CRH Investors Logo

CRH Medical Reports Q2 2010 Results

  • Partnership Program Revenues increase 92%

VANCOUVER, BC, August 13, 2010– CRH Medical Corporation (CRM:TSX-V)
announced today unaudited results for the three and six months ended June 30,
2010. Total revenue for the three and six months ended June 30, 2010 was
$1,761,165 and $3,712,755 respectively compared to $1,859,225 and $3,598,695
for the same periods in 2009. The Company also reported a net loss of $464,356
and $765,238 for the three and six months ended June 30, 2010 compared to
$363,786 and $1,068,794 for the same periods in 2009.

Highlights include:

Product Sales:

  • Revenue from product sales increased 75% to $864,611 for the three months
    ended June 30, 2010 compared to $492,847 for the same period in 2009.
  • Revenue from product sales increased 92% to $1,580,233 for the six months
    ended June 30, 2010 compared to $825,120 for the same period in 2009.
  • Operating income from the sale of products increased 98% and 150%
    respectively to $394,979 and $674,928 for the three and six months ended
    June 30, 2010 compared to the same periods in 2009.

Center Operations:

  • Revenue from Center operations decreased 34% and 23% respectively to
    $896,554 and $2,132,522 for the three and six months ended June 30, 2010
    compared to the same periods in 2009. The Company had 8 Centers at June
    30, 2010 compared to 10 at June 30, 2009.
  • Operating loss from Center operations increased 129% and decreased 6%
    respectively to $273,613 and $366,071 for the three and six months ended
    June 30, 2010 compared to the same periods in 2009.
  • Revenue for Center Operations for the three and six months ending June 30,
    2010 includes a $116,000 negative adjustment resulting from a correction of
    a calculation error in our practice management accounts receivable report
    provided by a third party. Approximately $50,000 of the $116,000 adjustment
    relates to 2009, the remaining $66,000 relates to the quarter ending March
    31, 2010.

As of June 30, 2010 the Company had $1,616,477 in cash and cash equivalents
and $2,103,701 in working capital.

Edward Wright, Chief Executive Officer of CRH Medical states “Our Partnership
Program continues to gain momentum and will be the major driver towards
profitability going forward. The Gastroenterology community is realizing superior
patient care and significant practice revenues from the CRH O’Regan System.
Through our innovative marketing initiatives CRH provides more than 1,400 patient
leads to physicians listed on our website each month. Providing new patients to our
partners is a unique element of our Company that differentiates CRH from other
medical product companies.” Wright further states “To date we have trained 560 of
the over 8,000 gastroenterologists in the United States. Demand for trainings
continues to grow. During the first six months of 2010, we trained 170 physicians
compared to 104 physicians for the first six months of 2009.”

The Company’s June 30, 2010 financial report will be available on

About CRH Medical Corporation:

CRH Medical Corporation specializes in the treatment of hemorrhoids utilizing its
proven treatment protocol and patented proprietary technology. CRH’s single use,
disposable, hemorrhoid technology is safe and highly effective in treating
hemorrhoid grades I – IV. CRH employs two commercialization strategies: first,
CRH distributes its hemorrhoid banding technology, treatment protocols, operational
and marketing expertise as a complete, turn key package directly to its partner
physicians (“Partnership Program”). In addition, CRH operates Centers for
Colorectal Health facilities in the United States specializing in the treatment of
hemorrhoids, fissures, and colon cancer screening. The Company currently
operates eight Centers geographically dispersed through the U.S.. The Company’s
goal is to establish the CRH O’Regan System as the standard for hemorrhoid

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 and 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. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements include: (i) we may
need to raise additional capital to fund future operations; (ii) the policies of health insurance carriers
in the United States may affect the amount of revenue the Company receives; (iii) the Company may
not successfully market its products; (iv) changes in United States federal or state laws, rules, and
regulations, including those governing the corporate practice of medicine, and fee splitting; (v)
changes in the United States Anti-Kickback Statute and Stark Law and/or similar state laws, rules,
and regulations; (vi) if we are unable to manage growth, we may be unable to achieve our expansion
strategy: (vii) our senior management has been key to our growth, and we may be adversely affected
if we lose any member of our senior management; (viii) economic dependence on suppliers and our
contract manufacturer; (ix) changes in the industry and the economy may affect the Company’s
business; (x) evolving regulation of corporate governance and public disclosure may result in
additional corporate expenses; (xi) we may not be able to attract Gastroenterologists and other
licensed providers to purchase and use the CRH O’Regan System; (xii) we may be subject to
competition and technological risk which may impact the price and amount of product we can sell;
(xiii) we may not be able to retain sufficient qualified physicians to operate our Centers; (xiv) we may
be subject to product liability and medical malpractice claims, which may adversely affect our
operations; (xv) our business may be impacted by health care reform in the United States; and (xvi)
we may not have the expertise required to expand internationally. CRH Medical bases its forwardlooking
statements on information currently available to it, and assumes no obligation to update

For further information call Dean Linden, Corporate Communications, CRH Medical
Corporation at 604.633.1440 or Additional information
may also be found by visiting the Company’s website at or
the SEDAR website at

The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.