CML HealthCare Provides Corporate Update

CML HealthCare Provides Corporate Update 
- Announces plan to divest diagnostic imaging business  
- Annual dividend of $0.53 per common share to be paid on a quarterly
basis  
- Announces intention to implement a normal course issuer bid  
- Peter van der Velden joins the Board of Directors  
- CML to host investor call today, January 16 at 10:00 a.m. (ET) 
MISSISSAUGA, ONTARIO -- (Marketwire) -- 01/16/13 -- CML HealthCare
Inc. (TSX:CLC) (the "Company" or "CML") today announced its intention
to divest its diagnostic imaging business, with the exception of its
MRI/CT operations in Ontario. CML has commenced preliminary
discussions with a number of prospective buyers and, although there
can be no assurance that any transaction will be completed or the
timing thereof, the Company will be working diligently to complete
the sale of the business by the end of 2013. CML is committed to
working with potential buyers to facilitate a smooth transition of
the assets, with an emphasis on maintaining patient access. The
Company expects to deploy the net proceeds from the planned sale of
this business to reducing debt and to investments in its core
Laboratory Services business.  
The Company also announced the establishment of a new quarterly
dividend of $0.1325 per common share, or $0.53 per common share on an
annual basis. It is expected that the first quarterly dividend will
be payable in April 2013, subject to Board approval. Any ultimate
decision to declare and pay any future quarterly dividend will be
made by the Board of Directors of the Company, at its discretion,
based upon the Company's earnings, financial operation requirements
and other factors and conditions the Board deems advisable at that
time. The target Payout Ratio(1) associated with the new dividend
level is in the range of 80% of Adjusted Funds From Continuing
Operations(1) in 2013 following the exit of the diagnostic imaging
business. 
CML also announced its intention to implement a normal course issuer
bid ("NCIB") to repurchase common shares for cancellation. The NCIB
will be completed through the facilities of the Toronto Stock
Exchange and is subject to prior acceptance by the Exchange.
Particulars of the NCIB will be announced in due course. 
"CML has provided critical laboratory services for more than 40 years
as 
a trusted partner of medical professionals and the Ontario
Ministry of Health and Long Term Care," said Patrice Merrin, Chairman
of the CML Board of Directors. "With a central laboratory that
processes the highest volumes in Ontario - over 44 million tests
annually for approximately six million requisitions - the Company is
well positioned to deliver shareholder value. We believe a quarterly
dividend of $0.1325 per common share provides investors with
attractive income while providing CML with financial flexibility to
invest internally and on new opportunities."  
"We are making good progress towards optimizing our core Laboratory
Services business and this will remain an area of emphasis going
forward," said Thomas Wellner, President and Chief Executive Officer
of CML. "In the meantime, CML continues to generate strong margins
with a balance sheet that can support our enhancements and future
growth."  
Financial Implications of Divesting Diagnostic Imaging  
In connection with 2012 year-end financial reporting requirements,
CML will review the carrying value of the diagnostic imaging
business, which may result in a one-time, non-cash, asset impairment
charge. Fourth quarter 2012 results will also include a special
charge in respect of severances and a contract exit.  
Upon completion of the sale of the diagnostic imaging operations, CML
projects a $4 million annualized decline in corporate expenses with
the full savings to be realized following the exit of the diagnostic
imaging business. CML estimates that the new maintenance capital
expenditure requirements for its continuing operations will be $7.5
million annually. This estimate takes into account CML's ongoing
investments in its information technology and laboratory
infrastructure.  
Peter van der Velden joins the Board of Directors  
CML is pleased to announce that Peter van der Velden has been
appointed to the Company's Board of Directors. Mr. van der Velden is
the Managing General Partner of Lumira Capital and is the former
President and Chief Executive Officer of MDS Capital. He brings deep
industry knowledge of the life sciences and healthcare sector with 25
years of investing and operating experience. Mr. van der Velden is
the President of the Canada's Venture Capital & Private Equity
Association. 
Investor Call  
Analysts and investors are invited to attend a conference call today,
January 16, 2013 at 10:00 a.m. (ET) chaired by Thomas Wellner,
President and Chief Executive Officer who will discuss today's
announcements and provide a corporate update. 
To join the call, dial 416-695-6617 or 800-952-4972. Please dial in
15 minutes prior to the call to secure a line. You will be put on
hold until the conference call begins. 
