CML HealthCare Inc. Reports 2011 Third Quarter Financial Results
(firmenpresse) - MISSISSAUGA, ONTARIO -- (Marketwire) -- 11/07/11 -- CML HealthCare Inc. (the "Company" or "CML") (TSX: CLC) today reported its financial results for the three and nine month periods ended September 30, 2011 (all amounts are in Canadian dollars, unless noted otherwise).
Highlights from Continuing Operations:
"Our Canadian operations delivered year-over-year growth in revenue, EBITDA, EBT, and cash flow from operations," said Tom Weber, Executive Vice President and Chief Financial Officer. "Since mid-October we have announced two significant transactions. On October 13, we announced the signing of a new two-year laboratory services funding agreement with the Ontario Ministry of Health and Long-Term Care ("MOHLTC") which will provide a 2.4% funding increase and stability of cash flow. Today we also announced the sale of our U.S. imaging business for total consideration of US $51.5 million which will be used to reduce our net debt."
Financial Results for the three months ended September 30, 2011 ("Q3 2011")
Given the sale of CML's U.S. imaging operations, third quarter operating results related to this business have been reclassified as discontinued operations.
Revenue from continuing operations increased 3.1% to $93.4 million from $90.5 million for the same period in 2010 ("Q3 2010"). Increased revenue was largely attributable to expected $1.6 million in retroactive imaging technical fee reimbursements recorded in Q3 2011 for the Ministry of Health year ended March 31, 2011 and growth in non-cap revenue from both laboratory and imaging services.
COS of $55.6 million were 0.1% lower than $55.7 million for the same period in 2010. The decrease is primarily due to a decline in supplies cost of $1.9 million reflecting improved inventory management and other supply chain cost savings, partially offset by general inflationary increases impacting salaries and certain services, increases in medical professional fees associated with increased non-cap revenues, and increases in depreciation and amortization associated with the purchase of property and equipment and intangible assets.
G&A expenses of $9.5 million remained at the same level as in the same period in 2010.
EBITDA(2) of $32.7 million was 13.3% higher than $28.9 million in Q3 2010. EBITDA(2) margin of 35.0% increased from 31.9% in Q3 2010.
Net earnings from continuing operations of $18.1 million were lower than $21.6 million in Q3 2010. The decline was largely attributable to a $6.9 million provision for income taxes in Q3 2011 as a result of the Company becoming taxable in 2011 after its conversion from an income fund to a corporation, compared to a $0.2 million recovery of taxes in the same period in 2010.
Earnings before taxes from continuing operations of $25.1 million increased by 17.2% over the same period in 2010.
Net earnings, including net loss from discontinued operations, totaled $12.3 million compared to $20.8 million in Q3 2010. The increase in loss on discontinued operations reflects:
AFFO(4) from continuing operations in Q3 2011 totaled $19.3 million compared to $14.6 million in Q3 2010. The increase in Q3 2011 AFFO(4) reflects a $3.4 million increase in cash flow from operating activities. Dividends declared were $16.9 million in Q3 2011.
For the nine-month period ended September 30, 2011, revenue from continuing operations increased 2.4% compared to the same period in 2010 due primarily to:
YTD COS were higher in 2011 compared to 2010 to reflect:
YTD G&A expenses increased in 2011 compared to 2010 largely the result of:
Net earnings from continuing operations in YTD 2011 of $49.0 million were lower than $67.1 million in YTD 2010. The decrease was primarily attributable to the provision for income taxes in 2011 since the Company became taxable after its conversion from an income fund to a corporation effective January 1, 2011.
The YTD net loss from discontinued operations of $14.5 million compared to net loss of $3.6 million in 2010 reflects i) decreased reimbursement rates and revenues; ii) goodwill impairment of $8.5 million recorded in 2011; iii) $0.7 million in professional fees related to the sale of the U.S. imaging business; and iv) decreased income tax recovery due to the application of valuation allowances to tax loss carry forward, partially offset by i) decreased COS in line with decreased revenue and effective cost containment; ii) decreased depreciation and amortization; and iii) decreased restructuring expenses related to the departure of certain executives of the U.S. operations in 2010.
YTD AFFO(4) from continuing operations increased 5.2% compared to 2010 reflecting increased funds from operations and decreased purchase of property and equipment from continuing operations.
