Medisys Health Group Income Fund Announces Q3 2007 Results



    MONTREAL, Nov. 14 /CNW/ - Medisys Health Group Income Fund (TSX: MHG.UN)
(the "Fund"), one of Canada's leading national providers of healthcare
services to corporations, individuals and insurance companies, today announced
its financial results for the quarter ended September 30, 2007.

    
    Q3 2007 Highlights

    -   Q3 2007 revenue was $19.1 million, compared to $19.7 million in
        Q3 2006, a decrease of 3%;
    -   Corporate Health Services reported an 19% increase in EBITDA relative
        to Q3 2006;
    -   Medical Imaging increased revenues by 5% relative to Q3 2006; and
    -   Total segment operating income increased by 14% relative to Q3 2006.
    

    Financial Results

    For the three months ended September 30, 2007, consolidated revenues were
$19.1 million as compared to $19.7 million for the three months ended
September 30, 2006, a decrease of 3% or $0.6 million. The decrease in our
total revenues is primarily attributable to the termination of the Canada Post
contract on June 30, 2007.
    Medisys' Q3 2007 EBITDA(1) was $0.6 million, as compared to $0.9 million
for the three months ended September 30, 2006, a decrease of $0.3 million.
    For the three months ended September 30, 2007, Corporate Health Services
generated $10.3 million in revenue and $1.6 million in operating income, a 7%
decrease in revenue and a 19% increase in operating income relative to Q3
2006.
    Medical Imaging generated revenues of $5.9 million and operating income
of $1.1 million for the three months ended September 30, 2007, a 5% increase
in revenue and a 1% increase in operating income relative to Q3 2006.
    Insurance Medical Services generated $2.9 million in revenue and $0.5
million in operating income in Q3 2007, a 2% decrease in revenue and a 30%
increase in operating income relative to Q3 2006.

    
    ---------------------------------------
    (1) EBITDA is not a recognized measure under GAAP. Management believes
        that in addition to net income, EBITDA is a useful supplemental
        measure as it provides investors with an indication of the Fund's
        performance. Investors should be cautioned, however, that EBITDA
        should not be construed as an alternative to net income. The Fund's
        method of calculating EBITDA may differ from that of other
        companies' or income trusts' and, accordingly, EBITDA may not be
        comparable to measures used by other companies or income trusts. For
        a detailed reconciliation of EBITDA to the GAAP measure "Net Income",
        please refer to our Q3 2007 Report, filed by the Fund with the
        Canadian securities regulatory authorities and available at
        www.sedar.com.
    

    Conference Call Notice

    Medisys will host a conference call to discuss its Q3 financial results
on Wednesday, November 14th, 2007, at 11:30 am (EST). The dial-in number for
the conference call is 416-644-3431 or 1-800-589-8577 (reference No.
21252822). The call will be audiocast live and archived for 90 days at
www.medisys.ca.

    About Medisys Health Group

    Medisys Health Group is a leading Canadian provider of healthcare and
medical imaging services to corporations and individuals and health-related
underwriting support services to insurance companies. Through its national
network of facilities, including offices in Montreal, Ottawa, Toronto, Calgary
and Vancouver, Medisys' Corporate Health Services division delivers
preventive, diagnostic and consultative healthcare services to approximately
4,000 corporations, including 320 companies of the Financial Post 500.
Medisys' Medical Imaging operations service patient populations in both
Ontario and Quebec. Medisys' Insurance Medical Services division supports the
national underwriting activities of more than 60 Canadian and U.S. life and
health insurance companies. Medisys Health Group Income Fund is an
unincorporated, open-ended, limited purpose trust established to invest in
Medisys Health Group and its subsidiaries.

    This media release may contain certain forward-looking statements that
reflect the current views and/or expectations of Medisys Health Group Income
Fund, Medisys Holding LP, Medisys Health Group Inc., and Medisys Health Group
LP with respect to their respective performance, business, and future events.
Such statements are subject to a number of risks, uncertainties, and
assumptions as outlined in the Fund's management's discussion and analysis for
the period ended September 30, 2007, and other filings with the Canadian
securities regulatory authorities. Actual results and events may vary.



