/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITES STATES/
MONTREAL, Jan. 11 /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 first quarter of fiscal year 2008 ended November 30, 2007.
- Revenue up by 26%. Revenue for the first quarter totalled
$2.761 million compared to $2.197 million for the same period a year
- Gross profit up by 28%. Gross profit for the first quarter totalled
$1.552 million compared to $1.216 million for the same period a year
- Net earnings up. Net earnings and net earnings per share for the first
quarter were respectively $342,177 and 0.02. Last year, net loss and
net loss per share were respectively $757,874 and 0.05.
Revenue for the quarter ended November 30, 2007 totalled $2.761 million,
up $0.564 million or 26% from $2.197 million for the same period a year
earlier. The OPMEDIC surgical division generated additional revenue of
$0.214 million from surgery and office rental while the new surgical centre in
Laval recorded its first year of operations in 2006. Prenatal screening tests
offered by the Company were up by $0.167 million after being first offered
only in October. Lastly, each of the divisions contributed to the higher
revenue. Fertility services revenue was up by $0.106 million as a result of
increased volume, and genetic laboratory revenue reflected an increase in
caryotypes and genetic disease analyses, more specifically for cystic
fibrosis, of $0.046 million.
Cost of Services
The cost of services for the quarter rose by $0.227 million from
$0.981 million in 2006 to $1.208 million in 2007. Expenses incurred as a
result of the increased activity in the OPMEDIC surgical division partly
accounted for an increase of $0.076 million. Moreover, the prenatal screening
services offered resulted in additional payroll and supplies of $0.073
million. Lastly, the increase in fertility operations generated additional
costs of $0.068 million.
Gross profit for the quarter ended November 30, 2007 was $1.552 million,
up $0.336 million or 28% from $1.216 million in 2006. Even though gross profit
was up for each division during the quarter, the most significant improvements
were recorded for laboratory services as a result of the prenatal screening
tests and genetic tests offered, which rose by $0.140 million, and for
surgeries in the OPMEDIC division, which were up by $0.138 million.
Gross profit to revenue was 56% in 2007, compared to 55% in 2006.
General and Administrative Expenses
General and administrative expenses for the quarter ended November 30,
2007 totalled $0.763 million versus $0.775 million in 2006. Since expenses
were comparable to those of the previous year, the decline was attributable to
the higher professional fees incurred in 2006 for settlement of the prenatal
Net Earnings (Loss)
Net earnings and net earnings per share for the first quarter were
respectively $342,177 and $0.02, whereas in 2006, the net loss and net loss
per share were respectively $757,874 and $0.05. Settlement of the prenatal
screening dispute in 2006 resulted in a non-recurring expense of
$1.250 million in the first quarter.
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, firstname.lastname@example.org