% decrease from the same period last year. The decrease in OG&A was due primarily to:

    
    -   $4.3 million from changes in foreign exchange rates;
    -   $9.3 million as a result of accounting for the new MSA with ARA; and
    -   Additional decreases in operating expenses due to effective cost
        containment
    

The above declines in OG&A were partially offset by:

    
    -   $3.3 million in additional costs related to the seven centres in the
        U.S acquired. in the second half of 2009; and
    -   $0.9 million in additional costs to support organic growth including
        costs related to the HRIS and RIS/PACS projects.
    

Q2 2010 EBITDA(1) totaled $32.7 million compared to $36.8 million in Q2 2009. EBITDA(1) margin of 27.3% in Q2 2010 was similar to Q2 2009 of 27.5%

The Fund's net earnings in Q2 2010 of $22.9 million or $0.25 per Fund unit were 11.9% lower than $25.9 million or $0.29 per unit in Q2 2009.

    
    Financial Summary
    -------------------------------------------------------------------------
    (C$ millions,     Three-months  Three-months    Six-months    Six-months
     except percent          ended         ended         ended         ended
     amounts)              June 30,      June 30,      June 30,      June 30,
     (unaudited)              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Net earnings for
     the period               22.9          25.9          43.8          49.0
    Less: recovery of
     income taxes             (1.6)         (0.9)         (4.7)         (2.6)
    Add: interest
     expense                   3.1           3.2           6.1           7.3
    Add: other expense           -           0.4           1.5           0.4
    Less: Foreign exchange
     gain                     (0.1)         (0.2)         (0.2)         (0.7)
    Add: Amortization          8.5           8.4          17.0          17.1
    -------------------------------------------------------------------------
    EBITDA(1)                 32.7          36.8          63.4          70.4
    Revenue                  119.7         133.9         245.1         262.2
    -------------------------------------------------------------------------
    EBITDA(1) margin as
     a percent of revenue     27.3          27.5          25.9          26.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Six Months Ended June 30, 2010

For the first six months of 2010, revenue for the Fund totaled $245.1 million, OG&A expenses totaled $181.7 million, EBITDA(1) totaled $63.4 million or 25.9% of revenue, and net earnings totaled $43.8 million or $0.49 per Fund unit, compared to revenue of $262.2 million, OG&A expenses of $ 191.8 million, EBITDA(1) of $70.4 million or 26.9% of revenue, and net earnings of $49.0 million or $0.55 per Fund unit in the first six months of 2009.

    
    Distributable Cash(2)
    ---------------------
    

For the three month period ended June 30, 2010, the Fund generated distributable cash(2) of $23.1 million and declared distributions totaling $24.0 million, representing a payout ratio of 103.9%. For the same period in 2009, the Fund generated distributable cash(2) of $24.3 million and declared distributions totaling $24.0 million, representing a payout ratio of 98.6%. The increased payout ratio is primarily due to working capital changes which are timing in nature and in part, associated with transitional arrangements relating to the new ARA MSA. Please refer to Standardized Distributable Cash(2) and Distributable Cash(2) table below.

    
    -------------------------------------------------------------------------
    Standardized
     Distributable
     Cash(3) &        Three-months  Three-months    Six-months    Six-months
     Distributable           ended         ended         ended         ended
     Cash(2) Table         June 30,      June 30,      June 30,      June 30,
     (C$000s)                 2010          2009          2010          2009
    -------------------------------------------------------------------------
    Cash flow from
     operating activities   27,060        32,505        53,337        70,283

