Printer Friendly

PHYSICIANS CLINICAL LABORATORY INC. ANNOUNCES FISCAL 1994 THIRD-QUARTER AND NINE-MONTH RESULTS

Company Subsequently Completes Three California Laboratory Purchases
 SACRAMENTO, Calif., Jan. 10 /PRNewswire/ -- Physicians Clinical Laboratory Inc. (NASDAQ-NMS: PCLI) today announced operating results for the fiscal 1994 third quarter and nine months ended Nov. 30, 1993.
 The company also reported that subsequent to the close of the third quarter, it purchased three California independent clinical laboratories for $6.3 million in cash and notes. The company stated that it expects the recent purchases to have a favorable impact on fourth quarter revenues.
 Net income for the third fiscal quarter was $375,720 compared with $1,061,939 in the corresponding period last year. Earnings per share, based on 22 percent more shares outstanding, were $.06 vs. $.21. Net revenue rose to $16,534,969 from $11,230,773 in the same period one year ago. Operating income totaled $1,512,788 compared with $2,108,819 a year earlier.
 For the current nine-month period, net income increased to $3,036,773 on revenue of $50,767,316. This compares with net income of $2,733,453 on revenue of $28,443,421 in the corresponding period last year. Earnings per share, based on 34 percent more shares outstanding, were $.49 vs. $.59 in the prior year.
 Nathan L. Headley, the company's president and chief executive, said that the decline in third quarter earnings was primarily attributable to a shortfall in revenue growth resulting from the unanticipated delay in the completion of the three aforementioned acquisitions. Additionally, the company incurred a substantial increase in net interest expense -- totaling approximately $.05 per share -- related to the $40 million convertible subordinated debenture offering last August.
 Headley commented, "The proceeds of the debenture offering provide the capital to continue to participate in the consolidation of the clinical laboratory industry via acquisition. The infrastructure for anticipated acquisitions was kept in place; the one quarter delay in completing these laboratory purchases adversely impacted third quarter results."
 Operating costs were in line with budget even after expenses related to consolidating the Santa Barbara regional laboratory into the Los Angeles facility. This project was successfully completed in the third quarter and should produce significant economies in the future.
 "The three laboratory purchases announced today mark the resumption of our acquisition program," Headley stated. "The transactions we have closed in December and January have revenues that fulfill our acquisition objectives for the second half of fiscal 1994. Furthermore, we are currently evaluating a number of additional acquisition opportunities in California, and our sales force is adding net new sales at the rate of approximately $10 million per year."
 The most recent acquisitions include Pathology Medical Group of Pomona, Calif., with annual revenues of $2.3 million, and Los Angeles- based Quantum Clinical Laboratory, with annual revenues of $2.8 million. These two laboratories strengthen the company's base in the highly fragmented Southern California market. The third purchase, for the assets of Samaritan Family Practice located in San Jose, Calif., with annual revenues of $500,000, complements PCL's existing Bay Area service network. The most recent transactions bring to 11 the total number of laboratories acquired by the company during fiscal 1994.
 "These three recent acquisitions should all begin to contribute to increased processing volumes and operating results in the fourth quarter," said Headley.
 PCL also announced that it has signed a service agreement with the Northern California region of Pacific Physicians Services Inc., a leading prepaid health care management company with over 200,000 subscribers in 15 health maintenance organizations.
 "Our agreement with Pacific Physicians Services is indicative of our commitment to growth in a managed-care world and the emphasis placed on cost containment and quality service," stated Headley. "Our record of success with HMOs is significant, and we'll continue to develop long- term mutually beneficial relationships."
 Physicians Clinical Laboratory Inc. is the third-largest provider of medical testing services in California. The company operates regional laboratories in Sacramento, Fresno, Calif., and Los Angeles, which are augmented by 13 STAT laboratories and 110 patient service centers.
 PHYSICIANS CLINICAL LABORATORY INC.
 Condensed Statements of Operations (Unaudited)
 For the Three and Nine Months Ended Nov. 30, 1993 and 1992
 Three Months Ended Nine Months Ended
 Nov. 30, Nov. 30,
 1993 1992 1993 1992
 Net revenue $16,534,969 $11,230,773 $50,767,316 $28,443,421
 Direct laboratory
 costs 5,567,320 3,734,032 16,540,524 9,556,557
 Gross profit 10,967,649 7,496,741 34,226,792 18,886,864
 Laboratory
 support costs 3,430,168 2,085,892 10,004,526 4,995,074
 Laboratory profit 7,537,481 5,410,849 24,222,266 13,891,790
 Overhead expense 6,024,693 3,302,030 17,306,824 8,068,302
 Operating income 1,512,788 2,108,819 6,915,442 5,823,488
 Interest expense
 and other 886,588 338,921 1,854,153 835,345
 Income tax provision 250,480 707,959 2,024,516 2,254,690
 Net income $375,720 $1,061,939 $3,036,773 $2,733,453
 Net income per
 common share $0.06 $0.21 $0.49 $0.59
 Weighted average
 common shares
 outstanding 6,239,000 5,145,000 6,242,000 4,638,000
 -0- 1/10/94
 /CONTACT: Pete Raffetto, Physicians Clinical Laboratory, 916-325-2018; or Jerry Freisleben, Freisleben & Co., 818-986-5700/
 (PCLI)


CO: Physicians Clinical Laboratory Inc. ST: California IN: MTC SU: ERN TNM

JP-LS -- LA018 -- 0448 01/10/94 09:30 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 10, 1994
Words:908
Previous Article:FIRST INTERSTATE BANK CREATES STATEWIDE DESIGN/BUILD COMPETITION FOR AFFORDABLE HOUSING PROJECT IN SOUTH CENTRAL LOS ANGELES
Next Article:COMPANIA DE TELEFONOS DE CHILE, TELECOMS INDUSTRY AND GOVERNMENT REACH PACT ON VERTICAL INTEGRATION
Topics:

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