MediSolution nine-month results
MediSolution Ltd MSH
Shares issued 31,041,178 Feb 11 close $1.70
Mon 14 Feb 2000 News Release
Mr. Reme St-Hilaire reports
For the nine months ended Dec. 31, 1999, revenue increased to
$44.4-million, a 14-per-cent improvement from $39-million in the comparable
nine-month period last year. Net income for the nine-month period rose 141
per cent to $2.1-million or seven cents per share compared with net income
of $885,727 or three cents per share in the same nine-month period a year
ago.
Revenue for the three-month period ended Dec. 31, 1999, was $15.8-million,
up $2.1-million from $13.7-million in the third quarter of fiscal 1999. Net
income for the period was $612,281 or two cents per share compared with
$562,386 or two cents per share in the same period last year. Margins and
cash flow from operations for the quarter continue to improve.
During the quarter the company was awarded the first blood supply
management system contract in Canada, by SOGIQUE, the information
management arm of the Quebec government Ministry of Health. Worth
approximately $11-million over the next two years, the contract positions
MediSolution at the forefront of the blood transfusion surety field for the
entire Canadian market. The system will enable the integrated monitoring,
management and distribution of blood and its derivatives in hospitals
throughout the province of Quebec while offering previously unachievable
levels of security.
Additionally during the period, the company added another major pharmacy
chain in Western Canada to the list of clients installing its award-winning
Simplicity Plus retail pharmacy management system, signed contracts for its
human resource management system in two Ontario hospitals and the company
completed the development and installed its new radiology information
system (RIS) into two Quebec hospital centres. MediSolution was also named
a Canadian Technology Fast 50 company, in the annual ranking by Deloitte &
Touche of the 50 fastest growing technology companies in Canada.
"This is the tenth consecutive quarter of growth and profit from continuing
operations," said Remi St-Hilaire, MediSolution president and chief
executive officer. "I am very pleased with the revenue growth flowing from
all our product and service offerings. The Quebec blood supply management
system contract is an important vote of confidence in the company,"
St-Hilaire continued. "Not only will it benefit MediSolution's operating
results going forward, but also MediSolution can take pride from its
contribution to the first initiative in Canada directed at the security and
safety of the blood supply for our population."
Thom Skinner, executive vice-president and chief financial officer of
MediSolution, expressed satisfaction at the sustained level of growth
reflected in the third quarter results particularly in light of the
unanticipated non-revenue generating expenses associated with Y2K.
"MediSolution is the leading health care technology solutions provider in
Canada at a time when health issues are an important agenda item for
governments and spending is increasing. We are installed across Canada and
expanding into the United States We are at the forefront of tele-health, an
exciting technology growth area. The company is showing consistent growth
on both the top and the bottom lines, has an order backlog of $200-million
over the next five years and a healthy pipeline. Management and the board
continue to direct their attention to increasing shareholder value."
WARNING: The company relies on litigation protection for "forward-looking"
statements.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Dec. 31
(in thousands of dollars)
1999 1998
Revenue $15,845 $13,720
Variable and direct
cost of sales 9,413 8,322
------- -------
Contribution 6,432 5,398
Indirect expenses 4,583 3,913
------- -------
Earnings before
interest, taxes,
depreciation and
amortization 1,849 1,485
Depreciation and
amortization 1,028 796
Earnings before
interest and taxes 821 689
Interest expense 204 114
Income tax
provision 5 13
------- -------
Net income $ 612 $ 562
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CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended Dec. 31
(in thousands of dollars)
1999 1998
Revenue $44,395 $39,065
Variable and direct
cost of sales 25,990 23,302
------- -------
Contribution 18,405 15,763
Indirect expenses 12,909 12,505
------- -------
Earnings before
interest, taxes,
depreciation and
amortization 5,496 3,258
Depreciation and
amortization 2,843 2,222
Earnings before
interest and taxes 2,653 1,036
Interest expense 501 112
Income tax
provision 14 38
------- -------
Net income $ 2,138 $ 886
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