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Alegro reports fiscal 2009 first quarter financial results

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^{Published in Business and Finance on Tuesday, May 19th 2009 at 4:05 GMT, Last Modified on 2009-11-03 07:27:57 by Market Wire}  

 TORONTO, May 19 /CNW/ - Alegro Health Corp. (TSX-V: AGO), a provider of medical, surgical and disability management services, today announced its financial results for the first quarter ended March 31, 2009, as well as subsequent operating highlights to date. "Our vision of building and sustaining the leading health services network in Canada is beginning to take shape," said Brenda Rasmussen, President and Chief Executive Officer of Alegro Health Corp. "Not only did we see a healthy increase in our revenues and EBITDA, but the acquisition of Active Health Management Inc. and The Brenda Rusnak Clinics Inc. businesses, subsequent to quarter end, will be a transformational event for Alegro and position us as the leader in disability and rehabilitation management services in Canada. I'm excited not only about the momentum this acquisition is creating within the organization, but the potential that remains for Alegro's growth in this and other niches within healthcare services." Following the quarter end, the Company entered into an agreement to acquire the business of Active Health Management Inc. and The Brenda Rusnak Clinics Inc. (collectively, "Active Health"), the first major acquisition arising out of its 2007 strategic alliance with Global Healthcare Investments& Solutions, Inc. The transaction, taking into account both Alegro's year end audited financial statements, as well as Active Health's audited year ended January 31, 2009 financial statements, on a pro forma basis, approximately triples Alegro's 2008 revenues of $15.8 million to over $45 million. Based on historical performance of the acquired businesses, management expects profitability of the Company will be greatly enhanced and that this transaction will be accretive to earnings per share in the first year. Further details on the transaction can be found in the Company's press release dated May 5, 2009. First Quarter 2009 Financial and Operating Highlights - Revenue increased by 14.5% to $4.27 million in Q1 2009 from $3.73 million in Q1 2008 - EBITDA(*) increased by 58.5% to $587,000 in Q1 2009 from $370,993 in Q1 2008 - Earnings per share increased 80% to $0.009 in Q1 2009 from $0.005 in Q1 2008 - As at March 31, 2009, Alegro had a cash position of $3.57 million (*)See section entitled Non-GAAP measures Subsequent to Quarter End - Announced the acquisition of Active Health Management, the first major venture arising out of its 2007 strategic alliance with Global Healthcare Investments & Solutions, Inc. The acquisition will be transformational for Alegro and provides critical mass, earnings and cash flow needed to further the Company's growth strategies. It is anticipated that subject to receipt of all approvals and satisfaction of the conditions to closing, this transaction will be completed before the end of the second quarter. Financial Results Selected Q1 2009 Financial Results Q1 2009 Q1 2008 Revenue $4,268,763 $3,728,723 Expenses $3,728,618 $3,408,691 Income Before Income Taxes $540,145 $320,032 Basic and Diluted Earnings per Share $0.009 $0.005 Total Assets $9,170,259 $8,973,712 Total revenue for the quarter ended March 31, 2009 increased by 14.5% to $4.27 million as compared to $3.73 million in Q1 2008. The increase in revenue is primarily related to continued growth in the Disability & Rehabilitation Management division, consisting of Work Able and Direct Health, which had 17% growth in this quarter compared to the prior year's quarter. Expenses increased by 9.3% for the quarter ended March 31, 2009 to $3.73 million as compared to $3.41 million in Q1 2008. Amortization expenses amounted to $47,151 for the quarter as compared to $50,961 recorded in Q1 2008. The overall increase is largely attributable to higher expenses within the Disability & Rehabilitation Management division along with that division's volume growth. It is important to note that while expenses increased with volume business growth, the expense to revenue ratio decreased from 91% to 87%. As at March 31, 2009, there were a total of 36,581,762 common shares and no preferred shares outstanding. As at March 31, 2009, there were a total of 3,050,000 options outstanding to purchase an equivalent number of common shares at an average exercise price of $0.28, expiring at various dates until 2013. As at March 31, 2009, the Company had cash of $3.57 million as compared to $4.00 million at December 31, 2008. For a complete review of financial statements, please visit [ www.sedar.com ]. Non-GAAP Measure The Company defines EBITDA as earnings before interest, taxes, depreciation, amortization, other expenses, non-controlling interest and transaction costs on debt financing. EBITDA is not a recognized measure under Canadian GAAP. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure, as it provides investors with an indication of the Company's performance. EBITDA is used by the Company to analyze performance and compare profitability between periods. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with GAAP. The Company's method of calculating EBITDA may differ from other companies and accordingly, EBITDA may not be comparable to measures used by other companies. About Alegro Health Corp. Alegro Health Corp. is a leading healthcare services provider capturing high value opportunities by providing additional access to select quality healthcare services. Through its divisions - Disability & Rehabilitation Management and Surgical/Hospital Services - Alegro is delivering additional resources to the Canadian public healthcare services and addressing the growing demand for private and enhanced out-of-pocket healthcare services. With superior knowledge of the healthcare industry, extensive and trusted relationships with payers, physicians, and government agencies, Alegro is pursuing a vertically integrated approach and an aggressive acquisition strategy to achieve its growth objectives. Alegro is listed on the TSX Venture Exchange under the symbol AGO. For further information, please visit[ www.alegrohealth.com ]. This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Specific forward-looking statements contained in this press release include statements regarding Alegro's proposed acquisition of Active Health, the completion of the acquisition and the outcome of the acquisition, as well as statements regarding transaction values, accretion, and ownership levels resulting from the completion of the proposed acquisition. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Alegro and Active Health and described in the forward-looking statements contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking statements include failure to realize anticipated synergies and the result of the review of the proposed acquisition by regulatory authorities. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Alegro will derive there from. This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. %SEDAR: 00016656E 

For further information: Brenda Rasmussen, President and CEO, Alegro Health, (416) 927-8400 ext. 303, [ brasmussen@alegrohealth.com ]; Michael Moore, Investor Relations, Equicom Group, (416) 815-0700 ext. 241, [ mmoore@equicomgroup.com ]