The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

OPMEDIC GROUP INC. announces a significant increase in net earnings and declares a dividend

Friday, January 07, 2011

OPMEDIC GROUP INC. announces a significant increase in net earnings and declares a dividend09:15 EST Friday, January 07, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./MONTREAL, Jan. 7 /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 financial results for the first quarter ended November 30, 2010.HIGHLIGHTS:-Revenue up by 49%. Revenue for the first quarter totalled $5.443 million compared to $3.665 million for the same period a year earlier.-Gross profit up by 60%. Gross profit for the first quarter totalled $3.340 million compared to $2.082 million for the same period a year earlier.-Net earnings up by 140%. Net earnings and net earnings per share for the first quarter were respectively $1.367 million and $0.08 compared to $0.569 million and $0.03 a year earlier.-Declaration of a dividend of $0.025 on common sharesRevenuesRevenue for the quarter ended November 30, 2010 totalled $5.443 million, up 49% or $1.778 million from $3.665 million for the same period in 2009. The increase in fertility activities, largely as a result of the new no-cost program under the Québec Health Insurance Plan, generated additional revenue of $1.446 million over the same period in the previous year. Revenue from the surgical activities of the OPMEDIC division continued to increase with additional revenue of $0.175 million, while the cytogenic laboratory generated additional revenue of $0.129 million for the quarter.Cost of ServicesThe cost of services for the quarter rose by $0.521 million to $2.103 million in 2010 from $1.582 million in the previous year. The increase in fertility activities necessarily incurred additional costs of $0.207 million in salaries, while supplies and professional fees were up by $0.230 million. Rising surgical activities required extra payroll expenses of $0.041 million.Gross ProfitGross profit stood at $3.340 million for the quarter ended November 30, 2010, up $1.258 million or 60% from $2.082 million a year earlier. The major increase in revenue had a direct impact on gross profit. For the fertility division, gross profit was up by $1.137 million, while the activities of the OPMEDIC division contributed $0.121 million to gross profit.Gross profit in relation to revenue for the quarter was 61% in 2010, compared with 57% in 2009. As a result of the significant increase in activities, the Company was able to realize economies of scale.General and Administrative ExpensesGeneral and administrative expenses were $1.107 million for the quarter ended November 30, 2010, up $0.163 million from $0.944 million in 2009. Professional fees were up by $0.154 million in order to successfully complete different projects, including consulting fees for the development and opening of the new Ontario fertility clinic and for the preparation of laboratory accreditation, as well as the cost of converting to international accounting standards. In addition, administrative salaries increased during the quarter by $0.038 million as a result of additional customer service staff, which was offset by a similar decline in advertising expenses.Net Earnings Net earnings and net earnings per share for the quarter ended November 30, 2010 were respectively $1.367 million and $0.08, up significantly by 140% from $0.569 million and $0.03 in 2009.DECLARATION OF DIVIDEND ON COMMON SHARESThe Company announces that its Board of Directors has declared a cash dividend of $0.025 per share payable January 28, 2011 to shareholders of record at the close of business on January 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 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: Jean-Marc LACHANCE Vice President Finance and Chief Financial Officer (514) 345-8535, x 2260 jmlachance@opmedicgroup.com