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MONTREAL, July 9 /CNW Telbec/ - OPMEDIC GROUP Inc. ("OPMEDIC GROUP") (TSX: "OMG"), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, is pleased to announce financial results for the third quarter ended May 31, 2010.
- Revenue up by 9%. Revenue for the third quarter totalled $3.899 million
compared to $3.586 million for the same period a year earlier.
- Gross profit up by 11%. Gross profit for the third quarter totalled
$2.209 million compared to $1.994 million for the same period a year
- Net earnings up by 12%. Net earnings and net earnings per share for the
third quarter were respectively $0.600 million and $0.04 compared to
$0.538 million and $0.03 a year earlier.
- Declaration of a dividend of $0.015 on common shares
Revenue for the quarter ended May 31, 2010 totalled $3.899 million, up 9% or $0.313 million from $3.586 million for the same period a year earlier. The increase in fertility activities generated additional revenue of $0.164 million on a year-over-year basis. The surgical operations of the OPMEDIC division continued to grow with additional revenue of $0.096 million, while prenatal screening tests contributed additional revenue of $0.027 million for the quarter as a result of higher prices.
For the nine months ended May 31, 2010, revenue totalled $10.749 million, up $0.735 million or 7% from $10.014 million in 2009. An increase in fertility activities generated additional revenue of $0.496 million while surgical activities increased by $0.289 million. Prenatal screening tests were up for a total of $0.098 in revenue, of which slightly more than 75% was accounted for by higher prices. Lastly, revenue from cytology operations was down $0.249 million as a result of increased competition over the first half of the fiscal year, primarily because in the second quarter, the recruitment of new partners made it possible to generate revenue similar to that of the previous period.
Cost of Services
The cost of services for the quarter was up by $0.099 million from $1.591 million in 2009 to $1.690 million in 2010. The increase in fertility activities generated additional costs in terms of professional fees and supplies of $0.041 million, while surgical activities required an additional payroll of $0.034 million.
For the nine-month period ended May 31, 2010, the cost of services totalled $4.738 million, up by $0.110 million from $4.628 million in 2009. The cost of professional fees and supplies was up by $0.128 million and $0.126 million respectively as a result of the growth in surgical and fertility activities. The drop in cytology operations reduced the cost of supplies and professional fees by $0.170 million.
Gross profit for the quarter ended May 31, 2010 was $2.209 million, up $0.215 million or 11% from $1.994 million in 2009. The increased activities of the fertility division improved gross profit by $0.138 million while operations in the OPMEDIC division contributed $0.077 million.
Gross profit to revenue for the quarter was 57% in 2010, versus 56% in 2009.
For the nine months ended May 31, 2010, gross profit totalled $6.010 million versus $5.386 million for the corresponding period in 2009, for an increase of $0.624 million or 12%. The increase in fertility division operations improved gross profit by $0.416 million, while OPMEDIC division operations contributed $0.208 million.
Gross profit to revenue for the nine-month period was 56% in 2010, versus 54% in 2009. Gross margins were up proportionally more than revenue because revenue from fertility activities and the OPMEDIC division produces higher margins than those for cytology activities, for which revenue was down.
General and Administrative Expenses
General and administrative expenses for the quarter ended May 31, 2010 rose by $0.123 million to $1 million from $0.877 million in 2009. Administrative salaries were up by $0.067 million for the quarter primarily due to the hiring of a new senior officer, while extra expenses of $0.031 million were invested to promote the Company's surgical operations.
General and administrative expenses for the nine-month period totalled $2.908 million versus $2.489 million on a year-over-year basis, for an increase of $0.419 million. Administrative salaries were up $0.182 million following the hiring of a new officer and additional customer service staff to meet expanded operations. Professional fees were up $0.058 million chiefly for IT support and laboratory accreditation. Lastly, additional expenses of $0.098 million to promote the Company's surgical operations, and a loss of $0.042 million on the disposal of equipment pushed up expenses.
Net earnings and net earnings per share for the quarter ended May 31, 2010 were up by 12% to $0.600 million and $0.04 respectively, as opposed to $0.538 million and $0.03 in 2009.
Net earnings and net earnings per share for the nine-month period ended May 31, 2010 were up by 11% to $1.452 million and $0.09 respectively, compared to $1.308 million and $0.08 in 2009.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash dividend of $0.015 per share payable July 30, 2010 to shareholders of record at the close of business on July 23, 2010. Future dividends are subject to the discretion of the Board of Directors.
The Company designates this dividend to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any provinces of Canada.
Detailed financial results can be accessed on the OPMEDIC GROUP web site at www.opmedicgroup.com.
About OPMEDIC GROUP
OPMEDIC GROUP is a company incorporated under the laws of the Province of Quebec which provides healthcare-related services including surgical and endoscopic 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 vary significantly.
The Content of this press release has not been approved by nor submitted to the TSX which assumes no liability therefore.
SOURCE Opmedic Group Inc.
For further information: For further information: Jean-Marc Lachance, Vice President Finance and Chief Financial Officer, (514) 345-8535, x 2260, email@example.com