Accredo Health's Annual Earnings Increase 208%.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Aug. 19, 1999-- Accredo Health, Incorporated (Nasdaq:ACDO ACDO Air Carrier District Office ACDO Assistant Command Duty Officer ) today announced record results for its year and quarter ended June June: see month. 30, 1999. Net earnings increased 208%, to $4,382,000, or $0.63 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the year ended June 30, 1999, excluding the effects of an extraordinary, non-recurring charge for the early retirement of debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends. This compares to $1,425,000, or $0.26 per diluted share for the year ended June 30, 1998. Accredo's revenue for the year increased 43% to $258,354,000, from $180,958,000 in the previous year. Average diluted shares outstanding for the year were 6,954,630, versus 6,040,773 in the year ended June 30, 1998. For the quarter ended June 30, 1999, the Company's net earnings, excluding the effect of an extraordinary, non-recurring charge for the early retirement of debt and preferred stock dividends, increased 142%, to $1,499,000, or $0.16 per diluted share, compared to $619,000, or $0.10 per diluted share for the same period in 1998. Accredo's revenues for the quarter increased 41%, to $71,447,000, from $50,559,000 for the same period in 1998. Average diluted shares outstanding for the quarter were 9,157,905, versus 6,093,731 in the same period of 1998. "Our fiscal year has ended on an appropriately high note," said Accredo Health Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David D. Stevens Stevens, family of U.S. inventors. John Stevens, 1749–1838, b. New York City, was graduated from King's College (now Columbia Univ.) in 1768. . "In addition to the completion of our successful public offering of stock in April, fiscal 1999 was marked by four consecutive quarters of record revenues and net earnings, expansion of the services that we provide each of our current biotechnology manufacturers, and the addition of Centocor, Inc. (Nasdaq:CNTO CNTO China National Tourist Office ) to the select group of biotechnology manufacturers we serve. Perhaps most important, to our biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. partners and our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. plans, was the double-digit growth we realized in all of our major product lines," Stevens explained. In a separate release, Accredo Health today announced that its subsidiary, Nova Factor, Inc., has renewed its relationship with MedImmune, Inc. (Nasdaq:MEDI MEDI Marine Environmental Data Information Referral System ) for the provision of contract pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. services for Synagis Synagis™ Immunology A humanized monoclonal antibody for preventing winter RSV in children. See RSV. (R), a drug indicated for the prevention of serious lower respiratory tract Noun 1. lower respiratory tract - the bronchi and lungs lung - either of two saclike respiratory organs in the chest of vertebrates; serves to remove carbon dioxide and provide oxygen to the blood disease caused by respiratory synctial virus (RSV RSV respiratory syncytial virus; Rous sarcoma virus. RSV abbr. respiratory syncytial virus RSV 1 Respiratory syncytial virus, see there 2 Rous sarcoma virus, see there ) in pediatric patients pediatric patient Child, see there . "MedImmune had one of the most successful launches ever - in excess of $225 million in sales - with Synagis(R) last RSV season," Stevens said. "Its primary market is pediatric patients, an ideal fit for Accredo, due to our numerous relationships with children's hospitals This is a list of children's hospitals. See also Pediatric Care. International
New South Wales
