Posted: Tue Apr 12, 2011 2:01 am Post subject: Prism Medical Ltd. Reports 2010 Annual Financial Results
Prism Medical Ltd. ("Prism" or "the Company") (TSXV: PM) today announced its results for the fiscal year ended November 30, 2010.
Toronto, Ontario, April 12, 2011 -- Prism Medical Ltd. ("Prism" or "the Company") (TSXV: PM) today announced its results for the fiscal year ended November 30, 2010.
The United Kingdom (UK) experienced an increase in revenues in fiscal 2010 of 28% in British Pound Sterling (GBP), which was predominately due to the full year impact of new acquisitions made in fiscal 2009. Considering the decline of the GBP relative to the Canadian (CDN) dollar, sales actually increased by 15%. In the United States (US), revenues in fiscal 2010 increased by 2% in US dollars. The increase in US revenues was caused by market share gains on traditional products and channels and driven by direct sales efforts. Revenues in the US declined by 8% when translated to the CDN dollar equivalent basis as the US dollar declined 10% year over year. In Canada, revenues decreased $2.8 million or 21%. The decrease in CDN sales was driven by weaker institutional demand for our products partially supported by government funding.
Gross profit in fiscal 2010 decreased $0.4 million (1%) compared to fiscal 2009 primarily due to lower gross margins earned in the UK markets. The reduction in UK gross margin percentage was predominately due to the full year impact of new acquisitions made during fiscal 2009. Selling, general and administration expenses in fiscal 2010 increased $1.7 million or 9% primarily due to the full year impact of fiscal 2009 acquisitions of Company owned dealers in the UK, increased infrastructure costs in pre-existing UK businesses, costs to transition the assembly plant to the US and the pursuit of strategic alternatives to increase shareholder liquidity and maximize shareholder value. Partially offsetting the increase in selling, general and administrative expenses was a reduction in North American expenses mainly attributable to reduced sales and marketing personnel and associated costs.
Net income in fiscal 2010 of $3.6 million or $0.52 per share on a fully diluted basis compared to $4.6 million or $0.66 per share in fiscal 2009.
Andrew McIntyre, Chairman and CEO of Prism stated "Fiscal 2010 was a year in which UK acquisitions were absorbed and integrated, more efficient factories were commissioned, significant manufacturing cost reductions were achieved, and North American selling techniques and resources were fine-tuned and employed to better serve customer demand. While accomplished at the cost of a decline in after tax profit, these activities represent significant progress as they strengthen our infrastructure and should support the significant and renewed growth we anticipate in the future".
Prism Medical Ltd. is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the United States (US) and the United Kingdom (UK). While Prism's history dates back to 1996, Prism's subsidiaries and divisions have been servicing the mobility disadvantaged since the mid 1980s in their homes, long-term care facilities and acute care facilities. Prism Medical includes Waverley Glen Systems, North America's premier lifting, handling and repositioning aid manufacturer with distribution across Canada and the US; Patient Lifts of New England and Access Solutions with distribution across the northeastern US; Westholme, Care Free Lifting & Handling, Test Valley Mobility, Saluss, Liftech and Assured Patient Lifts, leading distributors of moving and handling products in the UK; and Freeway Health Care, a UK-based manufacturer of ceiling hoists and shower chairs.
Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
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