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DISSEMINATION IN THE UNITED STATES./
MONTREAL, Nov. 9, 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, announces its financial results for the fourth
quarter and for the year ended August 31, 2012.
HIGHLIGHTS FOR THE YEAR ENDED AUGUST 31, 2012:
Revenue down by 11%. Revenue for the year ended August 31, 2012 amounted to $19.804 million
compared to $22.215 million in 2011.
Gross profit down by 20%. Gross profit for the year ended August 31, 2012 amounted to $10.259
million compared to $12.860 million in 2011.
Net earnings down by 45%. Net earnings and net earnings per share for the year ended August 31,
2012 were respectively $2.967 million and $0.17 compared to $5.442
million and $0.32 in 2011.
Revenues for the year ended August 31, 2012 amounted to $19.804 million,
down $2.411 million or 11% from $22.215 million for the same period in
2011. Despite the 17% increase in the volume of IVF procedures during
the year compared to 2011, fertility revenues decreased by
$1.342 million primarily because of the lower rates decreed by the
Québec government for IVF procedures since early January 2012. Prenatal
screening was down by $0.661 million due to the increased offer of
services in Québec's public healthcare system, and surgical activities
dropped by $0.259 million mainly because of the fewer hours of
operating room rentals.
Cost of services
The cost of services for the year ended August 31, 2012 increased by
$0.190 million or 2% to $9.545 million, compared to $9.355 million in
2011. The new activities of the South Shore endoscopic clinic required
additional costs of $0.361 million in payroll, rentals, depreciation
and medical supplies, which were offset by a drop of $0.209 million in
professional fees related mainly to prenatal screening.
Gross profit for the year ended August 31, 2012 amounted to $10.259
million, down $2.601 million or 20% from $12.860 million in 2011. The
fertility segment recorded a $2.168 decline in gross profit, while the
OPMEDIC division recorded a decline of $0.433 million due to lower
Gross profit in relation to revenues for the year was 52% in 2012,
compared to 58% in 2011.
General and administrative expenses
General and administrative expenses rose to $5.564 million for the year
ended August 31, 2012, up $1.023 million or 23% from $4.541 million in
2011. Payroll, rental and office expenses for the opening of the new
South Shore endoscopic clinic amounted to $0.182 million, while the
hiring of extra administrative support staff and higher advertising and
annual report expenses accounted for an increase of $0.211 million. In
addition, research and development expenses, net of tax credits,
amounted to $0.334 million, contrary to the previous year when there
was no project under way. The depreciation expense for property and
equipment following the fertility services segment's acquisitions in
2011 and the investments for the new endoscopic clinic represented an
increase of $0.153 million.
Net profit and net earnings per share for the year ended August 31, 2012
were respectively $2.967 million and $0.17, versus $5.442 million and
$0.32, respectively, in 2011.
HIGHLIGHTS FOR THE FOURTH QUARTER:
Revenue down by 14%. Revenue for the fourth quarter amounted to $4.874 million compared to
$5.680 million for the same period in 2011.
Gross profit down by 14%. Gross profit for the quarter ended August 31, 2012 amounted to $2.685
million compared to $3.140 million in 2011.
Net earnings down by 42%. Net earnings and net earnings per share for the quarter ended August
31, 2012 were respectively $0.684 million and $0.04 compared to $1.179
million and $0.07 in 2011.
Revenues for the quarter ended August 31, 2012 amounted to
$4.874 million, down $0.806 million or 14% from $5.680 million in the
Fertility revenues decreased by $0.617 million primarily because of the
reduction in rates for in vitro fertilization ("IVF") procedures by the Quebec government since the
beginning of January 2012, despite the 20% increase in the volume of
IVF procedures during the quarter compared to the previous period.
Prenatal screening was down $0.111 million mainly due to the increased
offer of services in the public healthcare system, and surgical
operations decreased by $0.068 million following the fewer hours of
operating room rentals.
Cost of services
The cost of services for the quarter ended August 31, 2012 was
$2.189 million versus $2.540 million in 2011, for a decline of
$0.351 million or 14%.
The lower cost of services for the quarter was justified by two
fertility research and development projects for which $0.345 million
was recognized for payroll, and $0.115 million, for supplies. These
costs were therefore charged to general and administrative expenses,
less the tax credit receivable. In addition, the new operations of the
South Shore endoscopic centre incurred costs of $0.096 million in
payroll, rentals and medical supplies.
Gross profit for the quarter ended August 31, 2012 was $2.685 million,
down $0.455 million or 14% from $3,140 million in 2011. Lower revenues
related especially to fertility had an impact on gross profit. For the
fertility segment, gross profit decreased by $0.435 million, while in
the surgical and endoscopy segment, gross profit was down
Gross profit in relation to revenues for the fourth quarter was 55% in
2012 and 2011.
General and administrative expenses
General and administrative expenses for the three-month period ended
August 31, 2012 amounted to $1.619 million, as opposed to
$1.049 million in 2011, for an increase of $0.570 million or 54%.
Payroll, rental and office expenses for the opening of the new
endoscopic centre on the South Shore amounted to $0.058 million, and
capital asset depreciation rose by $0.079 million as a result of the
previous year's fertility segment acquisitions and the investments in
the new endoscopic centre. In addition, research and development costs,
net of tax credits, amounted to $0.326 million while there had been no
project under way the previous year. Lastly, professional fees
increased $0.109 million, primarily due to the cost of acquiring
Northern Reproductive Therapies fertility clinic.
Net profit and net earnings per share for the fourth quarter were
respectively $0.684 million and $0.04, compared with $1.179 million and
$0.07, respectively, for 2011.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company's Board of Directors has declared a cash dividend of $0.02
per share payable on November 30, 2012 to shareholders of record at the
close of business on November 23, 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
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 a joint venture 7667264 Canada Inc.) 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
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.