FOR: CONTINENTAL HOME HEALTHCARE LTD.
VSE SYMBOL: CHT
SEPTEMBER 2, 1999
Continental Announces Second Quarter Results
VANCOUVER, BRITISH COLUMBIA--Continental Home Healthcare Ltd. (the "Company") is pleased to announce its financial results for the six month period ending June 30, 1999. Management reports the positive trends and results it has experienced during the last 18 months have continued during the second quarter of 1999. All currency references are in Canadian dollars.
Gross sales for the second quarter of 1999 reached a record level of $4.9 million compared to $4.5 million for the previous three months. Revenues of $9.4 million for the six months ending June 30, 1999 represent a 63 percent increase over the same period last year.
Net profit of $106,789 for the second quarter is up 79 percent from the previous three months of $59,563. Net profit for the six months ending June 30, 1999 is $166,352 compared to $218,746 for the same period during 1998. This decline is wholly attributable to a change in accounting for foreign currency translation.
During 1998 the Company utilized the "Temporal Method" of
accounting for foreign currency which resulted in a contribution of $85,473 to the net profits during the six month period ending June 30, 1998. For 1999 the Company has adopted the "Current Rate Method" which does not consider foreign currency gains or losses in the determination of net profit. Excluding the non-cash foreign exchange gain from the June 30, 1998 earnings results, net profit was $133,273 compared to $166,352 for the same period in 1999. Earnings before interest, depreciation, amortization, income taxes and foreign exchange gain was $546,455 for the current six month period compared to $378,703 for the comparable 1998 period, an increase of 44 percent.
Management is encouraged with these half-year results as the
second six month period during the calendar year is historically the stronger of the two periods. Achieving sales of $9.4 million for the first six months keeps the Company well on track to surpass its annual projections of $18 million. The Company has recently completed the acquisition of the Queen of Angels - Hollywood Presbyterian Medical Center home medical equipment business. Management is confident that this acquisition will contribute to further growth of revenues and profits in the coming periods. As well, the Company is nearing the completion of securing a US$3.0 million operating line of credit which will enable management to continue its acquisition strategy in the southwestern United States.
Continental Home Healthcare Ltd. is a provider of durable and homemedical equipment to individuals and healthcare institutions with branches in Glendale and Indian Wells, California; Las Vegas, Nevada; and British Columbia, Canada.
ON BEHALF OF THE BOARD
ROBERT THORNTON, CHIEF EXECUTIVE OFFICER
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Continental Home HealthCare Ltd.
Mr. William Atkinson
Executive Vice-President
1-800-286-4566 or (604) 688-2748
(604) 683-2235 (FAX)
Email: WAtki51650@aol.com
Website: www.continentalhomehealth.com
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