    Less:
      Total capital
       expenditures as
       per consolidated
       statement of cash
       flows                (4,432)       (4,555)      (12,424)      (15,292)
      Expenditure relating
       to the acquisition
       of licenses and
       intangible assets    (2,502)       (1,256)       (3,270)       (1,256)
    -------------------------------------------------------------------------
    Standardized
     distributable cash(3)  20,126        26,694        37,643        53,735
    -------------------------------------------------------------------------
    Normalizing
     adjustments to
     non-cash working
     capital items(4)          737        (4,304)        6,952        (9,610)
    Capital Expenditures:
      Add back:
        Intangible asset
         acquired            1,654         1,256         1,654             -
        One time capital
         expenditures        3,206         2,280        10,368         5,226
        Changes in capital
         expenditure
         notional reserve   (2,102)       (2,184)       (4,794)          990
        Capital lease
         payments             (358)          (19)         (634)          (38)
    -------------------------------------------------------------------------
    Sub-total               23,263        23,723        51,189        51,559
    -------------------------------------------------------------------------
    Discretionary/
     non-recurring
     expenses(5)             1,192         1,130         1,317           956
    -------------------------------------------------------------------------
    Cash available for
     distribution           24,455        24,853        52,506        52,515
    -------------------------------------------------------------------------
    Non-recurring revenue/
     expense recoveries/
     supplier incentive(6)  (1,340)         (535)       (1,161)         (646)
    Distributable
     cash(2)                23,115        24,318        51,345        51,869
    -------------------------------------------------------------------------
    Distributions to
     unitholders            24,009        23,984        48,026        47,995
    Total payouts as a
     percentage of
     distributable cash(2)  103.9%         98.6%         93.5%         92.5%
    Total payouts as a
     percentage of
     standardized
     distributable cash(2)  119.3%         89.8%        127.6%         89.3%
    -------------------------------------------------------------------------
    Weighted average
     number of Fund units
     outstanding in the
     period             89,842,404    89,842,404    89,842,404    89,842,404
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Segmented Highlights
    --------------------

    Canadian Operations
    -------------------------------------------------------------------------
    (C$ millions,     Three-months  Three-months    Six-months    Six-months
     except                  ended         ended         ended         ended
     percentages)          June 30,      June 30,      June 30,      June 30,
     (unaudited)              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Revenue                   93.0          92.8         183.3         180.0
    -------------------------------------------------------------------------
    OG&A                      63.3          62.3         123.9         120.3
    -------------------------------------------------------------------------
    EBITDA(1)                 29.7          30.5          59.5          59.8
    -------------------------------------------------------------------------
    EBITDA(1) margin         32.0%         32.9%         32.4%         33.2%
    -------------------------------------------------------------------------
    Net earnings for
     the period               23.0          24.3          46.4          47.6
    -------------------------------------------------------------------------
    

Revenue in Q2 2010 of $93.0 compares with $92.8 million in the corresponding period in 2009. Additional revenue from organic growth in imaging services of $1.1 million and an increase in laboratory services cap revenue in Q2 2010 of $1.0 million was partially offset by $1.8 million in one-time imaging and laboratory services reimbursements recorded in Q2 2009, not applicable in Q2 2010. The higher OG&A expense in Q2 2010 reflects primarily additional cost to support organic growth as well as costs related to the HRIS and RIS/PACS projects. The decline in EBITDA(1) margins in Q2 2010 compared to the same period in 2009 reflects project costs associated with HRIS and RIS/PACS.

    
    U.S. Operations
    -------------------------------------------------------------------------
    US$ millions,     Three-months  Three-months    Six-months    Six-months
     except                  ended         ended         ended         ended
     percentages           June 30,      June 30,      June 30,      June 30,
     (unaudited)              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Revenue                   25.9          35.2          59.7          68.2
    -------------------------------------------------------------------------
    OG&A                      23.0          29.8          56.0          59.3
    -------------------------------------------------------------------------
    EBITDA(1)                  2.9           5.4           3.8           8.9
    -------------------------------------------------------------------------
    EBITDA(1) margin         11.1%         15.3%          6.3%         13.0%
    -------------------------------------------------------------------------
    Net earnings/(loss)
     for the period           (0.1)          1.4          (2.6)          1.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Both revenue and OG&A expense in Q2 2010 declined by US$9.0 million compared to the same period in 2009 as a result of the accounting for the new MSA with ARA. Revenue growth of US$3.9 million in Q2 2010 from acquisitions completed in the second half of 2009 were offset by volume declines resulting from slowdown in physician office visits and continued radiation exposure concerns from CT scans, as well as lower reimbursement rates from Medicare on MRI and CT procedures. The Q2 2010 EBITDA(1) margin of 11.1% was lower than 15.3% in Q2 2009 as a result of the previously noted factors.

