AmeriPath, Inc. Announces 2002 Fourth Quarter and Full Year Financial Results.Business Editors/Health/Medical Writers 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)--Feb. 25, 2003 AmeriPath, Inc. (Nasdaq:PATH), a leading national provider of cancer diagnostics, genomics, and related information services See Information Systems. , reported its financial results for the quarter and year ended December 31, 2002. All reported earnings per share amounts are on a fully 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. basis. Fourth Quarter Results, Excluding Special Charges Net revenue for the fourth quarter increased 11.5% over the same period of the prior year, from $108.9 million to $121.4 million. Same store revenue excluding national lab business increased 10%, or $9.8 million, compared to the prior year, while acquisitions completed during 2001 and 2002 provided the remaining net revenue increase. Net income for the quarter was $9.8 million, a decrease of $1.7 million, or 14.8%, over 2001 net income of $11.5 million, excluding special charges. Earnings per share for the quarter decreased 17.9% from $0.39 to $0.32. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
When a policy of general insurance is written it will typically cover a 12 month period from inception of the policy. claims (IBNR IBNR Incurred But Not Reported IBNR Interesting But Not Relevant ); b) a $3.9 million increase in SG&A including an increase of $1.2 million in sales and information technology organizations and other major increases attributed to health and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurances, legal and billing costs; c) a $2.1 million reduction in margin due to a loss of national laboratory business while we retained staff in anticipation of recapturing this volume. These cost increases were in part offset by a reduction to our bonus accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of $3.6 million. A table attached to the end of this press release shows how we calculate EBITDA. Full Year Results, Excluding Special Charges Net revenue for the year ended December 31, 2002 was $478.8 million compared to $418.7 million for the year 2001, an increase of 14.4%. EBITDA, excluding special charges, was $105.1 million for the year ended December 31, 2002, compared to $105.2 million for the year ended December 31, 2001. We estimate pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma EBITDA, assuming our 2002 acquisitions had been included in our results of operations since January 1, 2002, and other pro forma adjustments to be $110.2 million for the year ended December 31, 2002. Net income, excluding special charges, for the year ended December 31, 2002 was $49.9 million, or $1.60 per share, compared to $37.2 million, or $1.38 per share, for the year ended December 31, 2001. The fully diluted weighted average number of shares outstanding for the year ended December 31, 2002 was 31.1 million as compared to 27.0 million for 2001. 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 , excluding non-recurring payments was $69.5 million. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). were 66 at December 31, 2002 compared to 68 days at December 31, 2001. Fourth Quarter Special Charges During the fourth quarter of 2002, the Company recorded a special charge of $2.8 million related to expenses in connection with the pending Welsh Carson transaction. Results of Operations, Including Special Charges Net income, including special charges, for the quarter ended December 31, 2002 was $7.1 million, or $0.23 per share, compared to $0.07 per share, for the quarter ended December 31, 2001. Net income, including special charges, for the year ended December 31, 2002, was $44.6 million, or $1.44 per share, compared to $0.86 per share in the prior year. The Company, Welsh, Carson Anderson & Stowe and its financing sources are presently negotiating amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. commitment letters, which will reflect among other things, a revised capital structure upon completion of the transaction. CEO's Perspective "Operationally, the Company achieved many goals in the fourth quarter," commented James C. New, Chairman and Chief Executive Officer. "We continued our double-digit same store growth, expanded both our sales and I.T. organizations, and exceeded our cash objectives. We remain focused on our business while completing financing arrangements and working towards completion of our pending merger transaction with Amy Acquisition Corp., an affiliate of Welsh, Carson, Anderson and Stowe." As previously announced, the Company will broadcast its fourth quarter and year-end financial results conference call on Tuesday, February 25, 2003, at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy over the Internet. All stockholders and investors are encouraged to participate. This event is available through AmeriPath's website, located at http://www.ameripath.com/. There is no charge to access the event. AmeriPath is a leading national provider of cancer diagnostics, genomics, and related information services. The Company's extensive diagnostics infrastructure includes the Center for Advanced Diagnostics (CAD), a division of AmeriPath. CAD 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. diagnostic testing Diagnostic testing Testing performed to determine if someone is affected with a particular disease. Mentioned in: Von Willebrand Disease and information services including Fluorescence fluorescence (fl  rĕs`əns), luminescence in which light of a visible color is emitted from a substance under stimulation or excitation by light or other forms of electromagnetic In-Situ
