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Medical Facilities Q1 Net Earnings, Revenue Higher

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-- Medical Facilities (DR.TO) first quarter net earnings and revenue both climbed, the company said on Thursday.

Net earnings jumped 86% to US$13.1 million, or US$0.21 per diluted share, from US$7.05 million, or US$0.12 per share, in the prior year period.

Revenue grew 10.8% to US$67.1 million.

"We had a strong first quarter, driven by a favourable payor mix as well as higher volumes of orthopedic and spine procedures," said chief executive Jason Redman.

"During the quarter, we continued our several-year track record of returning capital to shareholders through our NCIB. However, the big highlight for the quarter came in January with the sale of our majority interest in OSH for gross cash proceeds of approximately $46 million. We ended the period with a very solid balance sheet and a robust cash position, providing us with significant financial strength and flexibility to continue investing in our hospitals and returning capital to our shareholders."

Medical Facilities closed down $0.14, to $16.96, on Wednesday on the Toronto Stock Exchange.

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