* Q3 rev down 9 pct to C$116.8 mln
* Says to look at tuck in acquisitions * Shrs fall as much as 10 pct (Recasts, adds conference call details and analyst comments)
By Arnika Thakur
Nov 11 (Reuters) - CML HealthCare Income Fund CLC_u.TO, which specializes in imaging and laboratory services, posted lower quarterly profit hurt by weakness at its U.S. operations, sending its shares down as much as 10 percent.
“Our U.S. operations continue to be challenged by the industry-wide experience of declining patient visits to physician offices,” Chief Executive Paul Bristow said in a statement.
CML’s U.S. operations, which account for about 30 percent of overall revenue, have been a concern due to soft volumes. It contributed $25.3 million in the quarter, down 27 percent.
However, adjusted EBITDA margins grew sequentially to 11.4 percent from 10.7 percent.
On a conference call with analysts, the Mississauga-based CML said U.S. margins were helped by cost cuts. It sees benefit of C$1 million per quarter run rate from cost reductions by the end of the year.
“Compared to the Canadian portfolio, the US is a little bit more challenging, but we think the corner has turned for the most part,” National Bank financial analyst Trevor Johnson said.
CML also said it continues to look for acquisitions opportunities, specially tuck-ins in Ontario, Alberta and British Columbia and the U.S. northeast. For the July-September quarter, the fund’s profit fell 16 percent. [ID:nASA011YR]
Net earnings were also hurt by C$1.8 million in expenses related to the departure of an executive and a charge for professional fees from an acquisition, that was not completed.
CML Healthcare shares were trading down about 5 percent at C$11.59 on Thursday on the Toronto Stock Exchange. They touched a low of C$10.92 earlier in the session. ($1=1.000 Canadian Dollar) (Reporting by Arnika Thakur in Bangalore; Editing by Don Sebastian)