Hybridization hybridization /hy·brid·iza·tion/ (hi?brid-i-za´shun)1. crossbreeding; the act or process of producing hybrids. 2. molecular hybridization 3. (FISH), Flow Cytometry flow cytometry (flōˑ sī·t  ˑ·m , DNA Analysis DNA analysis Any technique used to analyze genes and DNA. See Chromosome walking, DNA fingerprinting, Footprinting, In situ hybridization, Jeffries' probe, Jumping libraries, PCR, RFLP analysis, Southern blot hybridization. , Polymerase Chain
Reaction polymerase chain reaction (pŏl`ĭmərās') (PCR), laboratory process in which a particular DNA segment from a mixture of DNA chains is rapidly replicated, producing a large, readily analyzed sample of a piece of DNA; the process is (PCR PCR polymerase chain reaction. PCR abbr. polymerase chain reaction Polymerase chain reaction (PCR) , performed pursuant to an agreement with Roche Molecular Systems, Inc.), Molecular Genetics molecular genetics n. The branch of genetics that deals with hereditary transmission and variation on the molecular level. , Cytogenetics cytogenetics /cy·to·ge·net·ics/ (-je-net´iks) the branch of genetics devoted to cellular constituents concerned in heredity, i.e. chromosomes. and HPV HPV human papillomavirus. HPV abbr. human papilloma virus Human papilloma virus (HPV) Typing. Additionally, AmeriPath provides clinical trial and research development support to firms involved in developing new cancer and genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. diagnostics and therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. . The statements contained in this press release may include "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. " within the meaning 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 - which are sometimes identified by words such as "may", "should", "believe", "expect", "anticipate", "estimate" and similar expressions and which include any financial or operating estimates, forecasts or projections - are subject to a number of risks and uncertainties and completion of the Company's audit for 2002, many of which involve factors or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that are beyond the Company's control. These risks and uncertainties could cause actual results to differ materially from results anticipated by forward-looking statements. These risks and uncertainties include the possibility that the merger may not occur due to the failure of the parties to satisfy the conditions set forth therein, such as the inability of Welsh, Carson to obtain financing, the failure of AmeriPath to obtain stockholder approval or the occurrence of events that would have a material adverse effect on AmeriPath as described in the merger agreement. Additional risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's operations include: the extent of success of the Company's operating initiatives and growth strategies; ability to manage growth; access to capital on satisfactory terms; general economic conditions; terrorism or an escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. of hostilities or war; competition and changes in competitive factors; federal and state health care regulation (and compliance); reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates under government and third-party healthcare programs and the payments received under such programs; changes in coding; changes in technology; dependence upon pathologists
adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" based on management's current beliefs and expectations, and the Company undertakes no obligation to update or revise any such statements. Further information regarding risks, uncertainties and other factors that could affect the Company's financial or operating results or that could cause actual results to differ materially from those expected, estimated or anticipated are included in the Company's annual, quarterly, and other reports and filings with the SEC. 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)
Including Special Charges Excluding Special Charges
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Net revenue $121,446 $108,877 $478,818 $418,732
--------- --------- --------- ---------
Operating costs and expenses:
Cost of services 64,098 51,359 238,573 200,102
Selling, general & admin.
