October 2016

Dear shareholders and prospective shareholders,

Last week on October 27th, we reported our third quarter financial results. Below is a summary.

• Total revenues for the three months ended September 30, 2016 were $22,108,137 compared to $11,609,875 for the three months ended September 30, 2015. Revenues for the nine months ended September 30, 2016 were $52,532,529 compared to $32,110,949 for the nine months ended September 30, 2015.

• Operating EBITDA attributable to shareholders of the Company for the quarter was $9,122,282, an increase of $3,363,808 from 2015. Operating EBITDA attributable to shareholders of the Company for the nine months ended September 30, 2016 was $22,089,735, an increase of $5,462,782 from the same period in 2015.

• Revenues from anesthesia services for the three months ended September 30, 2016 were $19,446,645 compared to $9,195,363 for the three months ended September 30, 2015. Revenues from anesthesia services for the nine months ended September 30, 2016 were $44,813,732 compared to $25,166,336 for the nine months ended September 30, 2015.

• Revenues from product sales for the three months ended September 30, 2016 were $2,661,492 compared to $2,414,512 for the three months ended September 30, 2015. Revenues from product sales for the nine months ended September 30, 2016 were $7,718,797 compared to $6,944,613 for the nine months ended September 30, 2015. As of September 30, 2016 the Company has trained 2,355 physicians to use the O’Regan System, representing 902 clinical practices. This compares to 2,117 physicians trained, representing 791 clinical practices, as of September 30, 2015.

• As of September 30, 2016, we had $10.5 million in cash and $18.8 million available under our credit facility.

If you missed it, and wish to listen to our third quarter conference call, an audio replay will be available by calling 1-800-585-8367 or (416) 621-4642 and using passcode 5508256. The phone replay will be available until November 10, 2016.

October Marketing

Management spent several days in October marketing to new accounts in the US. Creating awareness in markets that have not yet been exposed to the CRH story is imperative in expanding and diversifying our shareholder base and the in the continued development of our US investor awareness initiatives.

Also in October, RBC Capital Markets initiated Equity Research Coverage on CRH Medical. This marks the second consecutive month that a major Canadian financial institution has launched research coverage, with CIBC Capital Markets initiating in September.

Investor Relations

David Matousek recently resigned from his position as Director of Investor Relations. We thank him for all of his contributions and wish him the best of luck in his future endeavors.

Kettina Cordero will be joining CRH in the role of Director of Investor Relations next week. Kettina comes to us from Pan American Silver where she spent the past 8 years managing their IR program. Beginning Monday, November 7, she can be reached at kcordero@crhmedcorp.com or 1.800.660.2153 x 1030.

Conferences

October had us traveling to two national conferences – the American College of Gastroenterology Annual Scientific Meeting in Las Vegas, NV (ACG) and the American College of Surgeons Clinical Congress in Washington, DC (ACS).

The ACG draws in thousands of GIs from across the U.S and is our main event of the year. This year was particularly successful, generating a significant number of new leads for the O’Regan System and creating a solid level of interest in our anesthesia partnerships.

The ACS is also a national annual meeting that we exhibit at every year, and though our focus remains in the GI space, it is always a worthwhile conference to attend.

 

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

CRH Medical Corporation
T: 800.660.2153 x 1030
W: www.crhmedcorp.com
E: ir@crhmedcorp.com

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