TORONTO, Aug. 14, 2014 (GLOBE NEWSWIRE) -- GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" "GRST" or the "Company"), a provider of healthcare services including addiction and mental health, has filed its second quarter 10Q and for the first time posted a quarterly profit since becoming a medical company.
Revenue for the second quarter 2014 was $1,641,094 compared to $1,528,944 in the same period the previous year, an increase of $112,150 or 7%. The expenses before foreign currency translation for the second quarter 2014 were $1,180,213 compared to $1,528,944 in the same period the year before, a decrease of $358,786 or 23%. The net income before foreign currency translation for the second quarter 2014 was $102,461 compared to a loss of $350,275 in the same period the previous year, an increase of $452,736. The Company reported much lower costs in the area of rent, salaries and professional fees.
Shawn Leon, President and CEO, commented, "We have significantly reduced rent and salaries, the two areas we have previously reported as targets for cost cutting. We consider the results of the cost-cutting measures to be a major accomplishment. With our costs under control, we are able to focus on increasing revenues that we believe will dramatically improve our gross profit margins, and increase profitability going forward."
The Company is in the due diligence process on an acquisition previously announced in its Form 8-K filing on July 16, 2014. The Company believes this acquisition, if completed would be anideal add-on to its existing business as it targets younger clients. Leon added, "We are very happy with what have seen so far and, we think we can dramatically increase the revenues of the acquisition once it is integrated into our operations. As soon as we can confirm funding for the acquisition we will begin the process of firming up the agreements to acquire the business."
In addition to the improvements and focus on the income side of the business, the Company is also focused on improving its balance sheet. It is working on further funding, as well as a plan to acquire the real estate that it currently rents for its operations in Bala, Ontario. The Company is in discussion with other acquisition targets as it continues to focus on the core business of in-patient addiction treatment.
About GreeneStone Healthcare Corporation
GreeneStone Healthcare Corporation (OTCBB:GRST) operates medical and healthcare clinics in Ontario, Canada. GreeneStone's clinics serve to add overflow capacity to an increasingly stretched provincial healthcare system, and provide private alternatives to publicly available healthcare services. Its four medical clinics (three in Toronto, along with a facility in Muskoka, Ontario) offer various medical services, including addiction treatment, endoscopy, minor cosmetic procedures, and executive health care services. The Company currently has more than 60 employees and is based in North York, Ontario. For more information you can visit our website at www.greenestone.net.
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Source: GreeneStone Healthcare Corporation