UroCor Announces Fourth Quarter and Year-End 2000 Results; Company Reports Over $52 Million in Annual Revenues; With 4th Quarter Revenues Exceeding $15 Million.Business/Health & Medical Editors OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 27, 2001 UroCor, 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 :UCOR UCOR Uniform Code of Operating Rules ) a leading provider of diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. for the management and treatment of urological diseases, announced its year-end 2000 and fourth quarter results today. Total revenues for 2000 were $52.6 million, a 15% increase over 1999 revenues of $45.5 million. Revenue from core diagnostic and related businesses totaled $51.0 million for 2000, increasing approximately 18% from $43.0 million in 1999. Total therapeutic revenue of $1.6 million in 2000, derived from sales of ProstaSeed I-125 sources for brachytherapy brachytherapy /brachy·ther·a·py/ (-ther´ah-pe) treatment with ionizing radiation whose source is applied to the surface of the body or within the body a short distance from the area being treated. and PACIS PACIS Pacific Asia Conference on Information Systems BCG BCG bacille Calmette-Guérin. BCG abbr. 1. bacillus Calmette-Guérin 2. ballistocardiogram BCG, n.pr See bacille Calmette-Guórin. for bladder cancer bladder cancer Malignant tumour of the bladder. The most significant risk factor associated with bladder cancer is smoking. Exposure to chemicals called arylamines, which are used in the leather, rubber, printing, and textiles industries, is another risk factor. , represented a 36% decrease from 1999 therapeutic revenues of $2.5 million, all of which were attributable to a product distribution agreement that terminated at year-end 1999. During the fourth quarter 2000, the Company also recorded special charges of $9.8 million related to its previously announced tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement with the United States Department of Justice “Justice Department” redirects here. For other uses, see Department of Justice. The United States Department of Justice (DOJ) is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States (DOJ (Department Of Justice) The legal arm of the U.S. government that represents the public interest of the United States. It is headed by the Attorney General. ). Fourth Quarter 2000 Total revenues for the fourth quarter 2000 were $15.2 million, compared with $10.9 million in 1999, a 39% increase. The Company recorded an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $8.3 million in 2000 as a result of the $9.8 million in special charges from the tentative DOJ settlement, compared with an operating loss of $381,000 in 1999. Net loss for the fourth quarter 2000 was $6.4 million, compared with a net loss of $13,000 for 1999. Net loss per share was $0.65 in fourth quarter 2000, compared with $0.00 in 1999. Excluding special charges in 2000 related to the tentative DOJ settlement, fourth quarter 2000 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. would have been $1.5 million and net income $1.1 million or $0.10 per share. Also during the fourth quarter 2000, specimen SPECIMEN. A sample; a part of something by which the other may be known. 2. The act of congress of July 4, 1836, section 6, requires the inventor or discoverer of an invention or discovery to accompany his petition and specification for a patent with specimens volume decreased to 84,000 compared with 100,000 cases in 1999. Full Year 2000 For the year 2000, loss per share was $0.50, compared with $0.41 in 1999, an increase of 22%. Specimen volume decreased 14% to 350,000 from 405,000 in 1999, while UroCor's client base ended the year 2000 at 2,425, a 9% decrease from 2,650 in 1999. Total revenue was $52.6 million, up 15% from $45.5 million in 1999. The Company recorded an operating loss of $6.2 million, compared with a loss of $7.2 million in 1999. Net earnings reflected a loss of $4.9 million in 2000, compared with $4.1 million in 1999. Operating loss and net loss for 2000 included special charges of $9.8 million related to the tentative DOJ settlement. Excluding special charges, operating income would have been $3.6 million and net income $2.7 million, or $0.27 per share in 2000. Operating loss and net loss in 1999 included special charges of $7.4 million 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). and additional provisions for bad debts. Excluding special charges, operating income would have been $136,000 and net income $633,000, or $0.06 per share in 1999. 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. Michael George Comments "I am pleased that our year-end results reflect the culmination of the trends we began in the beginning of 2000. Each quarter has shown increased revenue growth over the previous quarter, ending with a new milestone of over $52 million in annual revenues. Our management team set high goals at the beginning of the year, most of which were achieved. Based upon our early results in 2001, we anticipate these positive trends will continue throughout the remainder of the year. Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler "Revenue from our core diagnostics business achieved a new peak in 2000 by exceeding $50 million, while 4th quarter 2000 revenues in this area were our highest ever at approximately $14.5 million. One of our key objectives was to increase the revenue per urologist Urologist A physician who deals with the study and treatment of disorders of the urinary tract in women and the urogenital system in men. Mentioned in: Congenital Bladder Anomalies, Lithotripsy, Men's Health, Overactive Bladder urologist , which we accomplished through strong sales and marketing efforts. Our sales force focused heavily on our "big three" products - prostate prostate /pros·tate/ (pros´tat) a gland surrounding the bladder neck and urethra in the male; it contributes a secretion to the semen.prostat´ic pros·tate n. The prostate gland. adj. histology histology (hĭstŏl`əjē), study of the groups of specialized cells called tissues that are found in most multicellular plants and animals. , bladder bladder /blad·der/ (blad´er) 1. a membranous sac, such as one serving as receptacle for a secretion. 2. urinary bladder. 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. , and kidney tests, providing both higher revenues and higher margins. Some analysts have estimated the prostate histology market to be in excess of $250 million, and expected to exceed $700 million within two to three years. Our sales force emphasis, in addition to reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. and price increases, were prime factors in our revenue growth. Additionally, the Company as a whole has been diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d in aggressively managing costs towards increasing profitability. Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. "As previously reported, several events occurred in the therapeutics area throughout the year. We received two new approvals and successfully launched PACIS BCG for bladder cancer and ProstaSeed I-125 sources for brachytherapy. Regarding ProstaSeed brachytherapy sources, we are very pleased with the sales efforts of one of our marketing partners, Prostate Services of America (PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. ). Our other marketing partner, Mallinckrodt, was recently acquired by TYCO TYCO Thank You Captain Obvious , resulting in slower sales efforts. "In addition, we acquired Mills Biopharmaceuticals (MBI MBI Management Buy-In MBI Moody Bible Institute MBI Mathematical Biosciences Institute MBI Modular Building Institute MBI Mechanical Breakdown Insurance MBI Molecular Biology Institute MBI Maslach Burnout Inventory (psychometrics) ) in April 2000, which we believe will lead to additional research opportunities. Dr. Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. Mills, President of MBI, is currently working on the development of other brachytherapy sources we hope to bring to the market in the future. We continue to be patient in our strategic approach to the brachytherapy market. "Our initial launch of PACIS BCG was very successful, exceeding our early internal projections. Unfortunately, our manufacturing partner, BioChem Pharma, was unable to meet our supply demands, resulting in the termination of our agreement. As we previously announced on February 16, 2001, BioChem Pharma paid UroCor $7.0 million, resulting in an after tax gain of approximately $0.24 to $0.26 per share, which will be reported in the first quarter of 2001. The early success of this type of product - a direct sale to the urologist - again proves our sales force can be highly successful in selling diagnostics and therapeutics. We continue to work diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d at identifying additional opportunities in the therapeutics arena." Sr. V.P and CFO See Chief Financial Officer. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. C. Hayden Comments "As we have stated previously, our goals during 2000 included increasing our revenue per urologist and average unit price per specimen in order to improve both gross and operating income margins. Our average revenue per urologist for the year 2000 increased to approximately $20,000 from $16,000, a 25% increase, while our fourth quarter 2000 revenue per urologist was approximately $5,900, compared with $3,900 in 1999, a 51% increase. Average unit price per specimen for the full year 2000 was $144, compared with $104 in 1999, a 38% increase; our fourth quarter 2000 average unit price was $162, compared with $103 in 1999, a 57% increase. Driven by pricing and product line mix, we are increasing our margins and bottom line with these results. Our gross margin on diagnostics for the full year 2000 was 66.3%, a 13% increase over 58.4% gross margin in 1999. For the fourth quarter 2000, our gross margin was 70.3%, a 19% increase over 59.2% achieved in the fourth quarter 1999. "For the second consecutive year, we finished with positive cashflow from operations. Cashflow from operations was approximately $7.5 million, compared with positive cashflow of $4.9 million in 1999. Our days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO's) continued to remain low, as we completed 2000 at 77 DSO's, compared with 90 at year end 1999." Michael W. George Additional Comments "In 2000, we reduced our overall net expenditures in research and development activities by over 50% compared with previous years due to more focus on potential commercialization of our research discoveries. We had nine patents issued or allowed in 2000, bringing our total to 40 patents on novel genes or expressed sequence tags An expressed sequence tag or EST is a short sub-sequence of a transcribed spliced nucleotide sequence (either protein-coding or not). They may be used to identify gene transcripts, and are instrumental in gene discovery and gene sequence determination. in the field of prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. and