Stock Name: PM
Amount: CAD 0.08
Announcement Date: 07/05/2012
Record Date: 18/05/2012
Dividend Detail:
TORONTO, May 7, 2012 /CNW/ - Prism Medical Ltd., ("Prism Medical" or
"the Company") (TSXV: PM), a leading provider of durable medical
equipment and related services to the mobility challenged, today
reported financial results for the first quarter (Q1) ended February
29, 2012.
Financial Summary
(in thousands of Canadian dollars) | Three months ended February 29/28 | ||
�� | 2012 | 2011 | % Change |
Revenues | $18,657 | $16,153 | 15.5% |
Gross profit | $7,304 | $6,635 | 10.1% |
(as % of revenues) | 39.1% | 40.8% | �� |
Net income | $809 | $838 | (3.5%) |
(as % of revenues) | 4.3% | 5.2% | �� |
EBITDA1 | $1,973 | $2,148 | (8.2%) |
(as % of revenues) | 10.6% | 13.3% | �� |
Earnings per share | �� | �� | �� |
Basic | $0.12 | $0.15 | �� |
Diluted | $0.10 | $0.12 | �� |
First Quarter Highlights
Canadian revenues grew by 35.6% in Q1 2012 compared to the same period
last year
Revenues from the US grew by 15.2% in Q1 2012 compared to Q1 2011
Advancement of�� the bundled service offering in the UK by winning a
large contract from Leonard Cheshire Disability to supply assisted
baths as well as mobile and ceiling track hoists having previously won
the service and repair business
Continued to expand sales in Quebec
Strong institutional demand driven by new build projects and replacement
programs for existing facilities in all geographies as well as
continued growth in adoption of product in the US
Continued strength in the demand for home care products and services in
all geographies
The company strengthened its management team to enable further growth
"During Q1 we continued to build our platform in the underpenetrated US
market by adding sales representatives in new territories. Over the
past five years, revenues from the United States have grown by almost
50% per year as we have advanced our local sales and service
capabilities," said Stuart Meldrum, Chief Executive Officer of Prism
Medical. "The contract with Leonard Cheshire in the UK further
validates our recent product additions, which have helped us win large,
multi-year bundled sales and service contracts. We expect the demand
for safe patient moving and handling equipment to grow rapidly over the
next decade, particularly in North America, and we are building a
leading local platform to capture market share."
Financial Review
Revenues
Total revenues for Q1 2012 grew by 15.5% to $18.7 million compared to
$16.2 million in Q1 2011. North America accounted for 50.0% of revenues
in Q1 2012 compared to 47.0% in the first quarter of 2011. North
American revenues grew by 24.2% year-over-year.
In the United States, growth was primarily driven by higher sales to
home care and institutional dealers. In Q1 2012, revenue growth was
offset by lower direct sales to integrated delivery network (IDN)
hospitals compared to favourable order timing to these IDN`s in Q1
2011.
In the Canadian market, increased government spending levels,
particularly in Ontario and geographic expansion into Quebec
contributed to revenue growth. In British Columbia, a contract to
replace end-of-life ceiling lifts in provincial hospitals contributed
strongly to Q1 2012 revenue growth.
The UK comprised 50.0% of the Company's revenues compared to 53.0% last
year. Revenues in the UK grew by 7.8% year-over-year, primarily due to
the acquisition of Movement 2 as well as strong installation revenues
resulting from the Leonard Cheshire contract.
Gross Profit
Gross profit dollars for the quarter grew by 10.1% to $7.3 million or
39.1% of revenues compared to $6.6 million or 40.8% of revenues in Q1
2011. Gross profit rate decreased slightly as a result of the mix of
business in the quarter, in particular lower rates on US installation
sales due to a lower margin on the specific completed projects. In
addition, the first quarter of 2011 was favourably impacted by a number
of one-time adjustments to margins. Also of note, in the first quarter,
we achieved a significant improvement in the gross margin rate of our
UK engineering teams as management activities delivered integration
efficiencies.
Selling, General and Administrative
Selling and marketing for the three months ended February 29, 2012
increased $0.2 million or 14.0% and general and administrative expenses
increased by $0.8 million or 21.0% compared to the same period last
year. The increase is primarily due to the impact of the Movement 2
acquisition and investment in our people and infrastructure,
particularly in the US, to support our geographic expansion.
