Investor Contact: Dean Linden 604.633.1440
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: | ||
|
$ 1,951,571 | $ 3,531,818 |
|
1,452,086 | 975,290 |
|
53,669 | 30,716 |
|
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: | ||
|
$ 624,986 | $ 323,791 |
|
41,426 | 41,426 |
| 666,412 | 365,217 | |
| Deferred leasehold inducements | 80,571 | 98,729 |
| Shareholders’ equity: | ||
|
14,999,482 | 14,933,072 |
|
2,919,956 | 2,405,624 |
|
(66,772) | (66,772) |
|
(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: | ||||
|
$ 1,504,072 | $ 646,700 | $ 2,797,640 | $ 1,099,617 |
|
149,819 | 49,294 | 203,693 | 102,431 |
| 1,653,891 | 695,994 | 3,001,333 | 1,202,048 | |
| Expenses: | ||||
|
1,890,804 | 1,073,035 | 3,436,221 | 2,241,578 |
|
143,336 | 84,473 | 214,932 | 142,119 |
|
640,103 | 569,702 | 1,253,735 | 1,017,282 |
|
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: | ||||
|
13,439 | 41,548 | 34,237 | 83,574 |
|
(4,226) | 288,548 | (13,912) | 301,864 |
|
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.