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MONTREAL, Jan. 7 /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 first
quarter ended November 30, 2010.
Revenue up by 49%. Revenue for the first quarter totalled $5.443 million compared to
$3.665 million for the same period a year earlier.
Gross profit up by 60%. Gross profit for the first quarter totalled $3.340 million compared to
$2.082 million for the same period a year earlier.
Net earnings up by 140%. Net earnings and net earnings per share for the first quarter were
respectively $1.367 million and $0.08 compared to $0.569 million and
$0.03 a year earlier.
Declaration of a dividend of $0.025 on common shares
Revenue for the quarter ended November 30, 2010 totalled $5.443 million,
up 49% or $1.778 million from $3.665 million for the same period in
2009. The increase in fertility activities, largely as a result of the
new no-cost program under the Québec Health Insurance Plan, generated
additional revenue of $1.446 million over the same period in the
previous year. Revenue from the surgical activities of the OPMEDIC
division continued to increase with additional revenue of
$0.175 million, while the cytogenic laboratory generated additional
revenue of $0.129 million for the quarter.
Cost of Services
The cost of services for the quarter rose by $0.521 million to
$2.103 million in 2010 from $1.582 million in the previous year. The
increase in fertility activities necessarily incurred additional costs
of $0.207 million in salaries, while supplies and professional fees
were up by $0.230 million. Rising surgical activities required extra
payroll expenses of $0.041 million.
Gross profit stood at $3.340 million for the quarter ended November 30,
2010, up $1.258 million or 60% from $2.082 million a year earlier. The
major increase in revenue had a direct impact on gross profit. For the
fertility division, gross profit was up by $1.137 million, while the
activities of the OPMEDIC division contributed $0.121 million to gross
Gross profit in relation to revenue for the quarter was 61% in 2010,
compared with 57% in 2009. As a result of the significant increase in
activities, the Company was able to realize economies of scale.
General and Administrative Expenses
General and administrative expenses were $1.107 million for the quarter
ended November 30, 2010, up $0.163 million from $0.944 million in 2009.
Professional fees were up by $0.154 million in order to successfully
complete different projects, including consulting fees for the
development and opening of the new Ontario fertility clinic and for the
preparation of laboratory accreditation, as well as the cost of
converting to international accounting standards. In addition,
administrative salaries increased during the quarter by $0.038 million
as a result of additional customer service staff, which was offset by a
similar decline in advertising expenses.
Net earnings and net earnings per share for the quarter ended
November 30, 2010 were respectively $1.367 million and $0.08, up
significantly by 140% from $0.569 million and $0.03 in 2009.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash
dividend of $0.025 per share payable January 28, 2011 to shareholders
of record at the close of business on January 21, 2011. 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
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
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:
Vice President Finance and Chief Financial Officer
(514) 345-8535, x 2260