-Second Quarter Revenue Climbs 24% Compared to Same Period Last Year -
VANCOUVER, Aug. 2, 2012 /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 unaudited financial results for the three and six months ended June 30, 2012. All financial results are expressed in U.S dollars.
Second Quarter Financial Highlights
|(in 000's of US$)||Q2 2012||Q2 2011||Change|| 6-Month
| Total operating
"We remain focused on training physicians and providing support to their practices," said Edward Wright, Chief Executive Officer of CRH Medical. "We expect our current and future business development initiatives will increase the demand for new trainings and accelerate the usage of CRH's technology from our trained physicians going forward."
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 June 30, 2012 the Company had trained 1,197 physicians to use the O'Regan System, representing 403 clinical practices. During the same period a year earlier, the Company had trained 906 physicians, representing 288 clinical practices.
- During the second quarter, the Company's website received more than 98,000 visitors resulting in more than 7,200 new patient calls to the 913 physicians listed on our website.
- As at June 30, 2012, the Company had $3,870,566 in cash and cash equivalents compared to $2,867,296 at the end of 2011.
Revenues for the three months ended June 30, 2012 were $1,687,706 compared to $1,356,164 for the three months ended June 30, 2011. Revenues for the six months ended June 30, 2012 were $3,379,213 compared to $2,597,892 for the six months ended June 30, 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 June 30, 2012 were $854,075 compared to $626,804 for the three months ended June 30, 2011. Medical product expenses for the six months ended June 30, 2012 were $1,727,781 compared to $1,309,598 for the six months ended June 30, 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.
Corporate and other expenses for the three months ended June 30, 2012 were $506,183 compared to $490,735 for the three months ended June 30, 2011. Corporate and other expenses for the six months ended June 30, 2012 were $953,499 compared to $961,816 for the six months ended June 30, 2011. Included in corporate and other expenses for the three and six months ended June 30, 2011 are one-time charges totaling approximately $60,000 associated with the Company graduating from the Toronto Venture Exchange to the Toronto Stock Exchange on May 29, 2011.
For the three months ended June 30, 2012, the Company recorded net income of $327,448 ($0.007 income per share basic and diluted) compared to a net income of $282,311 ($0.006 and $0.005 income per share, basic and diluted) for the three months ended June 30, 2011.
For the six months ended June 30, 2012, the Company recorded net income of $697,933 ($0.014 income per share basic and diluted) compared to a net income of $348,681 ($0.007 income per share basic and diluted) for the six months ended June 30, 2011.
Second Quarter, 2012 Conference Call Notification
CRH Medical will host a telephone conference call to discuss the quarter on Friday, August 3, 2012 at 9:00 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 and using passcode 13571849. The phone replay will be available through August 17, 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.
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