|By Marketwired .||
|April 22, 2014 04:42 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 04/22/14 -- 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 first quarter (Q1) ended February 28, 2014.
Three months ended February 28 -------------------------------------------------- 2014 2013 $ $ -------------------------------------------------- Revenues 19,927 16,897 Gross margin 8,115 6,791 As a % of revenues 40.7% 40.2% Net income 668 59 As a % of revenues 3.4% 0.3% Adjusted EBITDA 2,064 1,314 As a % of revenues 10.4% 7.8% Earnings per share Basic 0.08 0.01 Diluted 0.08 0.01 -------------------------------------------------- --------------------------------------------------
Expressed in thousands of Canadian dollars except for earnings per share and where otherwise noted.
First Quarter Highlights
-- The acquisition of the remaining 51% interest in MedCare in Minneapolis, USA in February 2014 -- Growth in North American revenues as the company expands its install base in new geographic markets
United Kingdom (UK)
UK revenues for the three months ended February 28, 2014 increased $1,311 or 15% compared to the same period last year. The improvement in the British pound by over 13% over the prior year's quarter positively impacted revenues in the current quarter. Revenues remained stable on a year over year basis despite the continued impact of fiscal restraints in the UK, the healthcare market remains solid.
United States (US)
US revenues for the three months ended February 28, 2014 increased $1,235 or 24% compared to the same period last year due to incremental sales in our hospital group business, homecare and sales to institutional dealers. US revenues were positively impacted by the improvement in the US dollar over the prior year's quarter representing over a 9% appreciation.
Canada revenues for the three months ended February 28, 2014 increased $484 or 16% compared to the same period last year. New provincial program spending in Saskatchewan has led the increase. Continued market share improvements are being achieved in Ontario offset by declines in provincial spending in British Columbia. New distributed product sales also contributed to the increase.
Gross margin for the three months ended February 28, 2014 increased $1,324 or 19.5% compared to the same period last year due to higher revenues across all businesses. Gross margin rates remained constant at 40.7%.
Selling, General and Administrative
Selling, general and administrative expenses for the three months ended February 28, 2014 were $6,940 compared to $6,306 for the same period last year, an increase of $634 or 10.1%. The Company has strengthened its human capital particularly in the US positioning itself for growth in the North American market. UK selling, general and administrative expenses remained constant excluding the impact of the improvement in the British pound.
The first quarter adjusted EBITDA performance was $2,064 compared to $1,314, an increase of $750 or 57% over the prior year.
Net Income for the quarter increased by $609 or to $668 compared to $59 for the comparable period last year and earnings per share for the same periods increased from $0.01 per share to $0.08 per share. The North American market has demonstrated strong growth for the quarter compared to the prior year.
As at February 28, 2014, the Company had cash of $1,149 and bank indebtedness of $9,759 compared to cash of $2,069 and bank indebtedness of $8,789 respectively, as at November 30, 2013.
EVENTS AFTER THE REPORTING PERIOD
On April 11, 2014, the Company announced the share sale of its UK subsidiary for cash consideration of GBP 30 million or CAD $54.9 million. The sale occurred pursuant to a Sale and Purchase Agreement ("Purchase Agreement") entered into and completed on April 11,2014 with a new company backed by LDC (Managers) Limited, a UK mid-market private equity firm that is a subsidiary of Lloyds Banking Group. Pursuant to the Purchase Agreement, the Purchaser acquired all of the shares of the Company's UK holding company, Prism UK Medical Limited ("Prism UK"). The CAD $54.9 million gross proceeds is expected to result in CAD $49.5 million in net cash proceeds after deducting transaction expenses, related taxes and head office restructuring costs. The Purchase Agreement contains customary representations and warranty obligations with a further GBP 314,000 (CAD $575,000) to be placed in escrow for two years as security for the Company's indemnity and warranty obligations. The Company is also entitled to certain additional "earn out" payments to a maximum of GBP 500,000 and additional consideration based on future sales by Prism UK in North America, Central and South America and Japan for the 3 years following the close of the transaction. The Company has also agreed not to compete with Prism UK in the UK, Europe and the Middle East for a period of 3 years from closing of the transaction.
In conjunction with the transaction, the Company has renegotiated its senior credit facilities. The key terms such as covenants, interest rates and margin ratios have remained unchanged. However, the overall credit limits decreased due to the lower asset base going forward. The Company's operating line has decreased from $17.5 million to $10 million and its acquisition line has decreased from $27.5 million to $10 million.
The Company will use its reasonable commercial efforts to complete a share buy back through a substantial issuer bid ("SIB") within the next four months to return to shareholders CAD $35 million to CAD $40 million of the net cash proceeds of the sale. The completion of the SIB will be subject to customary conditions and the satisfaction of all necessary legal and regulatory requirements. The Company intends to retain the remainder of the proceeds to reduce debt levels to be well within approved bank credit limits and to fund growth opportunities.
On April 22, 2014, the Board of Directors approved a dividend payment of $0.08 per common share to shareholders of record on May 14, 2014 payable on May 22, 2014.
The Company intends to grow sales and profitability and provide a reasonable return on shareholders' equity with a focus on the North American market. The Company believes that performance will be positively affected by a continued North American institutional and homecare demand for our products, improved manufacturing efficiencies, greater geographic coverage, and revenues and profits from new product introductions. During the past year the Company's North American operations have materially improved. Management believes that there are significant growth opportunities within the expanding North American health care industry both through organic growth and acquisitions that offer the potential to significantly increase shareholder value, while remaining consistent with Prism Medical's key growth strategies of vertical integration, product diversification and the application of relevant knowledge by its service oriented personnel.
About Prism Medical Ltd.
Prism Medical is a vertically integrated manufacturer and leading provider of equipment and services used to move and handle mobility challenged individuals in a safe and dignified manner. Prism Medical's products are marketed under the brand names of Prism Medical, ErgoSafe, Waverly Glen and Nightingale in the homecare, acute care and long-term care markets throughout North America. The Company offers solutions that encourage improved care, quality of life and mobility, while seeking to lower the overall cost of the caregiving function in a number of ways, including reducing the incidence of handling-related injuries among caregivers. In addition, the Company through its network of Nightingale dealers provides an integrated suite of products and services that make home care a viable option for many people. 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. 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.
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.
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 04:30 PM EDT Reads: 387
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Oct. 27, 2016 04:30 PM EDT Reads: 1,333
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 27, 2016 04:15 PM EDT Reads: 3,264
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
Oct. 27, 2016 04:15 PM EDT Reads: 1,544
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
Oct. 27, 2016 04:00 PM EDT Reads: 594
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
Oct. 27, 2016 03:15 PM EDT Reads: 539
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Oct. 27, 2016 02:30 PM EDT Reads: 590
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Oct. 27, 2016 02:17 PM EDT Reads: 218
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
Oct. 27, 2016 01:48 PM EDT Reads: 268
SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
Oct. 27, 2016 01:45 PM EDT Reads: 990
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Oct. 27, 2016 01:45 PM EDT Reads: 1,147
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Oct. 27, 2016 01:45 PM EDT Reads: 3,995
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 27, 2016 01:45 PM EDT Reads: 1,596
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Oct. 27, 2016 01:30 PM EDT Reads: 2,271
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 27, 2016 01:15 PM EDT Reads: 5,082