EBITDA1
EBITDA for the quarter declined by 8.3% to $2.0 million, or 10.6% of
revenues, compared to $2.2 million, or 13.3% of revenues in the same
period last year. IFRS transitional adjustments did not impact EBITDA
for the three months ended February 29, 2012 but favourably impacted
the comparable period last year by $0.2 million.�� Excluding IFRS
adjustments, EBITDA for the quarter was on a par with the same period
in the prior year.
Net Income
Net Income for the quarter declined by 3.6% to $0.81 million compared to
$0.84 million in Q1 2011. Excluding the above noted IFRS adjustments,
net income would have increased by 16.5% ($0.7 million in Q1 2011
versus $0.8 million in Q1 2012).
Liquidity
At February 29, 2012, total debt net of cash was $12.9 million, compared
with $12.6 million at November 30, 2011.
Outlook
The Company intends to grow sales and profitability to provide a
reasonable return on shareholders' equity. The Company believes that
performance will be positively affected by continued North American
institutional demand for our products, improved manufacturing
efficiencies, greater geographic coverage, and revenues and profits
from new product introductions. Through its growth strategies, the
Company hopes to achieve continued profitable growth in the UK and
North America.
Government funding for our products, particularly in Canada and the UK
is a key driver of sales. Budgetary pressures on health care spending��
is causing government agencies to look for increasingly cost effective
solutions for health care provision and in this respect the Company
believes it is well positioned to win more business. On this basis, we
believe that our business will continue to grow in all geographies and
that the long term trend continues to be favourable.
Dividend Declaration
The Board of Directors has approved a dividend of $0.08 per common share
payable on May 31, 2012 to the shareholders of record on May 23, 2012.
Notice of Conference Call
Prism Medical will host a conference call on May 7, 2012 at 9:00 a.m.
EST to discuss its financial results.�� Stuart Meldrum, CEO, will Chair
and George Chiarucci, CFO, will co-chair the call. All interested
parties can join the call by referring to the information below:
Conference call details
Dial-In Number:��(647) 427-7450 or (888) 231-8191
Taped Replay:������ ��(416) 849-0833 or (855) 859-2056
Reference Number: ��77294134
Please dial in 15 minutes prior to the call to secure a line. A live
audio webcast of the conference call will also be available at www.prismmedicalltd.com. Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be required to
join the webcast.
About Prism Medical Ltd.
Prism Medical Ltd. is one of the largest providers and manufacturers of
durable medical equipment and related services to the mobility
challenged in Canada, the US and the UK, with more than 100,000
installations and 200,000 product solutions sold. The Prism Medical
brands include Waverley Glen and ErgoSafe, North America's leading
supplier of lifting, handling and repositioning aid products and
services across Canada and the US Freeway and Prism Service & Repair
are leading suppliers of moving and handling products and services in
the UK. For further information visit Prism Medical's website at www.prismmedicalltd.com or www.sedar.com.
1Non-IFRS Financial Measures
Prism Medical's consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS). The
Company also uses non-IFRS measures such as EBITDA to measure its
financial performance. EBITDA consists of earnings before interest,
income taxes, depreciation, amortization and stock-based compensation
expense. EBITDA is a financial metric used by many investors to compare
companies on the basis of operating results, asset value and the
ability to incur and service debt. Management believes that EBITDA is a
useful measure for evaluating the performance of the Company. EBITDA is
not a recognized measure under IFRS and does not have a standardized
meaning prescribed by IFRS and may not be comparable to similarly
titled financial metrics reported by other companies.
Forward-Looking Information
This document contains forward���looking statements relating to our
operations and to the environment in which we operate and our strategy,
action plans and investments, which may involve estimates, forecasts
and projections. These statements are not guarantees of future
performance and involve risks and uncertainties that are difficult to
predict and/or are beyond our control. A number of important factors
could cause actual outcomes and results to differ materially from those
expressed in these forward���looking statements. These factors include
those set forth in this report and our other public filings.
Consequently, readers should not place any undue reliance on such
forward���looking statements. These forward���looking statements are made
as of the date of this report. Prism Medical is under no obligation to
update any forward���looking statements contained herein should material
facts change due to new information, future events or other factors.
