Capstone Pharmacy Services Announces Fourth Quarter and Year End Results.IRVING Irving, city (1990 pop. 155,037), Dallas co., N Tex., a suburb of Dallas; inc. as a city 1952. Building supplies, chemicals, electronic equipment, and airplane parts are manufactured in Irving. , TEXAS--(BUSINESS WIRE)--March 3, 1997--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 (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) Company Reports Revenue of $54.2 million and Net Income of $5.7 million for the Fourth Quarter Ended December December: see month. 31, 1996 CAPSTONE PHARMACY 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. . (Nasdaq National Market - DOSE), 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 fourth quarter and the twelve month period ended December 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 fourth quarter and twelve month period of $54,235,943 and $144,397,836, respectively as compared to $16,618,612 and $55,894,479 for the same period last year. Sales for the twelve month period include the acquisition of Symphony symphony [Gr.,=sounding together], a sonata for orchestra. The Italian operatic overture, called sinfonia, was standardized by Alessandro Scarlatti at the end of the 17th cent. Pharmacy for five months. 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 fourth quarter and twelve month period was $3,608,216 and $7,640,078, respectively, when adjusted for the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the amount of $2,825,000 related to the acquisition of Symphony Pharmacy and a charge of $246,446 related to the cost of closing a pharmacy as part of a consolidation plan. Net income for the fourth quarter and twelve month period was $5,682,010 or $0.16 per share and $3,125,420 or $0.14 per share respectively compared to the $418,334 or $0.03 per share and a loss of $2,841,048 or $(0.25) per share for the same periods last year. Last years results have been restated to take into account the change in the Company's fiscal year from February February: see month. 28 to December 31. Results for the twelve months of 1996 include charges of $239,961 associated with the early retirement of debt as a result of the Company's new $125 million credit facility; $2,825,000 related to restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses associated with the Symphony acquisition and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Company's corporate offices from Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. to Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. ; and $4,573,530 for acquisition financing fees and expenses associated with the Symphony transaction. In addition, the twelve months of 1996 included a tax benefit of $5,120,857. 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 very pleased that our results for the fourth quarter met the objectives that we set. During our recent equity offering we shared our goals with our shareholders. Our recent results continue to show that the strategic plan we have developed at Capstone has made us a leader in our industry." Mr. Allison continued, "1996 has been a great beginning for our Company's new direction. Not only have we successfully acquired and integrated six acquisitions with over $190 million in revenues but we have also begun the process of servicing facilities associated with our preferred provider agreements. We added over 2,600 of these beds in the fourth quarter and currently have a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of over 33,000 beds to bring on service." Following are highlights for the fourth quarter: Gross Margin Improvement. The Company's gross margin improved to 42.5 percent in the fourth quarter compared to 42.0 percent in the Company's third quarter. This improvement is mainly due to the renegotiated purchasing agreements entered into by the Company. Completion of New Purchasing Agreements. The Company completed negotiations with McKesson Corporation on a new purchasing agreement meeting the targets which the Company established for price reductions. The full effect of this reduction will be felt by the end of the first quarter of 1997 when all sites will be online with this purchasing agreement. In addition, final agreement was reached with MHA MHA microangiopathic hemolytic anemia. to be the Company's prime Group Purchasing Organization A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. thereby continuing to reduce the cost of goods purchased. Integration of Symphony Acquisition. The integration of this large acquisition is proceeding as planned. The Company has integrated Symphony's financial, accounting and human resource activities into its corporate office eliminating redundant overhead. The consolidation of pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major is proceeding as expected. In addition, senior management that joined through this acquisition has proven to be a great asset for Capstone. This Symphony management addition has significantly strengthened the Company's management team. Update of Acquisition Activity. During the fourth quarter, Capstone closed two additional acquisitions. The Company purchased the institutional pharmacy business of Happy Harry's Happy Harry's, a Walgreens Pharmacy, is a division of the Walgreens Company which operates 76 locations in Delaware, Pennsylvania, Maryland and New Jersey. It was founded in 1962 by entrepreneur Harry Levin. which is based in Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . In addition, the Company purchased Institutional Pharmacy based in Parsons, Tennessee Parsons is a city in Decatur County, Tennessee, United States. The population was 2,452 at the 2000 census. Geography Parsons is located at (35.648780, -88.123386)GR1. . In January 1997, Capstone closed on two additional acquisitions: Clinical Care in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). with revenues of approximately $30.0 million and Alger Health Services health services Managed care The benefits covered under a health contract 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. Implementation of Preferred Provider Service. During the fourth quarter, the Company added over 2,600 PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia beds. The positive financial effect of these additions will begin during the quarter following implementation. Capstone also has new pharmacies in Atlanta, GA and Springfield, IL which will come on line in the first quarter of 1997 allowing additional PPA beds to be brought into service. New Credit Facility. In December of 1996 the Company obtained a commitment of $125 million related to a line of credit with a bank group led by Bankers Trust The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. It was originally set up when banks could not perform trust company services. . 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 15 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 STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
