We are pleased to report that third quarter revenues increased by 49% to $20.4 million compared to $13.7 million in the previous year. Net income for the three months ended June 30, 1997 increased 44% to $2.6 million or 16¢ per share compared to $1.8 million or 18¢ per share in 1996. Net income adjusted for an addback for amortization of licenses and goodwill was $3.2 million or 19¢ per share as compared to $2.1 million or 20¢ per share in 1996. These increases reflect the integration of the Excel Bestview Medical Laboratories volume into Canadian Medical Laboratories’ central testing laboratory. Due to the initial public offering by the Company in November 1996, the weighted average number of shares for the quarter was 16.6 million compared to 10.1 million in the previous year.
For the nine months ended June 30, 1997, revenues were $53.4 million up from $40.5 million for the same period in 1996. Net income was $4.9 million or 33¢ per share compared to $4.7 million or 45¢ per share. Net income adjusted for an addback for amortization of licenses and goodwill was $6.5 million or 43¢ per share as compared to $5.6 million or 53¢ per share. Improvement in profitability is expected to continue due to greater efficiencies from further planned automation including handling and processing of specimens.
Canadian Medical Laboratories continues to aggressively pursue acquisitions
in the pharmaceutical clinical trial industry. Negotiations are proceeding
with several potential targets. CML also intends to continue to increase
its clinical laboratory business by acquisitions, partnering with hospitals,
and direct pay clients. We believe these initiatives will provide CML with
sustained growth.
John D. Mull M.D.
President and C.E.O.
Telephone: (905) 624-0440