expense 22,326 18,381 84,868 71,856
Provision for doubtful
accounts 15,297 12,464 58,170 48,287
Amortization expense 2,912 4,802 11,389 18,659
Merger-related charges 2,836 -- 2,836 7,103
Asset impairment and
related charges -- 3,809 2,753 3,809
--------- --------- --------- ---------
Total operating costs and
expenses 107,469 90,815 398,589 349,816
--------- --------- --------- ---------
Income from operations 13,977 18,062 80,229 68,916
Write down of investment -- -- (1,000) --
Interest expense (757) (2,470) (4,016) (16,350)
Termination of interest rate
swap agreement -- (10,386) -- (10,386)
Other income (expense), net 14 75 548 145
--------- --------- --------- ---------
Income before income taxes and
extraordinary loss 13,234 5,281 75,761 42,325
Provision for income taxes 6,170 2,220 31,120 18,008
--------- --------- --------- ---------
Net income before
extraordinary loss 7,064 3,061 44,641 24,317
Extraordinary loss, net of tax
benefit -- (965) -- (965)
--------- --------- --------- ---------
Net income $7,064 $2,096 $44,641 $23,352
========= ========= ========= =========
Diluted net income per common
share $0.23 $0.07 $1.44 $0.86
========= ========= ========= =========
Weighted average common shares
outstanding 31,029 29,678 31,081 27,049
========= ========= ========= =========
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Net revenue $121,446 $108,877 $478,818 $418,732
--------- --------- --------- ---------
Operating costs and expenses:
Cost of services 64,098 51,359 238,573 200,102
Selling, general & admin.
expense 22,326 18,381 84,868 71,856
Provision for doubtful
accounts 15,297 12,464 58,170 48,287
Amortization expense 2,912 4,802 11,389 18,659
Merger-related charges -- -- -- --
Asset impairment and
related charges -- -- -- --
--------- --------- --------- ---------
Total operating costs and
expenses 104,633 87,006 393,000 338,904
--------- --------- --------- ---------
Income from operations 16,813 21,871 85,818 79,828
Write down of investment -- -- -- --
Interest expense (757) (2,470) (4,016) (16,350)
Termination of interest rate
swap agreement -- -- -- --
Other income (expense), net 14 75 295 145
--------- --------- --------- ---------
Income before income taxes and
extraordinary loss 16,070 19,476 82,097 63,623
Provision for income taxes 6,292 8,015 32,223 26,429
--------- --------- --------- ---------
Net income before
extraordinary loss 9,778 11,461 49,874 37,194
Extraordinary loss, net of tax
benefit -- -- -- --
--------- --------- --------- ---------
Net income $9,778 $11,461 $49,874 $37,194
========= ========= ========= =========
Diluted net income per common
share $0.32 $0.39 $1.60 $1.38
========= ========= ========= =========
Weighted average common shares
outstanding 31,029 29,678 31,081 27,049
========= ========= ========= =========
AmeriPath, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(In thousands)
Dec. 31, Dec. 31,
2002 2001
--------- ---------
Cash and cash equivalents $964 $4,808
Restricted cash 8,453 --
Accounts receivable, net 90,886 81,595
Inventories 1,823 1,892
Other current assets 21,982 15,758
--------- ---------
Total current assets 124,108 104,053
Property and equipment, net 26,126 24,118
Other assets 558,226 476,269
--------- ---------
Total assets $708,460 $604,440
========= =========
Total current liabilities $60,323 $47,233
--------- ---------
Revolving loan 113,190 90,000
Subordinated notes and other debt 2,630 2,853
Other liabilities 1,547 2,690
Deferred taxes 79,444 62,474
--------- ---------
Total long term liabilities 196,811 158,017
--------- ---------
Total stockholders' equity 451,326 399,190
--------- ---------
Total liabilities and stockholders' equity $708,460 $604,440
========= =========
AmeriPath, Inc.
Reconciliation of EBITDA, Excluding Special Charges
(unaudited)
(In thousands)
Three Months Ended Year ended
December 31, December 31,
2002 2001 2002 2001
-------- -------- --------- ---------
Net income $7,064 $2,096 $44,641 $23,352
Add back: Interest 757 2,470 4,016 16,350
Taxes 6,170 2,220 31,120 18,008
Depreciation and
amortization 4,845 6,603 18,992 25,260
Write down of
investment -- - 1,000 -
Extraordinary loss,
net of tax -- 965 -- 965
Termination of
interest rate swap -- 10,386 -- 10,386
Merger-related
charges 2,836 - 2,836 7,103
Asset impairment
and related
charges -- 3,809 2,753 3,809
Gain of managed
practice sale -- -- (254) --
-------- -------- --------- ---------
-------- -------- --------- ---------
EBITDA $21,672 $28,549 $105,104 $105,233
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