-First Quarter Revenue Increases 9% Compared to Same Period Last Year -
VANCOUVER, April 23, 2013 /CNW/ - CRH Medical Corporation (TSX: CRH, OTCQX:
CRMMF), a North American medical company focussed on providing physicians with
innovative products for the treatment of gastrointestinal diseases, today
announced its unaudited financial results for the three months ended March 31,
2013. All financial results are expressed in U.S dollars.
First Quarter Financial Highlights
|(in 000's of US$)|Q1 2013|Q1 2012|Change|
| Revenue |$1,836 |$1,691 | +9% |
| Net income | $274 | $370 | -26% |
| Total operating |$1,562 |$1,321 | +18% |
| expenses | | | |
"The first quarter of 2013 marked another consecutive period of steady revenue
growth," said Edward Wright, Chief Executive Officer of CRH Medical. "We
continued to invest a portion of our net income towards initiatives that we
believe will accelerate revenue growth such as the Clinical Support Specialist
Program. As expected, these initiatives caused our operating expenses to
increase and our quarter-over-quarter net income to decrease. For the
remainder of the year, we will continue to invest in initiatives that we
believe will support our long-term revenue growth."
The Company's lead product, the O'Regan System is a single use, disposable,
hemorrhoid treatment that is safe and highly effective in treating hemorrhoid
grades I - IV. The Company's goal is to establish the O'Regan System as the
standard of care for hemorrhoid treatment. In addition to the product, CRH
Medical delivers clinical, marketing and operational support directly to its
-- Improved its Clinical Support Specialist Program by directly
employing the clinical support specialists who were previously
contracted through Magellan Medical Technology Consultants Inc.
CRH is encouraged by the early results of this Program and
believes that direct management of the clinical support
specialists more effectively aligns them with CRH's existing
infrastructure. The objective of the Clinical Support
Specialist Program is to effectively support the Company's
long-term revenue growth and profitability. The Company's four
field reps continue to work to increase the adoption of the CRH
O'Regan System within practices already trained by the Company,
and to introduce the technology to practices not yet trained.
-- As of March 31, 2013 the Company had trained 1,397 physicians
to use the O'Regan System, representing 485 clinical practices.
During the same period a year earlier, the Company had trained
1,120 physicians, representing 370 clinical practices.
-- As of March 31, 2013, the Company had $4,965,839 in cash and
cash equivalents compared to $4,511,770 as of December 31,
First Quarter, 2013 Conference Call Notification
CRH Medical intends to host a telephone conference call to discuss its first
quarter results on April 23, 2013 at 5:00 pm Eastern Time. The telephone
numbers for the conference call are (888) 231-8191 or (647) 427-7450.
At the call's completion, an audio replay will be available by calling (855)
859-2056 and using passcode 24136939. The phone replay will be available
through May 7, 2013.
Revenue for the three months ended March 31, 2013 was $1,835,782 compared to
$1,691,507 for the three months ended March 31, 2012. The increase in revenue
is the result of the Company's sales of its CRH O'Regan System direct to
Product sales expenses for the three months ended March 31, 2013 were
$1,158,578 compared to $873,706 for the three months ended March 31, 2012. The
increase in product sales expenses is primarily the result of Clinical Support
Specialist Program announced in September 2012. Product sales expenses also
increased as a result of the 2010 United States federal health care law's tax
on medical devices that went into effect January 1, 2013. The law requires
medical device manufactures to pay an excise tax equal to 2.3% of product
Corporate and other expenses for the three months ended March 31, 2013 were
$403,681 compared to $447,316 for the three months ended March 31, 2012.
For the three months ended March 31, 2013, the Company recorded net income of
$273,524 ($0.006 basic and diluted income per share) compared to a net income
of $370,485 ($0.008 basic and diluted income per share) for the three months
ended March 31, 2012.
The Company's March 31, 2013 financial report and corresponding MD&A will be
available on www.sedar.com and the Company website at www.crhmedcorp.com.
About CRH Medical Corporation:
CRH Medical Corporation is North American company focussed on providing
physicians with innovative products for the treatment of gastrointestinal
diseases. The Company's lead product, the CRH O'Regan System, is a single use,
disposable, hemorrhoid treatment that is safe and highly effective in treating
hemorrhoid grades I - IV.The O'Regan System is rapidly emerging as the
standard of care with gastroenterologists who treat hemorrhoids. In addition
to the product, CRH Medical delivers clinical, marketing and operational
support directly to its partner physicians. CRH utilizes its web-based
platform to connect doctors with patients as well as educating its ever
increasing install base of physicians.
Forward looking statements:
The information in this news release contains so-called "forward-looking"
statements. These include statements regarding CRH Medical's expectations and
plans relating to its business, statements about CRH Medical's expectations,
beliefs, intentions or strategies for the future, which may be indicated by
words or phrases such as "anticipate", "expect", "intend", "plan", "will", "we
believe", "CRH Medical believes", "management believes", and similar language.
All forward-looking statements are based on CRH Medical's current expectations
and are subject to risks and uncertainties and to assumptions made.
Assumptions include: (i) that the growth of CRH's product sales will continue
in a consistent manner; (ii) CRH's costs will not escalate significantly; and
(iii) CRH does not incur any extraordinary costs.
Important risk factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements include:
(i) we may not continue to attract Gastroenterologists and other licensed
providers to purchase and use the CRH O'Regan System; (ii) the policies of
health insurance carriers in the United States may affect the amount of
revenue the Company receives; (iii) changes in United States federal or state
laws, rules, and regulations; (iv) our senior management has been key to our
growth, and we may be adversely affected if we lose any member of our senior
management; (v) Our Clinical Sales Representatives may not be able to increase
adoption of the CRH O'Regan System; (vi) economic dependence on suppliers and
our contract manufacturer; (vii) changes in the industry and the economy may
affect the Company's business; (viii) evolving regulation of corporate
governance and public disclosure may result in additional corporate expenses;
(ix) we may be subject to competition and technological risk which may impact
the price and amount of product we can sell; * we may be subject to product
liability which may adversely affect our operations; (xi) we may need to raise
additional capital to fund future operations; (xii) our business may be
impacted by health care reform in the United States; (xiii) we may not have
the expertise required to expand internationally. As a single product company,
any adverse event directly or indirectly related to the CRH O'Regan System
will have a material impact on the Company's financial performance. CRH
Medical bases its forward-looking statements on information currently
available to it, and assumes no obligation to update them, except as required
Edward Wright, Chief Executive Officer CRH Medical Corporation 604.633.1440
Adam Peeler, Media and Investor Relations TMX Equicom 416.815.0700 x 225
SOURCE: CRH Medical Corporation
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-0- Apr/23/2013 20:00 GMT
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