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OPMEDIC GROUP Inc. announces revenue and earnings growth and a dividend
Thursday, April 09, 2009 10:24 AM


/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES/

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, 2009.

HIGHLIGHTS:
- Revenue up by 20%. Revenue for the second quarter totalled
  $2.963 million compared to $2.473 million for the same period a year
  earlier.
- Gross profit up by 15%. Gross profit for the second quarter totalled
  $1.483 million compared to $1.287 million for the same period a year
  earlier.
- Net earnings up by 113%. Net earnings and net earnings per share for
  the second quarter were respectively $0.269 million and $0.02 compared
  to $0.126 million and $0.01 a year earlier.
- Dividend of $0.01 on common shares

Revenue

Revenue for the quarter ended February 28, 2009 totalled $2.963 million, up 20% or $0.490 million from $2.473 million for the same period a year earlier. The Company's expansion projects continue to make a positive contribution to revenue. In fact, the new cytology operations, following the acquisition of Laboratoire Cyto-Stat on March 31, 2008, generated additional revenue of $0.203 million, and the surgical operations of the OPMEDIC division resulted in additional revenue of $0.108 million partially because of the opening of the new endoscopy rooms. Lastly, prenatal screening tests continued to generate additional revenue totalling $0.149 million for the quarter, of which 70% resulted from the increase in operations.

For the first half of the year ended February 28, 2009, revenue totalled $6.428 million, up $1.194 million or 23% from $5.234 million in 2008. The cytology operations generated additional revenue of $0.515 million, while surgical activities also increased by $0.263 million. Prenatal screening tests generated increased revenue of $0.269 million, of which close to two-thirds resulted from the increase in operations. Lastly, although fertility treatments were down slightly in the last quarter, revenue for the six-month period exceeded that of the corresponding period in 2008 by $0.072 million, mainly because of the higher prices of the fertility cycles.

Cost of Services

The cost of services for the quarter rose by $0.295 million, from $1.186 million in 2008 to $1.481 million in 2009.



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