Advanced Health Corp. Reports Record Third Quarter Results.TARRYTOWN Tarrytown (târ`ētoun), village (1990 pop. 10,739), Westchester co., SE N.Y., a residential suburb of New York City, on the E bank of the Hudson opposite Nyack; settled in the 17th cent. by the Dutch, inc. 1870. , N.Y.--(BUSINESS WIRE)--Nov. 10, 1997-- -- Earnings per share $0.21 vs. loss of ($0.20) in 3Q96; -- Net Revenues up to $16.7 million vs. $4.6 million in 3Q96; -- Net Income reaches $1.8 million versus year ago loss of $1.0 million; -- Signed Katonah Katonah, suburban residential village (1990 pop. 2,400), in Westchester co., SE N.Y., N of New York City. Katohah lies on a reservoir that is part of the Croton River system; the original village site was flooded by the reservoir's creation. Medical Group of Katonah, NY, the oldest and one of the largest medical groups in Westchester County. Advanced Health Corporation (Nasdaq:ADVH) today announced record revenues and earnings for the third quarter ended September 30, 1997. Total net revenues for the third quarter increased to $16.7 million as compared to net revenues of $4.6 million in the third quarter of 1996. Net income increased to $1.8 million, or $0.21 per share, from a loss of $1.0 million or ($0.20) per share, reported in the same period of 1996. Commenting on the results, Advanced Health's 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. , Jon Edelson, MD, stated, "We are very pleased with the results for the quarter. Revenues are up 28% and earnings are up 50% over the previous quarter. Our current strategy continues to provide value to our physicians, both through our practice management services and information technology." Management Services. ADVH signed 4 new management service agreements, and increased the number of providers under management by 54. These new agreements include Katonah Medical Group and Southeast Women's OBGYN OBGYN Obstetrics and Gynecology Health Center. The Company also signed a management agreement to facilitate the merger of the Delaware Valley The Delaware Valley is the name of the metropolitan area centered on the city of Philadelphia in the United States. The region is named for the Delaware River which flows through it. 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. Group, a 12 person cardiology practice in Philadelphia, with ADVH's existing Philadelphia-based cardiology practice client, Philadelphia Cardiology Group (PCG PCG phonocardiogram. ). This agreement further enhances the presence of the two groups in the greater Philadelphia area. As previously announced, the Company also entered into a management services agreement with the Washington Cardiology Center, PC as part of its agreement to invest in ACRM ACRM American Congress of Rehabilitation Medicine ACRM Analytical Customer Relationship Management ACRM Airborne Collection Requirements Message ACRM Asbestos Containing Roof Material ACRM Australasian Compliance Risk Management , Inc. Katonah Medical Group, the oldest and one of the largest medical groups in Westchester County, is comprised of 21 physicians. The group was first formed in 1961 and is affiliated with Northern Westchester Northern Westchester refers to the northern portion of Westchester County, New York (USA), a suburban area north of New York City. Northern Westchester County is generally a wealthier area, and it is also considerably more rural (or at least rural-looking) than its southern Hospital. Katonah is a multispecialty group focused on providing a lifecycle of care for its patient community. The partnership with ADVH will enhance the group's existing operations and will strengthen ADVH's presence in the growing Westchester, NY managed care market. "We are very impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with the strength of Advanced Health's management team," said Sheldon L. Axelrod Ax·el·rod , Julius 1912-2004. American biochemist and pharmacologist. He shared a 1970 Nobel Prize for studies of the ways in which different substances affect neural impulses. , MD, President of Katonah Medical Group. "We look forward to steamlining our operations, growing our medical group and attracting new payor payor (payer) n. The one who must make payment on a promissory note. contracts by capitalizing on Advanced Health's business expertise and promoting our own quality medical care. We are convinced that our patients will ultimately reap the benefits." Information Technology Services. During the quarter ADVH announced the acquisition of Bukstel & Halfpenny Incorporated's (B&H) proprietary laboratory and other health care information technologies business. The technologies acquired expand the company's product and service offerings, providing electronic linkages between physicians and other health care organizations. Commenting on the transaction, Rob Alger, President of Advanced Health Med-E-Systems, stated, "Not only do the B&H information tools expand and support our existing technologies by providing Med-E-Practice (MEP MEP maximum expiratory pressure. MEP, n muscle energy procedure; diagnostic and therapeutic technique. Pulsed muscle energy techniques (MET) and integrated neuromuscular inhibition technique (INIT) are two examples. ) users with access to lab information, but we now have a cross-selling opportunity to offer each company's customer base a new and complementary set of products. This has already proved to be a very successful acquisition for Advanced Health. We recently signed a number of new hospital agreements, adding to our already prestigious customer base." Corporate. Also during the quarter, the Company filed, and subsequently completed after the quarter, a secondary equity offering of 2.875 million shares of common stock at $22.25. Of the total shares sold, 2.25 million primary shares were sold by the company, generating $47.2 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). which will be used for working capital and general corporate purposes, which may include acquisitions. Advanced Health Corporation is a leading physician practice management company that vertically integrates practice and network management services with clinical information systems. Unlike other physician practice management companies, Advanced Health partners with - instead of purchases - physician group practices, thereby maintaining physicians' independence and providing the optimal incentives to achieve practice success. ADVH provides physician practice and network management and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" through its Advanced Health Management subsidiary and currently serves over 1,800 physicians. ADVH provides clinical information systems through its Advanced Health Med-E-Systems' subsidiary; these systems provide physicians with patient-specific clinical and health plan information at the point of care to improve the quality and reduce the costs of health care. -0- This press release contains forward-looking information. The 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. are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission for the year ended December 31, 1996. -0- Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : This release is also available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.advhealth.com and at http://www.noonanrusso.com. -0-
ADVANCED HEALTH CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
For the Three For the Nine
Months Ended Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
REVENUES $ 16,712 $ 4,555 $ 39,740 $ 12,172
COST OF REVENUES 12,800 3,462 30,109 9,042
Gross profit 3,912 1,093 9,631 3,130
OPERATING EXPENSES 2,253 2,011 6,438 5,851
Operating income/(loss) 1,659 (918) 3,193 (2,721)
OTHER INCOME/(EXPENSE) 199 (95) 542 (148)
Net income/(loss)
before taxes 1,858 (1,013) 3,735 (2,869)
PROVISION FOR
INCOME TAXES 92 0 158 0
Net income/(loss) 1,766 (1,013) 3,577 (2,869)
PER SHARE
INFORMATION
Net income/(loss) per share$ 0.21 ($ 0.20) $ 0.44 ($ 0.57)
Weighted average common
shares and equivalents
outstanding 8,524 4,993 8,136 4,993
-0-
ADVANCED HEALTH CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
(unaudited)
Sept. 30,
1997
ASSETS
Cash, cash equivalents and investment in
marketable securities $ 4,404
Accounts receivable 10,191
Other current assets $ 5,158
-------
Total current assets 19,753
-------
Property and equipment, net 3,024
Intangible assets 10,427
Other assets 8,167
-------
Total assets $41,371
-------
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities $ 2,273
Total shareholders' equity 39,098
-------
Total liabilities and shareholders' equity $41,371
CONTACT: Advanced Health Corporation Victoria P.L. Feder, 914/524-4204 e-mail: vfeder@advhealth.com or Noonan/Russo Communications, Inc. 212/696-4455 Jennifer Angell (investors), ext. 240 Michele Baer (media), ext. 225 e-mail: news@noonanrusso.com |
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