Business
CML HealthCare Income Fund Reports 2010 First Quarter Financial Results
CML HealthCare Income Fund Reports 2010 First Quarter Financial Results
About this update from Christina Lake Cannabis Corp
[{"type":"text","content":"\n\n\n\n May 6, 2010 (Canada NewsWire Group) -- Toronto Stock Exchange Symbol: CLC.UN\n\n CML HealthCare Income Fund (the "Fund" or "CML HealthCare"), (TSX: CLC.UN) today reported its financial results for the three month period ended March 31, 2010 (all amounts are in Canadian dollars, unless noted otherwise).\n\n\n >\n\n\n"Our Canadian businesses performed well in the first quarter of 2010, reporting increased revenue through organic growth. In the U.S., we are pleased with the early results from our latest acquisition in Rhode Island which is tracking to plan," said Paul Bristow, President and CEO of CML HealthCare Income Fund. "The severe winter weather in February resulted in the closure of our centers in Maryland and Delaware for a number of days, and together with the extended closures of physicians' offices, our overall U.S. medical imaging business experienced lower patient visits in the quarter," continued Mr. Bristow. "Year over year comparisons of U.S. based revenues, expenses and earnings reflect the strengthened Canadian dollar against the U.S. dollar."\n"With respect to our strategy for 2011, in light of taxes being applied to income trust distributions, I would like to confirm the Fund will be converting into a corporation on January 1, 2011," continued Mr. Bristow. "We are in the process of working with our professional advisors on all details including finalizing the post conversion dividend policy, which will be disseminated to the investment community by the end of the third quarter. For the balance of 2010, we anticipate the monthly distribution of $0.08927 per unit will remain unchanged."\n\n\n >\n\nFor the three months ended March 31, 2010 ("Q1 2010"), revenue for the Fund decreased 2.3% to $125.4 million from $128.3 million for the same period in 2009. Decreased revenue in Q1 2010 was largely attributable to:\n\n\n >\n\n\nThe above declines in revenue were partially offset by:\n\n\n >\n\n\nOperating, general and administrative ("OG&A") expenses totaled $94.7 million in Q1 2010. OG&A increased due to the addition of seven centers in the U.S. Northeast in 2009 and additional costs to support organic growth in Canada offset by a $6.1 decrease in OG&A for U.S. operations due to changes in foreign exchange rates.\nQ1 2010...