All forward���looking statements attributable to Prism Medical are
expressly qualified by these cautionary statements.��
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
PRISM MEDICAL LTD. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) | ||||
(thousands of Canadian dollars) | February 29 2012 $ | November 30 2011 $ | December 1 2010 $ | |
�� | �� | �� | �� | |
ASSETS | �� | �� | �� | �� |
Current assets | �� | �� | �� | �� |
Cash and cash equivalents | 1,162 | 3,113 | �� | 946 |
Accounts receivable, net | 16,017 | 16,870 | �� | 16,127 |
Inventories | 12,097 | 11,839 | �� | 12,595 |
Prepaid expenses | 1,363 | 970 | �� | 858 |
Other receivables | 763 | 1,051 | �� | 932 |
Income taxes recoverable | 187 | 193 | �� | 351 |
Total current assets | 31,589 | 34,036 | �� | 31,809 |
Deferred development costs | 1,188 | 1,057 | �� | 739 |
Property, plant and equipment | 3,462 | 3,795 | �� | 4,216 |
Goodwill | 18,335 | 18,671 | �� | 18,279 |
Intangible assets | 3,782 | 3,992 | �� | 3,067 |
Future income tax assets | 190 | 276 | �� | 559 |
Total Assets | 58,546 | 61,827 | �� | 58,669 |
LIABILITIES AND SHAREHOLDERS' EQUITY | �� | �� | �� | �� |
Current liabilities | �� | �� | �� | �� |
Bank indebtedness | 9,300 | 10,850 | �� | 8,060 |
Accounts payable and accrued liabilities | 8,228 | 9,110 | �� | 11,057 |
Current portion of�� provisions | 92 | 92 | �� | 60 |
Current portion of deferred revenue | 176 | 179 | �� | 167 |
Income taxes payable | 908 | 1,048 | �� | 643 |
Current portion of long-term debt | 2,144 | 2,096 | �� | 12,330 |
Total current liabilities | 20,848 | 23,375 | �� | 32,317 |
�� | �� | �� | �� | �� |
Long-term portion of�� provisions | 62 | 64 | �� | - |
Long-term portion of deferred revenue | 296 | 301 | �� | 285 |
Long-term debt | 2,613 | 2,768 | �� | 3,641 |
Future income tax liabilities | 1,684 | 1,671 | �� | 1,409 |
Total liabilities | 25,503 | 28,179 | �� | 37,652 |
�� | �� | �� | �� | �� |
Total Shareholders' equity | 33,043 | 33,648 | �� | 21,017 |
Total liabilities and shareholders' equity | 58,546 | 61,827 | �� | 58,669 |
�� | �� | �� | �� | �� |
�� | �� | �� | �� | �� |
PRISM MEDICAL LTD. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) �� �� �� | ||||||||||
�� | �� �� �� Three months ended | |||||||||
(thousands of Canadian dollars, except per share amounts) | February 29 2012 $ | �� | February 28 2011 $ | |||||||
�� | �� | �� | �� | |||||||
Revenues | 18,657 | �� | 16,153 | |||||||
Cost of products and services sold | 11,353 | �� | 9,518 | |||||||
Gross profit | 7,304 | �� | 6,635 | |||||||
�� | �� | �� | �� | |||||||
Expenses | �� | �� | �� | |||||||
����Selling and marketing | 1,735 | �� | 1,525 | |||||||
����General and administrative expenses | 4,308 | �� | 3,544 | |||||||
����Interest expense | 186 | �� | 472 | |||||||
����Foreign exchange (gains) | - | �� | (73) | |||||||
�� | 6,229 | �� | 5,468 | |||||||
Income before income taxes | 1,075 | �� | 1,167 | |||||||
�� | �� | �� | �� | |||||||
����Income tax provision | �� | �� | �� | |||||||
�� | ����Current | 225 | �� | 146 | ||||||
�� | ����Deferred | 41 | �� | 183 | ||||||
�� | 266 | �� | 329 | |||||||
Net income for the period | 809 | �� | 838 | |||||||
�� | �� | �� | �� | |||||||
Earnings per share | �� | �� | �� | |||||||
����Basic | 0.10 | �� | 0.15 | |||||||
����Diluted | 0.10 | �� | 0.12 | |||||||
�� | �� | �� | �� | |||||||
�� | �� | �� | �� | |||||||
PRISM MEDICAL LTD. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF TOTAL COMPREHENISVE INCOME (LOSS) (UNAUDITED) | |||||
�� | �� | Three months ended | |||
(thousands of Canadian dollars, except per share amounts) | �� | February 29 2012 $ | �� | February 28 2011 $ | |
�� | �� | �� | �� | �� | |
Net income for the period | �� | 809 | �� | 838 | |
Other comprehensive income | �� | �� | �� | �� | |
�� | Unrealized gain (loss) on translation of foreign subsidiaries | �� | (839) | �� | (965) |
Total comprehensive income (loss) for the period | �� | (30) | �� | (127) | |
�� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | |
PRISM MEDICAL LTD. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) | |||||||||||
(Thousands of Canadian dollars and number of common shares) | Number of Common Shares # | Share Capital $ | Other Paid In Capital $ | Contributed Surplus $ | Retained Earnings $ | Accumulated Other Comprehensive Income (Loss) $ | ��Total Equity $ | ||||
Balance as at November 30, 2011 | 8,334 | 23,676 | - | 703 | 9,241 | 28 | ��33,648 | ||||
���������� | ��Net income for the period | �� | - | - | - | 809 | - | 809 | |||
Other comprehensive income (loss) | �� | ������������- | - | - | - | (839) | (839) | ||||
Total comprehensive income (loss) for the period | �� | - | - | - | 809 | (839) | (30) | ||||
Stock based compensation | �� | - | �� | 92 | - | - | 92 | ||||
Dividends paid on common shares | �� | - | - | - | (667) | - | (667) | ||||
Balance as at February 29, 2012 | ������ 8,334 | 23,676 | - | 795 | 9,383 | (811) | 33,043 | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
Balance as at December 1, 2010 | 5,587 | 11,917 | 1,395 | 546 | 7,159 | - | 21,017 | ||||
���������� | ��Net income for the period | - | - | - | - | 838 | - | 838 | |||
Other comprehensive income (loss) | - | - | - | - | - | (965) | (965) | ||||
Total comprehensive income (loss) for the period | - | - | - | - | 838 | (965) | (127) | ||||
Stock based compensation | - | - | - | 23 | - | - | 23 | ||||
Dividends paid on common shares | - | - | - | - | (419) | - | (419) | ||||
Balance as at February 28, 2011 | 5,587 | 11,917 | 1,395 | 569 | 7,578 | (965) | 20,474 | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||||
PRISM MEDICAL LTD. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||
�� | �� | Three months ended | |||
(thousands of Canadian dollars) | �� | February 29 2012 $ | �� | February 28 2011 $ | |
�� | �� | �� | �� | �� | |
Cash flows from operating activities | �� | �� | �� | �� | |
Net income for the period | �� | 809 | �� | 838 | |
Cash taxes paid | �� | (167) | �� | (250) | |
Interest paid | �� | (170) | �� | (193) | |
Add (deduct) items not affecting cash | �� | �� | �� | �� | |
�� | Future income taxes | �� | 99 | �� | 144 |
�� | Depreciation and amortization | �� | 616 | �� | 486 |
�� | Stock-based compensation | �� | 92 | �� | 23 |
�� | Interest accretion on convertible debt | �� | - | �� | 95 |
�� | Foreign exchange (gain) loss | �� | - | �� | (73) |
�� | �� | 1,279 | �� | 1,070 | |
Net change in non-working capital balances related to operations | �� | (591) | �� | (3,054) | |
Cash provided by (used in) operating activities | �� | 688 | �� | (1,984) | |
�� | �� | �� | �� | �� | |
Cash flows from investing activities | �� | �� | �� | �� | |
�� | Deferred charges | �� | (175) | �� | (101) |
�� | Intangible assets | �� | (17) | �� | (25) |
�� | Purchase of property, plant and equipment | �� | (107) | �� | (138) |
Cash used in investing activities | �� | (299) | �� | (264) | |
Cash flows from financing activities | �� | �� | �� | �� | |
�� | Capital lease obligations | �� | 258 | �� | - |
�� | ��(Decrease) increase in bank indebtedness | �� | (1,550) | �� | 2,444 |
�� | ��Repayment of long-term debt | �� | (338) | �� | (723) |
�� | Dividends paid | �� | (667) | �� | (419) |
Cash provided by (used in) financing activities | �� | (2,297) | �� | 1,302 | |
�� | �� | �� | �� | �� | |
Effect of foreign exchange rate changes on cash | �� | (43) | �� | - | |
Net decrease in cash and cash equivalents during the period | �� | (1,951) | �� | (946) | |
Cash and cash equivalents, beginning of period | �� | 3,113 | �� | 946 | |
Cash and cash equivalents, end of period | �� | 1,162 | �� | - | |
For further information:
George Chiarucci
Chief Financial Officer
gchiarucci@prismmedicalltd.com��
416-260-2145 ext. 229
Jonathan Ross
TMX Equicom
jross@equicomgroup.com
416-815-0700 ext. 248
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