-Third Quarter Revenue Increases 23% Compared to Same Period Last Year -
VANCOUVER, Oct. 18, 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 and nine months ended September 30, 2012. All financial results are expressed in U.S dollars.
Third Quarter Financial Highlights
|(in 000's of US$)||Q3 2012||Q3 2011||Change|| 9-Month
| Net income
| Total operating
"The third-quarter launch of our Clinical Sales Support Program with Magellan Medical Technology Consultants exemplifies our commitment to invest in initiatives that are designed to help scale our revenues going forward," said Edward Wright, Chief Executive Officer of CRH Medical. "Over the past several quarters, our direct-to-physician model for the O'Regan System has produced strong results. It is important that we leverage the momentum we've created in order to evolve as a business, and realize the potential of both our product and our company to create greater value for our 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.
- Announced a Clinical Sales Support Program with Magellan Medical Technology Consultants Inc. to support the Company's long-term revenue growth and profitability. Magellan will work with CRH Medical to create a clinical, sales, and marketing team. This team will work to increase the adoption of the CRH O'Regan System within practices already trained by the Company, and introduce the technology to practices not yet trained.
- Started marketing the CRH O'Regan System directly to the general surgeon community. The Company acquired a database of 15,000 general surgeons in the United States which it is using to introduce surgeons to the CRH O'Regan System. The Company also attended the American College of Surgeons Annual Clinical Congress held in Chicago at the end of September.
- As of September 30, 2012 the Company had trained 1,269 physicians to use the O'Regan System, representing 425 clinical practices. During the same period a year earlier, the Company had trained 966 physicians, representing 312 clinical practices.
- As of September 30, 2012, the Company had $4,259,710 in cash and cash equivalents compared to $2,867,296 as of December 31, 2011.
Revenues for the three months ended September 30, 2012 were $1,721,601 compared to $1,396,170 for the three months ended September 30, 2011. Revenues for the nine months ended September 30, 2012 were $5,091,696 compared to $3,994,062 for the nine months ended September 30, 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 three months ended September 30, 2012 were $1,008,797 compared to $673,226 for the three months ended September 30, 2011. Product sales expenses for the nine months ended September 30, 2012 were $2,736,578 compared to $1,982,824 for the nine months ended September 30, 2011. The increase in product sales expenses is a result of the increase in product sales, physician marketing expenses to increase demand for trainings, and practice support initiatives to increase physician use of our technology. Product sales expense for the three and nine months ending September 30, 2012 also include start-up expenses related to the Company's recently announced Clinical Sales Program. Product sales expense for the three and nine months ending September 30, 2012 also include start-up expenses related to the Company's recently announced Clinical Sales Program and expenses associated with activities related to our attempt to obtain regulatory approval for the CRH O'Regan System in China.
Corporate expenses for the three months ended September 30, 2012 were $380,061 compared to $442,023 for the three months ended September 30, 2011. Corporate expenses for the nine months ended September 30, 2012 were $1,333,560 compared to $1,403,839 for the nine months ended September 30, 2011. Included in corporate expenses for the nine months ended September 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 September 30, 2012, the Company recorded net income of $337,534 ($0.007 income per share basic and diluted) compared to net income of $301,087 ($0.006 and $0.006 income per share, basic and diluted) for the three months ended September 30, 2011.
For the nine months ended September 30, 2012, the Company recorded net income of $1,035,467 ($0.021 income per share basic and diluted) compared to net income of $649,768 ($0.013 and $0.012 income per share, basic and diluted) for the nine months ended September 30, 2011.
Third Quarter, 2012 Conference Call Notification
CRH Medical will host telephone conference call to discuss the quarter on Thursday, October 18, 2012 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 47908975. The phone replay will be available through November 1, 2012.
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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