The Plastic Surgery Co. Reports EPS of $0.13 Per Diluted Share on Revenues of $ 29.6 Million for Fiscal Year 2000.Business Editors & Health/Medical Writers SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--April 2, 2001 The Plastic Surgery Co. (AMEX AMEX See: American Stock Exchange :PSU PSU - power supply unit ) (Web sites: www.tpsc.com and www.idealme.com), which owns and/or operates cometic com·et n. A celestial body, observed only in that part of its orbit that is relatively close to the sun, having a head consisting of a solid nucleus surrounded by a nebulous coma up to 2.4 million kilometers (1. surgery and cosmetic laser centers in key U.S. markets, today reported the financial results for the quarter ended and year ended Dec. 31, 2000. This was the company's first full year of operations. For fiscal fourth quarter 2000, The Plastic Surgery Co. reported a net loss of $300,391, or $0.07 per diluted share, on total net revenues of $7.2 million. For the full year ended Dec. 31, 2000, the company reported net income of $620,193, or $0.13 per diluted share, on revenues of $29.6 million. Calendar year 2000 is the company's first full year of operations, and there are no comparable operating results for 1999. The Plastic Surgery Co. acquires, manages and develops cosmetic surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. and cosmetic laser centers. The company operates outside of the managed care market and provides private pay, fee for service, cosmetic surgery and laser procedures along with a full offering of physician-directed skin care, all "under one roof." The company currently owns and/or operates 24 centers located 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. and has recently launched a national branding strategy in selected facilities under the name Personal Image Centers. The brand is intended to exemplify ex·em·pli·fy tr.v. ex·em·pli·fied, ex·em·pli·fy·ing, ex·em·pli·fies 1. a. To illustrate by example: exemplify an argument. b. the "one-stop-shop" approach in this unique and rapidly growing elective procedure segment of health care. With headquarters in Santa Barbara, the company completed its initial public offering on Dec. 10, 1999. The Center's menu of available procedures are all pre-paid by the patient in cash or financed through one of the many patient-financing companies that cater to this market. In this elective surgery elective surgery Surgery Any operation that can be performed with advanced planning–eg, cholecystectomy, hernia repair, colonic resection, coronary artery bypass market, the company avoids third-party pay reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. issues, insurance billing and long-term collection problems, all of which negatively impact "traditional" health care. The services offered in many of the company's Centers include: Cosmetic Surgery Cosmetic Lasers Physician-Directed Skin Care Liposuction Age Spot Removal Glycolic Peels Breast Augmentation Wrinkle Reduction Microdermabrasion Facelifts Spider Vein Removal Collagen Eyelid Surgery Hair Removal Botox Tummy Tucks Rosacea Treatments Cellulite Massage Brow Lifts Tattoo Removal Skin Care Products "The number of cosmetic procedures performed last year rose to 5.7 million," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the national statistics released in March by the American Society for Aesthetic Plastic Surgery The American Society for Aesthetic Plastic Surgery (ASAPS) is an organization devoted to the advancement of cosmetic surgery. It has approximately 2,400 members. U.S. members are certified by the American Board of Plastic Surgery. (ASAPS ASAPS American Society for Aesthetic Plastic Surgery ASAPS Advanced Surveillance Acoustic Prediction System ASAPS Active Sonar Acquisition and Processing System ). "That represents a 25% increase over 1999 and a 173% jump since 1997" as stated by the same source. The company believes that the growth in cosmetic surgery and in cosmetic laser procedures across the board can be attributed to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. cultural and demographic trends including: (i) an aging baby boomer baby boomer also ba·by-boom·er n. A member of a baby-boom generation. Noun 1. baby boomer - a member of the baby boom generation in the 1950s; "they expanded the schools for a generation of baby boomers" boomer population, (ii) cultural acceptance of cosmetic surgery, (iii) improvements in treatment technology, (iv) more affordable financing for procedures and (v) an upward trend in the number of men seeking cosmetic surgery. ASAPS reported a 23% increase in the number of procedures performed on men last year. Procedures have continued to increase dramatically in number over the last decade. According to ASAPS, from 1997 to 2000, the most popular procedures experienced significant increases: liposuction Liposuction