A live audio webcast along with a PowerPoint presentation will be
available through www.cmlhealthcare.com. Please connect at least 15
minutes prior to the conference call to ensure adequate time for any
software download that may be needed for the webcast. An archived
replay of the webcast will be available for 90 days. 
A taped replay of the conference call will also be available until
January 30, 2013 by calling 905-694-9451 or 800-408-3053, reference
number 9108573. 
About CML HealthCare Inc.  
Based in Mississauga, Ontario, CML HealthCare Inc. is Canada's
leading community-based, medical diagnostic services provider
operating 140 patient service centres in Ontario, 94 imaging centres
in Ontario and British Columbia, and a reference laboratory in
Ontario focused on specialized coagulation testing for customers
worldwide. CML is publicly traded on the Toronto Stock Exchange under
the symbol "CLC" and has approximately 89.8 million common shares
outstanding. For more information, please visit www.cmlhealthcare.com
and follow us on Twitter @cmlhealthcare. 
(1) Adjusted funds from continuing operations ("AFFO") and Payout
Ratio are not recognized measures under IFRS. AFFO is defined as cash
flows from operating activities of continuing operations, with a
normal level of working capital, less purchases of property and
equipment in respect of routine maintenance expenditures. Payout
Ratio is defined as the Company's dividend divided by its AFFO for
the same period of time. The Company uses these terms as measures of
financial performance, as indicators of its cash flow strength, its
ability to meet future operational and capital expenditure
requirements and ability to pay dividends on the Company's common
shares. Investors should be cautioned, however that adjusted funds
from continuing operations should not be construed as an alternative
to cash provided by operating activities of continuing operations
determined in accordance with IFRS. The Company's method of
calculating adjusted funds from continuing operations may differ from
other companies and accordingly, adjusted funds from continuing
operations may not be comparable to measures used by other companies. 
Caution concerning forward-looking statements  
This document includes forward-looking statements within the meaning
of certain securities laws, including the "safe harbour" provisions
of the Securities Act (Ontario) and other provincial or territorial
securities law in Canada. These forward-looking statements include,
among others
, statements with respect to our objectives, goals and
strategies to achieve those objectives and goals, as well as
statements with respect to our beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words
"may", "will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective" and "continue" (or the negative thereof), and
words and expressions of similar import, are intended to identify
forward-looking statements. 
By their very nature, forward-looking statements involve inherent
risks and uncertainties, both general and specific, which give rise
to the possibility that predictions, forecasts, projections and other
forward-looking statements will not be achieved. Certain material
factors or assumptions are applied in making forward-looking
statements and actual results may differ materially from those
expressed or implied in such statements. We caution readers not to
place undue reliance on these statements, as a number of important
factors, many of which are beyond our control, could cause our actual
results to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed in
such forward-looking statements. These factors include, but are not
limited to: our ability to complete strategic acquisitions and to
integrate our acquisitions successfully; ability to pay dividends in
the future; dependence on government-based revenues in Canada;
general economic conditions; pending and proposed legislative or
regulatory developments in Canada including the impact of changes in
laws, regulations and the enforcement thereof; reliance on funding
models in Canada; operational and infrastructure risks including
possible equipment failure and performance of information technology
systems; intensifying competition resulting from established
competitors and new entrants in the businesses in which we operate;
insurance coverage of sufficient scope to satisfy any liability
claims; fluctuations in total patient referrals; technological change
and obsolescence; loss of services of key senior management
personnel; privacy laws; structural subordination of common shares;
leverage and restrictive covenants; fluctuations in cash timing and
amount of capital expenditures; tax-related risks; unpredictability
and volatility of the price of common shares; dilution; and future
sales of common shares. 
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When reviewing our
forward-looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. Additional information about factors that may cause actual
results to differ materially from expectations, and about material
factors or assumptions applied in making forward-looking statements,
may be found in the "Risk Factors" section of our Annual Information
Form, under "Business Risks" and elsewhere in our Management's
Discussion and Analysis of Operating Results and Financial Position
("MD&A") for the year ended December 31, 2011 and elsewhere in our
filings with Canadian securities regulators. Except as required by
Canadian securities law, we do not undertake to update any
forward-looking statements, whether written or oral, that may be made
from time to time by us or on our behalf. Such statements speak only
as of the date made.
Contacts:
CML HealthCare Inc.
Alice Dunning, MBA, CFA
Director, Corporate Communications
(905) 565-0043 ext. 3472
(905) 565-2844 (FAX)
DunningA@cml.ca 
www.cmlhealthcare.com
Twitter: @cmlhealthcare
 
 
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