Microservices Expo Authors: Yeshim Deniz, Elizabeth White, XebiaLabs Blog, Don MacVittie, Liz McMillan

News Feed Item

Prism Medical Reports Second Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 07/28/14 -- Prism Medical Ltd., ("Prism Medical" or "the Company") (TSX VENTURE:PM), a leading provider of durable medical equipment and related services to the mobility challenged, today reported financial results for the second quarter (Q2) ended May 31, 2014.

                                            Three months          Six months
                                            ended May 31        ended May 31
(Expressed in thousands of Canadian                                         
 dollars except for earnings per                                            
 share and where otherwise noted)         2014   2013(1)      2014      2013
                                             $         $         $         $
Revenues                                10,376    10,518    20,266    18,623
Gross margin                             4,268     4,665     8,534     8,021
(as % of revenues)                       41.1%     44.4%     42.1%    43 .1%
Restructuring charges                    1,218         -     1,218         -
Net income from continuing                                                  
 operations                             22,571       513    22,613       2 3
(as % of revenues)                         N m      4.9%       N m     0 .1%
Net income (loss) from discontinued                                         
 operations                            (1,182)       861     (556)     1,410
Net income                              21,389     1,374    22,057     1,433
Adjusted EBITDA                                                             
Continuing operations                   25,857     1,283    26,603     1,442
(as % of revenues)                         N m     12.2%       N m     7 .7%
Basic earnings per share                                                    
 From continuing operations             2 . 64      0.06     2 .67    0 . 00
 From discontinued operations           (0.14)      0.10    (0.07)    0 . 17
 From net income (loss)                  2 .51      0.16     2 .61    0 . 17
Diluted earnings per share                                                  
 From continuing operations              2 .59      0.06    2 . 64    0 . 00
 From discontinued operations           (0.14)      0.10    (0.06)    0 . 17
 From net income (loss)                  2 .46      0.16     2 .58    0 . 17
                                             As at          As at
                                            May 31    November 30
                                              2014           2013
                                                 $              $
Total assets                                77,483         74,024
Total liabilities                           16,751         35,282
Cash and cash equivalents                   40,456          2,069
Bank indebtedness                                -          8,789
Current portion of long-term debt            1,597          1,684
Long-term debt                               6,538          9,265
Shareholders' equity                        60,732         38,742
Common shares (in thousands)                 8,862          8,421

Second Quarter Highlights

--  Sale of UK business for net proceeds of $53.8 million resulting in a net
    gain of $24.0 million included in net income of $21.4 million for the
    second quarter compared to net income of $1.4 million in the same
    quarter last year. 
--  Revenue from continuing operations of $10.4 million in the second
    quarter and $20.3 million for the six months ended May 31, 2014 compared
    to $10.5 million and $18.6 million respectively last year. Revenues for
    the quarter were somewhat less than expected as a result of delayed
    spending in the US acute care market segment and delayed order
    fulfillment as a result of the US plant relocation. 
--  During the quarter the US operations moved to a new location with
    greatly expanded capacity which will allow for more efficient receiving,
    shipping and production layout at an occupancy cost that is marginally
    higher than the previous location. 
--  In the quarter we incurred restructuring and other non-recurring costs
    totalling $2.3 million which will significantly reduce future corporate
--  For a comprehensive discussion of the quarter please refer to the
    Company's Management Discussion and Analysis and Financial Statements
    for the six month period ended May 31, 2014. Both these documents can be
    found on SEDAR or the Company's website.

"We were very pleased to have unlocked a significant shareholder value through the sale of the UK operations. Equally important it will allow management to focus all its attention and resources on the high growth North American market. It continues to be our intention to return to our shareholders in the near future the majority of the proceeds from the UK sale in the form of a Substantial Issuer Bid," said Andy McIntyre, Executive Chairman and CEO of Prism Medical.


The Company intends to grow sales and profitability and provide a reasonable return on shareholders' equity with a focus on the North American market. The Company believes that performance will be positively affected by a continued North American institutional and homecare demand for our products, improved manufacturing efficiencies, greater geographic coverage, and revenues and profits from new product introductions. During the past year the Company's North American operations have materially improved. Management believes that there are significant growth opportunities within the expanding North American health care industry both through organic growth and acquisitions that offer the potential to significantly increase shareholder value, while remaining consistent with Prism Medical's key growth strategies of vertical integration, product diversification and the application of relevant knowledge by its service oriented personnel.

