Advanced Orthopedic Technologies reports record third quarter and nine month results;.WEST HEMPSTEAD West Hempstead, uninc. city (1990 pop. 17,689, including Lakeview), Nassau co., SE N.Y., on Long Island. It is chiefly residential. , N.Y.--(BUSINESS WIRE)--Nov. 7, 1996--Advanced Orthopedic Technologies, Inc. (Nasdaq Small Cap Issues: AOTI AOTI Association of Occupational Therapists of Ireland ) ("AOTI"), a leading national provider of orthotic orthotic /or·thot·ic/ (or-thot´ik) serving to protect or to restore or improve function; pertaining to the use or application of an orthosis. or·thot·ic adj. Of or relating to orthotics. and prosthetic pros·thet·ic adj. 1. Serving as or relating to a prosthesis. 2. Of or relating to prosthetics. prosthetic serving as a substitute; pertaining to prostheses or to prosthetics. ("O&P") patient care services, today announced record financial results for the third quarter and nine months ended September 30, 1996. For the three months ended September 30, 1996, sales increased 36.6% to a record $4,668,000 from $3,417,000 for the same period in 1995. 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. for the quarter rose at a much faster rate, up 73.6% to $724,000 compared to $417,000 for the comparable 1995 period. Net income for the third quarter increased 107.5% to $361,000, or $.07 per share, versus net income of $174,000, or $.04 per share, for the same period in 1995. For the nine months ended September 30, 1996, sales increased 29.0% to a record $13,123,000 from $10,176,000 for the same period in 1995. Operating income for the nine month period rose at a much faster rate, up 64.6% to $1,765,000 from $1,072,000 for the comparable 1995 period. Net income for the first nine months of 1996 increased 100.7% to $855,000, or $.17 per share, versus net income of $426,000, or $.10 per share, for the same period last year. Andrew H. Meyers, President and Chief Executive Officer of AOTI, commented, "Record sales for the three and nine month periods primarily reflect the inclusion of sales from Med-Tech O&P Services ("Med-Tech"), whose operating assets Operating Assets Another term for working capital. were acquired by AOTI in January, as well as increased patient volume. We also continue to pursue managed care agreements as an avenue of internal growth. In this regard, we have entered into a total of 106 national and/or regional specific managed care agreements." Mr. Meyers continued, "Operating margins for the 1996 three and nine month periods improved to 15.5% and 13.4%, respectively, from 12.2% and 10.5% for the comparable periods last year. Selling, general and administrative expenses as percentage of revenues for these same periods decreased to 34.3% and 36.6%, respectively, from 39.5% and 40.7% for the comparable 1995 periods. These improvements reflect higher sales and economies realized from the integration of Med-Tech into AOTI's existing New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. operations." On October 2, 1996 Advanced Orthopedic Technologies, Inc. and NovaCare, Inc. (NYSE NYSE See: New York Stock Exchange :NOV judgment notwithstanding the verdict (N.O.V.) n. reversal of a jury's verdict by the trial judge when the judge believes there was no factual basis for the verdict or it was contrary to law. The judge will then enter a different verdict as "a matter of law. ) announced a definitive agreement for the merger of AOTI with a wholly-owned subsidiary of NovaCare. Subject to approval by AOTI's shareholders, the parties anticipate closing of the merger by December 31, 1996. Advanced Orthopedic Technologies is one of the nation's leading providers of patient care services to the orthotic (design, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and fitting of custom-made braces and other devices) and prosthetic (design, fabrication and fitting of artificial limbs) rehabilitation markets. Currently, the Company operates 37 patient care centers in California, New Mexico, New Jersey, 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 , Virginia and West Virginia. This press release contains forward looking statements which involve numerous risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission. -0-
ADVANCED ORTHOPEDIC TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Sales $4,668,000 $3,417,000 $13,123,000 $10,176,000
Gross profit 2,327,000 1,767,000 6,567,000 5,210,000
Operating income 724,000 417,000 1,765,000 1,072,000
Income before
provision for
income taxes 634,000 323,000 1,508,000 788,000
Provision for income
taxes 273,000 149,000 653,000 362,000
Net income 361,000 174,000 855,000 426,000
Earnings per common
share $.07 $.04 $.17 $.10
Shares used in earnings per
common share
computation 4,911,918 4,451,125 4,911,918 4,451,125
-0-
CONTACT: Advanced Orthopedic Technologies Andrew H. Meyers, Chief Executive Officer (516) 481-9670 or INVESTOR RELATIONS Investor relations The process by which the corporation communicates with its investors. COUNSEL: The Equity Group Inc. Devin Sullivan (212) 836-9608 Robert Goldstein (212) 371-8660 |
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