Response Oncology Reports Third Quarter Financial Results.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Nov. 12, 1998--Response Oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. , Inc. (Nasdaq/NMS: ROIX) today reported financial results for the third quarter and nine months ended Sept. 30, 1998. For the quarter ended Sept. 30, 1998, net revenues increased 23.9% to $31,858,000, from the $25,710,000 reported for the third quarter 1997. 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.
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. share, a 10.6% increase over the $1,045,000, or $0.09 per diluted share, reported for the third quarter 1997. The net income and earnings per share comparisons were after giving effect in the third quarter 1998 to a decrease in the amortization period of acquired intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. in physician practice affiliations. The impact of the decrease from 40 to 25 years was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $450,000 or $0.02 per share in the quarter ended Sept. 30, 1998. For comparative purposes, had this accounting estimate been used in 1997 the increase in earnings per share would have been 33%. The increase in net revenues for the quarter was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to same store growth in the physician practice management division and a large increase in the sale of pharmaceuticals to physicians who are primarily affiliated with the Company's national network of high dose chemotherapy chemotherapy (kē'mōthĕr`əpē), treatment of disease with chemicals or drugs. One chemotherapeutic approach is the development of selectively toxic substances, i.e. IMPACT centers. Revenues from the clinical trials program also contributed to the total increase in revenues, as the number of patients put on study increased 43% over the number on study in the third quarter of fiscal 1997. For the nine months ended Sept. 30, 1998, net revenues increased 24.2 % to $94,080,000 as compared with the $75,710,000 reported for the first nine months of fiscal 1997. Net income for the first nine months of fiscal 1998 increased 24% to $3,876,000, or $0.32 per diluted share, as compared with $3,125,000, or $0.27 per diluted share, reported for the first nine months of fiscal 1997. Earnings before interest, taxes, depreciation and amortization were $12,240,000, an 11.3% increase over the $10,996,000 reported for the first nine months of fiscal 1997. During the third quarter of 1998 the Company reported the opening of four new high dose chemotherapy IMPACT centers, including the first in the state of Ohio in affiliation with Case Western Reserve. The Company opened a total of eight new centers in the first nine months of fiscal 1998, which added 31 affiliating oncologists to the national network. At the end of the third quarter, Response Oncology had 53 high dose chemotherapy IMPACT centers, with over 450 affiliating physicians, in 26 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The high-dose chemotherapy high-dose chemotherapy Oncology The administration of chemotherapeutics in excess of BM toxicity; given the risk of aplastic anemia, HDC requires autologous BMT and use of 'rescue' factors such as G-CSF, GM-CSF, and erythropoietin. See Bone marrow transplantation. IMPACT center development is ahead of plan for the year. The Company also announced its first national contract with Aetna/US Healthcare to provide high dose chemotherapy with peripheral stem cell transplantation peripheral stem cell transplantation Peripheral stem cell support Oncology A method of replacing hematopoietic cells–HCs destroyed by chemotherapy; stem cells in circulating blood are removed before treatment, then readministered treatment to help BM recovery to qualifying members. This brings the Company's total number of covered lives under contract to 42 million. In September September: see month. , the Company received its first accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. by the Foundation for the Accreditation of Hematopoietic Cell Hematopoietic cells are blood-forming cells in the body. Hematopoiesis (the making of blood) occurs in myeloid and lymphatic tissues. Therapy (FAHCT FAHCT Foundation for the Accreditation of Hematopoietic Cell Therapy ). The IMPACT Center of Memphis/Baptist Cancer Center Stem Cell stem cell In living organisms, an undifferentiated cell that can produce other cells that eventually make up specialized tissues and organs. There are two major types of stem cells, embryonic and adult. Program is one of only six programs in the country to have received this accreditation. FAHCT accreditation is frequently considered by third party payers in authorizing payment for this type of transplantation transplantation /trans·plan·ta·tion/ (trans?plan-ta´shun) the grafting of tissues taken from the patient's own body or from another. in a specific facility. In commenting on these results, Dr. William West For other persons named William West, see William West (disambiguation). William West (c. 1733 – 1816) was an American militia general in the American Revolutionary War, Justice of the Rhode Island Supreme Court, Deputy Governor of Rhode Island and an anti-federalist , Chairman, said, "We are very pleased with the results and accomplishments in our third quarter. The strong positive comparisons in the quarter continue to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" strategy and reflect well on our growth in existing markets. Our credibility and leadership in the delivery of high dose chemotherapy continue to strengthen and, in turn, support the continuing development of our national network. With over 4,000 cases to date, we have the outcomes data from which to demonstrate the effectiveness of our protocols to managed care and the scientific community." Response Oncology is a leading comprehensive cancer management company that establishes and manages local cancer care networks. The Company (1) owns and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. operates a national network of high dose chemotherapy centers, or IMPACT centers, providing stem cell supported high dose chemotherapy under the direction of practicing oncologists; (2) owns the assets of and manages the business aspects of oncology practices and manages certain business aspects of oncology IPA's; and (3) conducts clinical trials for major pharmaceutical companies. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under 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 - With the exception of historical information, the matters discussed in this press release are forward looking statement that involve a number of risks and uncertainties. The actual future results of the company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed in other filings made by the Company with the Securities and Exchange Commission. -0-
RESPONSE ONCOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(Dollar amounts in thousands except for share data)
Three Months Ended
----------------------------
Sept. 30, Sept. 30,
1998 1997
------------ -----------
NET REVENUE $ 31,858 $ 25,710
COSTS AND EXPENSES
Salaries and benefits 6,291 5,541
Pharmaceuticals and supplies 16,031 12,320
Other operating costs 3,422 3,030
General and administrative 1,478 1,158
Depreciation and amortization 1,538 1,030
Interest 771 570
Provision for doubtful accounts 198 356
------------ -----------
29,729 24,005
------------ -----------
EARNINGS BEFORE INCOME TAXES
AND MINORITY INTEREST 2,129 1,705
Minority owners' share
of net earnings (264) (19)
------------ -----------
EARNINGS BEFORE INCOME TAXES 1,865 1,686
Provision for income taxes 709 641
------------ -----------
NET EARNINGS $ 1,156 $ 1,045
============ ===========
EARNINGS PER COMMON SHARE:
Basic $ 0.10 $ 0.09
============ ===========
Diluted $ 0.10 $ 0.09
============ ===========
Weighted average number
of common shares:
Basic 12,048,501 11,970,078
============ ===========
Diluted 12,087,248 12,228,231
============ ===========
RESPONSE ONCOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(Dollar amounts in thousands except for share data)
Nine Months Ended
----------------------------
Sept. 30, Sept. 30,
1998 1997
------------ -----------
NET REVENUE $ 94,080 $ 75,710
COSTS AND EXPENSES:
Salaries and benefits 18,363 15,711
Pharmaceuticals and supplies 47,428 36,041
Other operating costs 9,997 7,987
General and administrative 4,561 3,403
Depreciation and amortization 3,792 3,490
Interest 2,196 2,466
Provision for doubtful accounts 809 1,156
------------ -----------
87,146 70,254
------------ -----------
EARNINGS BEFORE INCOME TAXES
AND MINORITY INTEREST 6,934 5,456
Minority owners' share
of net earnings (682) (416)
------------ -----------
EARNINGS BEFORE INCOME TAXES 6,252 5,040
Provision for income taxes 2,376 1,915
------------ -----------
NET EARNINGS TO COMMON STOCKHOLDERS $ 3,876 $ 3,125
============ ===========
EARNINGS PER COMMON SHARE:
Basic $ 0.32 $ 0.28
============ ===========
Diluted $ 0.32 $ 0.27
============ ===========
Weighted average number of shares:
Basic 12,036,259 11,348,925
============ ===========
Diluted 12,225,657 11,538,441
============ ===========
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