August 28, 2008

CRH Medical Reports Q2 2008 Results

Investor Contact: Dean Linden 604.633.1440

  • Revenues increase 138% versus Q2 2007
  • Nine new Centers opened to date in 2008

VANCOUVER, BC, August 28, 2008 – CRH Medical Corporation (CRM:TSX-V) announced today unaudited results for the three and six months ended June 30, 2008 (all figures are in US dollars). Revenue for the three months ended June 30, 2008 increased 138% to $1,653,891 compared to $695,994 for the same period in 2007. Revenue for the six months ended June 30, 2008 increased 150% to $3,001,333 compared to $1,202,048 for the same period in 2007. The Company recorded a net loss of $1,097,973 ($0.02 per share) and $2,056,711 ($0.05 per share) for the three and six months ended June 30, 2008 compared to a net loss of $773,785 ($0.02 per share) and $1,950,824 ($0.05 per share) for the same periods in 2007. Additionally, the Company announced that as of June 30, 2008 it had $1.976 million in cash and cash equivalents and working capital of $2.986 million.

The Company also announced that for the three months ended June 30, 2008, it had 6,496 patient visits at its Centers for Colorectal Health compared to 2,859 patient visits for the same period in 2007.

Commenting on the second quarter, 2008 results, Edward Wright, Chief Executive Officer stated, “The addition of nine new centers opened to date in 2008 continues to demonstrate our ability to expand the Centers for Colorectal Health network. Additionally our direct to physician initiative, whereby we provide training and support for physicians purchasing our technology, is garnering strong momentum. These two strategies enable greater accessibility to our technology and treatment protocols which we expect will provide significant revenue growth.”

Summary of interim results (expressed in United States dollars):

Consolidated Balance Sheet
June 30,
2008
December 31,
2007
Current assets:

Cash and cash equivalents

$   1,951,571 $   3,531,818

Accounts receivable

1,452,086 975,290

Inventory

53,669 30,716

Prepaid expenses and deposits

170,888 262,084
3,652,214 4,799,908
Property and equipment 871,710 879,394
Intellectual property 696,739 734,293
$  5,220,663 $   6,413,595
Current liabilities:

Accounts payable and accrued liabilities

$  624,986 $   323,791

Deferred leasehold inducements

41,426 41,426
666,412 365,217
Deferred leasehold inducements 80,571 98,729
Shareholders’ equity:

Share capital

14,999,482 14,933,072

Contributed surplus

2,919,956 2,405,624

Accumulated other comprehensive loss

(66,772) (66,772)

Deficit

(13,378,986) (11,322,275)
4,473,680 5,949,649
$   5,220,663 $   6,413,595

 

Consolidated Statements of Operations, Comprehensive Loss and Deficit
        Three months ended        
        Six months ended        
June 30,
2008
June 30,
2007
June 30,
2008
June 30,
2007
Revenue:

Center operations

$       1,504,072 $       646,700 $        2,797,640 $       1,099,617

Product sales

149,819 49,294 203,693 102,431
1,653,891 695,994 3,001,333 1,202,048
Expenses:

Center operations and development

1,890,804 1,073,035 3,436,221 2,241,578

Medical products

143,336 84,473 214,932 142,119

Corporate and other

640,103 569,702 1,253,735 1,017,282

Depreciation and amortization

88,325 72,665 175,592 137,331
2,762,568 1,799,875 5,080,480 3,538,310
Operating loss (1,108,677) (1,103,881) (2,079,147) (2,336,262)
Other items:

Interest income

13,439 41,548 34,237 83,574

Foreign exchange gain (loss)

(4,226) 288,548 (13,912) 301,864

Other income

1,491 2,111
10,704 330,096 22,436 385,438
Net loss and comprehensive loss (1,097,973) (773,785) (2,056,711) (1,950,824)
Basic and diluted loss per share $          (0.02) $          (0.02) $          (0.05) $          (0.05)
Weighted average shares outstanding 44,878,418 43,177,351 44,801,334 43,054,684

About CRH Medical Corporation:
CRH Medical Corporation is utilizing the first single use, patented, disposable, hemorrhoid banding system through its Center for Colorectal Health facilities. According to the National Institute of Health approximately 50% of the U.S. population will develop hemorrhoids by age 50. CRH Medical is opening its Center for Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids, anal fissures, and colon cancer screening and plans to significantly increase the number of Centers for Colorectal Health across the U.S. to address this underserved market.  The Company’s goal is to become the preeminent resource on colorectal health for consumers and medical professionals in North America.

The information in this news release contains so-called “forward-looking” statements.  These include statements regarding CRH Medical 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 current expectations and are subject to risks and uncertainties and to assumptions made.

For further information call Dean Linden, Corporate Communications, CRH Medical Corporation at 604.633.1440 or ir@crhmedcorp.com. Additional information may also be found by visiting the Company’s website at www.crhmedcorp.com or the SEDAR website at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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