Fourth Quarter Results
For the fourth quarter ("Q4") ended December 31, 2012, revenues of $88.2 million were 2.7% lower than $90.6 million in 2011. The revenue decline reflects the previously announced reimbursement cuts to certain imaging and lab procedures by the MOH in 2012, and the continuing trend of lower x-ray volumes resulting from changes in industry referral patterns that began last summer. Compared to Q3 2012, Q4 2012 revenues increased $2.7 million reflecting a seasonally stronger quarter and increased laboratory performance-based funding recognized in Q4.
Cost of services in Q4 2012 of $53.5 million were essentially unchanged from the same period in 2011 of $53.4 million. Compared to Q3 2012, cost of services were $1.0 million higher, in line with higher revenues.
G&A expenses of $12.9 million in Q4 2012 compares with $10.3 million in Q4 2011. This increase reflects higher staffing costs, consulting fees related to laboratory process re-engineering, and marketing costs related to the launch of COLOGIC. Compared to Q3 2012, G&A expenses increased by $1.0 million, half of which represented consulting fees primarily associated with the laboratory process re-engineering.
EBITDA(1) in Q4 2012 totaled $25.7 million compared to $30.5 million in the same quarter in 2011 and $24.7 million in Q3 2012.
Net loss of $6.5 million (or $0.07 per share) in Q4 2012 compares to net earnings of $25.2 million (or $0.28 per share) in Q4 2011. The decline in net earnings in Q4 2012 reflects the previously noted asset impairment charge of $19.6 million and the charge of $5.7 million for restructuring and other expenses.
Normalized AFFO(2) for Q4 2012 totaled $15.5 million compared to Q3 2012 of $15.0 million and Q4 2011 of $27.7 million. It should be noted that there were no material income taxes paid in 2011.
The Company had a cash balance of $3.0 million as at December 31, 2012 compared to $50.6 million as at December 31, 2011. The decline in cash balance was primarily due to debt repayment and payment of 2011 income taxes in the first quarter of 2012. Long-term debt, including the current portion, of $250.2 million as at December 31, 2012 compares to $299.8 million as at December 31, 2011. As at year-end 2012, the Company had approximately $150 million available under its revolving credit facility with a Debt/EBITDA ratio of approximately 2.3 times. Common shares issued and outstanding totaled 89,842,397 as at December 31, 2012.
Change in Board of Directors
Effective February 15, 2013, Steven Chepa retired as a Director of CML HealthCare Inc. "On behalf of CML and the Board of Directors, I would like to offer my sincere thanks and appreciation to Steven for his 16 years of distinguished service to the Company," said Patrice Merrin, Chairman of CML.
Board of Directors Declare Quarterly Dividend
For the first quarter ending March 31, 2013, the Board of Directors of CML HealthCare Inc. has declared a quarterly cash dividend of $0.1325 per common share payable on April 19, 2013 to shareholders of record as at the close of business on March 28, 2013.
CML designates $0.00066 per share of the dividend as an "ineligible dividend", and the remainder $0.13184 per share to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation.
Notice of Conference Call
Thomas Wellner, President and CEO of CML will be hosting a conference call on Thursday, March 7, 2013 at 10:00 am (EST) to discuss the Company's 2012 year-end financial results. Investors and analysts are invited to join the call by dialing 416-340-8427 or 866-225-6564. Please dial in 15 minutes prior to the call to secure a line. You will be put on hold until the conference call begins.
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