Revenue Increases 16% Compared to Same Period Last Year
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 six months ended June 30, 2013 . All financial results are expressed in U.S dollars.
Second Quarter Financial Highlights
| (in 000's of US$) | Q2 2013 | Q2 2012 | Change | 6-Month 2013 | 6-Month 2012 | Change |
| Revenue | $1,950 | $1,688 | +16% | $3,785 | $3,379 | +12% |
| Net income | $502 | $327 | +53% | $775 | $698 | +11% |
| Total operating expenses | $1,448 | $1,360 | +6% | $3,010 | $2,681 | +12% |
"During the second quarter of 2013, we continued to steadily grow our revenue," said Edward Wright , Chief Executive Officer of CRH Medical. "Looking forward, we expect continued revenue growth from newly trained physicians and increased adoption from those physicians already trained."
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
- By the end of June, 30, 2013, more than 400,000 procedures had been performed with the O'Regan System. At the same time last year, approximately 300,000 procedures had been performed with the O'Regan System.
- CRH's Clinical Support Specialist Program supported the increased adoption of the CRH O'Regan System within the gastroenterologist community in the United States . For the six months ended June 30, 2013 , 29% of the new practices trained and 22% of the new physicians trained were located in the territories in which the Company's reps are active
- As of June 30, 2013 the Company had trained 1,472 physicians to use the O'Regan System, representing 521 clinical practices. During the same period a year earlier, the Company had trained 1,197 physicians, representing 403 clinical practices.
- As of June 30, 2013 , the Company had $5,197,447 in cash and cash equivalents compared to $4,511,770 as of December 31, 2012 .
Second Quarter, 2013 Conference Call Notification
CRH Medical intends to host a telephone conference call to discuss its first quarter results on July 23, 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 passcode 19730043. The phone replay will be available through August 6, 2013 .
Financial Results
Revenue for the three months ended June 30, 2013 , was $1,949,555 compared to 1,687,706 for the three months ended June 30, 2012 , representing a 16 percent increase. For the six months ended June 30, 2013 , revenue was $3,785,337 compared to $3,379,213 , which is an increase of 12 percent.
For the three months ended June 30, 2013 , the Company recorded net income of $501,846 ( $0.01 basic and diluted income per share) compared to a net income of $327,448 ( $0.007 basic and diluted income per share) for the three months ended June 30, 2012 .
For the six months ended June 30, 2013 , the Company recorded net income of $775,370 ( $0.016 basic and diluted income per share) compared to a net income of $697,933 ( $0.014 basic and diluted income per share) for the six months ended June 30, 2012 .
Product sales expense for the three months ended June 30, 2013 , was $963,930 compared to $854,075 for the three months ended June 30, 2012 . For the six months ended June 30, 2013 , product sales expense was $2,122,508 compared to $1,727,781 .
Corporate and other expenses for the three months ended June 30, 2013 were $483,779 compared to $506,183 for the three months ended June 30, 2012 .
The Company's June 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.
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; * 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.
SOURCE CRH Medical Corporation
For further information: 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
