Prism Medical Ltd. (PM:TSX-VEN) Reports Third Quarter Financial Results

TORONTO, Oct. 22 /CNW/ - Prism Medical Ltd. ("Prism" or "the Company") (PM:TSX-VEN) today announced its results for the third quarter ended August 31, 2010.

During the third quarter of 2010, revenues were $16.0 million compared to $15.1 million in 2009. Revenues in the UK increased 22% on a British Pound Sterling ("GBP") basis and 11% after incorporating the impact of a decline in the GBP relative to the Canadian dollar. Revenues in Canada increased 1% as compared to the same period in 2009 mainly as a result of stronger institutional demand. Revenues in the US increased 3% on a US dollar basis and decreased 3% after incorporating the decline in the US dollar relative to the Canadian dollar. The Company continues to focus its efforts on the US marketplace through enhanced sales initiatives and geographical coverage.

For the nine months ended August 31, 2010, sales were $47.7 million compared to $47.1 million during the comparable period in 2009.  Revenues in the UK increased 32% in GBP and 17% after incorporating the impact of a decline in the GBP relative to the Canadian dollar. Revenues in Canada decreased 11% as compared to the same period in 2009.  Revenues in the US decreased 6% in US dollars and decreased 17% after incorporating the decline in the US dollar relative to the Canadian dollar.

In the third quarter of 2010, gross profit was $6.7 million as compared to $6.5 million over the same period in 2009 largely as a result of higher sales being partially offset by a one point reduction in overall gross margin percentage. Selling, general and administrative expenses were $5.2 million as compared to $4.6 million over the same period last year primarily as a result of incorporating the operating costs of new acquisitions, expenses directly attributable to the transitioning of the assembly plant to the US and costs incurred in pursuing strategic alternatives to increase shareholder liquidity and maximize shareholder value.

For the nine months ended August 31, 2010, gross profit was $20.4 million as compared to $20.0 million in the comparable 2009 period, and selling, general and administrative expenses were $16.0 million versus $13.5 million in the comparable 2009 period. 

Net income for the third quarter of 2010 decreased to $0.5 million or $0.07 per share on a diluted basis as compared to $0.8 million or $0.13 per share on a diluted basis for the same period in 2009. For the nine months ended August 31, 2010, net income was $1.7 million or $0.28 per share on a diluted basis as compared to $3.2 million or $0.48 per share on a diluted basis in the comparable 2009 period.

Prism Medical Ltd. is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the USA and the United Kingdom.  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 includes Waverley Glen, 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 USA; 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.

Forward-looking Information
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.

For further information:

William G. Edwards
Chief Financial Officer
Prism Medical Ltd.
Tel: [phone] ext. 230
Fax: [phone]
[email protected]
www.prismmedicalltd.com