Balance Sheet
As at September 30, 2011, the Company had cash balances of $5.1 million, compared to $9.5 million as at December 31, 2010, and $7.1 million as at June 30, 2011. Long-term debt of the Company, including the current portion, was $310.7 million as at September 30, 2011, compared to $330.2 million as at December 31, 2010 and $315.9 million as at June 30, 2011. As at September 30, 2011, the Company had approximately $64.0 million available under the revolving credit facility and 89,842,404 common shares issued and outstanding.
Notice of Conference Call
Patrice Merrin, Interim CEO and Chairman of the Board will be hosting a conference call on Tuesday, November 8, 2011 at 10:00 am (EST) to discuss the Company's 2011 third quarter financial results. Investors and analysts are invited to join the call by dialing 416-340-9531 / 877-440-9795. Please dial in 15 minutes prior to the call to secure a line. You will be put on hold until the conference call begins.
A live audio webcast of the conference call will be available through . Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. An archived replay of the webcast will be available for 90 days.
A taped replay of the conference call will also be available until Tuesday, November 22, 2011 by calling 905-694-9451 or 800-408-3053, reference number 1573557.
About CML HealthCare Inc.
Based in Mississauga, Ontario, CML HealthCare Inc. is a leading provider of laboratory testing services in Ontario operating 118 laboratory collection centres and the largest provider of medical imaging services in Canada with 105 imaging centres. CML is publicly-traded on the Toronto Stock Exchange under the symbol "CLC" and has approximately 89.8 million common shares outstanding. For more information, please visit .
(2) The Company defines EBITDA as earnings from continuing operations before interest, taxes, depreciation, amortization, restructuring and other expenses-net, loss on disposal of property and equipment, and foreign exchange gains/losses. EBITDA margins are calculated by dividing EBITDA by revenue. EBITDA is not a recognized measure under IFRS. Management believes that, in addition to net earnings, EBITDA is a useful supplemental measure, as it provides investors with an indication of the Company's performance. EBITDA is used by the Company to analyze performance and compare profitability between periods. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with IFRS. The Company's method of calculating EBITDA may differ from other companies and, accordingly, EBITDA may not be comparable to measures used by other companies.
(3) The Company defines EBT as earnings from continuing operations before taxes. EBT is not a recognized measure under IFRS. Management believes that, in addition to net earnings, EBT is a useful supplemental measure, as it provides investors with an indication of the Company's performance. EBT is used by the Company to analyze operating performance. Investo rs should be cautioned, however, that EBT should not be construed as an alternative to net earnings determined in accordance with IFRS. The Company's method of calculating EBT may differ from other companies and, accordingly, EBT may not be comparable to measures used by other companies.
(4) Adjusted funds from continuing operations ("AFFO") is not a recognized measure under IFRS. The Company uses this as a measure of financial performance, as an indicator of its cash flow strength, its ability to meet future operational and capital expenditure requirements and ability to pay dividends on the Company's common shares.
Caution concerning forward-looking statements
This document includes forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward-looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: dependence on government -based revenues in Canada; general economic conditions; pending and proposed legislative or regulatory developments in Canada including the impact of changes in laws, regulations and the enforcement thereof; reliance on funding models in Canada; intensifying competition resulting from established competitors and new entrants in the businesses in which we operate; our ability to complete strategic acquisitions and to integrate our acquisitions successfully; insurance coverage of sufficient scope to satisfy any liability claims; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in total patient referrals; technological change and obsolescence; loss of services of key senior management personnel; privacy laws; ability to pay dividends in the future; structural subordination of common shares; leverage and restrictive covenants; fluctuations in cash timing and amount of capital expenditures; tax-related risks; unpredictability and volatility of the price of common shares; dilution; and future sales of common shares.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the "Risk Factors" section of our Annual Information Form, under "Business Risks" and elsewhere in our Management's Discussion and Analysis of Operating Results and Financial Position ("MD&A") for the year ended December 31, 2010 and elsewhere in our filings with Canadian securities regulators. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf. Such statements speak only as of the date made.
Contacts:
CML HealthCare Inc.
Alice Dunning
Director, Corporate Communications
(905) 565-0043 ext.3472
(905) 565-2844 (FAX)
CML HealthCare Inc.
Tom Weber
Executive Vice President, Chief Financial Officer
(905) 565-0043 ext. 3204
(905) 565-2844 (FAX)
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Datum: 07.11.2011 - 21:47 Uhr
Sprache: Deutsch
News-ID 1054294
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