Navigation Links
CRH Medical reports Q3 2008 results

                 -   Revenues increases 123% versus Q3 2007
         -   Company alters strategy to shorten time to profitability
           -   Debt financing is secured as component of new plan

VANCOUVER, Nov. 26 /PRNewswire-FirstCall/ - CRH Medical Corporation (CRM:TSX-V) announced today unaudited results for the three and nine months ended September 30, 2008, and unveiled a new strategy designed to mitigate the need to obtain financing from the equity markets, the primary source of funding for the Company to date. Highlights of the quarter include (all figures are in US dollars):

    -   Total revenue for the three months ended September 30, 2008 increased
        123% to $1,947,642 compared to $879,698 for the same period in 2007.
    -   Total revenue for the nine months ended September 30, 2008 increased
        138% to $4,958,879 compared to $2,081,746 for the same period in
    -   For the nine months ended September 30, 2008 Center operations
        revenue and Product sales increased 138% and 136% respectively
        compared to the same period in 2007.
    -   Patient visits for the nine months ended September 30, 2008,
        increased 115% to 18,911 compared to 8,780 patient visits for the
        same period in 2007.
    -   The Company recorded a net loss of $993,211 ($0.02 per share) and
        $3,049,922 ($0.07 per share) for the three and nine months ended
        September 30, 2008 compared to a net loss of $777,584 ($0.02 per
        share) and $2,728,408 ($0.06 per share) for the same periods in 2007.

CRH Medical announced a new strategic initiative to suspend the rapid expansion of opening new Centers for Colorectal Health, minimizing current expenses, and continuing to grow quarter over quarter revenues at existing Centers. The Company believes effectively implementing the new strategy will enable us to achieve positive operating cash flows with currently available working capital.

Commenting on the third quarter 2008 results and plans going forward, Edward Wright, Chief Executive Officer, stated, "By the end of the third quarter of 2008, we had successfully opened nine new Centers. Our Center operations model continues to perform well and we believe that we have the infrastructure in place and the market demand to significantly expand the number of CRH Centers well beyond the 17 that we currently operate. However, continuing on our current pace of expansion will require additional capital. It is clear that the market for issuing new equity is weak and because timing of recovery is uncertain, we have initiated a strategy that we believe will enable us to achieve positive cash flows by focusing on increasing the utilization of our existing Centers. Although we will keep a close tab on the markets, by effectively using the capacity at our existing Centers, we expect to eliminate or, in the worst case, at least defer the necessity of additional equity financings. Our new plan is to continue to invest in our existing Centers but to defer opening new Centers until our revenues or the terms of available capital support that action. In the meantime, we have secured a revolving line of credit to manage our working capital requirements as we strive to maximize the revenue potential of our Centers. Simply put, our short term focus will shift toward profitability, as opposed to growing the top line as rapidly as possible."

Mr. Wright further stated, "Our partnership program, where we provide training and support to physicians, continues to grow. Since April 2008 the Company has trained 96 physicians. Although this segment of our business also has the potential for rapid growth, we expect to carefully manage expenses in this area as well, so that additional investments are expected to come from our operating cash flows."

As a part of its new strategy, the Company has secured a $750,000 revolving line of credit collateralized by the Company's accounts receivable. As of September 30, 2008 the Company had $0.942 million in cash and cash equivalents and working capital of $2.304 million.

    Summary of interim results (expressed in United States dollars):

    Consolidated Balance Sheets
                                                  September 30,  December 31,
                                                          2008          2007
    Current assets:
      Cash and cash equivalents                   $    942,375  $  3,531,818
      Accounts receivable                            1,734,692       975,290
      Inventory                                         57,977        30,716
      Prepaid expenses and deposits                    121,662       262,084
                                                     2,856,706     4,799,908
    Property and equipment                             808,020       879,394
    Intellectual property                              677,962       734,293
                                                  $  4,342,688  $  6,413,595
    Current liabilities:
      Accounts payable and accrued liabilities    $    511,097  $    323,791
      Deferred leasehold inducements                    41,426        41,426
                                                       552,523       365,217
    Deferred leasehold inducements                      71,492        98,729
    Shareholders' equity:
      Share capital (note 6)                        15,022,822    14,933,072
      Contributed surplus (note 6)                   3,134,820     2,405,624
      Accumulated other comprehensive loss             (66,772)      (66,772)
      Deficit                                      (14,372,197)  (11,322,275)
                                                     3,718,673     5,949,649
                                                  $  4,342,688  $  6,413,595

