AmeriPath, Inc. Announces 2000 First Quarter Results.Business Editors RIVIERA BEACH Riviera Beach (rəvēr`ə), resort city (1990 pop. 27,639), Palm Beach co., SE Fla., on Lake Worth (a lagoon); inc. 1922. Research and development firms are located in the growing city. , Fla.--(BUSINESS WIRE)--May 2, 2000 - Net Revenue and Net Income Up 30% and 16%, Respectively - AmeriPath, Inc. (Nasdaq:PATH), the largest physician and laboratory company focused on providing anatomic anatomic /ana·tom·ic/ (an?ah-tom´ik) anatomical. Anatomic Related to the physical structure of an organ or organism. pathology pathology, study of the cause of disease and the modifications in cellular function and changes in cellular structure produced in any cell, organ, or part of the body by disease. diagnostic and healthcare information services See Information Systems. , today reported its results for the quarter ended March 31, 2000. Net revenue for the first quarter increased 30% over the same period of the prior year, from $52.3 million to $68.2 million. Acquisitions completed during 1999 accounted for two-thirds of the increase, or $10.7 million. Internal or same practice revenue growth accounted for the remaining one-third, or $5.2 million. This increase was driven by a 7.4% increase in outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. revenue and a 2.5% increase in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. from Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. . The 30% quarter over quarter revenue increase resulted from a 28% unit growth in biopsies diagnosed (approximately 640,000 in 1Q00 as compared to 500,000 in 1Q99), and a 50% unit increase in cytology cytology (sītŏl`əjē), in biology, the study of the structure of all normal and abnormal components of cells and the changes, movements, and transformations of such components. interpretations (approximately 450,000 Pap smears Pap smear or Papanicolaou smear Sample of cells from the vagina and cervix of the uterus for laboratory staining and examination to detect genital herpes and early-stage cancer, especially of the cervix. Developed by the Greek-born U.S. in 1Q00 versus 300,000 in 1Q99). Net income for the first quarter of 2000 was $6.1 million, an increase of $850,000, or 16%, over the same period in 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter increased to $0.28 from $0.24 for the first quarter of 1999, based on 22.1 million and 21.6 million weighted average shares outstanding, respectively. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the first quarter of 2000 was $12.7 million, or $0.58 per share. For the first quarter, the Company's gross margin was 51.9% compared to 54.6% for the same quarter in 1999. The decline in gross margin was attributable to four factors: increased physician compensation; increase in lower margin national clinical lab business; and developmental activities at the 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 lab and the Center for Advanced Diagnostics (CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ). The Company is continuing its development work in New York with net revenue reaching a $4 million annual revenue run rate after only nine months of operations. In addition, CAD is scheduled to move into its new 10,000 square foot facility in Orlando at the end of the second quarter 2000, where a wide array of esoteric testing esoteric test Lab medicine The analysis of 'rare' substances or molecules that are not performed in a routine clinical lab. See DORA. services will be offered. Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. (SG&A) for the first quarter was 15.7% of net revenue, a decrease from 16.8% in the first quarter of 1999. Approximately 40% of SG&A costs relate to billing and collection. Billing and collection costs increased 37% from the first quarter of 1999 as payment under a number of billing contracts are a function of collected revenue, and the Company continues to invest in upgrading its billing and collection systems and processes. These investments are directed at improving cash collections and the aggregation of billing information and utilization data. Largely as a result of focusing on these improvements, the Company reported a reduction in the provision for doubtful accounts from 11.4% of net revenue for the first quarter of 1999 to 10.4% for the first quarter of 2000. Non-operating costs, principally amortization and interest expense, increased approximately 51% from the same period in the prior year. The increase in amortization expense of $1.0 million or 38% is attributable to an increase in the average intangible balance and a reduction of the weighted average amortization periods from 32 to 31 years. Interest expense increased $1.4 million, or 71%, from the first quarter of 1999. The increase is due to the increase in the average revolving loan balance outstanding. In addition, the effective interest rate on the revolving loan increased from 6.2% to 7.9%. The increase in rates reflects the renegotiation and increase in the Company's credit facility in the fourth quarter of 1999, which increased the borrowing rate 75 basis points, and the general rise in interest rates during the past two quarters, which effects the floating rate under the credit facility. James C. New, Chairman, President, and Chief Executive Officer of AmeriPath commented, "The first quarter results demonstrate our continued ability to deliver strong internal growth. The 10% increase in internal revenue growth comes from our focus on building new markets such as New York and CAD, and continuing to increase our sales and marketing efforts. For 2000, we anticipate adding up to five sales people to the 24 currently in the field. The field sales staff will focus on growing existing