The demand for our core products and services, in management's estimation, continues to experience growth at different rates in the geographic markets in which we participate. Government funding for our products in Canada is a key driver of sales. Although government policies related to healthcare in the markets we operate continues to change, we believe that the long term trend continues to be favorable.

Management believes that the US market holds the greatest long-term potential to provide above-average revenue growth both in the institutional and homecare markets. While budget constraints and the cyclicality of the institutional order pipeline can cause variability in US revenue, our efforts to build a larger footprint in this market have already translated into strong revenue growth.

Dividend Policy

While the Company has no formal policy on dividend payments and the Board of Directors determines the suitability of such payments on a quarterly basis, the Company views dividend payments an important part of its investor strategy and expects to continue its historical pattern of four dividend payments per fiscal year.

Dividend Declaration

On July 28, 2014, the Board of Directors approved the payment of $0.08 per common share to shareholders of record on August 16, 2014 to be paid on September 5, 2014.

About Prism Medical Ltd.

Prism Medical is a vertically integrated manufacturer and leading provider of equipment and services used to move and handle mobility challenged individuals in a safe and dignified manner. Prism Medical's products are marketed under the brand names of Prism Medical, ErgoSafe, Waverly Glen and Nightingale in the homecare, acute care and long-term care markets throughout North America. The Company offers solutions that encourage improved care, quality of life and mobility, while seeking to lower the overall cost of the caregiving function in a number of ways, including reducing the incidence of handling-related injuries among caregivers. In addition, the Company through its network of Nightingale dealers provides an integrated suite of products and services that make home care a viable option for many people. For further information visit Prism Medical's website at www.prismmedicalltd.com or www.sedar.com.

Non-IFRS Financial Measures

Prism Medical's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company also uses non-IFRS measures such as Adjusted EBITDA to measure its financial performance. Adjusted EBITDA from continuing operations consists of earnings before interest, income taxes, depreciation, amortization, stock-based compensation. Adjusted EBITDA from continuing operations is a financial metric used by many investors to compare companies on the basis of operating results, asset value and the ability to incur and service debt. Management believes that Adjusted EBITDA from continuing operations is a useful measure for evaluating the performance of the Company. Adjusted EBITDA from continuing operations is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled financial metrics reported by other companies.

Forward-Looking Information

This document contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this report and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this report. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@MicroservicesExpo Stories
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
If you are within a stones throw of the DevOps marketplace you have undoubtably noticed the growing trend in Microservices. Whether you have been staying up to date with the latest articles and blogs or you just read the definition for the first time, these 5 Microservices Resources You Need In Your Life will guide you through the ins and outs of Microservices in today’s world.
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
For those unfamiliar, as a developer working in marketing for an infrastructure automation company, I have tried to clarify the different versions of DevOps by capitalizing the part that benefits in a given DevOps scenario. In this case we’re talking about operations improvements. While devs – particularly those involved in automation or DevOps will find it interesting, it really talks to growing issues Operations are finding. The problem is right in front of us, we’re confronting it every day,...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, will discuss what every business should plan for how to structure their teams to d...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
When we talk about the impact of BYOD and BYOA and the Internet of Things, we often focus on the impact on data center architectures. That's because there will be an increasing need for authentication, for access control, for security, for application delivery as the number of potential endpoints (clients, devices, things) increases. That means scale in the data center. What we gloss over, what we skip, is that before any of these "things" ever makes a request to access an application it had to...
The reason I believe digital transformation is not only more than a fad, but is actually a life-or-death imperative for every business and IT executive on the planet is simple: there will be no place for an “industrial enterprise” in a digital world. Transformation, by definition, is a metamorphosis from one state to another, wholly new state. As such, a true digital transformation must be the act of transforming an industrial-era organization into something wholly different – the Digital Enter...
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
JetBlue Airways uses virtual environments to reduce software development costs, centralize performance testing, and create a climate for continuous integration and real-time monitoring of mobile applications. The next BriefingsDirect Voice of the Customer performance engineering case study discussion examines how JetBlue Airways in New York uses virtual environments to reduce software development costs, centralize performance testing, and create a climate for continuous integration and real-tim...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
This is a no-hype, pragmatic post about why I think you should consider architecting your next project the way SOA and/or microservices suggest. No matter if it’s a greenfield approach or if you’re in dire need of refactoring. Please note: considering still keeps open the option of not taking that approach. After reading this, you will have a better idea about whether building multiple small components instead of a single, large component makes sense for your project. This post assumes that you...