ADAC Announces Record Fourth Quarter and Fiscal Year Results; MCD Momentum Excelerates.MILPITAS, Calif.--(BW HealthWire)--Nov. 5, 1997--ADAC Laboratories (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADAC ADAC Allgemeiner Deutscher Automobil Club (German automobile club) ADAC Aboriginal Drug and Alcohol Council ADAC Art Directors and Artists Club (Sacramento, California) ADAC Alcohol and Drug Abuse Council ), the world market share leader in nuclear medicine, announced record results for its fourth fiscal quarter of 1997 ended September 28, 1997. The Company reported a 19 percent increase in earnings per share and its twelfth consecutive quarterly revenue and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increases, excluding the effect of the one-time charge for in-process research and development related to the purchase of Cortet, Inc. recorded in the third quarter of fiscal 1997. For the fourth quarter, ADAC generated record revenues of $72.5 million, a 12 percent increase over the $64.9 million reported for the fourth quarter of fiscal 1996. This increase was attributed to an 11 percent increase in product revenue and a 15 percent increase in service revenue. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 41.6 percent in the fourth quarter of fiscal 1997 from 39.4 percent in the previous fiscal year's fourth quarter. ADAC achieved net income of $6.0 million in the fourth quarter of fiscal 1997, a $1.2 million increase over the $4.8 million reported in the fourth quarter of fiscal 1996, and earnings per share of 31 cents in the fourth quarter of fiscal 1997, an increase of 19 percent from 26 cents in the fourth quarter of fiscal 1996. For the fiscal year ended September 28, 1997, ADAC reported revenues of $282.3 million, a 17 percent increase over the $240.8 million reported for the previous fiscal year. Excluding the effect of a one-time charge for in-process research and development related to the purchase of Cortet, Inc., ADAC achieved net income of $22.5 million, or $1.16 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , reflecting an increase in earnings per share of 29% over the 90 cents per share recorded in fiscal 1996. In announcing the results, R. Andrew Eckert, ADAC's Chief Executive Officer, stated, "We are quite pleased to report our twelfth consecutive quarterly revenue and operating income increase. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we were pleased with our progress on Molecular Coincidence Detection (MCD MCD Minor Civil Division MCD McDonalds (restaurant) Mcd Macedonian (linguistics) MCD Municipal Corporation of Delhi MCD Magnetic Circular Dichroism MCD Mad Cow Disease (TM)) this past quarter as our sales momentum increased significantly. Given our favorable multi-center clinical trial results and the recent FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. 510(k) clearance of our product enhancement, MCD/AC(TM), the outlook is positive for this exciting product." Eckert continued, "With respect to our multi-center clinical trials, positive preliminary results were announced by Dr. Henry Wagner at the European Association of Nuclear Medicine Congress in August. To date, the trial has confirmed that MCD produces high rates of sensitivity (96 percent) and specificity (80 percent), which represent a significant improvement in clinical accuracy over conventional imaging techniques for diagnosing certain diseases. "In addition, the clearance from the U.S. Food and Drug Administration to market Molecular Coincidence Detection with Attenuation Loss of signal power in a transmission. Attenuation The reduction in level of a transmitted quantity as a function of a parameter, usually distance. It is applied mainly to acoustic or electromagnetic waves and is expressed as the ratio of power densities. Correction in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. clears the way for ADAC to begin receiving orders, manufacturing, and delivering this new technology to our customers. "Additionally, in our Medical Systems division, we further expanded our multi-vendor service business by signing a national service agreement with COHR COHR Congolese Observatory of Human Rights Inc., of Chatsworth, CA. The agreement added approximately 75 gamma cameras gamma camera Nuclear medicine A device that evaluates the distribution of a radionuclide in the body post-injection to our rapidly growing multi-vendor service business and will help COHR and its customers improve the quality and delivery of cost-effective healthcare. "Most recently, on October 28th, ADAC entered the $500 million worldwide market for refurbished diagnostic imaging equipment by completing our acquisition of Southern Cats, Inc. (SCI (Scalable Coherent Interface) An IEEE standard for a high-speed bus that uses wire or fiber-optic cable. It can transfer data up to 1GBytes/sec. (hardware) SCI - 1. Scalable Coherent Interface. 2. UART. ), of Ontario, CA. SCI is one of the largest independent providers of Computed Tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. and X-ray equipment refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur and service. "In our HealthCare Information Systems Business, we completed two significant contract signings for our radiology information systems A Radiology Information System (RIS) is used by radiology departments to store, manipulate and distribute patient radiological data and imagery. The system generally consists of patient tracking and scheduling, result reporting and image tracking capabilities. product, QuadRIS(TM), the first at Children's Hospital A children's hospital is a hospital which offers its services exclusively to children. The number of children's hospitals proliferated in the 20th century, as pediatric medical and surgical specialties separated from internal medicine