TORONTO, Nov. 16 /PRNewswire-FirstCall/ -- Med-Emerg International Inc (OTC BB -MDER) today announced that its loss for the nine months ended September 30, 2004 fell 65% from $1,562,022 (all amounts are U.S. dollars unless otherwise stated) in 2003 to $542,778 in 2004. For the three months ended September 30th, the net loss increased from a gain of $114,715 in 2003 to a loss of $234,864 in 2004. At the same time, the Company increased its working capital position by $4,907,429 over the balance at December 31, 2003 as a result of its recently completed equity financing.
THREE MONTHS ENDED NINE MONTHS ENDED September 30 September 30 September 30 September 30 2004 2003 2004 2003 ------------------------------------------------------ Revenue $11,704,989 $14,297,671 $34,827,797 $41,914,477 Net revenue 1,148,196 1,417,336 3,501,825 3,897,559 Operating loss before income taxes and minority interest (234,864) (732,138) (506,106) (2,196,901) Net loss before preferred share dividends (234,864) (714,341) (506,106) (2,192,444) Net loss before discontinued operations (234,864) (748,099) (539,329) (2,293,701) Net loss for the period (234,864) 114,715 (542,778) (1,562,022) Per share basic - continuing operations 0.00 (0.08) (0.02) (0.25) Per share basic - discontinued operations 0.00 0.09 0.00 0.08
Revenues for the nine months ended September 30, 2004 decreased 17% to $34,827,797 from $41,914,477. For the three months ended September 30, revenues decreased by 18% to $11,704,989 from $14,297,671. Closing costs associated with the above referenced equity financing caused EBITDA for the nine months ended September 30, 2004 to fall to ($576,942) as compared to a positive EBITDA of $265,052 in 2003. For the three months ended September 30, 2004 EBITDA declined to ($35,286) from a gain of $221,059 in 2003. The Company reduced its loss from operations for the nine months ended September 30, 2004 to $506,106 from a loss of $2,196,901 in 2003. Similarly its loss for the three months ended September 30, 2004 was reduced to $234,864 from a loss of $732,138, in 2003. Reduced interest and financing costs associated with corporate borrowings, a reduction of stock compensation expenses, a one-time gain from the forgiveness of preferred share dividends of $563,477 in the second quarter of 2004 and a loss of $726,656 on the disposition of certain assets in 2003, all contributed to the improved results.
The reduction in the Company’s loss reflects the significant reduction in stock compensation expenses and in general operating expenses, before considering the one-time impact of the closing costs associated with the equity financing. The decrease in revenue reflects the non-recurring nature of the revenue associated with the Company’s involvement with the SARS contract, which was awarded in March 2003, and to a lesser extent to the reduction in revenues associated with the Company’s on-going contract with the Canadian Department of National Defense. The gross margin for the nine months ended September 30, 2004 diminished by 10% from $3,897,559 in 2003 to $3,501,825 in 2004. The operating expenses for the nine months ended September 30, 2004, increased by about 12%, from $3,632,507 in 2003 to $4,078,767. After adjusting for the aforementioned impact of the closing costs associated with the equity financing, operating expenses were down about 4% for the nine months ended September 30, 2004.
Dr. Ramesh Zacharias said, “The third quarter was a period of consolidation for Med-Emerg International Inc. (MDER). Having successfully completed its equity financing, and raising $4,500,000, during the second quarter, the Company used this time to address certain operating issues. We have continued to invest in our information technology infrastructure and to streamline operations. At the same time we have begun to explore some new business opportunities, leveraging the experience of our new investor group. We believe that all of these initiatives enhance MDERs positioning on a go- forward basis.”
MDER specializes in the coordination and delivery of emergency and primary health care related services in Canada. These services include physician and nurse staffing and recruitment, clinical management services, the development and management of urgent care centers, a national drug infusion service, and a comprehensive physician practice management program.
Certain oral and written statements of the management of the Company included in this press release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, and Section 21E of the U.S. Securities Exchange Act of 1934. The accuracy of such statements cannot be guaranteed as they are subject to a variety of risks.
Med-Emerg International Inc.
CONTACT: Ramesh Zacharias, Chief Executive Officer,Med-Emerg International Inc., Tel: (905) 858-1368, Email:rzacharias@med-emerg.com