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Prism Medical Reports Second Quarter Results and Dividend Declaration

^{Published on 2011-07-19 14:10:59 - Market Wire}
 

TORONTO, July 19, 2011 /CNW/ - 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 second quarter ended May 31, 2011.

Second Quarter Fiscal 2011 Highlights

• Revenue increased 9% to $18.9 million, as compared to $17.3 million last year.  In North America, revenues increased 14% to $8.9 million due to stronger institutional demand in Canada and the U.S. In the U.K., revenues increased 5% to $10.0 million due to higher sales volumes through our regional service centres.
• Gross profit of 44% versus 42% last year was higher due to higher revenues and lower fixed costs.
• EBITDA increased by $0.7 million to $2.9 million, which represents 15% of revenues compared to $2.2 million or 13% of revenues in the same period last year.
• Fully diluted earnings per share were $0.17 compared to $0.12 in the second quarter of 2010, an increase of 42%.
• On March 15, 2011, the Company announced a major U.K. contract to provide disability equipment services to the London Borough of Bexley for a minimum four-year term valued at approximately £500,000 (approximately C$800,000) per year.
• On April 18, 2011, the Company announced the acquisition of Movement 2 Limited, a provider of home care patient moving and handling equipment, servicing and repair in the East Midlands region of the U.K.

"Prism Medical made significant progress in the second quarter, including securing a new U.K. contract," said Andrew McIntyre, Chief Executive Officer of Prism Medical. "We continue to see increased demand for our products and services, driven by increased adoption of safe patient handling equipment as a way to reduce both healthcare costs and caregiver injuries, and an aging population. We are pursuing several key growth strategies, including acquisitions and geographic expansion in North America and Europe."

For further information please refer to the Company's complete filings at [ www.sedar.com ].

Dividend Declaration
Prism Medical also announced today that its Board of Directors has approved a dividend of $0.075 per common share payable on August 19, 2011 to the shareholders of record on August 11, 2011.

About Prism Medical Ltd.
Prism Medical Ltd. is one of the largest providers and manufacturers of durable medical equipment and related services to the mobility challenged in Canada, the U.S. and the U.K., with more than 100,000 installations and 200,000 product solutions sold. The Prism Medical brands include Waverley Glen and ErgoSafe, North America's leading supplier of lifting, handling and repositioning aid products and services across Canada and the U.S. Freeway and Prism Service & Repair are leading suppliers of moving and handling products and services in the U.K.  For further information visit [ www.prismmedicalltd.com ].

Forward-Looking Statements
This document contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this report and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this report. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.

(1) Prism Medical's financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). The Company also uses non-GAAP measures such as EBITDA to measure its financial performance. EBITDA consists of earnings before interest, income taxes, depreciation, amortization and stock-based compensation expense. EBITDA is a financial metric used by many investors to compare companies on the basis of operating results, asset value and the ability to incur and service debt. Management believes that EBITDA is a useful measure in evaluating the performance of the Company. EBITDA does not have a standardized meaning prescribed by Canadian GAAP and may not be comparable to similarly titled financial metrics reported by other companies. 

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.