and adult surgical specialties. in Boston, MA, and the second at Memorial Sloan Kettering Cancer Center in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY. These important customer decisions illustrate the progress ADAC has made with its client/server radiology radiology, branch of medicine specializing in the use of X rays, gamma rays, radioactive isotopes, and other forms of radiation in the diagnosis and treatment of disease. products and the position that ADAC holds because of its technological innovation and understanding of the dynamics of today's radiology environment. "We were also selected as Tenet Healthcare Tenet Healthcare Corporation (THC) is an operating company that owns and operates 57 hospitals in the United States [1]. It is based in Dallas, Texas. Its stock ticker symbol on the New York Stock Exchange is NYSE: THC. Corporation's preferred provider for radiology information systems. Under the agreement we will provide QuadRIS to selected Tenet Healthcare Corporation hospitals over a three-year contract period. Given these successes and our strong outlook in radiology information systems, we believe our momentum in our HealthCare Information Business is increasing." ADAC Laboratories is the world market share leader in nuclear medicine and a supplier of radiation therapy planning systems See spreadsheet and financial planning system. and radiology, laboratory and cardiology cardiology Medical specialty dealing with heart diseases and disorders. It began with the 1749 publication by Jean Baptiste de Sénac of contemporary knowledge of the heart. Diagnostic methods improved in the 19th century, and in 1905 the electrocardiograph was invented. information systems in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . In 1996, ADAC became the first healthcare manufacturer to receive a Malcolm Baldrige National Quality Award The Malcolm Baldrige National Quality Award is given by the United States National Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm Baldrige National Quality . ADAC is headquartered in Milpitas, CA. with its HealthCare Information Systems division in Houston, TX. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Factors that could cause actual results to differ materially from those contained in such forward-looking statements include those factors set forth under "Business Considerations" in the Company's most recent Form 10-Q Form 10-Q See 10-Q. . All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements. -0-
ADAC LABORATORIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
1997 1996 1997 1996
Revenues, net:
Product $ 53,648 $ 48,519 $ 211,831 $ 177,613
Service 18,832 16,406 70,500 63,172
-------- -------- --------- ---------
72,480 64,925 282,331 240,785
Cost of revenues:
Product 30,705 28,679 121,766 108,091
Service 11,650 10,640 44,256 39,542
-------- -------- --------- ---------
42,355 39,319 166,022 147,633
Gross profit 30,125 25,606 116,309 93,152
Operating expenses:
Marketing and sales 10,611 9,925 42,445 36,275
Research and development 4,878 3,367 15,693 12,516
General and administrative 3,748 3,665 16,932 14,250
Goodwill amortization 198 198 792 792
In-process research and
development and acquisition
expenses -- -- 5,862 --
-------- -------- --------- ---------
19,435 17,155 81,724 63,833
Operating income
Normalized (1) 10,690 8,451 40,447 29,319
Reported (2) 10,690 8,451 34,585 29,319
Other expense, net (1,184) (943) (4,940) (3,407)
Income before provision
for income taxes
Normalized (1) 9,506 7,508 35,507 25,912
Reported (2) 9,506 7,508 29,645 25,912
Provision for income taxes
Normalized (1) (3,479) (2,703) (12,992) (9,275)
Reported (2) (3,479) (2,703) (12,867) (9,275)
Net income
Normalized (1) $ 6,027 $ 4,805 $ 22,515 $ 16,637
Reported (2) $ 6,027 $ 4,805 $ 16,778 $ 16,637
Net income per share
Normalized (1) $ 0.31 $ 0.26 $ 1.16 $ 0.90
Reported (2) $ 0.31 $ 0.26 $ 0.86 $ 0.90
Number of shares used in
per share calculations 19,697 18,839 19,487 18,507
Dividends per share -- $ 0.12 -- $ 0.48
(1) Normalized excludes one-time pre-tax charge
(2) Reported includes one-time pre-tax charge
ADAC LABORATORIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Sept. 28, Sept. 29,
1997 1996
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,088 $ 3,081
Accounts receivable, net 99,495 80,654
Inventories 27,534 31,975
Deferred income taxes 6,731 8,095
Prepaid expenses and other current assets 10,155 11,027
--------- ---------
Total current assets 149,003 134,832
Service parts, net 17,278 15,482
Fixed assets, net 11,555 8,393
Capitalized software, net 14,007 11,656
Goodwill, net 10,110 10,901
Other assets, net 3,524 5,364
--------- ---------
Total Assets $ 205,477 $ 186,628
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to banks $ 22,217 $ 27,226
Accounts payable 10,543 13,923
Dividends payable -- 2,137
Deferred revenues 11,561 13,302
Customer deposits and advance billings 2,841 2,302
Accrued compensation 7,522 7,825
Other accrued liabilities 9,643 13,797
--------- ---------
Total current liabilities 64,327 80,512
Non-current deferred income taxes 11,103 2,275
Non-current liabilities and deferred credits 3,596 4,370
--------- ---------
Total Liabilities 79,026 87,157
Shareholders' Equity
Preferred stock, no par value:
Authorized: 5,000 shares;
Issued and outstanding: none
Common stock, no par value:
Authorized: 50,000 shares
Issued and outstanding: 18,812 shares
at September 28, 1997 and 17,781 shares
at September 29, 1996, respectively 123,269 110,661
Retained earnings (accumulated deficit) 5,547 (10,172)
Translation adjustment (2,365) (1,018)
----------- ---------
Total Shareholders' Equity 126,451 99,471
Total Liabilities and Shareholders' Equity $ 205,477 $ 186,628
CONTACT: ADAC Laboratories Heidi Magner, 408/321-9100 |
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