AMERICAN ONCOLOGY RESOURCES ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS PROPOSED STOCK OFFERING TERMINATED.HOUSTON--(BUSINESS WIRE)--July 11, 1996--American Oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. Resources, Inc. (Nasdaq:AORI AORI Airfield Obstruction Reduction Initiative ) today announced preliminary results for the second quarter ended June June: see month. 30, 1996. Revenues for the quarter are expected to be approximately $47 million compared with $24.7 million reported for last year's second quarter. While information at this time is preliminary, earnings are expected to be in the range of $.09 to $.10 per share. AOR AOR The ISO 4217 currency code for Angolan Reajustado Kwanza. reported $.06 per share for last year's second quarter. The earnings figures have been adjusted to reflect the 2-for-1 stock split which was effective May 31, 1996. The Company also announced the decision not to proceed with its previously announced proposed stock offering due to current market conditions. The Company believes its current capital structure, including its borrowing capacity, is adequate to meet its future needs for both working capital and acquisitions. In commenting on the preliminary results for the quarter, R. Dale Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. , Chairman of the Board and Chief Executive Officer, said, "We continue to show strong revenue growth, which reflects overall acceptance of the AOR model among physician groups nationwide. Although revenues appear to exceed our expectations, the Company expects to report earnings before income taxes, depreciation, and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) of between 19% and 20% of revenue for the quarter ended June 30, 1996. This margin is below prior quarters, yet remains one of the highest margins in the physician practice management sector. A substantial portion of this margin decrease relates to the rapid pace of Company acquisitions which has resulted in a delay in practice integration. Due to the Company's current expansion opportunities and its plans to continue rapid expansion, the Company believes the margin experienced in this quarter could be indicative of future margin levels." "Our opportunities to affiliate with additional premier oncology groups throughout 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. continue at a high level and we also continue to focus on expanding those groups already affiliated with the Company," concluded Mr. Ross. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Oncology Resources is a national physician practice management company focusing exclusively on oncology. The Company currently provides comprehensive management services under management agreements including practice operations, practice development, marketing, facility development, managed care contracting and information systems to 191 physicians practicing in 15 states. 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. that involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed above as a result of, among other things, the risks typically associated with relying upon preliminary information. CONTACT: American Oncology Resources L. Fred Pounds, 713/873-2674 or Morgen-Walke Associates Robert P. Jones: Investors Michelle Zawrotny: Media, 212/850-5600 |
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