HispanicBusiness

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: dependence on government-based revenues in Canada; general economic conditions; pending and proposed legislative or regulatory developments in Canada including the impact of changes in laws, regulations and the enforcement thereof; reliance on funding models in Canada; operational and infrastructure risks including possible equipment failure and performance of information technology systems; intensifying competition resulting from established competitors and new entrants in the businesses in which we operate; disposal of our diagnostic imaging business under acceptable terms and conditions to our Company; our ability to complete strategic acquisitions and to integrate our acquisitions successfully; insurance coverage of sufficient scope to satisfy any liability claims; fluctuations in total patient referrals; technological change and obsolescence; loss of services of key senior management personnel; privacy laws; ability to pay dividends in the future; structural subordination of common shares; leverage and restrictive covenants; fluctuations in cash timing and amount of capital expenditures; tax-related risks; unpredictability and volatility of the price of common shares; dilution; and future sales of common shares.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the "Risk Factors" section of our Annual Information Form, under "Business Risks" and elsewhere in our Management's Discussion and Analysis of Operating Results and Financial Position ("MD&A") for the year ended December 31, 2011 and elsewhere in our filings with Canadian securities regulators. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf. Such statements speak only as of the date made.

CML HealthCare Inc.Consolidated Balance Sheets (unaudited)----------------------------------------------------------------------------                                                 December 31,  December 31,                                                         2012          2011(in thousands of Canadian dollars)                          $             $--------------------------------------------------------------------------------------------------------------------------------------------------------ASSETSCurrent assetsCash                                                    3,039        50,640Trade and other receivables                            39,601        44,627Current portion of notes receivable                         -         1,373Other current assets                                    3,630         2,874                                                ----------------------------                                                       46,270        99,515                                                ----------------------------Property and equipment                                 49,233        53,108Intangible assets                                      12,712        18,090Licenses                                              223,468       232,259Goodwill                                               16,900        30,582Notes receivable                                            -         6,916Investment and other assets                               362           328                                                ----------------------------Total Assets                                          348,945       440,797                                                ----------------------------                                                ----------------------------LIABILITIESCurrent liabilitiesAccounts payable and accrued liabilities               35,729        37,520Dividends payable                                       5,651         5,650Other current liabilities                               1,030         2,671Income taxes payable                                    3,641        17,968Current portion of long-term debt                         922           897Provisions                                              4,267         2,136                                                ----------------------------                                                       51,240        66,842                                                ----------------------------Long-term debt                                        249,279       298,935Provisions and other long-term liabilities              2,433         1,360Derivative liabilities                                  6,258         7,172Deferred tax liabilities                               24,333        24,489                                                ----------------------------Total Liabilities                                     333,542       398,798                                                ----------------------------SHAREHOLDERS' EQUITYCommon shares                                          55,210        55,134Contributed surplus                                       218            51Deficit                                               (35,711)       (7,839)Accumulated other comprehensive loss                   (4,315)       (5,347)                                                ----------------------------                                                       15,402        41,999                                                ----------------------------Total Liabilities and Shareholders' Equity            348,945       440,797                                                ----------------------------                                                ----------------------------CML HealthCare Inc.Consolidated Statements of Earnings and Comprehensive Income (unaudited)----------------------------------------------------------------------------For the year ended December 31                           2012          2011(in thousands of Canadian dollars, except share and per share amounts)                                     $             $--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue                                               353,599       354,753Cost of services                                      214,500       209,289                                                ----------------------------Gross margin                                          139,099       145,464                                                ----------------------------ExpensesGeneral and administrative                             46,337        40,553Impairment of non-financial assets                     19,570             -Restructuring and other expenses                        5,673         2,764                                                ----------------------------                                                       71,580        43,317                                                ----------------------------Earnings from continuing operations before interest & income taxes                               67,519       102,147Interest expense                                       10,157        12,036Interest and other income                                (975)         (301)                                                ----------------------------Earnings from continuing operations before income taxes                                          58,337        90,412                                                ----------------------------Provision for (recovery of) income taxesCurrent taxes                                          19,035        15,578Deferred taxes                                           (365)        