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
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
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. What do you do?
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
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...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...