Stock Name: OMG
Amount: CAD 0.02
Announcement Date: 09/11/2012
Record Date: 21/11/2012
Dividend Detail:
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
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
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
Qu��bec government for IVF procedures since early January 2012. Prenatal
screening was down by $0.661��million due to the increased offer of
services in Qu��bec'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
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
revenues.
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��
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
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
previous year.
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
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
$0.020��million.
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
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
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.
SOURCE: OPMEDIC GROUP INC.
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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