- Also Announces Date for First Quarter, 2013 Results-
VANCOUVER, March 20, 2013 /CNW/ - CRH Medical Corporation (TSX: CRH, OTCQX: CRMMF), a North American medical company focussed on providing physicians with innovative products for the treatment of gastrointestinal diseases, today announced its audited financial results for the year ended December 31, 2012. All financial results are expressed in U.S dollars.
2012 Financial Highlights
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"As evidenced by our growing year-over-year revenues and net income, our sales and marketing initiatives for the CRH O'Regan System gained momentum in 2012," said Edward Wright, Chief Executive Officer of CRH Medical. "Looking ahead, we plan to build on that positive trend through additional initiatives designed to drive our revenues higher."
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. CRH Medical's goal is to establish the O'Regan System as the standard of care for hemorrhoid treatment. In addition to the product, the Company delivers clinical, marketing and operational support directly to its partner physicians.
2012 Operational Highlights
- Announced a Clinical Sales Support Program to support the Company's long-term revenue growth and profitability. CRH's dedicated representatives made important progress in 2012 in their territories, which include Miami, Atlanta, San Antonio/Houston and Dallas. The team is working to increase the adoption of the O'Regan System within practices already trained by the Company, and introduce the technology to practices not yet trained. By mid 2013, the Company should have enough data to evaluate the effectiveness of this program.
- As of December 31, 2012, the Company has trained 1,332 physicians to use the O'Regan System, representing 451 clinical practices. This compares to 1,054 physicians trained, representing 341 clinical practices, as of December 31, 2011.
- As at December 31, 2012, the Company had $4,511,770 in cash and cash equivalents compared to $2,867,296 at the end of 2011.
Revenues for the year ended December 31, 2012 were $6,848,643 compared to $5,533,433 for the year ended December 31, 2011. The increase in revenue is the result of the Company's sales of its CRH O'Regan System directly to physicians.
Product sales expenses for the year ended December 31, 2012 were $3,770,142 compared to $2,609,648 for the year ended December 31, 2011. The increase in product sales expenses is largely attributable to the increase in physician marketing expenses to increase demand for trainings, practice support initiatives to increase physician use of our technology, and expenses related to the Company's recently announced Clinical Sales Program.
Corporate expenses for the year ended December 31, 2012 were $1,746,670 compared to $1,768,265 for the year ended December 31, 2011. Corporate and other expenses include non-cash stock based compensation and depreciation totaling $302,726 for the year ended December 31, 2012 compared to $224,950 for the year ended December 31, 2011. In the future, the Company expects corporate expenses of its current business to remain relatively constant.
For the year ended December 31, 2012, the Company recorded net income of $1,331,831 ($0.027 basic and dilutive income per share) compared to a net income of $1,198,145 ($0.025 basic earnings per share, $0.024 diluted earnings per share) for the year ended December 31, 2011.
First Quarter, 2013 Conference Call Notification
CRH Medical intends to release its first quarter, 2013 financial results and host a telephone conference call to discuss the quarter on April 23, 2013 at 5:00 pm 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 24136939. The phone replay will be available through May 7, 2013.
About CRH Medical Corporation:
CRH Medical Corporation is North American company focussed on providing physicians with innovative products for the treatment of gastrointestinal diseases. 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) Our Clinical Sales Representatives may not be able to increase adoption of the CRH O'Regan System; (vi) economic dependence on suppliers and our contract manufacturer; (vii) changes in the industry and the economy may affect the Company's business; (viii) evolving regulation of corporate governance and public disclosure may result in additional corporate expenses; (ix) we may be subject to competition and technological risk which may impact the price and amount of product we can sell; * we may be subject to product liability which may adversely affect our operations; (xi) we may need to raise additional capital to fund future operations; (xii) our business may be impacted by health care reform in the United States; (xiii) 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.
SOURCE: CRH Medical Corporation
For further information:
Edward Wright, Chief Executive Officer
CRH Medical Corporation
Adam Peeler, Media and Investor Relations
416.815.0700 x 225