Q3 Revenue up 7.2%; EBITDA up 17%; Net Earnings up 34%
PI Financial Corp
30 Oct 2013
Available for Immediate Download
EARNINGS UPDATE October 29, 2013 CRH MEDICAL CORPORATION (T-CRH) $0.77 RATING: N/R TARGET: N/R (unchanged) (unchanged) Q3 Revenue up 7.2%; EBITDA up 17%; Net Earnings up 34% VALUATION/RECOMMENDATION: The shares of CRH Medical Corporation are up over 190% year-to-date. CRH is a NON-RATED company and we do not provide a target price. CRH currently trades at a 12x EV/EBITDA multiple based on our 2014 forecast. CRH is a micro-cap stock with limited share liquidity and limited cash reserves. As such, we assess an investment in CRH Medical Corporation as a SPECULATIVE risk rating. Company Statistics Risk: SPECULATIVE 52 week High / Low: $0.79 / $0.25 Shares Outstanding: 48.7M Shares Outstanding: 53.1M Market Capitalization: $40.9M Market Float: 44.8M Quoted Market Value: $34.5M 30 Day Av. Daily Volume: 89,482 Cash: $6.2M Net Debt/Capital: 0.0% CEO: Edward Wright Chairman: Anthony Holler Shareholders: Dir. & Officers 8.0% Financial Summary (FYE Dec. 31) (US$000's except EPS) 2011 2012 2013e 2014e Revenue 5,533 6,849 7,505 8,630 Gross profit 2,924 3,079 3,443 4,046 Gross profit margin 53% 45% 46% 47% EBITDA 1,515 1,862 2,012 2,456 EBITDA % 27.4% 27% 27% 28% Net earn. cont. ops 1,156 1,332 1,687 2,026 EPS cont. ops. $0.02 $0.03 $0.03 $0.04 EV/EBITDA 23x 18x 15x 12x Financials in US$; Stock related metrics assumes 1US$=1C$ Corporate Information CRH Medical Corporation (T-CRH) based in Vancouver, is a direct-to-physician distributor of a proprietary product to treat hemorrhoids in the US. CRH markets a treatment solution to gastroenterologists and general surgeons. We expect CRH to add complementary products/services to grow long-term revenue.