AmeriPath, Inc. Announces 2005 First Quarter Financial Results.PALM BEACH GARDENS, Fla. -- AmeriPath, Inc. ("AmeriPath" or the "Company"), a leading national provider of cancer diagnostics, genomics, and related information services See Information Systems. , reported its financial results for the first quarter ended March 31, 2005. Net revenues for the first quarter of 2005 increased 6.4% to $133.9 million from $125.8 million in the first quarter of 2004. Same store net revenues for the first quarter of 2005 increased 2.7%, or $3.4 million, when compared to the first quarter of 2004. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (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.
Costs of services for the first quarter of 2005 increased to $73.5 million (54.9% of net revenues) from $66.7 million (53.0% of net revenues) in the first quarter of 2004. The increases in costs of services as a percentage of net revenues are primarily due to increases in physician compensation both from adjustments to existing contracts and from additional physicians added in select specialties, and from increased courier A monospaced typeface originating from the typewriter that is commonly used for letters. It is still considered by many to be the "appropriate" typeface for business correspondence. and distribution costs distribution costs distribute npl → Vertriebskosten pl associated with the increased revenues from physicians' offices. Selling, general and administrative expenses for the first quarter of 2005 were $25.2 million (18.8% of net revenues) compared to $24.3 million (19.3% of net revenues) in the first quarter of 2004. Selling, general and administrative expenses for the first quarter of 2004 included severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when of $1.4 million for the Company's former Chief Executive Officer. The increases in the first quarter of 2005 are primarily due to increased investments in information technology and sales and marketing. The provision for doubtful accounts for the first quarter of 2005 was $17.6 million (13.2% of net revenues) compared to $17.4 million (13.8% of net revenues) in the first quarter of 2004. Net income for the first quarter of 2005 was $1.8 million compared to a net loss of $0.3 million for the same quarter of 2004. More detailed information regarding the business, operations and financial performance of the Company through March 31, 2005, and related and other matters will be included in the Company's Form 10-Q Form 10-Q See 10-Q. for the three months ended March 31, 2005, which is expected to be filed with the SEC on May 13, 2005. The Company will broadcast its first quarter financial results via conference call on Thursday, May 12, 2005, at 4:30 p.m. Eastern Time. All bondholders are encouraged to participate. This event is available through the Company's website, http://www.ameripath.com. Listeners should go to the website at least fifteen minutes before the call to register, download, and install any necessary audio software. For those unable to attend the live broadcast, a replay of the webcast will be available for the next 2 months on our website. There is no charge to access the event. A replay of the call will also be available by telephone beginning at 5:30 pm, May 12th to 11:00 pm, May 16th. The dial-in number for the telephone replay is 888-567-0407, Pass Code #2137. 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) ), 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, many of which involve factors or circumstances 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 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 healthcare 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
(In thousands)
(Unaudited)
Three Months Ended
March 31,
----------------------
2005 2004
---------- ----------
Net revenues $ 133,880 $ 125,800
Operating costs and expenses:
Costs of services 73,500 66,693
Selling, general & administrative 25,190 24,272
Provision for doubtful accounts 17,636 17,353
Amortization expense 2,794 2,814
Asset impairment and related charges -- 586
---------- ----------
Total operating costs and expenses $ 119,120 $ 111,718
---------- ----------
Income from operations 14,760 14,082
Interest expense (11,739) (11,146)
Change in value of derivative (620) --
Gain on sale of managed practice 454 --
Write-off of deferred financing costs -- (3,488)
Other income, net 104 70
---------- ----------
Income (loss) before income taxes 2,959 (482)
Provision (benefit) for income taxes 1,200 (178)
---------- ----------
Net income (loss) $ 1,759 $ (304)
========== ==========
AmeriPath, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, Dec. 31,
2005 2004
---------- ----------
Cash and cash equivalents $ 16,172 $ 20,980
Restricted cash 17,804 17,940
Accounts receivable, net 85,110 76,567
Inventories 2,379 2,335
Deferred tax asset, net 13,345 13,345
Other current assets 4,436 4,823
---------- ----------
Total current assets 139,246 135,990
Property and equipment, net 34,207 30,964
Other assets 801,211 797,355
---------- ----------
Total assets $ 974,664 $ 964,309
========== ==========
Total current liabilities $ 70,933 $ 65,922
---------- ----------
Long-term debt 488,014 495,171
Other liabilities 32,890 29,220
Deferred tax liabilities, net 15,904 15,904
---------- ----------
Total long-term liabilities 536,808 540,295
---------- ----------
Total stockholder's equity 366,923 358,092
---------- ----------
Total liabilities and stockholder's
equity $ 974,664 $ 964,309
========== ==========
AmeriPath, Inc.
Reconciliation of Net Income to EBITDA (Unaudited)
(In thousands)
Three Months Ended
March 31,
----------------------
2005 2004
---------- ----------
Net income (loss) $ 1,759 $ (304)
Add Back: Interest 11,739 11,146
Taxes (benefit) 1,200 (178)
Depreciation and amortization 5,293 5,024
---------- ----------
EBITDA(1) 19,991 15,688
---------- ----------
Plus: Asset impairment and related charges -- 586
Gain on sale of managed practice (454)
Change in value of derivative 620 --
Severance costs -- 1,400
Write-off of deferred financing costs -- 3,488
---------- ----------
EBITDA (excluding asset impairment
and related charges, gain on sale of
managed practice, change in value of
derivative, severance costs, and
write-off of deferred financing
costs) $ 20,157 $ 21,162
========== ==========
(1) EBITDA represents earnings before interest, taxes, depreciation
and amortization. EBITDA, a non-GAAP financial measure, is
presented herein because management believes it is a widely
accepted financial indicator of the ability to incur and service
debt. Our presentation of EBITDA is intended to supplement, and
not replace, our presentation of net income or other GAAP
measures. Our calculation of EBITDA may not be comparable to
similarly titled measures reported by other companies.
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