9,431                                                ----------------------------                                                       18,670        25,009                                                --------------------------------------------------------------------------------------------------------Net earnings for the year from continuing operations                                            39,667        65,403----------------------------------------------------------------------------Earnings (loss) from discontinued operations, net of tax                                               267        (5,466)----------------------------------------------------------------------------Net earnings for the year                              39,934        59,937--------------------------------------------------------------------------------------------------------------------------------------------------------Other comprehensive income, net of income taxes  Gain on interest rate swap                            1,314         2,798  Provision for income taxes                             (282)         (711)                                                ----------------------------  Net                                                   1,032         2,087  Foreign currency translation adjustment                   -         1,418  Reclassified to net earnings                              -        (5,367)  (Recovery of) provision for income taxes                  -           (37)                                                ----------------------------  Net                                                       -        (3,986)Total other comprehensive income (loss)                 1,032        (1,899)                                                --------------------------------------------------------------------------------------------------------Comprehensive income for the year                      40,966        58,038--------------------------------------------------------------------------------------------------------------------------------------------------------Continuing operations - basic and diluted earnings per share                                      0.44          0.73Discontinued operations - basic and diluted earnings/(loss) per share                               0.01         (0.06)Net earnings - basic and diluted earnings per share                                                   0.44          0.67Weighted average number of common shares outstanding - basic                               89,842,397    89,842,397Weighted average number of common shares outstanding - diluted                             89,843,533    89,842,451CML HealthCare Inc.Consolidated Statements of Cash Flows (unaudited)----------------------------------------------------------------------------For the year ended December 31                           2012          2011(in thousands of Canadian dollars)                          $             $--------------------------------------------------------------------------------------------------------------------------------------------------------Cash provided by (used in)Operating activities  Net earnings for the year from continuing   operations                                          39,667        65,403  Items not affecting cash    Depreciation of property and equipment             11,343        11,840    Amortization of intangible assets                   3,442         2,998    Unrealized foreign exchange                             -           (84)    Interest expense                                   10,157        12,036    Other non-cash items                               (1,569)          (15)    Gain on settlement of notes receivable               (305)            -    Impairment of non-financial assets                 19,570             -    Gain on sale of property and equipment and     licenses                                            (580)            -    Restructuring and other expenses                    5,673         2,764    Current taxes                                      19,035        15,578    Deferred taxes                                       (365)        9,431  Net change in non-cash working capital items            481         5,396  Deferred revenue                                          -         2,194  Interest paid                                       (10,556)      (12,594)  Income taxes paid                                   (34,840)         (110)----------------------------------------------------------------------------Cash provided by operating activities of continuing operations                                 61,153       114,837Cash provided by operating activities of discontinued operations                                3,010        11,692                                                ----------------------------Cash provided by operating activities                  64,163       126,529                                                ----------------------------Investing activities  Purchase of property and equipment                  (14,304)      (16,297)  Proceeds from sale of property and equipment   and licenses                                         1,262             -  Receipts from notes receivable                        9,056           223  Other investing activities                             (362)            -  Business acquisitions                                  (923)         (328)  Acquisition of intangible assets                     (3,875)       (1,926)----------------------------------------------------------------------------Cash used in investing activities of continuing operations                                            (9,146)      (18,328)Transaction costs paid                                 (1,248)            -Cash used in investing activities of discontinued operations                                  (41)       (7,169)Proceeds from sale of discontinued operations          17,036        31,176                                                ----------------------------Cash from investing activities                          6,601         5,679                                                ----------------------------Financing activities  Principal repayment of long-term debt and   obligations under finance leases                   (49,057)      (27,188)  Dividends paid                                      (67,805)      (62,126)  Transaction costs incurred on debt refinancing       (1,503)            -  Common shares acquired                                    -          (392)----------------------------------------------------------------------------Cash used in financing activities of continuing operations                                          (118,365)      (89,706)Cash used in financing activities of discontinued operations                                    -        (1,368)                                                ----------------------------Cash used in financing activities                    (118,365)      (91,074)                                                ----------------------------(Decrease) increase in cash                           (47,601)       41,134Cash, beginning of year                                50,640         9,506----------------------------------------------------------------------------Cash, end of year                                       3,039        50,640--------------------------------------------------------------------------------------------------------------------------------------------------------