    
    U.S. Operations - Adjusting for the new MSA
    -------------------------------------------------------------------------
    US$ millions,     Three-months  Three-months    Six-months    Six-months
     except                  ended         ended         ended         ended
     percentages           June 30,      June 30,      June 30,      June 30,
     (unaudited)              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Revenue                   25.9          35.2          59.7          68.2
    -------------------------------------------------------------------------
    Add back: Impact of
     new MSA on Revenue        9.0             -           9.0             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Adjusted Revenue          34.9          35.2          68.7          68.2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    OG&A                      23.0          29.8          56.0          59.3
    -------------------------------------------------------------------------
    Add back: Impact of
     new MSA on OG&A           9.0             -           9.0             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Adjusted OG&A             32.0          29.8          65.0          59.3
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA(1)                  2.9           5.4           3.8           8.9
    -------------------------------------------------------------------------
    Adjusted EBITDA(1)
     margin                   8.3%         15.3%          5.5%         13.0%
    -------------------------------------------------------------------------
    Net earnings/(loss)
     for the period           (0.1)          1.4          (2.6)          1.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Adjusting for the impact from the new MSA, Revenue and OG&A would have totaled US$34.9 million and US$32.0 million respectively resulting in Adjusted EBITDA(1) of US$2.9 million and an Adjusted EBITDA(1) margin of 8.3% in Q2 2010.

    
    Balance Sheet
    -------------
    

As at June 30, 2010, the Fund had working capital of $14.8 million, including cash and cash equivalents of $14.0 million, compared to working capital of $25.2 million, including cash and cash equivalents of $21.8 million as at December 31, 2009. Long-term debt of the Fund, including the current portion, was $326.7 million as at June 30, 2010, compared to $320.5 million as at December 31, 2009. The increase in debt reflect primarily additional borrowings on the revolving credit facility of $7.0 million, an increase of $1.2 million as a result of foreign exchange fluctuations on the Fund's U.S. denominated debt, partially offset by payments of obligations under capital leases. As at June 30, 2010, the Fund had approximately $62.4 million available under the revolving credit facility and 89,842,404 Fund units issued and outstanding.

    
    Notice of Conference Call
    -------------------------
    

Management of CML HealthCare Income Fund will host a conference call today, Thursday, August 12, 2010 at 10:00 am (EST) to discuss the Fund's 2010 second quarter financial results. A live audio webcast of the call will be available at www.cmlhealthcare.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. An archived replay of the webcast will be available for 90 days. A taped replay of the conference call will also be available until Thursday, August 19th, 2010 by calling 1-800-642-1687 or 416-849-0833, reference number 88323533 followed by the number sign.

    
    (1) The Fund defines EBITDA as earnings before interest, taxes,
        amortization, other expenses, goodwill impairment, gain/loss on
        disposals of property and equipment, and foreign exchange gain.
        EBITDA margins are calculated by dividing EBITDA by revenue. EBITDA
        is not a recognized measure under Canadian generally accepted
        accounting principles ("GAAP"). Management believes that, in addition
        to net earnings, EBITDA is a useful supplemental measure, as it
        provides investors with an indication of the Fund's performance.
        EBITDA is used by the Fund to analyze performance and compare
        profitability between periods. Investors should be cautioned,
        however, that EBITDA should not be construed as an alternative to net
        earnings determined in accordance with GAAP. The Fund's method of
        calculating EBITDA may differ from other companies or income trusts
        and, accordingly, EBITDA may not be comparable to measures used by
        other companies or income trusts.

    (2) Distributable Cash of the Fund is not a Canadian GAAP measure, and
        though it is generally used by Canadian open-ended trusts as an
        indicator of financial performance, it should not be seen as a
        measure of liquidity or a substitute for comparable metrics prepared
        in accordance with GAAP. One characteristic of certain non-GAAP
        measures such as Distributable Cash is the inclusion of management's
        adjustments for entity-specific issues not contemplated in a standard
        measurement, such as Standardized Distributable Cash that focuses on
        comparability across entities and consistency over time. Therefore,
        the Fund's Distributable Cash may differ from similar calculations as
        reported by other similar entities and, accordingly, may not be
        comparable to Distributable Cash as reported by such entities. The
        Fund's objective for disclosing the Distributable Cash calculation is
        to outline the net cash flow generated by the Fund that was available
        for distribution during the period and anticipated to be sustainable
        into the next period. The Fund uses Distributable Cash to evaluate,
        on a consistent basis, sustainable cash generated from its
        operations, and to evaluate cash available for distributions.

