VANCOUVER, April 23, 2014 /CNW/ - CRH Medical Corporation (TSX: CRH) (OTCQX: CRMMF), a North American medical company focussed on
providing physicians with innovative products for the treatment of
gastrointestinal diseases, today announced its unaudited financial
results for the first quarter ended March 31, 2014. All financial
results are expressed in U.S dollars.
First Quarter Financial Highlights
(in 000's of US$)
Total operating expenses
Net income before taxes
"The first 90 days of 2014 marked another strong and consistent quarter
for CRH," said Edward Wright, Chief Executive Officer of CRH Medical.
"Both our revenue and net income were higher compared to the same
period last year."
The Company's product, the O'Regan System is a single use, disposable,
hemorrhoid treatment that is safe and highly effective in treating
hemorrhoid grades I - IV. CRH Medical's goal is to establish the
O'Regan System as the standard of care for hemorrhoid treatment. In
addition to the product, the Company delivers clinical, marketing and
operational support directly to its partner physicians.
Revenues for the three months ended March 31, 2014 were $1,991,224
compared to $1,835,782 for the three months ended March 31, 2013. The
increase in product sales revenue is the direct result of the Company's
continued successful execution in identifying, training and supporting
gastroenterologists in their diagnosis and treatment of hemorrhoids.
The CRH O'Regan System includes our hemorrhoid banding technology,
treatment protocols, marketing and operational support.
Product sales expenses for the three months ended March 31, 2014 were
$904,903 compared to $1,158,578 for the three months ended March 31,
2013. The decrease in product sales expenses is a result of the
decrease in expenses related to the Company's Clinical Sales Program.
Product sales expenses primarily include employee wages, product cost
and support, marketing programs, office expenses, professional fees,
and insurance. Product sales expenses also include non-cash stock based
compensation and depreciation totaling $37,988 for the three months
ended March 31, 2014 compared to $53,641 for the three months ended
March 31, 2013. In the future, the Company expects to continue to
invest in activities to increase demand for trainings and use of the
CRH O'Regan System.
Corporate expenses for the three months ended March 31, 2014 were
$523,997 compared to $403,680 for the three months ended March 31,
2013. The increase in corporate expenses is a result of increased
professional fees and an increase in stock based compensation.
Corporate and other expenses include non-cash stock based compensation
and depreciation totaling $90,351 for the three months ended March 31,
2014 compared to $43,592 for the three months ended March 31, 2013. In
the future, the Company expects corporate expenses of its current
business to remain relatively constant.
For the three months ended March 31, 2014 the Company recorded tax
expense of $193,935. In 2013, the Company assessed that the Canadian
entity will have future profitability and therefore recognized a
deferred tax asset of $692,851. The tax expense for the current period
reduces the deferred tax asset and does not represent a cash expense
for the Company. In future periods, when the deferred tax asset is
depleted, the Company will be required to pay taxes.
For the three months ended March 31, 2014, the Company recorded net
income of $368,389 ($0.008 basic and $0.007 diluted income per share)
compared to a net income of $273,524 ($0.006 basic and diluted income
per share) for the three months ended March 31, 2013. Net income for
the three months ended March 31, 2014 includes income tax expense of
$193,935 compared to $nil for the three months ended March 31, 2013.
As at March 31, 2014, the Company had $7,363,095 in cash and cash
equivalents compared to $6,602,798 as at December 31, 2013. At March
31, 2014, working capital was $8,118,481 compared to working capital of
$7,399,110 as at December 31, 2013.
The Company's March 31, 2014 financial report and corresponding MD&A
will be available on www.sedar.com and the Company website at www.crhmedcorp.com.
First Quarter, 2014 Conference Call Notification
CRH Medical will host a telephone conference call to discuss the quarter
on April 24, 2014 at 10:00 am Eastern Time. The telephone numbers for
the conference call are (888) 231-8191 or (647) 427-7450.
At the call's completion, an audio replay will be available by calling
(855) 859-2056 or (416) 849-0833 and using passcode 15868596. The phone
replay will be available through May 8, 2014.
About CRH Medical Corporation:
CRH Medical Corporation is North American company focussed on providing
physicians with innovative products for the treatment of
gastrointestinal diseases. The Company's product, the CRH O'Regan
System, is a single use, disposable, hemorrhoid treatment that is safe
and highly effective in treating hemorrhoid grades I - IV. The O'Regan
System is rapidly emerging as the standard of care with
gastroenterologists who treat hemorrhoids. In addition to the product,
CRH Medical delivers clinical, marketing and operational support
directly to its partner physicians. CRH utilizes its web-based platform
to connect doctors with patients as well as educating its ever
increasing install base of physicians.
Forward looking statements:
The information in this news release contains so-called
"forward-looking" statements. These include statements regarding CRH
Medical's expectations and plans relating to its business, statements
about CRH Medical's expectations, beliefs, intentions or strategies for
the future, which may be indicated by words or phrases such as
"anticipate", "expect", "intend", "plan", "will", "we believe", "CRH
Medical believes", "management believes", and similar language. All
forward-looking statements are based on CRH Medical's current
expectations and are subject to risks and uncertainties and to
assumptions made. Assumptions include: (i) that the growth of CRH's
product sales will continue in a consistent manner; (ii) CRH's costs
will not escalate significantly; and (iii) CRH does not incur any
While it is impossible to identify all such factors, factors that could
cause actual results to differ materially from those estimated by us
include: (i) We may not continue to attract gastroenterologists and
other licensed providers to purchase and use the CRH O'Regan System;
(ii) The policies of health insurance carriers in the United States may
affect the amount of revenue the Company receives; (iii) Changes in
United States federal or state laws, rules, and regulations; (iv) Our
senior management has been key to our growth, and we may be adversely
affected if we lose any member of our senior management; (v) Economic
dependence on suppliers and our contract manufacturer; (vi) Changes in
the industry and the economy may affect the Company's business; (vii)
Evolving regulation of corporate governance and public disclosure may
result in additional corporate expenses; (viii) We may be subject to
competition and technological risk which may impact the price and
amount of product we can sell; (ix) Adverse events relating to our
product could result in loss of product sales, product liability,
medical malpractice, insurance and product recalls; * We may need to
raise additional capital to fund future operations; (xi) Our business
may be impacted by health care reform in the United States; and (xii)
We may not have the expertise required to expand internationally.
SOURCE: CRH Medical Corporation
For further information:
Edward Wright, Chief Executive Officer
CRH Medical Corporation
Adam Peeler, Media and Investor Relations
416.815.0700 x 225