- First Quarter Revenue Climbs 35% Compared to Same Period Last Year -
VANCOUVER, April 26, 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 unaudited financial results for the three months ended March 31, 2012. All financial results are expressed in U.S dollars.
First Quarter Financial Highlights
|(in 000's of US$)||Q1 2012||Q1 2011||Change|
|Total operating expenses||$1,321||$1,154||+14%|
"The Company's revenue growth continues to accelerate because our strategy of selling directly to physicians is working," said Edward Wright, Chief Executive Officer of CRH Medical. "As we move forward, we anticipate that our revenues, on a long term basis, will continue to grow as we invest in activities to increase the number of physicians trained, and overall physician use of our technology."
Wright added, "The goodwill we are creating in the gastroenterology community puts the Company in a strong position with physicians. To capitalize on this, we will continue to evaluate additional products and or services that have the potential to enhance value for both physicians and shareholders."
The Company's lead product, 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 March 31, 2012 the Company had trained 1,120 physicians to use the O'Regan System, representing 370 clinical practices. During the same period a year earlier, the Company had trained 833 physicians, representing 260 clinical practices.
- During the first quarter, the Company's website received more than 104,000 visitors resulting in more than 7,600 new patient calls to the 750 physicians listed on our website.
- As at March 31, 2012, the Company had $3,356,997 in cash and cash equivalents compared to $2,867,296 at the end of 2011.
Revenues for the three months ended March 31, 2012 were $1,691,507 compared to $1,249,835 for the three months ended March 31, 2011. The increase in revenue is the result of the Company's sales of its CRH O'Regan System direct to physicians.
Medical product expenses for the three months ended March 31, 2012 were $873,706 compared to $682,794 for the three months ended March 31, 2011. The increase in medical product expenses is a result of the increase in product sales, physician marketing expenses to enhance demand for trainings, and practice support initiatives to increase physician use of our technology. Medical product expenses primarily include employee wages, product cost and support, marketing, office expenses, professional fees, and insurance. Medical product expenses also include non-cash stock based compensation and depreciation totaling $71,466 for the three months ended March 31, 2012 compared to $67,649 for the three months ended March 31, 2011. In the future, the Company expects to continue to invest in activities to increase demand for trainings and use of the CRH O'Regan System.
Corporate and other expenses for the three months ended March 31, 2012 were $447,316 compared to $471,081 for the three months ended March 31, 2011. Corporate and other expenses include non-cash stock based compensation and depreciation totaling $78,284 for the three months ended March 31, 2012 compared to $83,115 for the three months ended March 31, 2011. In the future, the Company anticipates that corporate and other expenses of its current business will remain relatively constant.
For the three months ended March 31, 2012, the Company recorded net income of $370,485 ($0.008 income per share basic and diluted) compared to a net income of $66,369 ($0.001 income per share basis and diluted) for the three months ended March 31, 2011.
First Quarter, 2012 Conference Call Notification
CRH Medical will host telephone conference call to discuss the quarter on Thursday, April 26, 2012 at 10:00am Eastern Time. 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