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MONTREAL, July 10 /CNW Telbec/ - OPMEDIC GROUP Inc. ("OPMEDIC GROUP")
(TSX: "OMG"), a healthcare-related services company providing facilities and
services to patients and surgeons, is pleased to announce financial results
for the third quarter ended May 31, 2008.
- Revenue up by 25%. Revenue for the third quarter totalled
$3.167 million compared to $2.536 million for the same period a year
- Gross profit up by 22%. Gross profit for the third quarter totalled
$1.736 million compared to $1.423 million for the same period a year
- Net earnings up by 60%. Net earnings and net earnings per share for the
third quarter were respectively $463,031 and 0.03 compared to $289,862
and 0.02 a year earlier.
- On March 31, 2008, the Company acquired the assets of 9070-5765
Québec Inc., operating as "Laboratoire Cyto-Stat" and specializing in
cytology and anatomic pathology for an aggregate purchase price of
$770,000, paid in cash.
Revenue for the quarter ended May 31, 2008 totalled $3.167 million, up
$0.631 million or 25% from $2.536 million for the same period a year earlier.
The fertility division accounted for most of the increase by contributing
additional revenue of $0.231 million, of which close to 60% was due to an
increase in operations, and the remainder, to higher prices. The new cytology
operations, following the acquisition of Laboratoire Cyto-Stat, generated
additional revenue of $0.193 million for the first two months of operation.
The OPMEDIC division, the prenatal screening tests offered, the ultrasounds
and the genetic and cytogenetic laboratory tests all generated additional
revenue totalling $0.195 million in the past quarter.
For the first nine months of the fiscal year, revenue totalled
$8.401 million, for a $1.536 million or 22% increase from $6.865 million in
2007. The fertility division generated additional revenue of $0.494 million,
of which close to 65% was due to higher volume, and 35%, to higher prices.
Revenue from the OPMEDIC division, dedicated to one-day elective surgeries,
was up $0.355 million as a result of an increase in its operations. Prenatal
screening tests and ultrasounds rose by $0.341 million primarily because
prenatal screening, which was first offered in October 2006, was available for
one month less compared to the current year. Finally, for laboratory services,
in addition to the extra $0.193 million in revenue from cytology, additional
revenue of $0.132 million was also generated by genetic and cytogenetic
Cost of Services
The cost of services for the quarter rose by $0.317 million from
$1.113 million in 2007 to $1.430 million in 2008. The new cytology operations
and the increase in prenatal screening tests incurred additional expenses of
$0.137 million in payroll, professional fees and supplies. The increase in
fertility operations also resulted in additional costs of $0.082 million in
payroll and supplies. Lastly, the new endoscopic services available required
additional costs of $0.066 million, mainly to cover the cost of the new
For the nine months ended May 31, 2008, the cost of services totalled
$3.825 million, up $0.677 million or 22% from $3.148 million in 2007. The
increase in fertility operations, the OPMEDIC division and prenatal screening,
including the new cytology operations, required additional outlays of
$0.209 million, $0.217 million and $0.219 million for payroll, rent and
Gross profit for the quarter ended May 31, 2008 was $1.736 million, up
$0.313 million or 22% from $1.423 million in 2007. The gross profit for each
of the divisions of the fertility services business unit was up, for a total
of $0.359 million, whereas the opening of the new endoscopy centre slightly
reduced the gross profit of the surgical services and facilities business
Gross profit to revenue for the quarter was 55% in 2008, versus 56% in
For the nine-month period ended May 31, 2008, gross profit stood at
$4.576 million versus $3.718 million in 2007, for an increase of
$0.858 million or 23%. The gross profit for each of the divisions of the
fertility services business unit was up, for a total of $0.748 million, while
the gross profit of the surgical services and facilities business unit
improved by $0.110 million.
Gross profit to revenue for the nine-month period remained unchanged from
the previous year at 54%.
General and Administrative Expenses
General and administrative expenses for the quarter ended May 31, 2008
rose by $0.084 million to $0.775 million from $0.691 million in 2007. The
increase of $0.036 million in payroll and additional expenses as a result of
the opening of the endoscopy centre accounted for the change.
For the first nine months of the fiscal year, general and administrative
expenses totalled $2.366 million, up $0.177 million from $2.189 million in
2007. The difference was attributable to the $0.070 million loss recognized on
the disposal of tangible assets, the $0.065 million increase in payroll and
the expenses of both endoscopy centres.
Net Earnings (Loss)
Net earnings and net earnings per share for the third quarter were
respectively $463,031 and $0.03, compared to $289,862 and $0.02 in 2007.
For the nine-month period, net earnings and net earnings per share were
respectively $931,542 and $0.06, compared to a net loss and net loss per share
of respectively $400,288 and $0.02 in 2007.
Detailed financial results can be accessed on the OPMEDIC GROUP web site
About OPMEDIC GROUP
OPMEDIC GROUP is a company incorporated under the laws of the Province of
Quebec which provides healthcare-related services including surgical
facilities and services to patients and surgeons (with its OPMEDIC division),
fertility treatments, medical imaging, laboratory services and diagnostic
procedures (with its PROCREA Cliniques division) and sperm banking services
(with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common
Shares trade on the Toronto Stock Exchange under the symbol "OMG".
This news release does not constitute an offer to sell or to solicitation
of an offer to buy any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offering would be
unlawful. This news release contains certain forward-looking statements that
reflect the current views and/or expectations of OPMEDIC GROUP with respect to
its performance, business and future events. Such statements are subject to a
number of risks, uncertainties and assumptions. Actual results and events may
The Content of this press release has not been approved by nor submitted
to the TSX which assumes no liability therefore.
For further information:
For further information: Jean-Marc Lachance, Vice President Finance and,
Chief Financial Officer, (514) 345-8535, x 2260, email@example.com