Year-To-Date Revenue Increases 10% Compared to Same Period Last Year
VANCOUVER, B.C. – October 28, 2013 – 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 and nine months ended September 30, 2013. All financial results are expressed in U.S dollars.
Third Quarter Financial Highlights
|
(in 000’s of US$) |
Q3 2013 |
Q3 2012 |
Change |
9-Month 2013 |
9-Month 2012 |
Change |
|
Revenue |
$1,851 |
$1,726 |
+7% |
$5,636 |
$5,106 |
+10% |
|
Net income |
$453 |
$337 |
+34% |
$1,228 |
$1,035 |
+18% |
|
Total operating expenses |
$1,397 |
$1,388 |
– |
$4,407 |
$4,070 |
+7% |
“We continue to introduce the CRH O’Regan System to gastroenterologists across the United States and work closely with existing practices by providing ongoing support to increase usage of the O’Regan System,” said Edward Wright, Chief Executive Officer of CRH Medical. “Going forward, our focus will be to leverage the relationships we have with trained and prospective physicians by offering additional products and services.”
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 partner physicians.
Operational Highlights
Third Quarter, 2013 Conference Call Notification
CRH Medical intends to host a telephone conference call to discuss its third quarter results on October 29, 2013 at 10:00 am 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 conference ID 91550522. The phone replay will be available through November 12, 2013.
Financial Results
Revenue for the three months ended September 30, 2013 was $1,850,761 compared to $1,726,392 for the three months ended September 30, 2012. Revenue for the nine months ended September 30, 2013 was $5,636,098 compared to $5,105,605 for the nine months ended September 30, 2012. The increase in revenue is the result of the Company’s sales of its CRH O’Regan System direct to physicians.
For the three months ended September 30, 2013, the Company recorded net income of $453,569 ($0.01 basic and diluted income per share) compared to net income of $337,534 ($0.01 basic and diluted income per share) for the three months ended September 30, 2012. For the nine months ended September 30, 2013, the Company recorded net income of $1,228,939 ($0.03 basic and diluted income per share) compared to net income of $1,035,467 ($0.02 basic and diluted income per share) for the nine months ended September 30, 2012.
Product sales expenses for the three months ended September 30, 2013 were $964,780 compared to $1,080,797 for the three months ended September 30, 2012. Product sales expenses for the nine months ended September 30, 2013 were $3,140,027 compared to $2,736,578 for the nine months ended September 30, 2012. The increase in product sales expenses is primarily the result of Clinical Support Specialist Program announced in September 2012.
Corporate and other expenses for the three months ended September 30, 2013 were $432,412 compared to $380,061 for the three months ended September 30, 2012. Corporate and other expenses for the nine months ended September 30, 2013 were $1,267,132 compared to $1,333,560 for the nine months ended September 30, 2012.
The Company’s September 30, 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.
For more information, please contact:
Edward Wright, Chief Executive Officer
CRH Medical Corporation
604.633.1440 x1008
ewright@crhmedcorp.com
or
Adam Peeler, Media and Investor Relations
TMX Equicom
416.815.0700 x 225
apeeler@tmxequicom.com
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; (x) 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 by law.