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MONTREAL, Jan. 7 /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 financial results for the first quarter ended November 30, 2009.
- Revenue up by 6%. Revenue for the first quarter totalled $3.665 million
compared to $3.465 million for the same period a year earlier.
- Gross profit up by 9%. Gross profit for the first quarter totalled
$2.083 million compared to $1.909 million for the same period a year
- Net earnings up by 14%. Net earnings and net earnings per share for the
first quarter were respectively $0.569 million and $0.03 compared to
$0.501 million and $0.03 a year earlier.
- Declaration of a dividend of $0.015 on common shares
Revenue for the quarter ended November 30, 2009 totalled $3.665 million, up 6% or $0.200 million from $3.465 million for the same period a year earlier. The increase in fertility operations generated additional revenue of $0.216 million on a year-over-year basis. The surgical operations of the OPMEDIC division continued to grow with additional revenue of $0.091 million, while prenatal screening tests contributed additional revenue of $0.033 million for the quarter. Increased competition, however, reduced cytology operations by $0.132 million.
Cost of Services
The cost of services for the quarter rose by $0.026 million from $1.556 million in 2008 to $1.582 million in 2009. The increase in surgical and fertility operations generated additional costs in salaries and supplies of $0.065 million and $0.021 million, respectively. The decline in cytology operations resulted in savings of $0.057 million in professional fees.
Gross profit for the quarter ended November 30, 2009 was $2.083 million, up $0.174 million or 9% from $1.909 million in 2008. The increased operations of the fertility division improved gross profit by $0.120 million while operations in the OPMEDIC division contributed an additional $0.054 million.
Gross profit to revenue for the quarter was 57% in 2009, versus 55% in 2008.
General and Administrative Expenses
General and administrative expenses for the quarter ended November 30, 2009 rose by $0.112 million to $0.944 million from $0.832 million in 2008. Administrative salaries were up by $0.059 million during the quarter after the hiring of a new senior officer and an increase in staff to keep pace with the growth in operations. In addition, extra expenses of $0.044 million were invested to promote the Company's operations.
Net earnings and net earnings per share for the quarter ended November 30, 2009 were respectively $0.569 million and $0.03, as opposed to $0.501 million and $0.03 in 2008.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash dividend of $0.015 per share payable January 29, 2010 to shareholders of record at the close of business on January 22, 2010. Future dividends are subject to the discretion of the Board of Directors.
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 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.
SOURCE Opmedic Group Inc.
For further information: For further information: Jean-Marc LACHANCE, Vice President Finance and Chief Financial Officer, (514) 345-8535, x 2260, firstname.lastname@example.org