November 11, 2009 / 1:27 PM / in 8 years

UPDATE 2-CML HealthCare Q3 profit falls

* Q3 earnings per basic unit C$0.27 vs C$0.29 last year

* Revenue rises 9 pct (Adds analyst comments, details, share movement)

By Isheeta Sanghi

BANGALORE, Nov 11 (Reuters) - CML HealthCare Income Fund CLC_u.TO posted a lower quarterly profit, hurt by an increase in operational expenses as the fund acquired additional property and equipment.

“Looking ahead, we will maintain our focus on margin improvement in our U.S. operations, while continuing to invest in growth opportunities,” Chief Executive Paul Bristow said in a statement.

Canaccord Adams analyst Neil Maruoka said the company may focus on acquiring individual or groups of imaging clinics in the United States.

In its medical imaging business, the company provides medical imaging services including MRI, CT, nuclear medicine, ultrasound, x-ray through a network of non-hospital based clinics in Canada.

CML acquired two medical imaging operations in the Northeastern United States in October, comprising of six centers. In February last year, the company bought Baltimore, Maryland-based American Radiology Services Inc.

Maruoka said the buyouts provide a stable base for the company to continue its acquisitive growth.

Q3 RESULTS

The Canadian company, which specializes in imaging and laboratory services, said it earned C$24 million, or 27 Canadian cents per basic unit in the third quarter, down from C$26.4 million, or 29 Canadian cents per basic unit, a year earlier.

CML’s U.S. operations generated earnings of $1.1 million, up from $500,000 in the year-ago quarter.

CML said earnings were weighed down by a C$3.5 million increase in amortization costs in the current third quarter.

Revenue rose to C$128.2 million from C$117.9 million.

Analysts on average had expected a profit of 27 Canadian cents per unit on revenue of C$127.6 million, according to Thomson Reuters I/B/E/S.

The company’s units were up 1 percent at C$13.78 in morning trade on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Ratul Ray Chaudhuri)

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