CRH Medical Reports Q2 2010 Results
- Partnership Program Revenues increase 92%
(all figures are in US dollars)
VANCOUVER, Aug. 13 /PRNewswire-FirstCall/ - 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.
- 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.
- 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 www.sedar.com
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 treatment.
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; * 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 forward-looking statements on information currently available to it, and assumes no obligation to update them.
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.
SOURCE CRH Medical Corporation