Definition Liposuction, also known as lipoplasty or suction-assisted lipectomy, is cosmetic surgery performed to remove unwanted deposits of fat from under the skin. procedures increased 113%, breast augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. procedures increased 101% and eyelid eyelid /eye·lid/ (-lid) either of two movable folds (upper and lower) protecting the anterior surface of the eyeball. eye·lid or eye-lid n. procedures were up by 33%. The fastest-growing non-surgical procedure was Botox injections, up 1,600% over 1997, with more than 1 million treatments performed in 2000. This rate of cosmetic procedure growth is becoming common with both men and women across a broad range of ages. The company approaches this market with a strong "retail" marketing philosophy. Elective procedures are consumer driven; therefore, demand can be stimulated through retail-oriented direct-to-consumer advertising direct-to-consumer advertising Drug industry The use of mass media–eg, TV, magazines, newspapers, to publicly promote drugs, medical devices or other products which, by law, require a prescription, which targets consumers, with the intent of having a Pt . Retail marketing strategies include public seminars attended by hundreds of prospective patients as well as targeted television, radio and print ad campaigns. The company strengthened its "retail" marketing philosophy with the acquisition of the Florida Center for Cosmetic Surgery in December 2000. The Florida Center is the largest cosmetic surgery center in the state of Florida and has built its business through quality surgery and a special focus on convenience for the consumer with retail-like evening and weekend hours. The company plans to use the same marketing approach in connection with many of its other centers under the Personal Image Centers brand. In addition, the company attracts entry-level consumers seeking physician-directed skin care and non-invasive cosmetic laser treatments offered in its Personal Image Centers. These laser and skin care repeat visits strengthen brand awareness and offer the opportunity for the cross-marketing of services among patients of all ages who are interested in improving their personal image. The company's Web site, IdealMe.com, is an efficient and effective marketing channel integral to the overall direct-to-consumer approach for attracting new patients. The company believes it has created the largest before-and-after photo gallery on the Internet and has seen strong sequential growth in the numbers of new visitors to the photo gallery. The Web site is becoming increasingly effective for attracting new patients. In fact, one of the company's Centers, which fully integrated the company's Internet strategy first, has recently received as many as 30% of its new patients through Web site marketing alone. 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 news release are 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. that involve a number of risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of their dates. 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, the risks involving the continuing demand for plastic surgery procedures, the ability to successfully expand the practices of its affiliates, the ability to recruit other affiliates, the ability to secure financing for future acquisitions, the performance of the company's affiliates, the loss of the company's key personnel, the impact of competition, changes in applicable governmental regulations and the effectiveness of the company's Web sites. For a more detailed description of a discussion of risk factors, see the company's prospectus, dated Dec. 2, 1999, a copy of which can be obtained from the company.
THE PLASTIC SURGERY CO.
STATEMENTS OF OPERATIONS
(Unaudited)
For the For the
Quarter Ended Year Ended
December 31, December 31,
2000 2000
Net revenues $ 7,177,708 $29,636,981
Direct expenses:
Salaries, wages and benefits 1,932,881 7,371,629
Cost of procedures 196,268 196,268
Medical supplies 1,328,822 4,156,601
Advertising 690,435 3,518,211
Rent 683,293 2,169,039
Total direct expenses 4,831,699 17,411,748
Salaries, wages and benefits 361,573 1,549,282
General operating expenses 1,829,205 8,514,594
Depreciation and amortization 303,798 1,005,235
Total operating expenses 7,326,275 28,480,859
Income (loss) from operations (148,567) 1,156,122
Other income 13,522 29,456
Interest expense (226,034) (545,854)
Net Income before provision for income
taxes (361,079) 639,724
Provision for Income Taxes (60,688) 19,531
Net income (loss) $ (300,391) $ 620,193
Basic net income (loss) per share $ (.07) $ .14
Weighted average basic
shares outstanding 4,456,000 4,524,000
Diluted net income (loss) per share $ (.07) $ .13
Weighted average diluted
shares outstanding 4,456,000 4,666,000
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