Printer Friendly

DAMON CORPORATION ANNOUNCES THIRD QUARTER RESULTS

 DAMON CORPORATION ANNOUNCES THIRD QUARTER RESULTS
 NEEDHAM HEIGHTS, Mass., Nov. 9 /PRNewswire/ -- Damon Corporation


(NYSE: DCL) announced today net income per common share of $.32 for its third quarter ended Sept. 30, 1992, as compared to a net loss per common share of $(.37) for its 1991 third quarter. Net income applicable to common stockholders for its third quarter was $5,141,000 as compared to a net loss applicable to common stockholders of $(2,574,000) in the 1991 third quarter.
 Sales for the 1992 third quarter rose 20.0 percent to $80,041,000 as compared to $66,705,000 for the 1991 third quarter. Third quarter operating cash flow, or earnings before depreciation, amortization, interest, net other income, and taxes, and after minority interests (EBDIT), increased 25.8 percent to $12,804,000 from $10,175,000 in the comparable 1991 quarter.
 For the nine months ended Sept. 30, 1992, sales rose 18.5 percent to $230,669,000 from the comparable 1991 period, and EBDIT increased 21.3 percent to $38,622,000. Net income applicable to common stockholders for the 1992 nine months was $16,297,000 or $1.03 per common share compared to a net loss applicable to common stockholders of $(6,808,000) or $(1.20) per common share for the same period last year. Net results for the 1992 nine months include $729,000 of net other income, as compared with $2,059,000 in the comparable 1991 period.
 Robert L. Rosen, Damon's chairman of the board and chief executive officer, stated, "Damon continued to realize strong sales, EBDIT, and EPS growth. Sales growth for the third quarter and the first nine months of 1992 was primarily derived from internal growth and supplemented by non-dilutive acquisitions. Damon continues to actively pursue acquisitions of clinical laboratories of varying sizes."
 Mr. Rosen continued, "Since the second quarter ended June 30, 1992, Damon has expanded its market position in two important regions of the country through two acquisitions. We acquired Preferred Laboratory with $18 million in annualized sales, which serves Michigan and northern Ohio. Because the acquisition of Preferred occurred on Aug. 1, 1992, its results are not fully reflected in the 1992 third quarter. Additionally, on Oct. 1, 1992, we acquired substantially all of the assets of Med-Chek Laboratories with $20 million in annualized sales, which serves western Pennsylvania, eastern Ohio, and West Virginia. As a result of this acquisition, Damon now operates 13 regional laboratories.
 "The gross margins for the nine months ended Sept. 30, 1992 and 1991, were 38.8 percent and 38.9 percent, respectively. The gross margin for the 1992 third quarter was 37.7 percent compared with 38.3 percent in the 1991 third quarter. Gross margins for both the three and nine months ended Sept. 30, 1992, were adversely affected by expenses associated with the inclusion of the results of Preferred, whose gross margin was, as expected, initially lower than Damon's operations. Consolidation benefits now occurring are expected to increase Preferred's gross margin. Gross margins in 1992 for both the three and nine months were also affected by expenses associated with the opening of a greater number of patient service centers. If the expenses associated with Preferred's results and the opening of additional patient service centers were excluded, the gross margins for both the three and nine months ended Sept. 30, 1992, would have exceeded the gross margins for the comparable 1991 periods," Mr. Rosen stated.
 Damon Corporation is a leader in the rapidly growing clinical laboratory testing industry, operating 12 regional laboratories throughout the United States and one in Mexico. A full range of routine and esoteric testing services provided by Damon are used in the diagnosis, monitoring and treatment of disease. Damon delivers the highest quality testing and customized client services to physicians, hospitals, managed care organizations, nursing homes, corporations, and the U.S. government.
 DAMON CORPORATION
 Summary Consolidated Statements of Operations
 (Unaudited; in thousands, except per share amounts)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Sales $80,041 $66,705 $230,669 $194,720
 Gross profit 30,138 25,531 89,597 75,762
 Selling, general and
 administrative expenses 16,284 14,646 47,521 42,299
 Amortization of goodwill 1,443 1,328 4,168 4,017
 Provision for doubtful
 accounts 2,190 1,560 6,060 4,435
 Interest expense, net 2,216 7,081 7,549 21,823
 Other (inc.) expense, net 27 19 (729) (2,059)
 Income before provision for
 taxes and minority interests 7,978 897 25,028 5,247
 Provision for income taxes 1,852 328 5,359 1,919
 Net income before minority
 interests 6,126 569 19,669 3,328
 Minority interests 985 953 3,372 2,348
 Net income (loss) 5,141 (384) 16,297 980
 Preferred dividends
 and accretion -- 2,190 -- 7,788
 Net inc. (loss) applicable to
 common stockholders $ 5,141 $(2,574) $ 16,297 $ (6,808)
 Net inc. (loss) per common
 share $0.32 $(0.37) $1.03 $(1.20)
 Weighted average common
 shares outstanding 16,129 6,935 15,787 5,652
 Other data:
 Income before provision for
 taxes and minority interests $ 7,978 $ 897 $ 25,028 $ 5,247
 Depreciation and amortization 3,568 3,131 10,146 9,178
 Interest expense, net 2,216 7,081 7,549 21,823
 Other (income) expense, net 27 19 (729) (2,059)
 Minority interests (985) (953) (3,372) (2,348)
 EBDIT $12,804 $10,175 $ 38,622 $ 31,841
 -0- 11/9/92
 /CONTACT: David C. Asheim, vice president - investor relations of Damon, 617-449-0800/
 (DCL) CO: Damon Corporation ST: Massachusetts IN: HEA SU: ERN


GK-LR -- NY039 -- 8661 11/09/92 11:27 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 9, 1992
Words:955
Previous Article:DURAKON ANNOUNCES THIRD QUARTER 1992 OPERATING RESULTS
Next Article:NYTEST ENVIRONMENTAL REPORTS THIRD QUARTER/9 MONTHS RESULTS; THIRD QUARTER NET INCOME RISES 38 PERCENT ON 21 PERCENT REVENUE GAIN
Topics:


Related Articles
DAMON ANNOUNCES IMPROVED FIRST-QUARTER OPERATING RESULTS
DAMON CORPORATION FILES COMMON STOCK OFFERING
DAMON UNDERWRITERS EXERCISE OVERALLOTMENT OPTION
DAMON ANNOUNCES FOURTH QUARTER AND CALENDAR YEAR END RESULTS
DAMON ANNOUNCES STRONG FIRST QUARTER OPERATING RESULTS
DAMON TO PAY SEMI-ANNUAL CASH DIVIDEND
DAMON ANNOUNCES SECOND QUARTER OPERATING RESULTS AND MICHIGAN LABORATORY ACQUISITION
DAMON CORPORATION ANNOUNCES 1992 FOURTH QUARTER AND YEAR-END RESULTS IN LINE WITH PREVIOUSLY RELEASED ESTIMATES
DAMON CORPORATION ANNOUNCES 1993 FIRST QUARTER RESULTS
DAMON POSTPONES ANNUAL MEETING

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters