October 2015

Dear shareholders and prospective shareholders,

Last week on October 29th we reported our third quarter financial results, below is a summary of our results. During the quarter we closed two meaningful transactions and obtained an NYSE listing. You can find the full quarterly report on the Financial Information section of the CRH website.

• Total revenues for the three months ended September 30, 2015 were $11,609,875 compared to $2,200,342 for the three months ended September 30, 2014. Revenues for the nine months ended September 30, 2015 were $32,110,949 compared to $6,237,782 for the nine months ended September 30, 2014.

• Total operating EBITDA attributable to shareholders for the quarter was $5,758,474, an increase of $5,037,105 over the third quarter of 2014. Operating EBITDA for the nine months ended September 30, 2015 was $16,626,953, an increase of $14,600,806 from the nine months ended September 30, 2014.

• Revenues from anesthesia services were $9,195,363 in the quarter. Revenues year to date were $25,166,336. During the quarter, the anesthesia services segment serviced 18,787 patient cases, and serviced 46,523 patient cases in the year to date.

• Revenues from product sales for the quarter were $2,414,512 compared to $2,200,342 for the third quarter of 2014. Revenues from product sales for the nine months ended September 30, 2015 were $6,944,613, an increase of 11% over the prior year comparable period.

• As of September 30, 2015 the Company had trained 2,117 physicians to use the CRH O’Regan System, representing 791 clinical practices, which compares to 1,845 physicians trained, representing 682 clinical practices, as of September 30, 2014.

As of September 30, 2015, we had $12.5 million in cash compared to $19.9 million as of June 30, 2015. The decrease in cash was a result of cash on hand being used to finance acquisitions that closed within the third quarter. After acquisition cost, we added $4.6m in cash during the 3rd quarter.

If you missed it, and wish to listen to our second quarter conference call, an audio replay will be available by calling (800) 585-8367 or (416) 621-4642 and using passcode 67557794. The phone replay will be available until November 12, 2015.

October Marketing

As part of our investor relations strategy, we continue to educate both potential and current investors on CRH, and our growth strategies going forward. We introduced the CRH Medical story to a number of retail and institutional accounts during the month, as well as providing updates on Q3 operational and financial performance.

The remainder of 2015 will focus on expanding our awareness within the US investment community, as well as remaining active with Canadian institutional and retail investors.


CRH attended two conferences in October to help generate new interest with both the O’Regan System, as well as with CRH Anesthesia.

The first was the American Academy of Family Physicians FMX held in Denver, CO. It was our first time attending this national meeting which offered CRH an opportunity to gauge the interest level of family practitioners in performing in-office hemorrhoid treatment. We garnered a solid number of leads who indicated that they would very much like to be able to offer definitive treatment to their patients and we are now in the process of arranging several in-person training session. Though gastroenterologists will remain our primary focus, attending meetings like this helps us better understand the potential with other physician communities.

Later in the month, we attended the American College of Gastroenterology’s Annual Scientific Meeting in Honolulu, HI. Though attendance was slightly lower than in previous years, the presence we had at our booth in the main exhibit hall, as well as at the dedicated hemorrhoid therapies hands-on sessions put on by the College, was substantial and allowed us to generate a significant number of new leads – both with hemorrhoid treatment, as well as with anesthesia. We were also able to spend time solidifying relationships with our existing customers and addressing any clinical questions that had come up.

As always, if you have any questions, or would simply like an update on what we are doing, please do not hesitate to contact me either by phone or email. Thank you for your continued support and we look forward to updating you again in a month’s time.

David Matousek
Director, Investor Relations
CRH Medical Corporation
T: 800.660.2153 x 1030
W: www.crhmedcorp.com
E: dmatousek@crhmedcorp.com

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