other urologic diseases. These actions in 2000 included patents allowed or issued related to prostate predictive and progression capabilities for possible new tests, biomarkers and genes. Additional opportunities relate to biomarkers for breast and bladder diseases. "We believe our patent library will allow us and our scientific partners to continue providing better ways for physicians to detect and treat a variety of urological diseases, including cancer. More particularly, we hope these discoveries lead to transactions similar to the Immunex agreement reached earlier in July 2000. "It is UroCor's mission to remain on the leading edge of urological health. In addition to our intellectual property generated through research and development, we continue to build our databases in prostate and kidney diseases Kidney Disease Definition Kidney disease is a general term for any damage that reduces the functioning of the kidney. Kidney disease is also called renal disease. . Our prostate database has now exceeded over 260,000 cases, while our kidney stones Kidney Stones Definition Kidney stones are solid accumulations of material that form in the tubal system of the kidney. Kidney stones cause problems when they block the flow of urine through or out of the kidney. database has reached approximately 50,000. This type of data is very valuable internally as we seek to improve our detection capability, as well as increasing external value. We also believe this data can be instrumental in the integration of diagnostics and therapeutics." Other Matters "As previously announced on February 16, 2001, the Company has reached a tentative settlement related to an ongoing investigation by the DOJ. In addition to the proposed $8.5 million refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies by the Company to various Federal and State programs, we also incurred and accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. additional costs of approximately $1.3 million related to these matters," Mr. George stated. "We now look forward to moving ahead and focusing all of our resources on our short and long-term objectives. We have also made strong efforts internally in our compliance function, as we seek to be an industry leader in regulatory adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence . "Overall, I believe our performance in 2000 is indicative of what UroCor can achieve. The Company made difficult decisions during the past two years, such as eliminating certain revenue programs and streamlining operations, in addition to headcount reductions. We intend to continue to manage our business diligently as we continue to enhance shareholder value," Mr. George concluded. About UroCor UroCor markets directly to Urologists and managed care organizations a comprehensive range of integrated products and services to assist in detecting, diagnosing, treating and managing prostate cancer, bladder cancer, kidney stones and other complex urologic disorders urologic disorder Any condition affecting the kidneys, often understood to be of the collecting tubules and southward. Cf Kidney disease. . The Company's primary focus is helping Urologists improve patient care and outcomes while reducing the total cost of managing these diseases. The Company presently serves approximately one-third of the office-based Urologists in 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. . Statements in this news release that are not strictly historical, including statements as to plans, objectives and future financial performance, are "forward-looking" statements that are made pursuant to the 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. provisions of 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. Although UroCor believes that the expectations reflected in such 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. are reasonable, it can give no assurance that the expectations will prove to be correct. Factors that could cause actual results to differ materially from UroCor's expectations include, among others, competition within the healthcare and medical services industries; the effects of government regulation and reimbursement policies on the healthcare market and the Company, including the possibility of being deemed not to be in compliance with federal or state regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. ; the Company's access to and the market's acceptance of new diagnostic and therapeutic products; the Company's ability to market and distribute diagnostic and therapeutic products profitably; the Company's ability to maintain or expand contractual relationships with managed care organizations; the Company's ability to acquire or develop and implement appropriate management information systems; as well as the risks, uncertainties and other factors described from time to time in the Company's periodic filings with the Securities and Exchange Commission. UroCor's 4th Quarter Conference Call The information below is provided to allow you to listen to UroCor's 4th Quarter Conference Call by management of the company.
Date: February 28, 2001
Time: 10:00 a.m. CDT
Toll Free Domestic Dial In Number: 1-877-679-9055
International Dial In Number: 1-952-556-2808
Replay thru March 2, 2001 - 11:59 p.m. EDT
Toll Free Domestic Replay: 1-800-615-3210
International Replay: 1-703-326-3020
Passcode: 4998106
Internet access is also available at www.urocor.com
on the investor relations page to listen live, and
will be available for replay for 90 days.
