OPMEDIC GROUP Inc. Announces 16% net earnings growth and declares a dividend on common shares

Friday, July 10, 2009 9:00 AM

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MONTREAL, July 10 /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 third quarter ended May 31, 2009.

HIGHLIGHTS:
- Revenue up by 13%. Revenue for the third quarter totalled
  $3.586 million compared to $3.167 million for the same period a year
  earlier.
- Gross profit up by 15%. Gross profit for the third quarter totalled
  $1.994 million compared to $1.736 million for the same period a year
  earlier.
- Net earnings up by 16%. Net earnings and net earnings per share for the
  third quarter were respectively $0.538 million and $0.03 compared to
  $0.463 million and $0.03 a year earlier.
- Dividend of $0.015 on common shares

Revenue

Revenue for the quarter ended May 31, 2009 totalled $3.586 million, up 13% or $0.419 million from $3.167 million for the same period a year earlier. The Company's expansion projects continued to make a positive contribution to revenue. The surgical operations of the OPMEDIC division resulted in additional revenue of $0.127 million partially because of new revenue resulting from the opening of an endoscopy centre in Quebec City in June 2008, and from the increased volume in surgeries and endoscopies at Laval. Prenatal screening tests continued to generate additional revenue totalling $0.153 million for the quarter, of which 75% was due to an increase in operations. The cytology operations produced additional revenue of $0.063 million while fertility operations contributed an increase of $0.056 million, chiefly as a result of higher prices since the previous year.

For the first nine months ended May 31, 2009, revenue totalled $10.014 million for a $1.613 million or 19% increase from $8.401 million in 2008. The cytology operations generated additional revenue of $0.578 million following the acquisition of Laboratoire Cyto-Stat in April 2008, for a contribution of nine months in 2009, compared with two months in 2008. Revenue from surgical operations was up $0.390 million following the expansion in operations. Prenatal screening tests were up for a total of $0.422 million in revenue, of which close to 70% resulted from the increase in operations. Lastly, although fertility services were slightly down, revenue for the nine-month period exceeded that of the previous year period by $0.128 million, mainly because of the higher prices of the fertility cycles.

Cost of Services

The cost of services for the quarter rose by $0.161 million from $1.430 million in 2008 to $1.591 million in 2009.

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