Dear shareholders and prospective shareholders,
On April 23, 2014, we issued our first quarter, 2014 financial and operational results.
Revenue for the three months ended March 31, 2014 was $1.99 million, compared to $1.84 million for the same period in 2013, representing 8.5 percent growth. The increase in product sales revenue is the result of the Company’s continued successful execution in identifying, training and supporting gastroenterologists in their diagnosis and treatment of hemorrhoids.
For the three months ended March 31, 2014, CRH recorded net income of $368,389 ($0.008 basic and $0.007 diluted income per share) compared to a net income of $273,524 ($0.006 basic and diluted income per share) for the same period in 2013. Net income for the three months ended March 31, 2014 includes income tax expense of $193,935 compared to zero for the three months ended March 31, 2013.
At the end of the first quarter of 2014, we had working capital of $8.1 million compared to working capital of $7.4 million at the end of the fourth quarter of 2013.
As of March 31, 2014, more than 490,000 procedures have been performed with the O’Regan System. At the same time last year, approximately 375,000 procedures had been performed.
We believe our financial and operational growth is attributable to three key factors:
1. The combination of treatment effectiveness with the easy to use, disposable nature of the system
2. Our comprehensive support program for trained physicians and their staff
3. Our direct-to-physician sales approach
We also think that the continued profitable growth of our business is an indication of the market opportunity, with approximately one in two Americans being affected by hemorrhoids by age 50. In this respect, the CRH O’Regan System offers a meaningful financial opportunity for gastroenterologists who are often diagnosing hemorrhoids on a regular basis.
To evaluate our commercial progress, we closely track the number of physicians trained on the O’Regan System. Historically, a high percentage of physicians continue to purchase and use the CRH O’Regan System. To date, we have trained more than 1,700 physicians on the system, representing more than 600 clinical practices.
New Training Resource
In order to increase our training capacity and flexibility, we recently welcomed Dr. Jarrod Kaufman to CRH as part of our medical team. Dr. Kaufman, a New Jersey based general surgeon in private practice, will join our Medical Director and Associate Medical Director, in training physicians across the U.S. on the CRH O’Regan System on an as-needed basis. The addition of Dr. Kaufman, along with our recently added National Clinical Support Specialist will assure that CRH can continue to provide outstanding training and clinical support to meet our continuing increase in demand for these services.
We look forward to sharing the May edition of the CRH Investor Bulletin with you, and as always, we appreciate your interest and support.
Media and Investor Relations
416.815.0700 x 225