    
    UNAUDITED CONSOLIDATED BALANCE SHEETS
    (IN THOUSANDS OF DOLLARS)

                                                              As at
                                                  ---------------------------
                                                   September 30, December 31,
                                                           2007         2006
                                                     (Unaudited)    (Audited)
    -------------------------------------------------------------------------
    ASSETS

    Current

    Accounts receivable                               $  10,234    $  11,048
    Supplies inventory                                      409          247
    Prepaid expenses                                        568          467
    Income taxes recoverable                                266          206
    Future income taxes                                     747          485
    -------------------------------------------------------------------------
                                                         12,224       12,453

    Premises and Equipment                               17,352       17,667
    Other Assets                                          1,877        2,569
    Future Income Taxes                                     591          701
    Licenses                                             17,799       17,799
    Goodwill                                             14,060       14,060
    -------------------------------------------------------------------------

    Total Assets                                      $  63,903    $  65,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Current

    Accounts payable and accrued liabilities          $   7,969    $   7,288
    Distributions payable                                   302          602
    Current maturity of balances of purchase price        1,541        2,173
    Deferred revenue                                        420            -
    -------------------------------------------------------------------------
                                                         10,232       10,063

    Bank Indebtedness and Term Debt                      14,304       10,782
    Obligations Under Capital Leases                      2,280        3,317
    Balance of Purchase Price                               333        1,694
    Deferred Lease Inducements                            1,112          722
    Future Income Taxes                                   4,452        4,203
    -------------------------------------------------------------------------
                                                         32,713       30,781

    Exchangeable Units Interest                           8,477        9,200


    UNITHOLDERS' EQUITY

    Unitholders' Equity                                  22,713       25,268
    -------------------------------------------------------------------------

    Total Liabilities & Unitholders' Equity           $  63,903    $  65,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
    FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
    (IN THOUSANDS OF DOLLARS, EXCEPT PER UNIT AMOUNTS)

                                            Three Months       Nine Months
                                                Ended             Ended
                                            September 30,     September 30,
                                          ----------------- -----------------
                                             2007     2006     2007     2006
    -------------------------------------------------------------------------
    Revenues                              $19,078  $19,661  $66,281  $61,175

    Direct Costs, Selling and
     Administrative Expenses               18,436   18,782   61,299   56,989
    -------------------------------------------------------------------------

    Operating income from Continuing
     Operations before the undernoted
     items                                    642      879    4,982    4,186

    Amortization of premises and equipment    932      873    2,741    2,319
    Amortization of other assets              149      232      448      605
    Amortization of fair value adjustment      38       57      114      167
    Amortization of financing fees             68        -      206        -
    Security-based compensation expense       456      948    1,613    2,834
    Interest on capital lease obligations      43       77      154      236
    Interest on bank indebtedness and
     term debt                                244      221      649      584
    Other interest                             59       30      182      158
    -------------------------------------------------------------------------

    Loss from Continuing Operations
     before Income Taxes                   (1,347)  (1,559)  (1,125)  (2,717)

    Income taxes                             (917)    (207)     143     (459)
    -------------------------------------------------------------------------

    Loss from Continuing Operations          (430)  (1,352)  (1,268)  (2,258)

    Exchangeable units interest              (166)    (408)    (120)    (681)
    Dilution gain                               -        -        -   (1,030)
    -------------------------------------------------------------------------

    Net Loss from Continuing Operations      (264)    (944)  (1,148)    (547)

    Net Income from discontinued
     operations, net of income taxes
     and exchangeable unit interest             -    1,411        -    1,588
    -------------------------------------------------------------------------

    Net Income (Loss)                     $  (264) $   467  $(1,148) $ 1,041
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic Earnings per Unit
      Net loss from continuing operations $ (0.05) $ (0.18) $ (0.21) $ (0.11)
      Net income (loss)                   $ (0.05) $  0.09  $ (0.21) $  0.21
    -------------------------------------------------------------------------

