Capstone Pharmacy Services Announces First Quarter Results; Company reports revenue of $69 million and net income of $2.5 million for the first quarter ended March 31, 1997.IRVING, Texas--(BUSINESS WIRE)--May 8, 1997--(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 :DOSE) CAPSTONE PHARMACY pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. SERVICES, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. ., a leading provider of institutional pharmacy services to long-term care facilities long-term care facility n. See skilled nursing facility. and correctional institutions Noun 1. correctional institution - a penal institution maintained by the government detention camp, detention home, detention house, house of detention - an institution where juvenile offenders can be held temporarily (usually under the supervision of a juvenile 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. , today announced results for the first quarter ended March 31, 1996. The company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter increased 213 percent to $69,023,558 as compared to $22,027,865 for the same period last year. Sales for the first quarter include the acquisition of Clinical Care and Algers Health Services health services Managed care The benefits covered under a health contract for the entire period. 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 first quarter increased 734 percent to $5,050,716 or 7.0 percent of net revenues compared to $605,949 or 3.0 percent of net revenues for the same period in 1996. Net income for the first quarter was $2,454,075 or $0.07 per share compared to $286,289 or $0.02 per share for the same period last year. The Company's weighted average outstanding shares have increased to 36,915,693 from 16,692,186 for the first quarter of 1996. R. Dirk Allison, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We are happy to announce that our results for the first quarter continue to meet the objectives that we have set for ourselves. Our recent results help to establish a strong base for our pending merger with PCA (tool, programming) PCA - A dynamic analyser from DEC giving information on run-time performance and code use. ." Mr. Allison continued, "Capstone will soon be the largest company operating in the institutional pharmacy sector. We fully intend to continue the positive earnings growth that we have shown over the past two years." Following are highlights for the first quarter: Gross Margin Improvement. The Company's gross margin improved to 43.9 percent in the first quarter compared to 42.5 percent in the Company's fourth quarter. This improvement is due to the renegotiated purchasing agreements entered into by the Company as well as its higher percentage of specialty services. Update of Acquisition Activity. During the first quarter, Capstone completed four acquisitions. In January 1997, Capstone closed on two acquisitions: Clinical Care in California with revenues of approximately $30.0 million and Algers Health Services based in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden having revenues of approximately $8.5 million. In March, the Company completed two additional acquisitions: Emerald Drugs in Pennsylvania with revenues of approximately $12.0 million and Pharmacare in Virginia having revenues of approximately $5.0 million. Implementation of Preferred Provider Service. During the first quarter, the Company added over 2,700 PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia beds. To help in servicing these beds, Capstone added new pharmacies in Atlanta, GA and Springfield, IL. Merger with PCA, the pharmacy division of Beverly Enterprises. During the first quarter, the company announced the pending merger with PCA, the institutional pharmacy division of Beverly Enterprises. Together, the companies 1997 revenues would exceed $900 million placing Capstone as the largest institutional pharmacy company in the US. The pending merger is expected to be completed by the fourth quarter of 1997. Today, Capstone is one of the nation's largest independent institutional pharmacy companies providing services to long-term care facilities with approximately 120,000 beds in 16 states. It is also the largest provider of pharmacy services to correctional facilities in the United States serving approximately 110,000 inmates. Capstone's common stock is traded on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (National Market) under the DOSE symbol. This release involves forward looking statements with respect to acquisition prospects, development of preferred provider relationships and other plans and expectations on the part of the Company. The accuracy of these statements involve a number of risks and uncertainties, including but not limited to, the availability of acquisition prospects and financing for such prospects, changing economic and market conditions that would impact such prospects or financing related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , changes in governmental reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. regulations and laws which could impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. or hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. the entering into strategic alliances or preferred provider agreements, as well as other risk factors detailed in the Company's Securities and Exchange Commission filings, to which recipient of this release are referred for additional information concerning the Company and its prospects. -0-
CAPSTONE PHARMACY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
Three Months Ended
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03/31/97 03/31/96
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Net revenues $69,023,558 $22,027,865
Cost of sales 38,690,339 13,575,576
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Gross profit 30,333,219 8,452,299
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Operating expenses:
Selling, general and
administrative expenses 22,925,269 7,277,293
Depreciation and
amortization 2,357,234 569,057
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Total operating expenses 25,282,503 7,846,350
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Income from operations 5,050,716 605,949
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Non-operating expenses
(income): Interest expense,
net 1,155,359 263,188
Other income (expense), net -- 46,528
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Total non-operating expense
(income), net 1,155,359 216,660
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Income from operations
before income taxes 3,895,357 389,289
Provision for income taxes 1,441,282 103,000
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Net income 2,454,075 286,289
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Earnings per share data:
Primary:
Continued operations $ 0.07 $ 0.02
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New income $ 0.07 $ 0.02
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Fully diluted:
Continued operations $ 0.07 $ 0.02
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New income $ 0.07 $ 0.02
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Weighted average number of common shares
outstanding:
Primary 36,683,917 16,592,126
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Fully diluted 36,915,693 16,692,186
-0- CONTACT: Capstone Pharmacy Services, Inc. Dirk Allison, 972/401-1541 or Capstone Pharmacy Services, Inc. Jim Shelton, 972/401-1541 or Capstone Pharmacy Services, Inc. Morris Perlis, 416/866-3193 |
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