------------------
12/31/96 12/31/95
-------- --------
Net sales $54,235,943 $16,618,612
Cost of sales 31,162,436 10,374,662
----------- -----------
Gross profit 23,073,507 6,243,950
----------- -----------
Operating expenses:
Selling, general and
administrative expenses 17,490,624 5,575,115
Depreciation and amortization 1,974,667 352,658
Costs related to pharmacy
closure - -
Restructuring charges - 240,000
----------- -----------
Total operating expenses 19,465,291 6,167,773
----------- -----------
Operating income from
continuing operations
before income taxes,
discontinued operations
and extraordinary items 3,608,216 76,177
----------- -----------
Non-operating expenses (income):
Interest expense, net 572,698 10,882
Acquisition financing fees
and expenses - -
Other (income) expense, net 97,128 87,085
----------- -----------
Total non-operating expense
(income), net 669,826 97,967
----------- -----------
Income (loss) from continuing
operations before income taxes,
discontinued operations and
extraordinary items 2,938,390 (21,790)
Provision (benefit) for income
taxes (2,983,581) (226,882)
----------- -----------
Income (loss) from continuing
operations before
discontinued operations and
extraordinary items 5,921,971 205,092
----------- -----------
Discontinued operations:
Gain (loss) from operations
of discontinued business
segment - 213,242
(Loss) on disposal of business
segment, net - -
----------- -----------
Net income (loss) before
extraordinary items 5,921,971 418,334
Extraordinary item:
Extinguishment of debt, net
of tax 239,961 -
Discount on repayment of
vendor debt - -
----------- -----------
Net income (loss) $5,682,010 $ 418,334
----------- -----------
----------- -----------
Twelve Months Ended
-------------------
(Unaudited)
-----------
12/31/96 12/31/95(1)
----------- -----------
Net sales $144,397,836 $55,894,479
Cost of sales 85,531,996 35,181,783
----------- -----------
Gross profit 58,865,840 20,712,696
----------- -----------
Operating expenses:
Selling, general and
administrative expenses 46,591,975 20,124,740
Depreciation and amortization 4,633,787 1,307,144
Costs related to pharmacy
closure 246,446 -
Restructuring charges 2,825,000 2,303,630
----------- -----------
Total operating expenses 54,297,208 23,735,514
----------- -----------
Operating income from
continuing operations
before income taxes,
discontinued operations
and extraordinary items 4,568,632 (3,022,818)
----------- -----------
Non-operating expenses (income):
Interest expense, net 1,899,784 722,304
Acquisition financing fees
and expenses 4,573,530 -
Other (income) expense, net (149,206) (359,896)
----------- -----------
Total non-operating expense
(income), net 6,324,108 362,408
----------- -----------
Income (loss) from continuing
operations before income taxes,
discontinued operations and
extraordinary items (1,755,476) (3,385,226)
Provision (benefit) for income
taxes (5,120,857) (345,427)
----------- -----------
Income (loss) from continuing
operations before
discontinued operations and
extraordinary items 3,365,381 (3,039,799)
----------- -----------
Discontinued operations:
Gain (loss) from operations
of discontinued business
segment - (59,386)
(Loss) on disposal of business
segment, net - (25,227)
----------- -----------
Net income (loss) before
extraordinary items 3,365,381 (3,124,412)
Extraordinary item:
Extinguishment of debt, net
of tax 239,961 -
Discount on repayment of
vendor debt - 283,364
----------- -----------
Net income (loss) $ 3,125,420 $(2,841,048)
----------- -----------
----------- -----------
(Unaudited)
Three Months Ended
------------------
12/31/96 12/31/95
----------- -----------
Earnings per share data:
Primary:
Continuing operations $ 0.17 $ 0.01
Discontinued operations - 0.02
Extraordinary item (0.01) -
----------- -----------
Net income (loss) $ 0.16 $ 0.03
----------- -----------
----------- -----------
Fully diluted:
Continuing operations $ 0.17 $ 0.01
Discontinued operations - 0.02
Extraordinary item (0.01) -
----------- -----------
Net income (loss) $ 0.16 $ 0.03
----------- -----------
----------- -----------
Weighted average number of
common shares outstanding:
Primary 34,051,745 14,844,097
Fully diluted 34,288,101 15,474,877
Twelve Months Ended
-------------------
(Unaudited)
-----------
12/31/96 12/31/95(1)
----------- -----------
Earnings per share data:
Primary:
Continuing operations $ 0.15 $ (0.27)
Discontinued operations - (0.01)
Extraordinary item (0.01) 0.03
----------- -----------
Net income (loss) $ 0.14 $ (0.25)
----------- -----------
----------- -----------
Fully diluted:
Continuing operations $ 0.14 $ (0.27)
Discontinued operations - (0.01)
Extraordinary item (0.01) 0.03
----------- -----------
Net income (loss) $ 0.13 $ (0.25)
----------- -----------
----------- -----------
Weighted average number of
common shares outstanding:
Primary 22,916,764 11,337,997
Fully diluted 23,214,767 11,337,997
(1) Reflects the actual audited results of operations for the
ten months ended December 31, 1995 plus the results of operations
for January and February, 1995.
CONTACT: Capstone Pharmacy Services Dirk Allison, 972/ 401-1541 IRDEPT@COUNSELCORP.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. (E-mail) or Capstone Pharmacy Services Jim Shelton, 972/ 401-1541 IRDEPT@COUNSELCORP.COM (E-mail) or Capstone Pharmacy Services Morris Perlis, 416/ 866-3193 IRDEPT@COUNSELCORP.COM (E-mail) |
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