    Consolidated Statements of Operations, Comprehensive Loss and Deficit
                           Three months ended         Nine months ended
                         ------------------------    ------------------------
                      September 30, September 30, September 30, September 30,
                              2008          2007          2008          2007

       operations     $  1,789,970  $    825,018  $  4,587,610  $  1,924,635
      Product sales        167,672        54,680       371,365       157,111
                         1,957,642       879,698     4,958,975     2,081,746
      Center operations
       and development   2,118,727     1,155,065     5,554,948     3,396,643
      Medical products     217,412        30,085       432,344       172,924
      Corporate and
       other               508,286       558,960     1,762,021     1,576,242
      Depreciation and
       amortization         88,433        77,927       264,026       215,258
                         2,932,858     1,822,757     8,013,388     5,361,067
    Operating loss        (975,216)     (943,059)   (3,054,363)   (3,279,321)
    Other items:
      Interest income       15,373        47,389        49,610       130,963
      Foreign exchange
       gain (loss)         (34,887)      118,086       (48,799)      419,950
      Other income           1,519             -         3,630             -
                           (17,995)      165,475         4,441       550,913
    Net loss and
     comprehensive loss   (993,211)     (777,584)   (3,049,922)   (2,278,408)
    Deficit, beginning
     of period         (13,378,986)   (9,753,904)  (11,322,275)   (7,803,080)
    Deficit, end of
     period           $(14,372,197) $(10,531,488) $(14,372,197) $(10,531,488)
    Basic and diluted
     loss per share   $      (0.02) $      (0.02) $      (0.07) $      (0.06)
    Weighted average
     outstanding        44,919,251    43,829,351    44,840,640    43,312,907

About CRH Medical Corporation:

CRH Medical Corporation specializes in the treatment of hemorrhoids utilizing its proven treatment protocol and patented proprietary technology. CRH's single use, disposable, hemorrhoid technology is safe and highly effective in treating hemorrhoid grades I - IV. CRH Medical employs two commercialization strategies: First, it operates Centers for Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids and fissures, and colon cancer screening. In addition CRH distributes its hemorrhoid banding technology, treatment protocols, operational and marketing expertise as a complete, "turn key" package directly to its partner physicians. The Company's goal is to establish the CRH hemorrhoid technology as the standard for hemorrhoid treatment.

The information in this news release contains so-called "forward-looking" statements. These include statements regarding CRH Medical 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 current expectations and are subject to risks and uncertainties and to assumptions made.

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

SOURCE CRH Medical Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. MSU engineering team designs innovative medical device
2. ATS Medical to Present at the 2007 Thomas Weisel Partners Healthcare Conference
3. Providence St. Joseph Medical Center, Caregivers Reach Agreement on a Union Contract
4. Owner and Operator of Florida Durable Medical Equipment Company Convicted of Medicare Fraud
5. Father and Daughter From Tanzania Receive Their First Medical Examination in Newport Beach
6. Doctors and medical ethicist discuss whether doctors should participate in capital punishment
7. Preparation for Natural Disasters Critical for People With Diabetes, Chronic Medical Conditions
8. Doctors and Medical Ethicist Discuss Whether Doctors Should Participate in Capital Punishment
9. Symmetry Medical Completes Acquisition Of Specialty Surgical Instruments
10. Milestone Scientific Announces Successful Completion of its Collaboration Agreement With Carticept Medical
11. FDA Seeks to Regulate Complementary and Alternative Medicine; Products Such as Vegetable Juice Could Be Restricted for Medical Use
Post Your Comments:
(Date:11/30/2015)... ... November 30, 2015 , ... It’s inevitable that everyone ... member, close friend, or animal pass away, death lives among us. It is your ... Coming from a family of 11 children, author T Sky understands that she may ...
(Date:11/30/2015)... ... November 30, 2015 , ... ... announce the speakers for “Value-Based Payer-Provider Partnerships: Three Case Studies,” an upcoming ... value-based care arrangements: Essentia Health and UCare, MissionPoint Health Partners, and Intel ...
(Date:11/30/2015)... IL (PRWEB) , ... November 30, 2015 , ... The ... an emerging pharmaceutical company. Because it is so important to this key industry segment, ... Factors in your IND Filing” on December 4th at 11am EST. , Federal law ...
(Date:11/30/2015)... ... November 30, 2015 , ... Insightra Medical, Inc. ... Surgical Mesh technology for soft tissue repair in the US via Insightra’s national ... resorbable surgical mesh intended to support and reinforce soft tissue for 6-9 months ...
(Date:11/30/2015)... (PRWEB) , ... November 30, 2015 , ... ... & Laser Center is one of a select few plastic surgeons in the ... non-surgical fat removal. , SculpSure™ is the world’s first heat-induced laser treatment for ...
Breaking Medicine News(10 mins):
(Date:11/30/2015)... -- Booth #4303 – The Imaging Components business of Varian ... array of products in a new booth (#4303) at the ... America in Chicago this ... components "At the Heart of Imaging." Products will include a ... Claymount brand, and computer-aided diagnostic software from MeVis as well ...
(Date:11/30/2015)... -- Hanger, Inc. (NYSE: HGR ) (the "Company") today ... its previously announced consent solicitation (as amended and restated, ... amount 7⅛% Senior Notes due 2018 (the "Notes") to ... pursuant to the Consent Solicitation, (ii) the proposed increased ... date of the Consent Solicitation.    ...
(Date:11/30/2015)... , Nov. 30, 2015   VolitionRx Limited (NYSE ... diagnostic tests for a broad range of cancer types and ... LD Micro Conference, which will be held December 1 - 3 ... from VolitionRx will be David Kratochvil , Chief Financial ... of Investor Relations. ® blood-based tests for ...
Breaking Medicine Technology: