-Also Announces Date for First Quarter 2012 Results-
VANCOUVER, April 23, 2012 /CNW/ - CRH Medical Corporation (TSX-V: CRM, OTCQX: CRMMF), a North American medical company focussed on providing physicians with innovative products for the treatment of gastrointestinal diseases, today announced its financial results for the year ended December 31, 2011. All financial results are expressed in U.S dollars.
2011 Financial Highlights
|(in 000's of US$)||2011||2010||Change|
|Net income (loss)||$1,198||($1,616)||-|
|Total operating expenses||$4,377||$3,854||+14%|
"Our strategy of selling our O'Regan System directly to physicians gained significant momentum in 2011," said Edward Wright, Chief Executive Officer of CRH Medical. "Looking ahead, we are optimistic that our growth will continue to accelerate."
The O'Regan System is a single use, disposable, hemorrhoid treatment that is safe and highly effective in treating hemorrhoid grades I - IV. The Company's goal is to establish the O'Regan System as the standard of care for hemorrhoid treatment. In addition to the product, CRH Medical delivers clinical, marketing and operational support directly to its partner physicians.
- As of December 31, 2011 the Company had trained 1,054 physicians to use the O'Regan System, representing 341 clinical practices. This compares to 750 physicians trained, representing 231 clinical practices, as of December 31, 2010.
- In 2011, the Company's website received more than 240,000 visitors resulting in over 16,000 new patient calls to the 610 physicians listed on our website.
- As of December 31, 2011, the Company had $2,867,296 in cash and cash equivalents compared to $1,792,461 at December 31, 2010.
Revenues for the year ended December 31, 2011 were $5,533,433 compared to $3,645,118 for the year ended December 31, 2010.
The increase in revenue is the result of the Company's sales of its O'Regan System direct to physicians. In January of 2009, the Company initiated its direct-to-physician program that provides physicians the ability to purchase our hemorrhoid banding technology, treatment protocols, marketing and operational experience. The increase in product sales is the result of the continuing successful execution of this program, training additional physicians and supporting physicians with marketing material and other practice support to increase use of our technology.
Product sales expenses for the year ended December 31, 2011 were $2,609,648 compared to $1,957,281 for the year ended December 31, 2010. The increase in product sales expenses is a result of increased sales of the Company's O'Regan System and the cost to train and support additional physicians and practices. Product sales expenses primarily include physician wages and travel associated with training, the cost of manufacturing the O'Regan System, cost of quality systems and programs, consulting expenses, web marketing, marketing material, business development and legal expenses.
Corporate expenses for the year ended December 31, 2011 were $1,768,265 compared to $1,897,504 for the year ended December 31, 2010. Corporate expenses include payroll and related expenses of the executive management team, investor relations and administrative functions. Corporate expenses also includes cost associated with being a public company including audit fees, listing expenses, legal fees, insurance and board of director cost.
Net income for the year ended December 31, 2011 was $1,198,145 ($0.025 and $0.024 per share basic and diluted) compared to a loss of $1,616,817 ($0.03 per share basic) for the same period in 2010.
First Quarter, 2012 Notification
CRH Medical also announced today that it will release its financial results for the first quarter ended March 31, 2012, before market open on Thursday, April 26, 2012. A telephone conference call hosted by management to discuss the quarter will be held on Thursday, April 26, 2012 at 10 am ET. The telephone numbers for the conference call are (888) 231-8191 or (647) 427-7450.
At the call's completion, an audio replay will be available by calling (855) 859-2056 and using passcode 73248318. The phone replay will be available through May 10, 2012.
About CRH Medical Corporation:
CRH Medical Corporation specializes in the distribution of innovative medical products directly to physicians, particularly those in the gastroenterologist community. The Company's lead product, the CRH O'Regan System, is a single use, disposable, hemorrhoid treatment that is safe and highly effective in treating hemorrhoid grades I - IV. The O'Regan System is rapidly emerging as the standard of care with gastroenterologists who treat hemorrhoids. In addition to the product, CRH Medical delivers clinical, marketing and operational support directly to its partner physicians. CRH utilizes its web-based platform to connect doctors with patients as well as educating its ever increasing install base of physicians.
Forward looking statements:
The information in this news release contains so-called "forward-looking" statements. These include statements regarding CRH Medical's expectations and plans relating to its business, statements about CRH Medical's expectations, beliefs, intentions or strategies for the future, which may be indicated by words or phrases such as "anticipate", "expect", "intend", "plan", "will", "we believe", "CRH Medical believes", "management believes", and similar language. All forward-looking statements are based on CRH Medical's current expectations and are subject to risks and uncertainties and to assumptions made. Assumptions include: (i) that the growth of CRH's product sales will continue in a consistent manner; (ii) CRH's costs will not escalate significantly; and (iii) CRH does not incur any extraordinary costs.
Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include: (i) we may not continue to attract Gastroenterologists and other licensed providers to purchase and use the CRH O'Regan System; (ii) the policies of health insurance carriers in the United States may affect the amount of revenue the Company receives; (iii) changes in United States federal or state laws, rules, and regulations; (iv) our senior management has been key to our growth, and we may be adversely affected if we lose any member of our senior management; (v) economic dependence on suppliers and our contract manufacturer; (vi) changes in the industry and the economy may affect the Company's business; (vii) evolving regulation of corporate governance and public disclosure may result in additional corporate expenses; (viii) we may be subject to competition and technological risk which may impact the price and amount of product we can sell; (ix) we may be subject to product liability which may adversely affect our operations; * we may need to raise additional capital to fund future operations; (xi) our business may be impacted by health care reform in the United States; (xii) we may not have the expertise required to expand internationally. As a single product company, any adverse event directly or indirectly related to the CRH O'Regan System will have a material impact on the Company's financial performance. CRH Medical bases its forward-looking statements on information currently available to it, and assumes no obligation to update them, except as required by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Edward Wright, Chief Executive Officer
CRH Medical Corporation
Adam Peeler, Media and Investor Relations
416.815.0700 x 225