"We are extremely excited about the opportunity to work more closely with a quality organization like MedImmune," Stevens added. "Through the expansion of this relationship, Accredo Health now serves five exceptionally strong biotech manufacturers, which positions the Company well for the future." Accredo Health, Incorporated provides specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. contract pharmacy and related services pursuant to agreements with biotechnology drug manufacturers relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the treatment of patients with certain costly, chronic diseases. The Company's services include collection of timely drug utilization and patient compliance information, patient education and monitoring through the use of written materials and telephonic consultation, reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. expertise and overnight drug delivery. 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 various risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements due to certain factors, including without limitation, business and economic conditions. These and other risks and uncertainties are detailed in the Company's reports filed with the Securities and Exchange Commission. Additional information regarding the renewal of Nova Factor's relationship with MedImmune is contained in a separate press release issued by the Company today. -0-
Accredo Health, Incorporated
Condensed Consolidated Statements of Earnings
(amounts in thousands, except share data)
(Unaudited)
Year Ended Three Months Ended
June 30 June 30
1999 1998 1999 1998
Net revenues $ 258,354 $ 180,958 $ 71,447 $ 50,559
Cost of services 220,517 154,046 61,319 42,930
--------------------- ---------------------
Gross profit 37,837 26,912 10,128 7,629
General & administrative 17,637 12,489 4,731 3,629
Bad debts 4,739 3,165 1,319 806
Depreciation
and amortization 3,911 3,861 908 980
--------------------- ---------------------
Income from operations 11,550 7,397 3,170 2,214
Interest expense (net) 3,165 3,552 511 851
--------------------- ---------------------
Earnings before income
taxes and extraordinary
item 8,385 3,845 2,659 1,363
Provision for income taxes 4,003 2,420 1,160 744
--------------------- ---------------------
Earnings before
extraordinary item $ 4,382 $ 1,425 $ 1,499 $ 619
===================== =====================
Earnings per share (1):
Basic $ 0.69 $ 0.26 $ 0.18 $ 0.11
Diluted $ 0.63 $ 0.26 $ 0.16 $ 0.10
Weighted average shares
outstanding:
Basic 6,334,537 5,566,281 8,478,736 5,590,587
Diluted 6,954,630 6,040,773 9,157,905 6,093,731
Condensed Balance Sheets
(amounts in thousands)
June 30, June 30,
1999 1998
Cash & cash equivalents $ 5,542 $ 5,087
Accounts receivable
and other current assets 84,617 52,791
Fixed assets, net 3,025 2,128
Other assets 53,562 54,043
---------------------
Total assets $146,746 $114,049
=====================
Current liabilities $ 61,253 $ 34,502
Long-term debt 20,500 36,418
Other liabilities 866 536
Mandatorily redeemable
cumulative preferred stock -- 29,792
Stockholders' equity 64,127 12,801
---------------------
Total liabilities
and stockholders' equity $146,746 $114,049
=====================
(1) Excludes the effect of the extraordinary, non-recurring charge
for the early extinguishment of the Company's senior subordinated
notes and cumulative preferred dividends. The senior subordinated
notes and preferred stock were redeemed in connection with the
Company's initial public offering in April 1999. Accordingly, the
extraordinary non-recurring charge and the dividends associated
with the preferred stock will not impact earnings per share in
future periods. Earnings per share including the effect of the
extraordinary non-recurring charge and preferred stock dividends
is reflected below :
Earnings before
extraordinary item $ 4,382 $ 1,425 $ 1,499 $ 619
Extraordinary, non-recurring
charge for early
extinguishment of debt,
net of income tax benefit (1,254) - (1,254) -
Preferred stock dividends (1,617) (2,043) (85) (512)
---------- ---------- ---------- ----------
Net income (loss) to common
stockholders $ 1,511 $ (618) $ 160 $ 107
===========================================
Basic earnings per common
share (1)
Earnings before
extraordinary item $ 0.69 $ 0.26 $ 0.18 $ 0.11
Extraordinary,
non-recurring charge (0.20) - (0.15) -
Preferred stock
dividends (0.25) (0.37) (0.01) (0.09)
--------------------- ---------------------
Net income (loss)
to common stockholders $ 0.24 $ (0.11) $ 0.02 $ 0.02
===================== =====================
Diluted earnings
per common share (1)
Income before
extraordinary item $ 0.63 $ 0.26 $ 0.16 $ 0.10
Extraordinary,
non-recurring charge (0.18) - (0.13) -
Preferred stock
dividends (0.23) (0.37) (0.01) (0.08)
--------------------- ---------------------
Net income (loss)
to common stockholders $ 0.22 $(0.11) $ 0.02 $ 0.02
===================== =====================
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