FOR IMMEDIATE RELEASE
CANADIAN MEDICAL LABORATORIES ANNOUNCES THIRD QUARTER RESULTS
TORONTO, Ontario, August 20, 1998 - Canadian Medical Laboratories Limited (TSE: CLC), a leading pharmaceutical research and medical laboratory testing company, today reported sales of $18,792,000 and a 16.9% increase in net income to $3,027,000 or $0.18 per share, for the third quarter ended June 30, 1998. This compares to sales of $20,471,000 which included a $1.7 million accrual related to revenues earned in prior periods, and net income of $2,590,000 or $0.16 per share for the corresponding period last year.
Bottom line results remain strong as the company continues to improve operating efficiencies in its laboratory testing business. The company’s wholly-owned subsidiary Pharma Medica Research has established an impressive order backlog and CML expects these research contracts to generate significant revenues in early fiscal 1999.
During the quarter the company continued to make significant progress within its pharmaceutical research business beginning with Pharma Medica Research Inc. as it unveiled its new Phase I Clinic in Scarborough, Ontario. This new state-of-the-art facility became fully operational during the month of April, 1998. Further activity included the commencement of operations at The Academic Network for Clinical Research (ANCR) in June. ANCR has begun to centralize the management, marketing and administration of clinical investigations at several prestigious medical centers in the United States.
Sales for the nine months ended June 30, 1998, were $57,008,000 versus $53,363,000 for the corresponding period last year. Net income for the nine month period ended June 30, 1998 was $8,593,000 or $0.52 per share compared to $4,866,000 or $0.33 per share for the corresponding period ended June 30, 1997. Earnings prior to the amortization of licenses and goodwill for the nine months ended June 30, 1998 were $10,463,000 or $0.63 per share compared to $6,496,000 or $0.43 per share in the prior year.
"Our growth strategy remains intact," said John Mull, M.D., President and CEO. "Through investments in several well managed subsidiaries, we will leverage off of our successful laboratory testing business to build a strong presence in the pharmaceutical research marketplace across North America."
Subsequent to the end of the quarter, in July the company filed a notice of intention to make a normal course issuer bid for up to 5% of the company’s outstanding common shares and 10% of the public float of the warrants. "We believe the company’s common shares and warrants have been trading at a price range that does not properly reflect CML’s business, or its considerable growth prospects," added Dr. Mull. "As a result, management and the board agree that a stock repurchase is a wise and effective use of the company’s capital."
Canadian Medical Laboratories Limited, is a leading edge healthcare company providing laboratory testing services in Ontario and pharmaceutical research services across North America. CML’s common shares trade on The Toronto Stock Exchange ("TSE") under the symbol "CLC" with approximately 16.8 million shares outstanding.
For further information, please contact: