MISSISSAUGA, ONTARIO -- (Marketwire) -- 03/07/13 -- CML HealthCare Inc. (the "Company" or "CML") (TSX: CLC) today reported results for the three and twelve month periods ended December 31, 2012. All financial results reflect the reclassification of CML's U.S. and Alberta imaging operations as discontinued operations which were sold in November 2011 and November 2012 respectively. CML will be hosting an investor call today, March 7, 2013 at 10:00 am (ET). Call-in number 416-340-8427 or 866-225-6564.
Fiscal 2012 Highlights:
-- Consolidated financial results reflect classification of U.S. and Alberta imaging operations as discontinued operations-- Revenue of $353.6 million compares to $354.8 million in 2011-- EBITDA(1) of $107.5 million compares to $119.7 million in 2011-- Net earnings of $39.9 million include a pretax charge for impairment of non-financial assets and, restructuring and other expenses totaling $25.2 million-- Including impairment charges and, restructuring and other expenses, EPS of $0.44 compares to $0.67 in 2011-- Normalized AFFO(2) totaled $51.7 million
For the full year 2012, consolidated revenue from continuing operations was $353.6 million compared to $354.8 million for the same period in 2011. The decline reflects a $3.1 million increase in laboratory revenue offset by a $4.3 million decrease in diagnostic imaging revenue. The increase in laboratory revenue reflects additional performance-based funding from the Ministry of Health and Long Term Care ("MOH") and higher non-cap revenues, partially offset by reimbursement rate cuts. The decline in revenue from imaging operations reflects the impact of the OHIP reimbursement cuts, retroactive imaging technical fee funding recognized as revenue in 2011, and closures of imaging locations in 2012.
Cost of services for the full year 2012 increased 2.5% to $214.5 million compared to the same period in 2011, reflecting higher staffing costs, medical professional fees and variable costs associated with increased billings.
General and administrative ("G&A") expenses totaled $46.3 million for the full year 2012 compared to $40.6 million in 2011. This increase reflects higher staffing costs, consulting fees related to laboratory process re-engineering, marketing costs associated with the launch of COLOGIC (CML's new screening test for colorectal cancer) and, a commodity tax recovery recorded in 2011 which was not applicable in 2012.
Net earnings and EPS for the full year 2012 were $39.9 million and $0.44 compared to $59.9 million and $0.67 in the prior year respectively. Lower interest expense reflecting a decrease in interest rates and average debt balance, as well as lower income taxes in 2012, were offset by an asset impairment charge of $19.6 million and a charge of $5.7 million for restructuring and other expenses. The asset impairment charge reflects the write-down of the Company's diagnostic imaging assets to their estimated fair value, less costs to sell. The restructuring and other expenses include a $3.7 million charge in respect of severances associated with laboratory process re-engineering and closure of imaging locations, and a $2.0 million charge related to the early termination of a long-term supplier contract.