Welcome!

News Feed Item

Prism Medical Reports Fourth Quarter and Fiscal 2013 Results

TORONTO, ONTARIO -- (Marketwired) -- 03/25/14 -- Prism Medical Ltd. ("Prism Medical" or "the Company") (TSX VENTURE:PM), a leading provider of durable medical equipment and related services to the mobility challenged, today reported financial results for the fourth quarter (Q4) and fiscal year ended November 30, 2013.

Financial Summary

                                    Three months ended           Year ended 
(in thousands of Canadian dollars)         November 30          November 30 
----------------------------------------------------------------------------
                                        2013      2012       2013      2012 
                                           $         $          $         $ 
----------------------------------------------------------------------------
Revenues                              20,423    18,270     75,823    76,027 
Gross margin                           8,958     6,435     30,803    29,193 
  (as % of revenues)                    43.9%     35.2%      40.6%     38.4%
                                                                            
Net income (loss)                      1,781      (142)     4,471     2,275 
  (as % of revenues)                     8.7%     (0.8%)      5.9%      3.0%
                                                                            
Adjusted EBITDA                        3,318       671     10,534     6,514 
  (as % of revenues)                    16.2%      3.7%      13.9%      8.6%
                                                                            
Earnings (loss) per share                                                   
  Basic                                 0.21     (0.02)      0.53      0.27 
  Diluted                               0.21     (0.02)      0.53      0.27 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Q4 and Fiscal Year 2013 Highlight:

--  We achieved a record EBITDA performance for the year; 
--  Gross margin rate of 43.9% for the quarter is a significant improvement
    over prior quarters; 
--  The MedCare supply agreement is performing in line with expectations; 
--  SG&A costs are in line with expectations and well below prior year
    levels; 
--  Earnings per share for the year increased from $0.27 to $0.53; 
--  Cash provided by operating activities decreased from $7,291 in fiscal
    2012 to $5,765 in part as a result of the MedCare transaction; 
--  Four dividends of $0.08 per share have been paid this fiscal year.

Financial Review

Revenues for the three months and twelve months ended November 30, 2013 increased by $2,153 or 11.8% and decreased $204 or 0.3% respectively. Details below:

United Kingdom (UK)

Revenues for the three months ended November 30, 2013 increased $371 or 3.4% over the same period last year. Revenues for the year ended November 30, 2013 decreased $1,167 or 2.8% versus last year. The prior year included the positive impact of sales from the Leonard Cheshire contract which did not continue in 2013 causing the year's shortfall in sales. The small 3.4% increase in comparable fourth quarter sales reflects the modest gains made in a tight market due to reduced government expenditures. New products introduced in the 4th quarter and the successful development of new European dealers should positively affect sales in 2014.

United States (US)

For the three months ended November 30, 2013, US revenues increased $1,267 or 31.4% versus the same period last year. For the year ended November 30, 2013, revenues increased $5,077 or 28.7% versus the same period last year. This growth has been caused by MedCare sales, increased independent homecare dealers and additional contracts with substantial acute care facilities.

In December 2012, the beginning of the 2013 fiscal year, the Company acquired the manufacturing assets of MedCare. As part of the transaction, the Company entered into a 10-year agreement to exclusively supply all the products MedCare sells in the moving and handling industry and purchased 49% of the Company. MedCare's operations are based in Minneapolis, Minnesota, USA. The company's product offering will expand with the acquisition of the MedCare product ranges which the Company intends to market in other world geographies. In addition, the Company will leverage MedCare's strong base of dealer business in the long-term care sector and continue to build the hospital group customer base in new geographies with the inclusion of several world-renowned hospital groups. Subsequent to year end, the Company acquired the remaining 51% of MedCare.

Canada

For the 3 months ended November 2013, sales increased 16% versus the same period in the previous year, reversing the decline experienced in the first 3 quarters of fiscal 2013. This increase was driven by a market wide uptick in the acute care market, in particular in Eastern Canada and Ontario. Government spending is still restrained but some new facilities are being funded and built, largely to meet the ongoing demand fueled by the aging baby boom demographics. Revenues for the year ended November 30, 2013 decreased $4,114 or 24.3% reflecting tighter provincial budgetary spending on a comparative basis, particularly in B.C. where in the first half of fiscal 2012, we received a large end-of-life replacement order.

