Apr 22 2011
Prism Medical Ltd. ("Prism Medical" or "the Company") (TSXV: PM), a leading provider of durable medical equipment and related services to the mobility challenged, today reported financial results for the three months ended February 28, 2011.
First Quarter Fiscal 2011 Highlights
- Revenues in North America increased $1.8 million, or 32%, compared to the same period last year due to stronger institutional demand for our products in Canada and market share gains on traditional products in the U.S. acute care market.
- Gross margins continue to be strong at 40%, versus 44% in the prior year, despite unusually higher sales volumes in lower margin areas during the quarter and the impact of the Canadian dollar strengthening by 6% against the British pound and 5% against the U.S. dollar.
- Selling, general and administrative expenses were $4.8M, a decrease of 11%, or $0.6 million over the same period last year due to general cost reductions and a stronger Canadian dollar.
- As consequence of the above, the Company saw significant increases in EBITDA and earnings per share, which rose by 24% and 44%, respectively, over Q1 2010.
"Steady performance in our U.K. business, healthy organic growth in our North American business, and increased operational efficiencies enabled us to generate strong increases in EBITDA and earnings for the quarter," said Andrew McIntyre, President and CEO of Prism Medical. "Our outlook for sustained growth continues to be positive, underpinned by demographic trends and increased adoption of patient handling equipment as an important solution to the challenge of rising healthcare costs. We are capitalizing on this market demand through several key growth strategies, including additional direct sales coverage of the U.S. institutional market, an expanded dealer network in Europe and in the U.S. homecare market, and further acquisitions."