dermatopathology revenue by marketing our nationally prominent team of dermatopathology experts. In addition, as a natural complement to CAD, our sales and marketing team will target the urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. and gastroenterology gastroenterology Medical specialty dealing with digestion and the digestive system. In the 17th century Jan Baptista van Helmont conducted the first scientific studies in the field; William Beaumont published his own observations in 1833. markets as a potential source of new revenues." Mr. New further commented, "The Company is committed to transitioning from multiple billing and lab information systems to common platforms, enabling it to leverage it's extensive inventory of diagnostic information. I am very excited to report that our initial entree in healthcare diagnostic information will be the introduction of our web-based PathWay Solutions(TM). This product will be introduced during our second quarter and will provide utilization and outcome data to our referring physicians, hospitals, patients and payors. I believe these initiatives will increase our competitive advantage and shape the future for AmeriPath." The Company will broadcast its first quarter financial results conference call on Tuesday, May 2, 2000 at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT over the Internet. This event is available through Investor Broadcast Network's Vcall website, located at http://www.vcall.com. Listeners should go to the website at least fifteen minutes before the event to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those unable to attend the live broadcast, a replay will be available for the next 90 days. There is no charge to access the event. A replay of the call will also be available by telephone beginning at 12:00 p.m. May 2 to 12:00 p.m. May 3. The dial-in number is 800-633-8284, reservation no. 14370742. AmeriPath, Inc. is the nation's largest physician and laboratory company focused on providing anatomic pathology diagnostic and healthcare information services to physicians, hospitals, national clinical laboratories and managed care organizations. The company presently operates in 13 states and employs 302 physicians that provide medical services through outpatient pathology laboratories, hospital inpatient inpatient /in·pa·tient/ (in´pa-shent) a patient who comes to a hospital or other health care facility for diagnosis or treatment that requires an overnight stay. in·pa·tient n. laboratories and outpatient surgery Outpatient Surgery, also referred to as ambulatory surgery or same-day surgery, is surgery that does not require an overnight hospital stay. The term “outpatient” arises from the fact that surgery patients may go home do not need an overnight hospital centers. This release contains certain 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. regarding AmeriPath, including its operations and prospects. Past performance is not necessarily indicative of future results. In addition, AmeriPath's actual results could differ materially from the results anticipated in these forward-looking statements as a result of uncertainties, including risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc demand, pricing, government regulation, payments and reimbursements, dependence upon contracts and pathologists
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 at http://www.ameripath.com
AmeriPath, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
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2000 1999
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Net revenue $ 68,174 $ 52,336
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Operating costs and expenses:
Cost of services 32,784 23,747
Selling, general & admin. expense 10,703 8,785
Provision for doubtful accounts 7,066 5,963
Amortization expense 3,701 2,684
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Total operating costs and expenses 54,254 41,179
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Income from operations 13,920 11,157
Interest expense (3,289) (1,922)
Other income, net 45 6
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Income before income taxes 10,676 9,241
Provision for income taxes 4,559 3,974
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Net income $ 6,117 $ 5,267
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Diluted net income per share $ 0.28 $ 0.24
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Diluted weighted average shares 22,122 21,610
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AmeriPath, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
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(unaudited)
Cash and cash equivalents $ 356 $ 620
Accounts receivable, net 47,893 45,969
Inventories 384 482
Other current assets 7,063 7,144
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Total current assets 55,696 54,215
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Property and equipment, net 14,685 14,129
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Other assets 390,867 381,802
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Total assets $461,248 $450,146
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Total current liabilities $ 23,107 $ 19,047
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Revolving loan 164,000 163,300
Subordinated notes 493 777
Deferred taxes 63,388 62,980
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Total long term liabilities 227,881 227,057
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Total stockholders' equity 210,260 204,042
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Total liabilities and
stockholders' equity $461,248 $450,146
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