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MONTREAL, April 9 /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 second quarter ended February 28, 2010.
- Revenue up by 7%. Revenue for the second quarter totalled $3.185
million compared to $2.963 million for the same period a year earlier.
- Gross profit up by 16%. Gross profit for the second quarter totalled
$1.719 million compared to $1.483 million for the same period a year
- Net earnings up by 5%. Net earnings and net earnings per share for the
second quarter were respectively $0.283 million and $0.02 compared to
$0.269 million and $0.02 a year earlier.
- Declaration of a dividend of $0.01 on common shares
Revenue for the quarter ended February 28, 2010 totalled $3.185 million, up 7% or $0.222 million from $2.963 million for the same period a year earlier. The increase in fertility activities generated additional revenue of $0.155 million on a year-over-year basis. The surgical operations of the OPMEDIC division continued to grow with additional revenue of $0.102 million, while prenatal screening tests contributed additional revenue of $0.039 million for the quarter, of which close to 70% was accounted for by higher prices. Increased competition, however, reduced cytology operations by $0.101 million.
For the first half of the fiscal year ended February 28, 2010, revenue totalled $6.850 million, up $0.422 million or 7% from $6.428 million in 2009. An increase in fertility activities generated additional revenue of $0.332 million while surgical activities increased by $0.193 million. Prenatal screening tests were up for a total of $0.071 in revenue, of which slightly more than 70% was accounted for by higher prices. Lastly, revenue from cytology operations was down $0.234 million.
Cost of Services
The cost of services for the quarter was down slightly by $0.015 million from $1.481 million in 2009 to $1.466 million in 2010. The increase in surgical and fertility activities generated additional costs in terms of payroll and supplies of $0.046 million and $0.034 million, respectively. The decline in cytology operations resulted in savings of $0.096 million in supplies and professional fees.
For the six-month period ended February 28, 2010, the cost of services totalled $3.049 million, up minimally by $0.013 million from $3.036 million in 2009. The cost of payroll and supplies was up by $0.111 million and $0.085 million respectively as a result of the growth in surgical and fertility activities. The drop in cytology operations cut the cost of supplies and professional fees by $0.168 million.
Gross profit for the quarter ended February 28, 2010 was $1.719 million, up $0.236 million or 16% from $1.483 million in 2009. The increased activities of the fertility division improved gross profit by $0.159 million while operations in the OPMEDIC division contributed an additional $0.077 million.
Gross profit to revenue for the quarter was 54% in 2010, versus 50% in 2009. The higher gross margin resulted from the increase in OPMEDIC division operations and fertility activities, which recorded higher margins than for cytology operations since they were down.
For the first half of the fiscal year ended February 28, 2010, gross profit totalled $3.801 million versus $3.392 million for the corresponding period in 2009, for an increase of $0.409 million or 12%. The increase in fertility division operations improved gross profit by $0.278 million, while OPMEDIC division operations contributed $0.131 million.
Gross profit to revenue for the six-month period was 55% in 2010 versus 53% in 2009. The higher gross margin for the first half of the fiscal year was due to the same reasons as those for the quarter.
General and Administrative Expenses
General and administrative expenses for the quarter ended February 28, 2010 rose by $0.184 million to $0.964 million from $0.780 million in 2009. Administrative salaries were up by $0.056 million for the quarter primarily due to the hiring of a new senior officer, while professional fees increased by $0.035 million as a result of the various work outsourced for IT support and laboratory accreditation. In addition, extra expenses of $0.023 million were invested to promote the Company's operations, and a loss of $0.038 million on the disposal of surgical equipment following breakdowns affected results.
General and administrative expenses for the first half of the fiscal year totalled $1.908 million versus $1.612 million on a year-over-year basis, for an increase of $0.296 million. Administrative salaries were up $0.115 million following the hiring of a new officer and, to a lesser extent, as a result of the increase in staff to meet expanded operations. Professional fees were up $0.050 million chiefly for IT support and laboratory accreditation. Lastly, additional expenses of $0.067 million to promote the Company's operations, and a loss of $0.042 million on the disposal of equipment pushed up expenses.
Net earnings and net earnings per share for the quarter ended February 28, 2010 were up by 5% to $0.283 million and $0.02 respectively, as opposed to $0.269 million and $0.02 in 2009.
Net earnings and net earnings per share for the six-month period ended February 28, 2010 were up by 11% to $0.852 million and $0.05 respectively, compared to $0.770 million and $0.05 in 2009.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company announces that its Board of Directors has declared a cash dividend of $0.01 per share payable April 30, 2010 to shareholders of record at the close of business on April 23, 2010. 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 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