Stock Name: OMG
Amount: CAD 0.025
Announcement Date: 14/11/2011
Record Date: 17/11/2011
Dividend Detail:
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES./
MONTREAL, Nov. 14, 2011 /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 its financial results for
the fourth quarter and for the year ended August 31, 2011.
HIGHLIGHTS FOR THE YEAR ENDED AUGUST 31, 2011:
Revenue up by 55%. Revenue for the year ended August 31, 2011 totalled $22.297 million
compared to $14.348 million in 2010.
Gross profit up by 67%. Gross profit for the year ended August 31, 2011 totalled $13.267
million compared to $7.932 million in 2010.
Net earnings up by 185%. Net earnings and net earnings per share for the year ended August 31,
2011 were respectively $5.355 million and $0.31 compared to $1.877
million and $0.11 in 2010.
Revenues
Revenues for the year ended August 31, 2011 totalled $22.297million, up
55% or $7.949million from $14.348million for the same period in 2010.
The increase in fertility activities as a result of the new free
assisted procreation services program established in the Province of
Quebec generated additional revenues of $7.729million over the same
period in the previous year. Surgical and endoscopic activities
continued to grow with additional revenues of $0.446million, while
prenatal screening was down by $0.412million due to higher competition
in both the public and private sectors.
Cost of Services
The cost of services for the year ended August31, 2011 increased by
$2.614million or 41% from $6.416million in the previous year to
$9.030million in 2011. The higher volume of fertility activities
required additional costs of $1.018million in payroll, of
$0.798million in supplies, and of $0.271million in professional fees.
Surgical and endoscopic activities required extra payroll expenses and
supplies of $0.218million.
Gross Profit
Gross profit totalled $13.267million for the year ended August 31,
2011, up $5.335million or 67% from $7.932million in 2010. This
improvement was primarily attributable to the upward trend in revenues.
The fertility services segment enhanced gross profit by $5.175million,
while the surgical and endoscopic services and facilities segment
contributed $0.160million to gross profit.
Gross profit in relation to revenues rose to 60% in 2011 from 55% in
2010.
General and Administrative Expenses
General and administrative expenses rose to $4.429million for the year
ended August31, 2011, up $0.573million or 15% from $3.856million in
2010. Professional fees increased by $0.353million mainly because of
external consulting fees to prepare for convergence with the
international accounting standards, legal and consulting fees paid to
open the new fertility clinic in the city of Vaughan (Ontario), and
assessment fees for ISO 15189 accreditation of the laboratories by the Bureau de normalisation du Qubec. In addition, administrative salaries were up by $0.283million as a
result of the extra customer service staff added to handle the higher
volume of activities, which was offset by a $0.082million drop in
advertising expenses.
Net Earnings
Net earnings and net earnings per share for the year ended August 31,
2011 were respectively $5.355million and $0.31, versus $1.877million
and $0.11, respectively, for the previous year.
HIGHLIGHTS FOR THE FOURTH QUARTER:
Revenue up by 60%. Revenue for the fourth quarter totalled $5.762 million compared to
$3.599 million for the same period in 2010.
Gross profit up by 65%. Gross profit for the quarter ended August 31, 2011 totalled $3.177
million compared to $1.922 million in 2010.
Net earnings up by 174%. Net earnings and net earnings per share for the quarter ended August
31, 2011 were respectively $1.166 million and $0.07 compared to $0.425
million and $0.02 in 2010.
Revenues
Revenues for the quarter ended August31, 2011 totalled $5.762million,
up 60% or $2.163million from $3.599million in the previous year.
The increase in fertility activities as a result of the new free
assisted procreation services program established in the Province of
Quebec generated additional revenues of $2.282million, compared to the
same period in the previous year, while prenatal screening activities
were down by $0.129million due to higher competition in both the
public and private sectors.
Cost of Services
The cost of services for the quarter ended August 31, 2011 rose by
$0.908million or 54% from $1.677million in 2010 to $2.585million in
2011.
The higher volume of fertility activities entailed additional costs of
$0.328million in payroll, of $0.247million in supplies, and of
$0.108million in professional fees. In addition, the joint venture for
the clinic in the city of Vaughan (Ontario) has cost $0.169million
mainly in payroll, rent and supplies since the clinic opened on July
11, 2011.
Gross Profit
Gross profit for the quarter ended August 31, 2011 was up $1.255million
or 65% to $3.177million from $1.922million in 2010. The major
increase in revenue directly affected gross profit because of economies
of scale. For the fertility services segment, gross profit was up
$1.327million, while gross profit was down $0.072million in the
surgical and endoscopic services and facilities segment.
Gross profit in relation to revenues for the fourth quarter was 55% in
2011, versus 53% in 2010.
General and Administrative Expenses
General and administrative expenses for the quarter ended August 31,
2011 totalled $1.230million, up $0.282 million or 30% from
$0.948million in 2010. Administrative salaries increased by
$0.159million following the addition of customer service staff and the
recognition of stock-based compensation. Furthermore, $0.139 million
was required for payroll and the opening of the clinic in the city of
Vaughan (Ontario).
Net Earnings
Net earnings and net earnings per share for the fourth quarter were
respectively $1.166million and $0.07, as opposed to $0.425million and
$0.02 in 2010.
DECLARATION OF DIVIDEND ON COMMON SHARES
The Company's Board of Directors has declared a cash dividend of $0.025
per share payable on November 28, 2011 to shareholders of record at the
close of business on November 21, 2011. 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 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
significantly.
The Content of this press release has not been approved by nor submitted
to the TSX which assumes no liability therefore.
For further information:
Jean-Marc LACHANCE
Vice President Finance and Chief Financial Officer
(514) 345-8535, x 2260
jmlachance@opmedicgroup.com
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