- Also Announces Date for First Quarter 2014 Results -
VANCOUVER, March 19, 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 audited financial
results for the year ended December 31, 2013. All financial results are
expressed in U.S. dollars.
2013 Financial Highlights
(in 000's of US$)
"We are pleased with our revenue and net income performance in 2013,"
said Edward Wright, Chief Executive Officer of CRH Medical. "For 2014,
we will continue to focus on growing revenue and work to identify
complementary products or services that will enhance shareholder
The Company's lead 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 year ended December 31, 2013 were $7,682,628 compared
to $6,848,643 for the year ended December 31, 2012. The increase in
revenue is the result of the Company's sales of its CRH O'Regan System
direct to physicians.
Product sales expenses for the year ended December 31, 2013 were
$4,166,332 compared to $3,770,142 for the year ended December 31, 2012.
The increase in product sales expenses is a result of the increase in
product sales, physician marketing expenses to increase demand for
trainings, practice support initiatives to increase physician use of
our technology, and expenses related to the Company's Clinical Sales
Program. Product sales expense also increased as a result of the 2010
United States federal health care law's tax on medical devices that
went into effect January 1, 2013. The law requires medical device
manufactures to pay an excise tax equal to 2.3% of product sales, less
prescribed adjustments. 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
$153,973 for the year ended December 31, 2013 compared to $227,767 for
the year ended December 31, 2012.
Corporate expenses for the year ended December 31, 2013 were $1,716,501
compared to $1,746,670 for the year ended December 31, 2012. Corporate
and other expenses include non-cash stock based compensation and
depreciation totaling $162,793 for the year ended December 31, 2013
compared to $302,726 for the year ended December 31, 2012.
For the year ending December 31, 2013 the Company recorded $692,851 as
an income tax recovery. During the year, management has assessed that
the Canadian entity will have future profitability and therefore has
recognized the tax losses.
For the year ended December 31, 2013, the Company recorded net income of
$2,492,646 ($0.051 basic and dilutive income per share) compared to a
net income of $1,331,831 ($0.027 basic earnings and dilute earnings per
share) for the year ended December 31, 2012. The increase was most
significantly impacted as the result of recording the income tax
recovery described above.
As at December 31, 2013, the Company had $6,602,798 in cash and cash
equivalents compared to $4,511,770 at the end of 2012. At December 31,
2013, working capital was $7,399,110 compared to working capital of
$5,347,230 as at December 31, 2012.
The Company's December 31, 2013 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 intends to release its first quarter, 2014 financial results
prior to market open on April 24, 2014, and 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 lead 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 for
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
Important risk factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements 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) Our Clinical Sales Representatives may not be able to
increase adoption of the CRH O'Regan System; (vi) economic dependence
on suppliers and our contract manufacturer; (vii) changes in the
industry and the economy may affect the Company's business; (viii)
evolving regulation of corporate governance and public disclosure may
result in additional corporate expenses; (ix) we may be subject to
competition and technological risk which may impact the price and
amount of product we can sell; * we may be subject to product
liability which may adversely affect our operations; (xi) we may need
to raise additional capital to fund future operations; (xii) our
business may be impacted by health care reform in the United States;
(xiii) we may not have the expertise required to expand
internationally. As a single product company, any adverse event
directly or indirectly related to the CRH O'Regan System will have a
material impact on the Company's financial performance. CRH Medical
bases its forward-looking statements on information currently available
to it, and assumes no obligation to update them, except as required by
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