- Also Announces Date for First Quarter 2014 Results -
VANCOUVER, March 19, 2014 /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, 2013. All financial results are expressed in U.S. dollars.
2013 Financial Highlights
|(in 000's of US$)||12-Month 2013||12-Month 2012||Change|
| Total operating
| Net income
| Income tax
"We are pleased with our revenue and net income performance in 2013," said Edward Wright, Chief Executive Officer of CRH Medical. "For 2014, we will continue to focus on growing revenue and work to identify complementary products or services that will enhance shareholder value."
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.
Revenues for the year ended December 31, 2013 were $7,682,628 compared to $6,848,643 for the year ended December 31, 2012. The increase in revenue is the result of the Company's sales of its CRH O'Regan System direct to physicians.
Product sales expenses for the year ended December 31, 2013 were $4,166,332 compared to $3,770,142 for the year ended December 31, 2012. The increase in product sales expenses is a result of the increase in product sales, 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 Clinical Sales Program. Product sales expense also increased as a result of the 2010 United States federal health care law's tax on medical devices that went into effect January 1, 2013. The law requires medical device manufactures to pay an excise tax equal to 2.3% of product sales, less prescribed adjustments. Product sales expenses primarily include employee wages, product cost and support, marketing programs, office expenses, professional fees, and insurance. Product sales expenses also include non-cash stock based compensation and depreciation totaling $153,973 for the year ended December 31, 2013 compared to $227,767 for the year ended December 31, 2012.
Corporate expenses for the year ended December 31, 2013 were $1,716,501 compared to $1,746,670 for the year ended December 31, 2012. Corporate and other expenses include non-cash stock based compensation and depreciation totaling $162,793 for the year ended December 31, 2013 compared to $302,726 for the year ended December 31, 2012.
For the year ending December 31, 2013 the Company recorded $692,851 as an income tax recovery. During the year, management has assessed that the Canadian entity will have future profitability and therefore has recognized the tax losses.
For the year ended December 31, 2013, the Company recorded net income of $2,492,646 ($0.051 basic and dilutive income per share) compared to a net income of $1,331,831 ($0.027 basic earnings and dilute earnings per share) for the year ended December 31, 2012. The increase was most significantly impacted as the result of recording the income tax recovery described above.
As at December 31, 2013, the Company had $6,602,798 in cash and cash equivalents compared to $4,511,770 at the end of 2012. At December 31, 2013, working capital was $7,399,110 compared to working capital of $5,347,230 as at December 31, 2012.
First Quarter, 2014 Conference Call Notification
CRH Medical intends to release its first quarter, 2014 financial results prior to market open on April 24, 2014, and host a telephone conference call to discuss the quarter on April 24, 2014 at 10:00 am 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 or (416) 849-0833 and using passcode 15868596. The phone replay will be available through May 8, 2014.
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 for 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