Bio-Reference Laboratories announces record revenue and acquisition of dialysis testing business from SmithKline Beecham.ELMWOOD PARK Elmwood Park, village (1990 pop. 23,206), Cook co., NE Ill., a suburb of Chicago; inc. 1914. It is chiefly residential. , N.J.--(BUSINESS WIRE)--Sept. 12, 1996-- Bio-Reference Laboratories, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BRLI BRLI Bio Rad Laboratories Inc ), the largest independent clinical laboratory in 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 Tri-state area There are a number of places in the United States known as tri-state areas where three states or holdings meet at one point (a tripoint), or in proximity to each other. The two most well-known are for the New York and Chicago metropolitan areas. , announced record revenues of $8,928,529 for the quarter ended July 31, 1996, an increase of 11% over the comparable period in 1995. The Company noted a profit from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $346,118 for the quarter, compared to $341,109 for the corresponding period. The profit was prior to an extraordinary expense of $65,700 related to the Company's efforts to acquire Dianon Systems last year, so that net income for the quarter was $280,418. 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. was increased by 9% to $477,729 from $435,988 for the comparable period. The Company had revenues of $25,912,800 for the nine months ended July 31, 1996 compared to $23,395,488 for the same period in fiscal year 1995, an increase of 11% for the previous year, with net revenues of $392,940, compared to a profit of $1,089,989. The reduction of net income for the nine month period was attributable to a loss of $375,022 by the Company during the quarter ended January 31, 1996 due in large part to lower revenues as a result of the severe winter weather and record snowfalls experienced in the Company's service area during this period. Dr. Marc Grodman, President and Chief Executive Officer, stated, "Our results demonstrate continued profitability and revenue growth in a difficult market. The Company experienced an increase of 19% in the number of patients serviced during the fiscal quarter ended July 31, 1996 over the comparable period last year. The resulting increase in revenue of 11% is reflective of a 7% decrease in average revenue per patient from the comparable period. Average reimbursement per patient decreased 2% in the third quarter of 1996 as compared to the second quarter of fiscal year 1996 which ended April 30, 1996. In this changing health care environment, Bio- Reference will continue to seek out areas in the clinical laboratory marketplace, where it can demonstrate growth and profitable results. This may be achieved, on one hand, by continuing the economies of scale of our core operation and by continuing to seek out niche or specialty markets. The Company also announced the completion of Bio-Reference's purchase from SmithKline Beecham Clinical Laboratories, Inc. ("SBCL SBCL Steel Bank Common Lisp SBCL Smithkline Beecham Clinical Laboratories SBCL San Bernardino County Library SBCL Space-Based Chemical Laser SBCL Sun Binary Code License ") of certain assets, rights and associated goodwill including the Customer List related to SBCL's operation its Renal Dialysis Testing Business. SBCL agreed to a three-year non-compete with regard to performing renal dialysis clinical laboratory testing services for renal dialysis centers or other entities which provide diagnosis and/or treatment to dialysis patients. The Company estimates that $3 million to $4 million in annual revenues could be generated by this acquisition. Dr. Grodman continued, "Prior to the purchase, Bio-Reference had identified dialysis testing as a potential area of growth and had experienced success in this area through our newly organized business unit, Rental Reference Laboratory. With the completion of the SmithKline Beecham transaction, we believe the Company can make a meaningful impact on this sector of the clinical laboratory market and create synergies with our existing operations. After this acquisition, Bio-Reference will be providing dialysis testing services in 17 states throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Bio-References Laboratories, Inc. is a highly automated computer-driven clinical laboratory serving specialty markets in the New York/Tri state metropolitan area. The Company performs highly sophisticated testing procedures in addition to high-volume routine testing in clinical chemistry, special chemistry, endocrinology, serology Serology The division of biological science concerned with antigen-antibody reactions in serum. It properly encompasses any of these reactions, but is often used in a limited sense to denote laboratory diagnostic tests, especially for syphilis. , diagnostic immunology Diagnostic immunology is a collective term for a variety of diagnostic techniques that rely on the specificity of the bond between antibodies and antigenes. Diagnostic immunology is well-suited for the detection of even the smallest of amounts of (bio)chemical substances. , microbiology, rheumatology rheumatology /rheu·ma·tol·o·gy/ (-tol´ah-je) the branch of medicine dealing with rheumatic disorders, their causes, pathology, diagnosis, treatment, etc. rheu·ma·tol·o·gy n. parasitology Parasitology The scientific study of parasites and of parasitism. Parasitism is a subdivision of symbiosis and is defined as an intimate association between an organism (parasite) and another, larger species of organism (host) upon which the parasite is , cellular immunology, radioimmunoassay, hematology, immuno-hematology, 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. , anatomic pathology and urinalysis urinalysis (y  r'ənăl`ĭsĭs), clinical examination of urine for the purpose of medical diagnosis. .SmithKline Beecham Clinical Laboratories is a unit of SmithKline Beecham -- one of the world's leading health care companies. The Company discovers, develops, manufactures and markets pharmaceuticals,. vaccines, over-the-counter medicines and health-related consumer products, and provides health care services including clinical laboratory testing, disease management and pharmaceutical benefit management. The Company's common stock is traded on the Nasdaq Small Cap system under the symbol "BRLI"; its Class A Warrants are traded under the symbol "BRLIW" and its Class B Warrants are traded under the symbol "BRLIZ." -0-
Bio-Reference Laboratories, Inc.
Statements of Operations
(unaudited)
Three Months Ended July 31, Nine Months Ended July 31,
1996 1995 1996 1995
Net revenues $ 8,928,529 $ 8,062,709 $ 25,912,800 $ 23,395,488 Cost of services 4,619,630 3,898,024 13,469,723 11,094,668
Gross profit on
revenues $ 4,308,899 $ 4,164,685 $ 12,443,077 $ 12,300,820
General and administrative 3,831,170 3,728,697 11,632,014 10,959,653 Operating income $ 477,729 $ 435,988 $ 811,063 $ 1,341,167 Other expense, net 131,611 94,879 369,622 251,178 Net income before taxes $ 346,118 $ 341,109 $ 441,441 $ 1,089,989 Provision for income taxes -- -- 48,501 -- Net income before extraordinary item $ 346,118 $ 341,109 $ 392,940 $ 1,089,989
Extraordinary
item (65,700) -- (65,700) --
Net income after extraordinary item $ 280,418 $ 341,109 $ 327,240 $ 1,089,989 Net income per share before extraordinary item $ 0.06 $ 0.05 $ 0.06 $ 0.18 Net income per share after extraordinary item $ 0.05 $ 0.05 $ 0.05 $ 0.18 Weighted average number of shares outstanding $ 6,094,259 $ 6,068,848 $ 6,093,205 $ 5,990,791 CONTACT: Bio-Reference Laboratories, Elmwood Park Marc Grodman, M.D., 201/791-2600 or Mallory Factor Mallory Factor is Chairman of the Free Enterprise Fund ("FEF") and is often called "The George Soros of the right" by people who don't mean it as a compliment. FEF has listed five "take action" campaigns on their website (https://www.myfef.org/bin/action.center.election). Inc., New York Steven Gaynes or Gary Denmark, 212/242-0000 |
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