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Press release from CNW Group

OPMEDIC GROUP Inc. announces its financial results for the fourth quarter and for the year ended August 31, 2010 and declares a dividend on common shares

Monday, November 15, 2010

OPMEDIC GROUP Inc. announces its financial results for the fourth quarter and for the year ended August 31, 2010 and declares a dividend on common shares09:15 EST Monday, November 15, 2010Not for distribution to United States newswire services or for dissemination in the United States.MONTREAL, Nov. 15 /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, 2010.HIGHLIGHTS FOR THE YEAR ENDED AUGUST 31, 2010:Revenue up by 7%. Revenue for the year ended August 31, 2010 totalled $14.348 million compared to $13.405 million in 2009.Gross profit up by 10%. Gross profit for the year ended August 31, 2010 totalled $7.932 million compared to $7.228 million in 2009.Net earnings up by 12%. Net earnings and net earnings per share for the year ended August 31, 2010 were respectively $1.877 million and $0.11 compared to $1.683 million and $0.11 in 2009.RevenuesRevenue for the year ended August 31, 2010 totalled $14.348 million, up 7% or $0.943 million from $13.405 million in 2009. The increase in fertility activities generated additional revenue of $0.722 million, while revenue for the surgical segment was up by $0.457 million, of which close to 85% was attributable to the higher volume of activities, with the remainder due to a price increase. Revenue generated by prenatal screening was up by $0.069 million as a result of higher prices, despite the slightly lower volume when compared to the prior year. Lastly, cytology activities recorded a decline of $0.286 million in revenue because of increased competition in the first six months. Subsequently, the recruitment of new clients made it possible to generate revenue similar to that of the previous period.Cost of ServicesThe cost of services for the year ended August 31, 2010 rose by $0.239 million or 4% to $6.416 million from $6.177 million in the previous year. The increase in surgical and endoscopic activities incurred additional costs of $0.165 million in salaries and supplies, while in the fertility division, additional expenses also included fees of $0.240 million. The decline in cytology activities reduced expenses in supplies and professional fees by $0.203 million.Gross ProfitGross profit totalled $7.932 million for the fiscal year ended August 31, 2010, up 10% or $0.704 million from $7.228 million a year earlier. The higher volume of activities in the fertility services segment enhanced gross profit by $0.363 million, while the increase in business in the surgical and endoscopic services and facilities segment added $0.341 million to gross profit.Gross profit in relation to revenue was up slightly to 55% in 2010 from 54% in 2009.General and Administrative ExpensesGeneral and administrative expenses totalled $3.856 million for the year ended August 31, 2010, up $0.427 million from $3.429 million in 2009. Administrative salaries increased by $0.177 million as a result of the hiring of a new officer and additional customer service staff to handle the larger volume of activities. Professional fees were up by $0.069 million, primarily due to the outsourcing of IT support and the business development fees of an external consultant.Net Earnings Net earnings and net earnings per share for the year ended August 31, 2010 were respectively $1.877 million and $0.11, compared to $1.683 million and $0.11, respectively, a year earlier.HIGHLIGHTS FOR THE FOURTH QUARTER:Revenue up by 6%. Revenue for the fourth quarter totalled $3.599 million compared to $3.391 million for the same period in 2009.Gross profit up by 4%. Gross profit for the quarter ended August 31, 2010 totalled $1.922 million compared to $1.842 million in 2009.Net earnings up by 13%. Net earnings and net earnings per share for the quarter ended August 31, 2010 were respectively $0.425 million and $0.02 compared to $0.375 million and $0.02 in 2009.RevenuesRevenue for the quarter ended August 31, 2010 totalled $3.599 million, up 6% or $0.208 million from $3.391 million in the previous year.The OPMEDIC division increased its revenue from surgery, endoscopy and the rental of operating rooms by $0.168 million or 37% from the same quarter in 2009. The fertility division generated additional revenue of $0.095 million primarily because of the larger number of work-ups required to prepare patients for in vitro fertilization cycles following the Quebec government's announcement of the no-cost program.Cost of ServicesThe cost of services for the quarter ended August 31, 2010 rose by $0.128 million from $1.549 million in 2009 to $1.677 million in 2010.The higher volume of business in the OPMEDIC division generated additional costs of $0.036 million mainly in salaries and supplies, while fertility activities required additional expenses of $0.089 million in salaries, supplies and professional fees.Gross ProfitGross profit for the quarter ended August 31, 2010 rose by 4% or $0.080 million to $1.922 million from $1.842 million in 2009. Surgical and endoscopic segment activities helped improve gross profit by $0.132 million, while gross profit was down $0.052 million in the fertility segment. This temporary decline was attributable to patients waiting at the beginning of their in vitro fertilization cycle following the announcement by the Quebec government of the free program that would be effective in early August 2010.Gross profit in relation to revenue for the fourth quarter was 53% in 2010, versus 54% in 2009.General and Administrative Expenses General and administrative expenses for the quarter ended August 31, 2010 totalled $0.948 million which was comparable to $0.940 million in 2009.Net Earnings  Net earnings and net earnings per share for the fourth quarter were respectively $0.425 million and $0.02, as opposed to $0.375 million and $0.02 in 2009.DECLARATION OF DIVIDEND ON COMMON SHARESThe Company's Board of Directors has declared a cash dividend of $0.01 per share payable on November 30, 2010 to shareholders of record at the close of business on November 25, 2010. 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 GROUPOPMEDIC 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 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: SOURCE AND INFORMATION: Jean-Marc LACHANCE Vice President Finance and Chief Financial Officer (514) 345-8535, x 2260 jmlachance@opmedicgroup.com