    Diluted Earnings per Unit
      Net loss from continuing operations $ (0.05) $ (0.18) $ (0.22) $ (0.31)
      Net income (loss)                   $ (0.05) $  0.09  $ (0.22) $     -
    -------------------------------------------------------------------------



    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
    (IN THOUSANDS OF DOLLARS)

                                            Three Months       Nine Months
                                                Ended             Ended
                                            September 30,     September 30,
                                          ----------------- -----------------
                                             2007     2006     2007     2006
    -------------------------------------------------------------------------
    Funds Provided (Used) -
    Operating Activities
      Net Income (net loss)               $  (264) $   467  $(1,148) $ 1,041
      Results from discontinued
       operations                               -   (1,411)       -   (1,588)
    -------------------------------------------------------------------------
      Results from continuing
       operations                            (264)    (944)  (1,148)    (547)

      Amortization of premises
       and equipment                          932      873    2,741    2,319
      Amortization of other assets            149      232      448      605
      Amortization of deferred lease
       inducements                            (42)     (33)     (97)     (66)
      Amortization of fair value adjustment    38       57      114      167
      Amortization of financing fees           68        -      206        -
      Future income taxes                    (917)    (207)      97     (626)
      Security-based compensation expense     456      948    1,613    2,834
      Exchangeable units interest            (166)    (408)    (120)    (681)
      Dilution gain                             -        -        -   (1,030)
    -------------------------------------------------------------------------
                                              254      518    3,854    2,975
    Changes in non-cash operating
     elements of working capital            1,277     (748)   1,593   (1,291)
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     continuing operations                  1,531     (230)   5,447    1,684
    Net cash provided by (used in)
     discontinued operations                    -     (729)       -      653
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     operating activities                   1,531     (959)   5,447    2,337
    -------------------------------------------------------------------------

    Financing Activities
      Bank indebtedness and term debt         532   (1,105)   3,610   (3,378)
      Distributions to unitholders           (634)  (1,259)  (2,746)  (3,560)
      Distributions and advances to
       exchangeable unitholders              (272)    (544)  (1,178)  (1,618)
      Repayment of obligations under
       capital leases                        (347)    (387)  (1,037)  (1,152)
      Issue of exchangeable units               -        -        -    2,324
      Issue of units (net of issuance costs)    -        -        -    9,786
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     continuing operations                   (721)  (3,295)  (1,351)   2,402
    Net cash provided by (used in)
     discontinued operations                    -    1,731        -      385
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     financing activities                    (721)  (1,564)  (1,351)   2,787
    -------------------------------------------------------------------------

    Investing Activities
      Payment of balance of purchase price   (511)       -   (2,107)  (1,609)
      Acquisitions                              -     (120)       -   (2,361)
      Additions to premises and equipment    (337)    (822)  (2,426)  (4,502)
      Additions to deferred lease
       inducements                             38        -      487        -
      Additions to other assets                 -      (33)     (50)     (91)
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     continuing operations                   (810)    (975)  (4,096)  (8,563)
    Net cash provided by (used in)
     discontinued operations                    -      (15)       -      (74)
    Net proceeds from disposal of
     discontinued operations                    -    3,513        -    3,513
    -------------------------------------------------------------------------
    Net cash provided by (used in)
     investing activities                    (810)   2,523   (4,096)  (5,124)
    -------------------------------------------------------------------------
    Increase (decrease) in Cash           $     -  $     -  $     -  $     -

    Cash
      Beginning of Period                       -        -        -        -
    -------------------------------------------------------------------------
      End of Period                       $     -  $     -  $     -  $     -
    -------------------------------------------------------------------------
    

    %SEDAR: 00022283EF




For further information:

For further information: Stuart M. Elman, President & Chief Financial
Officer, Medisys Health Group, Phone: (514) 499-2778, Email:
stuart.elman@medisys.ca

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MEDISYS HEALTH GROUP INCOME FUND

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