Visit the UroCor website @ www.urocor.com
UROCOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2000 1999
--------------- -------------
ASSETS
Cash and marketable investments $ 12,492 $ 11,054
Accounts receivable, net 12,477 11,033
Property and equipment, net 10,038 8,868
Intangible and other assets, net 4,959 3,897
Goodwill, net 3,859 -
Deferred tax asset, net 6,118 5,660
Prepaid expenses 565 824
Laboratory supplies, at average cost 473 616
Inventory 309 210
-------------- -------------
Total assets $ 51,290 $ 42,162
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $ 3,284 $ 3,458
Other accrued liabilities 10,594 163
Obligations under capital lease 250 8
Accrued compensation 857 402
Long-term debt 769 -
Deferred Compensation 470 257
------------- -------------
Total liabilities 16,224 4,288
------------- -------------
Common stock 110 108
Treasury stock (5,397) (7,175)
Additional paid-in capital 59,537 59,265
Accumulated deficit (19,184) (14,324)
------------- -------------
Stockholders' equity 35,066 37,874
------------- -------------
Total liabilities and
stockholders' equity $ 51,290 $ 42,162
============= =============
UROCOR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended December 31,
2000 1999
------ ------
(Unaudited) (Unaudited)
REVENUE $ 15,233 100.0% $ 10,925 100.0%
OPERATING EXPENSES:
Direct cost of services
and products 5,512 36.2% 4,423 40.5%
Selling, general and
administrative expenses 7,925 52.0% 6,525 59.7%
Research and development 294 1.9% 358 3.3%
Special charges 9,790 64.3% - -
--------- ---------
Total operating expenses 23,521 154.4% 11,306 103.5%
--------- ---------
Loss from operations (8,288) (54.4%) (381) (3.5%)
OTHER INCOME (EXPENSE):
Interest, net 203 1.3% 174 1.6%
Other 16 0.1% 48 0.4%
--------- ---------
Total other income (expense) 219 1.4% 222 2.0%
--------- ---------
Net loss before income taxes (8,069) (53.0%) (159) (1.5%)
Income tax benefit 1,653 10.9% 146 1.4%
--------- ---------
NET LOSS $ (6,416) (42.1%) $ (13) (0.1%)
========= =========
PER COMMON AND COMMON
EQUIVALENT SHARE:
Basic:
Net Loss Per Common Share $ (.65) $ .00
========= =========
Weighted Average Common and
Common Equivalent Shares
Outstanding 9,811 9,458
========= =========
Dilutive:
Net Loss Per Common Share
Assuming Dilution $ (.65) $ .00
========= =========
Weighted Average Common and
Common Equivalent Shares
Outstanding - Assuming
Dilution (a) 9,811 9,458
========= =========
(a) The otherwise dilutive impact of stock options and warrants is
excluded from the computation of Net Loss per Share Assuming
Dilution for the three and twelve month periods ended December 31,
2000 and for the three and twelve month periods ended December 31,
1999 because such impact is anti-dilutive in the period of a net
loss.
UROCOR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Year Ended December 31,
2000 1999
------ ----
REVENUE $ 52,622 100.0% $ 45,508 100.0%
OPERATING EXPENSES:
Direct cost of services
and products 19,826 37.7% 18,650 41.0%
Selling, general and
administrative expenses 27,790 52.8% 25,113 55.2%
Research and development 1,370 2.6% 1,609 3.5%
Special charges 9,790 18.6% 7,410 16.3%
--------- ---------
Total operating expenses 58,776 111.7% 52,782 116.0%
--------- ---------
Loss from operations (6,154) (11.7%) (7,274) (16.0%)
OTHER INCOME (EXPENSE):
Interest, net 672 1.3% 852 1.9%
Other 3 0.0% 2 (0.0%)
--------- ---------
Total other income (expense) 675 1.3% 854 1.9%
--------- ---------
Net loss before income taxes (5,479) (10.4%) (6,420) (14.1%)
Income tax benefit 620 1.2% 2,311 5.1%
--------- ---------
NET LOSS $ (4,859) (9.2%) $ (4,109) (9.0%)
========= =========
PER COMMON AND COMMON
EQUIVALENT SHARE:
Basic:
Net Loss Per Common Share $ (.50) $ (.41)
========= =========
Weighted Average Common and
Common Equivalent Shares
Outstanding 9,690 10,077
========= =========
Dilutive:
Net Loss Per Common Share
Assuming Dilution $ (.50) $ (.41)
========= =========
Weighted Average Common and
Common Equivalent Shares
Outstanding - Assuming
Dilution (a) 9,690 10,077
========= =========
(a) The otherwise dilutive impact of stock options and warrants is
excluded from the computation of Net Loss per Share Assuming
Dilution for the three and twelve month periods ended December 31,
2000 and for the three and twelve month periods ended December 31,
1999 because such impact is anti-dilutive in the period of a net
loss.
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