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MONTREAL, Feb. 10, 2012 /CNW Telbec/ - OPMEDIC GROUP Inc. ("OPMEDIC GROUP") (TSX: OMG), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, is pleased to announce its financial results for the first quarter ended November 30, 2011.
- Leasehold improvements and enhanced patients capacity of Quebec clinic.
- Revenue down by 1%. Revenue for the first quarter totalled $5.390 million compared to $5.443 million for the same period a year earlier.
- Gross profit down by 5%. Gross profit for the first quarter totalled $3.232 million compared to $3.413 million for the same period a year earlier.
- Net profit down by 11%. Net profit and earnings per share for the first quarter were respectively $1.247 million and $0.07 compared to $1.397 million and $0.08 a year earlier.
- Declaration of a dividend of $0.02 on common shares
Revenues for the quarter ended November 30, 2011 totalled $5.390 million, down $0.053 million or 1% from $5.443 million in the same period in 2010. Fertility operations continued to grow, with revenues up $0.393 million despite the two-month partial closure of the Quebec City branch for renovations required to comply with Canada's operating room standards and to increase patient capacity. Prenatal screening was down $0.187 million primarily due to the increased services offered in the public network. Surgical operations of OPMEDIC division were down, with a $0.099 million reduction in revenues mainly as a result of the fewer hours of rental of operating rooms, while revenues from the cytogenic laboratory decreased by $0.058 million during the quarter.
Cost of Services
The cost of services for the quarter rose from $2.030 million in 2010 to $2.158 million in 2011, up $0.128 million or 6%. The increase in fertility operations entailed additional costs of $0.114 million in payroll, and $0.051 million in supplies.
Gross profit for the quarter ended November 30, 2011 stood at $3.232 million, down $0.181 million or 5% from $3.413 million in 2010. For the fertility segment, gross profit was down $0.036 million caused by the temporary closure of the Quebec City clinic for renovation, while in the OPMEDIC division, it was down by $0.145 million as a result of lower revenues.
Gross profit in relation to revenues for the quarter was 60% in 2011, versus 63% in 2010.
General and Administrative Expenses
General and administrative expenses for the three-month period ended November 30, 2011 were $1.386 million, comparable to $1.384 million in the previous quarter. There were no significant changes worth noting, except for the decline of $0.077 million in professional fees, offset by slight increases in payroll and depreciation and amortization.
Net profit and earnings per share for the quarter ended November 30, 2011 were respectively $1.247 million and $0.07, down 11% from $1.397 million and $0.08, respectively, for the previous year.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash dividend of $0.02 per share payable February 29, 2012 to shareholders of record at the close of business on February 22, 2012. Future dividends are subject to the discretion of the Board of Directors.
The Company designates this dividend to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any provinces of Canada.
Detailed financial results can be accessed on the OPMEDIC GROUP web site at www.opmedicgroup.com.
About OPMEDIC GROUP
OPMEDIC GROUP is a company incorporated under the laws of the Province of Quebec which provides healthcare-related services including surgical and endoscopic facilities and services to patients and surgeons (with its OPMEDIC division), fertility treatments, medical imaging, laboratory services and diagnostic procedures (with its PROCREA Cliniques division and one of its joint ventures) and sperm banking services (with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common Shares trade on the Toronto Stock Exchange under the symbol "OMG".
This news release does not constitute an offer to sell or to solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This news release contains certain forward-looking statements that reflect the current views and/or expectations of OPMEDIC GROUP with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
The Content of this press release has not been approved by nor submitted to the TSX which assumes no liability therefore.
For further information:
Vice President Finance and Chief Financial Officer
(514) 345-8535, x 2260