    (3) On July 18, 2007, the Canadian Institute of Chartered Accountants
        issued its interpretive release "Standardized Distributable Cash in
        Income Trusts and Other Flow Through Entities: Guidance on
        Preparation and Disclosures". The Fund has reviewed the interpretive
        release and has adopted the guidance as applicable to the Fund. The
        above table represents a summarized presentation. Please refer to our
        June 30, 2010 Management's Discussion and Analysis ("MD&A") for
        complete disclosure relating to Standardized Distributable Cash.

    (4) Comprised of adjustments related to known and measurable timing
        differences in respect of MOH cap revenue receivables; insurance
        adjustments; bonus adjustments; one-time payments made related to the
        transition to the new MSA;, amounts payable on deposits and
        acquisition costs relating to a potential future acquisition and a
        one-time settlement of non-operating receivables relating to prior
        years.

    (5) Discretionary/Non-recurring expenses represent one-time legal costs
        incurred in the quarter; additional cost under the new MSA relating
        to RIS/PACS; and non-recurring sales tax payment

    (6) Non-recurring revenue/expense recoveries/supplier incentive
        represents one-time gain on sale of an investment; recoveries of
        certain sales taxes paid; and supplier incentive received net of the
        price reductions expected on future purchase of supplies.
    

To view the Fund's Q2 2010 Financial Statements and Notes, please click here: http://files.newswire.ca/736/CML-Q2-2010-FS-Notes.pdf

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: failure to receive approval of the Conversion from unitholders or relevant regulatory authorities; a reduction of funds from operations; general economic conditions; dependence on government-based revenues in Canada; pending and proposed legislative or regulatory developments in Canada 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; our ability to complete strategic acquisitions and to integrate our acquisitions successfully; insurance coverage of sufficient scope to satisfy any liability claims; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in total patient referrals; technological change and obsolescence; loss of services of key senior management personnel; privacy laws; dependence on our operating subsidiary to pay its interest obligations to us; unpredictability and volatility of the unit price; nature of the units; fluctuations in cash distributions and capital investment; structural subordination of the units; leverage and restrictive covenants; timing and amount of capital expenditures; restrictions on potential growth; tax-related risks; redemption right; dilution; future sales of units; distribution of CML Shares and Notes on termination of the Fund; and limited unitholder liability. Additional factors related to the business operations in the U.S. imaging market include, but are not limited to: potential termination of the management services agreement between our subsidiary, American Radiology Services and American Radiology Associates, P.A., or other arrangements with contracted radiology practices; fluctuations in total patient referrals; changes in third-party reimbursement rates or methodology; increased pressure to control healthcare costs; increased competition; technological change; exposure to professional malpractice liability; potential termination of relationship with Johns Hopkins; currency fluctuations; ability to grow business in the United States; U.S. income tax matters; different regulatory environment characterized by extensive regulation; penalties arising from failure to comply with all regulations; federal and state fraud and abuse laws; reversal of Board of Physician's decisions or legislative change; loss of licensing, certification or accreditation; Certificate of Need regulations; privacy legislation; legislative change affecting prices that physicians or suppliers can charge; avoidance of fee-splitting; environmental health and safety laws; and the uncertainty of the U.S. regulatory environment.

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, 2009 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.

%SEDAR: 00020333E

SOURCE CML HEALTHCARE INC. (FORMERLY CML HEALTHCARE INCOME FUND)

For further information: For further information: Alice Dunning, MBA, CFA, Director, Corporate Communications, CML HealthCare Income Fund, (905) 565-0043 Ext. 3472, (905) 565-1776 fax, Email: dunninga@cmlhealthcare.com; Tom Weber, CA, Chief Financial Officer, CML HealthCare Income Fund, (905) 565-0043 Ext. 3402, (905) 565-1776 fax; Internet: www.cmlhealthcare.com

Organization Profile

CML HEALTHCARE INC. (FORMERLY CML HEALTHCARE INCOME FUND)

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890