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TORONTO, ONTARIO--(Marketwired - Mar 28, 2016) - 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) ended November 30, 2015 and for fiscal 2015.
Highlights for the three months ending November 30, 2015:
Highlights for the twelve months ending November 30, 2015:
Chief Executive's message:
Ross Scavuzzo, Chief Executive Officer stated, "We are pleased with the sales growth in our recent dealer acquisition in B.C., Angel Accessibility Inc. and the continuing increase in sales in our US business as the US market gradually accepts safe patient handling as best practice. We also look forward to closing the previously announced acquisition of the Lifts and Elevating business from Shoppers Home Health Care (in Canada) on May 31, 2016.
I am pleased to report that your Board of Directors has declared a dividend of $0.125 per common share to shareholders of record on April 8, 2016 to be paid on April 15, 2016."
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, driven by the additions of quality people and new customers and products. 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 services oriented personnel. The 2015 focus on building a strong foundation for growth will continue in 2016 and sustained by greater positive growth in profits.
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 in Canada is a key driver of sales. Although government policies related to healthcare in the markets we operate continue to change, we believe that the long term trend for our product solutions will be favourable.
Management believes that the US market holds the greatest long-term potential to provide above-average revenue growth both in the institutional and home care markets. While budget constraints and the cyclicality of the institutional order pipeline can cause variability in US revenue, our efforts to build a larger footprint in this market have already translated into strong revenue growth.
While the Company has no formal policy on dividend payments and the Board of Directors determines the suitability of such payments on a quarterly basis, the Company views dividend payments as an important part of its investor strategy and expects to continue its historical pattern of four dividend payments per fiscal year.
|Financial Results for Fourth Quarter (Q4) ended November 30, 2015|
Three months ended
|(Expressed in thousands of Canadian dollars except for earnings per share and where otherwise noted)||
|(as % of revenues)||37.5||%||45.0||%||38.7||%||41.6||%|
|Net income (loss) from continuing operations||(29||)||(87||)||334||(1,000||)|
|(as % of revenues)||-0.2||%||-0.7||%||0.6||%||-2.2||%|
|Adjusted EBITDA from continuing operations||1,307||1,061||4,942||1,443|
|(as % of revenues)||8.0||%||8.3||%||8.8||%||3.3||%|
|Basic earnings per share|
|From continuing operations (loss)||(0.01||)||(0.02||)||0.07||(0.13||)|
|Diluted earnings per share|
|From continuing operations (loss)||(0.01||)||(0.02||)||0.07||(0.13||)|
|1 Restated to reflect continuing operations. The Net loss from continuing operations for the year ended November 30, 2014 excludes a $24,065 gain relating to the sale of the UK business ($27,217 pre-tax) as well as an operating loss of $341 relating to the discontinued operations of the UK business. Net income of $22,724 as reported in the Company's consolidated statements of income includes the $24,065 gain and $341 operating loss from discontinued operations. The pre-tax gain of $27,217 has been excluded from Adjusted EBITDA from continuing operations and the $24,065 gain net of tax has been excluded from basic and diluted earnings per share from continuing operations (loss).|
|As of November 30|
|Cash and Cash Equivalents||600||6,497|
|Long Term Debt||12,325||10,016|
|Common Shares (In thousands)||4,939||4,742|
On March 28, 2016, the Board of Directors approved the payment of $0.125 per common share to shareholders of record on April 8, 2016 to be paid on April 15, 2016. This is an eligible dividend within the Income Tax Act.
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.
Non-IFRS Financial Measures
Prism Medical uses certain financial measures to assess its financial performance which do not have any standardized meaning prescribed by IFRS, and are not necessarily comparable to similar measures presented by other companies using IFRS. Our Non-IFRS measures include Adjusted EBITDA from operations, which consists of earnings before interest, income taxes, depreciation, amortization and stock-based compensation expense. Our Non-IFRS measures also include Pro-forma Adjusted EBITDA which excludes the impact of non-recurring costs such as restructuring costs, strategic initiatives, transaction costs, integration costs and post divestiture or acquisition adjustments, and gain on sale of the UK business. Adjusted EBITDA from operations 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 from operations and Pro-forma Adjusted EBITDA are useful measures in evaluating the performance of the Company to generate operating cash flow to fund future working capital needs and service debt. Adjusted EBITDA from operations and Pro-forma Adjusted EBITDA do 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.
Complete financial statements and management's discussion and analysis for 2015 will be available shortly at www.PrismMedicalLtd.com and SEDAR website.
Prism Medical Ltd.
Chief Executive Officer