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PREMIER ANESTHESIA NET REVENUE UP 48 PERCENT, NET INCOME JUMPS 130 PERCENT, EPS DOUBLES

 PREMIER ANESTHESIA NET REVENUE UP 48 PERCENT,
 NET INCOME JUMPS 130 PERCENT, EPS DOUBLES
 ATLANTA, July 21 /PRNewswire/ -- Premier Anesthesia, Inc. (NASDAQ: PRAN), the nation's leading provider of contract anesthesia services to hospitals, today announced record net revenues and net income for the three and six month periods ended June 30, 1992. This was Premier's first full quarter as a public company since completing its $28.2 million initial public offering (IPO) in March, 1992.
 Net revenues for the second quarter increased 47.9 percent to a record $14.2 million, up from $9.6 million for the same period in 1991. Net income amounted to $503,000, or 6 cents per share. This represents a 129.7 percent increase over the $219,000 in net income, or 3 cents per share, reported the second quarter of 1991. This increase can be attributed to both income from operations as well as net interest income from investments of Premier's IPO proceeds.
 Second Quarter Perspective
 Richard D. Ballard, president and chief executive officer, commented that these financial results were obtained in spite of the company's failure to begin four new contracts as budgeted for the quarter. "Although disappointed in not achieving the contract starts as projected, we are pleased that our solid core business continues to produce increasingly profitable results. Operating expenses as a percentage of revenue were less in the second quarter of 1992 than in the corresponding quarter of 1991. This was accomplished while strengthening and broadening our organization for future company growth." It was also noted by Ballard that during the quarter a number of non-recurring costs associated with becoming a public entity were absorbed without significant impact on the quarter's results.
 Commenting on Premier's future growth, Ballard went on to say, "During the first two weeks of the third quarter we have started two additional contracts, bringing our total to 30. We have also contracted to start two additional contracts on Aug. 1, 1992, which will bring the total number to thirty-two (32). Additionally, present marketing activities are at an all time high. Ballard explained that one indicator of market interest is the number of initial visits to potential clients made by a company representative during a period and commented, "we have more than tripled the number of initial visits to hospitals during the first half of 1992 compared to the first half of 1991. I believe this continued interest evidenced in the hospital marketplace validates our approach to hospital contract management. Our strategy to help hospitals meet competitive challenges while maintaining quality addresses the needs of both metropolitan and community hospitals."
 In the areas of practice acquisitions and distribution of medical products and supplies, Ballard indicated that Premier has expanded its staff from one to four full-time individuals, which has contributed to the progress in these arenas.
 Six Month Perspective
 For the six month period ending June 30, 1992, net revenues were $26.9 million, a gain of 47.2 percent from the $18.3 million posted for the same period a year earlier. Net income in the first half of the year amounted to $907,000, or 11 cents per share, a 135.6 percent increase in net income over the $385,000, or 6 cents per share, reported for the first half of 1991. This increase is attributable equally to improved operating results and interest earned on the IPO proceeds. The 83.3 percent gain in per share earnings also reflects the change in weighted average shares outstanding during the respective periods - 8,021,822 in the first half of 1992 versus 6,099,215 in 1991.
 Target Markets for Anesthesia Services
 Premier's primary target market for contract anesthesia services and products continues to be the 3,800 hospitals that have at least 100 beds, and large-practice surgical clinics which generally perform 2,000 or more surgical procedures a year. These in turn generate the majority of the nation's annual $10 billion in billings for anesthesia services. Management believes this represents an enormous opportunity to employ capital raised in its IPO.
 The company provides clients with comprehensive anesthesia services 24 hours a day, 365 days a year. Premier manages recruiting in the anesthesia department, handles medical staff relations, performs all billing and record keeping services, provides malpractice coverage and monitors current legal and reimbursement issues for its clients.
 Premier Anesthesia, Inc. is the leading multi-state provider of contract anesthesia services to hospitals in the United States. Founded in 1988, the company has grown from $1.1 million to $40.5 million in annual revenues during that time period and has been profitable since its first full year of operation in 1989.
 PREMIER ANESTHESIA, INC.
 Second Quarter, 1992 Financial Highlights
 (Dollars in thousands, except per share data)
 Three Months Ended
 1992 1991
 Net Revenues $ 14,211 $ 9,633
 Net income applicable
 to common stock 503 198
 Net income per share $ 0.06 $0.03
 Weighted avg. no. of com.
 and common equivalent shares 9,012,214 6,099,463
 Six Months Ended
 1992 1991
 Net revenues $ 26,891 $ 18,265
 Net income applicable
 to common stock 892 364
 Net income per share $ 0.11 $ 0.06
 Weighted average number
 of common and common
 equivalent shares 8,021,822 6,099,215
 /CONTACT: Richard Ballard, president, or Linda S. Hammock, CFO of Premier Anesthesia, 404-458-4842; or Gary Strong or Nick Farina of Financial Relations Board, Chicago, 312-266-7800, for Premier Anesthesia/
 (PRAN) CO: Premier Anesthesia Inc. ST: Georgia IN: MTC SU: ERN


AH -- NY096 -- 1507 07/21/92 16:27 EDT
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