Montreal, Quebec / TheNewswire / On April 30, 2018, DMD Digital Health Connections Group Inc. ("DMD" or the "Company") (NEX: DMG.H), a leader in digital intelligence for the health industry filed its financial statements and MD&A, reporting revenues of $ 47.0 million for the year ended December 31, 2017 compared to revenues of $ 41.0 million for the year ended December 31, 2016, an improvement of $ 6.0 million. For the quarter ended December 31, 2017, revenue reached to $ 12.1 million, which is a decrease of $ 1.3 million from revenue of $ 13.4 million realized during the fourth quarter ended December 31, 2016.
Gross margin increased by $ 4.9 million to $ 29.9 million for the year ended December 31, 2017 compared to $ 25.0 million realized during the same period in 2016. For the quarter ended December 31, 2017, gross margin was $ 8.1 million, a decrease of $ 1.2 million when compared to the quarter ended December 31, 2016. The Company had a very strong fourth quarter in 2016 while the quarterly performance in 2017 was more balanced.
For the year ended December 31, 2017 operating profit was $ 6.8 million compared to $ 7.3 million during the same period in 2016. Operating profit was $ 2.3 million for the quarter ended December 31, 2017, compared to $ 3.7 million for the quarter ended December 31, 2016. Expenses for the current year reflect the higher level of activities, the strengthening of the management team and the investment in information systems. In addition, the Company expanded its product development and marketing efforts to service its ever increasingly demanding clientele.
For the year ended December 31, 2017, the Company reported a profit of $ 4.2 million or $ 0.02 per share compared to a profit of $ 7.3 million or $ 0.04 per share for the year ended December 31, 2016. The lower profit can be explained in part by a non-recurring loss on extinguishment of debt of $ 0.3 million and higher income tax and deferred income tax expenses. For the quarter ended December 31, 2017, the Company reported a profit of $ 0.9 million compared to a profit of $ 5.7 million for the same period in 2016.
In summary, the increase in sales and gross margins achieved in 2017 were negatively impacted by unfavorable exchange rates. In addition, higher expenses incurred to strengthen the Company’s product development, marketing and its information systems explain the lower operating profit. Finally, the loss on extinguishment of debt and higher income tax and deferred tax expenses had a negative impact on profit when compared to the profit realized for year ended December 31, 2106.
Complete financial statements and MD&A for the three-month period and for the year ended December 31, 2017 are available on SEDAR at www.sedar.com
About DMD Digital Health Connections Group Inc. ("DMD")
DMD enables pharmaceutical, pharmaceutical marketing companies, digital advertising agencies and medical device companies to effectively reach, message, connect and interact with US physicians and healthcare professionals via multiple access channels. Its innovative service offerings provide targeted impressions and interactions through permission-based email, targeted on-line ad-serving, and mobile app advertising channels. Top pharmaceutical companies, agencies and respected healthcare organizations have adopted DMD’s solutions to target, engage and interact with leading healthcare practitioners. For more information, visit www.dmdconnects.com.
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management of DMD. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and DMD does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither NEX, the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
DMD Digital Health Connections Group Inc.
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