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ALLIED CLINICAL ANNOUNCES RECORD EARNINGS IN THE FIRST QUARTER OF 1993

 NASHVILLE, Tenn., April 20 /PRNewswire/ -- Allied Clinical Laboratories, Inc. (NASDAQ: ACLB) announced today continued improved results in the first quarter ended March 31.
 Net revenues for the first quarter of 1993 totaled $34,798,000 vs. $34,885,000 in the first quarter of 1992. As previously reported, the company sold its Southern California core business during the third quarter of 1992. Therefore, the first quarter of 1992 includes approximately $3,889,000 of revenue from its former Southern California operations. On a pro forma adjusted basis, net revenues grew by 12 percent in the first quarter of 1993.
 Net income for the first quarter of 1993 increased to $2,552,000, or $0.31 per share. This compares to net income for the first quarter of 1992 of $2,355,000, or $0.28 per share. This represents an increase of 8 percent for net income, and for earnings per share this represents an increase of 11 percent.
 Commenting on the first quarter's results, Haywood D. Cochrane Jr., Allied's president and chief executive officer, stated: "We are pleased that the first quarter of 1993 generated the largest amount of net income ever in the company's history, as well as our largest margin of operating earnings, despite a meaningful negative impact on revenues and earnings due to severe weather we encountered in two of our regions in the month of March. Our net income of $2,552,000 exceeded the previous quarterly high net income of $2,498,000 in the second quarter of 1992 and our operating income percentage of 13 percent also exceeded the previous high in that same quarter of 12.4 percent.
 "We knew that the first quarter comparison this year would be a difficult one because of our strong performance in the first quarter of 1992 in both revenue and earnings growth, principally because of a significant contribution in that prior year's quarter from the acquisition of Doctors Clinical Laboratory, our most successful stand- alone regional acquisition to date. The first quarter of 1992 also included a significantly larger contribution of revenues and earnings from our fold-in acquisition program compared to the first quarter of 1993. We are pleased to note that currently there is substantially increased activity in the fold-in acquisition program after a lull which began near the middle of last year.
 "Because of the above acquisitions' impact, and because of the divestiture of our Southern California operations, this quarter's revenue comparisons were difficult. We are pleased with the solid level of internal growth in our core business despite continuing competitive and pricing pressures within our industry. We also believe that we are seeing slightly lower testing utilization in some of our market segments in anticipation of healthcare reform and the potential impact of a larger emphasis on managed competition.
 "On a specific basis, the severe snow storm that bogged down much of the Southeast in mid-March cost our company between $0.01 and $0.02 per share in the quarter. Second, two of our units experienced some revenue and earnings shortfall against our internal expectations due to a larger level of lost business than budgeted. On the positive side, we saw continued improvement and a growth in earnings in our Texas region as well as strong contributions from our Florida and Arizona regions.
 "Finally, negotiations to acquire Sierra Nevada Laboratories, headquartered in Reno, Nevada, are continuing and have reached their final stages. Although these negotiations have taken much longer than we had anticipated, the remainder of this year's results will benefit from this transaction, which we expect to close before May 1."
 Allied provides testing services to physicians, hospitals, clinics and other health care providers through a national network of 10 regional laboratories, one of which services as a reference laboratory and one of which services as an anatomical testing laboratory. The company supports its regional laboratories through over 180 other services sites. Through its Contract Management Services Division, the company has contracted with approximately 60 hospitals and three multi- specialty networks to provide a variety of management services for their on-site laboratories, including both clinical and anatomical testing as well as pathology consultation and laboratory direction.
 The company's common shares are traded in the Over-the-Counter National Market System under the NASDAQ symbol ACLB.
 ALLIED CLINICAL LABORATORIES, INC.
 Summarized Financial Information
 (Unaudited)
 Quarter ended March 31 1993 1992
 Net revenues $34,798,000 $34,885,000
 Income before income taxes 4,184,000 3,861,000
 Provision for income taxes 1,632,000 1,506,000
 Net income $ 2,552,000 $ 2,355,000
 Earnings per share(a) $0.31 $0.28
 (a) Earnings per share are based on 8,334,677 shares outstanding for the first quarter of 1993 and 8,407,035 shares outstanding for the first quarter of 1992, on an "as if" basis. The numbers include adjustments for the impact of the company's Stock Option Plan, Employee Stock Purchase Plan and shares issued in connection with an acquisition during the fourth quarter of 1992.
 Condensed Consolidated Income Statements
 (In thousands, except per share data)
 Quarterly Information
 3 mos. ended March 31 1993 1992
 Net revenues $34,798 $34,885
 Operating costs:
 Salaries, wages and benefits 10,573 10,634
 Supplies 5,626 5,609
 Depreciation and amortization 1,409 1,251
 Other operating costs 5,569 6,099
 Total operating costs 23,177 23,953
 Selling, general and admin. expenses 7,112 7,087
 Operating income 4,509 4,205
 Interest expense/(income), net 325 344
 Income before provision for income taxes 4,184 3,861
 Provision for income taxes 1,632 1,506
 Net income $ 2,552 $ 2,355
 Earnings per share $0.31 $0.28
 Weighted average shares outstanding 8,335 8,407
 -0- 4/20/93
 /CONTACT: Haywood D. Cochrane Jr., president and chief executive officer, or Gerard M. Hayden Jr., senior vice president and chief financial officer of Allied Clinical Laboratories, 615-320-2283/
 (ACLB)


CO: Allied Clinical Laboratories, Inc. ST: Tennessee IN: MTC SU: ERN

BR-BN -- AT017 -- 8264 04/20/93 16:20 EDT
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Date:Apr 20, 1993
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