Prism Medical Ltd.
TSX VENTURE : PM

Prism Medical Ltd.

March 24, 2015 19:04 ET

Prism Medical Reports Fourth Quarter Results

TORONTO, ONTARIO--(Marketwired - March 24, 2015) - 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, 2014.

FINANCIAL HIGHLIGHTS

Three months ended
November 30
Year ended
November 30
2014
$
2013*
$
2014
$
2013*
$
Revenues 12,735 11,021 44,197 39,041
Gross margin 5,894 4,242 18,970 16.247
(as % of revenues) 46.3 % 38.5 % 42.9 % 41.6 %
Gain on sale of UK business - - 27,217 -
Net income (loss) from operations (87 ) 298 23,065 (476 )
Net income (loss) from discontinued operations - 1,435 (341 ) 4,862
Net income (87 ) 1,733 22,724 4,386
Adjusted EBITDA
Continuing operations 1,061 807 28,660 2,243
(as % of revenues) 8.3 % 7.3 % 64.9 % 5.7 %
Pro-forma Adjusted EBITDA 2,425 807 5,770 2,243
Basic earnings per share
From continuing operations (0.02 ) 0.04 (0.13 ) (0.06 )
From discontinued operations - 0.17 3.02 0.58
From net income (loss) (0.02 ) 0.21 2.89 0.52
Diluted earnings per share
From continuing operations (0.02 ) 0.04 (0.13 ) (0.06 )
From discontinued operations - 0.17 2.98 0.58
From net income (loss) (0.02 ) 0.21 2.85 0.52
* restated to conform to IFRS 10 and discontinued operations
As at
November 30
2014
$
As at
November 30
2013
$
Total assets 46,491 74,024
Total liabilities 20,009 35,282
Cash and cash equivalents 6,497 2,069
Bank indebtedness 1,160 8,789
Current portion of long-term debt 1,976 1,684
Long-term debt 8,040 9,265
Shareholders' equity 26,482 38,742
Common shares (in thousands) 4,742 8,421

Fourth Quarter Highlights

  • Record revenue for the fourth quarter from continuing operations of $12.7 million, up 15.5% from $11.0 million in Q4 2013. Strong US sales growth occurred in all domestic channels and export markets as the US market gradually accepts safe patient handling as best practice. Sales growth was experienced in Canada in most product lines and geographic regions.
  • Gross margin increase reflects increased sales both in the US and Canada. The margin increase is in line with expected improvements in plant efficiency from the US manufacturing facility along with improved product sourcing and sales mix.
  • Adjusted EBITDA from continuing operation of $1.1 million compared to $0.8 million in Q4 2013.
  • Pro-forma Adjusted EBITDA of $2.4 million compared to $0.8 million in Q4 2013. The fourth quarter includes the impact of expenses relating to the completion of the SIB and the Angel acquisition for $1.2 million.
  • Fourth quarter 2014 loss from operations was $87 thousand compared to net income of $298 from operations in the fourth quarter of 2013.
  • For a comprehensive discussion of the quarter and fiscal 2014 please refer to the Company's Management Discussion and Analysis and Consolidated Financial Statements for the year ended November 30, 2014. Both these documents can be found on SEDAR or the Company's website.

Chairman's Comments

"I am very pleased with the results of our fourth quarter as we position our focus on growth opportunities on the North American market. Strong sales growth occurred in all domestic channels and export markets as the US market gradually accepts safe patient handling as best practice. Sales growth was experienced in most geographic regions and in most of our products including our new range of bathtubs.

We continue with our acquisition strategy and in January of this year, we completed the purchase of substantially all of the assets of Angel Accessibility Solutions Ltd., a provider of safe patient handling and elevating products and services. We expect this long standing Canadian service provider to realize above average sales and profit growth driven by new products and the synergies we expect from a successful integration."

Outlook

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.

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 continues to change, we believe that the long term trend continues to be favorable.

Management believes that the US market holds the greatest long-term potential to provide above-average revenue growth both in the institutional and homecare 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.

Dividend

On March 24, 2015, the Board of Directors approved the payment of $0.125 per common share to shareholders of record on April 10, 2015 to be paid on April 17, 2015.

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'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. Our Non-IFRS measures also include Pro-forma Adjusted EBITDA which excludes the impact of non-recurring costs such as restructuring costs, gain on sale of the UK business and transaction costs relating to acquisitions. Adjusted EBITDA from continuing operations consists of earnings before interest, income taxes, depreciation, amortization, stock‐based compensation. Adjusted EBITDA from continuing 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 continuing operations is a useful measure for evaluating the performance of the Company. Adjusted EBITDA from continuing operations 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.

Contact Information