Gross margin

For the quarter ended November 30, 2013, gross margin increased $2,523 or 39.2% compared to the same period last year. For the year ended November 30, 2013, gross margin increased $1,610 or 5.5% compared to the same periods last year. As a percentage of revenues, gross margin increased from 35.2% to 43.9% in the quarter and from 38.4% to 40.6% for the year ended November 30, 2013. Margin improvements for the year were driven by MedCare sales, greater efficiency in the provision of installation services, more favourable product mix and considerable cost reductions in fixed UK overheads partially offset by higher research and development spending. In the last quarter, the more substantial margin percentage of sales increase was also affected by a much higher utilization of North American fixed overheads.

Expenses

Selling, general and administrative expenses for the three months and year ended November 30, 2013 increased by $189 or 2.9% and decreased by $1,554 or 6.1% respectively compared to the same periods last year. The increase in SG&A in the fourth quarter relates to costs associated with various strategic initiatives. On a year to date basis, SG&A costs have decreased as a percentage of sales, reflecting restructuring initiatives taken in 2012.

Interest expense was significantly higher in the three months and year ended November 30, 2013 compared with the same period last year due to the utilization of the acquisition line for our investment in MedCare.

Net Income

Net Income for the three months ended November 30, 2013 increased $1,923 compared to a loss of $142 in the three months ended November 30, 2012. For the year ended November 30, 2013, net income increased $2,196 or 97% compared to net income of $2,275 for the year ended November 30, 2012.

Adjusted EBITDA

For the three months and year ended November 30, 2013, adjusted EBITDA increased $2,647 or 394% to $3,318 and $4,020 or 62% to $10,534 respectively compared to the same periods last year.

Outlook

Prism intends to grow sales, profitability and return on shareholders' equity. The Company believes that performance will be positively affected by continued North American institutional demand for our products, improved manufacturing efficiencies, greater geographic coverage, and revenues and profits from new product introductions. Through additional distribution, both through independent dealers and Company-owned platforms and MedCare, Prism hopes to achieve continued growth in UK and North American profitability even with the ongoing uncertain economic environment.

The demand for our core products and services, in management's estimation, continues to experience growth at different rates in the geographic markets in which we participate. Government funding for our products, particularly in Canada and the UK is a key driver of sales. Although government policies related to health care in the markets in which we operate continues to change, we believe that our ability to deliver cost effective solutions to the health care providers combined with the aging demographics, mean the long term trends continue to be favorable.

In the Company's view, the US market holds the greatest long-term potential to provide above-average revenue growth. Institutional penetration for safe patient moving and handling equipment is well below what is witnessed in mature markets such as the UK and the homecare market is similarly underdeveloped. While budget constraints and the cyclicality of the institutional order pipeline can cause variability in the timing of US revenues, our customers are committed to creating safe patient handling environments in their facilities. Our efforts to build a larger footprint in this market have already translated into strong revenue growth. Additionally Prism is actively growing its dealer footprint in the US and designing affordable products for the private-pay home care market.

About Prism Medical Ltd.

Prism Medical Ltd. is one of the largest providers and manufacturers of durable medical equipment and related services to the mobility challenged in Canada, the US and the UK, with more than 110,000 installations and 200,000 product solutions sold. The Prism Medical brands include Waverley Glen and ErgoSafe, North America's leading supplier of lifting, handling and repositioning aid products and services across Canada and the US. Freeway and Prism Service & Repair are leading suppliers of moving and handling products and services in the UK. For further information visit Prism Medical's website at www.prismmedicalltd.com or www.sedar.com.

(1) Non-IFRS Financial Measures

Prism Medical's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company also uses non-IFRS measures such as Adjusted EBITDA to measure its financial performance. Adjusted EBITDA consists of earnings before interest, income taxes, depreciation, amortization, stock-based compensation expense and equity gains or losses from investments in associates accounted on an equity basis. Adjusted EBITDA is a financial metric used by many investors to compare companies on the basis of operating results, asset value and the ability to incur and service debt. Management believes that Adjusted EBITDA is a useful measure for evaluating the performance of the Company. Adjusted EBITDA is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled financial metrics reported by other companies.

Forward-Looking Information

This document contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this report and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this report. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.

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

Contacts:
Prism Medical Ltd.
George Chiarucci
Chief Financial Officer
416-260-2145 ext. 229
[email protected]
www.prismmedicalltd.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...